CST Organic Recycling-2006-11 R
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LEASE AGREEMENT
City of Grand Terrace Community Redevelopment Agency ,
and
CST Organ lc.Recycl1ng
DATE: April 13, 2006 at Grand Terrace, California
1. FACTS:
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1.1 The Landlord(City of Grand Terrace Community Redevelopment Agency)intends to lease to Tenant(CST
Organic Recycling,Inc.)real estate located immediately north of the Highgrove Power Plant(A portion of
Assessor's Parcel 1167-151-024). The total leased area is approximately two(2)acres.
1.2 The Landlord acknowledges receipt of$4,000.00 to be applied as follows:
Last month's rent $2,000.00
First month's rent $2,000.00,
1.3 The following checked addendums are made a part of this nonresidential lease:
Property Description To be defined in Exhibit"A"
Condition of Premises Vacant land,fenced
2. TERM OF LEASE:
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2.1 The lease commences April 14,2006,and expires April 30,'12r, and is a month to month;tenancy.
2.2 The lease terminates on the last day of the term without further notice,but may be extended for an on a
monthly basis for up to one additional year with written notice from Tenant and agreement;by the City. ,
2.3 If Tenant holds over,Tenant to be liable for damages at the daily rate of$ 100.00.
2.4 Cancellation. This agreement may be canceled by either party with(30)days written notice to the
responding party.
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3. RENT:
3.1 Tenant to pay rent monthly,in advance,on the first day of each month including rent for i
any partial month prorated at 1/30th of the monthly rent per day.
3.2 Rent to be paid in U.S. dollars by cash, or check, or,cashier's check,at Landlord's address:
3.3 Rent to be tendered by mail or personal delivery.
3.4 Tenant to pay a late charge of$ 100.00 in the event rent is not received within five days of the due date.
3.10 Tenant to pay$50.00 for each rent check returned for insufficient funds,and thereafter to.pay rent by cash
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or cashier's check.
4. OPERATING EXPENSES:
4.1 Tenant is responsible for payment of utility and service charges.
4.2 Tenant to pay all taxes levied on Tenant trade fixtures installed on the premises.
4.3 Should Landlord pay any charge owed by Tenant,Tenant shall pay;within ten days of written demand,the
charge as additional rent.
5. POSSESSION:
5.1 If Landlord is unable to deliver possession of the premises,Landlord will not be liable for any damage.
6. USE OF THE PREMISES:
6.1 The Tenant's use of the premises shall be for storage of equipment and rolling stock associated with tenants
organics recycling business. The Tenant shall not sublease any portion of the property. The Tenant may
maintain and/or service stored equipment onsite.
6.2 No other use of the premises is permitted.Tenant may not conduct any activity which increases Landlord's
insurance premiums. The Tenant shall not store or process any organic materials on the site.
6.3 Tenant will not use the premises for any unlawful purpose,violate any government ordinance or building
and tenant association rules or create any nuisance. Tenant shall maintain all required permits and
approvals from all responsible government agencies.
6.4 Tenant shall deliver up the premises together with all keys to the premises on expiration of the lease in as
good condition as when Tenant took possession, except for reasonable wear and tear.
6.5 Tenant shall be responsible for all costs associated with the relocation of the main entrance'gate to the AES
power plant facility. The relocation shall be performed to the satisfaction of AES and the City.
7. APPURTENANCES:
7.1 Tenant shall have the right to use Landlord's access of ingress and egress.
8. SIGNS AND ADVERTISING:
8.1 Tenant will not construct any sign or other advertising on the premises without the prior consent of
Landlord. '
9. TENANT IMPROVEMENTS/ALTERATIONS:
9.1 Tenant may not alter or improve the real estate without Landlord's prior consent. Tenant will keep the real
estate free of all claims for any improvements and will timely notify Landlord to permit posting of notices
for nonresponsibility.
