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HomeMy WebLinkAboutCC Resolution 11239 (City Hall at the Mall)`1 RESOLUTION NO. 11239 RESOLUTION AUTHORIZING AN AMENDMENT TO THE SPECIALTY LEASE AGREEMENT BETWEEN MACERICH COMPANY AND CITY OF SAN RAFAEL FOR CITY HALL AT THE MALL (February 1, 2003 - January 31, 2004) Whereas, The City of San Rafael and Macerich Company entered an Agreement dated January 24, 2000, and Whereas, said Agreement was amended by both parties on January 16, 2001 as well as on January 22, 2002 extending the lease through January 31, 2003, and Whereas, said Agreement expires on January 31, 2003 and both parties desire to amend the Agreement extending the term to January 31, 2004, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows: The CITY MANAGER is authorized to execute, on behalf of the City of San Rafael, an amendment to the Specialty Lease Agreement with Macerich Company, a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCM, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Tuesday, the 21" day of January, 2003 by the following vote, to wit: AYES: COUNCILMEMBERS: Heller, Miller and Vice -Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen and Mayor Boro JEAXNt M. LEONCINI, City Clerk ORIGINAL ADDENDUM "A" Tenant shall use the premises during the Term for the purposes as a police annex and city hall in the mall and for no other use or purpose. Pursuant to such use, Tenant may maintain on the Premises such furniture and equipment as Tenant determines is appropriate for the operation of a community office. Tenant may also have telephone lines installed to the Premises. Tenant shall not use or occupy the Premises in violation of law and shall discontinue any use of the Premises which is declared by any governmental authority to be a violation of law. Tenant, at its sole cost and expense, shall comply with any directive of any governmental authority which shall impose any duty upon Tenant or Landlord with respect to the Premises or the use or occupation thereof, which arises due to the nature of Tenant's use or occupancy of the Premises. Tenant shall not commit, or suffer to be committed, any waste or nuisance, including allowing objectionable noises or doors to emanate from Premises, or any act which may increase the cost of public liability or any other insurance Landlord elects to carry in connection with ownership, management, maintenance and operation of the Center or which is otherwise in contravention of insurance underwriting regulations, guidelines and practices. Tenant shall not allow carts or portable signs, devices or any other objects to be stored or to remain outside the exterior walls and permanent doorways of the Premises. This agreement shall obligate Tenant to staff the Premises on a regular basis. ADDENDUM W; INSURANCE. Landlord recognizes and understands that Tenant, does not maintain commercial liability insurance coverage. As permitted under California Government Code section 990, Tenant is self-insured for the first $500,000.00 of general liability exposure. Additionally, Tenant participates with other public entities, under a "Memorandum of Coverage" (MOC), in an excess liability "pool", the California Joint Powers Risk Management Authority (CJPRMA), for excess liability coverage in excess of the $500,000.00 retention. Tenant shall provide Landlord a certificate of "Additional Covered Party" naming Landlord an additional covered party under the MOC. This certificate shall satisfy all of Tenant's obligations under paragraph 16 of the Lease. Landlord: Northgate Mall Associates By: Macerich Management Company or Macerich Property management Company, LLC, a Delaware limited liability company (as the case may be), its Managing Agent By:N=:;eWWW_-1 Jennife Cic one Sr. M , operty Manager 5800 Northgate Mall San Rafael, CA 94903 415-479-5956 Date: 3 -1 -7k --s Tenant: City of San Rafael, a Municipal Corporation under the laws of The State of California, dba "City Hall at the Mall" Rod Gould City Manager 1400 Fifth Ave. San Rafael, CA 94915-1560 415-485-3070 Fed EIN: 9440383-9 Date: //-2- 1 ( j3 IOPY SPECIALTY LEASE AGREEMENT This Specialty Lease Agreement ("Agreement") is made as of this 9th day of January 2003, by and between Northgate Mall Associates (the "Landlord") and City of San Rafael dba Citv Hall at The Mall (the "Tenant"), based on the following facts and circumstances: A. Landlord is the owner of certain real property, commonly known as The Mall at Northgate. San Rafael. Ca 94903 ("Center"); and B. Tenant desires to lease certain premises at the Center. C. If Tenant is also leasing personal property (CART UNIT) from Landlord see exhibit "C" attached. In consideration of the rent and other charges to be paid and the covenants to be performed by Tenant hereunder, Landlord does hereby lease and demise to Tenant, and Tenant does hereby lease and take from Landlord, the Premises hereinafter described, upon the terms and conditions hereinafter set forth: 1. Premises. The "Premises" are located within the portion of the Center known as In -Line space # 82 containing approximately 1,425 square feet, which location is depicted on Exhibit "A" attached hereto and made a part hereof by this reference, where the Tenant is permitted to display and sell its merchandise. No other portion of the Center may be used by Tenant except for the Common Area in common with other persons. As used herein, the term "Common Area" shall mean all realty and improvements in or at the Center now or hereafter made available by Landlord for the general use, convenience and benefit of Tenant and other tenants upon the Center. Tenant agrees that the Premises may be relocated at any time at the discretion of, and without liability to, the Landlord. 