Exhibit 99.1
MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
1. Parties. This lease dated JANUARY 1, 2005 IS MADE BETWEEN JAMES MORENTIN,
LESSOR, AND STEPHEN D. WILSON, LESSEE.
2. Premises, Parking and Common Areas.
Premises. Lessor hereby leases to Lessee real property situated in the County of
San Diego, State of California, commonly known as SUITE 104, 1232 LOS VALLECITOS
BLVD, SAN MARCOS, and described as APPROXIMATELY 1320 SQUARE FEET, light
industrial unit, including rights to the Common Areas but are not including any
rights to the roof. The Premises are a part of the Building. The Premises, the
Building, the Common Areas, the land upon which the same are located, along with
all other improvements are collectively referred as the Industrial Center.
Vehicle Parking. Lessee shall be entitled to three parking spaces, unreserved
and unassigned, those portions of the common Areas designated by Lessor for
parking. Lessee shall not use more parking spaces than assigned. Parking spaces
shall be used only by vehicles no larger than full size passenger automobiles or
pick-up trucks, referred to as permitted vehicles, unless approved by Lessor in
writing.
2.2.2 Lessee shall not permit or allow any vehicles that belong to or are
controlled by Lessee or Lessee's employees, suppliers, shippers, customers, or
invitees to be loaded, unloaded, or parked in areas other than those designated
by Lessor for such activities
If Lessee permits or allows any of the prohibited activities described in 2.2 of
this Lease, then Lessor shall have the right without notice, in addition to such
other other rights and remedies that it may have to remove or tow away the
vehicle involved and charge the cost to Lessee, which cost shall be immediately
payable upon demand by Lessor.
Common Areas-Definition. Common Areas is defined as all areas and facilities
outside the premises and within the exterior boundary line of the industrial
center that are provided and designated by the Lessor from time to time for the
general non-exclusive use of Lessor, Lessee and other Lessees of the industrial
center and their respective employees, suppliers, shippers, customers and
invitees, including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways parkways, driveways and landscaped areas.
Common Areas - Changes. Lessor shall have the right, at Lessor sole discretion,
to make changes to the Common Areas without limitation.
Term. The term of this lease shall be for approximately THREE YEARS COMMENCING
ON JANUARY 1,2005 AND ENDING ON DECEMBER 31, 2008.
4. Rent.
Base Rent. Lessee shall pay to Lessor, as Base Rent for the premises, without
any offset or deduction, except as may be otherwise expressly provided in this
Lease, on the 1st day of each month at the term hereof, MONTHLY PAYMENTS IN
ADVANCE OF ONE THOUSAND ONE HUNDRED FIFTY (1150) DOLLARS. LESSEE SHALL PAY
LESSOR UPON EXECUTION HEREOF $1150.00 as Base Rent for JANUARY 2005. Rent for
any period, which is less than one month, shall be prorated to the first of each
month on the next installment.
Operating Expenses. Lessee shall pay to Lessor during the term hereof, in
addition to the Base Rent, Lessee's share, as hereinafter defined, of all
Operating Expenses, as hereinafter defined, during each calendar year of the
term of this Lease, in accordance with the following provisions:
(a) LESSEE SHARE IS DEFINED, FOR PURPOSES OF THIS LEASE, AS $145.00 dollars per
month.
(b) Operating Expenses is defined, for purposes of this lease, as all costs
incurred by Lessor, for the operation, repair and maintenance of the Common
Areas, exterior walls, roof, trash disposal services, tenant directories, fire
detection systems including security systems, real property tax, liability and
property insurance, and utilities to service the common areas.
