COURTHOUSE SQUARE
LEASE AGREEMENT
This Courthouse
Square Lease Agreement ("Lease") is made and entered into this 30th
day of September, 2008, by and between the CITY OF HANFORD, a
municipal corporation, with its principal place of business in the
City of Hanford, County of Kings, State of California (hereinafter
referred to as "Landlord"), and Global Food Technologies, Inc., a
Delaware Corporation with its principal place of business in the
City of Hanford, County of Kings, State of California, (hereinafter
referred to as "Tenant").
WITNESSETH: that;
The parties hereto, in consideration of the
rental hereinafter reserved and the covenants and agreements
hereinafter set forth, do make and enter into the following
Agreement of Lease:
Landlord hereby
leases to Tenant and Tenant hereby hires and takes from Landlord,
at the rental rate, and upon the conditions hereinafter set forth,
those certain premises identified as 113 Court Street comprising
and area of approximately 3,420 square feet of the Courthouse
Square Building, together with all rights and appurtenances as set
forth herein, being located in the City of Hanford, County of
Kings, State of California, and more commonly known as 113 Court
Street, Suites 205, 206, 207, 208, 209 & 210, Hanford,
California 93230 (“Premises’).
113 Court
Street, Hanford
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113 Court
Street, Hanford
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113 Court
Street, Hanford
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113 Court
Street, Hanford
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Total Premises Leased
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The term
"common areas" means all areas and facilities outside the Premises
and within the interior and exterior boundaries of the Courthouse
Square Building within which the Premises is located that are
provided and designated by Landlord from time to time for the
general use and convenience of Tenant and of other tenants of the
Courthouse Square Building and their respective authorized
representatives and invitees. Common areas include, without
limitation, walkways, decorative walls, plazas, malls, loading
areas, roads, parking area and restrooms.
A.
Tenant's Right to
Use:
Landlord gives
to Tenant and its authorized representatives and invitees the
non-exclusive right to use the common areas, with others who are
entitled to use the common areas, subject to Landlord's rights as
hereinafter set forth.
B.
Landlord's Maintenance and
Management:
Landlord shall
maintain the common areas in good condition at all times. Landlord
shall have the right to:
1.
Establish and enforce reasonable
rules and regulations applicable to all tenants concerning the
maintenance, management, use, and operation of the common
areas.
2.
Close any of the common areas to
whatever extent required in the opinion of Landlord's counsel to
prevent a dedication of any of the common areas or the accrual of
any rights to any person or of the public to the common
areas.
3.
Close temporarily any of the common
areas for maintenance purposes.
4.
Designate other property outside
the boundaries for the Courthouse Square Building to become part of
the common areas.
5.
Select a person to maintain and
operate any of the common areas if at any time Landlord determines
that the best interests of the Courthouse Square Building 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.
6.
Make changes to the common areas
including, without limitation, changes in the location of
driveways, entrances, exits, or the direction of the flow of
traffic so long as such changes do not unreasonably interfere with
Tenant's use and possession of the Premises.
C.
Tenant's Share of
Cost:
Tenant shall
pay to Landlord, on a monthly basis, an amount calculated by
Landlord to be Tenant's share of Common Area Costs (as defined in
this paragraph), on the first day of each month, commencing on the
date the term commences, or on the first day of the month following
the month the term commences if the term commences on a day other
than the first day of a month as the case may be, and continuing
during the term or any extension thereof.
Tenant's
proportionate share of Common Area Costs shall be calculated by
multiplying the total Common Area Costs times the ratio of the
total number of square feet in the Premises to the total number of
leasable square feet in the Courthouse Square Building. Common Area
Costs that cover a period not within the term of this Lease shall
be prorated.
Landlord can
adjust the monthly Common Area Costs July 1 st of each
year of the lease term, on the basis of Landlord's calculation of
Common Area costs for the next year of the lease term.
Landlord shall
furnish to Tenant a statement showing the total Common Area Costs,
Tenant's share of Common Area Costs for that respective year of the
lease term, and the monthly payments to be made by Tenant for that
next year. For the time period commencing on the date of this Lease
through September 30, 2009, Tenant's monthly Common Area Cost shall
be Five Hundred Eighteen Dollars and Seventy-five Cents
($518.75).
For purposes
hereof, the term "Common Area Costs" shall include, but is not
limited to, the real property taxes and assessments and other taxes
and assessments of any nature levied or assessed against the Common
Areas and the Courthouse Square Building, or assessed against
Landlord as a result of the Common Areas or the Courthouse Square
Building, all natural gas and electrical charges assessed against
the Common Areas, all of Landlord's cost for any type of insurance
for the Common Areas and the Courthouse Square Building, all sums
expended by Landlord for property management and maintenance and
operation of the Common Areas, and the cost of natural gas service
for the Premises.
