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HomeMy WebLinkAboutTheater Angels' Art League - Building Lease , .. SINGLE TENANT LEASE (Theater Angels' Art League - Temporary Cultural and Performing Arts Center) THIS LEASE, for reference purposes only dated 1)ec . dJ1 ,2009, is entered into by and between THE CITY OF GILROY, a municipal corporation ("Landlord"), and THEATER ANGELS' ART LEAGUE, a California non-profit corporation ("Tenant"). I. PREMISES. 1.1 Subject to the reservation described in Paragraph 1.2 below, Landlord hereby leases to Tenant and Tenant hereby hires from Landlord the building commonly known as the Old Salvation Army Building ("Building"), the land on which the Building is located, and adjacent vacant properties, all located in Gilroy, California and more specifically described as follows: Site Address Assessor's Parcel No. 734 1 Monterey (Building site) 7331 Monterey 730 I Monterey 67 W. 7th 57 W. 7th 7310 Eigleberry 7320 Eigleberry 7330 Eigleberry 7350 Eigleberry 7360 Eigleberry Eigleberry (no street address) 799-08-042 799-08-043 799-08-044 799-08-045 799-08-046 799-08-047 799-08-048 799-08-049 799-08-050 799-08-051 799-08-060 , collectively referred to herein as the "Premises". The land contained within the Premises is more particularly described in the Memorandum of Lease attached hereto as Exhibit A. 2. LEASE TERM. 2.1 Term. The term of this Lease ("Term") shall commence on January 1, 2010 (the "Commencement Date") and expire on December 31, 2012. Notwithstanding the foregoing, either party shall have the right to terminate the Lease prior to its natural expiration by giving the other party not less than ninety (90) days' prior written notice, which notice shall set forth the effective date of termination. This Lease shall also be subject to termination as elsewhere provided in this Lease. "Lease Termination" shall mean the expiration or sooner termination of this Lease. 2.2 Delav in Commencement Date. If Landlord is unable to deliver possession of the Premises on the Commencement Date, Landlord shall not be liable for any damage caused thereby, nor shall this Lease be voidable, provided, however, that if Landlord has not delivered possession of the Premises to Tenant by March 1,2010, Tenant may terminate this Lease by delivering written notice to Landlord prior to delivery of possession by Landlord. The expiration date of this Lease shall not be extended by such delay. If Tenant, with Landlord's consent, takes possession prior to the Commencement Date, Tenant shall do so subject to all of the covenants and conditions hereof. 2.3 Acceptance. Tenant hereby accepts the Premises in its "AS IS" condition without representation or warranty of any kind, express or implied, and subject to all applicable laws. Upon taking possession of the Premises, Tenant shall be deemed to have accepted the Premises as being in good and sanitary order, condition and repair, and to have accepted the Premises in its existing condition, subject to all applicable laws, covenants, conditions, restrictions, easements and other matters of record. Landlord shall have no obligation to construct any improvements on or within the Premises for the benefit of Tenant. Neither Landlord nor Landlord's agents, employees or other representatives makes any representation or warranty as to the suitability of the Premises for the conduct of Tenant's business, the condition \KKS\803637.3 102109-04706083 -1- j of the Premises, or the use or occupancy which may bc made thereof, and Tenant has independently investigated and is satisfied that the Premises are and will be suitable for Tenant's intended use. Tenant shall be solely responsible for installing or arranging for any security devices or services desired by Tenant for the Premises and the safety of persons or property upon the Premises, and Landlord shall have no obligation or liability with respect to the provision or lack of provision of such security devices or services. 3. RENT. 3.1 Rent. Landlord agrees to lease the Premises to Tenant at no cost, except as otherwise expressly set forth in this Lease, in exchange for services to be provided by Tenant, which services are more particularly described in Section 5 below. Such services shall be provided without charge to Landlord. All amounts which Tenant is required to pay under this Lease, and all damages, costs and expenses which Landlord may incur by reason of any default by Tenant under this Lease shall be deemed to be rent hereunder ("Rent"). All Rent shall be paid in lawful money of the United States to Landlord at the address specified in this Lease for purposes of notice, or to such other persons or at such other places as may be designated in writing by Landlord from time to time. All Rent shall be paid without offset or deduction and, except as otherwise expressly provided in this Lease, without prior notice or demand. 4. TAXES. 4.1 Real Property Taxes. Tenant shall pay, before the same become delinquent, all Real Property Taxes imposed against Landlord or Tenant in connection with this Lease or against the Premises. As used in this Lease, Real Property Taxes means any form of assessment, license, fee, rent tax, levy or tax (other than net income, estate, successor or inheritance taxes), now or hereafter imposed by any authority having the direct or indirect power to tax or by any city (including Landlord), county, state or federal government or any improvement or other district or division thereof, whether or not now customary or within the contemplation of the parties, ordinary or extraordinary, general or special, or resulting from increased rate or valuation, together with any taxes levied or assessed in lieu of, in substitution for, or in addition to existing taxes and assessments against the Premises, including without limitation any possessory interest tax. In connection with California Revenue and Taxation Code section 107.6, Landlord states and Tenant acknowledges that by entering into this Lease, a possessory interest subject to property taxes may be created. Tenant or other parties in whom the possessory interest has vested may be subject to the payment of property taxes levied on such interest. 4.2 Tax on Leasehold or Personal Property. Tenant shall be responsible for and shall pay before delinquency all municipal, county or state taxes, levies and fees of evelY kind and nature including, but not limited to, general or special assessments assessed during the Term against any leasehold interest or trade fixtures or personal property of any kind, owned or leased by or placed in, upon or about the Premises by Tenant. Tenant agrees to pay before delinquency the amount of all taxes levied upon or measured by the rent payable hereunder, whether as a so-called sales tax, transaction privilege tax, excise tax, or otherwise. If such taxes, levies or fees are assessed, levied, or imposed upon Landlord or any portion of the Premises, Landlord shall give Tenant a statement of the amount applicable to the Premises. If a separate assessment of the improvements is not available from the appropriate governmental authority, Landlord's good faith allocation shall be binding on Tenant. In such event, Tenant shall pay Landlord on demand for such taxes, levies and fees applicable to the Premises. 5. CONDUCT OF BUSINESS BY TENANT. 5.1 Use of the Premises. Tenant shall use the Premises solely as a community based cultural and performing arts facility for meetings, art displays, small scale live artistic performances, art classes and seminars and the creation of a community garden, in furtherance of the promotion of multicultural art and overall health within the City of Gilroy community, and for no other purpose. Tenant may collaborate with any other public agency to provide such services, provided that Landlord is notified of such collaboration. Any additional programs and/or services shall be subject to approval or disapproval by the City of Gilroy Recreation Manager or hislher designee prior to implementation. Except for janitorial service providers, Landlord and Tenant shall be the sole key holders to the Premises with alarm access to the Premises. Tenant's activities shall be subject to the City of Gilroy's Facility Use Guidelines. In IKKS\803637.3 102109-04706083 -2- ACORD,. CERTIFICATE OF LIABILITY INSURANCE OP IDVB I DATE (MMIODfYYYY) THEAT 1 10/27/10 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Pacific Diversified Insurance ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Gilroy Office HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 9015 Murray Avenue #110 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Gilroy CA 95020 Phone: 408-842-2131 Fax: 408-842-0867 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A: Nonprofit's Insurance Alliance INSURER B Theater Angels' Art League INSURER C 951 Hoesch INSURER 0 Gilroy CA 95020 INSURER E COVERAGES rHE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE MFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONIJITIONS OF SUCH POLlCIES_ AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR DD'L POLICY EFFECTIVE POLICY EXPIRATION lTR NSRD TYPE OF INSURANCE POLICY NUMBER DATE (MMIDDfYY) DATE (MMIDDIYY) LIMITS GENERAL LIABILITY EACH OCCURRENCE I 1000000 r---- DAMAGE TO RENTED A X X COMMERCIAL GENERAL LIABILITY 201006219NPO 10/24/10 10/24/11 PREMISES (Ca occurence) I 500000 W CLAIMS MADE ~ OCCUR MED EXP (Anyone person) I 20000 c---- PERSONAL & ADV INJURY I 1000000 r---- f--- GENERAL AGGREGATE I 2000000 r---- f--- GEN'L AGGREGATE LIMIT APPLIES