2. Term. The "Term" of this Agreement shall commence on February 1, 2003 (the "Commencement Date") and will expire on January 31, 2004 unless sooner terminated as provided herein. Tenant will operate its business upon the Premises throughout the Term. Tenant agrees that Tenant's rights under this Agreement may be terminated upon 30 day's written notice from Landlord in Landlord's sole and absolute discretion and without cause. 3. Use. Tenant shall use the Premises during the Term for the sole purpose of displaying and selling (subject to the approval of Landlord) to the public at retail Please see attached Addendum "A" and for no other use or purpose. 4. Securitv Deaosit. On or before the Commencement Date, Tenant shall deposit with Landlord a Security Deposit for full performance of all Tenant's obligations under the Agreement in the amount of N/ADollars ($N/A). Under no circumstances whatsoever shall the Security Deposit be deemed to constitute payment of any portion of Base Rent, Percentage Rent or any other sum due to Landlord. In the event of cancellation by Tenant prior to the Commencement Date or expiration date, Landlord shall retain the Security Deposit. This deposit shall not be in lieu of Landlord's other remedies under this Agreement or at law, and acceptance by Landlord of such charge shall not preclude Landlord from seeking any other available remedy. �C Qs4xchanges and Refund Policv. Tenant shall be required to exchange or refund all merchandise with receipt, to customer within s from the purchase date. Tenant shall not limit the return of merchandise to exchanges or enchant credits, and "Exchanges imilar signs are not permitted. In the event Tenant violates any provisions of the exchange/refund policy, Landlord shall be entit e W ' e Tenant's security deposit, to remedy any such violations, and Tenant shall immediately replenish the security deposit to its origina t. 6. Fees. Tenant shall pay to Landlord the following Fees for Tenant's use of the Premises, the sum of $1.00 for the term total of this lease agreement Unless otherwise provided herein, all fees due Landlord pursuant to this Agreement shall be paid in advance on or before the first day of each calendar month during the Term by Tenant by Certified Check or Money Order payable to Landlord and sent to the following lock box address: Northgate Mall Associates, Dent 2596-3105,. Los Angeles, Ca 90084-2596 In the event the Term covers only a portion of any specific calendar month, the Base Rent and the Other Rent/Contributions for such month, as well as the base sales dollar amount(s) provided in Paragraph 7 below, shall be prorated by multiplying such amounts by a fraction, the numerator of which is the number of days in such calendar month which fall within the Term and the denominator which is 30. Payment Schedule: Fees shall be allocated and billed yearly zbe i 9paRW i911;ftW*for Landlord accounting purposes ff:Kxa`Il6as follows: Payment Marketing Dates PerTerm Min Rent CAM RTAX Fund Cart Rental Fee 02/01103- $1.00 $1.00 -0- -0- -0- -0- 01/031/04 The fees noted below are in addition to those noted in paragraph 6 and will not be included with any % rent calculation. These fees will cover any miscellaneous fees for visual merchandising, utility, application fees etc. Payment Due Per Term Fee Description Revised 11/6/02 p 7. Percentage Rent. Tenant shall pay to Landlord, as "Percentage Rent," an amount equal to N/A% of the excess of all gross sales and revenues (as hereinafter defined) made at the Premises during each calendar month during the Term over base sales of $N/A. Percentage Rent shall be due and payable for each month on or before the 15th day of the following calendar month during the Term (and within 15 days after the end of the Term) and delivered to the Landlord. IfBreaknoint changes during the term olease note here From to % of the excess of all gross sales and revenues made at the Premises during the term over base sales of $ per month From to % of the excess of all gross sales and revenues made at the Premises during the term over base sales of $ per month From to % of the excess of all gross sales and revenues made at the Premises during the term over base sales of $ per month From to % of the excess of all gross sales and revenues made at the Premises during the term over base sales of $ per month 8. Utilities. In the event electricity and/or any other utility is separately metered to the Premises, Tenant shall solely be responsible for contracting for such separately metered utility and shall pay