Costs of
maintenance and operation of the Common Areas shall include,
without limitation, cleaning, sweeping and other janitorial
services, policing, maintenance of refuse receptacles, security
systems, parking lot maintenance, planting and relandscaping,
directional signs and other markers, lighting and other utilities
and premiums for public liability and property damage insurance,
and other costs necessary in Landlord's judgment for the
maintenance and operation of the Common Areas.
The term of
this lease shall be for a period of two (2) years, effective,
October 1, 2008 and ending at midnight, Pacific Standard Time or
Pacific Daylight Time, whichever is applicable, September 30,
2010.
A.
Delivery of
Possession:
Tenant agrees
that, in the event of the inability of Landlord to deliver
possession of the Premises to Tenant on the date above specified
for the commencement of this Lease, this Lease shall not be void or
voidable, nor shall Landlord be liable to Tenant for any loss or
damage resulting therefrom, nor shall the expiration date of the
above term be in any way extended, but, in such event, Tenant shall
not be liable for any rent until such time as Landlord delivers
possession of the Premises to Tenant.
The provisions
of Subsection (1) of Section 1932 of the California Civil Code
shall not apply to this Lease, and Tenant waives the benefit of
such provisions.
Should Landlord
tender possession of the Premises to Tenant prior to the date
specified for commencement of the term thereof, and Tenant elects
to accept such prior tender, such prior occupancy shall be subject
to all of the terms, covenants, and conditions of this Lease,
except payment of rent. By entering into and occupying the
Premises, Tenant shall be deemed to acknowledge that the Premises
are in good order and repair.
B.
Surrender of
Premises:
Tenant agrees
to surrender the Premises at the termination of the tenancy herein
created to Landlord including all of the Tenant's improvements and
alterations in good condition (except for ordinary wear and tear
occurring to the Premises and except for alterations that Tenant
has the right to remove or is obligated to remove under the
provisions of this Lease). Tenant shall remove all its personal
property prior to the date of termination of the tenancy and shall
remove all other improvements and alterations to the Premises if
Landlord directs Tenant to do so, at Tenant's sole cost and
expense. Tenant shall perform all restoration made necessary by the
removal of any alterations or Tenant's personal property prior to
termination of the tenancy.
Landlord can elect to retain or dispose of in
any manner any alterations or Tenant's personal property that
Tenant does not remove from the Premises upon termination of the
tenancy as allowed or required by this Lease by giving at least ten
(10) days notice to Tenant. Title to any such alterations or
Tenant's personal property that Landlord elects to retain or
dispose of on expiration of the ten (10) day period shall vest in
Landlord. Tenant waives all claims against Landlord for any damage
to Tenant resulting from Landlord’s retention or disposition
of any such alterations or Tenant's personal property. Tenant shall
be liable to Landlord for Landlord's cost for storing, removing and
disposing of any alterations of Tenant's personal
property.
If Tenant fails to surrender the Premises to
Landlord on the termination of the tenancy, Tenant shall indemnify,
defend and hold Landlord harmless from any claims, damages, costs,
expenses and attorney’s fees incurred by Landlord as a result
of Tenant's failure to surrender the Premises.
If Tenant shall
fail to remove all of its effects from said Premises upon
termination of this Lease for any cause whatsoever, Landlord may,
at its option, remove the same in any manner that Landlord shall
choose, and store said effects without liability to Tenant for loss
thereof, and Tenant agrees to pay Landlord upon demand any and all
expenses incurred in such removal including court costs and
attorney’s fees and storage charges on such effects for any
length of time that the same shall be in Landlord's possession, or
Landlord may, at its option, without notice, sell said effects, or
any of the same, at private sale and without legal process, for
such price as Landlord may obtain and apply the proceeds of such
sale upon any amounts due under this Lease from Tenant to Landlord
and upon the expense incident to the removal and sale of said
effects.
If Tenant holds over after the expiration or
earlier termination of the term of this Lease, Tenant shall become
a Tenant at sufferance only, at the rental rate of 150% of the
rental rate in effect on the date of such expiration and otherwise
upon the terms, covenants and conditions herein specified, so far
as applicable.
