PROPOSAL TO LEASE

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PROPOSAL TO LEASE Powered By Docstoc
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                              PROPOSAL TO LEASE


1.Landlord:         Swans Marketplace Partnership, L.P., A California Limited
                    Partnership, (Landlord), which is represented by its property manager,
                    East Bay Asian Local Development Corporation.

2.Tenant:

3.Premises:

4. Use of
Premises:




5. Term and         The initial term of the lease shall be for (___) years. Tenant shall have
Options:            the option to extend the lease for _____ years.

6. Base Rent:       Tenant’s Base Rent shall be $_______ for the first year of the lease
                    term. (See Paragraph 11 for escalations.)

7. Additional       All utilities (gas, electricity, and water); janitorial costs within the
Costs By            premises; delivery of all wet and dry trash from the premises to the
Tenant:             common area trash receptacles; maintenance of fixtures and facilities
                    within the premises (see paragraph 13.H); and pro-rata share of CAM
                    costs (see paragraph 9).

8. CAM Items        Landlord’s Common Area Maintenance (CAM) items include the
By Landlord:        following: Common area utilities, maintenance of common areas, 3-6
                    hours per day security guard in common areas, building operations,
                    and trash removal from common area receptacles. Beginning in the
                    second year, CAM items will include property taxes and property
                    insurance. Tenant shall not be required to pay any increase(s) in
                    property taxes due to transfer or sale of the property in which the
                    Premises are a part.




NOTICE: This document is provided as an example only and is presented "as is" without
warranty of any kind. Be sure to consult an attorney or other qualified professional to develop
documents appropriate to your specific circumstances.
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9. Additional   Tenant shall pay an additional CAM charge of $0.37 per sq. ft. for the
Rent; CAM       first year of the term. Based on the _______ square-foot premises,
Charges by      Tenant’s total Monthly Base Rent and CAM charges shall be
Tenant:         $________ for the first year.

10. Annual      CAM shall be adjusted annually starting in the second year based on
CAM             actual change in the prorated CAM items described as Additional Rent
Adjustments     CAM Charges. Increases in taxes and other CAM expenses of the
                complex shall be passed on to the Tenant.

11. Increases   A. Initial Term. The Monthly Base Rent of $______ for the second
In Base Rent:      year shall be increased annually by the CPI Index-(SF/Bay Area
                   Office/Clerical Wage Earners) with an annual minimum of 3% and
                   an annual maximum of 8%.

                B. Option Periods. On the anniversary of the Rent Commencement
                   Date of year ___, the Monthly Base Rent shall be adjusted to
                   reflect the Market Rent in accordance with a procedure to be
                   specified in the Lease. The Monthly Base Rent beginning on the
                   anniversary of the Rent Commencement Date from years ___to
                   ___ shall be increased based by the CPI Index (SF/ Bay Area
                   Office/Clerical Wage Earners) with an annual minimum of 3% and
                   an annual maximum of 8%.

12. Improve-    A. Fire and Safety code work related to the shell improvements of
ments and          Tenant’s Space;
Actions to be   B. Handicap accessibility related to ground floor shell improvements.
completed and
paid for by     C. Facades as currently designed.
Landlord:       D. A common electrical conduit for sub-panel.
                E. Placement of troweled concrete slab floor.
                F. Common garbage and recycling area.
                G. Meter Room designed to accommodate the Pacific Bell Telephone
                   board, and
                H. Meters for gas, electricity, and water.




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13. Improve-     A. Upon approval of the final design, installation of all signs.
ments to be         Landlord shall provide a sign program to guide Tenant’s final
completed and       design.
paid for by      B. HVAC system and all fixtures and facilities related to the HVAC
Tenant:             system, if wanted by Tenant.
                 C. All lighting, fixtures, trade equipment (including hood),
                    furnishings, and other related personal property.
                 D. Maintenance of all fixtures and facilities discussed above in 13.A-
                    13.F.

