June 10, 2010 Tony *******

*********** St.
Oakland, CA 94607

Steve ********
***********
Pleasant Hill, CA

Dear Steve:

I have reviewed the document you gave me entitled “Re-Adjustment to Lease Terms”.
Unfortunately I cannot agree to the terms nor the facts stated in the document.

In the document you assert that an agreement was reached that “the rent was to revert to
the original amount of $6600.00". Although we were aware that this was your desire no such
agreement on our part was made. In fact I have attached a copy of a document written to you by
************ who spoke on our behalf in that conversation. In his letter he requested even
further reductions in the rent paid at *********** St.beyond the reduction to $5,500.

We have never received a response from that letter.

His request for further rent reduction was well founded. The current rent of $5,500 per
month is above market value for warehouses in far superior condition. At the current market
value the rent for *********** St. should be $4,950 if it were not in need of comprehensive and
integral repairs.

The reason for the discrepancy in the rent paid and the market value of the property is
due to the fact that the original lease-holder rented the property at a time of intense real estate
speculation and subsequent over valuation of properties.

Accordingly, we request that the rent be reduced to $4,950 or that you increase the square
footage by including the adjacent unit, *********** St.B Harrison into our rental agreement. We
offer this despite the condition of the building.

Alternately, if you wish to increase your income at the property we suggest that you sell
us the property at market value. We would be willing to pay owner financed mortgage payments
exceeding the rental value of the property.

Sincerely,

Tony **********