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MMD2003-00018 ERIOJ'\E 2S) SQRIVI'I'IIg BT000 COOZUJAJJAt November 18, 2003 CITY OF TIGARD OREGON Billiards& More Attn: Casey Lebold 1990 Noble Fir Lane S. Salem, OR 97306 Dear Mr. Lebold: This letter is in response to your request for Minor Modification (MMD2003-00018) approval to operate a retail establishment in the Les Schwab building located at 9385 SW Greenburg Road. The site is described as WCTM 1 S126CA tax lot 00300. The Tigard Community Development Code, Site Development Review Section, states; "if the requested modification meets any of the major modification criteria, that the request shall be reviewed as a new Site Development Review application." The original building was approved and constructed under a 1993 Site Development Review (SDR 93- 00025), and modified in 2000 (MMD2000-00012) to relocate the sidewalk, detention pond, and modify the parking lot to accommodate the move. Section 18.330.020.B.2 states that the Director shall determine that a major modification(s) has resulted if one (1) or more of the changes listed below have been proposed: 1. An increase in dwelling unit density or lot coverage for residential development. The proposal does not involve residential property. Therefore, this standard does not apply. 2. A change in the ratio or number of different types of dwelling units. This criterion is not applicable, as this request does not involve a residential development. 3. A change that requires additional on-site parking in accordance with Chapter 18.765. The site currently has 119 spaces available for parking. According to the information and site plan provided, the applicant has ample parking to accommodate the proposed Billiards Store. In fact, the building is 25,000 square feet, and would only require 88 parking spaces. Les Schwab requires 3.3 spaces per 1,000 square feet of space. At a size of 20,000 square feet of repair- oriented commercial, Les Schwab requires 66 spaces. The Billiards store would require 3.7 spaces per 1,000 square feet of space. At a size of 5,000 square feet Billiards & More requires 22 parking spaces. No additional on-site parking is required by this proposal. 4. A change in the type of commercial or industrial structures as defined by the Uniform Building Code. No change in the structural occupancy type of the building is proposed. Therefore, this criterion is not applicable. 5. An increase in the height of the building(s) by more than 20 percent. The building height will not be increased as a result of this proposal. 13125 SW Hall Blvd., Tigard, OR 97223(503)639-4171 TDD(503)684-2772 '.!. • 6. A change in the type and location of accessways and parking areas where off-site traffic would be affected. This request will not require a change in accessways or parking areas where off-site traffic would be affected. Therefore, this criterion does not apply. 7. An increase in vehicular traffic to and from the site and the increase can be expected to exceed 100 vehicles per day. This modification is not expected to generate anymore vehicular trips than what was already occurring when the video rental store was in operation. Therefore, this criterion is satisfied. 8. An increase in the floor areas proposed for a non-residential use by more than ten percent excluding expansions under 5,000 square feet. There is no increase in floor areas proposed for this development. This standard is not applicable. 9. A reduction in the area reserved for common open space and/or usable open space that reduces the open space area below the minimum required by the code or reduces the open space areas by more than ten percent. The modification will not affect landscaping or open space. 10. A reduction of project amenities (recreational facilities, screening; and/or, landscaping provisions) below the minimum established by the code or by more than ten percent where specified in the site plan. The addition will not reduce project amenities. 11. A modification to the conditions imposed at the time of Site Development Review approval that is not the subject of criteria (B). 1 through 10 above. The modification will not impact any of the conditions of approval of SDR93-00025. THIS REQUEST HAS BEEN APPROVED SUBJECT TO THE FOLLOWING CONDITION AND THE AFOREMENTIONED FINDINGS. PLEASE SUBMIT A COPY OF THIS LETTER WITH YOUR PROPOSED MODIFICATIONS TO THE BUILDING DEPARTMENT. This request is determined to be a minor modification to an existing site. The Director's designee has determined that the proposed minor modification of this existing site will continue to promote the general welfare of the City and will not be significantly detrimental, nor injurious to surrounding properties provided that, development which occurs after this decision complies with all applicable local, state, and federal laws. If you need additional information or have any questions, please feel free to call me at (503)639-4171 ext. 2434. Sincerely, Brad Kilby, AICP Associate Planner c: 2003 Planning Correspondence file SDR 93-00025 Land use file (microfilmed) Page 2 of 2 APPLICANT MATERIALS 311NOR MODIFICA ION AO A i� TYPE I APPLICATION CITY OF TIGARD 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 FAX: (503) 684-7297 GENERAL INFORMATION / /I Property Address/Location(s): "///��39 SU✓ 6feerlOH/, Q . ---F;3.„42 972 Z3 Tax Map & Tax Lot#(s): J.510,(c) CA (>300 FOR STAFF USE ONLY Site Size: Case No.(s): O M° .r:)-011 —CIO t g Applicant*: G-asay L eSo i Q 108A Q;II%aicQs 4'10ve Other Case No.