FIRSTAMENDMENTTOLEASE
(SpectrumGroupInternational/Stack'sBowersGalleries)
THIS FIRST AMENDMENT TOLEASE ("Amendment")ismade and entered into effectiveasofthe4thdayofJanuary,2021byand betweenC.J.SEGERSTROM&SONS, a California general partnership("Landlord"),andSPECTRUMGROUPINTERNATIONAL, INC., a Delaware corporation ("Tenant"), with respect to thefollowing:
RECITALS
A.
Landlord isthelandlord and Tenant isthe tenant pursuant tothatcertain Hi-Tech/Research and DevelopmentLease dated July 13,2020 (the"Lease") pursuant to which Tenant currently holds and occupies Suite I50(the"Premises") within thatcertain building located at1550ScenicAvenueintheHarborGateway Business Center,CostaMesa,California.
B.
PriortoTenanttakingoccupancy ofthePremises, (i)Landlord completed allof Landlord's Work except for Landlord'sWork in that portion of the Premises consisting of approximately4,000square feet and commonly referred to as the"Video Studio" room (the "Video Studio") and (ii) the entireTenant ImprovementAllowance wasfully expended for Landlord's Work. AtTenant's request, Landlord did not undertake Landlord's Work in the Video Studio.
C.
TenantandLandlord havenowconcurred onaredesign fortheVideoStudio and desire to amend and clarify the terms of the Lease regarding Landlord's Work.
AGREEMENT
INCONSIDERATIONoftheforegoing recitalsandthemutual covenants contained herein, Landlord and Tenant agree asfollows:
1.
Landlord's Work to Date.Tenant acknowledges and agrees that (a) all of Landlord's Work except for Landlord'sWork inthe Video Studio has been completed and accepted by Tenant, with theexception ofsome itemsontheCosmetic PunchList which arestill beingaddressed, (b)thefullTenant ImprovementAllowanceavailable toTenant undertheLease has beenfully expendedinaccordance withtheterms of theLease,(c)Tenant isand hasbeen in occupation ofthe Premises since on or before December 1, 2020, (d) the failure of Landlordto undertakeLandlord'sWorkin the Video Room was at therequestof Tenant andshallin no eventbeconsidered adefault or breach by Landlordunder the Lease, and (e)all rent due LandlordundertheLease based on Rentable Area ofthePremises shall bepaidasand whendue under the Lease, as hereby amended, and calculatedat all timesusing thefull Rentable Area of the Premises (i.e. including theVideo Room), notwithstandingthat the Video Room will not be available for Tenant's useduring construction of Landlord's Phase Two Work (defined below).
2.
Commencement DateConfirmed.Notwithstandinganything tothecontrary intheLease,theCommencementDate oftheLease and thecommencement oftheinitial termof the Lease, for all purposes, is December 1,2020.
Amend1stSpectrumGroupv4
3.
Landlord's Phase Two Work.Landlord's Work in the Video Studio ("Landlord'sPhaseTwoWork")shallbeundertaken andcompleted inaccordance withthe terms of the Lease governing Landlord's Work, subject to thefollowing:
(a)
TheTenant ImprovementAllowance for Landlord's Phase Two Work shall bezero dollars ($0) and thecostsof Landlord's Phase Two Work will becharged entirely against Tenant's Contribution. For avoidance ofconfusion, for Landlord's Phase Two Work,"Landlord's Work DisbursementAmount" issynonymous with"Tenant's Contribution."
(b)
Thefirst sentenceofsubsection 48.1l(b)oftheLeaseshallapply to Landlord's Phase Two Work. The remainder ofsaid subsection, thefirst sentence of subsection48.11(g),and theentirety of subsections 48.11(c),(d), (e)and G)shall have no application to Landlord'sPhase Two Work.