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
5. Security Deposit. Lessee shall deposit with Lessor upon execution here of
$1300.00 AS SECURITY for Lessee's faithful performance of Lessee's obligations
hereunder. If Lessee fails to pay rent or other charges due hereunder, or
otherwise defaults with respect to any provision of this lease, Lessor may use,
apply or retain all or any portion of said deposit for the payment of any rent
or other charge in default or for the payment or any other sum to which Lessor
may become obligated by reason of Lessee's default, or to compensate Lessor for
any loss or damage which Lessor may suffer. Lessee shall within ten (10) days
after written demand, deposit cash with Lessor in an amount sufficient to
restore said deposit to the full amount. No trust relationship is created herein
between Lessor and Lessee with respect to this Security Deposit.
6. Use. The premises shall be used and occupied only for SMOG TEST ONLY or any
other use, that is reasonably comparable, and for no other purpose.
7. Compliance with the Law.
7.1 Lessor warrants to Lessee that the premises does not violate any covenants
or restrictions of record, or any applicable building code. In the event it is
determined that this warranty has been violated, then it shall be the obligation
of the Lessor, after written notice from Lessee, to promptly, at Lessor's sole
cost and expense, rectify any such violation, in the event Lessee does not give
to Lessor written notice of the violation of this warranty within six months
from the date that the lease term commences, the correction of same shall be the
obligation of the Lessee at Lessee's sole cost. This warranty shall be of no
force or effect if the Lessee was the prior occupant of the premises.
7.2 Lessee shall comply with all applicable statutes, ordinances, rules,
regulations, orders, covenants and restriction of record, and requirements of
any fire insurance underwriters or rating bureaus. Lessee shall not use nor
permit the use of the Premises or the Common Areas in any manner that will tend
to create waste or a nuisance or shall tend to disturb other occupants of the
Industrial Center.
8. Condition of Premises.
8.1 Lessor shall deliver the Premises to Lessee clean and free of debris on the
Lease commencement date (unless Lessee is already in possession) and Lessor
warrants to Lessee that the plumbing, lighting, air conditioning, heating and
loading doors in the premises shall be in good operating condition on the Lease
commencement date. In the event that it is determined that this warranty has
been violated, then it shall be the obligation of the Lessor, after receipt of
written notice from Lessee setting forth the nature of the violation, to
promptly at Lessor's cost, rectify such violation. Lessee's failure to give such
written notice to Lessor within thirty days after the lease commencement date
shall cause the conclusive presumption that Lessor has complied with all of
Lessor's obligations hereunder. The warranty contained in this paragraph shall
be of no force or effect if prior to the date of this lease, Lessee was an
occupant of the premises.
8.2 Lessee hereby accepts the premises free of defects, all equipment
serviceable and in a clean condition as of the lease commencement date or the
date that Lessee takes possession of the premises, whichever is earlier.
9. Maintenance, Repairs, Alterations and Common Area Services.
9.1 Lessor's Obligations. Lessor shall keep in good operating condition and
repair the Industrial Center except for damages caused by Lessee, his employees,
suppliers, shippers, customers and invitees, in which event the Lessee is liable
for the cost of repair of the damage.
9.2 Lessee's Obligations. Lessee shall keep in good operating condition and
repair the Premises and every part thereof, (whether or not the damaged portion
of the premises or the means of repairing the same are reasonable or readily
accessible to Lessee) including without limiting the generality of the
foregoing, all plumbing, heating, ventilating and air conditioning systems,
electrical and lighting facilities and equipment within the premises, fixtures,
interior walls and interior surfaces of exterior walls, ceilings, windows,
doors, plate glass and skylights located within the premises. If Lessee fails to
perform Lessee's obligations, Lessor
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
may enter the premises after ten days prior written notice to Lessee (except in
case of emergency, in which no notice shall be required), perform such
obligations on Lessee's behalf and put the premises in good order, condition and
repair, and the cost thereof shall be due and payable as additional rent to
Lessee, due and payable on the next rent installment.
