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Dime Racing - Failure To Pay Rent - Court Complaint Document
Dime Racing - Failure To Pay Rent - Court Complaint Document
289520)
REESE,SMALLEY, WISEMAN & SCHWEITZER,LLP
2 1265 Willis Street
Redding, CA 96001
3 Telephone:(530)241 1611
Facsimile:(530)241-5107
4 E-mail: daniel.mehr@rswslaw.com
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Attorneys for Plaintiff
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11 No.
NANCY MORROW,Trustee ofTHE MARY
12 ELLEN MORROW LIVING TRUST COMPLAINT FOR UNLAWFUL
DETAINER
13 Plaintiff, (Demand of Complaint is Over
vs. $25,000)
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JUSTIN ATNEYEL and
15 STEVEN ATNEYEL,individually; and dba
DIME RESEARCH & DEVELOPMENT;and
16 DOES 1 through 10, inclusive.
17 Defendants.
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Plaintiff complains ofthe Defendants in Two Causes of Action alleges:
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FIRST CAUSE OF ACTION
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(Against Defendants Named Herein and Does 1 through 10,
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Inclusive)
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1. Plaintiffis the owner ofthe property located at 5542 Research Drive, Huntington Beach,
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Orange County, California 92649
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2. Plaintiffis ignorant ofthe true names and capacities of Defendants sued herein as DOES
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1 through 10 inclusive, and therefor sues these Defendants by such fictitious names. Plaintiff will
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amend this complaint to allege the true names and capacities when ascertained.
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3. Defendants occupy for commercial purposes 5542 Research Drive, Huntington Beach,
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2 4. The real property, possession of which is sought in this action, is situated at 5542
3 Research Drive, Huntington Beach, Orange County, California 92649. The Superior Court of Orange
6 Research Drive, Huntington Beach, Orange County, California 92649, under a Written Agreement for
7 a 5-year Lease and a monthly rental starting at $8,546.00 per month, payable on the first day of each
8 and every month, commencing on or about July 1, 2016. A true copy ofthis Lease is attached hereto as
9 Exhibit A and made a part hereof. Defendants, JUSTIN ATNEYER and STEVEN ATNEYER,
11 6. Pursuant to said lease. Defendants took possession on or about April 1,2016 and are still
12 in possession of the Premises more commonly known as 5542 Research Drive, Huntington Beach,
14 7. By the terms ofsaid Lease, Defendants were required to pay to Plaintifflate charges for
15 failure to pay rent on time. Defendants failed to make timely Rent payments on March 1, 2017, January
16 1, 2017,December 1,2016 and November 1,2016. The total amount oflate payments for those months
17 is $4,298.80.
18 8. By the terms of said Lease, the term "Rent" includes all monetary obligations under the
19 Lease. The Lease provides that Rent payments will be applied first to accrued late charges and
20 attorney's fees, second to accrued interest, third the Base Rent, fourth to insurance and real property
21 taxes, if any, and any remaining amount to any other outstanding charges or costs.
23 replenish the security deposit in the amount of$5,298.80 for late charges and attomey's fees, costs and
24 expenses incurred in the preparation and service of Notices of Default and consultations. On or about
25 June 1, 2017 Defendants made a payment in the amount of $8,802.00, this payment was applied to the
26 amount required to replenish the deposit and as partial rent payment toward rent due on June 1, 2017.
27 10. Defendants failed to pay the rent due in the amount of $8,802.00 on July 1, 2017.
28 Defendants also failed to pay the rent due in the amount of$8,802.00 on August 1, 2017.
2 replenish the security deposit in the amount of$15,049.60, in addition to a demand to pay Rent for the
4 12. On or about August 14, 2017 Defendants made a payment in the amount of $9,000.00.
5 This amount was applied to the late charges, attorney's fees, cost and expenses incurred in the
7 13. Defendants have not paid the full amount of the following rental installments required
8 by the terms and provisions ofsaid Lease, and said amount is now due and unpaid;
9 (1) The $8,802.00 rent due July 1, 2017 for the period July 1, 2017 through July 31,
10 2017; and
11 (2)The $8,802.00 rent due August 1,2017 for the period August 1,2017 through August
14 the amount of rent due and requiring Defendants to pay the whole thereof within three days or deliver
15 up possession ofthe Premises within three days after service ofthe notice. The originals and said notice
16 of proof ofservice are attached hereto, marked Exhibit B and made a part hereof.
17 15. Defendants made a partial payment of$9,000.00 on August 24, 2017.
18 16. More than three days have lapsed since the service ofsaid notice, but the entirety ofsaid
19 rent has not been paid. More than three days have passed since service of the notice and Plaintiff is
20 entitled to possession ofsaid Premises.
21 17. Defendants continue in possession of said premises without Plaintiffs permission or
23 18. The reasonable rental value ofsaid Premises is the sum of$293.40 per day, and damages
24 to Plaintiff caused by Defendants unlawful detention thereof have accrued in the sum which is not
25 certain at this time, but will be shown at the time of trial.
26 19. Said Lease provides that in the event suit is instituted to enforce any part of the Lease,
27 said tenant will pay such additional sum as the court may judge reasonable, including attomey's fees
28 and court cost ofsaid suit.
2 for default in pajmient ofrent, and Plaintiffrequests a reasonable sum to be awarded to Plaintiff as and
6 Inclusive)
8 22. The rent under the Lease attached as Exhibit A and made a part hereof^ is $8,802.00 per
9 month from July 1, 2017 to March 31, 2018; and $9,066.00 per month starting April 1, 2018 to March
10 31,2019; and $9,338.00 per month starting April 1, 2019 to March 31,2020; and $9,618.00 per month
11 starting April 1,2020 and going to March 31, 2021. Under paragraph 13.2(a)ofthe Lease(Exhibit A),
12 in the event of default under the Lease, Lessor is entitled to recover the worth at the time of the award
13 ofthe amount by which the unpaid rent which would have been earned after termination until the time
14 of award exceeds the amount of such rental loss that the Lessee proves could he reasonably avoided.
15 The worth at the time of award shall be discounted at the discount rate ofthe Federal Reserve Bank of
17 23. Under paragraph 13.2 (a) of the Lease (Exhibit A), in the event of default under the
18 Lease, the Lessor is also entitled to recover any other amount necessary to compensate Lessor for any
19 detriment caused by breach ofthe Lease, including but not limited to the cost ofrecovering possession
20 of the property, the expense of reletting, the cost of necessary renovation and alteration such that the
21 property can he re-leased, reasonable attorney's fees, and the portion of any leasing commission paid
22 by Lessor applicable to the unexpired term ofthe Lease.
23 24. Plaintiff has not yet been able to retake possession ofthe premises and therefore has not
24 yet been able to renovate the property, list it for rent, or re-rent the Premises. No new Lessee has been
25 found as of yet, and will not likely be found until after the conclusion ofthe Unlawful Detainer.
26 25. As a proximate result ofDefendants' breach ofthe Lease,and the consequent termination
27 of the Lease as alleged in this Complaint, Plaintiff has been further damaged in the sum of $8,802.00
28 per month for the period September 1,2017 to March 31,2018; and $9,066.00 per month for the period
3 Lease term after the time of the award in this action, less any sums the Lessee shows will he received
4 by Plaintiff during that period as rent from the reletting ofthe Premises.
5 26. As a further proximate result of Defendants' breach of the Lease as alleged in this
6 Complaint,Plaintiff will he damaged in any sums spent to attempt to mitigate these damages,including
7 the costs of repairing or modifying the Premises to get it ready to rent, advertising, any real estate
8 commissions, and all other expenses in attempting to mitigate the damages by reletting the property in
13 2. For the rent of said Premises now due and unpaid for the period set forth in Paragraph 13
15 3. For damages at the rate of$293.40 per day after August 31,2017, until the date of Award,
16 aceording to proof;
18 4. For the worth at the time ofthe award ofthis action of unpaid rent that would have been
19 acerued for the balance ofthe term ofthe Lease after the time ofthe Award in this action,
20 totaling up to approximately $397,878.00, less any rent Lessee shows will be received by
21 Plaintiff during that period from the reletting ofthe Premises, discounted at the discount
22 rate of the Federal Reserve Bank of San Francisco at the time ofthe Award plus one
23 percent.
24 5. For expenses incurred in preparing the Premises to relet and in reletting the Premises, in a
4
DANIEL MEHR
5 Attorney for Plaintiff
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I, DANIEL S. MEHR,do hereby declare:
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I am an attorney and partner at the Law Offices Reese, Smalley, Wiseman &
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Schweitzer, LLP, attorneys for Plaintiff NANCY MORROW, Trustee of THE MARY
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ELLEN MORROW LIVING TRUST,a party to this action. PlaintiffNANCY MORROW,
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Trustee ofTHE MARY ELLEN MORROW LIVING TRUST is absent from the County of
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Shasta, where our offices are located, and I make this Verification for, and on behalf of
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NANCY MORROW,Trustee ofTHE MARY ELLEN MORROW LIVING TRUST,for that
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reason. I am informed and believe, and on that ground allege,that the matters stated m this
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COMPLAINT FOR UNLAWFUL DETAINER are true.
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Executed this 30"^ day of August 2017, at Redding, California.
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DANIEITS. MEHR,ESQ.'