(c)
Tenant andLandlord both approve theconstruction drawings and specificationsfor Landlord's Phase Two Work preparedby theDesigner dated December 20, 2020(the"ApprovedDrawings"). ForLandlord's PhaseTwoWork,any references intheLease to"ApprovedPlans"shall mean theApproved Drawings. Tenant hasalready compensated Designer inconnection with preparation oftheApproved Plans;movingforwardLandlordshall takeover thecompensation of Designer and any engineer orother third party engaged in connection with the Approved Drawings andchanges thereto. Discretionarychanges tothe Approved Drawings thatare requestedby Tenant and will foreseeably result indelaystothe completion of Landlord's Phase Two Work aresubject to Landlord's prior approval, which approval may be withheld in Landlord's solediscretion ifthechanges (together with all prior discretionarychanges byTenant)willforeseeably resultinacumulative delay tothecompletion of Landlord's Phase Two Work by morethan sixty (60) days.
(d)
Tenant acknowledges that Landlord submitted the Approved Drawings tofour contractors for competitive bidding and approves Casco Contractors asthe Contractor for Landlord's Phase Two Work. Contractor's bid (totaling $687,970.80) plus estimates forpermitfees,changeorders anddrawing costsbringsthetotal Budget forLandlord's PhaseTwoWork to$721,745, andTenant agrees thatsaid Budget may increase (ordecrease) to theextent estimates included intheBudget vary from actual costs and expenses. Following commencement of Landlord's PhaseTwo Work, thepartiesshall meet weekly toreview project progress and any issues that may arise. Subject to the timely receipt of allof theTenant's Contributions (defined below), Landlord shall pay all costs of Landlord's PhaseTwo Work.
(e)
Tenant acknowledges thatLandlord hasentered intoaconstruction contract withtheContractor forconstruction of Landlord's PhaseTwo Work inaccordancewith theApproved Drawingsand theBudget(the"Construction Contract"). Landlord shallcausesuch work to bediligentlyperformed and to becompleted assoon as practicable, time beingofthe essence. Tenant shall receive copiesofthemonthly invoices delivered to Landlord under the Construction Contract, as well asthe invoices or receipts for all other costs of Landlord's Phase Two Work,and shall deposit with Landlord, as additional rent due under theLease, thefull amount ofeach such invoice or receipt within five(5) business daysafter receipt thereof ("Tenant's Contribution"). In theevent that Tenant fails to timely deposit any Tenant's Contribution with Landlord, Landlord shall have the right to elect in Landlord's sole discretion
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tohaltall orany portion ofthework under theConstruction Contract. All decisions thereafter relatingtorecommencing Landlord's PhaseTwoWorkshallalso bemadebyLandlordinitssole discretion. Tenant shall beresponsible forall damages,costsandexpenses incurred byLandlord asa result ofsuchactions by Landlord, including without limitationanyamountLandlord reasonably electsto pay Contractor tosettleany default by Landlord under theConstruction Contract arisingfrom halting orrecommencing thework.Allsuch amounts shall bepaid to Landlord by Tenant within five(5) business days ofreceipt ofLandlord's invoice therefor, as additional rent duehereunder. Failureof Landlord tocomplete Landlord's PhaseTwo Work as soon aspracticable, or atall,asa result of Landlord's decisions permittedunder thissubsection
(e)shall not beadefault byLandlord under theLease and Landlord shall haveno liability to Tenantwhatsoeverarisingtherefrom.Theforegoing shallnotlimitordiminish Landlord'sother remedies for failure ofTenant to timely deposit any Tenant's Contribution.
(f)
The provisionsinArticle 11 oftheLease relatingto thePremises, includingwithout limitation punchlistsforthePremises,shallapplyequally totheVideoRoom.
4.
ConflictsinLeaseProvisions.Those provisionsoftheLeasewhichare superseded by the provisions ofthis Amendment shall havenofurther application tothe Premises.Intheeventof any conflict between thetermsoftheLease and theterms of this Amendment,the terms of this Amendment shall control.
5.
