EXHIBIT 10.3
FIRST ADDENDUM TO LEASE
This First Addendum to Lease is made on October 10, 1994 between XXXXXXX
XXXXXX JOINT VENTURE, a California general partnership as successor in interest
to PINKWOOD PROPERTIES CORP., a New York corporation ("Landlord"), whose address
is 00000 Xxx Xxxxxxx Xxxxxxxxx, Xxxxx 000, Xxx Xxxxxxx, XX 00000, and UNITED
RESTAURANTS, INC., a Delaware corporation ("Tenant"), whose address is c/o Xxxxx
Xxxxxxx, 0000 Xxxx Xxxxx Xxxxx, Xxxxxxx Xxxxx, XX 00000, who agree as follows:
A. Landlord and Tenant have entered into that certain Lease dated as
of July 1, 1994 (the "Lease"), covering certain space commonly known as Suite
R-01 in the Building located at 000 Xxxxx Xxxxx Xxxxx, Xxxx of Beverly Hills,
California, as more particularly described in the Lease.
B. All terms defined in the Lease shall have the same meaning when
used in this First Addendum to Lease.
NOW, THEREFORE, in consideration of the covenants and agreements contained
herein, the parties hereto agree as follows:
1. EXPANSION OF PREMISES. Landlord and Tenant have agreed that the
Premises shall be expanded to include the area shown hatched in black (the
"Expansion Space") on the attached Exhibit A to First Addendum - Suite Plan (the
entire Premises, including the Expansion Space, shall be hereinafter referred to
as the "Expanded Premises") on December 5, 1994 (the "Expansion Commencement
Date"). Landlord and Tenant have further agreed to modify or amend certain terms
of this Lease with respect to such expansion. (See Paragraphs 2 through 8
below.) Except as otherwise expressly set forth herein, all of the terms of the
Lease shall be applicable to the Expansion Space.
2. EXPANSION: AREA. The Expansion Space is deemed to be approximately
2,656 useable square feet and approximately 3,054 rentable square feet. Landlord
and Tenant acknowledge and agree that the actual Useable and Rentable Area of
the Expansion Space may be somewhat more or less than the figures calculated,
and that variations in the methods of these calculations exist in the industry.
Landlord and Tenant agree, however, that for all purposes of the Lease and this
Addendum, the figures stated herein are deemed to be the Useable and Rentable
Area of the Expansion, as the case may be. It is acknowledged that for purposes
of this First Addendum that Rentable Area for the Expansion Space is calculated
as 1.15 times estimated multi-tenant useable area, regardless of what actual
common areas of a floor and/or of the Building may be. The basis of this
calculation of 1.15 times estimated useable area is to provide a general basis
for comparison and pricing of this space in relation to other spaces in the
market area.
3. EXPANSION: MONTHLY BASE RENT. Effective on the Expansion Commencement
Date, the Monthly Base Rent shall be adjusted to include the Expansion Space.
The Monthly Base Rent payable pursuant to the Lease shall be increased by the
amount of $5,344.50 per month for the Expansion Space.
4. OPERATING COSTS AND TAXES. With respect to the Expansion Space only,
commencing as of January 1, 1996, Tenant shall pay in accordance with Section 3
of the Lease: (a) 7.73% of the increases in Operating Costs (defined in Section
3.A.(ii) of the Lease) for the retail space Operating Cost pool over the
Operating Costs for the calendar year 1995 (the "Expansion Space Base Year"),
and (b) 3.15% of increases in Taxes (defined in Section 3.A.(i) of the Lease)
for the Project over the Taxes for the Project for the Expansion Space Base
Year.
5. CONDITION OF PREMISES. Tenant shall thoroughly inspect the Expansion
Space prior to the Expansion Commencement Date. Tenant agrees that Tenant's
acceptance of the Expansion Space evidenced by Tenant's entry into possession
thereof shall constitute Tenant's unqualified acceptance of the Expansion Space,
without representation or warranty, express or implied, in its then-current
"AS-IS" condition. The terms and conditions set forth in Section 27.O. of the
Lease shall apply to the Expansion Space.
6. PARKING. Tenant shall be entitled to up to an additional eight (8)
unreserved parking spaces in the Building's parking structure at the monthly
rates charged by Landlord or Landlord's parking operator for such parking which
rates may be subject to change from time to time.