15. Tenant’s
Contingencies:   Tenant is making this Proposal subject to the following contingencies,
                 which Tenant shall either remove or waive in writing within the
                 number of days after execution of this Proposal, or the Proposal will be
                 void:
                 A. Tenant’s approval of its inspections and cost estimates for building
                    out the Premises. (60 days)
                 B. Tenant’s receipt of all necessary governmental permits necessary
                    for Tenant’s operation of its intended business.
                 C. Tenant’s confirmation of financing necessary to proceed. (90 days)
                 Tenant understands that it must submit documents to Landlord as
                 listed below within the number of days after execution of this
16. Landlord’s   Proposal, as stated below, and that Landlord must then approve the
Contingencies    following documents of Tenant or this Proposal will be void:
                 A. Financial statements and other documents needed to demonstrate
                    that Tenant has the financial capacity to undertake the subject
                    transaction. If Tenant intends to get financing, Tenant shall outline
                    his approach to obtain said financing. (30 days).
                 B. A conceptual design plan for the restaurant (30 days).
                 C. A draft business plan including a break-even cash-flow analysis
                    and staffing plan (30 days).
                 D. Name of architect, if Tenant intends to use an architect other than
                    Y.H. Lee, the Landlord’s architect.
17. Lease
Commence-
ment:            The lease term is to commence approximately ________________.



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18. Deposit:    The Tenant will pay the equivalent of the first month’s rent as a good
                faith deposit upon execution of this Proposal and will pay a security
                deposit of $____________ when the lease is signed. All deposits to be
                refunded to Tenant if a lease, with no contingencies, is not fully
                executed.
19. Commis-     A leasing commission shall be paid by Landlord to Ritchie
 sions:         Commercial.


20. Confiden-   Both parties acknowledge and agree that all of the information
tiality         contained herein and exchanged through the course of negotiations
                shall remain confidential except for disclosure to funding sources
                which are considering or have provided funding to complete the Swans
                Project.


21. Indemni-    Tenant and Landlord agree to indemnify, defend and hold harmless
fication:       each other against and with respect to all claims, costs, expenses,
                obligations, liabilities, damages, recoveries, including interest,
                penalties, engineering consultant and attorneys’ fees that each party
                shall incur or suffer which arise, result from, or relate to any toxic
                pollutant or contaminant existing in, on or beneath the property (or
                groundwater) or any improvement or equipment on the property;
                unless due to the negligence or misconduct by either party.


22. Job         It is understood that one of the reasons for the rehabilitation of Swan’s
Creation:       is the opportunity for creating jobs for the community, targeting low
                income residents of Oakland. By signing below, the potential Tenant
                agrees to work with EBALDC and its partners to help meet these
                employment goals through notification of upcoming job openings and
                willingness to interview applicants referred through this program.
                EBALDC and its partners will take on the responsibility of careful
                screening for job qualifications, training, and support services for the
                job applicant to be successful and help meet the needs of the employer.
                Part of the program will include incentives for employers, which may
                include tax benefits and salary and training subsidies.

                Upon execution of the lease, Tenant authorizes Landlord to post a
23. Miscel-
                banner on the building that says, “Future Home of ___________”.
laneous


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After this Proposal is fully executed and all contingencies are removed,
the executed Proposal is to be used for drafting a Lease and is not
binding on either party until the Lease is executed by Tenant and
Landlord. Any conflicts between the executed Proposal and the Lease
shall be controlled by the Lease.




Agreed by Tenant:

      Date__________                _______________________________




      Address______________________________________________________

      Telephone:



Agreed by Landlord:

      Date__________                _______________________________
                                    By: Lynette Jung Lee, Executive Director of
                                    Swans Marketplace, Inc., General Partner of
                                    Swans Marketplace Partnership, L.P.
                                    310 8th Street, Suite 200
                                    Oakland, CA 94607

                                    (510) 287-5353




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