If Tenant, with Landlord's express written
consent, remains in possession of the Premises after expiration or
earlier termination of the term hereof, such possession shall be
deemed a month-to-month tenancy, terminable on thirty (30) days
written notice given at any time by either party, and at the rental
rate in effect upon the date of such expiration and otherwise upon
the terms, covenants, and conditions herein specified, so far as
applicable. Acceptance by Landlord of rent after such expiration or
earlier termination shall not constitute a holdover hereunder or
result in a renewal of this Lease.
Tenant agrees
to and shall pay to Landlord as rent for the Premises the
following:
Tenant agrees to pay Landlord as the total rent
for the Premises for the period of October 1, 2008 through
September 30, 2010 Eighty-two Thousand and Eighty Dollars ($82,080)
in equal monthly installments of Three Thousand Four Hundred Twenty
Dollars ($3,420). Rental payments pursuant to this section shall be
paid each in advance on the first day of each and every calendar
month during said term, except that the first month's rent shall be
paid upon the execution of this Lease. In the event the term of
this Lease commences or ends on a day other than the first day of a
calendar month, then the rental for such periods shall be prorated
in the proportion that the number of days this Lease is in effect
during such period bears to thirty (30) days, and such rental shall
be paid at the commencement of such periods. Said rental shall be
paid to Landlord, without deduction offset, prior notice or demand,
in lawful money of the United States of America, which shall be
legal tender at the time of payment, at the office of Landlord or
to such other person or at such other place as Landlord may, from
time to time, designate in writing.
Tenant shall pay to Landlord, concurrent with
the effectiveness of this Lease, an amount equal to the first and
last month's rent of the Premises.
Commencing with the thirteenth (13th) full
calendar month of the term of this Lease, and at the end of each
twelfth (12th) month thereafter, during the term, the Monthly Rent
as described in Section 4A of this Lease Agreement for the ensuing
twelve (12) month period ("Adjustment Period") shall be increased
by 5.0%.
On execution of this Lease, Tenant shall deposit
with Landlord an amount equal to one month’s rent as a
security deposit for the performance by Tenant of the provision of
this Lease. If Tenant is in default, Landlord can use the security
deposit, or any portion of it, to cure the default or to compensate
Landlord for all costs and damages sustained by Landlord resulting
from Tenant’s default. Tenant shall immediately on demand,
pay to Landlord a sum equal to the portion of the security deposit
expended or applied by Landlord as provided in this paragraph so as
to maintain the security deposit in the sum initially deposited
with Landlord. If Tenant is not in default at the expiration or
termination of this Lease, Landlord shall return the security
deposit to Tenant. Landlord’s obligations with respect to the
security deposit are those of a debtor and not a trustee. Landlord
can maintain the security deposit separate and apart from
Landlord’s general funds or can co-mingle the security
deposit with Landlord’s general and other funds. Landlord
shall not be required to pay Tenant interest on the security
deposit.
E.
Late Charge
Tenant
acknowledges that late payment by Tenant to Landlord of rent will
cause Landlord to incur costs not contemplated by this Lease, the
exact amount of such costs being extremely difficult and
impracticable to fix. Such costs include, without limitation,
processing and accounting charges, and late charges that may be
imposed on Landlord by the terms of any encumbrance and note
secured by any encumbrance covering the Premises. Therefore, if any
installment of rent due from Tenant is not received by Landlord
within ten (10) days from the date when said rent was due, Tenant
shall pay to Landlord an additional sum of Ten Percent (10%) of the
overdue rent as a late charge. The parties agree that this late
charge represents a fair and reasonable estimate of the costs that
Landlord will incur by reason of late payment by Tenant. Acceptance
of any late charge shall not constitute a waiver of Tenant's
default with respect to the overdue amount, nor prevent Landlord
from exercising any of the other rights and remedies available to
Landlord.
A.
Personal Property and Possessory
Interest Taxes:
If during the
term of this Lease or any extension thereof, Tenant is required to
pay taxes as defined below, Tenant, shall be liable for and shall
pay ten (10) days before delinquency all taxes, assessments,
license fees, and other charges ("Taxes") that are levied and
assessed against Tenant's personal property or trade fixtures
installed or located in or about Premises or Tenant's possessory
interest in the Premises, and that become payable during the Lease
term. On demand by Landlord, Tenant shall furnish Landlord with
satisfactory evidence of these payments.
If any taxes on
Tenant's personal property, trade fixtures or possessory interest
are levied against Landlord or Landlord's property, or if the
assessed value of the Premises is increased by the inclusion of a
value on Tenant's personal property, trade fixtures or possessory
interest and if Landlord pays the Taxes on any of these items of
the Taxes based on the increased assessment of these items, which
Landlord shall have the right to do regardless of the validity
thereof, but only under proper protest if requested by Tenant,
Tenant shall on demand, immediately reimburse Landlord for the sum
of the Taxes levied against Landlord, or the proportion of the
Taxes resulting from the increase in Landlord's
assessment.
