THE STATE Department of Commerce, Community,

and Economic Development

ofALASKA ALCOHOLIC BEVERAGE CONTROL BOARD
2400 Viking Drive
GOVERNOR SEAN PARNELl
Anchorage. Alaska 99501
Main: 907.263.5900
TOO: 907 .465.5438
Fax: 907 .263.5930

MEMORANDUM

TO: ABC Chair Klein, and members of the Board DATE: September 29,2014

THRU: Cynthia Franklin, Director Cf

FROM: Robert Beasley, Enforcement Superviso RE: Hong & l..ee's, Inc. Samovar Inn
License o. 598

On January 4, 2014, Investigator Hamilton discovered through his investigation that Hong &
Lee's, Inc., doing business as the Samovar Inn had entered into what the licensee described as a
management agreement with Sharon Cho to operate the bar; however, Hong & l..ee's, Inc. leased
the kitchen and restaurant to Sharon Cho, thereby relinquishing right, tide and interest in the
restaurant.

Samovar Inn, located at 720 Gambell Street in Anchorage is a hotel, and operates with a Beverage
Dispensary-Tourism license, number 598. None of the hotel rooms have kitchenettes.
Investigator Hamilton's investigation revealed this type of conduct has been occurring since about
2003, with a variety of "tenants" throughout the years.

In the most recent lease agreement dated November 4, 2009 for the restaurant and kitchen, the
lease amount is indicated as being $6,000.00 per month; however, beginning in 2012 it is stipulated
there is a 3% increase for each additional year of the lease. Among many details in the lease,
section 18 reads as follows:

18. Liquor License Liability Insurance: Owner shall obtain Liquor License Liability
insurance for and applicable to the Premises in its own name. On or before July 1, each year,
Tenant shall pay or reimburse owner the actual cost of the Liquor License Liability Insurance for
each year. Owner will renew the Liquor License Liability Insurance every year during the term of
the Lease, including any renewal term. Owner shall pay for the actual cost of the Liquor License
Liability Insurance during each year. Tenant shall reimburse Owner for the actual cost of the
Liquor License Liability Insurance within fifteen (15) days of the date the insurance premium is

EXHIBIT G
 STATti Ull ALASKA
DEPARTMENT OF
COMMERCE
COMMUNITY AND
Sean Parnell, Governor
ECONOMIC DEVELOPMENT Susan K Bell, Commi.r.rioner

paid by the owner. Tenant shall be responsible and pay for the annual Liquor License renewal fee
and any other costs to renew or maintain the liquor license for the Premises.

Investigator Hamilton filed criminal charges against the corporation, Hong & Lee's, Inc. for
violation of AS 04.16.1 SO, Licensee Responsible for Violations. During court proceedings on or
about July 31, 2014 in Anchorage District Court, Case Number 3AN-14-01730, Hong & Lee's,
Inc., through a plea agreement, entered a plea of guilty to the charge.

As a result, the court entered judgment of conviction in the amount of a $2,500.00 fine, and a
$50.00 police training surcharge.
 Alcoholic Beverage Control Board
Incident Report

Incident: AB14000162

Incident Type: Liquor Law Violations [90G]

Incident time: 01/14/2014 08:10-02/06/2014 08 :12

Reported time: 01/14/2014 08:10

Incident location: 720 GAMBELL STREET, ANCHORAGE, Municipality of Anchorage AK USA 99501
(Beat/zone: UEBA)

Incident status: Closed by investigation

Summary: It was learned by the ABC Board that since 4 Nov 2009, licensee Hong & Lees Inc.
have leased the property where the beverage dispensary tourism license is according
to the ABC file . They are still operating the liquor license. On 2-1-14, a check of the
establishment revealed that two persons checking ID's at the entrance to the
establishment failed to have server education, a violation of Anchorage Municipal
ordinance 10.50.015(s). A check of Facebook advertising revealed you are offering
free alcoholic beverages New Years Eve, 12-31-13. Advertising also revealed there is
the appearance of drink specials every Saturday. This is a violation of title IV.

Incident Activities/Offenses

• ABC - Issue Notice Of Violation (Licensee Response Required)

• Alcohol- AS04 .16.015(a)(1)- Licensee Offer Free Alcohol
• Alcohol - AS04.16.150 - Licensee Responsible for Alcohol Violations
• AS04.21.030(1)- Alcohol- Licensee to ensure business is lawful including ensuring compliance by staff
with AS04 and regs, acting with reasonable diligence that staff are advised of AS04 and regs, by written
acknowledgement or otherwise

Involved Persons/Organizations

YUN, HYON NANG

Classification: Witness

SID: AK6618053 DL: 6618053 AK

Gender: Female DOB: 02/26/1962
Height: 5'4" Weight: 1451b Build:

Race: Asian Hair Color: Black Eye Color: Black.

Address: 3298 MORGAN LOOP, Anchorage, Municipality of Anchorage AK USA
99516 (Beat/zone: UEBA, ANCHORAGE)

E-mail:

Printed : 09/24/2014 08:03 by FRHO Page : 1 of 6

 Telephone: (Landline) (907) 522-9990

SIMMONS, NAPOLEON JUNIOR

Classification: Other (see remarks)

SID: AK6529066 DL: 6529066 AK
Gender: Male DOB: 10/19/1967
Height: 6'4" Weight: 2801b Build:
Race: Black Hair Color: Black Eye Color: Brown
Address: 16510 CENTERFIELD DRIVE, EAGLE RIVER, Municipality of
Anchorage AK USA 99577 (BeaUzone: UEBC)
E-mail:

ALONE, TABITHA KALEIOKALANI

Classification: Complainant
SID: AK7710852 DL: 7425245 AK
Gender: Female DOB: 04/15/1985
Height: 5'11" Weight: 2401b Build:
Race: Unknown Hair Color: Brown Eye Color: Hazel
Address: None
E-mail:

RODRIGUEZ, REYMI ENRIQUE

Classification: Witness
SID: AK6886429 DL: 6886429 AK
Gender: Male DOB: 06/30/1980
Height: 5'9" Weight: 2251b Build:
Race: White Hair Color: Black Eye Color: Brown
Address: None
E-mail:

HONG & LEES, INCORPORATED

Classification: Arrested ; Charged ; Owner; Suspect

ID: Type:
Address: 720 GAMBELL STREET, ANCHORAGE, Municipality of Anchorage AK USA 99501
(BeaUzone: UEBA)

Printed : 09/24/2014 08:03 by FRHO Page : 2 of 6

 E-mail: No known E-mail
Telephone:

CHO, SHARON RAN

Classification: Interview; Owner; Victim

SID: AK7503937 DL: 7338816 AK
Gender: Female DOB: 10/20/1964

Height: 5'6" Weight: 1201b Build:

Race: Hair Color: Black Eye Color: Brown
Address: 2133 KIMBERLY LYN CIRCLE, ANCHORAGE, Municipality of
Anchorage AK USA 99515 (BeaUzone: UEBA)
E-mail:
Telephone: (Cellular phone) (907) 301-6710

FUSIONS

Classification: Owner
ID: Type: Bar
Address: 720 GAMBELL STREET, ANCHORAGE, Municipality of Anchorage AK USA 99501
(BeaUzone: UEBA)

E-mail: No known E-mail

Telephone:

ALEXANDER, ROBERT B

Classification: Interview; Victim; Witness

SID: AK6677424 DL: 6677424 AK

Gender: Male DOB: 02/22/1967
Height: 6'2" Weight: 2551b Build:
Race: Black Hair Color: Black Eye Color: Black
Address: 2234 STOCKDALE CIRCLE, ANCHORAGE, Municipality of Anchorage
AK USA 99515 (BeaUzone: UEBA)

E-mail:
Telephone: (Cellular phone) (907) 229-2053

Involved Addresses
• 720 GAMBELL STREET /Incident location I ANCHORAGE, Alaska, USA 99501 (BeaUzone: UEBA,
ANCHORAGE)

Printed: 09/24/2014 08:03 by FRHO Page: 3 of6

Involved Officers
• Reporting unit I #ABCHABC ENFORCEMENT STATEWIDE I Reporting unit
• Reporting officer I #FRHOHAMIL TON, FRANCIS J I Reporting officer

Reports

Arrest report

Subject: HONG & LEES, INCORPORATED I Arrested; Charged; Owner; Suspect 1720 GAMBELL
STREET, ANCHORAGE, Municipality of Anchorage AK USA 99501 (Beat/zone: UEBA)
Author: #FRHO HAMILTON, F. Report time: 0211112014 10:11

Charges: (2) AS04.16.150 Licensee Responsible for Alcohol Violations ()

General report

Author: #FRHO HAMIL TON, F. Report time: 0211112014 13:43

Narrative:

BACKGROUND:

On 1-9-14, at about 1320 hours, I received a forwarded e-mail from my supervisor Robert Beasley asking
me to look into pricing a marketing issues with Fusions. The e-mail containing the compliant was from
Tabitha Alone. The first attachment to the e-mail was an ad for Activo Fridays. It advertised drink specials
all night. The second attachment was for Hoy Se Bebe! Saturdays. This advertised free Moet, $5 Skyy
Vodka, $20 .. Beer Buckets (5 Heinekens or Coronas). Alone told me to check Remy Rodriquez's and
Djpapalote JQ's Facebook pages for advertisement.

A check of Reymi Rodriquez's Facebook Timeline showed both posters. I later learned Reymi is a OJ.
Djpapalote JQ is also a OJ at Fusions. Also under Djpapalote JQ timeline is the New Year's Bash 2014
being advertised. This ad offers a free champagne toast at midnight.

A check of the Alcoholic Beverage Control Board (ABC Board) records revealed that Fusions is owned by
Hong & Lees Inc. They have been issued alcoholic beverage license 598 to be located at 720 Gambell
Street. The type of license is for a beverage dispensary- tourism. Being a tourism license, the
establishment has to have rooms for the traveling public and some of those rooms have to have
kitchenettes in them. If the rooms don't have kitchenettes, then there has to be a kitchen for the traveling
public. Without the rooms with kitchenettes or a kitchen, the license would not be able to be issued.

A check of the Department of Community, Commerce and Economic Development (DCCED) records
revealed Hong & Lees Inc. is in good standing and is comprised of Han Young Cho, 60% and Ki Sang Cho,
40% . A check of ABC records from the 201312014 Liquor License Renewal form dated in November of
2012, indicates the Hong & Lees Inc. is comprised of Han Young Cho, 60%, Ki Sang Cho, 20% and Kyu
ChaCo, 20%.

A check of DCC ED records also revealed that Fusions Bar & Grill was solely owned by Robert Alexander,
Alaska Business License #994667 .

On 1-14-14, I was able to locate Reymi Rodriguez.

Printed : 0912412014 08 :03 by FRHO Page: 4 of6

~---~ ~~ - ---------- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - -- -

INTERVIEW #1, R. RODRIQUEZ:

Conducted via telephone. I learned from Reymi that Fusions was owned by Robert Alexander and he has
owned since the end of August beginning of September, 2013 . Reymi also provided me with number to
contact Alexander. Reymi also advised me that he does some of the advertising for Fusions. Reymi stated
they had given away champagne on New Year's Eve.

On 1-15-14, I was able to locate Robert Alexander.

INTERVIEW #2, R. ALEXANDER:

Conducted via telephone. Alexander advised me that the DJ's do their own marketing. He was aware that
they were advertising the beer buckets. Alexander, as far as he knows, they do not sell five dollar vodka
drinks. Alexander said he owned the restaurant from just past summer (2013). He stated he owns the
restaurant, has leased the entire space and manages the bar. He pays about $4500.00 dollars a month to
lease the space.

INFORMATION:

On 1-18-14, Alexander faxed me a copy of the lease agreement. Basically it states the agreement is
between licensee Hong & Lees Inc. (Han Young Cho and Ki Sang Cho} and Sharon Cho, a relative. Hong
& Lees Inc. desires to lease the restaurant Sharon Cho desires to lease. The leased area consists
of approximately 2,500 square feet located in the Samovar Inn building, 720 Gambell Street. It includes all
of the area that is presently being used for the hotel restaurant. The monthly rent shall be paid at the first of
the month without notice or demand. Hong & Lees Inc. will pay Sharon Cho $1,000.00 to manage
the cocktail lounge for them. It should be noted that the management fee is to be paid to Sharon Cho if only
both restaurant and lounge are both open for business and customers and in full operation.