(s): Address: ja'r0 Aiob(L , c L,.e S Receipt No.: a00-5 —5-DI 7 City/State: 54/v, ' 0R- Zip: 97306 Application Accepted By: C- C Primary Contact: Date: 1/ — / 7 —0 3 Phone: 503-31-Z680/503-245.2/00 ax: Property Owner/Deed Holder(s)*: (Attach list if more than one) Date Determined Complete: Le-5 cc wgb T.'ic sto✓cs Address: `1S85 Sw Cree" 6c.r.) Rd1 Phone: SYk`116'SZ3$ Rev.2/28/2003 i:\curpin\masters\revised\minormod.mst City/State: T,Saidt oR 8a Zip: y7ZZ3 F` ' 341b-.1 '1 moan wQQtess- P.D. 80qr b6-7 97751 Wher1 the owner and the applicant are different people, the applicant REQUIRED SUBMITTAL ELEMENTS must be the purchaser of record or a lessee in possession with written (Note: applications will not be accepted authorization from the owner or an agent of the owner. The owner(s) without the required submittal elements) must sign this application in the space provided on the back of this form or submit a written authorization with this application. Er PROPOSAL SUMMARY Application Form The owners of record of the subject property request permission for a Q Owner's Signature/Written Authorization Minor Modification. To review a modification as a Minor Title Transfer Instrument or Deed Modification, the Director must first find that the expansion does not invoke one or more of the 11 criteria discussed within Section Emil' Site Development Plan (3 copies) 18.120.070(B) of the Tigard Development Code. If the modification exceeds the maximum allowed under any one or more of the ❑ Site/Plot Plan (reduced 81/2'x 11") following criteria, a Major Modification review is required. Major Modifications are processed in the same manner as a new Site Et Applicant's Statement (3 copies) Development Review. In a separate letter, please address the (Addressing Criteria Under Section 18.360.050(B) criteria below contained in Section 18.360.050(B) including a detailed ❑ Filing Fee $446.00 response to each criteria. 1. An Increase in dwelling unit density or lot coverage for residential development. Jurisdiction: ❑ City ❑ Urb 2. A change in the ratio or number of different types of dwelling units. 3. A change that requires additional on-site parking in accordance with Chapter 18.765. In addition, the Director must find that the 4. A change in the type of commercial or industrial structures as defined by the Uniform proposed change complies with the underlying Building Code. standards of the applicable zoning district. To 5. An increase in the height of the building(s)by more than 20%. complete this review, the Applicant's proposal 6. A change in the type and location of accessways and parking areas where off-site must include a discussion indicating how the traffic would be affected. site expansion will continue to comply with the 7. An increase in vehicular traffic to and from the site and increase can be expected to minimum setback, building height, parking land exceed 100 vehicles per day. landscaping standards. Other applicable 8. An increase in the floor area proposed for a non-residential use by more than 10% requirements such as minimum Clear Vision excluding expansions under 5,000 square feet. areas near driveways and street intersections 9. A reduction in the area reserved for common open space and/or usable open space may also be applicable depending on where that reduces the open space area below the minimum required by this code or the building expansion is proposed to be reduces the open space area by more than ten percent. constructed on the site. 10. A reduction of project amenities (recreational facilities, screening, and/or, landscaping provisions) below the minimum established by this code or by more than 10% where specified in the site plan. 11. A modification to the conditions imposed at the time of Site Development Review approval that are not the subject of Criteria 1 through 10 above. S APPLICANTS: To consider an application complete, you will need to submit ALL of the REQUIRED SUBMITTAL ELEMENTS as described on the front of this application in the"Required Submittal Elements" box. (Detailed Submittal Requirement Information sheets can be obtained, upon request,for all types of Land Use Applications.) THE APPLICANT(S) SHALL CERTIFY THAT: • The above request does not violate any deed restrictions that may be attached to or imposed upon the subject property. ♦ If the application is granted, the applicant will exercise the rights granted in accordance with the terms and subject to all the conditions and limitations of the approval. ♦ All of the above statements and the statements in the plot plan, attachments, and exhibits transmitted herewith, are true; and the applicants so acknowledge that any permit issued, based on this application, and may be revoked if it is found that any such statements are false. • The applicant has read the entire contents of the application, including the policies and criteria, and understands the requirements for approving or denying the application. SIGNATURES of each owner of the subject property. DATED this I Z t day of WO e h-, 20 03 1 Owner's Sig Sig e Owner's Signature Owner's Signature Owner's Signature At' CITY OF TIGARD 11/17/2003 13125 SW Hall Blvd. 2:19:3IPM 1. Tigard,Oregon 9 72 23 AS I I (503)63 9-417 1 Receipt #: 27200300000000005017 Date: 11/17/2003 Line Items: Case No Tran Code Description Revenue Account No Amount Paid MMD2003-00018 [LANDUS] Minor Modification 100-0000-438000 446.00 Line Item Total: $446.00 Payments: Method Payer User ID Acct./Check Approval No. How Received Amount P Check BILLIARDS&MORE CAC 65(1I In Person 44 . Payment Total: $446.00 II III Request for Minor Modification. Type 1 Application. City of Tigard 13125 SW Hall Blvd. Tigard OR 97223 503-639-4171 503-684-7297 fax I am applying to place my business within the Les Schwab tire store at 9385 SW Greenburg Rd. My Business, Billiards & More, will be a retail store selling home recreation equipment. It requires no modifications to the site other than finishing interior space and signage. My business will not invoke any of the 11 criteria listed in section 18.120.070. B of the development code. The space I will be occupying was constructed as addition retail space to be leased when this property was built by Les Schwab. I believe you had made copies of all of the documentation you needed when I was in your office last week. If you have any needs for additional documentation please let me know promptly. I am hoping to occupy this building before months end. If I can do anything to help speed this process please don't hesitate to call me. Thank you, all help will be greatly appreciated. Sincerely, Casey Lebold <> .0 O� Q 1 iTxrii. r.)1:t A `'' YI i • V 0 ;I o 0n, 4w O 1111 e% .