PER. PRODUCTS - COMP/OP AGG I 2000000 -l POLICY nPRO. nLOC JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT -- I ANY AUTO (Eaaccident) - -~ ALL OWNED AUTOS BODILY INJURY -~ I SCHEDULED AUTOS (Per person) t-- HIRED AUTOS BODILY INJURY t-- I NON-OWNED AUTOS (Per accident) t-- PROPERTY DAMAGE I (Per accident) GARAGE LIABILITY AUTO ONLY - EAACCIDENT I R ANY AUTO OTHER THAN EAACC I AUTO ONLY: AGG I EXCESSIUMBRELLA LIABILITY EACH OCCURRENCE I o OCCUR D CLAIMS MADE r---- AGGREGATE I -- I ~~ DEDUCTIBLE I RETENTION I I J _ WC STATU- I IOTH- WORKERS COMPENSATION AND TORY LIMITS ER EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE EL EACH ACCIDENT I --- ----- OFFICER/MEMBER EXCLUDED? EL DISEASE EA EMPLOYEE I If yes, describe under --- SPECIAL PROVISIONS below EL DISEASE POLICY LIMIT I OTHER DESCRIPTION OF OPERATIONS I LOCATIONS f VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT f SPECIAL PROVISIONS Certificate holder is named as additional insured in regards to the property located at 7341 Monterey Street, Gilroy, CA. CERTIFICATE HOLDER CANCELLATION GILR002 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WilL ENDEAVOR TO MAIL 30 DAYS WRITTEN City of Gilroy 7351 Rosanna Street Gilroy CA 95020 NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHAll IMPOSE NO OBLIGATION OR LIABILITY Of ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. ACORD 25 (2001/08) @ACORD CORPORATION 1988 The certificate holder, the city of Gilroy and its officers, agents, employees, and elected officials are named as additional insured in regards to the property identified in the Lease Agreement dated 12/29/09 for the Temporary Arts and Cultural Center. The attached endorsement fully covers this property as required by the Lease Agreement-Single Tenant Lease between the city of Gilroy Landlord as landlord and Theater Angels Art League Tenant as tenant for Premises commonly known as the Old Salvation Army Building and adjacent vacant properties Lease. POLICY NUMBER: COMMERCIAL GENERAL LIABILITY CG 20 11 01 96 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE 1. Designation of Premises (Part Leased to You): 2. Name of Person or Organization (Additional Insured): Any person or organization acting as a manager or lessor of a covered premises that you are required to name as an additional insured on this policy, under a written contract, lease or agreement currently in effect, or becoming effective during the term of this policy. 3. Additional Premium: Included (If no entry appears above, the information required to complete this endorsement will be shown in the Declara- tions as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part of the prem- ises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the Schedule. CG 20 11 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 1 of 1 o POLICY NUMBER: COMMERCIAL GENERAL LIABILITY CG 20 12 07 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - STATE OR POLITICAL SUBDIVISIONS - PERMITS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE State Or Political Subdivision: Any State or Political Subdivision that issues a permit to the named insured. (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) Section II - Who Is An Insured is amended to include as an insured any state or political subdivi- sion shown in the Schedule, subject to the following provisions: 1. This insurance applies only with respect to opera- tions performed by you or on your behalf for which the state or political subdivision has issued a permit. 2. This insurance does not apply to: a. "Bodily injury," "property damage" or "personal and advertising injury" arising out of opera- tions performed for the state or municipality; or b. "Bodily injury" or "property damage" included within the "products-completed operations hazard" . CG 20 12 07 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 o COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - MORTGAGEE, ASSIGNEE, OR RECEIVER This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: Any person or organization acting as a Mortgagee, Assignee, or Receiver with respect to locations scheduled on the policy. Designation of Premises: (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) 1. WHO IS AN INSURED (Section II) is amended to include as an insured the person(s) or organization(s) shown in the Schedule but only with respect to their liability as mortgagee, assignee, or receiver and arising out of the ownership, maintenance, or use of the premises by you and shown in the Schedule. 2. This insurance does not apply to structural alterations, new construction and demolition operations performed by or for that person or organization. CG 20 18 11 85 Copyright, Insurance Services Office, Inc., 1984 Page 1 of 1 1/98 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - CHARITABLE INSTITUTIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. WHO IS AN INSURED (Section II) is amended to include as an insured: 1. Your members but only with respect to their liability for your activities or activities they perform on your behalf; and 2. Your trustees or members of the board of governors while acting within the scope of their duties as such on your behalf. CG 20 20 11 85 Copyright, Insurance Services Office, Inc., 1984 Page 1 of 1 o no event shaH Tenant permit any art, performance or other activity on the Premises that would be determined under applicable laws to be legally obscene, or that would, if exhibited or occurring with respect to a commercial business or establishment, be subject to regulation under Chapter 2A of the City Gilroy Code (which regulates adult businesses), as such Chapter may be amended from time to time. Tenant's breach of any of its obligations pursuant to the prior sentence shaH, at Landlord's election, constitute a non-curable default under this Lease, which in addition to all other rights and remedies available to Landlord by law, in equity or under this Lease, shall entitle Landlord to terminate this Lease by delivering to Tenant not less than ten (10) days prior written notice. 5.2 Comoliance with Law. Tenant, at its expense, shaH comply promptly with all applicable laws regulating the use by Tenant of the Premises and the conduct of its activities on the Premises, including without limitation aH copyright laws and licensing requirements, and any permits that may be required in connection with outdoor events. Tenant shall not use or permit the use of the Premises in any manner that will tend to create a nuisance. Tenant shall place no loads upon the floors, walls or ceilings in excess of the maximum designed load determined by Landlord or which endanger the structure; nor place any hannful liquids in the drainage systems; nor dump or store waste materials or refuse or allow such to remain outside the Building, except in enclosed trash areas provided, if any. Tenant shall not store or permit to be stored or otherwise place any other material of any nature whatsoever outside the Building. Tenant and Tenant's agents, officers, directors, employees, contractors, representatives, servants, licensees or invitees (collectively "Tenant's Agents") shall not use, store or dispose, or allow the use, storage or disposal of, any Hazardous Materials on any portion of the Premises. As used in this paragraph, Hazardous Materials means any chemical, substance or material which has been or is hereafter determined by any federal, state or local governmental authority to be capable of posing risk of injury to health or safety, including without limitation, petroleum, asbestos, polychlorinated biphenyls, radioactive materials and radon gas. 6. MAINTENANCE, REPAIRS. AND ALTERATIONS. 6.1 Landlord's Responsibility. During the term of this Lease or any extension thereof Landlord shaH not be responsible to maintain or repair any portion of the Premises, and Tenant shall be responsible for any and all damage or injury caused by the negligence or wiHful misconduct of Tenant or Tenant's Agents. Tenant shall pay to Landlord any costs incurred by Landlord to correct damage or injury for which Tenant is responsible pursuant to the prior sentence not later ten (10) days after receiving Landlord's invoice for such costs. 6.2 Tenant's Responsibility. Tenant shaH, during the Term, keep in good order, condition and repair the entire Premises including, without limitation, all fixtures, exterior and interior waHs and exterior and interior surface of waHs, electrical and plumbing systems, heating, ventilating and air conditioning systems, windows, plate glass, landscaping, paving and other exterior areas and improvements located on the Premises from time to time, subject to Paragraph 8.1 below. Tenant's obligations under this Paragraph shall include the obligation to replace any of the foregoing items, or any portion thereof, which cannot be fully repaired. The Premises shall be maintained by Tenant in an attractive, safe, and fuHy operative condition at all times during the Term. In no event shall Landlord have any repair or maintenance responsibility for the Premises, or any portion thereof, except as otherwise expressly provided in this Lease. Tenant waives the provisions of Califomia Civil Code section 1941 and 1942 and any similar law now or hereafter in effect. 