ILLUMINATION FOUNDATION & DYER 18, LLC

Home Browse Search

other person as any party shall designate in writing, such address may be changed by written notice given to the other party in accordance with this Paragraph. 66, ADA Upgrades. Except as otherwise expressly provided in this Lease, Lessor shall not be required to provide ADA upgrades to the Premises. 67. Intentionally Omitted. 68. Inspections. Notwithstanding anything to the contrary set forth in the Form Lease, upon reasonable notice to Lessee, Lessor shall have the right to inspect the Premises, or cause the Premises to be inspected by a third party chosen by Lessor, to verify that Premises are at all times being operated in full compliance with the terms of Paragraph 61 of this Addendum and as otherwise required by this Lease. In the event that any such inspection reveals any such non- compliance, the same shall be, at the option of Lessor, a Default and or Breach by Lessee under the Lease. As additional consideration for Lessor's entering into this Lease, Lessee shall reimburse and pay to Lessor, in addition to Base Rent and other Rent due hereunder, the cost of any such inspection, up to $500 per inspection but no more than once each calendar month, to help offset the cost of such inspections, such amounts to be paid by Lessee to Lessor within 5 days after Lessee's receipt from Lessor of a copy of the applicable inspection report and invoice therefor, and all such amounts being deemed Rent under this Lease. 69. Option to Purchase. Lessor hereby grants to Lessee an option (the "Purchase Option") during the Purchase Option Period (as defined herein below) to purchase the Premises upon the following terms: 69.1. Purchase Price. The Purchase Price for the Premises shall be equal to the sum of $9,200,000 (the "Initial Price") plus the Increase Amount (as defined below) (said Initial Price plus the Increase Amount, if any, being the "Purchase Price"), payable in cash at Closing (as defined below); provided, however, that the Initial Price is based in part upon Lessor's original purchase price of the Premises and in the event that Lessor receives any monies back in respect thereof from its Seller as set forth in this original purchase agreement, the Initial Price shall be reduced by said amount so received. The "Increase Amount" shall be the amount equal to 50% of the increase in the Consumer Price Index for all Urban Consumers for the Los Angeles -Anaheim -Riverside area, all items published by the United States Department of Labor, Bureau of Labor Statistics (1982- 84=100) ("Index") from May 2020 ("Base Index") to the date of the Notice of Exercise (as defined below); such increase to be calculated by taking the Initial Price and multiplying it by a fraction, the numerator being the Base Index, and the denominator being the Index published for the month in which the Notice of Exercise is delivered. If the Index is changed so the Index differs from that used as of the date hereof, the Index shall be converted under the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the Lease Term, such other governmental Index or computation with which it is replaced shall be used to obtain substantially the same results as would be obtained if the Index had not been discontinued or revised. Notwithstanding the foregoing, the Increase Amount shall not increase the Initial Price by an amount equal to more than 1.5% per year (non -compounding). During the Early Purchase Option Period, the Purchase Price shall also include any costs incurred by the Lessor in purchasing the Property, up to one hundred and fifty thousand dollars ($150,000.00). 69.2. Terns of Purchase Option. The term of the Purchase Option shall commence upon the I" 12311947. 1/48581-00004