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10. REPAIR AND MAINTENANCE:
10.1 The premises are in good condition.
10.2 Tenant shall maintain and repair the premises,which are Tenant's responsibility.
11. RIGHT TO ENTER:
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11.1 Tenant agrees to make the premises available on 24 hours' notice for entry by Landlord for
necessary repairs,alterations, or inspection of the premises.
12.WASTE:
12.1 Tenant will not destroy,damage, or remove any part of the premises or equipment,,or commit
waste,or permit any person to do so.
13. LIABILITY INSURANCE:
13.1 Tenant shall obtain and maintain commercial general liability insurance covering both personal
injury and property damage to cover Tenant's use of the premises insuring Tenant and Landlord.
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13.2 Tenant shall obtain insurance for this purpose in the minimum amount of$500,000.00.
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13.3 Tenant shall provide Landlord with a Certificate of Insurance naming the Landlord as an
additional insured.The Certificate shall provide for written notice to Landlord should�a change or
cancellation of the policy occur.
13.4 Each party waives all insurance subrogation rights it may have. !
14. HOLD HARMLESS:
14.1 Tenant shall hold Landlord harmless for all claims,damages or liability arising out of the
premises caused by Tenant or its employees or patrons.
15. DESTRUCTION:
15.1 In the event the premises are totally or partially destroyed,Tenant agrees to repair the
premises if the destruction is caused by Tenant or covered by its insurance.
15.2 The lease shall not be terminated due to any destruction. '
15.3 Landlord shall repair the premises if the cause is not covered by insurance or is covered by
Landlord's policy only.
16. SUBORDINATION:
17.1 Tenant agrees to subordinate to any new financing secured by the premises.
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17. TENANT ESTOPPEL CERTIFICATES:
17.1 Within 10 days after notice,Tenant will execute a certificate stating the existing terms of the
lease to be provided to prospective buyers or lenders.
17.2 Failure to deliver the certificate shall be conclusive evidence the information contained
in it is correct.
18. ASSIGNMENT, SUBLETTING AND ENCUMBRANCE:
18.1 Tenant may not assign this lease or sublet any part of the premises,or further encumber the
leasehold.
19. SURRENDER:
19.1 Tenant may surrender this lease only by a written cancellation and waiver agreement'with
Landlord.
20.WAIVER:
20.1 Waiver of a breach of any provision in this lease shall not constitute a waiver of any subsequent
breach.Landlord's receipt of rent with knowledge of Tenant's breach does not waive Landlord's
right to enforce the breach.
21. DEFAULT REMEDIES:
21.1 If Tenant breaches any provision of this lease,Landlord may exercise its rights, including_the
right to collect future rental losses after forfeiture of possession. _
22. BROKERAGE FEES:
22.1 Landlord,Tenant have represented themselves and there are no brokerage fees.
23. MISCELLANEOUS:
23.1 Items left blank or unchecked are not applicable.
23.2 See attached addendum for additional terms.
23.3 If an action is instituted to enforce this agreement,the prevailing party shall receive reasonable
attorneys fees.
23.4 This lease shall be binding on all heirs, assigns and successors except as provided in section 19.
23.5 This lease shall be enforced under California law.
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23.6 This lease reflects the entire agreement between the parties.
23.7 This lease is not secured by a trust deed.
I agree to let the premises on the terms stated above.
Date: April 13,2006
Landlord: City of Grand Terrace
Community Redevelopment Agency
Address: 22795 Barton Road
Grand Terrace,CA 92313-5295
Day Phone: (909)430- Fax(909)783-2600
Signature:
Thomas Schwab,Executive irector-Development Agency
I agree to occupy the premises on the terms stated above.
Date: �'� ,2006
Tenant: CST Organics Recycling,Inc.
Address: 36364 Poplar Drive
Yucaipa,CA 92399
Day Phone: (909)790-8529 Fax(909)790-8569
Signature: zf:z�
Chuck Smith,President
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