On 2-1-14, at about 2110 hours, I entered Fusions. Only one person, not identified, was present. I asked
him if I could get some food and he advised me that the kitchen was closed and the cook didn't even show
up. I asked when things would pick up and he advised me at about 2300 hours.

At about 2315 hours, I came back to the establishment. A compliance check was done using an underage
buyer. The establishment passed the check. I entered the establishment and was greeted by 3 week
security person Napoleon J. Simmons and security person Jamal Baskerville, Delaware license 9442015,
DOB: 2-11-69, (907) 980-0064. As I approached the door, I was asked for ID and showed them my
credentials. When I asked them to provide proof of server education, they replied they didn't have server
education. Contact was also made with Sharon Cho who did provided me with proof of current server
education. I advised Cho of the municipal ordinance required server education prior to employment. The
security persons were told to stop check ID's until they obtained education. After talking more with the
owner of North Star Security, I departed.

INFORMATION:

On 2-6-14, Robert Alexander and Sharon Cho arrived at the offices of the ABC Board.

Alexander claimed to be a sub-lessor from Sharon Cho and that the only space he was leasing, was the
kitchen.

I learned from Sharon Cho that all the previous establishments at that location, S-Lounge, Stormy Bar and
Grill were her failed business ventures over the past four years.

On 2-7-14, a copy of a "management agreement" was given to the licensing staff. It basically states that
Hong and Lee Inc. is hiring Sharon Cho and Robert Alexander to manage the bar and restaurant and that
their salaries shall be discussed later.

On 2-10-14, I went to the Samovar Inn Travel Lodge and made contact with Han Young Cho. During our
conversation, Han telephoned Ki Sang Cho and placed him on speaker.

INTERVIEW:

Printed: 09/24/2014 08:03 by FRHO Page: 5 of 6

 Conducted in a non-custodial manner. There were some language barriers. As t understood what Han told
me, was that if they were doing something wrong , tell them, and they would fix it. Han stated they leased
the restaurant only.

Ki Sang Cho stated they had leased the restaurant to Sharon Cho. They did not lease the license.

Although Han has for years signed notarized documents that he understands title IV, they claimed
ignorance to what a tourism license is.

OFFICER ACTION :

I issued a summons to Han as president of Hong & Lees Inc. for licensee responsible for violations. A
mandatory court date of 3-11-14, 0830 hours, Anchorage District Court was assigned .

Upon returning to the ABC offices, I read further into the lease agreement

Section 18 of the lease refers to Hong & Lees Inc. being responsible for obtaining liquor license liability
insurance for the premises in its own name. Sharon Cho then is responsible to pay back Hong & Lees Inc.
for the policy. Sharon Cho is also responsible, according to the lease, to pay for the liquor license renewal
fee and any other costs to renew or maintain the liquor license for the premises.

In looking at the master file for Fusions, although it is the business venture Sharon Cho and Alexander,
Hong & Lees Inc. have been doing the name change pape!Work.

On 2-13-14, I contacted Hyun Nang Yun, formerly Morrissette, and asked her to translate what Ki Sang had
told his father over the phone at about 19 minutes, 30 seconds, into my contact Basically he advised his
father, Han Young Cho to not provide me with any documents and that he would be talking to his attorney.

After the translation, Hyun advised me that when the establishment was Rock & Roll Sushi, she leased the
building and owned the restaurant with her husband, Sokin Yun. Hyun provided me with the lease
agreement which is basically the same as Sharon Cho's; the square footage was 5000 instead of 2000. It
appears she leased the space from 7-4-03 to about 10-16-2004. The leased was signed by Sokin Yun . It
also in #17, that Rock & Roll Sushi was to re-imburse Hong & Lees Inc. for liquor liability insurance and that
Rock & Roll Sushi was to pay for liquor license renewal and associated fees.

CASE STATUS :

Closed. Referred to the DAO for prosecution .

Printed : 09/24/2014 08:03 by FRHO Page: 6 of6

Alcoholic Beverage Control Board Date: 2-7-14
5848 East Tudor Road Number AB14-0162
Anchorage, AK 99507 Page 1 of 1 Page

Notice of Violation
(3AAC 304.525)

Ucensee Ucense Number Type of Ucense

Hong & Lees Inc. 598 Beverage Dispensary- Tourism

D.B.A. How Denv.r.ct Law Enforcement Agency

[ X ) Certified Mall I On-File
Fusions [ ] In Person Anchorage Pollee Department
Street or P.O. Box City, State Zip
720 Gambell Street Anchorage, AK 99501
..
Thrs 1s a notrce to you as licensee that an alleged VIolation has occurred. If the Alcoholrc Beverage Control Board decides to act aga1nst your license,
under the provisions of AS 44.62.330 - AS 44.62.630 (Administrative Procedures Act) you will received an Accusation and Notice of your right to an Administrative
Hearing.

Nota: This II not an accusation or a c:rlmlnal complllnt.

VIOLATION: On 1-4-14, it was revealed that Hong & Lees Inc. has leased the licensed premises to Sharon Cho, thereby
relinquishing right or title, or interest in, land and buildings at the location of the business to be licensed. The licensed premises
has been leased from November4, 2009 to February 5, 2014. On February 1, 2014, a check of the establishment revealed two
security persons wbo did not have server education, a violation of Anchomge municipal ordinance 10.50.015(s). A check of
advertising your establishment on Facebook revealed you giving away drinks on New Year's Eve and advertisement which leads
one to believe you have drink specials on Fridays and Saturdays. This is a violation of Title IV.

Your attention is directed to AS 04.16.150: Ucensee Responsible for violations, AS 04.21.030: Responsibility of
licensees, agents, and employees, AS 04.11.400: Populations limitations, 3AAC304.105: Application generally,
3AAC304.325: Licensee issued to encourage tourism; AS 04.16.015: Pricing and marketing

You are directed to respond to the Director of the Alcohol Beverage Control Board in writing to this Notice of Violation
within 10 days of receipt to explain what action you have taken to prevent a reoccurrence of this violation. *Please
include your Alcohol License Number in your response.

Shirley A. Cote', Director

Alcoholic Beverage Control Board
2400 Viking Drive
Anchorage, Alaska 99501
A Response Is Required
3 AAC 304.525 (B) provides that upon receipt of a Notice of Violation, a licensee may request to appear before the Director and be heard regarding the
Notice of Violation. The request must be made within ten days after receipt of the Notice and the Director must grant an appearance within ten days after
. of a requesI. AU censee shaII respon d, either ora11y
recetpt II or .
m wntlng, t"
. . Io th e Notce.
Receipt: Violation Observed By:
7 AJ }>.f.r>a- FRHO
Title:
Filed By: 1L H,...U,.. Investigator Ill
 () Screen for VRA

IN THE DISTRICT COURT FOR THE STATE OF ALASKA AT ANCHORAGE

State of Alaska
Plaintiff, CASE NO: 3AN-14-0 1730CR
vs.

Hong & Lee's Inc.

Defendant. JUDGMENT

DOB: APSIN: ~79<...!4.=...37'-"'3=0_ __ ATN: 114146919 CTN: _,_,00<..!.1_ _

DLIID (0 COL): ST: _ _ __ Offense Date: . _1...,_
11-"'04::/f'-2""'"00""9'---- -- - -
Address: 720 bell St Anchora e AK 9950 I TRIAL: 0 Court 0 Jury
PLEA: Guilty 0
ljo contest DV Offense per AS 18.66.990(3)&(5): No
PLEA AGREEMENT: [9-'\'es 0 No 0 Partial 0 SOREG reguired by AS 12.63.010
DEFENDANT IS JUDGED:
[gl GUILTY OF: <0 Amended Charge)
AS04.16.150: Licensee Respons For Alcohol Violations
0 CTN Charges Dismissed: 0 No PTRP's to be filed per R11 Agreement.
0 NOT GUlL TY. It is ordered that the defendant is acquitted and discharged.
SENTENCE IMPOSED:
1. 0 SUSPENDED IMPOSITION OF SENTENCE. Imposition of sentence is suspended and the defendant is placed on
probation subject to the orders and conditions below.
2. 0 JAIL. ___ days with _ _ days suspended. Report at 7:45a.m. on to the Cordova
_>:enter at 130 Cordova St., Anchorage, or a bench warrant may be issued for your arrest.
3. [3' FINE.$ ~ with$ N?~ suspended. The fine is due onSv L.."'( "3 \ 1 :l.D~
4. 0 TREATMENT. Follow recommendations of the Anchorage Alcohol Safety Action Program (AASAP),
including residential treatment up to days plus required aftercare. Pay costs.
5. 0 COMMUNITY WORK SERVICE (CWS). Complete hours CWS by - - - - - - · Pay fee.
0 CWS not completed will convert to 0 jail 0 fine pursuant to law.
6. 0 Fees paid to court-ordered programs will be deducted from the fine if the defendant presents proof of payment
to the court clerk by the fme due date.
7. 0 RESTITUTION. Pay restitution to - - -- - - - -- -- -- - - - - - - - -- - - -
0 as stated in the Restitution Judgment 0 in an amount to be determined per Crim. Rule 32.6(c)(2).
8. SUR<:___If¢iES AND COSTS. __./
a. 8' Police training surcharge. ~ $50 (misdemeanor) 0 $10 (infraction) Due within 10 days.
b. 0 Initial jail surcharge. $50 per case due within 10 days.
c. 0 Suspended jail surcharge. $100 per case with $100 suspended. (State cases only.)
d. 0 Cost of court-appointed counsel. 0 $200 (plea change) 0 $500 (trial) 0 $_ _ __ __ _
Interest accrues on the judgment at the rate specified in AS 09.30.070(a) from the date of judgment until
paid. Apply for the PFD every year eligible until this cost is paid in full.
9. Sentence is 0 consecutive to 0 concurrent with other counts and cases. Probation periods are concurrent.
10. Read and follow the After Sentencing Instructions form provided to you in court today.
PROBATION CONDITIONS IMPOSED:
Defendant is placed on probation for 0 years 0 months, subject to the following conditions:
11. [gl Complete this sentence by the deadlines ordered.
12. [gl Commit no jailable offenses during the probation period.

Page I of2
CR-460Anch (1114) AS 28; AS 12.55.015; AS 12.55.041;
Judgment- General (Anchorage) Crim. R. 32, 32.6, 39; 22 AAC 05 .615
 () ( ~1';

13. 0 Do not possess or consume alcohol or illegal drugs during the probationary period. If you are ordered not to
consume alcohol, you are also restricted from buying alcohol, and any state ID issued to you under
AS 18.65.310 must list this restriction during the probationary period. [AS 04.16.160]
14. 0 Complete an assessment and follow recommendations of a state-approved batterer's intervention program. Pay
costs. Give proof of completion to the prosecutor by - - - - - - - - -
15. 0 Complete weeks anger management program ( n a m e ) : - - - - - - -- - - - - - - -
Pay costs. Give proof of completion to the prosecutor by-- - -- - - - - - - - - - - - -
16. 0 Do not have any contact, direct or indirect, with - - - - - - - - - - - - unless that person gave
written consent to the prosecutor.
17. 0 Follow Office of Children's Services case plan.
18. 0 Forfeit items seized.
19. 0 Obey all trespass orders from - - - - - - -- - - -- - - -- - - - - - - - - - -
20. 0

PROGRAM INFORMATION:
21. If ordered to complete one or more of the programs below, you must report by the time shown below and complete
all program requirements as follows:
a. AASAP MISDEMEANOR SERVICES. Go to the basement of the Boney Courthouse NOW, 303 K Street,
Anchorage. If you are sentenced on a weekend, holiday or after 4:30p.m. on a weekday, call264-0735 on the
flrst working day after sentencing. If you are in custody, call the flrst working day after release.
b. COMMUNITY WORK SERVICE (CWS). Go to 535 East 9th Avenue, Anchorage (inside the cemetery) NOW if
between 9:00a.m. and 4:00p.m. Monday through Friday. Phone: 343-4057. If you are sentenced on a
weekend, holiday, or after 4:00p.m. on a weekday, go the flrst working day after sentencing. If you are in
custody, report the flrst working day after your release from jail.
c. DOMESTIC VIOLENCE INTERVENTION PROGRAM. Report ON FRIDAY MORNING to the Jury Assembly
Room on the 2nd floor of the Nesbett Courthouse, 825 W. 4th Ave., Anchorage. Males: 10:00 a.m. Females:
9:00a.m. (except for state holidays) following sentencing or your release from jail.
d. ANGER MANAGEMENT PROGRAM. Report NOW to the program specified in number 15 above and complete
all program requirements.
IF YOU FAIL TO REPORT TO THE PROGRAMS ON TIME OR COMPLETE PROGRAM
REQUIREMENTS, A WARRANT MAY BE ISSUED FOR YOUR ARREST AND THE SUSPENDED
PART OF YOUR JAIL SENTENCE AND/OR FINE BE IMPOSED.