9.3 On the last day of the term hereof, or on any sooner termination, Lessee
shall surrender the Premises to Lessor in the same condition as received,
ordinary wear and tear excepted, clean and free of debris. Any damage or
deterioration of the Premises shall not be deemed ordinary wear and tear if the
same could have been prevented by good maintenance practices. Lessee shall
repair any damage to the Premises occasioned by the installation or removal of
Lessee's trade fixtures, alterations, furnishings and equipment. Notwithstanding
anything to the contrary or otherwise stated in this Lease, Lessee shall leave
the power panels, electrical distribution systems, lighting fixtures, space
heaters, air conditioning, plumbing and fencing on the Premises in good
operating condition.
10. Alterations and Additions. Lessee shall not, without Lessor's written
consent, make any alteration, improvements or additions to the Premises,
Building or the Industrial Center. Should Lessee violate this restriction, the
Lessor may require Lessee to remove same at Lessee's cost or have it removed on
Lessee's behalf and the cost shall be due and payable as additional rent to
Lessee, on the next rent installment. Lessee shall pay all claims when due for
labor or materials furnished or alleged to have been furnished to or for Lessee
at or for use in the Premises, which claims are or may be secured by any
mechanic's or materialmen's lien against the Premises, or the Industrial Center,
or any interest therein. Lessee shall give Lesssor not less than ten days notice
prior to the commencement of any work in the premises, and Lessor shall have the
right to post notices of non-responsibility in or on the premises or the
Building. All alterations, improvements, additions which are made on the
premises, shall be the property of the Lessor and shall remain upon and be
surrendered with the Premises at the expiration of the lease term, unless Lessor
requires their removal.
11. Insurance.
11.1 Liability Insurance-Lessor. Lessor shall obtain and keep in force during
the term of this lease a policy of combined single limit bodily injury and
property damage insurance, insuring Lessor, but not Lessee, against any
liability arising out of the ownership, use, occupancy or maintenance of the
Industrial Center in an amount not less than $500,000.00 per occurrence.
11.2 Liability Insurance-Lessee. Lessee shall at Lessee's expense, obtain and
keep in force during the term of this a policy of combined single limit bodily
injury and property damage insurance, insuring Lessee and Lessor against any
liability arising out of the use, occupancy or maintenance of the Premises and
the Industrial Center. Such insurance shall be in an amount not less than
$500,000.00 per occurrence. The policy shall insure performance by Lessee of the
indemnity provisions of this paragraph. The limits of said insurance shall not,
however, limit the liability of Lessee.
11.3 Property Insurance. Lessor shall obtain and keep in force during the term
of this lease a policy of insurance covering loss or damage to the Industrial
Center improvements, but not Lessee's personal property, fixtures, equipment or
Tenant improvements, in an amount not to exceed the full replacement value
thereof, as the same may exist from time to time, providing protection against
all perils included within the classification of fire, extended coverage,
vandalism, malicious mischief, special extended perils ("all risk", as such term
is used in the insurance industry), as Lessor deems advisable in addition,
Lessor shall obtain and keep in force, during the term of this lease, a policy
of rental value insurance covering a period of one year, with loss payable to
Lessor, which insurance shall also cover all operating expenses for said period
11.4 Insurance Policies. Insurance required hereunder shall be in companies
holding a "General Policyholders Rating" of at least B plus, or such other
rating as may be required by a lender having a lien on the Premises, as set
forth in the most current issue of "Best's Insurance Guide". Lessee shall not do
or permit to be done anything, which shall invalidate the insurance policies
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
carried by Lessor. Lessee shall deliver to Lessor copies of liability insurance
policies required or certificates evidencing the existence and amounts of such
insurance within seven days after the commencement date of this Lease. No such
policy shall be cancelable or subject to reduction of coverage or other
modification except after thirty days prior written notice to Lessor. Lessee
shall, at least thirty days prior to the expiration of such policies furnish
Lessor with renewals or binders thereof.