all costs directly to the utility supplier. Tenant shall be solely responsible for using any and all utilities in a safe and hazardless manner, complying in all respects with applicable codes and ordinances. Plans and Specifications. Tenant shall perform, at Tenant's sole cost and expense, any and all refurbishing to #IV/rcmises ecessary to bring the Premises into an appropriate operating condition, all in accordance with architectural and construction p and other data approved by Landlord. Tenant agrees to submit for Landlord's approval all such architectural and construc ' plans and other data not later than fifteen (15) days from the date of this Agreement. Upon approval by Landlord of such p and data, Tenant shall commence and diligently prosecute to completion the construction and installation of Tenant's improve s in the Premises strictly in accordance with such approved plans and data. All store signage must be approved by Landlo rior to installation by authorized sign company or installation contractor.. Tenant must have storefront signage installed prior tore opening. No changes, modifications or alterations may be made �impr plans or other data without the prior written consent of Landlord. In the event Tenant's improvements have nocted in strict accordance with said approved plans, Tenant, upon Landlord's request, shall immediately removments and other personal property from the Premises and this Agreement shall thereon immediately terminate. In such even-t,11,andlord may recover from Tenant the unpaid rent which would have been earned after termination and any other amount neces to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Agreement. Upon the expiration or earlier termination of this Agreement, Landlord shall have the option, whiRch option may be exercised in Landlord's sole and absolute discretion, to require Tenant to either (i) quit and surrender the Premis�ith all improvements thereon or (ii) remove all Tenant's improvements from the Premises and take all steps necessary to restore -the` Premises to its condition on the date hereof. 1 echanirs' Liens. Tenant agrees not to permit or cause any mechanic's lien to be filed against the Premises or SnheCenter by reason of any ws;k,,labor, services or material performed at or furnished to the Premises, to Tenant, or to one holding the Premises through or under thZ-T-en$n±- Nothing in this Agreement shall be construed as consent on the of the Landlord to subject the Landlord's estate in the Premises to any uiud'havin's liens or liability under the mechanic's lien laws in the state in which the Center is located. IJ,Sales Resort. Within 5 days after the end of each calendar month during the Tenn, Tenant shall submit to a andlord all gr ales and revenues during the month just ended certified as true and correct signed by Tenant. Sales can e mailed to: Landlo r The Mall at Northeate c/o Macerich Comaanv. Attn: Accounts Receivable. P.O. Box 188, Santa Monica, C7 , 90406-2188 or faxed to: (310) 395-5193 or emailed to: ortheate salesrenortinaQmacerich.co . or purposes of this Agreement, "gross sales and revenues" shall mean the selling price of all goods, merchandise and services leased, licensed or delivered in, upon and/or from the Premises by Tenant, its subtenants, licensees and/or concessionaires ora ther person, firm or entity; provided, however, that gross sales and revenues shall exclude sales tax specifically paid by custome art of the sales price and collected by Tenant to be paid to the taxing authority. In the event Tenant fails to deliver such reportu h date, in addition to all other rights and remedies of Landlord, Tenant shall pay Landlord a late charge of Fifty Dollars ($50. _ich shall become immediately due and payable. Such_• charge shall not be in lieu of Landlord's other remedies under this wement or at law, and acceptance by Landlord of such charge shall not preclude Landlord from seeking any other available remedy --Land lord will have the right from time to time, upon three (3) days written notice, to audit or examine all of Tenant's sales record3- any 2 Revised 11/6/02 deficiency in the payment of the Percentage Rent is disclosed by such audit, Tenant shall immediately pay such deficiency to Landlord plus the cost of the Landlord s audit. 12. Late Charges. If Tenant shall fail to make any payment of Security Deposit, Fees (as noted in paragraph 6), Percentage Rent, or any other charge to be paid hereunder when due, Tenant shall pay Landlord a late charge equal to Fifty dollars 50.00. Payment will be due within 3 days of written notice of default. If default continues for a period in excess of five (5) days, Tenant in addition shall pay Landlord interest on the amounts owing (until paid) at a rate equal to the lesser of: (i) twelve percent (12%) per annum; or (ii) the maximum legal rate. These late charges shall not be in lieu of Landlord's other remedies under this Agreement or at law, and acceptance by Landlord of such charges shall not preclude Landlord from seeking any other available remedy. 