7. SECURITY DEPOSIT. In addition to the Security Deposit/Letter of Credit
required under the Lease, Tenant shall at all times maintain on deposit with
Landlord cash in the amount of $5,344.50 as security for the full and faithful
observance and performance of all of the covenants and agreements of this Lease
to be observed or performed by Tenant (expressly including, without limitation,
the payment as and when due of the Monthly Base Rent, Operating Costs and Taxes,
and any other sums or damages payable by Tenant hereunder) and the payment of
any and all other damages for which Tenant shall be liable by reason of any act
or omission contrary to any of said covenants or agreements. If at any time
Tenant shall be in default in the payment of any such Monthly Base Rent,
Operating Costs and Taxes, and/or any other sums or damages or shall otherwise
be in default in the observance or performance of any of the covenants or
agreements of this Lease to be observed or performed by Tenant beyond any
applicable notice and cure period, then, at Landlord's election, the cash on
deposit with it as aforesaid may be applied by Landlord to the payment of the
Monthly Base Rent, Operating Costs and Taxes, and other sums or damages in
respect of which Tenant is so in default and/or, if Tenant is otherwise in
default in the observing or performing as aforesaid of any of the covenants or
agreements of this Lease beyond any applicable notice and cure period, said cash
on deposit may be applied by Landlord to the payment of such costs and expenses
as Landlord shall incur in curing any such default. If as a result of any such
application of any such cash, the amount of cash so on deposit with Landlord
shall at any time be less than that hereinabove specified, Tenant shall within
ten (10) days after demand therefor deposit with Landlord additional cash in an
amount equal to the deficiency and Tenant's failure to do so shall, if not cured
within three (3) business days after notice to Tenant of such failure, be a
material breach of this Lease. If, at the expiration of the term of this Lease,
and any extensions thereto, all of such Monthly Base Rent, Operating Costs and
Taxes, or other sums or damages, costs or expenses shall have been paid by
Tenant to Landlord and Tenant shall not be in default in the observance or
performance of any other covenant or agreement of this Lease, then Landlord
shall return to Tenant, without interest, all or such part of the cash, if any,
then on deposit with Landlord pursuant to this Paragraph 7. Landlord shall have
the right to commingle such cash with its general assets and, unless otherwise
required by law, Landlord shall not be obligated to pay Tenant interest thereon.
8. EARLY OCCUPANCY. Upon the execution and delivery of this First
Addendum, Tenant may enter the Expansion Space for the purpose of installing its
tenant improvements and furniture, fixtures and equipment therein.
9. (a) USE. In addition to the uses permitted under the Lease, Tenant may
use the Expansion Space for any other legally permitted use which is in keeping
with the reputation for the Project as a first-class office and retail complex
in the central business district of Beverly Hills, California. Without limiting
the generality of the foregoing, Tenant may, subject to obtaining all required
governmental approvals and consents (if required), use the Expansion Space for
parties and social events, both public and private, receptions of all kinds,
meetings and banquets, both public and private, and the establishment of private
or public clubs. Tenant may provide restaurant and food service to any or all
such activities and events. Notwithstanding anything to the contrary contained
in the Lease, Tenant may rent out the Expansion Space to caterers or other
operators for any such receptions, parties or events. However, it is expressly
understood that such uses do not include any public use such as a night club, or
dance club, nor for any other public use that would unreasonably interfere with
the operation of a retail/office complex.
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(b) HOURS OF OPERATION. Tenant shall not be required to be open for
business and continuously operate in the Expansion Space during the mandatory
minimum hours of operation set forth in Section 9.B. of the Lease. Rather,
Tenant may, subject only to any applicable laws, operate its business in the
Expansion Space at any time and shall not be obligated to any minimum hours of
operation in the Expansion Space.
10. REAFFIRMATION. Except as herein modified or amended, the parties
hereto ratify and affirm all of the remaining obligations of the parties under
the Lease.
IN WITNESS WHEREOF, Landlord and Tenant have executed this First Addendum
to Lease as of the date first above written.
Landlord: Tenant:
XXXXXXX XXXXXX JOINT VENTURE, UNITED RESTAURANTS, INC.,
a California general partnership a Delaware corporation
By: XXXXXXX, XXXXXX & COMPANY,
its agent By: /s/ Xxxxx Xxxxxxx
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Its: President
By: /s/ Xxxxxxx X. Xxxxxx
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Xxxxxxx X. Xxxxxx By:
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Its:
Dated: 10/24/94
------------------- Dated:
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Exhibit A to First Addendum - Suite Plan
[FLOOR PLAN GRAPHIC OMITTED]
2nd Floor
Suite R-01 - Expansion Space
Rentable Area of Expansion Space: 3,054 approximate square feet
Useable Area of Expansion Space: 2,656 approximate square feet