11.5 Waiver of Subrogation. Lessee and Lessor each hereby release and relieve
the other, and waive their entire right of recovery against the other for loss
or damage arising out of or incident to the perils insured against which perils
occur in, on or about the Premises, whether due to the negligence of Lessor or
Lessee of their agents, employees, contractors and/or invitees. Lessee and
Lessor shall, upon obtaining the policies of insurance required give notice to
the insurance carrier or carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.
11.6 Indemnity. Lessee shall indemnify and hold harmless Lessor from and against
any and all claims arising from Lessee's use of the Industrial Center, or from
the conduct of Lessee's business or from any activity, work or things done,
permitted or suffered by Lessee in or about the Premises or elsewhere and shall
further indemnify and hold harmless Lessor from and against all claims arising
from any breach or default in the performance of any obligation on Lessee's part
to be performed under the terms of this Lease, or arising from any act or
omission of Lessee, or any of Lessee's agents, contractors, or employees, and
from and against all costs, attorney's fees, expenses and liabilities incurred
in the defense of any such claim or any action or proceeding brought thereon;
and in case any action or proceeding be brought against Lessor by reason of any
such claim. Lessee, upon notice from Lessor, shall defend the same at Lessee's
expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate
with Lessee in such defense. Lessee, as a material part of the consideration to
Lessor, hereby assumes all risk of damage to property of Lessee or injury to
persons, in, upon or about the Industrial Center arising from any cause and
Lessee hereby waives all claims in respect thereof against Lessor.
11.7 Exemption of Lessor from Liability. Lessee hereby agrees that Lessor shall
not be liable for injury to Lessee's business or any loss of income there from
or for damage to the goods, wares, merchandise or other property of Lessee.
Lessee's employees, agents or contractors, whether such damage or injury is
caused by or results from fire, steam, electricity, gas, water or rain, or from
the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether said damage or injury results from, conditions arising upon the
Premises or upon other portions of the Industrial Center, or from, other sources
or places and regardless of whether the cause of such damage or injury or the
means of repairing the same is inaccessible to Lessee. Lessor shall not be
liable for any damages arising from any act or neglect of any other Lessee,
occupant or user of the Industrial Center, nor from the failure of Lessor to
enforce the provisions of any other lease of the Industrial Center.
12. Damage or Destruction.
12.1 Definitions. Premises Partial Damage- The Premises are damaged or destroyed
to the extent that the cost of repair is less than fifty percent of the then
replacement cost of the Premises. Premises Total Destruction- The Premises are
damaged or destroyed to the extent that the cost of repair is fifty percent or
more of then replacement cost. Premises Building Partial Damage- The Building of
which the Premises are a part is damaged or destroyed to the extent that the
cost to repair is less than fifty percent of the then replacement cost.
Premises Building Total Destruction- The Building of which the Premises are a
part is damaged or destroyed to the extent that the cost to repair is fifty
percent or more of the replacement cost. Industrial Center Buildings- All of the
Buildings on the Industrial Center site.
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
Industrial Center Buildings Total Destruction- The Industrial Center Building
are damaged or destroyed to the extent that the cost of repair is fifty percent
or more of the then replacement cost. Insured Loss- Damage or destruction which
was covered by an event required to be covered by insurance. The fact that an
insured loss has a deductible amount shall not make the loss an uninsured loss.
Replacement Cost- The amount of money necessary to be spent in order to repair
or rebuild the damaged area to the condition that existed immediately prior to
the damage occurring excluding all improvements made by Lessees.
12.2 Premises Partial Damage; Premises Building Partial Damage.
(a) Insured Loss: During the term of this Lease there is damage which
is an insured loss and which falls into the classifications of either Premises
Partial Damage or Premises Building Partial Damage, then Lessor shall at
Lessor's expense, repair such damage to the Premises, but not Lessee's fixtures,
equipment or Tenant improvements as soon as reasonably possible and this Lease
shall continue in full force and effect.
