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2019/10/24 Pacific Mobile Structures, Inc. Mobile Unit Lease PD SiteLease Agreement Terms and Conditions 1. L€.se-This transaction B a l6ase and not a sale. Th€ l€rms ofth6loese are set forth in the Loa$ Agre8menl Addilionalterms afld d€tails 8re set forth in lhe sublect terms and conditions. Renler does nol ecquire lhrough this Lease or by psym€nl of renlal amounts, eny right, titl6 or int6r6sl rn l6as6d equipmenl Renlor acknowl6dgos that th€ leas€d 6qurpmenl E peGonal prop6rty ead shall nol, at any time, constitule r.sl prop.rly an rmprcvom€nt ihereon or a lixlure 2 acc6s/5ite conditio.s/utrlary Service - Rentsr shall prov'de free end clear access for dalrvary and retum of leased aquipment by standard mob 6l€n8po( vehrcles Rentershell provrd6 frrm and levelground on no more than six-inch slop€ from one end to the olher lor sal6 rnstallation of lne leased equipm8nt Sita selection is the 5016 rcsponsibility of Renter and PMSlshallhave no liebility for delermrning the adequacy ofany slG FudnermoE, PMSI sol€ly r€serves th€ .ighl, for any r6ason, lo r€fuso to 1616e36 doliv€ry lo .6y site it d€ems inadequate for u3e or installation Renter shall be rEsponsibl€ for obiaining any pormits rBquir€d to installand op6l3t6 the equipfient Renter shell prov'de at RenEis expense adequate eiectdcal polxer, wabrand otherutilily sarvic6s wilh prcper conneclion to lees6d equipmenl l. Othe, tees, arpenres and rax6 - ln addition to the rental paym€nB provded for herein. R€nler shall pay all expenses, fee3, charges and fuel surcheEe3 Incuned rn connecton wdn lhe leased equipmenl dunng [s dalivery us€ and rEcovery Additional charcesinclude. blrt are nol limited to, tho following instances (1) wheG ueveloermits and/oroilots ar€ !9s.cr9!.19r!.cl!sq {2) @ gllE (3) where tie downs are r€ouired - rfihe te down ootron rs not leken Renterassumes llAblivi (4) where altemata sl6o3 er6 needed (lemoorary steo furnished but steos mav not m€€t al loc€l codes). ln addltion. r6tu m costs are to be al lho orevailino rate al termination of lease thus they a.e subiect to chanoe deoendino on special circumstanc€s such as - tu6l costs and deliverv IoUt63 Sal€3 lex is nol included in the rctum lrcloht deoosil and , lt/rll b€ billed on the linal anvolc€ Renbr also agrees lo pay eny lines 3e,vicing cosG sales leres, use taxes, personalor real pmp€rty iax€s and olher us€ tax€s, and allassessments and othar governmenlal charges whatsoet/er payable on RenE/3 use, possession, rsnlal, 3hrpmeot, transporlation delivery or operation $ereof An early termination fee may b€ asses$d if lease is cancelled prior to lhe tem end dete 4. oeliveryby PMsl/ Location and Return ofteBsed Equipment- PMSI shall nol be liable to Rent€rlorany failurc ord€lay rn d€livering the leased €quipment By takng delivery th€raof Renter acknowledges liatthe leased equrpment is in good working condition, f.e€ of any physica defect or damag€, and i3 lit for lhe pumose lor which il is l€ased Fu rh€r, tha leesed equipment shall rcmein etthe delivery site untilth€ tamrnation oflhis lease, atwhich trma PMSI shall pick up lhe le$ed equipment The leased equrpment shall floi be mov€d wilhout PMSI s prtor writt€n consenl Tt ,o weeks' notrce ir equired pnor b equ ipment 5 LawfulUee, Asesnme.t..nd sublettans - Renter shall us€ or pemit lhe use ol the laas€d aqurpment only for law'ul purposes and operal€ rn comph.nce with all laws ll lhe leased equrpment rs used by any parly in essociation wrth unlewful eclivity prior !o rt being returned to PMSI, Renter agr€es lo rBimburse PMSI upon d6m8nd for any and all rncidental costs PMSI incurs. including. but not limiled to. nme and costGxpenses associaled wilh perlicipating in govemmental edm nislralive or law enforcsmenl processes, attomey fo6s and r6m€d ial costs Renter shell not assign, lransfer su blet or in eoy way assign ils rights h€r€und€r, and shal not pledge, pemitlo be liened mortgage, orolieMrse encumber its rights or inGresls hereunder All lhird-party claims ol possession, ntarcsl or owneEhrp ouEidethose ol PMSIs