Page 2 of2
CR-460Anch (1/14) AS 28; AS 12.55.015; AS 12.55.041;
Judgment- General (Anchorage) Crim. R. 32, 32.6, 39; 22 AAC 05.615
Case No: 3AN-14-01730CR Defendant: Hong & Lee's Inc.
 IN THE DISTRICT COURT FOR THE STATE OF ALASKA

THIRD JUDICIAL DISTRICT AT ANCHORAGE

STATE OF ALASKA, )
)
Plaintiff, )
)
v. )
)
HONG & LEE'S, INC. I )
)
Defendant. )
)

No. 3AN-S14-01730 CR

TRANSCRIPT OF PROCEEDINGS

July 31, 2014 - Pages 2 through 10

 1

10 COP HEARING

11 BEFORE THE HONORABLE DOUGLAS H. KOSSLER

District Court Judge
12
Anchorage, Alaska
13 July 31, 2014
2:28 o'clock p.m.
14
APPEARANCES:
15
FOR THE PLAINTIFF: MELISSA N. WOHLFEIL
16 Assistant District Attorney
District Attorney's Office
17 310 K Street, Suite 520
Anchorage, Alaska 99501
18
FOR THE DEFENDANT: W. SHERMAN ERNOUF
19 LAW FIRM OF ERNOUF & COFFEY, PC
3606 Rhone Circle, Suite 110
20 Anchorage, Alaska 99508

21

22

23

24

25

-2-
 1 PROCEEDINGS

2 38

3 02:28:20

4 MR. ERNOUF: Good afternoon, Your Honor. Sherman Ernouf,

5 Ernouf and Coffey, for Hong and Lee's, Inc.

6 THE COURT: Okay. And just a moment, let me .....

7 MR. ERNOUF: Oh.

8 THE COURT: And this is case number 14-1730 and .....

9 MR. ERNOUF: We've reached a resolution of this case, Your

10 Honor, and I have a corporate officer here who's competent and

11 qualified to accept the plea on behalf of the corporation.

12 THE COURT: Okay. And what is the agreement?

13 MR. ERNOUF: It's pretty simple, Your Honor. This -- my

14 client, Hong and Lee's, Inc., will plead guilty to licensee

15 responsible for violations which is Alaska Statute 04.16.150.

16 THE COURT: Okay.

17 MR. ERNOUF: The complete and total sentence is a fine of

18 $2,500 plus the $50 mandatory police surcharge. We would like

19 to pay that within a year, if possible, Your Honor. That was

20 the only conditions.

21 THE COURT: Okay. $2,500 with none suspended and there's

22 no opposition to the due date on the fine, Ms. Wohlfeil?

23 MS. WOHLFEIL: No, that's fine.

24 THE COURT: Okay. So that will be due by July 31st of

25 2015. The surcharge, of course, is due within 10 days. I

-3-
 1 have no control over that.

2 MR. ERNOUF: Yes, sir.

3 THE COURT: Okay. I've never -- or I have yet to conduct

4 a sentencing or a change of plea of a corporation so I assume

5 though I'd go through the inquiry with and his .....

6 MR. ERNOUF: It's Ksong Cho. He's an officer of Hong and

7 Lee.

8 THE COURT: Mr. Cho? Okay. So I ask him if he -- Mr.

9 Cho, on behalf of the corporation, Hong and Lee's, Inc. , were

10 you present when I spoke to the previous gentleman about the

11 rights that a person has, for example, the right to a trial?

12 Did you hear all that?

13 MR. CHO: Yes.

14 THE COURT: Okay. And that would apply equally in this

15 case, all those rights to a trial, except the corporation

16 would be the defendant on trial. Do you understand that if

17 you go through with this, you're giving up all those rights to

18 a trial and, specifically, you're giving up those rights to

19 the right to confront the state's witnesses and have the state

20 prove its case beyond a reasonable doubt?

21 MR. CHO: Yes, Your Honor .

22 THE COURT: Okay. And do you want a trial in this matter

23 on behalf of the corporation?

24 MR. CHO: No.

25 THE COURT: Okay. And do you also understand if you go

-4-
 1 forth with this agreement on behalf of the corporation, you're

2 giving up the right to appeal which is a right to review and

3 you're giving up that right to review on behalf of the

4 corporation with respect to both the conviction in this case

5 and the sentence. Do you understand that?

6 MR. CHO: Yes, sir.

7 THE COURT: Okay. And .....

8 MR. ERNOUF: I don't know if he'll be deported or not .....

9 THE COURT: Yeah, and I was .....

10 MR. ERNOUF: ..... Your Honor.

11 THE COURT: I assume that this is a corporation that is in

12 the-- considered a .....

13 MR. ERNOUF: It's duly or .....

14 THE COURT: ..... United States-- okay . Then I'm not even

15 going to go through that.

16 MR. ERNOUF: Yes, it's duly organized and generated, Your

17 Honor.

18 THE COURT: Okay. Well, other than the plea offer that's

19 been extended here, has anyone promised or threatened you on

20 behalf of the corporation or threatened the corporation in any

21 way to get them entered into this agreement?

22 MR. CHO: I mean, no.

23 THE COURT: No? Okay. There's been no threats or other

24 promises?

25 MR. ERNOUF: No threats.

-5-
 1 THE COURT: Is that what you were saying, no threats or

2 other promises?

3 MR. CHO: No.

4 THE COURT: Okay. I see you nodding your head. Okay.

5 And also you're -- even though you're here on behalf of the

6 corporation, you're not under the influence of any medication,

7 drugs or alcohol?

8 MR. CHO: No.

9 THE COURT: Okay. And you, as -- on behalf of the

10 corporation, you've had enough time to talk this over with

11 your attorney and think about this before entering into this?

12 MR. CHO: Yes.

13 THE COURT: Okay. Then to the charge of licensee

14 responsible for alcohol violations, Mr. Cho, on behalf of the

15 corporation, how do you plea?

16 MR. CHO: Guilty.

17 THE COURT: Okay. I will find that Mr. Cho's plea on

18 behalf of the corporation is knowing and voluntary after a

19 knowing and voluntary waiver of the right to a trial and the

20 right to an appeal on -- both on behalf of the corporation.

21 Ms. Wohlfeil, any sentencing comments?

22 MS. WOHLFEIL: Nothing to add, Your Honor, unless you're

23 disinclined to accept it.

24 THE COURT: Okay. And, Mr. Ernouf, do .....

25 MR. ERNOUF: Yes, Ernouf. Just a couple comments on

-6-
 1 behalf of Hong and Lee's. The reason that we accepted this

2 plea, it's a very unusual charge. We've battled out this new

3 interpretation of 04.16.150 with another - - in another case

4 and the judge didn't see it our way. Our only chance was to

5 appeal it. This is a very unique charge. I've been doing

6 this kind of work for about 20 years but I want to put on the

7 record -- because we're pleading guilty to licensee

8 responsible. There were two components. One was a management

9 agreement. The ABC Board contends we did not have a

10 management agreement in place. In fact, there was a

11 management agreement. It was about three sentences long but

12 we contend that it was a management agreement and there was a

13 second component of the charge which was that we had a DJ

14 employee who advertised free drinks on Facebook. That may, in

15 fact, have occurred but there were no free drinks that were

16 ever served to anyone so it was a false advertisement and we

17 captured that.

18 The reason I want to put this on the record is because we

19 intend to approach the ABC Board and the attorneys at the ABC

20 Board about how these things are going to be meted out in the

21 future because, absent a trial on this particular issue which

22 from a cost benefit perspective, it just doesn't make any

23 sense to do a trial. So we've accepted this plea sort of

24 begrudgingly but we're going to take this up with the ABC

25 Board and they often look at these transcripts so I'd like to

-7-
 1 have this in the record, Your Honor.

2 THE COURT: Okay.

3 MR. ERNOUF: Those are my only comments. Thank you.

4 THE COURT: Okay. And, Mr. Cho, do you have any comments

5 for the court on behalf of the corporation?

6 MR. CHO: No, I think my lawyer pretty much told

7 everything I was intending to say.

8 THE COURT: Okay. Well, I will accept the agreement as

9 stated. I understand you were making your record and

10 everything.

11 MR. ERNOUF: I'm just -- Your Honor, we'll be talking

12 about this in the future.

13 THE COURT: On the other hand, I guess the one thing that

14 sort of strikes me about this is that there's a special

15 responsibility that a corporation has, particularly with

16 selling and providing alcohol and I think that that's why that

17 -- it's my under-- or at least just not being familiar with

18 this but I can understand why the legislature thought that

19 that was -- they needed to have that statute because of the

20 special responsibilities that go with it because I can tell

21 you that I see far too many cases that are -- involve the

22 abuse of alcohol so I think that they -- it's why there's that

23 special responsibility put on corporations to make sure that

24 everything's being complied with with respect to that.

25 So .....

-8-
 1 MR. ERNOUF: This is their first offense too, Your Honor,

2 they have.

3 THE COURT: Okay. Well, and that is, of course .....

4 MR . ERNOUF: So -- just for the record .

5 THE COURT: ..... as always, in either a person's or a

6 corporation's favor that they're not a repeat offender so

7 that's always good to hear. That means that the potential for

8 rehabilitation and the fact that we will not see Hong and

9 Lee's back is very high .. . ..

10 MR. ERNOUF: Yes, sir.

11 THE COURT: ..... and, hopefully, that from this

12 experience, things can be learned and so that this -- it

13 doesn't occur in the future and, Mr. Cho, if you could --

14 well, it sounds like your attorney's already going to do this

15 but spread the word with respect other corporations because

16 that is you may be the only person here right now but if

17 you can educate other corporations about those special

18 responsibilities, I think it's a good thing.

19 MR. CHO: Thank you for your kind advices.

20 THE COURT: Mm-hmm.

21 MR . CHO: Appreciate it.

22 MR. ERNOUF: Thank you, Your Honor.

23 THE COURT: Okay. And that will conclude the hearing

24 then.

25 MR. ERNOUF: May I be excused?

-9-
 1. THE COURT: Yes .

2 (Other matters)
i

3 02:48:20

4 END OF REQUESTED PORTION

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-10-
 1 TRANSCRIBER'S CERTIFICATE

2 I, Linda S. Foley, hereby certify that the foregoing

3 pages numbered 2 through 10 are a true, accurate, and complete

4 transcript of proceedings in Case No. 3AN-S14-01730 CR, State

5 of Alaska v. Hong & Lee's, Inc., transcribed by me from a copy

6 of the electronic sound recording to the best of my knowledge

7 and ability.

9 September 19, 2014

Linda S. Foley, Transcriber
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-11-
 LEASE ACBJliEMJ!fi
This AGREEMENT is made and entered into as of November 4,
2009 and is between Hong A 'I...tc3, lac., an Alaaka corporation that is
located at 720 Gambell street in Anchorage, bueinafler re{errcd as .
''Owner,... and Sharon Gho, 6942 Meadow St. #205, Anchorage, AK 99507,
hereinafter referred to as "Teuot.,.

RECITALS
1. Owner is the owoec of the Samovar lan building and property that
is located at 720 OambcU Street in Anchorage, Alaska.

2. Tcomt desires to lease the Reat.aurlult fiom Owner and Owner

desires to leaae the Restaui"'Dt to Teoapt

3. Tenant agrees to accept the Lease and all obligations ofTENANr

under the lease as this 4th day ofNovembec 4, 2009. A copy oftbc lease is
attached as Exhibit A. Tenant agrees to be individually and jointly (if only
there will be two or IDOIC tenao.ta) liable for all payment obligatioos and
other obligations u.nder the Lease. Tenant represents and acknowledges !hat
he or she is familiar with the terms of the l.ease and he or she is freely and
voluntarily accepting all obligations of the Tenant UDder the l..ea!e.