(b) Uninsured Loss: During the term of this Lease there is damage which
is not an insured loss and which falls within the classification of Premises
Partial Damage or Premises Building partial damage, unless caused by a negligent
or willful act of Lessee (in which event Lessee shall make the repairs at
Lessee's expense), which damage prevents Lessee from using the Premises. Lessor
may at Lessor's option either repair such damage as soon as reasonably possible
at Lessor's expense, in which event this Lease shall continue in full force and
effect, or give written notice to Lessee within thirty days after the date of
the occurrence of such damage of Lessor's intention to cancel and terminate this
Lease as of the date of the occurrence of such damage in the event Lessor elects
to give such notice of Lessor's intention to cancel and repair such damage at
Lessee's expense, without reimbursement from Lessor, in which event this Lease
shall continue in full force and effect, and Lessee shall proceed to make such
repairs as soon as reasonably possible, if Lessee does not give such notice
within such ten day period this Lease shall be cancelled and terminated as of
the date of the occurrence of such damage.
12.3 Premises Total Destruction; Premises Building Total Destruction; Industrial
Center Building Total Destruction. If at any time during the term of this Lease
there is damage whether or not it is an insured loss, and which falls into the
classifications of either premises Total Destruction, or Premises Building Total
Destruction or Industrial Center Building Total Destruction, then Lessor may at
Lessor's option either repair such damage or destruction but not Lessee's
fixtures, equipment or tenant improvements, as soon as reasonably possible at
Lessor's expense, and this Lease shall continue in full force and effect, or
give written notice to Lessee within thirty days after the date of occurrence of
such damage of Lessor's intention to cancel and terminate this Lease, in which
case this Lease shall be cancelled and terminated as of the date of the
occurrence of such damage.
13.Waiver. Lessor and Lessee waive the provisions of any statute, which relate
to termination of leases when leased property is destroyed and agree that such
event shall be governed by the terms of this lease.
14. Utilities. Lessee shall pay for all, gas, heat, light, power, telephone and
other utilities and services supplied to the Premises, together with any taxes
thereon.
15. Real Property Taxes. Lessor shall pay the real property tax, applicable to
the Industrial Center subject to reimbursement by Lessee of Lessee's share of
such taxes. If the Industrial Center is not separately assessed, Lessee's share
of the real property tax liability shall be an equitable proportion of the real
property taxes for all of the land and improvements included within this tax
parcel assessed such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
16. Assignment and Subletting. Lessee shall not assign, transfer, mortgage,
sublet or otherwise transfer or encumber all or any part of Lessee's interest in
the lease or in the premises without Lessor's prior written consent.
17. Default. The occurrence of any one or more of the following events shall
constitute a material default of this Lease by Lessee.
(a) The vacating or abandonment of the Premises by Lessee.
(b) The failure by Lessee to make any payment of rent or any other
payment required to made by Lessee when due.
(C) The failure by Lessee to perform any of the covenants, conditions
or provisions of this Lease.
(d) The discovery by Lessor that any financial statement given to
Lessor by Lessee was false.
18. Late Charges. Lessee hereby acknowledges that late payment to Lessee to
Lessor of rent and other sums due will cause Lessor to incur costs contemplated
by this Lease, the exact amount will be difficult to ascertain. Such cost
include, but are not limited to, processing and accounting charges, and late
charges, which may be imposed on Lessor by the terms of any mortgage or trust
deed covering the property. Accordingly, if any installment of rent and other
sums due from Lessee are not be received by Lessor within ten days after such
amount is due, then, without any requirement for notice to Lessee. Lessee shall
pay to Lessor a late charge of 6% of such overdue amount. The parties hereby
agree that such charge by Lessor shall not constitute a waiver of Lessee's
default with respect to such overdue amount, nor prevent Lessor from exercising
any of the other rights and remedies granted hereunder.