Agency Disclosure.EachofLandlord and Tenant acknowledges that, in connectionwiththisAmendment, ithasreceived fromeachAgent/Associated Licensee listedin ExhibitAthedisclosuresrequiredbySections2079.16and2079.17oftheCalifornia CivilCode (the"Code").Specifically,each ofLandlord and Tenant acknowledges, by itssignature hereto,
(a)receipt of Civil CodeSections2079.13 through 2079.24, (b)receipt of written notice ofthe agencycapacityofeachAgent/AssociatedLicenseeand(c)thateachAgent/AssociatedLicensee listed inExhibitAistheagentsolelyoftheLandlord and isNOTtheagentoftheTenant.Such disclosure is attached as Exhibit A.
6.
Counterparts.This Amendmentmay beexecuted in two(2)or more counterparts,eachofwhichshallbedeemed anoriginal,butallofwhichtogethershallconstitute asingleinstrument.Acounterpart ofthisAmendment executed bya party anddeliveredby email transmissionorfacsimile transmissionshall beaseffective and binding upon the delivering party asanexecuted counterpart delivered in any other manner.
7.
DefinedTerms.Allcapitalized termsusedhereinand notdefinedherein shall have the meanings given to such terms inthe Lease.
8.
LeaseinEffect.TheLease,asherebyamended, remainsinfullforceand effect in accordance with its terms.
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IN WITNESSWHEREOF, Landlordand Tenant have executed this First Amendment to Lease to be effectiveas providedin the openingsentence above.
/s/
ExhibitA-Agency Disclosure
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ExhibitA
Amendl"SpectrumGroup_vl
DISCLOSUREREGARDING
REALESTATEAGENCYRELATIONSHIP
(As requiredbySections2079.16and2079.17oftheCivil Code)
Whenyouenterinto adiscussion witharealestateagent regardingarealestatetransaction, youshouldfromthe outsetunderstand what typeof agency relationship or representation youwishto havewiththeagent in thetransaction.
SELLER'SAGENT
ASeller'sagentunderalistingagreementwiththeSelleractsastheagentfor theSelleronly.ASeller'sagentor asubagentof thatagent has thefollowing affirmative obligations:
Afiduciary dutyofutmost care,integrity,honesty, andloyalty in dealings withtheSeller. To theBuyer and the Seller:
(a)
Diligentexerciseofreasonableskillandcareinperformanceoftheagent'sduties.
(b)
Adutyofhonestandfairdealingandgoodfaith.
(c)
A dutyto disclose allfactsknownto the agent materially affectingthe value or desirabilityofthe property thatarenot knownto,or within the diligent attention and observation of, the parties.
Anagentisnotobligatedto revealtoeither partyanyconfidentialinformationobtainedfromtheotherpartythatdoesnotinvolvethe affirmative duties set forthabove.
BUYER'S AGENT
Asellingagentcan,withaBuyer'sconsent,agreetoactasagentfortheBuyeronly.Inthesesituations,the agentisnot theSeller's agent, evenif by agreementthe agentmay receivecompensationfor services rendered, either in fullorinpartfromtheSeller.An agent acting onlyfora Buyer has thefollowing affirmative obligations:
TotheBuyer:
Afiduciary duty of utmost care,integrity,honesty,andloyalty Indealings withtheBuyer. To the Buyer andthe Seller:
(a)
Diligentexerciseofreasonableskillandcareinperformanceoftheagent'sduties.
(b)
Adutyofhonestandfairdealingandgoodfaith.
(c)
Adutytodiscloseallfactsknowntotheagentmateriallyaffectingthevalueordesirabilityofthepropertythatarenotknownto,or withinthediligent attentionandobservation of, the parties.Anagentisnotobligatedto revealtoeitherparty anyconfidentialinformation obtainedfromtheotherpartythatdoesnotinvolvetheaffirmativedutiessetforthabove.
AGENTREPRESENTINGBOTHSELLERANDBUYER
Arealestateagent,either actingdirectly orthroughoneor moreassociate licensees,canlegallybethe agentofboththeSeller andthe Buyer in atransaction, butonlywith theknowledge andconsent of both theSeller andtheBuyer.
Inadualagencysituation,theagenthasthefollowingaffirmativeobligations toboththeSellerandtheBuyer:
(a)
Afiduciarydutyofutmostcare,integrity,honesty,andloyalty inthedealingswitheithertheSeller ortheBuyer.
