54 Old Orchard Rd, Los Gatos, CA 95033

RENT-TO-OWN This property is offered with an option to buy in the future. Preliminary terms of the offer are included below. THE PROPERTY Gated Luxury Estate in the Santa Cruz Mountains. 4421 sq ft, 2.06 acres, 4 bedrooms all en-suite, 4 full ba, 2 half ba, gourmet kitchen, sauna. Living is indoor-outdoor. The home has enormous stone decks on 3 sides, looking at spectacular SW views from about 1900 ft. House is dual on/off grid, with 37 solar panels, 6 batteries, 2 HVAC units, and 3 parallel ISP connections (fixed, satellite and microwave). Home is 3 minutes from a fantastic gourmet market, 6 minutes to Los Gatos K-8 public schools, and 15 minutes to Los Gatos High School and downtown Los Gatos. There are 7 high end wineries, regular events, tastings, lectures and fabulous meals between 2 and 10 minutes away. Silicon Valley and the Capitola beaches are located about 20 minutes away. OPTION TO BUY At the time of this listing borrowing terms have become less favorable and there is a degree of economic uncertainty in the area. We've created this offer to enable prospective buyers to enjoy the home at very reasonable cost, and maintain the choice of buying as financial uncertainty subsides over time. The following is a good faith description of the financial aspects of the offer, but is not a contract. TERM The initial lease term shall be for one (1) year term. RENEWAL OPTION Tenant shall have the option to renew this lease for two (2) additional one-year terms, provided: a) All rent payments have been made timely during the preceding term b) Property is maintained in good condition as determined by annual inspection c) Rent for renewal terms shall increase by 1% per year RENT Tenant agrees to pay monthly rent of $9,800 due on the first day of each month. SECURITY DEPOSIT If Property is rented unfurnished, the security deposit equals to two months' rent. If Property is rented furnished, the security deposit equals three months' rent. OPTION CONSIDERATION AND PURCHASE RIGHTS Tenant shall pay a non-refundable option consideration of $7,500 upon execution of this Agreement, which grants Tenant the exclusive right to purchase the Property during the lease terms. PURCHASE PRICE SCHERDULE Year 1: $1,900,000.00 Year 2: $1,919,000.00 Year 3: $1,938,190.00 RENT CREDITS FOR PURCHASE Tenant shall receive a credit of $1,000 toward the purchase price for each month of rent paid timely during the lease term. Rent credits are forfeited if Tenant defaults or fails to exercise the purchase option. OPTION EXERCISE Tenant may exercise the purchase option at any time during the lease terms by providing sixty (60) days written notice to Landlord and depositing earnest money equal to 3% of the applicable purchase price with a California-licensed title company. SELLER FINANCING If Tenant exercises the purchase option and obtains conventional financing of at least $1,500,000, seller agrees to finance the remaining balance under the following terms: a) Interest Rate: 4.00% per annum b) Payment Calculation: Based on 20-year amortization schedule c) Term: 10 years with balloon payment due at maturity d) Security: Deed of Trust on the Property e) No prepayment penalty Renter is responsible for LP gas (used for cooking and heating), and electricity (which is very low or non-existent when solar and battery power is used). Renter is also responsible for internet, security monitoring, and renter's insurance. Renter is also responsible for exterior upkeep. As this offer is rent-to-own (and conversion and timing are optional), permission to work on improvements, painting and similar are routinely given.