6.3 Condition Upon Surrender. On Lease Termination, Tenant shaH remove its personal property and trade fixtures from the Premises, surrender the Premises to Landlord in at least as good a condition as when received by Tenant under this Lease, ordinary wear and tear excepted, subject to Paragraph 8.1 below. At Landlord's option, Landlord shall have the right to require that Tenant remove any and all alterations, additions, signs, artwork or improvements made by Tenant during the Term of this Lease and perform any necessary repairs caused by such removal to the condition that existed prior to the instaHation of such alteration, addition, sign, artwork or improvement and in accordance with all applicable laws in effect as of the date of such repair. 6.4 Imorovements by Tenant. Tenant shall not, without prior written consent of Landlord, make or install any alterations, improvements, or additions (collectively, "Alterations") to the Premises, including without limitation any exterior landscaping or outdoor \KKS\803637.3 102109-04706083 -3- facilities or improvements. Before commencing any Alterations, Tenant shall submit plans and specifications to Landlord for Landlord's approval. At least ten (10) days prior to undertaking construction or instalIation of any Alterations, Tenant shall give writtcn notice to Landlord setting forth the date work is to commcnce. Landlord shall have the right at all reasonable times to post and keep posted on the Premises such notices of nonresponsibility as Landlord may deem necessary for the protection of Landlord and the Premises from mechanic's and materialman's liens. AlI Alterations shall be instalIed at Tenant's sole cost and expense, in compliance with all applicable laws, pennit requirements and any covenants, conditions or restrictions of record, by a licensed contractor, shall be done in a good and workmanlike manner conforming in quality and design with the Premises existing as of the date the Premises were delivered to Tenant under this Lease, and shalI not diminish the value of the Premises. All Alterations made by Tenant shall be and become the property of Landlord upon installation and shall not be deemed Tenant's personal property; provided, however, that Landlord may, at its option, require that Tenant, at Tenant's expense, remove any or all Alterations instalIed by Tenant and repair the Premises to their condition that existed prior to the installation of the Alternations and in accordance with all applicable laws in effect as of the date of such repair. This paragraph shall survive the Lease Tetmination. Notwithstanding any other provision of this Lease, Tenant shalI be solely responsible for the maintenance and repair of any Alterations made by Tenant to the Premises. 7. INSURANCE AND INDEMNITY. 7.1 Tenant's Insurance. Tenant shall at all times during the Term, at Tenant's sole cost and expense, maintain in effect the following insurance: (i) Workmen's compensation insurance in not less than the mlmmum amounts required by law; (ii) Commercial general liability insurance (at least as broad as the most commonly available ISO Commercial General Liability policy form CG 00 01), or such successor comparable form of coverage in the broadest form then available, for the mutual benefit of Landlord and Tenant, against any and alI claims and liabilities arising out of the ownership, use, occupancy or maintenance of the Premises, or Tenant's activities thereon. The minimum limit of coverage of such policy shall be in the amount of not less than One Million Dollars ($1,000,000) per occurrence and annual aggregate, shall include an extended liability endorsement providing contractual liability coverage (which shall include without limitation coverage for Tenant's indemnification, defense and hold harmless obligations in this Lease), and shall contain a severability of interest clause or a cross liability endorsement. Such insurance shall further insure Landlord and Tenant against liability for property damage of at least One Million Dollars ($1,000,000); and (iii) Business automobile liability insurance having a combined single limit of not less than One MiIlion Dollars ($1,000,000) per occurrence and insuring Tenant against liability for claims for bodily injury, death, or property damage, arising out of ownership, maintenance, or use of any owned, hired or non-owned automobiles. 7.2 General Requirements. No policy maintained by Tenant under Paragraph 7.1 shall contain a deductible greater than Two Thousand Five Hundred Dollars ($2,500). No policy shall be cancelable or subject to reduction of coverage without thirty (30) days prior written notice to Landlord (except for nonpayment which shall require not less than ten (10) days notice). Such policies of insurance shall be issued as primary policies and not contributing with or in excess of coverage that Landlord may carry, by an insurance company authorized to do business in California for the issuance of such type of insurance coverage and having an AM Best financial strength rating or A+ or better. All deductibles shall be deemed self-insured with full waiver of subrogation. All Tenant policies shall contain an endorsement that the insurer waives its right to subrogation. The types of insurance and minimum limits specified above are the minimum required by Landlord, and Landlord may from time to time require changes and/or additions thereto to meet changed circumstances or as otherwise reasonably required by Landlord, including without limitation changes in the purchasing power of the dollar and changes consistent with the standards required by other landlords in Santa Clara County, California. Tenant's obligations under this Lease shall not be limited to the amount of any insurance required of or carried by Tenant under Paragraph 7.1 and Tenant is responsible for insuring that the amount of insurance carried by Tenant is sufficient for Tenant's purposes. All insurance required to be calTied by Tenant hereunder shall be in companies, on forms and with IKKS\803637.3 102109-04706083 -4- loss payable clauses satisfactory to Landlord and copies of policies of such insurance, certified by the insurer to be a true and correct copy of the insurance policies, shall be delivered to Landlord by Tcnant prior to the Commencement Date. A new certified policy shall be delivered to Landlord at least thirty (30) days before expiration of the old policy. The liability policies to be carried by Tcnant under this Lease shaIl name Landlord and its agents, employees and designated lenders as additional insureds. All policies shaIl provide coverage on an occurrence basis and not on a claims made basis. 7.3 Waiver of Liability. Landlord and Tenant each hereby waives any and all rights of rccovery against the other or against the employees, representatives and agents of such other party for loss of or damage to such waiving party or its property or the property of others under its control, arising from any cause to the extent insured against under any insurance policy carried by such waiving party and to the extent such waiver is permitted under such insurance policy and does not prejudice coverage under such policy. Tenant shaIl obtain and furnish evidence to Landlord of the waiver by Tenant's insurance carriers of any right of subrogation against Landlord. 7.4 Tenant to Hold Landlord Harmless. Tenant hereby agrees to defend, indemnify and hold harmless Landlord and Landlord's employees, representatives and agents from and against any and all claims, damages, losses, liabilities, judgments or expenses (including without limitation attorneys' fees) due to any cause, including without limitation those relating to bodily injury, property damage or copyright infringement, which arises out of or is in any way attributable to the use or occupancy of the Premises or any part thereof by Tenant or Tenant's Agents, the acts or omissions of Tenant or Tenant's Agents or Tenant's breach of this Lease, except to the extent caused by the willful misconduct or negligence of Landlord. This paragraph and Tenant's obligation hereunder shall survive Lease Termination. 7.5 Landlord's Disclaimer. Landlord shall not be liable for injury or damage which may be sustained by the person, goods, wares, merchandise or property of Tenant, its employees, invitees or customers or any other person in or about the Premises caused by or resulting from fire, steam, electricity, gas, water or rain which may leak or flow from or into any part of the Premises, or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the same, or from any other cause, whether such damage or injury results from conditions arising upon the Premises or from other sources. 8. REPAIRS AND RESTORATION. 8.1 Damage. Landlord shall have no obligation to rebuild, restore or repair all or any portion of the Premises in the event of any damage or destruction thereto from any cause. If at any time during the Term the Premises are damaged to the extent such damage materially interferes with Tenant's continued use of the Premises, and Landlord elects not to rebuild, restore or repair, Tenant's sole right shaIl be to terminate this Lease by giving written notice of termination. Notwithstanding Tenant's election to terminate the Lease pursuant to this Paragraph 8.1, if the damage was caused by Tenant or Tenant's Agents, Tenant shaIl reimburse Landlord for all costs incurred by Landlord in repairing or rebuilding the Premises to the extent such costs exceed any Net Insurance Proceeds received by Landlord from any insurance policy. As used in this Lease, "Net Insurance Proceeds" shall mean the proceeds of insurance received from the insurer, less costs of recovery. This paragraph and Tenant's obligations hereunder shall survive Lease Termination. 