If Tenant's
improvements on the Premises, whether installed and/or paid for by
Landlord or Tenant and whether or not affixed to the real property
so as to become a part thereof, are assessed for Real Property tax
purposes at a valuation higher than the valuation at which Tenant's
improvements are assessed, then the Real Property taxes and
assessments levied against Landlord or the Premises by reason of
such excess assessed valuation shall be deemed to be taxes levied
against personal property of Tenant and shall be governed by the
provisions of the above. If the records of the County Assessor are
available and sufficiently detailed to serve as a basis for
determining whether said Tenant improvements are assessed at a
higher valuation, such records shall be binding on both Landlord
and Tenant. If the records of the County Assessor are not available
or sufficiently detailed to serve as a basis for making said
determination, the actual cost of construction shall be
used.
B.
Tenant Acknowledgment Of
Possessory Interest Taxes
Tenant
acknowledges, understands and agrees that: (1) this Lease may
create a possessory interest in Tenant which may be subject to real
property taxes; (2) the property interest of Tenant created by this
Lease may be subject to property taxes; and (3) this Lease may be
subject to property taxes. Tenant agrees to pay all such taxes, as
identified above, before the same become delinquent.
Tenant shall
use the Premises for Corporate Business Offices and for no other
use without Landlord's consent. Tenant shall conduct its business
at the Premises as Global Food Technologies, Inc.
Tenant shall
not use or occupy the Premises in violation of law or of the
Certificate of Occupancy issued for the Premises, and shall, upon
five (5) days written notice from Landlord, discontinue any use of
the Premises declared by any governmental authority having
jurisdiction including but not limited to Landlord, which shall, by
reason of the nature of Tenant's use or occupancy of the Premises,
impose any duty upon Tenant or Landlord with respect to the
Premises or with respect to the use or occupancy thereof. Tenant
shall not do or permit to be done anything which will invalidate,
cause cancellation or increase the cost of any fire, extended
coverage of any other insurance policy covering the Premises and/or
property located therein and shall comply with all rules, orders,
regulations. and requirements of the Pacific Fire Rating Bureau or
any other organization performing a similar function.
If the rate of
any insurance carried by Landlord is increased as a result of
Tenant's use, Tenant shall pay to Landlord within ten (10) days
before the date Landlord is obligated to pay a premium on the
insurance, or within fifteen (15) days after Landlord delivers to
Tenant a certified statement from Landlord's insurance carrier
stating that the rate increase was caused solely by an activity of
Tenant on the Premises as permitted in this Lease, whichever date
is later, a sum equal to the difference between the original
premium and the increased premium.
Tenant shall
comply with all laws concerning the Premises or Tenant's use of the
Premises, including, without limitation, the obligation at Tenant's
cost to alter, maintain, or restore the Premises in compliance and
conformity with all laws relating to the condition, use or
occupancy of the Premises during the term of this Lease.
Tenant shall
promptly, upon demand, reimburse Landlord for any additional
premium charged for such policy by reason of Tenant's failure to
comply with the provisions of this article.
Tenant shall
not use or allow the Premises to be used for any improper, immoral,
unlawful, or objectionable purpose, nor shall Tenant cause,
maintain or permit any nuisance in, on or about the
Premises.
Tenant shall
not use the Premises in any manner that will constitute waste,
nuisance, or unreasonable annoyance (including, without limitation,
the use of loudspeakers or sound or light apparatus that can be
heard or seen outside the Premises) to other tenants in the
Facility in which the Premises are located.
Tenant shall
not use the Premises for sleeping, washing clothes, cooking, or the
preparation, manufacture, or mixing of anything that might emit any
odor or objectionable noises or lights onto the
Premises.
No secondhand
store, auction, distress or fire sale, or bankruptcy or going
out-of-business sale may be conducted on
the Premises without Landlord's consent. Tenant shall not sell or
display merchandise outside the confines of the
Premises.
Tenant shall
not do anything on the Premises that will cause damage to the
Premises.
The Premises
shall not be overloaded. No machinery, apparatus, or other
appliance shall be used or operated in or on the Premises that will
in any manner injure, vibrate, or shake the Premises.
Tenant will
not, without the written consent of Landlord, either use any
apparatus or devise in connection with the Premises which will in
any way increase the amount of electricity or water usually
furnished or supplied to the Premises, or connect with the electric
current or with water any apparatus or device for the purpose of
using electric current or water.