19. Estoppel Certificate. Each party (as responding party) shall at any time
upon not less than ten days prior written notice from the other party
(requesting party) execute, acknowledge and deliver to the requesting party a
statement in writing certifying that this Lease is unmodified and in full force
and effect (or, if modified, stating the nature of such modification and
certifying that this Lease, as so modified, is in full force and effect) and the
date which the rent and other charges are paid in advance, if any, and
acknowledging that there are not, to the responding party's knowledge any
uncured default on the part of the requesting party, or specifying such defaults
if any are claimed. Any such statement may be conclusively relied upon by any
prospective purchaser or encumbrancer of the Premises or of the business of the
requesting party. If Lessor desires to refinance or sell the property, or any
part thereof, Lessee hereby agrees to deliver to any lender or purchaser such
financial statement of Lessee as may be required. Such statements shall include
the past three years financial statement of Lessee. All such financial statement
shall be received by Lessor and such lender or purchaser in confidence and shall
be used only for the purposes herein set forth.
20. Severability. The invalidity of any provision of this Lease as determined by
a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof.
21. Time of Essence. Time is of the essence with respect to the obligations to
be performed under this Lease.
22. Additional Rent. All monetary obligations of Lessee to Lessor under the
terms of this Lease, including but not limited to Lessee's share of Operating
Expenses, late charges, and insurance payable shall be deemed to be rent.
23. Notices. Any notice required or permitted to be given shall be in writing
and may be given by personal delivery or by certified or first class mail and if
given personally or by mail, shall be deemed sufficiently given if addressed to
Lessee or to Lessor at the address noted below the signature of the respective
parties, as the case may be. Either party by notice to the other specify a
different address for notice purposes except that upon Lessee's taking
possession of the
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
Premises, the Premises shall constitute Lessee's address for notice purposes. A
copy of all notices required or permitted to be given to Lessor shall be
concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time designate by notice to Lessee.
24. Holding Over. If Lessee, with Lessor's consent, remains in possession of the
Premises or any part thereof after the expiration of the term, such occupancy
shall be a tenancy from month to month upon all the provisions of this Lease
pertaining to the obligations of Lessee, but all Options, if any, granted under
the terms of this Lease shall be deemed terminated and be of no further effect
during said month to month tenancy.
25. Covenants and Conditions. Each provision of this Lease performable by Lessee
shall be deemed both a covenant and a condition.
26. Attorney Fees. If either party bring an action to enforce the terms hereof
or declare rights hereunder, the prevailing party in any such action, on trial
or appeal, shall be entitled to his reasonable attorney's fees to be paid by the
losing party as fixed by the court.
27. Lessor's Access. Lessor and Lessor's agents shall have the right to enter
the Premises at reasonable times for the purpose of inspection, showing to
prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises or to the building of which
they are a part as Lessor may deem necessary or desirable. Lessor may at any
time place on or about the Premises or the building any ordinary "For Sale"
signs and Lessor may at any time during the last 120 days of the term place on
or about the Premises any ordinary "For Lease" signs. All activities of Lessor
pursuant to this paragraph shall be without abatement of rent, nor shall Lessor
have any liability to Lessee for the same.
27. Signs. Lessee shall not place any sign upon the Premises or the Industrial
Center with out Lessor's prior written consent. Under no circumstances shall
Lessee place a sign on any roof of the Industrial Center.
28. Consents. Wherever in this Lease the consent of one part is required to an
act of the other part such consent shall not be unreasonable withheld or
delayed.
29.Security Measures. Lessee hereby acknowledges that Lessor shall have no
obligation whatsoever to provide guard service or other security measures for
the benefit of the Premises or the Industrial Center. Lessee assumes all
responsibility for the protection of Lessee, its agents and invitees and the
property of Lessee and of Lessee's agents and invitees from acts of third
parties. Nothing herein contained shall prevent Lessor, at Lessor's sole option,
from providing security protection for the Industrial Center or any part
thereof, in which event the cost thereof shall be included within the definition
of Operating Expenses.