8.2 Notice. Rent Abatement. Refixturing. Tenant shaIl notify Landlord in writing immediately upon the occurrence of any damage or destruction to all or any portion of the Premises. There shaIl be no abatement of Rent payable hereunder and Tenant shall have no claim against Landlord for any damage suffered by Tenant by reason of any such damage, destruction, repair or restoration. In no eyent shall any damage, destruction, restoration or repair of any portion of the Premises result in an extension of the expiration date of the Lease. 9. ASSIGNMENT AND SUBLETTING. 9.1 Landlord's Consent Required. Tenant shaIl not, either voluntarily, involuntarily or by operation of law (i) assign, sell or otherwise transfer all or any part of the Tenant's interest in this Lease or in the Premises, or (ii) permit any part of the Premises to be \KKS\803637.3 102109-04706083 -5- sublet, occupied or used by anyone other than Tenant or (iii) pennit any person to succeed to any interest in this Lease or the Premises, (all of the foregoing being collectively referred to as a "Transfer"). In no event shall Landlord be required to consent to any Transfer. Tenant recognizes and acknowledges that Landlord has agreed to enter into this Lease because of Tenant's operation as a non-profit corporation actively dedicated to promoting and fostering programs for the benefit and nurturing of the community's interest in community cultural and arts programs and performances and the benefit that the programs to be conducted at the Premises will bestow upon the citizens and community of the City of Gilroy. Tenant acknowledges and agrees that the prohibition against Transfers is therefore fair and reasonable. If Tenant is a corporation, any dissolution, merger, consolidation or reorganization of Tenant, the transfer, assignment or hypothecation of any stock or interest in such corporation in the aggregate in excess of twenty-five percent (25%), or the sale (cumulatively) of fifty percent (50%) or more of the value of Tenant's assets shall be deemed a Transfer. If Tenant is a partnership, a withdrawal or substitution of any partner(s) owning twenty-five percent (25%) or more of the partnership (cumulatively), any assignment(s) of twenty-five percent (25%) or more (cumulatively) of any interest in the capital or profits of the partnership, the sale (cumulatively) of fifty percent (50%) or more of the value of Tenant's assets, or the dissolution of the partnership shall be deemed a Transfer. If Tenant is a limited liability company, any dissolution, merger, consolidation or reorganization of Tenant, the transfer, assignment or hypothecation of a membership, economic or other interest in the limited liability company in the aggregate in excess of twenty- five percent (25%), or the sale (cumulatively) of fifty percent (50%) or more of the value of the limited liability company's assets shall be deemed a Transfer. In the case of any other entity comprising Tenant, any transfer, assignment or hypothecation of any interest in such entity in the aggregate in excess of twenty- five percent (25%), or the sale (cumulatively) of fifty percent (50%) or more of the value of Tenant's assets shall be deemed a Transfer. In no event shall Tenant hypothecate, mortgage, pledge or encumber Tenant's interest in this Lease or in the Premises or otherwise use the Lease as a security device in any manner, nor shall Tenant transfer any right appurtenant to this Lease or the Premises separate from a permitted Transfer. Tenant expressly agrees that the provisions of this Article are not unreasonable standards or conditions for purposes of Section 1951A(b )(2) of the California Civil Code, as amended from time to time, under the federal Bankruptcy Code, or for any other purpose. 10. EMINENT DOMAIN. 10.1 Automatic Termination. If the entire Premises, or so much of either as to make the Premises not reasonably adequate for the conduct of Tenant's business in Tenant's reasonable judgment shall be taken under the power of eminent domain, this Lease shaH automatically terminate as of the date on which the condemning authority takes possession. 10.2 Rent Abatement. If a portion of the Premises is taken by power of eminent domain which does not result in a termination of this Lease, then this Lease shall continue in full force and effect as to the part of the Premises not so taken. There shall be no abatement of Rent payable hereunder and Tenant shall have no claim against Landlord for any damage suffered by Tenant by reason of any taking of the Premises under the power of eminent domain. 10.3 Condemnation Award. Any award for any taking ofaH or any part of the Premises under the power of eminent domain shall be the property of Landlord, whether such award shaH be made as compensation for diminution in value of the leasehold or for taking of the fee. In no event shall Landlord be obligated to make any repairs or perform any restoration or other work required as a result of a taking. Nothing contained herein, however, shaH be deemed to preclude Tenant from obtaining, or to give Landlord any interest in, any award to Tenant for loss of or damage to Tenant's trade fixtures and removal of personal property and Tenant's movmg expenses. lOA Sale Under Threat of Condemnation. A sale by Landlord to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, shall be deemed a taking under the power of eminent domain for all purposes under this Article. Each party waives the provisions of California Code of Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to terminate this Lease in the event of a taking. \KKS\803637.3 102109-04706083 -6- 11. UTILITY SERVICES. Tenant shall arrange and pay for janitorial services and janitorial supplies to the Premises and shall arrange and pay for water, sewer, gas, electric, telephone, cable, on-line and any other utility services to the Premises, and for any security or alarm system or services that Tenant desires for the Premises. Landlord shall not be liable in damages or otherwise for any failure or interruption of any utility or service being furnished to the Premises, including without limitation any security or alarm system or service, and no such failure or interruption shall affect Tenant's obligations under this Lease. Landlord shall be entitled to cooperate voluntarily and Tenant agrees to cooperate, with the efforts of governmental authorities or utility suppliers in reducing energy or other resource consumption. 12. DEFAULTS, REMEDIES. 12.1 Defaults. The occurrence of anyone or more of the following events shall constitute a default hereunder by Tenant: 12.1.1 The abandonment of the Premises by Tenant. Abandonment is defined to include, but is not limited to, any absence by Tenant from the Premises for ten (I 0) consecutive days or longer. 12.1.2 Lease as and when due. The failure by Tenant to make any payment required by this 12.1.3 The failure by Tenant to timely observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenant, which this Lease characterizes as a non-curable default. 12.1.4 The failure by Tenant to timely observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenant, other than as specified in Paragraphs 12.1.1 or 12.1.2 above, and other than those that this Lease characterizes as a non-curable default. 12.1.5 (a) The making by Tenant of any general assignment for the benefit of creditors; (b) the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days, or (c) the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where seizure is not discharged within thirty (30) days. 12.2 Remedies. Upon a default, Landlord shall have the following remedies, in addition to all other rights and remedies provided by law or otherwise provided in this Lease, to which Landlord may resort cumulatively or in the alternative: 12.2.1 Landlord may continue this Lease in full force and effect, and this Lease shall continue in full force and effect as long as Landlord does not terminate this Lease, and Landlord shall have the right to collect Rent when due. No act by Landlord other than giving written notice to Tenant shall terminate this Lease. Acts of maintenance, efforts to relet the Premises or the appointment of a receiver on Landlord's initiative to protect Landlord's interest under this Lease shall not constitute a termination of Tenant's right to possession. 