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conslrudad by Lsssae. shaB ba in good <wraftia SaSj^TistcS'r^ihl^^'"lf' elsments In ths Premises, other than those
foundation of any builifmas on me t 2? , structural elements of the roof. beaHng w!ls and
any mtjltl or fur^i defined as toxic under anniLahi#* i4hrA^2trf^ i ^ite UrUt does not contain hazardous levels of
su| systo^s
such matter, except as otoetvvfee omvided tn th} i mmrttt/ ^psfttto. Lessor shall, as Lessor^ sola ehlissfion vwto respect to
3, Term,
3,t Commencement Date. Explratbn Date and Original Term of tola Lease are as specified in Paragraph 1 3
Pmmte L gmnfing Lessee
Premises b^^ ^labte fca^ such possession prior to the Commencement EarlyAnv
Date. Pdssesston of thePossession
grant of Early Premises Isonly
sttoject to amia commton^
conveys non^exclu^eupcm
riohttheto
S f Premises prior to the' Commencement Date, the
^^insurance S2^ of su^
premitmis end toCariy Possessim
maintain Ai other
the Premises) shellterms
be inofeffect
this Lease
duringOnciudlng but not
such pertod. ArtySmiled to thePosses^on
such Eerty obligationsshall
to pay
notReal
aftoctPrwrty Taxes
the Ext^rehon
1 L^sra- QQtmsi to use ite best commenrfaiiy reaaor^ble effoits to deliver posses^mi of the Premises to
Khif LS SSf ?w?' possession by sut^ date. Lessor shall not be subject to any
f affe(4 mis Lease or changp the Ejgjiraifion D^.ofLessee
peridd shall not that
mnl abal^ent however,
LesseebewoJothervTe
ofafigated to pay have
Rent
f J^POfssion and continue for a period equal to what lessee would otherwise have enjoyed under the terms
S f omissions of Lessee. If possession is not delivered within SO days aft- the Commencement
S funded u^er the temis of any Work Letter executed by Parties. Lessee may. at its option, by notice in writing within 10
iSf! this lease. In which event the Parties shall be discharged from ell obligations hereundl-. If such
d^^^ wkhin 120 days after ihe Commencement Date, this lease ^all termmato unless other agreements
dSed^ii^imrW termlnato.am Ifreached between
posseson Lessor
of the and Lessee,
Pmmises is not
(Ration to mcm6 evidence of msumnce (Para^ph $.S), Pendingto delii^
^ requked of suo.h evtoenco.
deliver possession Lesseetoshall
of the Premises be required
Lessee until les files vrith its
of Its
PAtSE 2 OP 13
..,.IZ^
tNltlALS
Of4 Its
u ral^atlons under
Deposit Lessee
this Lease. shell deposit
If Lessee fails towih
payLessor
Rent, upon execution
odwwise hereofunder
Oslaults tea Security Deposit
tels Lease, as may
Lessor security
use,for Lessee's
apply taithful
or retain ell orperfornianoa
any porbon
of said Seajnty Deposit lor tee payment of any amount already due Less-, ter Rents whltte will be due In me future, and/ or to r^mburse or
compensate lessor for any liability, exprase,lora or damage wtelch lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any
pwslt to^theSeradty DeposlL
full^ount Lessee
fequired shalll^iae.
by tels v^min If10the
days after
Base wtten
Rertt requestdudng
Increases therefor
thedeposit
tomi ofmonies with Lessee
this lease, Lessor sufficient
^ali. uponto restore
written said Security
request from
i^r. deport sddrtionai mrales w^th Lessor so that the total amount of the SecuHty Deport sha8 at all fimes beer tee same proportion to the
greased Base Rent as tee irfttlai Sera% Deport Lore to tee totdal Sera Rent Should tee Agreed Use be am^ded to accommodate a material
tteange in tee bu^ftess of Lessee or to accommodate a sublessee or ass^nee. Lessor shall have the right to increase the Sectelty t^oslt to tee
^enl necessary. In Lessor's reasonaWe Judgment to account tor any Incre^ised wear and tear teal the Premises may suffer as a result themoL If a
rteange In control of Lrasee occurs during tels Lease and followtog such change tee financial condteon of Lessee Is, in Lessor's reasonable judgment,
sigmficsnfiy reduced, Lessee shall deposft such additional monies wite Lessor as shall be sufficient to cause the Security Deposit to be at a
ixrrnmerc^ally reasonatHe le^ based on such change In financial condition. Lessor shall rust be required to keep the Security Deposit separate fmrh ite
applied f
by lessor Within
Lessor90shall
daysupon
afterwritten
the expirafion termioalkm
request pro^e Lesseeofwith
thisanLease, Lessorshowing
eccounfing shafi return that portion
how that portion of
ofthe
tee Security
Security Deposit
Depositthat
not was
usednot
or
reujimed was ej^lled. No part of tea Security D^ExssIt shall be considered lo be h^ in trust, to bear interest or to be prepayment for any morfies lo!:
paid by Lessee under tels Lease,
8. Use,
^ 8.1 Use. Lessee shaN use and oixupy tee Premises only for the Agreed Use.or any other legal use whidi Is reason^y comparable
teerelo, tor no other purpose. Lessee shall not use or permit the use of tee l^mlses In a manner that is unlawftd, creates d^nage, vwisto or a
r^sance,or teat distorbs occupants of or(usra damage to netohbCHlng premises or properties. Oteer than .guide, signat and seeing eye dogs. Lessee
anal not keep or allow In tee Pmmiises any pets, animals, brrds^ fish, or r^tiies. Lessor shall not unreai>nably vritehold or delay Its consent to any
^^n request for a modlllcaU<te of the Agm^ Use,so long as tee same wifi not rmpair tee structural Integrity of tee improvements on the Premises or
the mechanical or electrical systems ther^n,^d/or Is not ^IficanUy more burdensome to the Premises. If Lessor etotfts to withhoto consenL lessor
s^i within 7 days after sodv request give vwltton notification of same, which notice shall Include an explanation of Lessor's dajechims to tee diange in
6,2 Hazardous Bubstanoes.
(a) Reportofeie Uses Require Consent The term "Hazardous Substance"* as used in this Lease shall mean any product
substance, or waste wf>ose presence, use, manufactoie, disposal, transp<^tion, or release, elteer by Itself or m combination with other mat^ls
expected to be on tee Pnnise$. is eiteen {!) potenfialiy Injudras to tee public health, safety cr weltere. tee anvlrtsnm^ft ta* the Premises, fil) reguteted
or monitored by any goverrsn^itai authority, or(fii)a basis for potentlaMlabllfty of Lessor to any governmental agency or third party under any apdlca^e
stetete or common law theory. Hazardous Substances ;^iall Inoiude, but not be ilmlted to, hydmcaibons, petrcfieum. gasollrje, artd/or crude oil or any
proteicts, by-products or fraofions thereof. Lessee shell not er^age In any araiv% In or on fine Prenslses which crasfilutes a Reportable Use of
Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee's expense) vMt ail /^ficaye
Requirements, "Repoft^le Use" sh;^ mean (I)tee Installation or use of any ^ve or b^ow gnsund storage tank, 00 tee generation, poases^cm.
storage, use. toansportatton, or disposal of a Hazardous Substan^ that requires a permit ffom. or vth respect to which a report, nofico, registration or
busings pien Is required to be filed vrith, any govemmentoi auteority, end/or (III)tea presence at tee Premises of a Nasardras Substance with re^mct
to which any ^opfical;^ Reqtrimments requires teat a rnstice be given to persons entering or occuj^ng the Premises or neighboring properfies.
Notwithstonding the for^tfing. Lessee may use any ordinary and customary materials reasonabfy required to be used In the normal course of the
Asmed Use. <dfnary office supplies (copier toner, liquid fitoe. etc.) and common househyd cleaning materiys, so lorvg as such use Is in
compilance ysifth all Applicable Requirements, is not a Reportable Use. and does not ejqsose the Premises or neighboring property to any meaningtoi
risk of contamfnaHon or damage or expose Lessor to any liability teerefor. In addlfion. Lessor may condition its consent to any Reportable Use upra
receiving suite addltlraal assurances as rrasonably deems necessary to protect Itself, ttie putelc, the Premises and/or the envimnmeni against
damage. ctmtamlnaUon, fnjury artd/or liability, todudlng. but not fimlted to, tee Instafietlon(and remmrei on or before lerae exyratlon or ienmlnatlon)of
protective modificaUons(sutte as concrete encasements)and/or Increasing the Setairity Deposit.
(b) Duly U> Intoim Lessm*, If Lessee knows, or has reasonable cause to believe, teat a Hazardous Sutjstanoe has come to be
located In, on, under or about the Premises, omtthan as p^8^^ou8ly consented to by Lessor, Lesi^ shall Immediately ^ve wftten notice of such fact
to Lessor, and jfrevlde Lessor wtft> a copy of any report, notice, ctalm or oteer documentafion which It has rancemtog tee presrace of such Hazardous
Subslertce.
(c)lessee Remediation, Lrasee shall not cause or psnnft any Hazardora Substance to be spied or released In, on, under, or
about the Premises (induding through tee plumbing sanitary sewer system)and shall promptly, at Lessee's exoanse, comply vrite all AppTicable
Requirements and take all Investigatory andtor remedial action reasonably recommended, vteather or not formally ordamd or required, tor the cleanup
of any contamination of, and for tee maintenance, security and/or mofw'loring taf tee Premises or nelghboriflg properties, that was caused or materially
contributed to by lessee, or pertaining to or Involving any Hazardous Substance brought onto the Premises during tee term of tels Lease, by or for
Lessee, or any third party
(d)Leraee indemnlficabon. Lessee shafi Ind^nlfy. defend and hold Lessor, its agents, employees, lenders and ground lessor.