NOW. lHERBFORE, in considcratlon of the mutual <lO'Yenants,

promises aod agreements herein con1aincd. Owner and Tenant do hereby
covcoant, promise and~ with each otbcn as fullows:

Eslal..lf A () ~
Pgelefl?~

0686ll££L06
/Z
 Lea~e
This LEASB Is Clltei'Cd tnto thl8 41h day ofNoftmber 4, 2009 by Haag .1: Lees,
lnc.. Ul Alub. corporatioo, R.ft:md 10 II$ "Owner," IDd Sblrou Cho, 6942 Mcadow St.
N2os. AK 99507. bereiDaftllr Rfcrrcd to as "Tcum.
For and in COQSidcntion oflb81W\t.t reserved bereunder IDd tbe 11enbt and
COJlditiool .t fonh bcftin, ()Wile( bctdJy renb, denl.iJc5 81\d leaxa to Teaant, and
Tetwnt takes and }CUllS from Owner,~ fuUowins dcacribcd Prcmbes all upon the
foUowln, term$ md I:CII\Ciitloos:

1. ,.,......,. Tile prtnlbelllld 1ft& oovmd by this l..ca&c is a por1ion of the

S.mov•lnn buiJdiDa dllt is locUcd 11t 720 OunbeD Slreet in ~ AliiSb. Tho
leaud area IDd plelllbes 00~.\~iats of approxiJnttely lSOO.OO square feet locMed in die
s..mov-IM buildiag. The leacd prembos include all oflhe ma dlat ls presentlY bcina
uJed for~ boel reteaurmt. 'ftlrousboul this LeMc 1he ~ . . shall be rehtred to
u "'tbe Pnlmile:s."
2. Tenp o{I ~~ The illlt1el b:nn of tho 1..-o *H be b a period of rive (S)
ye:m ~ oa the 4UI day ofNovCIIIIber 4, 1009. 1ho liS day of the kaiti8l ~
lam Is Deoer6bor 31, :ZOt4.

~.Blatt Tcaant 00VC111Ub Uld ~to .-1 o-er tllD ~not duriDg
the lniCialtcrm of 1bil Lauo:

3.1. De ...... ~t~t:

L Flvtl Tboosiod dollan (SS,OOO) per moada Ia 200!1
b. PiYC ThoUMild Five tlullchd doUars ($5.500) .-IIIOIIb ia lO 10
( c. Six T'houaod dollanl ( $6,000) pet' aaoada Ia 2011
d. 1breo peccedt (3%) iDI:ra!e each,... ill :ZOll. 2013
The IIIOOlbJy relit &bait be paid ill~ 00 the .... ..., oto-. ... tlllrilhoul
notice or~ Ralt for cbr.: fll'!l( IDOIIIb lbaU be~- Prot~~ !be flowth .,_., b
nmt will iDcc'eeiJo In Chc tiD af3% ('J.1nc per oeat) tw:h yev. ln adclkloll.. TeiUIIlt WII
~7 aU tbe utilicict .ad maiiiii:DIIIOO t'diCiq to die RMiaurant.

3.2 Lite fham:. lflliJ' ioslaltmcat of1bc moalhly real or other c:baraesdue
fronJ TCG~U~t sba1l not be~ by owacr within nve
days aflef aid IIDOIIIIt i$ due,
Team lball t-Ytc Owul::r ueddidotlll n:ut • lllfC ~equal to T• pan:ent(lO%) of
tbe deliDquaJt payment for e.ch IDOillh after lbc •tt wu due, ' - iD oo ewnt l1lOnl
lbao the lcpJ maxilltwn oo $UCb put duo atnOIJI\ts, phu my 1110n1ey !Cos mclll'nd by
own<:r by ~ of lbo &ih.-e ofTmlnt to t-)' rent and!« OCher cllarp whoa due.

0686t'~U06
 S. Oe::1t:r tal gp; T-m is pcn:atwo(l) 1M year opionl to llldaMf the
term oflbeLcuc. TCMalll to &ive written DOtiecofhtr intent to renew the; tam oftha
Lease fO Owlta It . . . alacly (90) . . , but lkJ llk1nllllla oar: year heiR tbe axplntion
ofebc iDitW ecna. HoweYcr.lfo.n.or ila tidly lltisfied witll TCGIId, or ifT..u is
in dcfnlt oolllo dlec of liviD~ tbo D1ltico to CdDIId dllllilnl of abe Lcuc, lbe IIOiice so
c:mnd lball be We&etive.
Ifc&a-.. qflba t.c.e il ~ Ovmor ...t TOMIIl .WI 0:mpt fO qrec 011
1bc -.o.at of tile IIMJIIdab' rmt . . . die Ull:lldad IIOnll.lfOwmir ad T.- Me
UMble to qree a.lhc aalllly l'CDI duriDC lie CIXIICIIdod 111111 lilt moachJ,y leal in 2013
wiU bo Sixlboo!a:nd Six hllbdred dollm (S6.600) per moolh. Tbe monthly teJ~t will bo
l.ocrt:IUC:d by 'I'hRe puccut (3%) cluriq ..:h y.:aT of axteodcd 1«111 lJesiuulns in 2(114.
Abo, Owner lplCS tJw the lc.x Ia filllytnosfcnble by the TOOIDI10 a new
TI:IDEl oal71B 01111 CXllllllldoa tW !be II:W Taant 111111t be lppiM!d by 0wDer Wore
the leue is transferred. Owner bu riablto reject "'.f new T....t CllldidaB if Owner
thinks Chllt he or she b DOt asuitable penon tbr OJICI'8tiAi the aa.nnt.

6. f) . . n.o P'nlaia. .... be Ulld aaly far lllc qiCIIIIIioa of • ......,,

aad far 1110 odw:r J111111C111e or J1U111M11S wl6out Cbts llllpNA wriDim ~ ofOwalr,
wbicJ:I <lOGXOt may ~lrilbbold for liD)' .nuoo 01' ao reuou. No uac of the premises cMI
creates ooisc to a level that dbclatls die 1JUCSb of 1M botells ever permitted.
7. Cnhi!D!! Opcni!P; TCDIOl shall opcniiD hls or her I'C8UIW'IIIt widlin mel
from the Prcanbcs durinc tbD entire tenn of flli1 Leue. Teoaot llball continuously and
111\lnllcmlptcdly, during the tmm IIIII darioa all CllllDmlty bu$incls boors, occupy and
use tho PremiJes for the poqiOICS specified bcldn to the end IN!. !be gue.a, JJillODS and
invitees of tho S.UOvv lno bavo a good CJIIIlity l'lllllluraat fur their u. and t!l\)oymonl

7.1 B. . . OpepS6ot llttg; 'l'be opcnlliaa hour of........._ will bo

ICOO!'dlllalf:
. . _ . ...... (MQ ~~ . . . . . .ts.,tnmhrl~
Fnm 11:00 •to 3:00- MoDdlv to.._..,,
Prom .S:OO pm eo 3:00 ..a Suoday,
Wlltfer BMlr (~ber tt* tml.p..t May ~
From 11:00 1111 to 3:00 1111 Mooday to Saturday,
From 5l00pato :J:Ot• ~•
.. ICididae.
Alia. the a k
7.2 . _ $ '
a• .U._ID
die..._
qt;
atl)' opc:a IIMOiiPHd die operlliaa boun.
llay..,. 011 ~ llolillays.
._1M lliMII& if liD be poorided by TCM&C toOMMr
_ , 1111116 wilb ... - ,.,_.
A,,........,.., pOwalaf
7.l0ww'J.Wit-l!' 2

....

......_.key 10 Owaercalane ~to the

.......-..,ma...
8 , Owaaar a. hilly • _, 1111 hmlr b*W lie tilcla.IU iaMallca:., <>-.
arehD butlll ~Cia siDnt IIMiir wiklpmear tbb or.,-. o@'
E'l~blt !nt\ ,
l)ltJtfl~

0686v££L06
 ·~
7.3.1 M.,.P,.,H jywg;
'Ibe Medicaid petieds billing will be u it is:
Owner ~ Medicaid pelieols to Restllumol and TCGmt provide~ food b them.
T~ then will •wlY foe ~ent to Owner 11 the Utd of e6cll month. Ten~~~~t will
apply Owna 10% (tt:n peroeat) ~from tile tOial lftKNilt of tho orJiinal m:dpt.

8. l:Jml Tenant shall no1 bave to pty fur my of the Jal property~·
Tcaant shall pty tinlely .n ofTmaot's u.eome, lnldc lltld buslnass, employe~:
withholding and pmooal pcopcrty laxes lncludiQs. without limilltioo. any raxuliQ any
and all f'.amitwe. &tun~~, equipmeor illlld oiDx:U ~in the ~

9.had'!,_.. Ownet.anowlodacsiW~~II:il,
tt.ou.xl cton.s) Security [)qxlsit Secwity ~ is
Ta1811t to tbo Cuneo~ Tcuat

JO. Cotdidpl of Prcalw: TC!QIIIIt accepts the Pnmiacs in its pr..at COIJdition
and slate ofhlpair. Temmt CIIJI"CSSf;Y .da:lowJccl&m dilt the Pl'clll1-. trelllbblc for its
.Rtat.urant buass wtUcb 1s auta~tly beiDa CODduc:tDd Oll1bo Premises uader 1ho emu
of an ~ tbtt is be.i!lgrcplaeod by thb Lease.

ll. tu !.!11 UtiMUM; Tenant shall~~ tor BllY 1MQ' forwasr

8lld tefiiiQ" ~loc to tho~ For CXND.ple. if lbo Sewa- fa( lbc Hoed IIICI
Relllamant Is clofced ~of c:ookinJ olll uxd in I'CIIufl8t. Tenlat sbal1 cdl Cor
immed• fiiiiAir. IfOwner paid for 1bo .c~Yice5. Tc:nw bll mmbllnD fbc die called
ICI'Vicel. TCIIIID sblll be ~rpoott"blc for and 1)8)' !ortllt;y pcRQil (40%) of die 1110W
re.ruow.l C01b p.id by Owmlr fur the AJasbn SlmoVIf hm. Tallllllhall be 1apC1111ib1e
for Dll\nl c,as. electric, telepbone, and all otbllr tcMill!l or utilities ldlld Ill or about die
ll.emnraltt 'by Telw:lt or any of ita llconsiea, guQU or tmn.a.

12. Be'r! 114 u • . , . . , ,. ~~term oftlm l..euc Teunt shall

mlhttail1 ill aood n=pQ: Ill ~ belting or VCIItilllion equipment and all bltaior
nOCI8tna:tuml pol11ons of lbe PRmiscs klollldiDt!, wilbout Umllatim, all fi:dura. all
utility lineS from ~ point of enlrlocc into the PraniJeA k> !be point of ldUal \ISII.
TCDIDl'l repair ubi"..,.., ... ll laclucle.lll doan IIICI wiiMicrtn, all wiDdow &uDos ead
door !Bmes, all door bardwen:, door IW:Ip and clOIIIn dwlcca, Ill naolcSinp, 1rfm aad
the like fOr md in 1hc Prwnisca.. TeDallt shall propady IDd tintely cM.alllld maiJQia Ill
gn:uc 1rlpS, cootiD& cq~ waseeiii!'W'tr 1lnDs -=d Oil or by tile Pnimlles. Tllllllt
lha1l repfllcc. .t his cw.o CIXpODIC. all windows lAd Goon for or ID lbC Pranlscs that may
become clefar.ed, cncked or brokeo duritla tb.lllml of this~ In «ddWoa, It lha1l be
the respoosibility of the Tenant dudzl& tbe 1ttm ofthitl..tul) 10 ~ for tho repair,
~ edj\lltJDeul, rep11ccmtat md inspection costs of &1l eledricU, m.tins.
veDiilatlDa aud air COCiditiaalas aod lipting equlpmcal ill the f'rcmitas, wbctber or not
the .-ne were initillly ftnisbed lnd m..lled by T-t. (};l!fit'
~

51 /!, "3~'iid 0686vt:EL06

 Tenant •ball be ~lblc for S110wplowing during wWa- time. Tenant shall
property mowplow around tbc: restalilllnlllrCa iaoll.lding bolb ~ to !be
Reslawsnt and the Molal, and the ~*kin& lot of lilt l'elllmtiOt sido TeniDllha.U
maintain cleanliness around tbe rcsl3unlnt and lhe affected hotel-. In all limos.
Tenant shall~ in flood repair all plumbing in lbe maooms of !be PftmiStS
tO as to miromi:co tho use ofwatet. With reprds to any mainu:nance Of repair work
Teuaat 011 110t illtarfere with lhoopetltilm of tho S&movv Inn or the quiet tnjoymeot
of IDd eca:ss to !he Samovar Inn. A.l'ly suc:b worlt all ba appropriately aiUcldcd from
tho view of guests l.!ld kmll14 ofthe Seulovlr Inn. Tenant sbaiJ not avoid payioa rent
whl!ll l.ocvitabl.; fixillp must t.kc p~ io ~ IUCb " repair onlm f1om fire
cleputmtmt QO lllllkr wbecbar the rcstautaut must be cloled « llO(, durin& lhe l'q)lir
period. Same is tnm !bat Tt:naot .U ,_y reat evco natural or b1mw\ly disasl.«s take
pl.:o such as edlquakc and fR. Owner sb&U be rt:tpnnSible foe, and shall keep In
good n!pair, lbe SINCtUral portioJJ of tho l'nmlisc:s. includiq tbo f()lllldatjoo 1111d
supponills walls, lb£ ~ ccilills IIDII all utility syllGml up to !be pcm of entrance
to tbe PrcuaiJes. Qllless lllcl1 rcpai.rs are llC!CaSilalal by reaaon of tbe ecallsencc of
Te~W~l or lOY ouswmer, IlleSt or Invitee ofTeout, in "Vhich event Tenant shall be
ct:1PONible for all COlts of comp&atioa sUch rcpU.rs.