■ e : 1 PI rs'". '" I I [ I li II a. 4 ; 11 i 11 i11 _ _ ! i ° hu _ _ IIci'If:III I 1, 1 ii$ b — 1 li LEI 8 ° Ii 0s +— i I= X _ 0 IIL131 I.s q �l b - •� _ ii i�1I �� :� a _ el I to 6 s ' O a I' Z ' � �IIIIIIII ! 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PARTIES. 511( - 10"12l V4 1 This Lease, dated as of this day of September 2003, is made by and between SFP-B Limited Partnership ("Landlord")and CASEY LEBOLD DBA BILLIARDS&MORE ("Tenant"). 2. LEASE OF PREMISES. (a) Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises shown on Exhibit"A"and further described in Section 3(i). (b) This Lease is subject to the terms, covenants and conditions herein set forth and each party covenants as a material part of the consideration for this Lease to keep and perform each and all of its terms, covenants and conditions. 3. DEFINITIONS. As used in this Lease, the following terms have the following meanings: • (a) Broker(s) Landlord's Broker: CB RICHARD ELLIS,INC. Tenant's Broker: Bluestone&Hockley Landlord's Broker has disclosed to Landlord and Tenant that Landlord's Broker is acting in this transaction as the agent of Landlord,exclusively. (b) Annual Rental Increase: Rent shall Increase as follows: YEAR 2: $5,500/MONTH YEARS 3-5: $6,000/MONTH (c) Landlord's Mailing Address: Les Schwab Tire Centers c%Bonnie McCoy at P.O. Box 667, Prineville, OR 97754 Telephone number(541)416-5515, facsimile number(541)416-5454 (d) Lease Term: The Lease Term shall commence as of the Lease Term Commencement Date and shall continue thereafter for a period of (5) years and No(-0-) months. Tenant may extend the Lease Term for two(2) additional periods of five(5)years each pursuant to the terms set forth in Exhibit"C". (e) Lease Term Commencement Date: The lease term shall commence Sixty(60)days after substantial completion of Landlord's Work in the Premises (as defined in Exhibit "B" to the Lease). The date of such substantial completion is the date the Premises are substantially complete as to Landlord's Work, except for such work that Landlord cannot complete until Tenant performs necessary portions of Tenant's Work (as defined in Exhibit "B"). Substantial completion of Landlord's Work shall be evidenced by notice to Tenant from Landlord's architect or designated representative that substantial completion has occurred. Tenant shall commence Tenant's Work promptly upon substantial completion of Landlord's Work and shall diligently completed Tenant's Work so that Tenant can promptly open for business in the Premises. (f) Minimum Rent: FIVE THOUSAND AND N0/100 DOLLARS ($5,000.00) per month, to be adjusted as provided in Section 3(b)above. (g) Premises: That portion of the Shopping Center containing approximately FIVE THOUSAND AND EIGHTY- THREE(5,083) square feet of floor area, shown by diagonal lines on Exhibit"A". (h) Rental Adjustment Date: The first day of the thirteenth calendar month following the Lease Term Commencement Date ("First Rental Adjustment Date") and TWELVE(12) months thereafter as described in Section 3(b)above. (i) Security Deposit(Section 5): FIVE THOUSAND AND NO/100 DOLLARS($5,000.00) . Fomi No.6226 Rev.6/93 1 f:\cue ball\cue ball lease-2 revised.doc (j) Premises: That portion of the building of which the retail space is a part and improvements on the real property("Property") located at 9385 SW GREENBURG RD., TIGARD, OREGON and further described on Exhibit"A". (k) Tenant's Mailing Address: BILLIARDS&MORE,1990 NOBLE FIR LANESOUTH,SALEM, OR 97306. (1) Use: Tenant shall use the Premises for retail billard table sales. 4. MINIMUM RENT. (a) Tenant agrees to pay to Landlord the Minimum Rent, without notice or demand, in advance, on or before the first day of each and every successive calendar month during the Lease Term, commencing on the Lease Term Commencement Date, except the first month's rent shall be paid upon the execution hereof. (b) Rent for any period which is for less than one (1) month shall be a prorated portion of the monthly installment herein based upon a thirty (30) day month. All rental shall be paid to Landlord, without deduction or offset, in lawful money of the United States of America and at such place as Landlord may from time to time designate in writing. (c) The Minimum Rent set forth at Section 3(f) shall be adjusted commencing on the First Rental Adjustment Date and thereafter as set forth in Section 3(b). 5. KICKOUT. Tenant shall have the one-time right to terminate this Lease at the 30th month from the commencement date hereof. Such right shall be exercised with not less than six (6) months prior written notice to Landlord accompanied by a payment in an amount equal to the rent which would other wise be payable for the two (2) months immediately following such termination as a payment for the exercise of such right to terminate this Lease. Prior to and to effect such termination, Tenant shall reimburse Landlord for all unamortized brokerage commissions which Landlord has incurred in connection with this Lease. Failure of Tenant to make payment of such amounts or of any rent which becomes due prior to the date on which Tenant seeks to terminate this Lease shall nullify Tenant's notice of termination and this Lease shall continue in force and effect the same as if Tenant had not elected to terminate this Lease or given Landlord notice of such intended termination. 6. USES PROHIBITED. Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which is not within the permitted use of the Premises which will in any way increase the existing rate of or affect any fire or other insurance upon the Shopping Center or any of its contents, or cause a cancellation of any insurance policy covering the Shopping Center or any part thereof or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Shopping Center or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. 7. COMPLIANCE WITH LAW. Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire underwriters or other similar bodies now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant's improvements or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact as between Landlord and Tenant. Form No.6226 Rev.6/93 2 f:\cue ball\cue ball lease-2 revised.doc 8. ALTERATIONS AND ADDITIONS. Tenant shall not make or allow to be made any alterations, additions or improvements to or of the Premises or any part thereof without first obtaining the written consent of Landlord. Any alterations, additions or improvements to or of said Premises, including, but not limited to wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to Landlord and shall be surrendered with the Premises. In the event Landlord consents to the making of any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant's sole cost and expense, in a good and workmanlike manner in accordance with all applicable laws (including laws relating to the use of hazardous materials such as asbestos-containing materials) and diligently completed. Upon the expiration or sooner termination of the Lease Term, Tenant shall,upon written demand by Landlord, given at least thirty (30) days prior to the end of the Lease Term, at Tenant's sole cost and expense, forthwith and with all due diligence,remove any alterations, additions, or improvements made by Tenant, designated by Landlord to be removed, and Tenant shall, forthwith and with all due diligence, at its sole cost and expense, repair any damage to the Premises caused by such removal. 9. REPAIRS. (a) By entry hereunder, Tenant shall be deemed to have accepted the Premises as being in good, sanitary order, condition and repair. Tenant shall, at Tenant's sole cost and expense, keep the Premises and every part thereof in good condition and repair (except as hereinafter provided with respect to Landlord's obligations) including without limitation, the maintenance, replacement and repair of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and lighting fixtures and conduits, heating and air conditioning system (when there is an air conditioning system), provided that in no manner shall Tenant change the colors or materials of the building exterior without the prior written permission of Landlord, which approval may be withheld in Landlord's sole discretion. Tenant shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Landlord in good condition,broom clean, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Any damage to adjacent premises caused by Tenant's use of the Premises shall be repaired at the sole cost and expense of Tenant. (b) Notwithstanding any other provision hereof, Landlord at its expense shall maintain and repair the structural portions of the Shopping Center, including the exterior walls and the structural portions of the roof, unless such maintenance and repair are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. Except as provided in Section 25 hereof, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations or improvements in or to any portion of the Shopping Center or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant waives the right to make repairs at Landlord's expense under any law, statute or ordinance now or hereafter in effect. 10. LIENS. Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant. Landlord may require, at Landlord's sole option, that Tenant shall provide to Landlord, at Tenant's sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1-1/2) times the estimated cost of any improvements, additions, repairs or alterations in the Premises which Tenant desires to make, to insure Landlord against any liability for mechanics'and materialmen's liens and to insure completion of the work. 11. ASSIGNMENT AND SUBLETTING. Form No.6226 Rev.6/93 3 f:lcue ball\cue ball lease-2 revised.doc Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the Premises or any part thereof, or any right or privilege appurtenant thereto, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent shall not be unreasonably withheld. A consent to one assignment, subletting, occupation or use by any other person shall not be deemed to be a consent to any other assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any such assignment or subletting without such consent shall be void, and shall, at the option of Landlord, constitute a default under the terms of this Lease. In the event that Landlord shall consent to a sublease or assignment hereunder, Tenant shall pay Landlord reasonable fees, not to exceed Five Hundred and No/100ths Dollars ($500.00), incurred in connection with the processing of documents necessary to giving of such consent. 12. HOLD HARMLESS. (a) Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant's use of the Premises or from the conduct of its business or from any activity, work, or other things done, permitted or suffered by Tenant in or about the Premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from all costs, attorneys' fees, and liabilities incurred in or about the defense of any such claim or any action or proceeding brought thereon. If any action or proceeding be brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises, from any cause other than Landlord's negligence; and Tenant hereby waives all claim in respect thereof against Landlord. Tenant shall give prompt notice to Landlord in case of casualty or accidents in the Premises. b) Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, failing plaster, steam, gas, electricity, water or rain which may leak from any part of the Shopping Center or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place resulting from dampness or any other cause whatsoever, unless caused by or due to the negligence of Landlord, its agents, servants or employees. Landlord or its agents shall not be liable for interference with the light, air, or for any latent defect in the Premises. 