30. Easements. Lessor reserves to itself the right from time to time, to grant
such easements, rights and dedications that Lessor deems necessary or desirable,
and to cause the recordation of Parcel Maps and restrictions, so long as such
easements, rights, dedications, maps and restrictions do not unreasonably
interfere with the use of the Premises by Lessee. Lessee shall sign any of the
aforementioned documents upon request of Lessor and failure to do so shall
constitute a material default of this Lease by Lessee without the need for
further notice to Lessee.
31. Quiet Possession. Upon Lessee paying the rent for the Premises and observing
and performing all of the covenants, conditions and provisions on Lessee's part
to be observed and performed hereunder. Lessee shall have quiet possession of
the Premises for the entire term hereof subject to all of the provisions of this
Lease. The individuals executing this Lease on behalf of Lessee represent and
warrant to Lessee that they are fully authorized and legally capable of
executing this Lease on behalf of Lessor and that such execution is binding upon
all parties holding an ownership interest in the property.
32. Guarantor. In the event that there is a guarantor of this Lease, said
guarantor shall have the same obligations as Lessee under this Lease.
33. Auctions. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises or the Common Areas
without first having obtained Lessor's prior written consent. Notwithstanding
anything to the contrary in this Lease, Lessor shall not be obligated to
exercise any standard of reasonableness in determining whether to grant such
consent.
34. Authority. If Lessee is a corporation, trust, or general or limited
partnership, each individual executing this Lease on behalf of such entity
represents and warrants that he or she is duly authorized to execute and deliver
this Lease on behalf of said entity. If Lessee is a corporation,
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MORENTIN BUSINESS PARK
1232 Los Vallecitos Blvd, San Marcos, California
trust or partnership, Lessee shall, within thirty (30) days after execution of
this Lease, deliver to Lessor evidence of such authority satisfactory to Lessor.
35. Conflict. Any conflict between the printed provisions of this Lease and the
typewritten or handwritten provisions, if any, shall be controlled by the
typewritten or handwritten provisions.
36. Offer. Preparation of this Lease by Lessor or Lessor's agent and submission
of same to Lessee shall not be deemed an offer to Lease. This Lease shall become
binding upon Lessor and Lessee only when fully executed by Lessor and Lessee.
37. Addendum. Attached hereto is an addendum or addenda containing paragraphs
(none) through (none) which constitutes a part of this Lease.
38. This lease dated January 1,2005.
39. Lessee has the option to renew this lease for 3 years upon expiration of
this lease by providing Lessor with a 30 day notice prior to completion of
lease. A new lease will be drafted at that time.
40. A five percent annual rent increase shall take effect on January l, 2006 and
January 1,2007.
Move In Costs:
Rent $1150
Common area expenses $ 145
Security Deposit $1300
Total $2595
Monthly Rent Payment $1295
Lessor and Lessee have carefully read and reviewed this lease and each term and
provision contained herein and by execution of this lease show their informed
and voluntary consent thereto the partiers hereby agree that at the time this
lease is executed, the terms of this lease are commercially reasonable and
effectuate the intent and purpose of Lessor and Lessee with respect to the
premises.
This lease has been prepared for submission to your attorney for approval. No
representation or recommendation is made by the American Industrial Real Estate
Association or by the Real Estate Broker or its agents or employees as to the
legal sufficiency, legal effect, or tax consequences of this lease or the
transaction relating thereto. The parties shall rely solely upon the advice of
their own legal counsel as to the legal and tax consequences of this lease.
LESSOR LESSEE
/s/ JAMES MORENTIN /s/ STEPHEN D. WILSON
- --------------------------------- ------------------------------------
By: James Morentin By: Stephen D. Wilson
Executed on 1/1/05 Executed on 1/1/05
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Mail Rent Payments to: Mail Address: (If different than MBP address)
James Morentin
POB 1502
Vista, Ca 92085
Phone: 758 0847
Fax: 758 0673
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