In any plucnbill3 problems if~ or matled wilh Cbe I'OIIIaWWrt, wbdber

fiom pate or m)'lhing that oomes out of the~ ldrcMn or 6cm ~
inside the retlalnnt. for extn~ple, overflow oflhe pllkinalot right llCJI.t 10 lbc restaurant
beside to tho Samovar lm office, Tlllllllt Jbal1 be retpODSiblo for keep In good repair.
Prior to OQIWDallllq all,)' ~ modi&atlaa to the Prembcs ar Rpair
wor\ of• ~ Rltlft aod prior toOOOIJDtDOiaa llf'J ~,.~or
remodefillg of tbD Pmnbcs, Tcn&Dt aball give wriJtea oodOD to owner oflbo nattn of
tho wade to be perfunned and rhe identity of rho penou or eotity SG!eotcd by Tenant to
pl:ftOna web wott. In the event of an r.meqeocy Tenlftt "-11 use his best off'orts to
provide ~oral oocice lbcroorto Owner 8Dd die ldeo&ity of diG penon or emity
~ to do tbe emergency repairs. Owoot sball be eotided In oilbor or both 8\ICI\b to
rem- the qoafiflcatioos of ~cb par1011 or eotity seltdlld by TCIDilll to perform 3IICh
wort. and fD11Y ~Y dialpprovc of tiQ' penan ot c:ndty 011 tho bu1t of suclt review.
TCDIDI: OilY oot COII&ntt rib lOY penon« ml:ity lo pedilrm _.'Milk 'll'idloat tllo
approval of Owner. .

Owner~ tbe riaht, without mtievloa TCIIUlt of bit or her obliprlom

bemmdcr, to aaop tu:.tiag. vendJatin& &lr Clllldltkloiq. eleclric, plumbiJ!a .00 vertical
~ sertices to !he Prctnixs 'When nec:cssary by RISOD of .ccldent or
OIIIQ'JOIICY, or for rcp.im, ak\:ntiona, replacemenb or itrlproveo~oots of such 8CrViocJ to
the PremU. or IIIIo Slmovv Inn, or wbm prevCidlld tom fiunisbJna mcb terVlee by
-~ ckllays. Ttll.Uit exweouts UJd 8ltfiOS that he or D: ebiH &iw proper
wriaeo JMltice to Owner of1.11)' damage that may OCCIIt to or in the Premi-. ..-hicb
notice, In llle CWDt of an CIIUQJtiiiOY may ioiti&Uy bo orally ~ to o-er,
provided tbeto is a sub:toqueQl writico coufirnwlan oflbe ame by Tllomt to Owner.

s-r /f. . a~'id o6s6vt:t:L06

 lt i$ 11ndersl«ld lhat 0wrtct shiiJ aot be required to ~ aoy r'Cpllin fot
which ownec cbaiJ be rt'SpC)Niblo until after receipt of appropriale notioo &om TCII)J.DI,
provided chatllltCII repairs .-e OCCCSS&I)'.
111 oo eYentJball o.mc:r bo liablo to Tam fur any loites or dlmqea SUSUIMd
by Tc:oaot for loss ofuseofpmnises or cSimqe to Teuota ~Y so tona as Owner,
aftx:r notice, b dJliatutly punum, euy repllrs owner is obliptcd to pedbtm UDd« Cho
Lcate. lfTeunt reS... ar odlenviso tqlccu t~ ~:t&lc:t ~ O'llb repai:t;.
maintain tbe Pr.ml.aca, or iC io diiD ownet' tJu.sincss juclplcnt rqJ&in or lllliAIDulnce
bave ~ ~ty p«fbrmcd, orlfOwuer sbaJJ ~ Rlqllln:d to 1Mb~ or
ltNCtl1nl rcpaln by teux~ of the eoa:JIA•t aor. or 01nlsaloru orTc:rwtt or hll or heir
ewtolbcn, pc1lb or invftca, then in ay of IUCb OW'UIIJ o_. ebiiU baYO 11\c opt, biJt
a011ile obtipiim. to dfect liiiCh repdn or~ oa beb&lt oflind ror lhe IClCOUIIl
ofTeunt In such ownt l.bo COilS .0 cxpMdod by Otl'llet all be ""-bum.d by
Teaam a addltional rent and will be pcld on dwt firsl of the ftlOIIIb tblJowina a
CQIIIJIIecion of sucla nspain a itc:aiJ:ra6oa of sutb CO!Jls boiDc provided to Ttn~nt.

13. Cp!!l!llug Wll4, .lAm; Te~~~~m $ball, .a his or her own COS( and expeo.se.
execllle and comply wtt.b all &dare~. ..._llldloc* IAbq udall pM~.-eotlll or quat.
~ brwl, ~ IDd BDlde!Jncs ~ylo eftOct .ad aU adcliOOoalllld
odlCt lawa. rqulatioos and auaatlnes wtdch may~ be eoiCIOd 01 ao lnlo offia
relttjog to the Prtwnlscs and Teoanrs u.c dlefeof. 1'1tb m.ll spec.it;c.lly iDeJudo any
actl011 ~to comply wkb die Amcric.w with DlabWtia Act wiCh n;speot to the
illlerior oftbe reated pnllllila Ott£ If~ IIIUil be any -1« modlftcciDn offhe
mcrior of tile lxUicllng or ICOCIS to Gao hotel or the teSt1lunDt so comply Wid:! !bat 1e1
JUOb lball be d0011 by~ Owftet It~ Olml!r's $Ole~ T-.at qrcc:s to II\)'
teaSOIIabla modlficatione of access, slJ11110, stairs llld &ttB pcd'aru)cd at Owna's
eJpCIIIIe at mt.Y be . - r y to oomptywiet !be Am.

Tfmll!t will uot cal$ or pe1mh to be ceUied lilY let or pnctic:e by nejli~
omiNioo or o«batwbe tbat1110111d lldvettely al'fect tbe eewiron-• or p~m~k lll)'ttllnJ
co • doae that wool6 vklUDs ~of aid ..ws, ,...,.,ll rioe•ot &Wdellftoc. ~ ~
oftbil OOftBIIIt an be a CIIIIIBriaS "'-:!~ lllld-' of de&uk lawodcr. TCIOIII)f ebell
have no claim tp.insl Owoer by reaKICI of lilY eblftaes 0wntt 111111 tDib wllb Npect
to tho Semovltr JnD buildlac or to Che Premlaos wbaa IIUOb c:hat\p ate made pu.t'IIMIOI to
-wlicablo 11rws. rcpJatkllls or~
TCftlllt lbatl allo cxccute lftd comply with alltulel, rqpaJ.tjom and
~IS oflbo Bo.rd o(Flro Uodenon:!ters, cho inswanc:eCIItrier(s) fwOWrlet and
Olbet orpnilations ~ eslabliah IDsunmoe rae to cbe Qlcllt tblt tho ame or ~of
dMm ItO -wJieable ID lbe Pnlnises«to the ute and OCCIIIpwlcy oftbe ~-by
Tmaat.
14. MitJ"9t tr S.""*'*!c; Tcmot ~ qreea IMl be or .sbo will QOt
~ b~ monaate or eocumbet dlb r...c..oOf' ID)' ·iDI«cst 1hcrdll or IUbleue

-
or IIUtl:t or pctGiit the ~ or my pldlhareo( to be .-1 by olher, wi1111Nt tbo
prb w.n COIIR.tll! ofOwla In etCh iruDDoe. which caueac will DOt be~~

0686\lt:£L06
 Notwithatmding 1111y aKignmeot of this Lease, or subldtina of the Premises, it is
aped end ondertaood that Tenant ahall n:main primarily lilble for IUld &ball DOC be
n~leucd from the ~ of all of the 1QW md conditions of the Leuo:: which the
T~t i' ~ired to obtcrvo .nd pcrl"onn.

It 811 be a conditioa prcccdaJtto the C003CII1l of Owner to any a.sslanment or

sublcUW1 tbal Tcaaut be in Cull compliloce With aech and every ooe of die Ierma aDd
provilioftl of this te.e. Ho-ver. tbe ~of~_,. be wktlheld
oo<witbstalxtiog such c:omplilooe. If Ovmc:J 8ba1l CXIIDeJit to lilY perticullr assipment
or mbleabl& such 0009Ctrt sball be deemed lo be~ to tha1 pll1ieu.lar lraOMCtioa
only aad bOt to aay OCbor or ~ lluiSidio!ls.
{n addition to all nlher nhll~• irn,.._t"" ..,..__. . . _.... T - ' ..1 ...11
Jcimbur1e o-. upo11 dcmaod, for cbo 0011s of any such IS3ipn!.c:at or JUbleUing
iocluding wilbollt ~.~nUtation. tho CO!t oftraDSf« taxoa and recordation fcca tmd the
acrual cost of &I1Y iuqlliry or inW$iption I! to the ~lity ottbe PfOPC*d
U&ipcc or~ and tile lepJ com illcurred, ifQy, m COMCetioo with std1
assipmeot or Sllbll!llit\g.

lS. llaDI'!yWmb eM c\b!P@pu: TCOIDtm&)'ool mab &{ly alta11tions or

improvements to the l'rcm.bes without tho prior wriUeD approval of <>-et. Socb
aJ...nons tnd improveolellts, ifapproved by Owner, sbaU be done at the sole cost and
el(9CI* of Tenant in ICCOC'diDI:o with AdliCIID.s IIOd cooditions dud may be reuouably
esW!Usbed by Owlw. AU at~ Qd IMJlrovemen~a sbaU bo doDo llld parfonDcd in
a sood and W<lliananlib manoer usiJJ3 ooly first clu:l quality fumlshiap, lbttllres and
equipment lllld maletiW IIOd !!ball not a.rc.e with die opcntl!lll o{ tho Samovar 11m
by o-. Wbe:n Ibis l...eac ia tl:rininaod Tcoat shal~ if~ 1o do so by Owner,
lfttOie the ~ to ~ly the ame oonditioll as oxisUid at the time this Leuc
is a.eculrld, 1118.S0Q1blo wear Ind. teat cx.c:ept ed, and Tenant b.! I n:pelr ay dam~p to
the premiles "*'itiA16om lbo iDIDlllllion or n:moval o.f _,. ~ partition$.
fUtures or equipment laalkd by Tenant.