13. Duty to Maintain. Tenant shall, at its sole cost and expense, keep the Premises and all equipment, fixtures and plate glass therein in a clean and wholesome condition, in good order and repair, free and clear of litter and debris and free from any objectionable noises, odors or nuisances and in compliance with all health and police regulations, in all respects and at all times. In the event the Premises involve a kiosk or are otherwise within the Common Area, Tenant's duty to maintain as provided by the foregoing sentence shall also apply to the Common Area within a radius of twenty feet (20') of the Premises. Tenant agrees to dispose of litter and debris only in receptacles designated by Landlord. If Tenant refuses or neglects to make repairs or perform maintenance as required hereby, Landlord shall have the right (without notice in emergency situations and upon reasonable notice in other situations), but not the obligation, to make such repairs or perform such maintenance and to bill Tenant for the reasonable costs thereof, which costs shall be immediately payable by Tenant to Landlord as additional rent. 14. Compliance with Laws. Tenant shall, at its sole cost and expense, comply with all laws, ordinances, orders, rules and regulations (state, federal, municipal or any other agency having or claiming jurisdiction) related to the use, occupancy or condition of the Premises. All business licenses and other applicable permits and licenses shall be secured and paid for by Tenant. 15. Manner of Operation. At all times, Tenant shall conduct its activities in a tasteful manner in accordance with Landlord's rules and regulations for the Center as described in Paragraph 18 of this Agreement and in a manner that will compliment the aesthetics of the Premises and the Center. 16. Insurance. Tenant, at its sole cost and expense, shall obtain and keep in full force and effect during the Term a policy of comprehensive general liability and special form (all-risk) insurance, including without limitation broad form property damage liability and personal injury liability coverage, insuring Landlord and Tenant against any liability arising out of the use or occupancy of the Premises and all areas appurtenant thereto. Said insurance shall at all times be in an amount of not less than One Million Dollars ($1,000,000.00) combined each occurrence in the aggregate for personal and bodily injury and property damage. All such insurance shall specifically insure the performance by Tenant of the indemnity agreement as to liability for injury to or death of persons and injury or damage to property contained in Paragraph 17 of this Agreement. Said policy shall also name as additional insured's Landlord, the Center's management company and the Center's Merchants' Association and all other entities requested by Landlord. Tenant shall also obtain and keep in full force and effect during the term of this Agreement, Workers' Compensation Insurance as required by the laws of the State in which the Center is located. A certificate evidencing the coverage required under this Paragraph 16 shall be delivered to Landlord not less than fifteen (15) days prior to Tenant entering upon the Center. Such certificate shall contain a provision that Landlord and Tenant shall be given a minimum of ten (10) days written notice by the insurer prior to cancellation, termination or material change in such insurance. ** City of San Rafael is self—insured. 17. Indemnity. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all loss, cost, damage, injury or expense arising out of or in any way related to claims of injury to or death of persons, or damage to property, occurring or resulting directly or indirectly from the use or occupancy of the Premises or activities of Tenant in or about the Premises or Center, except to the extent such claims arise solely from the gross negligence of Landlord; such indemnity shall include, without limitation, the obligation to provide all costs of defense against such claims. 18. Rules and Regulations. Tenant agrees to comply with (and cause its officers, employees, contractors, invitees and all others doing business with Tenant, to comply with) all rules and regulations of general applicability regarding the Center as may be established by Landlord at any time and from time to time during the Term, including without limitation rules and regulations pertaining to signs. See exhibit "B" attached for detailed operating rules. 19. Hours of Operation. Tenant shall be open for business at the Premises during all regular Center hours, and at such other hours as a majority of the other businesses operating at the Center are open. Accordingly, with respect to any day during the Term that Tenant shall fail to be open for all the hours provided for above, Tenant shall pay a charge of Fifty Dollars ($50.00), which shall become immediately due and payable, within 3 days of written notice of default. Such charge shall not be in lieu of Landlord's other remedies under this Agreement or at law, and acceptance by Landlord of such charge shall not preclude Landlord from seeking any other available remedy. Please see #19 Attachment 20. Assignment. This Agreement, and the rights granted hereunder, are personal to Tenant and are non -assignable and non -transferable by Tenant. Any attempted assignment or other transfer of this Agreement, or sublease of any rights hereunder, by Tenant (collectively, "assign" and/or an "assignment") shall be null and void, have no effect and confer no rights upon any third party. Subject to the foregoing, the terms and conditions of this Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective successors, assigns, heirs, administrators, executors and representatives. 