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HomeMy WebLinkAbout2002-176 (( ,- C\(x..'.:- ~~ <~--.' . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 RESOLUTION NO. 2002-176 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SPACE FOR THE CITY OF SAN BERNARDINO, CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON 5TH MULTICULTURAL CENTER. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor of the City of San Bernardino or her designee is hereby authorized and directed to execute on behalf of said City a Lease Agreement with TVG Enterprises, LLC for rental of space for the City of San Bernardino, Cultural & lntemational Affairs Office, Arts on 5th Multicultural Center, 468 West 5th Street in the City of San Bernardino, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set forth at length. 15 SECTION 2. The authorization to execute the above referenced agreement is 16 rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage 17 18 19 20 21 22 23 24 25 26 27 28 of this resolution. III III Iff III III III Ilf ! III III 2002-176 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SPACE FOR THE CITY OF SAN BERNARDINO, CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON 5TH MULTICULTURAL CENTER. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a it. ad i . reg. meeting thereof, held on the 25 th day of June , 2002, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA X LIEN x MCGINNIS X - DERRY ~ SUAREZ x ANDERSON X - MCCAMMACK x 2002. b ane The foregoing resolution is hereby ap~ved this . /c Ch--- u th Valles, Mayor Ci y of San Bemardino Approved as to Form and legal content: JAMES F. PENMAN, City Attorney ! ~} _l ."7 Ie (\~j - STANDARD MULTI-TENANT OFFICE LEASE.. GROSS AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION . 1 . Basic Provisions ("Basic Provisions"). 1.1 Parlles: This Lease ("Lease"), dated for reference purposes only May 31. 2002 and between T\1C Fut9rpr" i'~i. T T (" ,_,ismadeby ("Lessor") and Cit.y Qf Sau '94iI"AArdigQ, C"'tn:n~' ~ Tnt-.:u.no~"nno' AF-Fo.,....~ ("Le_"), (collectively the "Parties", or individually a "Party"). 1.2 (a) Premises: That certain portion of the Project (as delined below), known as Suir ~~~bers(s) 1 n ~ , 1st lloor(s), consisting of approximately d 888 rentable square feet and approximately , useable square feet ("Premises"). The Premises are locate 'at: 468 West 5th Steet , in the City of SaR SaI"llarg!Ro ,Countyof S:iR RfirR::ardh~Q ,Stateof ('p'-IFn....n-lo ,withzipcode Q?.l&nl . In addition to Lessee's rights to use and occupy the Premises as hereinafter specilied, Lessee shall have non-exclusive rights to the Common Areas (as delined in Paragraph 2.7 below) as hereinafter specified, but shall not have any rights to the roof, the exterior walls, the area above the dropped ceilings, or the utility raceways of the building containing the Premises ("Building") or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located. along with all other buildings and improvements thereon. are herein collectively referred to as the "Project." The Project consists of approximately 1.000 rentable square feet. (See also Paragraph 2) 1.2 (b) Parking: na unreserved and ~ reserved vehicle parking spaces at a monthly cost of $ ~ per unreserved space and $ ~ per reserved space. (See Paragraph 2.6) 1.3 Term: five (5) years and zero months("OriglnaITerm")commencing ("Commencement Date") and ending ] 1/30/06 (See also Paragraph 3) 1.4 Early Possession: f\lj If (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $ $1 000 per month ("Base Rent"), payable on the commencing J~Ju;~] , . (See also Paragraph 4) D If this box is ch ,m are provisions in this Lease for the Base R~ntto be adjust~ 1.6 Lessee's Share of Operating Expense Increase: tZ percent ()o'i! %) ("Lessee's Share"). Lessee's Share has been calculated by dividing the approximate rentable square footage of the Premises by the total approximate square footage of the rentable space contained in the Project and shall not be subject to revision except in connection with an actual change in the size of the Premises or a change in the space available for lease in the Project. 1.7 Base Rent and Other Monies Paid Upon Execution: (a) Base Rent: $ for the period (b) Security Deposit: $ ("Security Deposit"). (See also Paragraph 5) (c) Parking: $ for the period (d) Other: $ f).~{).l'O for no>.- r'f\<~-+-k, r -" I ~ ,'-f-~: '." i'( (e) Total Due Upon Execution of this Lease: $ tiff Agreed Use: Cultural Exhibit space and offices 12/01/01 ("Expiration Date"). ("Early Possession Date"). lC!t- day of each month 1.8 represents Lessor exclusively ("Lessor's Broker"); represents Lessee exclusively ("Lessee's Broker"); or represents both Lessor and Lessee ("Dual Agency"). (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of or _ % of the total Base Rent for the brokerage services rendered by the Brokers). 