(b)
Otherdutiestothe SellerandtheBuyerasstatedaboveintheirrespectivesections.
InrepresentingbothSeller andBuyer,theagentmaynot,withouttheexpresspermission ofthe respective party,disclosetotheother party that theSeller will acceptaprice less thanthe listingprice orthat theBuyer willpay a pricegreater than the priceoffered.
Theabovedutiesof theagentin arealestatetransaction donotrelieveaSelleror Buyer fromtheresponsibilitytoprotecthisor her own interests.Youshouldcarefullyreadall agreementsto assurethattheyadequately expressyourunderstanding of the transaction.Areal estateagentisapersonqualifiedto advise about realestate.If legalor taxadviceIsdesired,consult acompetent professional.
Throughout your realproperty transaction youmay receivemore thanonedisclosure form,depending uponthe numberofagentsassisting inthetransaction.Thelaw requires each agent with whomyouhavemorethan a casual relationship topresent youwiththisdisclosure form.Youshouldreadits contents each timeit ispresentedtoyou,considering therelationship between youandthe realestate agent In your specific transaction.
ThedisclosureformincludestheprovisionsofSections2079.13to2079.24,inclusive,of the CivilCodeandthe disclosurerequiredby Section 2079.17, allasset forthonthesucceedingpages.Readthemcarefully.
ExhibitA
CIVILCODESECTIONS 2079.13 TO 2079.15 AND
2079,17I02Q79,211
2079.13.AsusedinSections2079.14to2079.24,inclusive,thefollowingtermshavethefollowingmeanings:
(a)
"Agent" means a person actingunder provisions ofTitle 9(commencing withSection 2295) in a realproperty transaction, andincludesapersonwhoislicensed asarealestatebroker under Chapter3(commencing withSection 10130)ofPart1ofDivision4oftheBusinessandProfessionsCode,andunderwhoselicensealistingisexecutedoran offer to purchase is obtained.
(b)
"Associatelicensee" meansapersonwhoislicensedasarealestatebrokeror salespersonunderChapter3 (commencingwithSection10130)ofPart1ofDivision4oftheBusinessandProfessionsCodeandwhoiseitherlicensed under abroker or has enteredintoawritten contract witha broker to act asthebroker's agent in connection with acts requiringarealestatelicense andto function under thebroker'ssupervision in thecapacity of anassociate licensee.
Theagentin the realpropertytransactionbearsresponsibilityfor hisor herassociatelicensees whoperformasagentsof the agent.Whenanassociatelicenseeowesadutytoanyprincipal, or to anybuyer or sellerwho Isnotaprincipal, in a realproperty transaction, that duty isequivalent tothe duty owed tothat party by thebroker forwhom the associate licensee functions.
(c)
"Buyer"means a transferee inarealproperty transaction, andincludes aperson who executes an offer to purchase realpropertyfromaseller throughanagent,or whoseekstheservices ofanagentin morethanacasual, transitory, orpreliminarymanner,withthe object ofenteringinto arealproperty transaction."Buyer"includes vendee or lessee.
(d)
"Commercialrealproperty"meansallproperty in the state, exceptsingle-familyresidentialproperty,dwelling unitsmadesubjecttoChapter2(commencingwithSection1940)ofTitle5,mobilehomes,asdefinedinSection798.3,or recreational vehicles, as defined in Section 799.29.
(e)
"Dualagent" meansanagentacting,eitherdirectlythroughoranassociatelicensee, asagent forboththeseller and the buyer in a real property transaction.
(f)
"Listingagreement" meansacontract betweenanownerof realproperty andanagent,by whichtheagenthas been authorized to sell the realproperty or to findorobtain a buyer.
(g)
"Listingagent"meansapersonwhohasobtained alistingofrealpropertytoactasanagentforcompensation.
(h)
"Listingprice"istheamount expressedindollarsspecifiedin the listingforwhichthe selleriswillingto sellthereal property through the listing agent.