If any. harmlras frcre ami agalft arty and aft loss of rente and/or damages, liabilities, judgmente, claims, expenses, penalties, and auomeys* and
consultants* fees arising out of or involving any Hazerdras Substance brought onto tee Premises by w for Lessee, or any third party (prodded,
however, teat Lessee shall have no iiabllUy under this Lease with respetft to undai^round migration of Hazardous Sutjstance under the Premtees
from adjac^ pmpertles not caused or contributed to by Lessee). Lessee's <foligatlons shaH Include, but not be Hm'ited to. tee aftocte of any
contamination or injury to person, property zm" the envfefonmi^,? created or suffered by Lessee, and the cost of Investlgatfon, removal, remediatftm.
restmatlon and/or atreiement and shall survive the eofoireikm or tormlnallon of this Lease. No temilna|}on> cencellsftlon or leieese egreement
entered Into by Lessor end Lessea shall retoaee Lram&e ffmn Ha obligations under this Lease with respect to Nazm'doifs Substencae, unless
specificslty so agreed by Ijsssor In wrldi^ al the time of suite agraeinant.
(^) Leeeor Indrnmnlffcabon. )toept as oteerv^ provHted In paragraph 6.7. Lessor and Its successors and as^gns shall
indemnify, defmid, reimburse and hold Lessee, Its employees and landers, harmless from and against any and all en^rironmental damages, including
the cost of fomedlatton. vteiCh result from Ha^ous Substances which existed m tee Premises prior to Lessee's occupancy or wNch are caused by
the gross rs^llgence or llltol miscoridliot of Lesser, Its agents or emf^OyBes, Lessor's obfigations, as and vteen required by the Appllcali^
Requlremeote,^11 Include, but not be limited to,tee cost of fovestigation. removal, remediation, restoration and/or abatement, and shaH survive tee
exphatem or termination of tete Lease.
(t) Inveshgatione and Remedlahons, Lessor shaH retain tee respotn^billty and pay for any investigatlona or remediation
measures required by governmental entitle ravfng jurisdiction with respect to the ejoslence of Hazatoous Substances on(lhe.J^amlses prior to
Lessee's occupancy, unless surte remedtetem measure Is required as a rasuft of Lessee's use (including "Alterations", as defin^m^regraph 7.3(a)
below)oftee Premises, in whiite event Lessee iiteall be responsible for switte payment Lessee shall cooperate fully to any such-ao^pS^Nra request
PA0B30P13
INITIALS "
INITIALS INITIALS^
for Lessee at or far JftSSif ^matsriais furnished Of aiiagad to have been furnished to or
i^aS 1 rhia ^ secured by any mechanic's or materfaimen's tien agaeist the Premises or any
^ non^sponsfbHify. If Lessee shall contest the valldHy ofofany
commencement anysuch
worklien,
In. on or about
delm ^e f^mises.
or demand, and
then Lessee
mfJkl fu protect jtself. Ussor and the Premises against the same arid shall pay and satls^ any such adverse judgment that
^mJni f enfo^ment theieot If Lessor shall requite. Lessee shall furnish a surety bond In an amoimt equal to 150% of the
S ^ " ^ ^'or,.
7A Ownership: Removal;Surrsn^;and Restoration.
Instellatbns
ms^iiaiyns rnadeiifl^^S^h1h?!m^^ ownership as
mads i)y Less^ shall bs the property of Lessee, but constdered a part of the Premises. herelnallsr
Lessor may. atpmvlded.
any time allelect
Alterations
In wrltkioand Utility
to be the
?!J^ Alterations and Utaity InstaSations, Unless oUierwise instructed per p^agraph T 4(b)hereof all
itm tomi rtf ^lessee of written notice hrom Lessor not earlier than 80 and not later than 30 days prior to the ertd of
S f^Jf .tiff. Lessor may requtre that any or all Lessee Owned Altemtlons or Ubilty Installations be removed by the expiration or tenninadon of
^ removal at any lime of a or any part of any lessee Owned /^toratlons or UtHity Insta^ons made withmrt the
jhA Lesses
f^^^ shdaces toereof broom deanshall
andsurr^der toe Premises
fr^ of debhs, by toe
and In good ExplreUon
opemUng DatecondKkm
onter. or any earlier ternilnaflon
and stato of repair,date, with all
ordinary wf^of
.5S?f''1 detork^radon toat wouy have to prevented by good matotenanca
^ months or less, then Lessee shall surrend- toe Premises in toe same conditkm as
Usse^ remove frorn the Premises any and all Hazardous Substances bmu^ionto the Piamtees by
Haza^us Substonces whltto were deposited via underground migration from areas outolde of toe Pmmiseft)to
f
propeity ofS^clfied
L^see mrioljr^oved
Apdlcable on
Requtr^ents.
or before toeTrade fixtures
Expratbn Dateshall remain
or any earSerthetemiinatlon
property ofdale
Le^e
shalland shall betoremoved
be deemed by Lessee,
have been ^ybypersonal
abandoned Lessee
arto sfhay be myosed of or r^aned by Lessor as Lessor may desire. The toilure by Lessee to ^mely vacato toe Premises puisuantto tots Paraoraph
7.4Cc)without
6.
toe express whiten consent of Lessor shall constouta a holdover under toe ivovlsions of Paragraph 28 below
Insurance;indemnity.
8^1 payment ofPifemlum Increases.
(a)Lessee shall pay to Lessor any Insur^ce cost Incmase flnsurance Cost Increase*^)occurring durtog toe temi of this Lease
insuran^ Cost .ncrease js dohn^ as any increase In toe actual cost of toe insurance required under Paragraph 8.2{b). 8Ja)and 8.3(b), over and
abo\ toe^se Premium as h^lnaft^ defined calculated on an annual basis. Insurance Cost Increasse shall Include not be limited to incmases
i^ulltog from the r^ture of Ussee's occupancy, any act or omis^n of Lessee, requlremems of toe holder of mortgage or deed of trust covedng the
Premises,Inrae^ed \mkiatK:m of toe Pmmlses andfora premium rate increase.TTie parlies are encoumged to fillin the Base Premium to paragraph 1.8
wto a rea^nalje prem^m f^ the Required Insurance based on the Agreed Use of toe Premises. If toe parties fall to Insert a dollar amount to
Par^rapn 1.8. then th^s 8^e Premium shall be toe lowest annual premium reasonably obtainable tor the P^uir^ Insurance as of the commencement
of the Original T^m for the Agreed Use of toe Premises. In no event, however, sha8 Lessee be responsible for any porkon of the Increase In toe
premium cost attributable to liability Insurance carded by Lessor undm^ Paragraph 8.2(b)In excess of$2.<K)0,000 per occurrence.
(b)Lessee sitoll pay any such Insurance Cost Incresse to Lessor vrftoto 30 days after recer|ft by Lessee of a coj^ of toe premtom
statement or other reasonable eviderjce of toe amount due. If the Insurance pc^cies malntetoed hereunder cover otfrer proper^ besides the Premises,
Les^r sha^l also dellverto Lessee a statem^t of toe amount of such insurance Coat Inor^se altot>utabie only m toe Premises showing to reasonable
detail toe mann^to which such amount was ownputed. Premiums for policy periods commendng i:toor to,or extending beyond the term of this Lease,
shall be pioraied to correspond to toe term of this Lease,
8.2 Uabltlty tn^fahce.
(a)Cairlad by Lessee, Lessee ^all obtato and keep in force a Commercial General Uability policy of insurance protecting Lessee
and Lessor as an additional tosirred gainst claims for bodily injury, personal Injury and prtrperty damage based upon or adsing cart of the ovwtsrshfp,
use, occupancy or mairrtenance of the Premises and ell areas appuftenant toereto. Such insurance shall be on an occurrence basis provldtog stogie
limit coverage to an ammjnt notJess than $1,000,000 per occurrence with an anrtual aggregate of not less than $2,000,000. Lessee shall add Lessor as
endorsement at least as broad as toe Insurance S^lce Oiganlzatx^'s "AddlSonal insured-Msnagem or lessons
of Premises'' Endarssment The pokey shall not contain any totra-insur^l exctosions as between insured persons or organfeattons, but sha8 include
^verage for llabHlty assumed under this Lease as an "Insured contract" f<^ toe performance of lessee's indemnity obligations under this Lease, 'Itie
iimito of s^d Insurance shall not however, Isnit toe liabSUy of Lessee nor relieve Less^ of any obligaticm her^nder. Lessee ^all proidde an
endorsement on its liablHiy pol!cy(ie8) vitoich provides that Its tosurance ^.ali t phmary to and ntft coninbtftory with any similar insurance carried by
Lessor, w^se Insurance ^aH be considered excess tosurance only.