13. SUBROGATION. As long as their respective insurers so permit, Landlord and Tenant hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of the respective parties. Each party shall apply to their insurers to obtain said waivers. Each party shall obtain any special endorsements, if required by their insurer to evidence compliance with the aforementioned waiver. 14. LIABILITY INSURANCE. Tenant shall, at Tenant's expense, obtain and keep in force during the Lease Term a policy of commercial general liability insurance (sometimes known as comprehensive public liability insurance) insuring Landlord and Tenant (and, if requested by Landlord, Landlord's lender and property manager) against any liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be in the amount of not less than $1,000,000 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant hereunder. Tenant may provide this insurance under a blanket policy, provided that said insurance shall have a Landlord's protective liability endorsement attached thereto. If Tenant shall fail to procure and maintain said insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. Insurance required hereunder shall be in companies rated A:XII or better as set forth in the Form No.6226 Rev.6/93 4 f:kue ball\cue ball lease-2 revised.doc most current "Best's Key Rating Guide". Tenant shall deliver to Landlord, prior to right of entry, copies of policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Landlord. No policy shall be cancellable or subject to reduction of coverage. All such policies shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry. 15. UTILITIES. Tenant shall pay for all water, gas, heat, light,power, sewer charges, telephone service and all other services and utilities supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord of all charges jointly metered with other premises. 16. PERSONAL PROPERTY TAXES. Tenant shall pay, or cause to be paid, before delinquency any and all taxes levied or assessed and which become payable during the Lease Term upon all of Tenant's leasehold improvements, equipment, furniture, fixtures and any other personal property located in the Premises. In the event any or all of Tenant's leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Tenant shall pay to Landlord its share of such taxes within ten(10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant's property. 17. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate and/or modify. The rules and regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any said rules and regulations by any other tenants or occupants. 18. HOLDING OVER. If Tenant remains in possession of the Premises or any part thereof after the expiration of the Lease Term with the express written consent of Landlord, such occupancy shall be a tenancy from month to month at a rental in the amount of 125% of the last monthly Minimum Rent, plus all other charges payable hereunder, and upon all the terms hereof applicable to a month to month tenancy. 19. ENTRY BY LANDLORD. Landlord reserves, and shall at any and all times during business hours have, the right to enter the Premises to inspect the same, to submit said Premises to prospective purchasers or tenants, to post notices of non-responsibility, to repair the Premises and any portion of the Shopping Center of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of rent, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be unreasonably blocked thereby, and further providing that the business of Tenant shall not be interfered with unreasonably. Tenant hereby waives any claim for damages or for any injury or inconvenience to or interference with Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. Landlord at any and all times shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency, in order to obtain entry to the Premises without liability to Tenant except for any failure to exercise due care for Tenant's property and any entry to the Premises obtained by Landlord by any of said means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of,the Premises,or an eviction of Tenant from the Premises or any portion thereof. 20. TENANT'S DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant. Forn,No.6226 Rev.6/93 5 f:'cue ball\cue ball lease-2 revised.doc (a) The vacating or abandonment of the Premises by Tenant. (b) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due. (c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than described in (b), above, where such failure shall continue for a period of thirty (30) days after written notice thereof by Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty(30) day period and thereafter diligently prosecutes such cure to completion. (d) The making by Tenant of any general assignment or general arrangement for the benefit of creditors; or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy(unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant 'within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not discharged within thirty (30) days. 21. REMEDIES UPON TENANT'S DEFAULT. In the event of any such default or breach by Tenant, Landlord may at any time thereafter, in its sole discretion, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach: (a) Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including,but not limited to, the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the Premises; reasonable attorneys' fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent and other charges and Adjustments called for herein for the balance of the Lease Term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided; and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid installments of rent or other sums shall bear interest from the date due at the maximum legal rate; or (b) Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the rent and any other charges and Adjustments as may become due hereunder; or (c) Pursue any other remedy or combination of remedies now or hereafter available to Landlord under the laws or judicial decisions of the State in which the Premises are located. 22. DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation. If the nature of Landlord's obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to Form No.6226 Rev.6/93 6 f:\cue ball\cue ball lease-2 revised.doc terminate this Lease as a result of Landlord's default and Tenant's remedies shall be limited to damages and/or an injunction. 23. RECONSTRUCTION. (a) In the event the Premises are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to forthwith repair same, and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the Minimum Rent from the date of damage and while such repairs are being made, such proportionate reduction to be based upon the extent to which the damage and making of such repairs shall reasonably interfere with the business carried on by Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent. (b) In the event the Premises are damaged to any extent as a result of any cause other than the perils covered by fire and extended coverage insurance, Landlord shall have the option: (1) to repair, reconstruct or restore the Premises, in which event this Lease shall continue in full force and effect but the Minimum Rent shall be proportionately reduced as hereinabove provided in this Section during the period of such repair, reconstruction or restoration; or (2) to give notice to Tenant at any time within sixty (60) days after such damage, terminating this Lease as of the date specified in such notice, which date shall be no more than thirty (30) days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate on the date so specified in such notice and the Minimum Rent, reduced by a proportionate reduction, based upon the extent, if any, to which such damage interfered with the business carried on by Tenant in the Premises, shall be paid up to date of said such termination. (c) Anything to the contrary contained in this Section 25 notwithstanding, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Section occurs during the last twenty-four months of the Lease Term or any extension thereof. (d) Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any leasehold improvements,fixtures, or other personal property of Tenant. 24. EMINENT DOMAIN. If more than twenty-five percent (25%) of the Premises shall be taken or appropriated by any public or quasi- public authority under the power of eminent domain, either party hereto shall have the right, at its option, within sixty(60) days after said taking,to terminate this Lease upon thirty(30) days written notice. If either less than or more than 25% of the Premises are taken(and neither party elects to terminate as herein provided), the Minimum Rent thereafter to be paid shall be equitably reduced. If any part of the Shopping Center other than the Premises may be so taken or appropriated, Landlord shall with in sixty(60) days of said taking have the right at its option to terminate this Lease upon written notice to Tenant. In the event of any taking or appropriation whatsoever, Landlord shall be entitled to any and all awards and/or settlements which maybe given on account of the reduction in the value of the leasehold, the taking of the fee or otherwise and Tenant shall have no claim against Landlord for the value of any unexpired portion of the Lease Term. 25. PARKING AND COMMON AREAS. (a) Landlord covenants that parking areas of the Property as shown on the attached Exhibit "A" shall be at all times available for the non-exclusive use of Tenant during the full Lease Term or any extension thereof, provided that the condemnation or other taking by any public authority, or sale in lieu of condemnation, of any or all of such parking areas shall not constitute a violation of this covenant. Landlord reserves the right to change the entrances, exits, traffic lanes and the boundaries and locations of such parking areas, provided, however, that anything to the contrary contained in this Section notwithstanding, said areas shall at all times be substantially equal or equivalent to that shown on the attached Exhibit"A". Form No.6226 Rev.6/93 7 f:\cue ball\cue ball lease-2 revised.doc (b) Tenant, for the use and benefit of Tenant, its agents, employees, customers, licensees and sub-tenants, shall have the non-exclusive right in common with Landlord, and other present and future owners, tenants and their agents, employees, customers, licensees and sub-tenants, to use said Parking areas during the entire Lease Term,or any extension thereof, for ingress and egress, and automobile parking. (c) Tenant, in the use of said Parking areas, agrees to comply with such reasonable rules, regulations and charges for parking as Landlord may adopt from time to time for the orderly and proper operation of said Parking areas. Such rules may include but shall not be limited to the following: (1) the restricting of employee parking to a limited, designated area or areas; and (2) the regulation of the removal, storage and disposal of Tenant's refuse and other rubbish at the sole cost and expense of Tenant. 