orthe Renler, as stated herern, shsll b€ d36rned invalid 6.ln$.ance- Renter, at ils erp€ns€, willobtain and keep in force Property dsmage lnstjrance-special iorm. replacemcnt cost coverage, with PMSledded as ios3 payee, ATIMA Renlerwillalso 'ndemnify PMSlwilh respect to allhability rn accordanc€ wilh the p.ovision of Paragraph 9 end protde genelEl liabilriy prolectlon rn the amounl of l1 000 000 each occurrEnc€ hslinE PMSI as additional insued ll Renter shall fail to prcduce the required propedy insurence coverage ce.tificate wilhin ten (10) days frcm lhe commencementof the Lea3e, they are auiomalicslly opted rnto lhe Pmpedy Damage Werver Program referenced in Seclion 7 until proof is presented 7. Prope.ty oama8ewaive. ProEram Option RenE/s padicipation in the Pmperty Damage Waiver prcgram rcll€v€s lne r€quirEmentlhal Renter provrde PMSlwilh a prclerty damage insumnce cerl icate, as required in the pltc€dlng lnsurance paragraph - Holxever. qeneral liabilily in3u€nce stil needs io be submined per llle ptqrlaraq|lali s damage slstarnsd, lh6 n6mca end addresses of 96rsons involvad, persons inlured and wita€sses, and any olh€r informalion relaling to said 6v€nl End it shall prompty loMard to PIvlSl all corr36pond6nc€, notices or documanB rec€iv€d in connectio. with eny claim ordemand rclatng to the l€as€d equipm6ntor lt3 operation, and sisll ed rn lhe investigalron and dolense ol all such claims snd d6mands Nothing h€Gin shail be deemed to modry lh6 provEions ot$e palagr8ph her.m in which Renler holds PMSI harmless 6nd nd.mnfies PMSI against all lh63€ matl6r3. and PMSI shall hava no rcsponsbility lo talG eny eclion whatsoewr rn lhe rv€nt of such casualty 9 Non'Liability ol PMS| a nd r.dem n ification - Both parti€s shall b6 liebl6 to the enont of 6ach party's neglEence tor any loss, damage, orexpensg ol any kind or natuG caus€d di€ctly orlndi€ctly by the laassd €quipm€nt or by th6 us6, mainl6nenc6, operalion h6ndling orstorsg€ th3l6of orforth6loss of RenE/3 busin*3 or damag€s whatso€vgr or howsoever caused Rsntordoss h€reby indemflify PMSlend holds PMSI itsagenls and employees harmless from any and €ll losses, damag$ claims, demands, or liebility ol any kind whatso€ver, including l€gal€xp6ns6s .nd ettorney's lees arising from th€ use, condton ol.op6rellon of the leased equipment ..suhng from R€ntels sole negligence PMSldo€s hsrEby rndemnify Renterend hol& Renler. its officials aganls, and employees, harfile$ llom any and all loss€s, damages, clams, demand3, orllab ily ofany kind whalsoever, rncludmg legalErpenses and etbmey's ftes anlrng lrom the condition oftho loa3od equrpment. resulling lrom PMSI's sol6 negligonc€. 10. M.intenance, DamaSeand Desiruction- Renter shsll al R€nteis own expense at ellnmes keep the equipmenl in good and effcientworting oder, condition and repair and shall malntain lhereon such idenl,ficrtion of ownershrp ss PMSI may requrre. PMSI will marntarn and make eny repaiB rcquiled from normal use to lhe roof, doors, windows lightfixtures, healing, v6nlilaling and airconditioning syltems except lhat Rent€r shall rBplace h€ating. ventilaling and at condilioning fillErs and burnl out lamps as requir€d and pay br eny damage caused by th. R.nter. R€nter shall besr lh6 flsk of damage, theft ordeslruction ollhe leased equrpmenl frcm every cause, 6xc3pt as outined in parag€ph 7. s€iected. and shall mak€ all lBplac€ments. repa,rs or substilution ot parts of oquipment theEon at rB etpens€ all ol which shall conslitut€ Ranteis obhgatory maintenence of the leased oquipm8nt. lf Renlerdo€s not adequaiely marntain the aquipmenl oradequately rep8ir.ny damage iorwhrch Renter is esponsible PMSI shall have lhe option lo padoin the maintenance or rBparr at RenG/s expense Renter shallal its o(pens6 provi& edequate janitoial servrce to keep the less6d €quipment in good condition feirweerand tear excepted On lormination of lhis 1663e, the leased equipmenl shsll b€ r€lum6d lo PMSI in the same condition as when d6liv6r€d fairwear6nd lear €xc€ptsd. 11. hspection by PMsl- PMSI may inspecl the leased squipm€nl at any reasonable time and may posl any notic€ of non-responsibilrty or inter€lt prol€cting nolice 12. oefaolt - Renter defaull3 on th13 Agreement if Renterfails to maka timely payment ofany rcnt nstallment or other amounl due and payabl.: or. comply with the other lerms. covenanls, or condtons herein Oefault also occurc if Renter or ils credilors iiles lor relpf under any bankruplcy or similar debtor reli8f law, or if Renterassigns forlhe benefit of ceditors, or il a rac€iv€r is appoinlad lo take possassion of any assats of Renter. !Eg!