(b> Carried by Lesem-. Lessor shaO maintain iiatxSly tosurance as described to Psragraph 8.2(a), to addition to. and not In lieu of,
toe Insurance requimd to be metotatoed by Lessee. Lessee shall not be named as an addtoonal insured toerein,
83 Prqierty fpfeurance- SuHdlng. Impravementa and Rental Value,
(a)Building and Improvements. The insuring Patoy shall oi^in and keep in force a policy or polled in toe name of Lessor, with
loss payable to Lessor,any grouhtMess^ and to any Lender Insuring loas or damage to the Premises The amount of such Insurance shsH be equal to
the full tosuiable feplacement c^st of toe Piremlees, as the sine shall exist from time to time, or toe amount required by any Lender, but to no event
more toan toe commercially reasonable and available insurabie value thereof. Lessee Owned Alterations and Utility Installa^ns. Trade Flxttu^, and
lessee's pffirsor^l pmp^^afi be Insured by Lessee not by lessor. If the coverage Is available and commercially appropriate, suito jpollc^ or policies
sh^ insure against all rtsks Of direct physical loss or damage(except toe perils of flood and/or earthquake unless required fay a Lender or included to
toe Base Presnium), Including coverage tor detols removal arid the enforcement of any Appllcai:^ Ri^ulrents requidng the upgradtog, demolffion.
reconsrrui^ or r^lacement of any portioh of the Premises as the result of a covered loss. Said fssiicy or policies sha ^so ccmtato an agreed
valuatten provision to lieu of any coinsurance dause, waiver of submgatimi, and toflaticto gu^d j^setection causing an imaease in toe annual prope%
insurance cever^ amount by a factor of rvot less toan toe adjusted U.S. Department of Labor Crmsumer Pike Index for All Urban Crmsumem tor toe
City nearest to where the Premises are located, ifsuch insurance coverage has a deductible clause, toe deducdbfe amount shall not exceed $5.0(K)per
occurrence,end Lessee ehatl be liable for such deductible emount In the event of an Insured Loss.
(b)Rentol Value, The Insuring Party shaS oblato arrd kes^ to torce a policy or policies to the name of Lessor %1to loss payable to
Lessor and any Lender, insuring the loss of the fiiil Rent for one year with art extended p^d of Indemnity for an additional 180 days("Rental Value
Said insuranca shafi contain an agreed valuadon provision to lieu of any coirvsurarvce dause, and the amount of coverage shafi tre
adjusted annitolly to reliect toe projected Rent otherwise payat?le by Lessee, tor the next 12 month period, lessee shall be itol:te fd^ any dedorftlbJe
amount in toe event of surto loss.
(c)Artjaoenf Premises. If toe Premises are part of a larger fctullding. or of a group of buddings owned by Lessor whkto are dijacent
to the Premises, toe Lessee shall pay for any Increase In the premiums for the property tosurance of sudv building or bulidtogs If said Increase Is
caused by Lessee's acts, omissions, use or ocdipancy of the Premises.
8.4 Lessee'^ Prr^rty; Business fntemupiltm Insurance; Wotfter*s Compensadon irteurartce.
(a)Pfr^erty Damage, lessee shafl citato and maintain Insurance coverage on all of Lessee's personal property. Trade Fixtures,
and Lessee Owned Alt^tions and Utifity Installations, Sudh insurance shall t>e full replacement cost average wito a deductlt^e of rxft to exceed
$1.W per occurrence. The proceeds from any such Insumnce shafl be used by Lessee tor the r^iacemenl of personal property, Trade Foduras and
Leesee Owned AHerations and UHllly insteJIalione.
(b) Business intenruption. Lessee shall obtain and maintain loss of Income and eidra expense tosurance In amounto as vsdil
reimburse lessee for direct or Indirect loes of earnings attributable to all perils commonly toured agalnat by prudent lessees to the business of Lessee
Of atotoutabto to prevention of a<x^ss to to Praises s a remjil of stnto perils.
(c)WorHer'e DtnopeneaUon Insurance, Lessee shall obtain and matotato Worker's Gompensadon linsurance in such amount as
may be required by Applicable Requlremems Such policy shall include a 'Waiver of SubrogeUcm' endorsement. Lessee shall prtwlde Lessor with a
ct^y ofsuch endorsemervt along wnto to certificate of Insurance or copy of the policy require by paragraph 8,S.
(d)No Rapreaantatlon of Adequato Covmage. Lessor mak^s no representadon toat toe limits or forms of insurance
J herein are adequate to cover lessee's property, business operations orobligations under this Lease.
PAGE S OF 13
INITIAtB
PAGE 6 OF 13
rn I .miS payment of Rent or any Security Deposit required to be made by lessee hereunder, whetoer
^ re^able evidence
conbnuesoffor
insurance
a j^rrodorof
surety bond, ordays
3 business to fuiflll any oblij^ftfon
following urufor tols
wrfrt^ notice Lease vi^ch
to Lessee, tm
ACCEPTANCE BY LESSOR OF A PARTIS PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A VyAlVFR OF ANY AF
LESSOR'S RIGHTS.INCLUDING LESSOR'S RIGHT TO RECOVER ^SSE^IGN OF tSP^ CONSTITUTE A WAIVER OF ANY OF
....wv ^ ^ Premises or the commissiwr of waste, act or a<as
^ waste,
Lessee In toe event that Lessee commits Premises by Lessee,
a nuisance or anwhere
lil^alsurto acbons
activity ctrBnue
a second timeforthen,
a period ot3 business
the Lessm- days
may eled to
beat sudi condud as ia non-curable Breach rather toan a Oefeult ywwi
/ri> r^dssfon^-5JP Less^ to provide
of an unauthonzed <l) reasonable
assignment wrttten <iv)
or subletUng. evidence of cr^pllance
an Estoppel with or
Gerttete Applicable
ilnanclalReqtBrements, (11)atherequested
stat^ents. (v) sendee
guaranty and/or Guarantor,fvB) any document requested tmtSer Paragraph 42. (vih) material safebr rfoia
^
any surto folluie conunuas a pedod
tor <focumentaM<m
of 10 daysor tofoiweifon
fi^iowlng writtenwhiito Lascarmay
noikje to lessee.reasonably require of Lessee under toe toims of this Lease where
iw ,u ^ 13.ito),(b).(c)or(d),^ve.
to subpamgraphs OfPfOi^Slons
wheie sudiofDefoull
this Lease, or of the
continues for ariilesadtspted underafteJ^tt^
pertod of 30 days parasrajto
Lessee's DefouB is such that more than 30 days are reasonably required for its cure, then It shall not be
deemed to be a Bre^hiaesse commences Sutto ciae wtoto said 30 day period and themefter diligently prosecutes such cure to compleUon.
,d>. t of any of toe foifoviilng events: (i) the making of any general arrangement or assignment for toe benefit of
S SS Isi dismissed wUNn 60
toe same Aft days):
^wl?2?
(IB)the appointment of a ^
trusteesuccessor
or receiverslalute
to takethereto (unless,
possession to toe mise ofallaofpetition
of substantially filedassets
lessee's againstlocated
Lessee,
at
Lease, wtoere possession is not restored to Lessee within 30 days; or(Iv)the attachment,executfon or other
Ia ?" sobstaniially all of Lessees assets located at the Premises or of Lessee's interest to this lease, toere such seizure is nd disdiarped
1^^ dlsttovery that any finari<^al statement ofLessee or of any Guarantor given to Lessor was materially false.
* .1 .. 1.-..,. W'^^PS'^^^rtnance of Lessee's odigatlons under tots Lease Is guaranteed: (I)the death of a Guarenfor.00 toe termination of a
S!t. S."T *"??'Z t ' Buafeftfaf. a Guawilw's bacomlng inajteW or tt
? iS guaranty, or(v)a Guarantrw's breach of its guaranty obBgdion on an amicjpait*y
i' w li toe thenfoBure.
^upled ^xisfirtgeHthto 60 days
resources offoiloviing written or
Lessee, equals nofice of any
exceeds toeeudi e^mnlfinandal
combined to provideresources
written alternative
of Lossesassur^ce or security,
and the Guarantors vitoich,
that when
existed at
ine time or execution of this Lease-
S!lS%wI?S? r3Uired by Pamgraph 13.1 and the unlawful detainer statute shall run concurtentiy. and the failwe of lessee to cum toe
^ iu!fprovided for In this
remedies L? ,Lease and/or
such by
grace
saidperiods
statute, shall constitute both an unlawful detainer and a Breach of this lease entiaing
^ Lessor to
tu the
uw
(b) Continue the Lease and Lessee's right to possession and lecovwr toe Rent as it becomes due, to whiSv4^itt'*^ss^ may
Q-
INITIALS
PAGE d OF 13
operaHon ofttis pera^^^te Lessor of rent orthe are erfthe Breach Wch IrriBaled the
at the time rd surto adeiriance ^ pmvisions of this paragrr^ unless specteaily so stated m wlBng by Lessor
rnmi^mmEm
rtoWhste^ly any^^sUte^to,he'^^tS^kT.!^?,'^r^r^e"^ teri
totemsi fri^'L L due lessor hereunder^ other than late charges, not mceiv&i by Lessor, vs^en due shall beer
an obtoauon rt-oiriri?in'ii^i^.?.!f!'.: deemed in breach of this Lease utriess Lessor fails vdlhin a reasonable time to perform
daisenay puisLdto comptelirMT^ I fammeniad wifriin sudi 30 day period and toerealter
after receipt ofsakt 1"^ f^he'Lessor nor Lender cures said bleach nrithln 30 days
this tease IS not temrinated by reason of the C!ondem.llon, Lessershall repair any^damage
to. drekerage Fees..