12.2.2 Landlord may terminate this Lease and Tenant's right to possession of the Premises at any time (i) if such default is in the payment of Rent and it is not cured within three (3) days after written notice from Landlord, or, (ii) with respect to the defaults referred to in Paragraphs 12.1.1, or 12.1.4, if such default is not cured within thirty (30) days after written notice from Landlord; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, if Tenant does not commence to cure the default within the thirty (30) day period or does not diligently and in good faith prosecute the cure to completion within a reasonable time thereafter, or (iii) with respect to a default described in Paragraph 12.1.3, upon delivery to Tenant of not less than ten (IO) days prior written notice of termination, or (iv) with respect to a default specified in Paragraph 12.1.5, if such default is not cured within the respective time specified in that paragraph. The parties agree that any notice given by Landlord to Tenant pursuant to this Paragraph 12.2.2 shall be sufficient notice for purposes of California Code of Civil Procedure Section 1161 and Landlord shall not be required to give any additional notice in order to be entitled to commence an \KKSI803637.3 102109-04706083 -7- unlawful detainer proceeding. On termination, Landlord has the right to remove all of Tenant's personal propcrty, signs and trade fixtures and store same at Tenant's cost and to recover from Tenant as damages: 12.2.2.1 The worth at the time of award of unpaid Rent and other sums due and payable which had been earncd at the time of termination; plus 12.2.2.2 The worth at the time of award of the amount by which the unpaid Rent and other sums due and payable which would have been payable after termination until the time of award exceeds the amount of such Rent loss that Tenant proves could have been reasonably avoided; plus 12.2.2.3 The worth at the timc of award of the amount by which the unpaid Rent and other sums due and payable for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus 12.2.2.4 Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perfonn Tenant's obligations under this Lease, or which, in the ordinary course of things, would be likely to result therefrom; plus 12.2.2.5 Such other amounts in addition to or in lieu of the foregoing as may be permitted from time-to-time by the laws of the State of California. The "worth at the time of award" of the amounts referred to in Paragraphs 12.2.2.1 and 12.2.2.2 is computed by allowing interest at the Stipulated Rate (defined in Paragraph 16). The "worth at the time of award" of the amount referred to in Paragraph 12.2.2.3 is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (I %). 12.2.3 No delay or omission of Landlord to exercise any right or remedy shall be construed as a waiver of any such right or remedy or of any default by Tenant hereunder. 12.3 Default by Landlord. Landlord shall not be deemed to be in default in the performance of any obligation required to be performed by it hereunder unless and until it has failed to perform such obligation within thirty (30) days after written notice by Tenant to Landlord specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for its performance then Landlord shall not be deemed to be in default if it shall commence such performance within such thirty-day period and thereafter diligently prosecute the same to completion. Notwithstanding any other provision of this Lease, in no event shall Landlord be liable to Tenant for consequential damages, or loss of or interference with Tenant's business, including without limitation lost profits. 12.4 Expenses of Prevailing Party. If either party incurs any expense, including reasonable attorneys' fees, in connection with any action or proceeding instituted by either party arising out of this Lease, the party prevailing in such action or proceeding shall be entitled to recover its reasonable expenses including attorneys' fees from the other party. 13. SIGNS. Tenant shall not, without Landlord's prior written consent install or affix to any portion of the Premises any exterior or interior window, door or other signs, lettering, placards or the like (collectively "Signs"). If Landlord consents to the erection of any Signs, such Signs shall comply with any sign criteria imposed by Landlord and all applicable laws. 14. RIGHT OF ENTRY. Landlord and its agents shall have free access to the Premises during all reasonable hours for the purpose of examining the same to ascertain if they are in good repair, making repairs or installations which Landlord may be permitted to make hereunder, performing Landlord's obligations under this Lease, protecting the Premises, posting notices of nonresponsibility, and exhibiting the same to prospective purchasers, lenders or tenants. \KKS\803637.3 102109-04706083 -8- 15. TRANSFER OF LANDLORD'S INTEREST. Upon any transfer or transfers of Landlord's interest in the Premises, the transferor shall be automatically relieved of any and all obligations and liabilities on the part of Landlord accruing from and after the date of such transfer, provided that the transferee is liable for any and all obligations and liabilities on the part of Landlord accruing from and after the date of such transfer. Tenant shall attorn to any transferee of Landlord's interest in the Premises. 16. INTEREST. Any amount due from Tenant to Landlord hereunder which is not paid when due shall bear interest from the due date until paid an annual rate of interest (the "Stipulated Rate") equal to the greater of (i) ten percent (10%); or (ii) five percent (5%) plus the rate established by the Federal Reserve Bank of San Francisco, as of the twenty-five (25th) day of the month immediately preceding the due date, on advances to member banks under Sections 13 and 13(a) of the Federal Reserve Act, as now in effect or hereafter from time to time amended. Payment of such interest shall not excuse or cure any default by Tenant under this Lease. 17. PROHIBITED TRANSACTION. Tenant represents and warrants that neither Tenant nor any of its affiliates have engaged in any dealings or transactions, directly or indirectly, (i) in contravention of any U.S., international or other money laundering regulations or conventions now or hereafter in effect, or any enabling legislation or executive order relating thereto, or (ii) in contravention of Executive Order No. 13244 issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Tenorism) or any regulations promulgated thereunder, as may be amended or supplemented from time to time ("Anti-Terrorism Order"), or (iii) on behalf of terrorists or terrorist organizations, including those persons or entities that are included on any relevant lists maintained by the United Nations, North Atlantic Treaty Organization, Organization of Economic Cooperation and Development, Financial Action Task Force, U.S. Office of Foreign Assets Control, U.S. Securities & Exchange Commission, U.S. Federal Bureau of Investigation, U.S. Central Intelligence Agency, U.S. Internal Revenue Service, or any country or organization, all as may be amended from time to time. Tenant represents and warrants that neither Tenant nor any of its affiliates are a person described in section 1 of the Anti-Terrorism Order and neither Tenant nor any of its affiliates have engaged in any dealings or transactions, or otherwise been associated with any such person. If at any time any of the representations and warranties in this Section becomes false then it shall be considered a non-curable default by Tenant under this Lease. 18. MISCELLANEOUS. 18.1 Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease. 18.2 Captions. The article and paragraph captions contained in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof. 18.3 Entire Agreement and Amendments. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no other agreement or understanding pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. 18.4 Notice. Any notice required or permitted to be given hereunder shall be in writing and may be served personally (which includes without limitation delivery by overnight courier services) or by mail. All notices shall be sent to the following addresses: Landlord: City of Gilroy 7351 Rosanna Street Gilroy, CA 95020-6141 Attn: Landlord Administrator \KKS\803637.3 102109-04706083 -9- Tenant: If mailed: Theater Angels' Art League P.O. Box 2533 Gilroy, CA 95021-2533 If personally delivered: 7691 Eigleberry Street #C Gilroy, CA 95020 Any notice so given by mail shall be deemed effectively given three (3) days after being deposited in the United States mail, registered or certified, postage prepaid and addressed as specified herein. Either party may by written notice to the other specify a different address for notice purposes. Notwithstanding the foregoing, any legal notices required to be sent by one party to the other (including without limitation, a notice pursuant to California Code of Civil Procedure Section 1161) shall be delivered in the manner required or allowed by law. 18.5 Holdover. This Lease shall tenninate without further notice at the expiration of the TelID. Any holding over after Lease Termination with the consent of Landlord shall be construed to be a tenancy from month to month, but othelwise on the same terms and conditions set forth in this Lease. If Tenant remains in possession of the Premises after Lease Termination without Landlord's consent or fails to surrender the Premises in the condition required by Paragraph 6.3, Tenant shall indemnify, defend and hold Landlord and Landlord's employees, representatives and agents harmless from and against any claims, losses, damages, judgments, expenses or liabilities (including without limitation attorneys' fees) resulting from Tenant's failure to surrender the Premises in the required condition, including without limitation, any claims made by any succeeding tenant based upon delay in the availability of the Premises, which obligations shall survive Lease Termination. 18.6 Brokers. Tenant warrants and represents that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease. Tenant agrees to defend, indemnify and hold Landlord and Landlord's employees, representatives and agents harmless from and against any and all claims, losses, damages, liabilities, judgments or expenses (including without limitation attorney's fees) arising out of or in connection with claims made by any broker or individual for commissions or fees resulting from Tenant's execution of this Lease, which obligations shall survive Lease Termination. 18.7 Acceptance. Delivery of this Lease, duly executed by Tenant, constitutes an offer to lease the Premises, and under no circumstances shall such delivery be deemed to create an option or reservation to lease the Premises for the benefit of Tenant. This lease shall only become effective and binding upon full execution hereof by Landlord and delivery of a signed copy to Tenant. 