(i)
"Offeringprice"istheamountexpressedindollarsspecifiedinanoffertopurchaseforwhichthebuyeriswillingto
buytherealproperty.
(j)
"Offer topurchase'' meansawrittencontract executed byabuyeractingthroughasellingagentthatbecomes the contract for the saleof therealproperty uponacceptance bythe seller.
(k)
"Realproperty"meansanyestatespecifiedbysubdivision (1)or (2) of Section 761in propertythatconstitutes oris improved with onetofour dwellingunits, any commercial real property, any leasehold in these types ofproperty exceedingoneyear's duration, andmobilehomes,whenoffered forsaleorsoldthrough anagent pursuant tothe authoritycontained inSection10131.6of theBusiness andProfessions Code.
(I)
"Realproperty transaction" means atransactionfor the saleof realproperty inwhichanagentisemployed by one or more of the principals toactin that transaction, andincludes alistingor anoffer to purchase.
(m)
"Sell," "sale," or "sold" referstoa transaction for the transfer of realproperty fromthe seller tothebuyer,and includes exchangesof realpropertybetweenthe seller andbuyer,transactions forthe creationofarealpropertysales contract withinthemeaningof Section 2985,andtransactions forthe creation of aleasehold exceedingoneyear's duration.
(n)
"Seller''meansthetransferor inarealpropertytransaction, andincludes anowner who lists realproperty withan agent,whether or notatransfer results, orwhoreceives anoffer to purchase realpropertyof which heor sheisthe owner from anagent on behalf of another."Seller" includes both avendor and alessor.
A-
(o)
"Sellingagent"meansalistingagentwhoactsalone,oranagentwhoactsin cooperationwithalistingagent, and whosellsorfindsandobtainsabuyerfor the realproperty,oranagent wholocatesproperty for abuyer orwhofinds a buyer for a property for whichnolistingexists andpresents anoffer to purchase totheseller.
(p)
"Subagent"meansapersontowhomanagentdelegatesagencypowersasprovidedinArticle5(commencingwith Section2349)of Chapter1 of Title9.However, "subagent"doesnotincludeanassociatelicenseewhoIsactingunder the supervision of anagent in a real property transaction.
2079.14.Listingagents andsellingagentsshallprovidethesellerandbuyerin arealpropertytransactionwithacopyof the disclosureformspecifiedin Section2079.16,and,except asprovidedinsubdivision(c),shallobtainasigned acknowledgmentof receipt fromthatseller orbuyer, except asprovidedin thissection or Section 2079.15, as follows:
(a)
Thelistingagent,ifany,shall providethedisclosureformtothe sellerpriortoenteringintothelistingagreement.
(b)
Thesellingagentshallprovidethedisclosureformtothesellerassoonaspracticable priorto presentingthe seller withanoffertopurchase, unlessthesellingagent previously provided the seller witha copy of thedisclosure form pursuant to subdivision (a).
(c)
Where the sellingagent does notdealona face-to-facebasis withtheseller,thedisclosure form preparedby the sellingagentmay befurnished tothe seller (and acknowledgmentof receipt obtained for the sellingagent fromthe seller) bythelistingagent,orthesellingagentmaydeliverthedisclosure formbycertifiedmailaddressed totheseller at hisor herlastknown address, in which casenosignedacknowledgmentof receipt isrequired.
(d)
Thesellingagentshallprovidethedisclosureformtothebuyer assoonaspracticablepriortotheexecution ofthe buyer'soffertopurchase, except thatif theofferto purchaseisnotprepared bythe sellingagent,the sellingagent shall presentthe disclosure formto thebuyernot later thanthenext business dayafterthesellingagentreceivesthe offer to purchase from the buyer.
2079.15.In anycircumstancesinwhichthe sellerorbuyerrefusestosignanacknowledgmentofreceiptpursuantto Section 2079.14,theagent,or anassociatelicenseeactingfor anagent,shallsetforth,sign,anddate a written declaration of the facts of the refusal.