Gdmmfsslon, to addition to toe payments owed pursuant to Parag^ph 1.9 above. Lessor agrees thai- fa^ if Lessee
payB,pfreteaSp,^s^<rKs^r,ra:^ririrrSeK'^rsS^^
t^ioatlon h^eundar if tmnsfofeo of Lessor's interest to this Lease shall be deemed to have assumed Lessors
Rent mpras^ fair ar^ r^sonabte compensation for toe addHtonal dsk/costs tost Lessor wHl Incur bv mason of LessaS ferim^nmJwiiSf
T'oftmy
piovido the Est^^(^rtoeto nor^vent toe exercise ?^of toe other rights and fRnedies
oae^^turofsm^^^^
granted heteunder.
wtmptn ftSy3 iSJ? ^ano, rennance,
potentiei lenderororsellpurchaser
the Premises, or anyby
designated part thereof.
Lessor Lessee
suito ^md statements
financial an Guamntom
as shell
may within 10 devs
be masonSiv
to the
-fnises.or.lfiWateesubteeae.ofttteLesaee'eM """""""
this
PAGE 9 OF 10
INITIALS
Estate AssMWion. "*'' - S'''''. any, shall esch edute a guaranty to toa frjrm most rntty published by ihe AIR Commsrelsl Real
exscudonSie Suere^yJniZ tS'KreSTSff^SSr^r *ir <s) evidence of the
^s,^tre^-ja^ed'S';^L^Lei^a?rhr<crs:^2dis
Of or reneur m,y K f T s^ f or reduce the tsm,
ofLessor,Jc),heHgm.^^^^rtgm^g^
be assigtwd or exarcised by anyone otoer than said odoltMl Lajriifri' end nnSlSfa^.?-^ Lease is personal to toe rtogtnal Lasses, and cannot
requested by Lessor w^l^s^ eenllyhg that Lesss. tie no Intention of "" '""" '' "
exercised unless the "^ "'"* to tted or renew this Lease, a later OpUon cannot be
39.4 Effect of Defeult on Options.
eonbnutog until ssa'asS^ ^rtogttre * thegivirrg of any notice of Default and
durtog the ttote Lessee Is to Br^rdZ f?-^ "T"'^toer mrtice thereof Is givefi Lessee}. (81)
exendse an Option tJsSSS prevteM ^ '^" "' hy reason of Lesses's Inai^ty to
ate such exercise Lessee's due end Mmslyexertdse of the Opton. if,
P PA FADE 11 OF 13
INITIALS
S-fa and """*to""""e > tea. ft> gtmi. iout the consani or jolmter of aidi aasemems
undor the provlsiona hsrerf.?te PaifeL^fSin^th^ "^ " to any amount or sum o( money to be paid one Party the other
and such payment shall notta regarded as a voluntaiy payment a^ltS^tTSiJ^i^onSlra^nf^ m b "totoat"
sudfi su}t>. !f it shall bft ^hidrMH th-ai f^rtra ttiy%o * ur 11 It survive the ng^t Oh the pert of sold Party to InsMuta suHforrscoverv of
entitled to to pay sikS, sum or any wrt thereof, said Partite
T' ^ ^
iHUllfpla PaitJas; ExsculSon. to have walvedTffiM^SA pSilf -to "Inihate su for ate recover of mans paid
executing thfoLeasiltrehatfot^SlS^tea^^S^n'ki^'^ "totoiership, or similar entity, each Individual
achFfor,ystxrtl,30daim^rreo4dLerto.heoC?^S^o?::S^SSStthdr^'^'^^^
severally llaUa hereundar. It Is agra^^tormTmetifoe "' Pwso" or aniity shall be Jointly and
document anciSary thereto and DM all of framed ^ emmoemd to ^ute any ammidment to this Lease, or other
document. > ana o>a an or the named Leseees, and Lessor may rely on the same as if all of the named Lessees had axecuted such
ttwther Shan consult one aiSfoarme'S^m^'' ^ to"teparts. each of htch shall be deemms an oi^inal and an of vfoich
"^toad previsions of this tease and typevmttao or handwritten prevlslohs she. he comreBed by foa
do wt mate% l!^?2iSS SStrfJZ*""' to interest at the lime of the modlflcatioh. As long as they
^bty ^ by a Le;^ ,n
srLr=;s5s?ss.T"ss,riK
IT of THm LEASE 0 THE TTtANSACTON TO WHICH
1- SK /MDV1C OF COUhlSEt AB TO tllE LgOAL AND TAX CON^QUfiNCES Of tlllS LEASEe
2L RETAIN Afl>ROPRlATE CONSULTANTS TO REVIEW AND INVESTJtSATE THE CONDITION OF THE PREMtSES SAID lNVisTiiTinM
the roof and OPERATINtS SYSTEMS. AND THE SUITABIUTY OF THE IHTEMI8E8 FOR
^Sd't^CO^LV C-'WNIA.
SE REVISED TO COWPLY WITH THE LAWS OF THE STATE IN WHICH TIM RRSIjliSES CERTAIN PROVISIONS OF 1HE LEASE MAY NEED TO
IS LOCATEO.
The partlds hp! ! eKeml at Ss ptac and cm Iha datas spad^ abovei ^alr
dialr respadi
respadive (auires. I
E*ei5utd at;
Executed M:
On:
JL
By LESSOR: 7
ByLESSlE:
Mary Ellen Horraw Living Tttist .m^ Research and ^lopmmnt
ft M i>CC6 hi/
Name Prini
Name
Name Pnnted:
Name Prlniad
Tltla:
Ackfreas:
Aodm!
Thtephone-g^) Teia^mone: ( )
Facsimile: {_ / Facsimile: ( )
Ema8.:
Ema9:
Email;
PAGE 12 OF 13
1/y.s
BROKER:
BROKER;
;^i:v354 Cornme.rcxeX Reel Services
DAUH Commercial Real Estate Seri^-!s
(|Y^ FARE 13 OF 13
INiTiALS
Oiend envTfZ nfiTiT'' TT Giiafsray. <b) demand of payment, pressnlaiion and protest (c) all rifltil to assert or
Santor
mZZ nZfrLZ ^ ZT
ZZ "S ? 2 'o '0 d"V
proceedsecufity
a^instdeposit
toe LesSe anfX
Of other seLrity il
(g> any right of sut^S toaflifttors'tJalrha^^^ ra,
Lease andlhfs'eu^nt,'*"''''' '"^htadhess of lessee to Guaramois 10 the ofaiigations ovsed to Lessor umf- the
obligalionsterml'Se""" Quaisintor expressly agrees that recourse may be had against his or her separate pttHJerty tor all of toe
execute ana deliver estoppel stetsments and fioanciai statements, as therein prowded shall bo
a dlTauru"rSr toe lSS
intomst inTl!! ""Z" ^ Lessor's suecessots and assigns. So long as Lessor's
Snm^ifanZh^vZ" ^sranTasX.'" ^
Th tsiTO Less&e refers to and means fiia Lessee named in Lease and also Leaser's successors and assigns,
aianed by tto Le^or " '' ' ^ Lessor can be waived, rw can toe Guarantors bo released from their obilgatlons exoepl in wMling
am Incxiert Trt'ihZ "^9 puMnty shaJI be iritied in a stale court of competent jurisditHon In the county in vtolch the leased premises
T This Guaranty shall be governed by the laws of the State in which the leased
S Iwe. purposes of any rules regarding conlSias of isw the parties shall be treatf as it they were all residents or domiciles of
in the^ent any aciion fog brought by said Lessbf against GuaiBntors foereunder to ontbrce the obiiqation of Guatantors hermjndar thtt
such action shaN pay to prevising pany merem a reasonable atttSTiey's fee. The attorney's fee awani shall not be comouted in
accordance vwth any court fee sdieduie. but shall be such as to Full relmbufsb all stiomey's fees masonabfy int^utred.
If any Guarantor Is a corporation, partnershH), or iBnitod fiabi% company, each individual eygcuting this Guajantv on said ntltv's bsr9lf
r^asentsand warrantsthathoorsheisduiygutl^eptop^utfithlsGuafantruhDehaifofsuchenmy.