26. SIGNS. Tenant may affix and maintain upon the glass panes and supports of the show windows and within twelve (12) inches of any window and upon the exterior walls of the Premises only such signs, advertising placards, names, insignia, trademarks and descriptive material as shall have first received the written approval of Landlord as to type, size, color, location, copy nature and display qualities. Anything to the contrary in this Lease notwithstanding, Tenant shall not affix any sign to the roof. Tenant shall, however, erect two signs on the front of the Premises and on the side facing the mall not later than the date Tenant opens for business. The design of such sign shall be prepared by Tenant in accordance with reasonable requirements of Landlord and any applicable covenants and restrictions for the Washington Square business area and shall be subject to the approval of Landlord. Notwithstanding the foregoing, any Tenant sign must comply with all applicable governmental regulations and Landlord's approval of a sign shall not be deemed in any manner to be a review of such sign for compliance with such terms. If Tenant is able to secure the necessary approvals, Tenant may also place a sign on Landlord's sign pole generally as shown on Exhibit "A," provided that Tenant shall solely be responsible for all costs of constructing, installing, and maintaining such sign. Tenant may have the option of placing a burm sign in the planting area along Greenburg Road, assuming that tenant can obtain the necessary permits from the governing authority. 27. DISPLAYS. Tenant may not display or sell merchandise or allow grocery carts or other similar devices within the control of Tenant to be stored or to remain outside the defined exterior walls and permanent doorways of the Premises. Tenant further agrees not to install any exterior lighting, amplifiers or similar devices or use in or about the Premises any advertising medium which may be heard or seen outside the Premises, such as flashing lights, searchlights,loudspeakers,phonographs or radio broadcasts. 28. AUCTIONS. Tenant shall not conduct or permit to be conducted any sale by auction in, upon or from the Premises whether said auction be voluntary, involuntary,pursuant to any assignment for the payment of creditors or pursuant to any bankruptcy or other insolvency proceeding. 29. HOURS OF BUSINESS. (a) Subject to the provisions of Section 25 hereof, Tenant shall continuously during the entire Lease Term conduct and carry on Tenant's business in the Premises and shall keep the Premises open for business and cause Tenant's business to be conducted therein during the usual business hours of each and every business day as is customary for businesses of like character in the city in which the Premises are located to be open for business; provided, however, that this provision shall not apply if the Premises should be closed and the business of Tenant temporarily discontinued therein on account of strikes, lockouts or similar causes beyond the reasonable control of Tenant. Tenant shall keep the Premises adequately stocked with merchandise, and with sufficient sales personnel to care for the patronage, and to conduct said business in accordance with sound business practice. 30. GENERAL PROVISIONS. Form No.6226 Rev.6/93 8 f:\cue ball\cue ball lease-2 revised.doc (a) Plats and Riders. Clauses, exhibits, schedules, plats, riders and addenda, if any, affixed to this Lease are a part hereof. (b) Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent 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 Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding default at the time of the acceptance of such rent. (c) Joint Obligation. If there be more than one Tenant, the obligations hereunder imposed shall be joint and several. (d) Marginal Headings. The marginal headings and section titles to the sections of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. (e) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. (f) Successors and Assigns The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. (g) Recordation. Neither Landlord nor Tenant shall record this Lease,but a short form memorandum hereof may be recorded at the request of, or with the permission of,Landlord. (h) Quiet Possession. Upon Tenant's paying the rent reserved hereunder and observing and performing all of the covenants, conditions and provisions on Tenant's part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire Lease Term,subject to all the provisions of this Lease. (i) Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any sum due from Tenant shall not be received by Landlord's designee within ten (10) days of when due, then Tenant shall pay to Landlord a late charge equal to the maximum amount permitted by law(and in the absence of any governing law, ten percent (10%) of such overdue amount), plus any attorneys' fees incurred by Landlord by reason of Tenant's failure to pay rent and/or other charges when due hereunder. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder. (j) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. (k) Inability to Perform. This Lease and the obligations of Tenant hereunder shall not be affected or impaired because Landlord is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of Landlord. (1) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect. Form No.6226 Rev.6/93 9 f.•\cue ball\cue ball lease-2 revised.doc (m) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, whenever possible,be cumulative with all other remedies at law or in equity. (n) Choice of Law. This Lease shall be governed by the laws of the State in which the Premises are located. (o) Attorneys'Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party shall be entitled to recover its expenses and costs, including its attorneys' fees and expert witness fees in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable. (p) Sale of Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser,to have assumed and agreed to carry out any and all of the covenants and obligations of Landlord under this Lease. (q) Subordination; Attornment. Upon request of Landlord, Tenant will in writing subordinate its rights hereunder to the lien of any mortgage or deed of trust, to any bank, insurance company or other lending institution, now or hereafter in force against the Premises, and to all advances made or hereafter to be made upon the security thereof. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Premises, Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. The provisions of this Section to the contrary notwithstanding, and so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full term hereof. (r) Notices. Wherever this Lease requires or permits notice or demand to be given by either party to the other, such notice or demand shall be in writing and given or served either personally or in writing forwarded by certified mail,return receipt requested, addressed to the parties at the addresses specified in Sections 3(c) and (k) hereof. Either party may change such address by written notice to the other as herein provided. (s) Tenant's Statement(Estoppel Certificate). Tenant shall at any time and from time to time, upon not less than three days prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, and (b) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, and(c) setting forth the date of commencement of rents and expiration of the Lease Term. Any such statement may be relied upon by the prospective purchaser or encumbrancer of all or any portion of the real property of which the Premises are a part. (t) Authority of Tenant. If Tenant is a corporation, each individual executing this Lease on behalf of Tenant represents and warrants that he or she has full authority to do so and that this Lease binds the corporation. If Tenant is a partnership, each individual executing this Lease for Tenant represents and warrants that he, she or it is a general partner of the partnership, that he, she or it has full authority to sign for the partnership and that this Lease binds the partnership and all general partners of the partnership. 31. BROKERS. Tenant warrants that it has had no dealings with any real estate brokers or agents in connection with the negotiation of this Lease excepting only the brokers named in Section 3(a) of this Lease, and it knows of no other real estate broker or agent who is entitled to a commission in connection with this Lease. 32. COMPLIANCE. Form No.6226 Rev.6/93 10 f\cue ball\cue ball lease-2 revised.doc The parties hereto agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment In Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act. LANDLORD: TENANT: SFP-B LIMITED PARTNERSHIP Casey Lebold DBA Billiards & More - By: Richard B. Borg an, President By: Casey Lebold SSC-B, Inc., its General Partner Title: PRINCIPAL CONSULT YOUR ATTORNEY - If this Lease has been filled in it has been prepared for submission to your attorney for his or her approval. No representation or recommendation is made by CB Richard Ellis, Inc. or its agents or employees as to the legal sufficiency, legal effect,or tax consequences of this Lease. Form No.6226 Rev.6/93 11 f:cue ball cue ball lease-2 revised.doc Form No.6226 Rev.6/93 12 E\cue ball\cue ball lease-2 revised.doc Exhibit A 2000' approx. to be used as warehouse/ store room. Define with pony wall OK. Ware house lighting OK. Minimal electric out- lets needed. No drywall needed in this area. side door utility sink • • 3000' approx. to be show- bath room. Vanilla shell to 10'. • Sufficient electric outlets. HVAC ducting finished. Paint ceiling ducting etc. to top of drywall. Black elec- tnc lighting grid to be in- stalled to 12' height. 4X4 or 6X6 grid ok with sufficient fluorescent lighting. Additional spot lighting will be desired. heed eletrical run to front ar d side of building for sitnage. Single unisex bath OK. Utility sink would be desirable on back side of pony wall adjacent to bathroom. entrance Form No.6226 Rev.6/93 13 f:\cue ball\cue ball lease-2 revised.doc • Exhibit B Vanilla Shell Description ❑ Space will be demised and walls will be finished; ready for paint as shown on Exhibit A. Rear (aprox) 2,000 sf warehouse portion seperated by 10 foot poney wall, the exact location of which to be confirmed with tenant. Warehouse lighting OK. Minimal electrical Outlets needed. No drywall needed in this area. Utility sink on back of poney wall adjacent to bathroom. Front area (aprox) 3,000 sf showroom vanilla shell finished to 10 feet. Paint ceiling ducting etc to top of drywall. ❑ Electrical service for tenant lighting and electric will be distributed throughout the retail space including Black electric lighting grid to be installed to 12 foot height. 4X4 or 6X6 grid OK with sufficient fluorescent lighting and 25 additional moveable spotlights. ❑ Service will be a minimum 200-amp subpanel (voltage: 120/208). ❑ HVAC capacity will be provided at 400 square feet per ton. HVAC will be warranted for one year. ❑ Plumbing: One (1) ADA bathrooms will be installed per local code in an accessible location. ❑ Floor slab will be finished(clean and level). ❑ Storefront and all exterior windows and doors will be in good working condition. ❑ If sprinkler system is required by code and does not exist, landlord will supply adequate sprinkler coverage, including mains, branch lines, and heads; sprinkler head layout and height per tenant's space plan. Existing sprinkler systems will be altered per tenant's layout and by code for tenant's use. Form No.6226 Rev.6/93 14 f:\cue ball\cue ball lease-2 revised.doc . • EXHIBIT C OPTION TO RENEW Provided Tenant is not in default at the time it exercises its option and is not in default at any time thereafter until the commencement of the renewal term,Tenant shall have the one time right to extend the term of the Lease for two (2) periods of five (5)years each. Tenant will provide Landlord written notice of its intent to exercise its option not less than 180 days prior to the expiration of the primary term. All terms and conditions of the Lease shall remain unchanged except that Base Rent shall be adjusted to then prevailing market rents for similar quality space,but in no event shall the Base Rent be less than the rental rate paid in the most recent period. • Form No.6226 Rev.6/93 15 f:\cue ball\cue ball lease-2 revised.doc