21. Default. The occurrence of any of the following shall constitute an event of default on the part of Tenant: Revised 11/6/02 19. Operation of Hours: Tenant shall be open for business on the premises with such hours agreed to by the Tenant and Landlord. Landlord shall pay the sum of $5,000 in monthly installments of $416.67 in consideration of Tenant providing city staff to be on duty during the agreed upon hours by Tenant and Landlord. i. Any failure by Tenant to pay any sums due hereunder if such failure continues for a period of time in excess of three (3) days after notice from Landlord to Tenant (which notice shall be in lieu of, and not in addition to, any notice required by law); ii. Any failure by Tenant to perforin any other of the terms, conditions, or covenants of this Agreement to be observed or performed by Tenant if such failure continues for a period of time in excess of 3 days after notice from Landlord to Tenant (which notice shall be in lieu of, and not in addition to, any notice required by law); iii. If (1) Tenant should institute any proceedings under the Bankruptcy Act, as such now exists or under any amendments, reenactments, or replacements thereof that may hereinafter be enacted, or under any other act relating to the subject of insolvency or bankruptcy, whether in such proceeding Tenant seeks to be adjudicated a bankrupt, or to be discharged of its debts or to effect a plan of liquidation, composition or reorganization; or (2) any involuntary proceeding should be filed against Tenant under any such bankruptcy laws; or (3)Tenant should become insolvent or be adjudicated a bankrupt in any court of competent jurisdiction, or a receiver or trustee should be appointed of Tenant's property, or Tenant should make assignment for the benefit of creditors; or (4) there should occur the attachment, execution, or other judicial seizure of substantially all of Tenant's assets located at the Premises, or if a writ of attachment is executed on this Agreement; or (5) this Agreement, or any interest therein or to the Premises, should otherwise by operation of law dissolve or pass to any person or persons other than Tenant; iv. Tenant's abandonment of the Premises; in which case remainder of Fees for the term of the agreement are immediately due and payable; or v. Tenant's attempt to "assign" this Agreement or any of Tenant's rights hereunder contrary to Paragraph 20 of this Agreement. If an event of default occurs, then Landlord, in addition to any other rights or remedies it may have at law or in equity or under this Agreement, shall have the immediate right to unilaterally terminate this Agreement and to remove all persons and property from the Premises (such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant), all without service of notice or resort to legal process and without being deemed guilty of trespass, or becoming liable for any loss or damage which may be occasioned thereby. 22. Termination. Upon the expiration or earlier tennination of this Agreement for any reason whatsoever, Tenant shall leave the Premises in a neat and broom clean condition, free of debris and in as good condition as when the Premises were originally delivered to Tenant, ordinary wear and tear and casualty damage excepted, and shall promptly remove all personal property placed on the Premises by or on behalf of Tenant. Tenant hereby authorizes and irrevocably appoints Landlord as its true and lawful attorney-in-fact to remove all such personal property upon Tenant's failure to remove all personal property from the Center within three (3) days after the expiration or earlier termination of this Agreement. Tenant hereby waives any and all loss or damage thereto arising from the exercise of this power, and covenants to indemnify and hold harmless Landlord from and against any costs, claims, liens, damages or attorney fees, costs and disbursements arising from such removal. 23. Suitability of Premises. Tenant hereby accepts the Premises in an "AS IS" condition and Landlord expressly disclaims any warranty or representation with regard to the condition, safety, security or suitability of the Center or Premises. It is understood by Tenant that Landlord does not provide security protection for the Premises and/or Tenant's personal property. 24. Landlord's Access to Premises. Tenant agrees that Landlord, its agents, employees or any person authorized by Landlord may enter the Premises at reasonable times for the purpose of inspecting its condition, making repairs or improvements to the Premises or the Center as Landlord may elect (or be required) to make or exhibiting the Premises to prospective lessees. Landlord agrees not to disturb Tenant's conduct of business during such access except in the case of emergency. 