All ot eudl chan~ additions or allttatioos sball be made ~!ely It tho expense
ofTeaant IDd Tcmut lllf'lleS ID protect,~. Aft lad hold Owtler' hlrmless 011
IICCOIIDt of uy bl,jury 10 1ll.lrd pcnou or property by ~ of any sacb. cllloges,
lddJtlom « alleftdoru. md (() proCiDd, ~and lllVO 0wnet bu:mless from the
piJ'Illtnl of IJ1Y cla.im of uy kind or c:banlcter oo IICCOW1l of bilb for labor, materials or
utility ~ Cum.lsbcd. or claimecl to ha~ bclan lbmlabed ltl conaoctiOII theRwitb. It is
~ betwcco OwDer Md Teuat dr.lr o.mct bll DOt be n:qWed to eecute an
acbowlociperu of riJht to lleo pot~U~nt to AS 34.35.0 10. ot "8o u now oaactcd or
baea&t ~m~OIICicd
TCDII!t sblllllOt permit atJY II1ICCbtaics' or similar lien& to be lodacd apinst or
remtin upon lho ~ fur labor pttfhiUiild or~ fbmitbcd to TlllliUit, or
c.laimcd to ~ bcell pctfonned or t\mliS8od, oo bcbalf o( or ocberwise at tho clirec:don
of or with the cou:ot ofTCDMto ~~wort Willi pcrlortDed or maurials were ~
ftlmisbcd ~ or a&r tba oommencemcnt of Ibis Lcbl. f..Pt:$-
'IUIIIltA
fw7gU~

S 1: /S . 3D'iid 0686VE£L06
 Owner may require Ten.W to furnish evld~ !1Uisl8clory to Owner 1bat Tenant
and any COIUniCIOr or firm hired by Tenant carry satisfilctoty iuunnoo insuring api.nst
all tUb normally In~ ap!Mt bt such~ wll.lda polida wll...e "'IIU
u
u lldditlnal ._.reel wbl=re tpp~Vpria~

Except for those Item which Ownar specifically ft:lqueab T~t to nllllOVe from
tbe Prembcs, any altemloos, addirioM, improvements and fix1urm lbemn in!talled In
the Premises and peid for by the Tenaul stw.ll ~tho propeny oCtho Ovmcr when
thit Lease trmlinaiCS.
16. . . . .llty; T..m ....,lademDitY Own« a ave Ormerlwmloss &om
all claims, su1ts, .mons, ctam.act. lillhility uxl expedite (iocJucliDg ICIUalllltOIDcy feeJ}
Ill coanoction witllloss of life, bodily or penooal aulltY or property damaae ari!ing
&om or out of occurrence em. uport cw at thl; Prcmise8, or tho OOCUpiDC)' or usc by
TIID8llt of the PrmWm or any part tbcno~ or oocaaioaad 10lely or in pert by any liC)t or
omission ofTCMilt, his or~ aac:nts, COiltradQ(S, empiO)"CCCS, ~CrVants, lnvilCIS,
llccoRos or COIIIleJSiooaires. either withill Prcmites.
Owoer IIIIIIII\Ot be 111Sp00Sib1e or liable ai!I"Y time for any loss or damage to
rn~ stock in lralk, ~t. fbt1ans or oda« personal property-ofT-m or
to Tenant'• bluioea

Owner tllallnot be respclftSible or liable for .ny da.fcd, lalaJt or OCbctwise, in

the Preallht3 or tbe Samovar Ion buildln& or for any detect, IIII!U or ~i.le. ill any
oftbe oqvipmeot. maclliDcry, u~ appliances or~ 1rilbia lhc: Premises or
tbe Samovar lnn buikling. Ownct and OWDII1's aaents and employees sball not be
liable for, m4 Teolnt WliW:S all claima for, loss or daluae to the butiuess of TCilalll «
ciamlllc to any J*1011 or property 3USiaiDed by TtMIIt or any pc:QOD dlimina lllrouflh
Tanant reeuJtlng In my accidcllt or~ in or UpOOihc ~ or any otlw part
of tile s.movar lDil buiJdine. Owna' iDikamitic3 TCIIIIICit from my cJ_Iims, IUit ICdoG,
~.ruing out of an.r OOClUD1IIIOC outside of tho ~t pre~~~.bos md oaUICCI by
OWIICI's~.

In the event that Owoor lila! I bo IUde a perty to my litiplioo OOIIIIDeDI:ed by

111y ~ ,.aiDst TCIIII!t, tbetl Tt:GMt aU ~. dDbd. prollllc:l aad bold
Oli'IICir Mnale~~ from 10)' liability lrisRig therefi'om ad all pay aU cmb IIIII
«1XJ101*8 of OWIIDI', illclllding IIC1Ua.lltliDrD.y lee$.

S1 / 9 · 3~Vd 0686 tr t:U06

 B. Comprcbcmive ~I public lirlbility iRIIIlUCC on an oc:cunmcc buis wilt!
minimum limits of liability in 111 amount of not ICIISS lbao SSOO,OOO.OO fur bodily,
penonal iJUury or dMdl to lOY 01111 penon and &o tbe limit not las than Sl Million fOI"
bodily injiJIY, ~ iqjury or clelfh to mote than 0110 ponon aod in an AltlOUIIl not
less than S\00,000.00 with respoct to dlmaae to propart)', including Wider damage and
$plinklc:r Jeabgc lqalliabllity w!Heh lnsumnce shall oontU:I an endorscmmlt rwnlag
OWrtcr as m addltlooal i~Dum!.

C. WOJb:r's Compmsmonlnsunmee and Unemployment Insurance which ~~1

contain an oxpres$ waiver of IllY riJI!.t of wbrngatiQII apinst Ownor. AU policie:l of
io.suruco to be dUined and fDmi.shcd by TCI!mt ~ shall be is!lued and caniad
in the ume ot'Tm.t. OtiiUIIX' all be ...-~ .. ao addidoaal iawed Oil Che polioiea.
All JUCb policies of insunDcc llllall bo isMd by a finalally respoosible
IXJIIIflBIIY or c:omp.ua IUtllorlzed to - . the policy or potlciot MCI liceasod to conduct
illluniiD:I ~ ribia tbe sc.ee or .A..a a shall COilllin lbo lbllowin3
cndooliiiMIUfS'
A: That any $uch iDsannQo iiM1l DOC be IIUbject 110 CMOCIIMioo, ~or
ma1erial cblnps cxcep~ 1&7tbirty (30) day& pfiorwrillco oot1co by rqi:dmd mall co
owner byche lnsunncDcompqy; B. That0w11ersball not be llabla for any dlmllgeby
fire oc other~ co\'Ued by suctllalumDce, oo IDibcr bow cauted, it beirl&
undeJsCood that 1'~ lballlook 110lely to lnswu or a.utm .&lr reimbunlcment.
Owner tnd T-n waive lbcir right to recovtr darolacs ...-. eiCb otblr fOf
ao,y raa:sc:m ~to the~ lbc cllmlged perty m:oveq iDdlmaity tom ils
iu..nnoc au:rim. Any imUr1nce policy oblaiDed by TCIIIllt dUit doel n o t - OWDor
u anlddltiollal imunld shall coatain m exprus wtlva of aay rilbt of &ubfoptioo by
tbe i~~SUn~Dee company qaiml Owner. Mh!JmllrlllinW of 1111)' imllranco COYMgc
required to be c.ried by Ten.at mall not limit 010 liability ofT..nt to Owner as
~in this Leuc.

18.ldaW LiM s ! j,HI"" JM!t!aC!fi 0wDcw 0U obWn Liqwor Licuse

Liability~ for and applicablo to the Pn!m.i&s in its own Dime. c.t or boftn
July I, .cia yar. Tcaat lbaJ1 pay at nlimburso (IWftiO( the adUil eost of the Liquor

I»>lity 1nsunDcc ffV«'' 'JW--.

L.iclmo LWrility Imurmce fir eacb year. O.U. will rcaew tile Uquor Licmse
tbtl tam oflbt l..eue.llldudina lOY _ . term.
OwDer sball~*J b tho 10181) cost oftbe Liqllar IJoeale Lilbillty lmlnDce duriDa
earJI ,_,., Tcaol lllhUI nHmbuno OWDcr for tba **-! COM of 11M: Liquor Lic:lanse
Liabl1ity illlllmiCC wllhiD Mall (1~) dl,ya oflbc dilllllbc lnlunale PIUDium is paid by
own.. Tqwgt jill! be !'!SI!OII!ibJe gd OIY for tbe opnptl 1Jaaor lJr&me n;nowal
M And w other 00@ to rt;llC'!fC or maiDtaill tbc Uqgor li9mle for tbo Pm!li~e~,

S1 IL . 3:~Vd 0686~Et:L06
 Wll, upon rccclpt of lhc net proc:eeds &om such inSW'IIlOI!, undetllke the repair &.1\d
tettoration. as applicable, ofthe PremiJes and tbo Samov.r Inn bllildins to "'bslantially
the lUIIe condition u ex.islcd prior to tbe cuualty, wilh lldl cliabges u owoar may
I'C880tlably desire to make. As 111011 berellllbo tmn "1101 procecdt from such
inannce" sball111G1111hlt portion oftbc proccods ofinautltloe thlt is he and clear II)
Owner after deductilla all sums requiRe~ to be J)lld by OMMr to llli> bolder of1ftY
morfNC on or qaiDtt the Saraovv Inn buildiAa. as well u all ~and lcalilOis
incwat by owner to collect sucll insurwJcle proececb.

If lbero Is any loss or damaao to the Pft:mbes not covered by insunoec oblained
by OW!Mir, and If tho ctem.,e b c:amed by the oealipoce of~t or bi• employees,
apu, invi&Dca oc ~oaaitu. or if' Tenant fiUla or odl«wilo ref\IJe, to ruko the
pmoecda ofbis iDswance attilabte for repair md RlStontion oflixtw!:s, lbmiture,
fumiJiliJI&I, floor co~ trado equipncot ad other property plac:ed by Tenant in or
upoa tltC Premitcl rcq11in!d to be IDauted by Tent~~, then, In Ill)' of IIICb e-u, t11e1w
sball btl oo ebatcMcot of tho minimal montbty reut una.. cnmcr elecQ to c:aDOel f..ado.
Ten10t sballltave lbo rigbt IOCMOCI thb Lease in the ovurt of a loss t11 dmlage
or wb1c:b preveou tho opnUon of tbe raslalllallt and replllrs are oot COinDliiiCCd wl1hlD
ninety (90} days of 1be da110 1M dlrntae oa:wred. Ourloc tile time lhe rcscaunnt CIMOt
be operiiCd lbonls!Wl be an~ of all rantal clwJes.

20. leP*tipa !Ill Nnft: Owner aJkl its--. wnployec:a ami COIIII'IetOD
sbalJ have lbe right of..- 10 cho l'rt:mi!es ~die ft1811W busioea hootl of
T~ fur the pqpose of imUIIiAS. allaiD& IJIIilltalftln& acljulting llld rq~airi.ng all
utility, ......,_,ina! or~ equl~ MVieins tbo Prcmitce inctudloa. but nor
lim lied to, w.rt JlOCCS:IIJY to comply with the pro~ or any man6atory or YoliiiJWy
fedec"ll, ....., or munlclpei-.Y, air, IIOdc uxJ/011 Wltl:l£ po\bltion and elmilar law1,
st8tuteS. ~ onkrs, aukleJines or propos.

OwDer !lid lis ..... illcludiDa. but DDt lln*.d to, its . . . , aad luuraace

mab--
COIIIPfiQY iDipecton lbiU bl¥8 no fbrtbet daht to lldllr d. Pftmltcs to UMtllac; or lo
lftspoelioa1, ~ !ddidons or aJrctadocD as lllllY bo doaJICid _ , - for
cbc aafBty or pmeMtioo of the Prealilcl or tbo S.OV... l.a bulktinl. HDWC11tr, the
~ina Dll DOt be docmcd or cot\llniCd ., an obliplion 011 the J*1 of OWDcr to
undertaQ Of effec:t any such reptir other thin u elqlf"OSdy required in 11111 J..ceso.

2l.tmn1'ee tiWrnt DuriDa lhe tam ottis Leise TOOIIDt lhlll:

S1 / 8 "3:~Vd 0686 17 ££L06

 D. Not ..e or permit to be ll8ed any portioo of tho PNmlslll for my WllawtW
~ of for any M:tivity wid! wbk:h would DOt pacrally be consldctcd !!ppi'Opriam
fur U.il• propatics.