-!gEgl!, PMSI may at its option immcdialaly termrnate Renteis rightto possession oftha lGasod equipment by giving wd(sn notc€ to Renter TI|S rioht is not limited in inslancas where the unI is b€rno usad e3 commercial offic€ 3oace orfor anv olhercommorcial oumoses Rents. Bora€s thal th6 8sence ofthis Aor€€ment is thal PMSlis leesrno eouioment Renter's usc ofsuch eouiom€nt as commercraloffice spac€ or oth6rcommercial use is incidenlal The leased eouioment shall remain o€rsonal omo€rtv reoardless d ils use or menner ol attachmenl to reallY dCllllllgjedgt Renter agro€s that lhe leased equipmsni 3hall b6 sunendered lo PMSI and PMSI may leke possesson the.eof by entenng upon Rente/s premrses wlhoul furlher notice ot repGsession !D9!-Ep9!SCg9i9[ PMSI shall relain all rents.nd any otieramounts pard by Renterhereunder R6possossion by PMSlor lhe sunenderoflhe lea3ed equipmenl to PMSI shsll not aflect the rght of PMSI lo recover from Renterany and alldamages which PMSlshallhave suslained by reason of Renteis breach PMSI €serves lhe right to {a) lclel ti€ leased equipmenl and apply any net proceeds as an offsel to any unparformed R8ntorterm, or (b) sellthe leased equipment and apply lhe net proceeds as spprcpnate und€rthe orcumstances to Rente/s unpedomed finanoal obligalions or (c)canceland termi.ale lhe lease ln addrlaon to any olher.emedies provld8d forh€rein, PMSI lhay recover from Renler the worth st the ltme of lhe te.mrnallon of lhe lease $e unperformed value of the lease 13 Rent€r's Possestion on Termi..tion - lf Rente. reiains possossion of the leased properly beyond the term expiration datewithout proper writtan renewal notic€, PMSIshall have lhe option of(i) repo$essing its properly al Eny timewilhout nolice or (ii) deeming this Agr€ement renewed as a monih to month tenancy 14 Altor.ey'r Feer, Collection Fee., Coi$, htcrett- lf Rent€rdetsults on this Aoleemenl. PMSI shall be entited lo recover from Renl€r ell [6ms of damages. costs and exp€ns$, rnclsding coun cGts and reasonabla attorney's fees, incun€d by PMSI to eflforc€ lt3 nghB end.€medies he.eunder PMS|shallalso be entited ro ntarest on delinquenl paymants at the maximum rdte pormrtEd by law Srmilarly. if PMSIdelaults on lhis Agreement, Rentarshallb6 6nli[ed to recover trom PMSiallitems ol dameges, costs and expens*, including court cosls and rcasonable attomey's lo8s. ,ncunod by Rencrto onforce iB righls tnd remedies 15. Mircellaneout - This Less€ shall bo construed and intarpreled under the laws of the 3l,ale ofCalifornia All3igned copies shallconstillts duplicate originals 1 6 Notices - All notices requirad und6r the terms and prousaons of lhis Lease shall an rnsurance comDany The warver rs s This is an agreement between Pacific Mobile structures, lnc. (PMSI) and Renter forthe unit hsted and solelv lm ts the cu3lomer's oroo€dv liabilitv in reoard b fne. $eft vandalism and malicious mischief The lollow'no nmrtalions also aoolv The Renier rs resoonsibla lor a 52.000 oropertv damaoe deductib e. oer u nivpe r loss occurrence. The wa ive. fee only covers the un I rtself and Renter is responsible for insuring th6 contonts. The warv€r do6s nol aoolv if lhe orooertv dsmaos is caused bv anv of lhe lollowinor acts of God (eanhquake seismic activity high w nds hu.ricane, tomado, flood). acts oflerrorism. building contents, damages caused by Renleror ils employees. colllsion damaoe fmm vehicles and other equrpment, collislon damage while being transpoded or moved. abuse or neglect b! Renter The responsibilit for poperty damage due to the3e perib is on the Renter gg!ee!lg!g!. Efrer