If this Form has been Sited In, It has been preparet^rsilhmission to your aSon fowhls approval. No rapressntatton or
^iker or Its agents or empioysas as to
thSi^Ove^
Executed at: GoKL 'Pffwc
On: """
Address. '
A ARBfTRATION OF DlSWrSS;
induding, buUiol 12
under Paragraph llmi!lo'SjrMtef"SaUriB
of this Lease to "" claims, disputes
<" or disagrsemfflits atSsinainterest
Lessee's underinthistheLease,
LeaVe
Mive any and all tights to the conitaty. The Parties agree to at al! iLes OTiduH f La'" irrevocably
terms hereof arrd that any attempt to flircutnvBnt the terms of fh-'s Arhilratinn afif! comptele and timely accordance h the
vrftetsoever. rcomveni trie terms of ,$ Arbitration Agreemeoi shall Ire awolutely nut! and void and of no fores or eed
B. DISPUTES EXCLUDED FROM ARBiTRATIOfj-
enforcement or determination of rights undi this fS iJlmil'J f,S.t^ Z*"? "'h' at,
aliegafions of tortious acUon, and seek Uie award of punitive OT exomSTrtai^^S?!"^ matters of fraud walful rmsoonduot. bad faith or any other
rights pursuant to applicable law or fbi riohls or rBmadias imorf h 1 <*ma88s, 3, Claims relating to (a) Lessor's exercise of any unlaiwfui defainsr
to the Premises, all'sSSiSfbe reSS^ L s2Sh Lessees nght of possessiS
appeal pursuant to applicable law 4, Any claim or dispute tha' is vssthin S Ir'ml shall be subject to
Paragraph aSoflNs Lease. y eaii. or oispute tiw. s sMthin the jurisdiction of the Small Claims Court and S. Ail claims artsing under
C. APPOINTMENT OF AN ARBITiRATOR-
(loTdays after eittiwp8rty?;fidsft8ii^tlcftte shall be initiated by the Parties, or either of them, within ten
Judas {or sf thsre are iwo. th& one selected by JAMS)w!l serve as the Arbitrator if Ti i^^nai"ing
the Arbitrator shall be setectwl In accordant with said oraanlyatkwilte th^J m Sjf , " . o^anfeato".
reason, the party inteino arbilratton sftelt appiy ,o the apprtipriate Court for the appoiiranJ o,^tSZ^<Z:tS!iZfT^AZ?T
D !BtTRAT!ON PROCEDURE:
exchange of
sfeitSll^iPsis^
ej^iaining the factual and leoai basis m the dedsiDn ^in ni th ^ 3nd accompanied by, a 'vwltten statement of deciisim
=3=2:
"
PAGE 1 OF 2
.Sta*S are eften moflBd to mesJ changhig nstoiirarnento oflow anti Muo^iwods. Wways%w or call to make sure <mu
arto.l.to8toemotocMmmttorm:im^^mtolR^E^a^^
Telephone Np, SST-8T77, l=a* Ne.t
Qy PAGE a OF2
INITIALS ^
mm.mcmmnmM.mm,estate Pmmmm-mm
ADDENDUM
Date; March 25, 201t
Pamgraf^ 50"55
In Sha event of any conflict beiween the provisions of this Addendum and the printed provisions of the Lease, this Addendum shall
control,
53. Signage.
Lessee, at it's sole cost and expense, shall have the right to install exterior building signage, and if so installed
shall remove such signage prior to the expiration of the Lease. Ail sigtiage shall be subject to Lessor's prior
written approval and shall conform to the City of Huntington Beach signags code,
PM5E10F1
SDAUM Uniform Disclosure and ^ .nitation of UaNiit^ Fofm
r^roperty Address: 5542 Research Dftve, HuaHngton Beach, CA agree to Indemnify and hold DAUM. Its prtncipals, shareholders,
92649
omcern, agents and employees harmless frcm any liability which
may arisefmm the preparation ofthis or any other document relating
WiSPORSS CLARffiBS AND UMiTS WB DiSDLOSURBS THAT to mis transaction.
HAm BEEN liM/TS BROHm*B UABOJty mTH
nBSPECT m smn mcLosuREs, and places vAmous All parties ac^rtowledge ha^ng been advised to have this and all
camsAND mSPONSmamES upon SELLERAMSSmANO transaction documents af^roved by legal counsel and financial
BWrnrnMSBEB. PLEASE READ if CARBPULLY. counsel prior lo execution and delivery.
I Notice to Owners, Buyers end Tenants Reoellria This transaction Is entered into w^h tile understanding that
Haxardoim Substances and Underground Storage Tanlcs: Buyer/lessee has Independentiy verified to its sati^^on the
Gomprehensive Federal, stale and local regulaSons have rscen% foitowing Items; Ml measurements, utilities (including power,
been enacted to control the use, storage, handling, dean up, plumbing, heating and air-conditioning systems), minimum
removal and disposal of hazardous and toxic wastes and dearance, loading doorts) dimensions, truck acoesa, tire sprinkier
substances. Extensive legislation has also been SR^pled with system capacity (if any), restrooms. City codes including zonirtg.
regard to ynderground storage tanks. As real estate licensees, we setbacks, occupancy permits, hazardous material and waste
are not experts In die area of hazardous substances and we inspection,and ability to conduct its intended use on the premises.
encoomge you to consult wdth your legal counsel with respect to your
rights and liabilities with ragard to hazardous substances laws and The llerr^ setforth above shall not be considered as an exhau^ve
regulations and to obtain technlt^l advtice with regard to the use. list ofitems, birtexamples ofitems BuyerCessee should Investigate,
stores, handling, clean-up, removal or disposal of hazardous
^bstancesfrom professionals,sudi as a civil engineer geok^iM or Any Irdbmnation provided by Broker has tjeen obtained from sources
other persons experience in these matters to advise you de^ed rellattie, vyhile Bix^er does rwt doubt its accuracy, Broker
concerning the property. We also encsourage you to review the past has rrol verified it. assumes no responsibility and makes no
uses of the prop^, which may proWde information as to the guarantee, warranty or representation regarding It. It is
BuyeKs/lessse's re^ondbljity to independently confirm its
on the property. accuracy and completeness, Buyer/Lessee hereby indemnifies and
holds harmless Broker named in this transaction, its principals,
DAUM, hereinafter cailed "Broker, will disclose any knowledge it shan^olders, officers, agents and employees from the follovwng:
actualty possesses with respect to the exi^errce of hazardous My daim for perstial injury, merdiandl^ or property damage or
subsfonces or underground storage tanks on (he property. Broker loss of ^lue arising frin or related to physical ccmdrtion of the
has not made any investigations or obtained reports reganding the property, induding, vwthout limitatidi, soti, mof or strudural
property, uniess so indicated in a separate document ^gned by coridition, any claim,dispute or action In connection with completion
Brdter, Broker makes no rep-esentation or warranty mgardlr^ the of work or repairs to the premii^, any expense induding
exisfence or non-existence of hazardous substances or reasonable attorney fees and costs suffered in connection with any
underground storage tanks on the pmperty. of the above matters.
With regaro to the sale of real property, recently enacted California IV. Credit and Rnanclel Infoifmetion: Broker has provided
Heaitii and Safety Code Section 2SSS9.7 provides that any owner of Selleiri-essor vwth credit Infonmation odained from Buyer/Lessee,
non-residential real pn3perty vriio knows, or has reasoneble cause vyhich Broker has not verified and does not guarantee. Seiler/Lessor
to betieve, that any reiease of hazardous substances has come to acknowledges tirat Broker does not guarantee either payment
be located on or beneath real property,shall, prior to the sale of real Buyer*s4.88seo*s perf<mance of tiie tenns of the purchaseriease
property,give written notice of that condition to the buyer of the real agreement SelierieCessofs execution of this doojment is based
property. Failure of the owner to provide vwrtten notice when strictly on Sdlefs/Lessor's independent v^rilkatkm of
required shall sut^ect the ovmer to actual damages and oti^ BuyefarLessee's credit-worthiness and Seller/Lessor holds Broker
remedies provided by the few. In additkm. vhere the owner has 5 default
actual krxM^edge of tiie presence of any hazardous ^bslance and
kno\Mngly and vrilllulllyfoils to provide vwltien rK>llce to the buyer,the NOTE: If the property covered by this Uniform Dlsdosum and
owner Is liable for a civil penalty not to exceed 95,000 for each Umltation ofliability Form is ovmed Jdntly or by a corporation,^ch
separate violation. individjal dgning represents and wanrants that he/she Is aufoorized
lo execute and deliver this documoot and to bind such other owners
With regard to leases of real property. Section 26359.7 of the or corporation having any Interest in the property,
Caiifomia Health and Safety Code provides that any lessee of real
property who knows, or has reasonable cause to believe, that any DAUM makes no representation or warranty regartting the status of
release of hazardous subsfonces has come to be bcaled on or The Property with regard to the items covered In this Uniform
beneath the real pmperiy shati, upon discovery by the lessee of foe Disclosure arsd Umttatlon of Liability Form.
presence or suspected presence ofa hazardous substance release,
give notice ofthat condition to foe owner offoe real property. Failure
of the lessee to pmvide written notice as requined to the owner shall
APPR0\,0)ls ;^Sfedavof 2oM
make foe lease voldai^e at the discretion of foe owner. The Health DAUM ennc^
and Safety Code provides that Iffoe lessee has a^ual knovrtei^e of
the presence of any hazardous sub^nce release and knowingty or
willfully fails fo pmvide wrttien notice as required to foe owner,the
lessee is liable for a civil penalty not to exceed $5,000 for each
violation.
arautllialttsthamoslamantfOTO. WC^martialRaatEatataAaswiadon.
I""<>SlNBmndWvd,Sutem3tattdala.CaS
iayd write or <ii to
Ter^^hona No> {213)tSd7>iam. Fax Nlo:{213)687*8Sies
1/ FtftOE 3 OF 3
lTIALS
INITIALS
2314 - AIR COMitfjEROAL RgAL SSTATE ASSOCIAHOR
m-i-omm
OlSCLOSyRE!%QAROtNG
REAL ESTATE AGENCY RELATIONSHIP
(Asifequfired bylh Clv Code)
fe^iate ^onl regefdlrtg a reeloetate ImnsacUon,j^oushouMfrem the outsM onderstarvd vsbat type of
egoftcyrela^onshlpormpi^eentetlopyouWshtOhayewith^^^^ oorsiaria vwteuype of
^ ^ ^EMt(("SellW**Jfidudes both a vendor end a
Setter acte as(hB asent te the Setter enty,A Seltefs BBit or a SBb^ent ef that asenl has the
To A ^uda^ dui^ of utmost care, mtesHty, honesty and loyalty In iteallngs m Seller, To the Buyer and the Seller
te) Diiiganc exerdse of masonabte skill and care in perfoofianca dulfes
<b) A duty of hon^and ferddaiins and good faith.