18.8 Waiver. The waiver by Landlord of any breach of any term, condition or covenant of this Lease shall not be deemed to be a waiver of such provision or any subsequent breach of the same or any other term, condition or covenant of this Lease. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach at the time of acceptance of such payment. No covenant, term or condition of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing signed by Landlord. 18.9 Separability. If one or more of the provisions contained herein, except for the payment of Rent, is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Lease, but this Lease shall be construed as if such invalid, illegal or unenforceable provision had not been contained herein. 18.10 Liens. Tenant shall pay for all labor and services performed for, and all materials used by or furnished to Tenant or Tenant's Agents and keep the Premises free from any liens arising out of work performed, materials furnished, or obligations incurred by Tenant or Tenant's Agents with respect to the Premises. Tenant shall indemnify, hold hannless and defend Landlord and Landlord's employees, representatives and agents from and against any liens, demands, claims, judgments, losses, liabilities, damages, expenses or encumbrances (including all attorneys' fees) arising out of any work or services performed for or materials used by or \KKS\803637.3 102109-04706083 -10- furnished to Tenant or Tenant's Agents with respcct to the Premises. Tenant shall do all things necessary to prevent the filing of any mechanic's or other licns against the Premises or any part thereof by reason of work, labor, services or materials supplied or claimed to have been supplied to Tenant, or anyone holding the Premises, or any part thereof, through or under Tenant. If any such lien shall at any time be filed against the Premises, Tenant shall either cause the same to be dischargcd of record within ten (10) days after the date of filing of the same, or, if Tenant in Tenant's discretion and in good faith determines that such lien should be contested, Tenant shall furnish such security as may be necessary or required to (a) prevent any foreclosure proceedings against the Premises during the pendency of such contest, and (b) cause a mutually satisfactOlY title company to remove such lien as a matter affecting title to the Premises. 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 of Landlord resulting from Tenant's said default, 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 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 of this Paragraph 18.10 including Landlord's costs, expenses and reasonable attorneys' fees incurred by Landlord in connection therewith, with interest thereon at the Stipulated Rate. Nothing contained herein shall imply any consent or agreement on the part of Landlord to subject Landlord's estate to liability under any mechanics' or the lien law. Tenant shall give Landlord adequate opportunity and Landlord shall have the right to post such notices of non-responsibility as are provided for in the mechanics' lien laws of California. Tenant's obligations pursuant to this paragraph shall survive Lease Termination. 18.11 Encumbrances. This Lease is subject and subordinate to ground and underlying leases, mortgages, deeds of trust and other monetary liens (collectively "Encumbrances") which may now affect the Premises, to any covenants, conditions or restrictions of record, and to all renewals, modifications, consolidations, replacements and extensions thereof; provided, however, if the holder or holders of any such Encumbrance ("Holder") shall require that this Lease be prior and superior thereto, within seven (7) days after written request of Landlord to Tenant, Tenant shall execute, have acknowledged and deliver any and all documents or instruments, in the form presented to Tenant, which Landlord or Holder deems necessary or desirable for such purposes. Landlord shall have the right to cause this Lease to be and become and remain subject and subordinate to any and all Encumbrances which are now or may hereafter be executed covering the Premises or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or to be made thereunder and without regard to the time or character of such advances, together with interest thereon and subject to all the terms and provisions thereof. Within ten (10) days after Landlord's written request, Tenant shall execute any and all documents required by Landlord or the Holder to make this Lease subordinate to any lien of the Encumbrance. If Tenant fails to do so, then in addition to such failure constituting a dcfault by Tenant, it shall be deemed that this Lease is so subordinated to such Encumbrance. Tenant hereby attorns and agrees to attorn to any entity purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant to the exercise of any other rights, powers or remedies under such Encumbrance so long as the Lease remains in effect. 18.12 Recording. Upon execution of this Lease by Tenant, Tenant shall execute in recordable form and deliver to Landlord a Memorandum of Lease in the form of Exhibit "A" attached hereto. Following Lease Termination, Tenant shall, promptly following demand from Landlord, execute a Quitclaim Deed in favor of Landlord quitclaiming all of Tenant's right, title and interest under this Lease; provided, however, that Tenant's failure to delivery such Quitclaim Deed when requested shall not delay or prevent or otherwise affect the expiration or termination of this Lease. Tenant's obligations pursuant to this paragraph shall survive Lease Termination. 18.13 Landlord's Right to Perform Tenant's Covenants. If Tenant fails to make any payment or perform any other act on its part to be made or performed under this Lease, Landlord may, but shall not be obligated to and without waiving or releasing Tenant from any obligation of Tenant under this Lease, make such payment or perform such other act to the extent Landlord may deem desirable, and in connection therewith, pay expenses and employ counsel. All sums so paid by Landlord and all penalties, interest and costs in connection therewith shall be due and payable by Tenant immediately on demand, together with interest at the Stipulated Rate from date of payment by Landlord to thc date of payment by Tenant to Landlord, plus collection costs and attorneys' fees. \KKS\803637.3 102109-04706083 -11- 18.14 Tenant's Remedy. If, because of a default by Landlord under this Lease, Tenant recovers a money judgment against Landlord, such judgment shall be satisfied only out of the proceeds of sale received upon execution of such judgment and levied thereon against the right, title and interest of Landlord in the Premises and out of rent or other income from the Premises receivable by Landlord, and neither Landlord, nor its employees, representatives or agents, shalI be personally liable for any deficiency. Neither Landlord's employees, agents, nor representatives, nor any other person or entity other than Landlord, nor any of their respective assets, shall be liable for Landlord's breach of this Lease. 18.15 Exhibits. AII exhibits, amendments, riders and addenda attached hereto are hereby incorporated herein and made a part hereof. 18.16 Conditions. All agreements of Tenant contained in this Lease, whether expressed as conditions or covenants, shaIl be construed to be both conditions and covenants, conferring upon Landlord, in the event of a breach thereof, the right to terminate this Lease. 18.17 No Pminership or Joint Venture. Nothing in this Lease shall be construed as creating a partnership or joint venture between Landlord, Tenant, or any other party, or cause Landlord to be responsible for the debts or obligations of Tenant or any other party. 18.18 Construction. This Lease shall not be construed either for or against Tenant or Landlord, but shall be construed in accordance with the general tenor of the language. This Lease shall be construed in accordance with the laws ofthe State of California. 18. I 9 Joint and Several Liability. If Tenant consists of more than one (I) person or entity, the obligations of each Tenant under this Lease shall be joint and several. 18.20 Binding Effect. Subject to the provisions of Paragraph 15 and Article 9, all of the provisions hereof shall bind and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. THIS LEASE is effective as of the date the last signatory necessary to execute the Lease shall have executed this Lease. TENANT: Dated: l~iJ(J. D THEATER ANGELS' ART LEAGUE, a California nonprofit corporation ~.u ~lSYt.ftA }!YR:I'1.b 7+t$/~ 1- 'Ptt:S IJ)e.tJ"r Its: By: LANDLORD: D,t,d -i- [ 10 1N,V'I\G s ~Jl I1Ad AP~~ AS TO FqRM,/ ~ tt~c;~~ City ttorney l U(\~Cctll D Y\ \KKS\803637.3 102109-04706083 -12- .. 't RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Gilroy 7351 Rosanna Street Gilroy, California 95020 Attn: City Clerk RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTIONS 6103 AND 27383. Assessor's Parcel Number (APN) 799-08-042; 799-08-043; 799-08-044; 799-08-045; 799-08-046; 799-08-047; 799-08-048; 799-08-049; 799-08-050; 799-08-051; and 799-08-060 SPACE ABOVE THIS LINE FOR RECORDER'S USE MEMORANDUM OF LEASE THIS MEMORANDUM OF LEASE ("Memorandum") is entered into as of lk.. a..q ,2009, by and between the CITY OF GILROY, a municipal corporation ("Landlord") and THEATER ANGELS' ART LEAGUE, a California nonprofit corporation ("Tenant"), with respect that certain Lease dated of even date herewith by and between Landlord and Tenant. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the building commonly known as the Old Salvation Army Building ("Building"), the land on which the Building is located, and adjacent yacant properties all located in Gilroy, California, commonly known by the following Site Addresses: Site Address 7341 Monterey (Building site) 7331 Monterey 7301 Monterey 67 W. 7th 57 W. 7th 7310 Eigleberry 7320 Eigleberry 7330 Eigleberry 7350 Eigleberry 7360 Eigleberry Eigleberry (no street address assigned) , collectively refcrred to herein as the "Premises.", all of which are more particularly described on Exhibit A attached hereto and made a part hereof, upon the terms and conditions of the Lease. The term of the Lease shall commence on January 1, 20 I 0 and expire on December 31, 2012, subject to earlier termination as described in the Lease. This Memorandum shall incorporate all of the provisions of the Lease as though fully set forth herein. This Memorandum is entered by the parties for purposes of recordation and shall not be deemed to modify, amend, alter, limit or otherwise change any of the provisions of the Lease. In the event of any conflict or ambiguity between the terms of this Memorandum and the terms of the Lease, the terms of the Lease shall prevail. \KKS\803637.3 102109-04706083 -1- IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Memorandum as of the date first set forth above. Att",~, A By: Qf1Y(OC ~ . Clerk I S~avJf\V\, ~..a13 CITY OF GILROY, orporation By:i'hoVY\CiS Its: CAT~ ~ ~{(r~ ~~d Approved as to form: By: By: ~~4, ~ Its: Ity Attorney (Ul'\ck. Ca.1I 0(\ THEATER ANGELS' ART LEAGUE, a Califomia nonprofit corporation By: ~ ~tO ?K~ ~ YL.V lAM YII.V IJ LJ) f'R E$ ( bE NT Its: \KKS\SOJ637.3 102109-04706083 -2- STATE OF CALIFORNIA } SS. COUNTY OF San-t", ClClr~ On 1>t.c.i<I'\W 2'1, w.'1, before tne, So..l\,lr" t. Nd.\!t'\ , Notary Public, personally appeared Sylt I C. ~'1r"olo ,who proved to me on the basis of satisfactory evidence to be the person(j) whose name(ll) is/~ subscribed to the within instrument and acknowledged to me that ~/she/t~ executed the same in ~lher/t\le11 authorized capacity(~), and that by ~/her/t\;ld'r signature(ll') on the instrument the person~), or the entity upon behalf of which the person(lf) acted, executed the instnllnenl. I certify under penalty of perjury under the laws of the State of Califomia that the foregoing paragraph is true and correct. 0 o WITNESS my hand and official seal. 0 o o Signature ~ f'. '~ ...- ..~;. ':.:V~ - - -, I~.. c. om mlUlon # 170'196 I. NotCIfY ,utile . CaAfornlO I J Sonta Clara cO~ft i Ill' ~ ~ ~ ~~~~ iI'" STATE OF CALIFORNIA } SS. COUNTY OF 5t1(\~ Clc.rlt On ~\l(l.~ ",WIt>, before me, s..~Jt, f.. Nttv;(. , Notary Public, persona y appeared "Tho"'4C5 :.T. &~ "ntl who proved to me on the basis of satisfactory evidence to be the person(~ whose name(1) is/jl!'e subscribed to the within instrument and acknowledged to me that he/~/tbeY executed the same in hisl\:let/i\le1r authorized capacityVeS), and that by his~/t];ldr signature(.t) on the instrument the personf!;), or the entity upon behalf of which the person~) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of Califomia that the foregoing paragraph is hue and correct. 0 o o o o WITNESS my hand and official seal. Signature ~ ~.~ SANDRA e. NAVA Q commllllon # 1704196 ~.; Nota", PubliC. California I i Santa Clara County j 1 ~conm~~l~.!,lj .....t................-- ............... \KI\S\803637.3 102109-04706083 -3- CAPACITY CLAIMED BY SIGNER Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the document. o INDIVIDUAL o CORPORATE OFFICERS(S) Titk(s) PARTNER(S) 0 LIMITED o GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIANlCONSERV A TOR OTHER: SIGNER IS REPRESENTING: Name ofPerson(s) or Entity(ies) CAPACITY CLAIMED BY SIGNER Though statute does not require the Notary to fill in the data 'below, doing so may prove invaluable to persons relying on the document. o INDIVIDUAL o CORPORATE OFF1CERS(S) Title(s) PARTNER(S) 0 LIMITED o GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERV A TOR OTHER: SIGNER IS REPRESENTING: Name ofPerson(s) or Entity(ies) EXHIBIT "A" TO MEMORANDUM (Legal descriptions to be attached) \KKS\e03637.3 ! 02109-i]470603:l -4- ( ~H6rr "1'\" 1 _ Tn ~~M- _ PCl;ge 1 Escrow No. 12a771 -JW LEGAL DESCRIPTION EXHIBIT All that certain Real Property in the City of Gilroy, County of Santa Clara, State of California, described as follows: PARCEL ONE: Beginning at a point on the Westerly line of Monterey Street distant thereon 133.40 feet Northerly from the point of intersection of the Northerly line of Seventh Street with the Westerly line of Monterey Street; thence Northerly along said Westerly line of Monterey Street, 59.70 feet; thence Westerly 150.80 feet; thence Southerly 59.90 feet; thence Easterly 150.50 feet to the Point of Beginning, and being Lot 8, Block 1, South Range 1 West, as shown on Map No. 5 accompanying final report of referees in action of Henry Miller, et aI, vs. Massey Thomas, et als, in the Superior Court of the State of California, in and for the County of Santa Clara. Excepting therefrom so much thereof as lies within that certain alley conveyed by Thomas Rea Company, a Corporation, et als, to City of Gilroy, A Municipal Corporation, by deed recorded August 2, 1912 in Book 388 of Deeds, page 381, Santa Clara County Records. PARCEL TWO: Lot 9, Block 1, South, Range I West, as shown upon Map No. 5 accompanying the report of the referees in the case of Henry Miller, et aI, vs. Massey Thomas, et aI, filed for record in the office of the County Clerk of the County of Santa Clara, State of California, and being more particularly described as: Beginning at a point on the Westerly line of Monterey Street, distant thereon 108.40 feet Northerly from its intersection with the Northerly line of Seventh Street; thence Northerly along said Westerly line of Monterey Street 25 feet; thence Westerly along the Northerly line of said Lot 9, 150.50 feet; thence Southerly along the Westerly line of said Lot 9, 24 feet; thence Easterly along the Southerly line of said Lot 9 150.28 feet to the Point of Beginning. Excepting therefrom so much thereof as lies within the bounds of that certain alley, as said alley was conveyed by J. Clavera, et aI, to the City of Gilroy, A Municipal Corporation, by deed recorded August 2, 1912 in Book 388 of Deeds, page 381, Records of Santa Clara County. klARCEL THREE: Lot 10, Block 1, South Range I West, as shown on Map No. 5 accompanying final report of referees in action of Henry Miller, et aI, VS. MasseyThomas, et aI, in the Superior Court of the State of California, in and for the County of Santa Clara. Excepting therefrom so much thereof as lies within that certain alley conveyed by Thomas Rea Company, a Corporation, et aI, to City of Gilroy, A Municipal Corporation, by Deed recorded August 2, 1912 in Book 388 of Deeds, page 381, Santa Clara County Records. PARCEL FOUR: Beginning at a point on the Westerly line of Monterey Street, distant thereon fifty-three and 90/100 feet Northerly from the point of intersection of the Westerly line of Monterey Street with the Northerly line of Seventh Street; thence running DEEDLEGL-08/09/94bk Page 2 Escrow No. 128771 -JW LEGAL DESCRIPTION EXHIBIT Northerly and along, the Westerly line of Monterey Street, twenty-nine and 80/100 (29.80) feet to the point of intersection thereof with the dividing line between Lots 10 and 11 in Block 1 of South Range 1 West of the City of Gilroy, as shown upon the Map hereinafter referred to; thence running Westerly and along the dividing line between said Lots 10 and II, one hundred forty-one and 50/100 (141.50) feet to a point on the Easterly line of an alley twelve and 50/100 (12.50) feet wide; thence running Southerly and along the Easterly line of said alley, and parallel with the Westerly line of Monterey Street, twenty-nine and 80/100 (29.80) feet to a point on the Southerly line of said Lot 11; thence running Easterly and along the Southerly line of said Lot 11, one hundred forty-one and 50/100 (141.50) feet to the Point of Beginning, and being a portion of Lot 11 in Block 1 South Range 1 West of the City of Gilroy, as shown upon Map No. 5 accompanying the report of the commissioners in the partition suit of Henry Miller, et aI, vs. Massey Thomas, et aI, in the Superior Court of the State of California, in and for the County of Santa Clara. PARCEL FIVE: Beginning at a point on the Northerly line of Seventh Street, distant thereon one hundred nineteen and 10/100 (119.10) feet Westerly from the point of intersection of the Northerly line of Seventh Street, with the Westerly line of Monterey Street; thence running Westerly and along the Northerly line of Seventh Street, twenty-two and 40/100 (22.40) feet to the point of intersection of the Northerly line of Seventh Street with the Easterly line of an alley twelve and 50/100 (12.50) feetwide; thence running Northerly and along the Easterly line of said alley and parallel with the Westerly line of Monterey Street, fifty-three and 50/100 (53.50) feet to a point on the Southerly line of Lot 11 in Block 1 South Range 1 West of the City of Gilroy, as shown upon the Map thereof hereinafter referred to; thence running Easterly and along the Southerly line of said Lot II, twenty-two and 40/100 (22.40) feet to the Northwesterly corner of Lot 12 in said Block 1 South Range 1 West; thence running Southerly and