pady can cancel the waivers wilh 1 0 days pror wr len noijce ll the walvars arc canceled. the customer must pr.vide insu6nce The wa.ver fees must be pad rn ordar for this opton to be valid ll the cuslomerfarls lo pay lheir rent orthewaiverfces lhewavers aretermrnslad automalcally. Claimsr Must be reported by fax or email withrn 48 hours of lheir occunence lorthe Property damage weiver to be vsld. a A..idents or Claims Renter sha ll wthrn 24 hours aft6r any property damage orcasualty sv€nt involving the leased equipmsnt flotify PMSI by telephon€ end within 48 hours notfy PMS|in writing Said report shallstate the time, place. and nature ofthe event,lhe be n writing and shall become effective three (3) days foilowng mailrng I mailed by uS cenfred marl, or upon receipl if given in any other manner, addressed to PaciIE MoDrte Slructures ar PO 8ox 1404 Chehalis WA 9E532 and to Lessee ser fodh on lhe tace page hsr€ot. or al such other address as either party my des,gnal€ in walrng The payment remitlance addlEss is to Pacfic Mobire Sttucl!les at PO Box 24747. Seanto WA 98124 PACIFiCgntmilnG{r CUSTOM LEASE PAYMENT TERMS Per the enclosed lease agreement, the payment terms for custom leased space are as follows: Down Payment: First and Last month's rent required to begin construction at the factory. Delivery/Installation: Due upon completion. Rental Payments: Due monthly in advance. Early termination: There is no early termination on custom leases. Note If Pacific Mobile is unable to deliver the building due to site delays, a storage fee will begin 30 days after completion at the factory or the pr€determined delivery date, whichever is later. The storage fee will be at the rate of 10 cents per square foot of the overall building floor size, If the building as unable to be delivered after four months, the contracted r€ntal rate will begin at that time. ARMANDO G. VILLA CITY MANAGER Signed l-itle Company Na CtTY MENIFEE /e )'t AS re . Melch Lr C/et't-Ci ty Attorney 800.225.6539 pacrllcmobile.corn A^^l -a-1 PACIFiC Exceotions /Clarifications: Standard wages included, prevailing wages optional if required. Performance & payment bonds not included. Obtaining required County/City building permits, fees, and inspections not included. Customer site must be dry, compacted, level, and accessible by normal truck delivery. All costs to skate manually, crane, or forklift the building into position would be an additional cost. Delivery does not include any special delivery permits, pilot cars, police escorts, or flagman. Any special site required escorts, safety meetings, or other site related down{ime would be an additional cost. Extra trip charges may incur if customer decides to stop work on site. Modular building does not include any fire rating, alarm, deteclor, or sprinkler system. Site improvements not included (fence, landscape, sidewalk, parking, lighting, etc.). Sile survey or soils testing not included. Preparation of modular building pad not included (Minimum of 1,500 PSF required, and +^ 6" grade difference assumed). Any special site testing requirements would be an additional cost. All utility connections to modular building are not included. (Electrical, water, sewer, etc.). All horizontal sewer lines under modular building floor not included. All low voltage wiring, devises, panels, and moniloring not included. Site security, temporary toilets, or garbage dumpsters not included. ADA Ramp - Not Provided Refer to attached floor plan & elevations for further clarification. 100% fresh air hood has been provided at the HVAC as required by Code. As a result PMSI is not responsible for insufficient heating or cooling during extreme temperatures because of the 100% fresh air intake requirements. No lockers or benches provided. All workout equipment by others, not PMSI Mirror in workout room by others, not PMSI (50) Gallon Electric water heater has been provided. Layout may need to be revised to make room for the water heater. Quote good for 3o-days Customer Auahorized Represenbtive lnitals MOBILE STRUCTURES Aal Page 2 of 3 - Purchase Agreement