Iriihte matertally alfachng the value or desihsbltity of 18 property ttsat m not knovwi to,or
Obtained mm the^
oSier rmrty thaidoes not involve Pes. An agent
the affirmaUve is notsetob^ated
duties to revral te elBter party any eonfidenttrt tntermaSon
forth above.
. ,,, ^^YS'^*SA<3eNTfBuysf''lrteladesbpdiapuroh8seraftda}fiee).
HS ^1 ^ agentforthe Suyer only. In these situalk^, die agent Is notihe S^r's agent,&vm
^ Ser. An agent aottng oniy lor a
To the Bu^r A fidudaiy duhr of utmost cam,integnty, honesty and loy;^ty in dealings with the Buyer. To die Buyer and foe Seller:
(a) Diligent exaioise of reasonehle sidll and oars in perfofmarsce of the agent's duties
<b) A duty of honest end fair dealing arid good faith.
^^of,
vififom the dlllgant addition and observaaoi wnt
foe inaterialty
pat^es alfecBng the value or desiiaiatily ofthe ptoprsly that am not Irnown to. w
'0 either party any ojnnaonaai Inlbrmatot olrtalned ISt)s the other party Biat does not tevolue the efllnnaSvB
^ AOENT ftEPSENT}N<S BOTH SELLER AND aDTER
tn
in a transaciloa bm only *=es- een be the agent of both S^aml the Buyer
In a dual agency stfoatbn,thefoe knovdedge
agent has the end consent
following Of both the
affinnatlve Selfar and
ot^^ations foe Buy-,
to both the Seder and foe 8uy^.
;?I Integrity, honesty and loyalty in foe dealings with elfoer the Selier offoe BUy^.
(b)Other duties to the Seilar and foe Buyer as staled above In their respecSve secdons.
^
foat foe Se^wiH ^^
accr^t a rmce less than "'I'price
the iisMng ""*''*' I" Buyer
or that the <P8iMIlpermtsslon
pay a priceofgreater
tha iBspectlvB
thsri foeparty,
pricedlsdose
offered. to th oSter imy
f <io not rdieve a Seller or Buyer tai foe responsibllliy to protect his or her own
k iequafely e)g>mss your undemfentdng of foe transaction. A real estate
5. qualified to advise aboutyou
transacdon realmay
estate, If legal
receive r^-tax
more thanadvice Is desired,form,
one disctosure consult a competent
depending upon professfonai.
foe number of agents assisdng in
foe bwisa^w.The law requires each agent with whom you have more th^ a casual relafion^ip to preset you with this disctosum Vou
^uld s^ntenfe eadi time It Is pre^il^ to you,con^eiing foe r^tbnshlp between you and the real estate agent in your specific
focfu^alfoH^islone offiedlons aSTd.lAto aomSA,inclusive,offoe ClxHl Code tfotfo on pego
Lrrywtw
Sellei^^^r / 7 ^
THIS FORM HAS BEEN PREPARED BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION. NO REPRESENTATION IS
MADE AS TO THE LEOAl VALIDfTY OR ADEQUACY OF THIS FORM FOR ANY SPECIFIC TRANSACDC^.
PLEASE SEEK LEGAL COUNSEL AS TO THE APPROPRIATENESS OF THIS FORM,
PAeiOF3
iNmAis
specified m ^
Sst^on 2079.10, and.except as agents shallinprovide
provided toe seller
subdlviston and buyer
(c). shall obtaininaasigned
reai property transactionof
acknowledgement with a copy
receipt of the
from thatdisclositfe fotm
seller or buyer
axci^t as provid^ in this section or Section 2079,16,asfollows:(a)The listing agent,if any.shall pravlde the dlscfosum form to toe sdler prk^-to
snt^g into toe iisfing agrssmftot,(b)The selling agent shall pmvida the disciosure form to toe saW as isoon as pmcfic^ie pnw to pmsenttoa toe
{c)WlwefT
theoffer to ag^l
selling purchase,
doesunless toeoneefilng
not deal agent jM'eviously
a face^to^face ims^ded
basis veto the selfer
the seilar, vs^th a oopy
toe disdosure fmmof prepared
the disclosure
by toefomi pursuant
saillr^ agenttomay
subdiviskm (a) to
befuml^ed
^selfef(^d ^now^gement of receipt obtained for toe esiling agent inn toe selfer) by the liatii^ agent or toe selng agent may defiv- the
disdoi^re by c^tfij mall address^ to toe at his or her la^ known addims,towtoidh case no signed admowfedgmnent of receipt is
reqirif^,(d)^e selling agent shall provide the disdosure form to the buyer es soon as pracUcable prior to execution of toe buyer's offer to purchase,
except toat If toe offer to purchase is not pmpared by the selling agent,toe sdfing agent shall present the disctesure It^m te toe buyer not feter toan
the next business day after toe seifing agent receives the offer to purd^ase frdn the buyer.
2079,1$ ^ In any ckcumstance in which toe seller or buyer refuses to dgn an acknowledgementof recefot pursuant to Sedion 2079.14. the agent,or
associate licensee acting for an agent,shall set forth,s^n.and date a written rfeclarafitm Of toe facts of toe t^^i.
2079,10 Reproduced on Page 1 of this fomr,
201^,17 (a)As soon as practicabfe,the selling agent shall disdose to toe buyer and ^iler whether the sdltog agent is acfing in toe real property
excfodvety as toe buyer's agent, exclusively es toe sslfer's agent, or as a dual agent repres^ming boto toe bi^er and toe seHer. This
rafion8hip shall be o^nfinned in the contract to purttoase and s^ real property mr in a separate wrifing exeoited or aclmowfedged by toe seller,toe
l^r,and toe selling agent prior to or coinddent v^to execution of that contract by the buyer and toe seller, mspecdvely.(b)As soon as practicable,
toe listing agent shall disclose to the seller u^etoer the llsttog agent Is adSng In toe real property transaction exdustvdy as toe seller's ag^t or as a
dual agent representing both toe buyer and seller. This mmonmp shaii be confirmed In toe contract to purchase and sali real property or in a
separate writing executed or acknowisdged by ttie sefier and the fisting agent prior to or coinddenl with th execution of that contract by rhe $eer
(0)The confimiation required by subdtwslons(a)and(b)shafi be In the fdfowing form.
^ IS too Iqa rrt fdwdi;n) O the sorter exdusivdy.or Oboto toe buyer
- dt ommi *4 fic^cx one) O toe buyer tixcius^oiy. rw O ih iseiter ext^^iuveiy cr
IX Qbutotooteyeiml^ito0 "^
(d)The dfei^ssuies and conlkmalion required by thfe secfion shall be in addition to toe disdosure required by Section 2079,14^
2079,10 No seing agent In a reai property transaction may ad as an agentfor the buyer only, when the sefiing agent is also acting as toe ItSfing
apnt In toe transaction. ^
2078.19 The payment of comp^sefion or toe obligafion to pay cwnpensation to an agent by toe seller or buyer is ncrt necessarily determinative of a
pmUcular agem^ rdaUonsHip t^tween an agent and toe seller or bi^.A llsling agent and a sditog agent may agree to share any compensation or
commlssicm pmd, or arry right fo any compensahon or commfesfon for which an obllgatNm arises as toe result of a real estate Imnsaction, and the
terms of any such agreement ^all not necessarily be determinative of a pairtictfiar felafionship,
2079.20 Notofng In this artide prevents an agent from selecting, as a condltlcm of toe agent's employment, a spedfks fomi of agency i^Honshlp
not spedficafiy pfohlWted by tois articte If the requirements of Secfion 2079.14 and Secfion ^78,17 are compfied w4th.
2079.21 A dual agent shall rwrt discfose to the buyer toat the selier Is willing to sell the property at a price less than toe listing price, without toe
express WTfoen consent of the seller. A dual agent shafi not disclose to the seller that the buyer Is willing to pay a price greater than toe offering price,
vdthout toe express written ctmsenl of the buyer, Tliis section doce not niter in any way toe duty or responsibiilty of a dual agent to any princlpai wito
respetri to confrdenfialinfoifmatiort otoer than price.
2079.22 NbtoJng In tote artide pieduifos a iteting agent(mm also ceins a selling agent and toe comblnatkm of these foncfions in one agent does
m,of Itseif, make toat agent a dual agent
2078.23 (a) A contract belween the prindpa! and s^ent may Ite mocHfied or altered to rtoange toe agency relationship at any time l;^e toe
performance of the act which is the ot^of the agency wito the written consent ofthe parries to the agency relationship,
ib)A lender or an auction company rateined by a l^ider to control aspects of a transaction of real properly sul:^ te tols part, tociudmg
validating the sales price, shall not raquiie. as a contfitfen of recelvfeg toe lendto^s af^woval of toe transaction, the homeowner or fisting agisnt to d^end
or indemntof the iend^ or aucfion company from any fiabfilty ai^ed fo result from toe actions of the Imtder or auctom company. Any dau^. piov^kfe.
covwant,or agreement purporting to Impose an obligatfrm to defend or indemniiy a lender or an auction company in vidatfon of this subrtorision IS
against public policy, vdd,and unenfonteable.