22. Mt9uJe'• Yt•: Tenant covenants not to .uffiw or pennit any

mcdJaoic'J licnJ to bo filed asainst tbe iDteratofOwnororTenaot io tho ~or
the SlnlOV&J' Inn bllilding propany by IQICCI of wort, labor, scmca or malt!rial
suppUcd or clalmtld to baWl been SUWlkd to TCISIOt ot •yoac holdioa the Prembos or
any pirt tbcnofWoilgh ot WldctTcnant. ffany Sid\ mecbania'• lieo shall ataoy time
be filed aplnst the ~-- or the SamovllrlM prcpeny Tcaarll an, ....itbio thirty
(30) days •Iter rcccivina nodoo of tile ft1l.a& ~ c:auee tho._ to bo disc~ of
record by peymeot, dapolit. bood. onllr of a rourt of COIIlpl!tllol Jurisdictloo or
othawDc, mel Tc:nant bcrcby *8J'CCS to ln4etlltll6' lOCI eave OwMr hum less from 11\Y
legal expense which Own~ may I'CI80blbly iDout • &JC:Nit of tho fiJin& of the lien
and/or 6-or:D a~~y los$ or liability u a result of lieos filed apiost lhc ~ or the
s-v.r hm property.
23.lldalic!tlijD g(PirtiM; At all limes and Cot all pwposes W\def ot
.mlllelialto !his lAse T Cllllll tnd Owoct aball have oaly tbe rcl6tloDibip of lan&ord IUid
ts1111t. Neilhllr <>-nor T-.t ia tbo (*tla", IFitotempioJee oftb«: ~-

24.Difllln The OCC1II'ftiiiCe of.ny oae or lllOf'O oftbo rollowing eftllls lhall
consDcuCe a default aad braDb oftbis Loaw by T..-t: .
A. The &ilan: by Tcuac to P'Y cbc tall a IDCI wt.dloiDil ad! &ilure lhell
eontiauc tor a period of tell (10) dlys..
B. The vacatiaa or 1bladoomalt of 1be ~ by TCMOt ot tho &illlnl of
Tenant to be open for business (oxoept ill tho~ of dam.lp or clestroodoll to tbc
Pnmisc:s whicb pm'eals Tcmot &om COliCluctllll buslnc:sl) 1\r more lban throe (3) dayL

C. The faihn by ,.._Ill~~ pocfilall_,. ofebltmlls, ooadilioas,

qm:mCIIb, obliptlons, ~ ot PfOYidons ofthia lMIO to be obi«Vcd IOd
pcrfonnr.d by the,._., odlllr tbM tho fililwc to liiiiY tbe IDOiltbly rat, Where aU
&i1wo Dll tc1Dti1111t Cot a period oftwaty (20) days t&r ~ llOdce tberoofby
owner to Tenaat. Provided. ~. tbll if !be naturv of die dtf8uk by Tenaot is ~
ttlaunorc than twenty (20) days aro ~requited for ib ~:-, Ta.nt lball not be
deemed to bo iD da&ult lCTcant COIIllllCftCeS 1\d\ l:1ft wkiUn such tweAt)' (20) day
period md ltaaafWdilipod,y ~-"(;11ft IOocaplclioG.

D. The mMcina by Te11111t of 111y gwnnl ~ b IIIII beoefit of acditon

ortbe lillll& by orepiJlSf Tenlllt of a pelitioll to bavo TcDIDt .Vwlz-d the t.uWupt. or
a peation fOr ~tion or IJ11IIII'IOICDli&Ddet ~ law rdllllcd to a bulknlpccy
unless. ill dac CUD ofpSidoD ftk:d ..,.m. Teaut, the llmC b dilllliad within sixty
(60) days offillq, or tbe ipl)Oinmeut of • tn.ti!CO or a ftleeiver to tab poaeaioft of
substantiall,y all of die NldJ ofTmant wtw:tc aucb. tr\IMOG ill DOt dllcbqod wltbia
dlirty (30) days after appoinlmeat. "" ~
lodlillltA~
bntlotl7~

s1 /6 ·:;r~va 0686t'EEL06
 ~ . Rpredlg US!OJ Delt,llt; Ill the ovent of any defW!t or brCIICh by Ta1811t,
Owner may It any time lhcmafter, with or without QOlJco or dcm.uld, and without
timiLing owner in the excrci~~e of • right or remedy wblc:h OwDet roay have by reason of
sud! dcflult or ~h:

A. Decllle the lease to bo tumlaltad 111d tcnnia•o the ript ofTeaantto

~oo of tho Jlremi3e31114 iu rul:b event this lAse sballtarm.intte and TOlllllllhlll
i~y SIJI'I'CUCb posseuloo of the PrandQ to Owaor. In such evau Owner shaD
be cndtied to rcco¥Cr from lha Teunt all pUt due l'lllllllld other cfwtes due under tills
Lease. the t1Xpcmea reletling diD Premt~~es, includlae die cost 110 reoovate and alt.a' tho
Premi$cs fur a repblccmtmt tenanl, rwnt for tho period of time batMcallc:nninltion IDd
rc;lattiDc, .etual alromcy fees and costs, the di~ lfay, bdweea amount ofrc:nt
paid by a tee~~ laJIDt and the ~mount of rem ft!lluind 110 be paid by Tetwrt under
this Lease and any otbet damaaes awarded by a 001111 of eompt'MOt juriadielioo.

B. ~ poaeabJ. oftbe l'nlmlaes widloal ~Of lillY court llld

without -.dt to lilY kip! process or proceeding.
C. Scelc IIlli obtain an injuoedoo to epjoin ay breach Of lhreateMd bludl by
Tenant and invoke auy risbt or remedy allowed 11 tal" or in equity or by st1tu1c or
olbonl'i~~e as though~. I\IIJIDWY tmn!aatioo del otber mnedie•- not
provided for Ill !his Leue.

D. l'arluc lilY adler remedy now or hcndw aniltb&o ID Owuc:r UDder lbo laws
or p.diclal decisloae oftbe S. of AJub. ·

26. P.pMn· lf this Lease Is tcnniDated bocaUIC of a dellwlt by Teunt or If

Owner f'04deR lbe Prwnises by _..., dbposletllao prooeadinp. ejol:donl. or by
any suitable action Of proc«dlll8 It law, or ill equ">', or by~ or by fbrce or
~ TCIDII!t eball pay to OWou as du\ages, 1t tho alec:tlon of OWMr:

...a
A. ArJy UIOOIIl due as the Dlltimlllll relit thro.ab lllld inr::ludlqlbo time
CfWDCf o1a1nt a rep!~~ {or tile Pnlmd-. Te..t *'laot be c:natled to M.y
credit or o&t oftbis-... !tan. ~ u aac:h mbUmal aanuel red~)' haw
ICI:IIall1
bc:en coUec:ted fiom -r-ot, a~ teuDt or &om ~nyooc c:be. Nor
.U. Tc:DIIIi bcCGdtled to .ertasadcfaatetbe tiilureofownerto use &ood 6Uth
dfons to -.e. roplloemellt tallllt for the PreiDDcs.

8. The diftinnce, if any. between lllcl..-.r of... required to be paid by

Tc:uaut lllllfa' 111ls Laue and lbc amoaat of reat plicl by a nlpil< I Dlllllt \lnlnt,

c. All cost~ to l'llplir, rcaavaa or~..,~ tbr • ~ liiiDint.

D. Actual CCIIII and lltDrUf feel bac.mld by ow.- bealaJe of cbc bniK.b by
tile Tenant.

Sl /01 ·3~\fd 06S6v€£L06

 B. 1bc IDtal damages due by TIIDIIIt s'-11 not~ tho .:twa! demaaes
lllltlined by Owner.
F. Nothing conlaincd herein sballlimit or ~ucliU the cigbt of Ovmer In any
iasoivency, baDbupCcy or RIOrpllizeion proceeding. or 11\Y OCbcr proceedinc based
upon a dc.lault by Temmt Wider tbls Lea.!e, to prove and oblaJtl as liqui4ated ~es or
daml'ges arisioa out of Ill)' tennioatlon of this Lease the mulmum UTiount ~ by
*"Y -.rute (){ 1Uie ofln, whethef IUCb IOlOIDit bo CJQ~~Cr, equal to or \au than the:
ditfereaeo bc:twoeea the ~of the lll'linimalaonaal Alllt aod lbe percc11111ge I'Ulf and
the lclual amount of rent received by Owner after ttrminllion or breach by T~ 1bc
amount of .relit obcalncd or reaervcd upon n~lci«inJ by OwDer aile.- default by Tmaot
shall bo deaMd to be tbo filir and ~~value for the PIY:miJr:w so relet
duriaa tiiD . . . o£dlo ~-
27. J.ml!!e!t Do•l•: If all of tho Prem_, M c.lcen by the power of
eminent dom.WI cxm:islld by Ill)' lOVCI'lliDCiltal or quut-governmental authority. lids
Lease limn tmninate ae oflhe diMe Tcaaar b rcqulnd to v~a~~~ tbe Premlrie:s and die
minimum IIIIIIIAI!a!t, pctCCQ~ago rent and other dwFs ct.: hcnlwldet cball bo ~d to
that <t.te. The term •e~J~~ncnt domain• ~hall inol_. the taldag or dunagins of property
by, lhrouah or W1dcr my gove:mment or qiiiiSi-FVMUDcutal authority and uy plltebue
ot acquisition ia lieu tboreot; wbcther or not thc: ciam.U. or l.llcia& is by the
aowc...... oray ~panoc.
If more lhiD 25% of the floor aree of the Prcml8es .diNt bo labn or appropriated
this LeaD ....)', at tho optioa of eilbet jlltty, be ll::r1ll.inuod by written DOtice &I vco to the
oCher J*lY not 1110n1 dlallllirty (30) days after Owaer ud -rc-.I!:Celve notille of the
laJdas or appropcil&o, IIIIIIUCII ~ .t.l1 be etlbctiw: aa oflbe dale 1k T-.t
It req_uind to WC111e cbe portion of the Prem.ites 10 tabn. If tbil I...eaac is 10 let'll'lillaeed
atl~ninlmum ltiiDDal nat, ~ 1'1!111 awl otbct c:haiJC8 dUD hweun<ler at..U be palcl
to 1he dUe of111tmiDalioo. WbeocYcr Ill)' pordoo oCtbe PravlteS is taka\ by emlaant
domain Md dab L.cue is not ttnnlnlllcd, OW1XIl' aball. ll lais ~ prococd wllh all
reaJCllllble displtcb to restore, to tho exteat tbat It is~ ~t to do so, lbe
renWnder oftbo Prem.lsel to tbo ooncfit.ioa il w.. ln immod1elcl,y prior to 8UCh cakins·
Te~~~~~tiMJ.I,.IIl hU ~ pooecd wi&b all Jt:UOIWhlc dltplitdl to rcllt<n all
fiDIIra. t'uraitm, filmiiiiiDp. lcuahold lmpovenumu, Oocx- cov.tnp and
~ 1D t1ac ante ccadllian tbey 'MI't In lmmcdlltoly prior to suth taldq. Prom
abe dlle TOIIIDt is ,..ired to VICifO tbat porno. of die Praabellaba, lbe minimum
111111U11 nllftt 1ba11 bo ralaced Ia JII'CIIIO(tlcm to thl - o f floor 11*C t.Un. u
~ 40 the ~ ilet of total floot spiCL

Owner sba1l have the riP to collect end rcoeiYe the codre dalulp awlrd or
paymut for 10y., by emiDent domab1 aDd Tenant $ball make no clllm wblbocmlr
...-.. o-- for dlaJatCI b a.mialdl» ofW. kaaboW ....._ ia dill PraniiCI or
b' illlal!laoc witlllis busiMa. Tlmllltlllnby .,...IDd asipa ~ o..r ,.y rtpt
TIMI!t may have or ~fter acquins to such clafttiiCIIDd ll8f"eeS t o - * IIIMl ddiftl' ~

I:UibltA
P•l3R(S1 .

51 /11 . 3~'id o686vt:t:LD6

 such turtbtr lnstnunei~ts of IISiisnJnent as OIYner may from time to time req~. TCIIIIIIl
lbal~ however, ba~e lht right to claim fi:om the coa4enulina authority all compansarion
dw may be recovc:mblc by T-..t on IICCOUIII of any loss inl:qmd by Tcoaot in
rcmo~iq TOOIIDt's IMRlbaDdtse, filmilUre. VIde ~ w oquipacot llld Cor dau1qe
to TOIIIIlt's bllsilless provided, however, liMl Tcnent may c:llim JUCb d~~~a~ges only if
they 8ft: awudccliCJ)IIaliely in lbe 1111iDint domain~ eDd not as p.rt of the
dalnap of Own«.