1.11 Guarantor. The obligations of the Lessee uncler this Lease shall be guaranteed by NA ("Guarantor"). (See also Paragraph ~7) 1.12 Business Hours for the Building: -3.... a.m. to -.L.. p.m., Monday through Friday (except Building Holidsys) and.t!-- a.m. to -.If- p.m. on Saturday (except Building Holidays). "Building Holidays" shall mean the dates of observation of New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day. Christmas Day, and IV I"l . 1.13 Lessor Supplied Services. Notwithstanding the provisions of Paragraph 11.1 , Lessor is NOT obligated to provide the following: D Janitorial services D Electricity D Other (specify): NA 1.14 Attachments. Attached hereto are the following, all of which constitute a part of this Lease: D an Addendum consisting of Paragraphs _ through _ ; o a plot plan depicting the Premises; D a current set of the Rules and Regulations; D a Work Letter; C a janitorial schedule; D other (specify): NA 1.9 Base Year; Insuring Party. The Base Year is :J on ;1- Paragraphs 4.2 and 8) 1.10 Real Estate Brokers: (See also Paragraph 15) (a) Representation: The following real estate brokers (the "Brokers") and brokerage relationships exist in this transaction (check applicable boxes): D NA o l\TT!. D NA . (See also Paragraph 6) Lessor is the "Insuring Party". (See also " 2. Premises. 2.1 Letting. Lessor hereby leases to Lessee. and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. Unless otherwise proVided herein, any, statement of size set forth in this Lease, or that may have been used in calculating Rent, is an approximation which the Parties agree is reasonable and any payments based thereon are not subject to revision whether or not the actual size is more or less. Note: Lessee is advised to verify the actual size prior to executing this 1.ease. 2.2 Condition. Lessor shall deliver the Premises to Lessee in a clean condition on the Commencement Date or the Early Possession Date, whichever Iirst occurs ("Start Date"), and warrants that the existing electrical, plumbing, lire sprinkler, lighting, heatiog, ventilating and air condttioning systems ("HVAC"), and all other items which the Lessor is obligated to construct pursuant to the Work Leller attached hereto, if any, other than those constructed by Lessee, shall be in good operating condttion on said date. 2.3 Compliance. Lessor warrants that the improvements comprising the Premises and the Common Areas comply with the building codes that were in effect at the time that each such improvement, or portion thereof, was constructed, and also wtth all applicable Initials o 1999-Amerlcan Indu.trlal Rul Estate Association PAGE 1 Initials FORM OFG.1_ . _I'!)~ Wl:Io..I SI8lIIUI ~3!)'t'd UO'I.'OOCSY IQ8tSi leaYlef4Snpul U8O{Jew't'-66G L. 0 S/8!J!U, :B\laJV uowwoO 94110 ~lId II 9q Ol109fOJd 94110 S9~lIpunoq 941 9P!B1no PUIIJ J9410 9111Ul!tS9P ool (0) . :9JCfSI!III\ll SU!IIW9J Sllll!W9Jd 94101 SS90011 91qllU0SIJ9J B\l BuoJ os S9sodJnd 9OUIIU91UIlIW JOj SlIaJV uowwoo 94110 AUII AI~210dw91 9S010 Ool (q) :WM90llJ AlII!I/l pUll BAIIMllI1lM 'B\l9J1I pedllOBPUII\ 'O!"21110 UO!l:19J!P 'SS9J6e 'sS9JllU! 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P9UIl9P SII) SUO!l1l1l8ISU/ AI!llIn JO suo!leJ911V ^ue 01 JO '(OS 4dllJllIIJed 99S) 9sn s,eassall0 IInS9J 8 SII SM81 J81lWIS ^U8 JO l'lV Sall!l!qBsIO 41IM sueo~awV 941 ^q p9J!nbeJ 9q ^ew 40!4M SUOlleO!l!pOw 'SSS!WaJd 9411nd II!M aassal 40!4M 01 9sn 941 01 ^Idde IOU saop A1ueJJeM Ples '9leo ~IIIS 941 UO 109"9 U! <....U9W9J!nbel:l 9IQeollddy..) S90UIIUIPJO pUll 'SUO!llIln1l9J 'p.lOO9J 10 SUO!l'l!JIS9J JO SIUIIU9^00 'SMIII (d) To add add~ional buildings and improvements to the Common Areas; (e) To use the Common Areas while engaged in making additional improvements, repairs or atterations to the Project, or any portion thereof; and (f) To do and perform such other acts and make such other changes in, to or w~h respect to the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate. 3. Term. 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3. 3.2 Early Possession. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including but not lim~ed to the obligations to pay Lessee's Share of the Operating Expense Increase) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date. 3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would dlherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered w~hin 60 days alter the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lli!Isee may, at its option, by notice in writing within 10 days alter the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days alter the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing. 3.4 Lessee Compliance. Lessor shall not be required to deliver possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and alter the Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, W Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied. 4. Rent, 4.1. Rent DefIned, All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("Rent"). 