25. Entire Agreement. This Agreement contains the entire agreement of the parties. Any representations or modifications concerning this instrument shall be of no force and effect, excepting a subsequent modification in writing signed by the party to be charged. 26. Notices. All notices required hereunder shall be in writing and may be delivered by personal service to the other party (in which case such notice shall be deemed delivered as of the day of such delivery), or sent postage prepaid by certified mail, return receipt requested (in which case such notice shall be deemed delivered as of the third day after the date of such mailing), to the address set forth below each party's signature block. 27. Severabilitv. If any term or provision of this Agreement or any portion of a teen or provision hereof or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each term and provision of this Agreement and each portion thereof shall be valid and be enforced to the fullest extent permitted by law. 28. Captions and Terms. The captions and section numbers appearing in the Agreement are for convenience only and are not a part of the Agreement and do not in any way limit, amplify, define, construe or describe the scope or intent of the terms and provisions of this Agreement, nor in any way affect this Agreement. 29. Hazardous Materials. Tenant shall at all times in all respects comply with all federal, state and local laws, ordinances and regulations relating to industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, presence, disposal or transportation of petroleum products or by-products, or hazardous or toxic 4 Revised 11/6/02 substances, materials or waste which is or becomes regulated by any local, state or federal agency (collectively, "Hazardous Materials"). Tenant shall not cause or permit any Hazardous Materials to be brought upon, kept or used in or about the Premises without the prior written consent of Landlord, which consent may be withheld in Landlord's sole and absolute discretion. 30. Waste/Trash Removal. Without limiting the generality of the foregoing paragraph, in the event waste and or trash removal for the Premises is separately provided to the Premises, Tenant shall be solely responsible to pay all costs directly to the service provider as designated by the Landlord. 31. Unauthorized Communications Devices., Tenant shall not install or operate (excluding cellular phones or pagers) or permit the installation or operation, at the Center or within the premises of any device, equipment of facility for transmitting, receiving, relaying or amplifying communications signals used or operated as a part of a telecommunications network or global positioning system, or otherwise emitting or receiving signals, frequencies, video date or voice communications, including, without limitation, any dish, panel, antenna, satellite or cellular communications equipment, amplifiers, microcells, picocells or other similar devices or equipment (collectively, "Communications Devices"). If Tenant fails to comply with the provisions of this Section 31, then in addition to Landlord's other remedies under this Lease, Landlord shall have the right to collect from Tenant in addition to to other Rent, a sum equal to twice the Fixed Minimum Rent (prorated on a daily basis) for each full or partial day Tenant fails to comply with the provisions of this Section 31. Tenant acknowledges that its failure to comply with this Section 31 will cause Landlord to suffer damages, which will be difficult to ascertain, and that the sum payable by Tenant under this section 31 represents a fair estimate of such damages. The preceding prohibition shall not preclude Tenant from the use of any of the following, if in each such case such telephones, cellular phones, computers and other permitted devices are used only by Tenant and used only in the ordinary course of Tenant's business at the Premises for the Permitted Use: (a) Telephones and computers connected directly to telephone lines provided to the Premises, (b) cellular telephones using cellular transmission stations outside the Center of (c) low-key cellular telephones used only for internal communications within the Premises or to a station within the Premises when the station is connected to a telephone line provided to the Premises. 32. Time of the Essence: Nonwaiver. Time is of the essence of each and every provision of this Agreement. The waiver by Landlord in any instance of any term, covenant or condition herein contained shall not be deemed to be a waiver of such tenn, covenant or condition in any other instance and shall not be deemed a waiver of Landlord's rights and remedies with respect to any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of Base Rent, Percentage Rent, Other Rent/Contribution or any other sum hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Agreement regardless of Landlord's knowledge of such preceding default at the time of the acceptance of such sum. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written it is understood that all terns and conditions of this lease are confidential. Revised 11/6/02 Landlord: Tenant: Northgate Mall Associates City of San Rafael By: Macerich Management Company or dba: Citv Hall at The Mall Macerich Property Management Company, LLC, a Delaware limited liability company By: (as the case may be), its Managing Agent By: Name: Jennifer is ne Title: Sr. Mer., Proaerty Manaeer ss Name(s): Rod Gould Address: 5800 Northeate Mall ---7 San Rafael, Ca 94903 Phone: 415-479-5956 Date: Title: Citv Manner Address: 1400 Fifth Avenue San Rafael. CA 94915-1560 Phone: (415) 485-3070 Fax: (415) 459-2242 Date: // 5).7 "b SSN or Federal Employer Identification Number: 9440383-9 (Note: Must be supplied or Landlord will not enter into this agreement.) ATTEST: J E A &t LEb J T, City e r k 6 Revised 11/6/02 EXHIBIT B OPERATING RULES Tenant covenants and agrees that Tenant will comply with the rules and regulations set by Landlord from time to time for the operation of the Center, including but not limited to those described in the Specialty Leasing Operations manuals and the following: 1. Tenant shall use and occupy the Premises in a careful, safe and proper manner and shall keep the Premises in a clean and safe condition. 2. All loading and unloading of goods shall be done only at such time, in the area and through the entrances designated for such purpose by Landlord. 3. Set up or takedown of cart display, or delivery of boxed merchandise must be accomplished before or after Center hours. 4. All garbage and refuse shall be kept in the interior of the cart or kiosk storage and shall be placed for collection in the malls main trash receptacles usually located at various dock entrances. 5. No loudspeakers, televisions, photographs, radio, flashing lights or other devices shall be used without the prior written consent of the Landlord. 6. Tenant shall not operate any equipment, which emits an odor deemed offensive in nature, with the exception of soap and potpourri odors. 7. Tenant and or its employees shall not distribute any handbills or other advertising material in the Center or on automobiles parked in the parking areas. 8. All premises must be adequately stocked with the merchandise permitted to be sold as detailed in the use clause of the Agreement and be kept neat in appearance and manned during all operating hours. Tenant is required to accept mall Gift Certificates as a form of payment for merchandise sold. 9. Any signage must be approved by Center management and be professionally printed. A maximum of two (2) signs are allowed per cart/kiosk and may only be attached to the cart or merchandise display. 10. Tenant shall, within fourteen (14) days prior to the commencement date, provide Landlord with a visual merchandising plan. If using a visual merchandiser, it is Tenants responsibility to contact the visual merchandiser and meet to discuss details regarding set up. All Tenant supplied fixtures must be professionally made. Any exceptions to the above display regulations must receive prior approval from Center management. H. Cart & kiosk tenants and their employees may not eat, smoke or drink at their operation at any time. 12. Fraternizing with friends and family or reading books while working the cart or kiosk is unprofessional behavior and discourages business and therefore, is unacceptable. 13. Tenant and Tenant's employees shall not park their motor vehicles in those portions of the parking area designed for customer parking by Landlord. If Tenant or Tenant's employees shall park in portions of the parking area designate for customer parking, Center management or Security may attach violation stickers or notices to such cars and have any such vehicle removed at employee's expense. 14. Storage of excess inventory, security curtain, trash cans and miscellaneous supplies or personal belongings must be inside the cart or kiosk storage areas or storage areas, which can be leased from the Center's management (available on a limited bases). 15. Tenant shall, at ALL TIMES offer customers a satisfactory return and/or exchange policy on all purchases within thirty (30) days with receipt and merchandise. In the event Tenant cannot satisfy customer with an exchange, Tenant shall be required to fully refund to customer the complete purchase price in the form of payment made the to Tenant. This policy shall not apply if due to customer negligence. This policy is enforceable to the extent that it does not otherwise contradict applicable City, State or Federal safety, hygiene or food laws. 16. If Tenant should fail to comply with any rule or regulation set forth in the Agreement or these Operating Rules, and Landlord shall become involved in attempting to enforce compliance by Tenant, Tenant agrees to pay Landlord a $50.00 administrative fee, per each occurrence, upon demand. The payment of an administrative fee by Tenant shall not waive any other remedies available to Landlord under this Agreement or by law. 17. Failure to comply with any of these Operating Rules will result in termination of the Agreement. 18. Items 3,4,11,12, and 14 apply to common area cart and kiosk units only. Revised 11/6/02