A 'Wedie! c...wm- Welm; lt Is UllCIIntood lftd agreed that the

remedb of o.mc.- haauader are 011111ul8tive and the e.lladle of my riabt or ramecly by
OWilCI due 1o a do&ult or bn.ch by Teamt sball rMJt be clcomod a waiver Nld !lball not
alter, affect or Jnjudicc IllY rilbt or n::mcdy ..midi OwDer ma,y baw under this Lease.
or by law or in oquily. Neither tbc ecoepteDce ofrcat nor .ny eMber ICb or
omiMiona of owner at any time or tim1111 aftrlr the ~ of my event authorizing
tbe cancdt.lbl or fodclluR: of this to- llball openeo as a waMir of allY pill or ftdurc
violdoa, tn.cb or fillllvc ro acp or pa1onD. .oy ClCJftUill, earcaaCDt, tam or
coodltioD benof or to clqlriYD Owner of hie riattt to CMcd or forfeit tbJs I...mse, upon
tbo notice provided for bcnlin.ll any time that cauae fur aanc:ellltioa or bfeitan may
cxiet, or be COIIStrualm as at llll)' OOie ro ~ OWMr fioa\ (lfOIIIpt)y ..:isins m~y
Olhcr opdoa, ~or nnrdy lbBt it might have liOdcr my fiiRl or provision of this
Lease, or lllaw or in cquit.J. Tho .fiWure of eitber JII"Y to iasist in lillY ODC or morw
inllances upon the strict pcrfOnnlocc; of any cove-rt. lllfCCIDIIBl. tDnn or condldon
bcreof shall not bo COIIIDued u a _.vet or lel~liltllaatt ofdlo t1s11n pldhnDuce
SllCb one or more obliptloaa of dais Lease or IIIII risht to CltCirCisa my SQCb ript,
or
remedy or clcctica.

29. ~ o(Ptmap; It Ia spcelficaDy llftdctllood llld aped IbM

IC oqiCMc:c ofMY- by<>-" wbidllllell tblll tbe aiiiOIIId caimod ls duo by the
ow.r, llllll not IIClU. nor be doemclclllo be, a Wlliwr of IUCh claimed UIOWit or a
CWJprV~J~ilo or~ 111111 satillfBction oflbe--* cllilaed 11 due.

30. Mg4jQeli9M: No ............ hlndar lllldc ~ otnlflr and Tenant

..... bo ~to -..c. modify, Wliw. re1elle. cliJahlrae.ICmbalte ot eBiect Ill
ablmclcJnment of lhis 1...-o ba whole or Ia put unlcl5sucla II"X'IIltlll Ia in wriliDa.
exprellly ldn to d\1& Leellelllld .. si(IOOd by bolh puties.

Jt.D!kll!l o.w EWrWf!ti o-..,.....w it • r;an riahta

Malboril)' to cuc:u1B IIIII pcrtixm lbe obliplioas to be performed by it under lhis Leue
co-ma
111111 to par the leudlold est11e bereiD CI"CIUCL OWDcr IMl Tf:lllllt.
upoa ~ tbo rents~ b=illiDII l*f"Olmiallbc ~ tams. povilioos,
eoaditiou, ~ llld ~beND( sblll.,...,ly ud quietly hate, bold and
cqJoy lbc Prcmi8CI for tbe Ulellllld pUtpOIICS - Cot1h brRiD.

tolb6t A tJ-(2Pf>
PwlhrtZ~

s 1 I G1 · 3~V d 0686t'EEL06
 32. At19rtft Pw1 If eida of lhe .,.rue...-e required to btina or maintain
any action, lneludlng aasertioD of liD)' c:ouolm:laim or CC'OIS-I;Ialm. in a proccodlng,
iacludiq a bW:ruptey ~~or .-iversbip, or my oet. procecdin& instituted by
a pelt)' hereto or by oChers or olberwise rdn !hie Lcao to an aUomcy ror lhe
e~~forcemc:nt of any oflhc: oblipliom, tenns, provltlona, coaditiona, COVCNats aud
apcmeo~t orlbll Leue, 1hc: pRYiilins puty in IUIIb ~eUon lball, in addition eo au
Qther paymeaU ~ bereio, RICCivc hill the olher aU c;o&U incumld by the
prevaillq Pll't)' iDcludiag .aon.y - md sucb COitll and lltonJIIy - wtlich
prevailina ptlt)' lncwl 011 any appoaL
33. PJ[IIIIm..,.; Ifuy tell\, ptOYilloa, conciticln. covenw or
~of tills Lease, or Cbc applicadoo lbemof to Ill)' penon or c:irmnl$tance Ia, to
Ill)' CXICft1, lnft.lld or~ Cbc....mder oftbo Loae, or tho ~on of
such term, provllioll, ~or qnocmcat to lillY penoo or~ olhar dian
thole as to wiHdl it is .blllkl ilmlid or llllell1'on:elb llball Dill~~ lbolcby and
acb tam, provbloa, COIIIIilima, CIMIIIIlt aDd agreaneGl of this lAue shall be Yllid and
ont'onlod to tbD fuJat llliiiDt permiltad by law.

34. Norkes. lilclccplaslbt)' be otbolwilc.......,.

provldcd ia lhQ Leue, all
notices and ltA:mcots l'llq1linld or~ uadl:r dlia'I..aa. 1111111 be in wftdn& 11.\d

dinKMd to the pmy u-

sball be deemed to be JM:ullld Rc:Giwd Mloo dalJwred in pcnoo or IIQt by Un.lted
States n:ai*fed or certified mail, Rlt\lm rccclp\ rcq~ with pos~~p p!qlllid IJid
btl below:

Sblru\Cho
6942 Mcldow ff20S
Aadlorqe. AK 99S07

Bither put)' -y . . . . • cWfcnol poN a8ivo or mall dcllvety addrcas u

may liom ~ 1o rime be iiPJIIow-ia lOr the JU11011B ofrocotviiJI nodce b)' Jivins
~ DOdce to tbeolber ofJIICb MW dllipatloa.

lS. Pr,ttr Ap t; 11ril J...eue ~Ill oftbo ..,_all oftl&e parties

with ~.,eel to ay Ullllll' c:ovaed or mcntionaf in Ibis leMe and 110 prior qrccments or
~......._to 111y suc:b IDIItu shall bo e~ for tnY purpotc. No
provision oflhls Lease may be .meo4cd or~ to ex&:qJt by aa .pemCIIt in writing
sianed by tlle parties hereto 01 their «eSpedive succr.saors m interest This Lease sball
be neither eff'ec:cive I"KW bindlns 011 my party unlit fully ox.ccukd by both l)lrties.

36. leehjltty to Pgftnp Tbit t.c.e- the oblipliC. ofTa.al banundm'

!ball not be affectled or lmpMed beclose die oweer Is IDblo to fidfiU ID)' ofits
obllgalioos hereunder or is ddl~ l.o doiQI so. if IUOb iDabllity or dolay iJ c:auwd by
reuoa or S'lrike, labor troubles. acts of Ood or any other causes beyood tho n:uontble
c:ontrol ofoWDCr. A ~
EUihit A{JI!!t:J-....,
ba15of!'l~

0686fi't:t:L06
... _,.. __

37 .lloldoyer; In the event that Tenant occupies l!ld remains in J)Oa8elsion of

the Praniscs ana ~bel cxpll'll1i011 of lhb 'Lealie without having executed a new lcue or
an omnsion or raJeWai of this l...c:ull, Teomrt shall ba dlllmcd ip OCC4II)anC)' ll8d
posse31ion of the Premix• u a te.!LIIIl Cor rD<lllth to mouth only at a mondlly ~ental
equal to 125% of liM mootbly nml and othu ~~required to be paid by Ttmant
under this Lease. lfTenant oecupies aQd remains In poaession of the Premises aftor lbe
cxplrllion of this !cue. and ifcithc::r tJil1Y lhcreaftct desire$ to terminate aid OCCupiDCY
at the eod of any 111011th, thm the party that~ to 10 lllnniDIIe the suno shall give
the otbDr party a! least thirty (30) days wriUr:n notice to that effect t'atlure 011. tbe J)lft t>f
Tenant to glve sud\ notice shall obliple Tenant to pay the fuU rattmd otbarcbarps
l'CHmd . . . this LeMe.

31. lkJI!onJ oCina~t's ProDirty • • I•PruweM Vw Tm11Mitot;

Within thirty ()0) da)'l &1\er cq>lrltlon or .IOOOCt tennbudlon ofdlis l....eue, Teaut shall
remove aU furniture, cqulpmcot, ln\ICiltOIY and CIUl« T~ prapeny. Ally pcopmy 1101
n:JnOved wkhln allcll lhiey (30) dayalball be deemed u-doaad lllld Owner shill have
the option of ellhcr removing and disposing of such ltan(s) at Ta.$'11 ~ .ad
without any OWoot liability, or I'Cif.l.nin.& sucll item(s) whlcb :shall become sole\y lbc
property of owlll'.l' wilboutany (iuther claim thereto by Teaaat. Ill the event lbo ranoval
of any pcopc:rty by Tcmot causes any ~ to tile prcaiiDI, Teunt lball promptly
rq)lit IIM:hdama&e at TcuafaO'MI cottmd ~ 0waer may ~Ire a bond or
other as~~Ut~~~Ce of $UOh ,.a prior to allowin& the n:moval of llldt property.
39.pM of!)''ftM! Tcmant may not ldC the~ for uy other p!ll'J)030
without lh~: ~ wrlttl:n OOII9C:Ilt of(}M)cc, wttieh coment may he withheld fOf any
re&501L Subject to the noise level ~uin:ment and li.rnital.loo, Tawd may 111e a braoke
5Y*JD dlll'iq tho pariod Scptcm~ Ill through Mil)' S o( each yev. Teout mwt oot
uso a!Carde S)'!llllm durin& the period. of May 6 ~ Soptomber 1S of each year.
'The:- ofK.nokc IIY*m during that paiod 'IIVill J'C8Ult ia One lhoi&Mnd dollm
($1 000) penalty fot eaoh night's use apjNt Tenllll. Ten~at lbould oot allow the noise
lr:vcl in lbo bslaurmt to dillurb any guats of the Alaltan Sunovar lort lbd milwo to
maintain an 8Ceqltablc DOllie level in tllc RC8CIUnllt wln be a bralch of dlls Lcue.

40. Mtttt!lpeeou; Upaa t'fJql.t ofOwalw, Teaa !IbiD CUCUIID a

11M1C11C01111um ofdU z..- ia a biD ..able £or~
41. G!!!ndgyw; 'Ibis l.elle lbiJ1 be pemed by ... ~
~ 10 tbo lawl oftllo State oC AI.$1DL

Tbe sulxaiuion of this LcaJc fer n;vlew by Tcoanl dcxs not OODititute an oiler
or an optioCI to leue tbe prernbas, oor Is lt htk:ndod as a -vatioe oftbe Prwmises for
1bc benefit oC ~ Tawrt. Oa 1M c:oobwY. it ia cxpRSSly undonlood Chit dUs 1..-
wU ooc be dfDcci~ or biodiaa upon the J)ll1ics llldll ills fully llld property ax:~
by Owner tnd TeMnt

0686 v££L06
 In WITNESS WHBRBOF tbe pna have catered into this Awecment to
be etrectiw on the d3te set forth above.

STATE Of ALASKA )
)a.
THIRD JUDICIAL DISTIUCf )

..,IL.
Tllil is to Certify that Oil tbia _Jf;_ ct.y QfNovcmbet 4, 2009,
before me. tile UDdeniped, a Notary Pub11c iD IIIII for lhe ~ of Altsb,
duly COIIIIIlissk..s . . IWOIIl • sucb. pcDCJIII1Iy ~ K.iMna Cho, o.• ~ ~ ~ . . ., ....
lmowD to me mel to mo known to be tbe ioclivicluaJ. ....-..i in and who ~0
c:xeclUted the foresoins iastnlmeat albe Scatary oflloq & toes IDe.,
aad bo 8llbowloclaecl to me diet be lipecl tbe ..me hcly 8lld vohaotarily
t'br the usa mel purpoHI tt..io aet ~..._..~---

W'Jtncss my hand met official

tint wrilrm. . .

51 /51 ·a~'tld 0686t7££L06