Throughout the
term of this Lease, Tenant, at its sole cost, shall maintain the
Premises in compliance with the Americans With Disabilities Act of
1990 and the regulations related thereto.
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7.
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LEASEHOLD
IMPROVEMENTS
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Tenant shall,
at its own cost and expense, furnish and install all leasehold
improvements. Said improvements shall be subject to Landlord's
prior written consent thereto and shall be in accordance with the
plans and specifications first approved by Landlord.
Tenant
covenants and agrees that all work done by Tenant shall be
performed in full compliance with all laws, rules, orders,
ordinances, directions, regulations, and requirements of all
governmental agencies, offices, departments, bureaus and board
having jurisdiction and in full compliance with the rules, orders,
directors, regulations and requirements of the Pacific Fire Rating
Bureau and of any similar body. Tenant shall keep the Premises and
all improvements thereon, free from all liens and claims of
mechanics, labors, materialmen and others for work done and
materials furnished to Tenant and Tenant shall not create or suffer
to be created any lien or encumbrance on the Premises.
All
alterations, decorations, additions or improvements upon the
Premises made by Tenant shall, unless Landlord elects otherwise,
become the property of Landlord, and shall remain upon, and
be surrendered with the Premises, as a part
thereof, at the end of the Lease term, except that Landlord may, by
written notice to Tenant, given at least thirty (30) days prior to
the end of the Lease term, require Tenant to remove all
improvements installed by Tenant, and Tenant shall repair or, at
Landlord's option, pay to Landlord all costs arising from such
removal.
All articles or
personal property and all business and trade fixtures, machinery,
and equipment, furniture and movable partitions owned by Tenant or
installed by Tenant at its expense in the Premises, shall be and
remain the property of Tenant and may be removed by Tenant at any
time during the term of this Lease when Tenant is not in default
hereunder. If Tenant shall fail to remove all of its effects from
the Premises upon termination of this Lease for any cause
whatsoever, Landlord may, at its option, remove the same in any
manner that Landlord shall choose, and store said effects with
liability to Tenant for loss thereof, and Tenant agrees to pay
Landlord upon demand any and all expense incurred in such removal,
including court costs and attorney’s fees and storage charges
on such effects for any length of time that the same shall be in
Landlord's possession, or Landlord may, at its option, without
notice, sell said effects or any of the same, at private sale and
without legal process, for such price as Landlord may obtain and
apply the proceeds of such sale upon any amounts due under this
lease from Tenant to Landlord and upon the expense incident to the
removal of and sale of said effects.
Tenant has
examined and inspected and knows the condition of the Premises and
every part thereof and has received the same in good order and
repair and accepts the same in its present condition. Tenant shall,
at Tenant's sole cost and expense keep the Premises and every part
thereof, including, but not limited to, all Tenant's personal
property, storefronts, plate glass, signs, windows, heating and air
condition systems in good condition and repair, damage thereto from
causes beyond the reasonable control of Tenant and ordinary wear
and tear excepted. Tenant shall, upon the expiration or sooner
termination of the hereof, surrender the Premises to Landlord as
improved by Tenant, ordinary wear and tear excepted.
If, at any
time, Premises shall fall into disrepair, Tenant shall have thirty
(30) days from the date of receipt of written notice of such
disrepair from Landlord to make the necessary repairs to place the
Premises in good condition. If said repairs are not completed
within said thirty (30) day period, Landlord may enter the Premises
and begin to complete the necessary repairs and Tenant agrees to
immediately reimburse Landlord for the cost of said repairs upon
presentation by Landlord to Tenant a bill for said
repairs.
Landlord shall
have no obligation to maintain, alter, remodel, improve, repair,
decorate or paint the Premises or any, part thereof and the parties
hereto affirm that Landlord has made no representations to Tenant
in respect of the condition of the Premises except as specifically
set forth herein.
Except as
otherwise contained herein, Tenant shall not make any structural or
exterior alterations to the Premises without Landlord’s
consent, Tenant may make nonstructural alterations to the interior
of the Premises that Tenant requires in order to conduct its
business on the Premises. In making any alterations that Tenant has
a right to make, Tenant shall comply with the following:
A.
Tenant shall submit to Landlord
reasonably detailed final plans and specifications and working
drawings of the proposed alterations and the name of its contractor
at specifications least thirty (30) days before the date it intends
to commence the alterations.
B.
The alterations shall not be
commenced until two (2) days after Landlord has received notice
from Tenant stating the date the installation
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