2079.17.(a)Assoonaspracticable,thesellingagentshalldisclosetothebuyerandthesellerwhetherthesellingagent isactinginthe realpropertytransaction exclusively asthebuyer's agent,exclusively astheseller'sagent,or asadual agent representing boththebuyer andtheseller.This relationship shallbeconfirmed in thecontracttopurchase and sellrealpropertyor inaseparate writingexecuted oracknowledgedbythe seller, thebuyer,andthesellingagent prior to orcoincident with execution of that contract by the buyer and the seller, respectively.
(b)
Assoonaspracticable,the listingagent shalldisclosetotheseller whether the listingagent isactingin the real propertytransaction exclusively as theseller's agent, or asa dualagent representingboththe buyer andseller.This relationship shallbe confirmed in the contract to purchase andsellrealproperty orin aseparate writingexecuted or acknowledged bythe sellerandthe listingagentpriorto orcoincidentwiththeexecution of thatcontract bythe seller.
(c)
Theconfirmationrequiredby subdivisions(a)and(b)shallbeinthefollowingform:
(d)
The disclosures andconfirmation requiredby this sectionshallbein addition to the disclosure required bySection 2079.14.
2079.18.No sellingagentin arealproperty transaction mayact asanagentforthe buyeronly,whenthesellingagentis also acting asthelistingagent in the transaction.
2079.19.Thepaymentof compensation or theobligationtopaycompensation toanagentbythe selleror buyerisnot necessarily determinative of aparticular agency relationship between anagent andthe seller or buyer.Alistingagent andasellingagent mayagreeto shareanycompensation orcommission paid,or anyrightto any compensation or
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A-
commissionforwhichanobligationarisesastheresultofarealestatetransaction, andthetermsofanysuchagreement shallnotnecessarily bedeterminative of aparticular relationship.
2079.20.Nothingin thisarticle prevents anagent fromselecting, asacondition of theagent's employment, aspecific formofagencyrelationship not specifically prohibitedbythisarticleif therequirements ofSection 2079.14andSection 2079.17 are complied with.
2079.21.Adualagentshallnotdisclosetothebuyerthattheselleriswillingto sellthepropertyat apricelessthanthe listingprice,withouttheexpresswrittenconsent ofthe seller.Adualagentshallnotdisclosetotheseller thatthebuyer is willing to pay a price greater than the offering price, without theexpress written consent of the buyer.
Thissectiondoesnotalterinanywaythedutyorresponsibilityof adualagenttoanyprincipalwithrespect to confidential information other than price.
2079.22.Nothingin thisarticleprecludes alistingagentfromalsobeingasellingagent,andthecombinationof these functions in one agent does not,of itself, make that a dual agent.
2079.23.(a)Acontract betweentheprincipalandagentmaybemodifiedoralteredto changetheagencyrelationship at anytimebeforethe performanceoftheact which istheobject oftheagency withthewritten consent of theparties to the agency relationship.
(b)Alender or anauctioncompany retainedbyalender to control aspects ofatransaction of realproperty subject to thispart,includingvalidating the sales price,shallnot require,as a condition of receivingthe lender's approval of the transaction, the homeowner or listingagent to defend or indemnify the lender or auction company from any liability allegedtoresultfromtheactionsof thelender or auction company.Anyclause, provision, covenant, or agreement purportingtoimposeanobligationtodefend or indemnifya lenderor anauction companyin violationofthissubdivision is against public policy, void, and unenforceable.
2079.24.Nothingin thisarticleshallbeconstruedto eitherdiminishthe dutyof disclosure owedbuyersandsellersby agentsandtheirassociatelicensees,subagents,andemployeesor torelieveagentsandtheirassociatelicensees, subagents, andemployees fromliability for their conduct in connection with acts governed bythisarticleor for any breach of a fiduciary duty or a duty of disclosure.
CIVILCODESECTION2079.17DISCLOS_l.LFU:
EachoftheListing/SellingAgent(s)identifiedbelowistheagentoftheseller/landlordexclusively.SuchAgentis NOTan agent of the buyer/tenant.
ListingAgent(s)/SellingAgent(s):
JeffReeseand
SouthCoastPlaza.acorporation
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