along the Westerly line of said Lot 12, fifty-three and 50/100 (53.50) feet to the Point of Beginning, and being a portion of Lot 13 in Block 1 South Range 1 West of the City of Gilroy, according the Map No. 5 accompanying the report of the commissioners in the partition suit of Henry Miller, et aI, vs. Massey Thomas, et aI, in the Superior Court of the State of California, in and for the County of Santa Clara. DEEDLEGl-08j09j94bk , . l:::t.e n:~ '\/v-oFX?r-l'..,lj RECORDING REQUESTED BY "ANDREW L. FABER, SBN 61072 LINDA A. CALLON, SBN 99450 LAURA PALAZZOLO, SBN 210954 DOCUMENT: 19675633 Pages: 12 WHEN RECORDED MAIL TO NAME ANDREW L. FABER, SBN 61072 LINDA A. CALLON, SBN 99450 MAILING BERLINER COHEN ADDRESS TEN ALMADEN BLVD., STE. 1100 CITY, STATE SAN JOSE, CA ZIP CODE 95113 - 2233 111111111111111111111111 Fees. Taxes. Cop i es. . AMT PAID 40.00 40.00 REGINA ALCOMENDRAS SANTA CLARA COUNTY RECORDER Recorded at the request of Recording Service ROE fl 007 12/06/2007 2:52 PM SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE TIT L E(S) FINAL ORDER OF CONDEMNATION Legal SolutlQTIs' lS-201 L0,P1us 27 28 \lPALA\737585.1 091207-04706080 IT IS HEREBY ORDERED: 2 Fee simple title to the property consisting of all right, title, and interest in and appurtenant 3 to the following: 7310, 7320, 7330, 7350, and 7360 Eigleberry Street and 7353 and 7355 Monterey Street, Gilroy, California; Assessor Parcel Nos. 799-08-047, 799-08-048, 799-08-049, 4 5 799-08-050, 799-08-051, 799-08-060, 799-08-039, and 799-08-040; as more particularly 6 described in the legal descriptions at Exhibit "1" attached hereto (the "Property"), which 7 8 9 10 descriptions are incorporated herein and by reference made a part hereof, is hereby condemned to and taken for a lawful public purpose. Upon recordation of a certified copy of this Final Order with the Santa Clara County Recorder, fee simple title to the Property shall vest in the CITY, its successors and assigns. 11 IT IS HEREBY FURTHER ORDERED that real propeliy taxes and assessments are 12 13 14 cancelled as of November 1, 2006, the date upon which the CITY was entitled to take possession of the Property pursuant to the Order of Immediate Possession. DATED: OCTOBER::JfL,2007 15 16 17 18 By: IUD E OF THE SUPERIOR COURT KEVIN J. MURPHY 19 20 21 22 23 24 25 THE FOREGOING INSTRUMENT IS A CORRECT COpy OF THE ORIGINAL ON FILE IN THIS OFFiCE ATTEST: KIRI TORRE 26 DEe - 6 2007 \lv', 'i./:;4 tJ C11".itJ.f'.1 FINAL ORDER OF CONDEMNATION DESCRIPTION SITE: 1.155 Monterey Strc~t RSCROW; 94352& API'(; 799-D8-039 EX1-llIHT P ACKEr "A') Jl.lJ. tllilt certain F/:,.ril p,tJ9f!rty in the: City of r,jlYClY, 'COunLY ot Si;UJ.\"Ci C1Cuc1, Stat~ Qr C.;tl.U::CJJ..n.id, dO:5=ib<:;d t..11 follow15; pl)-rrinn at rIOt 6. in Blqcl;. 1 60UWl Rct..4yc')..lf~~~; \.';:.C5~0''''4 upon Wt-p No. :; accomp~yiug report of ~ coffiroiGGioncr~'in H~ Miller ct ~, P~~tiff~, VB. l..ilu:~ey Tbor~ et al, lI~tpnd=t.fl, in thp- lill9l'.rinr Court o! the St<;j.\..t: (If e:alifo;r;uia, ,ill cilia tor the Coun!;)' of S1ilita Cl<>.ra, eM/: l1\lmbe.r 5536, .:md morB partic:u1a.rly dQl:.=1.bed a.s tallows; Beginning at. a. point ;i.n the Wert lin~ o:f Monterey gtrMt, C1.\,::t:ilrp:195.90 teet :-:mlt.1l.F!rly :fram the souLh~:;\.. (;v!..w1;'..J. vi: Mu/.J\..tJLe.y till.) .s4Lh st];=l:;~, rwu:d.ng t.hence NortherlY Illong oaid Weoterly line of Monterey street, :! C). 0 g ,t.,,~t;: t:hlm(,~ at. rl.'Jht: ~al~g Wp.!":r:.e.r1.y 1.51 feet and part. or 6ale! 1iue ruIJJl.ip~ Uu:bvgh. the cent=- vC l!C4:t.1tion wall nCN on said ~acrib<;d premill~p i thtmCC BDutherl.y ~d p<lXdlliU With th~ W~~t l~e of MDnrRrey ~~r~p-~, ~u.uu ~ee~1 ~ence Ea5t~~~y 1S1 f~t'~Q the point Q( B~~Luning. I-:Xl":<".pr:ing .rram the ab()v(j 0~;s(;.L.llJetl i11.'l)~e.:tLY, .the westerly 1.0 feet. t.herc.Qf, s...t:, i;;oI:rvqed to the citj" of C.ilroy, 7\ Hunioipa;l Co:tpOrat.ion, by p",e(j, rt:'"nro.ed' AUgust. 'l, ],"117, invo1.ume 388 of Deecls, /!.t. ?ag~ ~e1. .- 0' ((\;i rev \~ . '.": ".. .. ~I. Ii DESCRIPTION SITE: 7353 Monterey Street ESCll,,()W: 943526 A..PN: 7YlJ-08-040 JTXHIBIT PACKET "A" All LML cl:.l--tnin I1.c.:\l P':ro~ lD th~ ~1Py nf Gi?-RJY; CQunty oE -"ant;;< Da.rfl, f)t~tt;; 'of c~lifarni" I rlescl.-ipeo a.;s f0110w,9' ,. C~cnciD~ dt.a point oil LUe_Ne5tcrly line of Monterey ~tre~t, ~istauL 2~5.50 l"ee.t. Amltlt=~y from the point of i:P't:er",~tion .C1f Aaic1 we8t~:(ly line of Mont",ig' Stre()t witn- I.b",' Sout1J.exly.line ot sixth Dtrcet: 1 thenc~ /.lIDlliJ:Jg iOtl.~herl.y ~~Uug t.heo 1'1c;st=ly lj.iJ.~.,qf. t-l<.:.'nt~ gtr~l?r. 7.l feet; th=ce at right ;;mglci,.s 1'l~tc.l;ly 1.4.). l'~et_ I.r. th2 xasterly li.w:l u( 'ah nlleyi theucd NO:rt)JP.Tly d..1ong Lh~ Erl':'t=::ly line of 'en.id. AlleY ~n tB<1ti w:>d- theDr:~ EaBt~ly; :141 t~ct;. .more or-lells, _to' th~ peint of beg-inninQ', apcl' beioy- a"port..iop- o!:. Lot 6 in, :Slack 1. SoutJ1 H.M!;!~ 1 lkst ii1.'~~4 City otGiir.,yi' a'e, 'I:ud Lnt: lSit> _' de:siguated on M::l:-P No.<S t'il~ct '..;.ith.;l'li<1 ;DrmiJJg _a 9tU:L of the. repDrt oi:i:M - reEa:ro.o..& in t_hf'> ACt.ioll i.u ptiJ:tit'ion of Ile'tUJ Hil1~ et ;W.., ,"\rE;. M.'Uitsey .ThomaC'r eLaJ., ~6 -J'<o. S5il'., ill tb~ 8lJl'I"-Tlor l:oiL...-t- or tbe'SLat:e of Cnl~tD=i"" in - 8.lid. for thE:' county of ,sauta c1 =. . ~ ~ ,.---""" "1 /7 (.--'\ (r---\ \ ~.';, \,f/ " ,'. .' '!,~ i ~--::! '!'11 ~. DESCRIPTION SITE: 7~lO Eiglcbcrry StrcM ESC-ROW; 943526 A.PN: 799-08-047 EXHIBIT PACKET liB" lI..ll th:l~ cerc:;1,jn Rp.al'Pl.uve.l.ty in tbe city of Gilroy, Collilt}' ot ~lllt:d. cl~rll., 5l~Lt uf C~ifOt,uQr deDO~ibGd d~ tollov,: ~ '. ' ALL OF LOT 19, in I:lWCK I, S(111th 'R;mgl'> ) l1e5t. eiL)' of Gil.roy (Ul,d morEl F~icul?Tly d~bL~ibed ~~ followo; :>IEG;lliJ:U~ ~r r-nt>. Norwei13tco=r :of Ei51clberry Ctrcct =d flavi/.Pth sn:eE't. "nrl J.wm:J..pg th~:oce along tilS ~:..ct lin~ -<;>f HigeTherry S1:TP.P.t: N'orLlte::C ly 1.09 f eot i th~nc. ~~HL~r)y J01..04 [t~t, ~h~ce Southerly ~c.)O feet .thenc~ We~terly 7, [eel tb~ce Southerly G~.70 tQ4t to th~ vorth lin~ or Sevp-uth st~ect arid theDc~ ~on~ 1~~~ mentioDtU lL.e He6t~ly 77.24 feet to the poine ot b ~ .i.D..uing . " /.'-~ /,..:::::~. 1 n~;v\v:;' ! ~ ( ) '. : ~-:~..i ~ / . DESr:RIPTION SITE; 733Q Eij,:leberry Street RSCROW: Y435J6 APt-;: 7~9-08-049 EXIUBIT PACKET OlJ" All l:hat cereil.in Real 1'rope:t'ty in th.. Cit.y at (;11roy, County of S:::nta {:lRra, Sr.~L~ of Cnliforui~, d~~crib~rt ~R [ulluwp' All of Lot 1.6, ip. 81nrk 1 svuth. p.ElJ1.gc 1 ~8~t; ':,l.j;',.SN,";' on Map No. 5 a.c~omp=ying' x-e~rt or: the C0rwU.:53ionera in ~enry 1<1111= eL 2.1, Pll.\intiff~ Vg. f"rlbbey Thulua.:i et ~l, Dcfen~ts, in tnp. supe~ior CO\l~ of the ~t~~~ of California, in and tor t.he CO\lIlty (Jf Sa.JJLi1 Cle.l:'s, Coce NuIlIber 5531';, arul 'UIU,.:C pIl.rticulRr1y ofO~fC.ribed ~b t'ollow3: . .. - \- . g",ginnin<J <it a point on tb" .l<ctste'!:ly li..u.ti.'of EtgelbcrtJ' Str..et:, rli>;LdDt the:r:con 158.90 f~ct Nortb~r.ly [L~" the iPccroection o~ ~aid ltn~ u( Bigelbe~ gtr~~' ~ith ~h~.No~LLe~ly line ot seventh RLre~L; thence No~ly ~long said lLu~ of Eiql~ Sl::;re<>t n. 00 [t;",t to th~ dividing l.ipe b~t\lTp.e.n Lotes 15 =d u; 'in BlnC'..k 1 S~l~n, Rang~ ~ Weot, ~~ shown upon ~he Mtl~ Le~ciDAbovc ~~forr~d ..0; theu~t; Ei16t'~;L-ly e\lOl:l9 ~tid ~1viul..u9 Une l-&O.!lO teet to the (Hvld.i.l.1g line bctw"Ul Lot" ./ 'omd 16 jn said Block eLrUl.Ran9~: tben('...., !';rm~htLlytUonq the dividing line Dt;Lweeu Lot.~ 7" a. and 16 :l!1 ~;::;1r1 Biuc};. and R=qe, 7B ,DO 1:&.Q1; 'LO th" dividing line bllt:ve~n Lotc 1~ ~ 17 in s~id Plock and p~e: th~nce Ht~leLly ~loug l~~t TP~~ed tv dividij.l'" line J.49_10 f",ec 1':0 t:he po,ipt of be.ginn.ing. .' \- ~ '. ~ l " " ~ llESCRlPTION SITE! 7360 Eig\~ben'Y Street ESCROW: 9d1:),26 APN: 799-08-0:;1 & 199-0!)-O60 EXHIBIT PACKET "B'I All l:bdt ce-T!:il.in Ret11' P~'op=ty In t.hccity of Gilroy, COUl:Jty of Sant;! CIOlLa, State of C~lLfOrhi~1 doscr~qd ~~ follo~., P'U1.CRL Ol-TR: I.',' DcgiruUllg at ~ point in th", V:~~l'prly linf'. nf t-:191'lhp.'1ry street, willeD poipt irl th~ Gommon COIU~r of Loto Ii ~d 15 in Dleck 1 Gouth, R~g~ 1 WOQt ot the City of 8Llro)'" I. (l.S thc Dams i g PAowri on Nap No _ 5 a.Ild its amendmE'T1th~ accoITll-'iUlyiIlY Ule rl<po'J:t 01: thl!' rp.te.t"eeE in the paL-titioIl suit of H~y Mille,: ot tll va. l"Cl1lD~y TllOt1\<iS et al, in the Superior CO\JXt oft.bo Counc--.f of S~t~ Clar<l, .<;tatl! of - c:0.iforniOl. ;o.pd: runnjT1gt:hAn~~ Brlfl,l:~ly and ~long the line divlUluq ti1>ld Lot~ 14 an~ lS, I~B.40 reeL; thence Nvrthcrly nnd p~~l~l with the E~~ter~y l~Q Dr Ei9Clbc~ St:r;-Il.t 59_04 i~frt; It>~T)r:'''' Wf:>F:tP.r.)y ~nrl l1"'-TrIllE!l wiili' Lbr::< iine diridin9 s;.inJ.ot!'l l4 and 13, ;t4fl.4.0 feet to the llaste:l.'ly line of Elig"lb<lrry !;tro~t; ;md then~~ SbUthexly ~d 310ns thQ East~rly 1inQ of Eig~erry -St~~l: 39.64 feet to thl!' pJ":"p, (J-f beQ'innmg, awl LeIily ,,11 I.)f wI:; 110. 14 and a pe.rt- of Lac No.5, in. Block 1 South, nungc I Wect of the City o~ Gilroy, ~~ ~hown an ~~id M~ No. 5 aud itg .:>roEUldmentE.' nf'Teinabuv~ U1t::Ul..LUUcU. . :ib;:C\l~t:i.J:,g t:becr'er:rnm I'.hnr-. port;LOD tb"-r=[ cOClveyeu LI.) \..l:Je city or. Gilroy :by Deed 'uJ: M. Casey, et al to City of Cilroy J recorded i.n the Ott'i.c<t 0:1: t:he \.O'lJTIcy Recorder oi ~b~ counLy o~ Srlnr-~ rl",n, ~~nt:P. of CalifoLuio iu ~ook )80 of'DCcdc, dL PI'1'w.Je 381. P A?;CEL Tl'fIJ; P>irt.~:L Que <<5 shown.' upon t:.h,,-t cC!rtaiD l'a.:rcel Hap filed fo~ rQcoro JuJ.y 20, 1 ~fJl :in BODY. 575 of MapEl, l't. f'''g",s:: .~l ;mr1 <;7. 'or Rrlnt." r:1Clra CouuLy .R<::cord~. :r (~\ \-~)y~? """ . . I . I