PAGE 2OF 3
INtlTALS (WmS
miu.jUR COMMERCIM.REM.estate association F0R8S iMJ-WStse
^' "* asenls and teir assosiate
tSS moclate licensees, suissgents, and ^mpfejyees fmm liaNliiy fer dter abduct In
demnectlon vwth acts govemad lay tNs anNda Offor any breach ol a fiduciary dufy Of a duty of disd^um,
are uaiiiing wo moat^ 'SdUiremants
currentitmn: /yft Commercial Heal of law andSOO
EsiaW Aaeeciaigoii^ Indoslry naeds.
N Brand Shrd,fUvras wrttaGtendale^
Suite SOO, orsail toCAmake sore yoo
$1203.
TelefjHon No.{m)887-8777. Fax No:<213)687-^18.
li^B30F3
imALS
mu'Mn mmmm,mm.sstAmassociation
FOiJSttt AP-1'-03/1Si
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D D a
1 " N.
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EXHIBIT B
NOTICE TO PAY RENT OR SURRENDER
POSSESSION OF THE PREMISES
Unpaid rent for the rental period from July 1,2017 through July 31,2017: $8,802.00
Unpaid rent for the rental period firom Aug. 1,2017 through Aug.31,2017: $8,802.00
Acceptance of partial rent payment does not constitute a waiver of any rights, including
landlord's right to recover possession ofthe Premises.
THE PAYMENT MUST BE MADE TO Nancy Morrow, or her agents, 2215
Dollarhide Way,Ashland,OR 87520,telephone(530)276-3022,and may be made in person
on Monday through Friday during normal business hours(9:00 a.m. to 12 noon; 1:00 p.m.
to 5:00 p.m.).
Your failure to pay the amount demanded,or to deliver possession ofthe Premises
within three (3) days, will eause the Landlord to initiate legal proeeedings against you to
deelare a forfeiture of your rental agreement, to recover possession ofthe Premises, and to
seek a money judgment for the rent owed through the expiration date of this Notice, with
damages for each day ofoccupancy after that date. Such ajudgment against you may include
attorney fees,court costs,and statutory damages award of$600 in accordance with California
law. If you fail to fulfill the terms of your credit obligations, a negative credit report may be
submitted to a credit reporting agency. This Notice to Pay Rent or Quit supersedes all
previous Notices to Pay Rent or Quit, if any.
FURTHER NOTICE IS GIVEN that the Landlord elects to declare the forfeiture
of the rental agreement under which you hold possession of the Premises, if you fail to pay
the amount of rent demanded above within the three-day period or fail to surrender
possession of the Premises within the three-day period.
FURTHER NOTICE IS GIVEN that acceptance of any partial rent payment after
service ofthis Notice does not constitute a waiver ofany ofLandlord's rights, including any
right the Landlord may have to recover possession ofthe Premises.
FURTHER NOTICE IS GIVEN that this Notice to Pay Rent or Surrender
Possession of the Premises is being served along with a Termination Notice. Thus, even if
you perform as indicated above, the terms of the Termination Notice will terminate the
tenancy within 30 days of service. You may elect to terminate the tenancy at any time.
FURTHER NOTICE IS GIVEN that this Notice supereedes all prior notice(s)
terminating your tenancy, if any, which may previously have been served on you.
4y
r
DANIEL S MEHR,esq.
Attorney for Landlord
TERMINATION NOTICE
NOTICE IS HEREBY GIVEN that your tenancy of the Premises located at 5542
Research Drive, Hnntington Beach, CA 92649 is terminated as of thirty (30) days after
service of this Notice upon you in accordance with the provisions of Section 1162 of the
California Code of Civil Procedure. This Notice is intended as a thirty (30) day legal
notice for the purpose of terminating your tenancy in accordance with California Civil
Code 1946 or 1946.1. Within thirty (30) days after service of this notice, you must
surrender possession ofthe Premises to the undersigned Landlord.
The reasons for termination of your lease and the relevant provisions of the lease
supporting such termination are as follows:
Material noncompliance with the terms of your lease and other good cause in that
you have repeatedly failed to replenish the security deposit after demand was made on
you in violation ofthe Lease paragraphs 4.2 and 5. Separate demands dated May 19, 2017
and August 3, 2017 were made on you to replenish the Security Deposit. You failed to
replenish the security deposit within 10 days of the demand as required by the Lease,
paragraph 5. This default is not correctable.
UNDER CALIFORNIA LAW,you have a right to request that the undersigned
or his agent make an initial inspection of the Premises to determine its condition before
you vacate, and you have the right to be present during the inspection. The purpose ofthe
inspection is to allow you an opportunity to remedy identified deficiencies or damage to
the Premises, if any, caused by you. If you wish to have such an inspection please
contact the Landlord as soon as possible at the address and telephone number listed
1
below. If you request an inspeetion, you will be given forty-eight (48) hours' advance
notice of the inspection, but you may waive in writing the required forty-eight(48) hours'
notice and have the inspeetion done sooner.
CALIFORNIA STATE LAW PERMITS, former tenants to reclaim abandoned
personal property left at the former address of the tenant, subject to certain conditions.
You may or may not be able to reclaim property without incurring additional costs,
depending on the cost of storing the property and the length oftime before it is reclaimed.
In general, these costs will be lower the sooner you contact your former Landlord after
being notified that property belonging to you was left behind after you moved out.
IF YOU FAIL TO DELIVER up possession of the Premises within the thirty
(30) days period, the undersigned will initiate legal proceedings against you to recover
possession of the premises, to declare the forfeiture of the rental agreement under which
you hold possession of the Premises, and to seek judgment for damages for each day of
occupancy after that date, treble damages and costs, and attorney's fees, if applicable.
FURTHER NOTICE IS GIVEN that with this Termination Notice is being
served along with a Notice to Pay Rent or Surrender Possession of the Premises. Thus,
even if you pay all monies due as set forth in the Notice to Pay Rent or Surrender
Possession of the Premises, the terms of this Termination Notice will terminate the
tenancy within thirty (30) days of service. You may elect to terminate the tenancy at any
time.
DANIEL S\MEHR,esq.
Attorney for Landlord
For CourtUse Onl/
ATTORNEV OR PARTY WITHOUT ATTORNEYfAtomftStateBar number,andaddress):
Reese.Smalley.WIsecnan &Schweitzer
DANIELS. MEHR,SBN:.289520
1265 Mills St/
Redding CA 9^01
TELEPHONE NO.: (530)241-1611 FAXNO.(C^tfonff8 (530)241-5106
E-MAIL ADDRESS Optional
ATTORNEY FOR(ome) NANCY ELUEN MORROW.TRUSTEE OF THE MARY ELLEN MORROW UVING
TRUST
SUPERIOR COURTOFCALIFORNIA COUNTY OF
STREET ADDRESS!
MAIUKG ADDRESS:
CITYAND ZIP CODE
BRANCH NAME
CASE NUMBER:
PlAINTIFF/PETinoNER: NANCY ELLEN MORROW.TRUSTEE OF THE MARY ELLEN MORROW
UVING TRUST
DEFENDANT/RESPONDENT: DIME RESEARCH DEVELOPMENT,et. al.
Invoice Number:
PROOF OFSERVICE CCP S1162(b) Client Number: .018978 /171157
1. Atthe time ofservice I was at least 18 years of age and not a party to this action,I served copies of(specter documents):
Notice to Pay Rent or surrender Possession ofthe Premises; Termination Notice
2. Paityts)served: DIME RESEARCH DEVELOPMENT AND ALL OTHER OCCUPANTS IN POSSESSION
3. Person served(other than the party(s)In Item 2):
4. On(date):Aug24.2017at(tlme): 1:24pmPOT
Address was senred at:5542 Research Drive,Huntlngton Beach CA 92649
5.1 seived the party(s)named In Item 2 by:
PERSONALSERVICE personally delivering a copy to the party(s)In Item 2 pursuant to CCP 51162{bX1),
SUBSTITUTED SERVICE If the party(s)In Item 2 Is/are not at the commercial address during the time ofservice, by leaving a v*rtth
the person served In Item 3,whom Is ofsuitable age and discretion at the business and sending a copy through
the USPS mall (First Qass Postage Paid)addressed to the tenant at the place where the property Is located
from(City and State): pursuant to CCP S1162(b)(2).
m POSTING Only after maWng a due and diligent attempt to personally serve the above-referenced docurnents on the
tenant,and finding no person ofsuitable age or discretion at the premises on the date set fc^h ab^i affixed
a copy ofthe above-referenced documents in a conspicuous place on the property,and also sent a copy tlvough
the USPS mall(First dass Postage Paid)addressed to the tenant at the place where the property Is located
(Tom(dty and State): Los Angeles,CA pursuant to CCP 51162(b)(3).
6. Person who served*papers:
e. i am:
a. Name: Jorge Sllva
(3). Registered Callfbmja process server
b Address OnDemand Legal, Inc. 901 F Street Suite 110
Sacramento, CA 95814
c Telephone Number 916-329-8630 (SXiI) Registration Nunrj )en 6663
County of: Los Angeles
d. The fee fbr Service was:
1 declare under penalty of perjury under the laws of the State of California that the foregolngjpnw.4nd corre(
Jorge SIKp
(SiGNi jKjRE)
(TYPE OR PRINT NAME OF DECLARANT)