4.2 Operating Expense Increase. Lessee shail pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share of the amount by which ail Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinalter referred to as the "Operating Expense Incrtlllse", in accordance with the following provisions: (a) "Base Year" is as specWied in Paragraph 1.9. (b) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shail have no obligation to pay a share of the Operating Expense Increase applicable to the first 12 months of the Lease Term (other than such as are mandeted by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve 12 months). Lessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Lessee is responsible for a share of such increase. (c) "Operating Expenses" include all costs incurred by Lessor relating to the ownership and operation of the Project, calculated as if the Project was at least 95% occupied, including, but not limited to, the following: (i) The operation, repair, and maintenance in neat, clean, safe, good order and cond~ion, but not the replacement (see subparagraph (g)), of the following: (aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways,. parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates: (bb) All heating, air conditioning, plumbing, electrical systems, IWe safety equipment, communication systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services, pest control services, and the costs of any environmental inspections; (Iii) Any other service 10 be provided by Lessor that is elsewhere in this Lease stated to be an 'Operating Expense"; (iv) The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 and any deductible portion of an insured loss concerning the Building or the Common Areas; (v) The amount of the Real Property Taxes payable by Lessor pursuant to paragraph 10; (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services not separately metered; (vii) Labor, salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Project and accounting and management fees attributable to the operation of the Project; (viii) The cost of any Capital Expend~ure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such Capital Expenditure in any given month; (ix) Replacement of equipment or improvements that have a useful life for accounting purposes of 5 years or less. (d) Any ~em of Operating Expense that is specifically attributable to the Premises, the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises, Building, or other building. However, any such item that is not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equ~ably allocated by Lessor to all buildings in the Project. (e) The inclusion of the improvements, facil~ies and services set forth in Subparagraph 4.2(c) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facil~ies or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide 1he same or some of them. (f) Lessee's Share of Operating Expense Increase shall be payable by Lessee within 10 days after a reasonably detailed stat~ment of ..ctual expens&s is presented to Lessee by Lesser. At Lassor's opticr" however, an amount may be eslimated by Lesso; from time to time in advance of Lessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly during each Comparison Year of the Lease term, on the same day as the Base Rent is due hereunder. In the event that Lessee pays Lesso~s estimate of Lessee's Share of Operating Expense Increase as aforesaid, Lessor shall deliver to Lessee wnhin ..so days alter the expiration of each Comparison Year a reasonably detailed statement showing Lessee's Share of the actual Operating Expense Increase incurred during such year. If Lessee's payments under this paragraph (f) during said Comparison Year exceed Lessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against Lessee's Share of Operating Expense Increase next falling due. If Lessee's payments under this paragraph during said Comparison Year were less than Lessee's Share as indicated on said slatement, Lessee shall pay to Lessor the amount of the deficiency within 10 deys aner delivery by Lessor to Lessee of said statement. Lessor and Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. 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JOSS.., ,(q pe^!"oeJ "q OIIU"l:Ilo Iu"wlled asnllO IIll4S 88ss"1 '1U8WAllcI &'1> 'sp"aooJd 80UllJnSUI Aq JO 'lueu"l J"IlIO '41ed PJIlll AUll Aq pasmqw!aJ as!MJalllO SI Jossal 40111'" 01 Sll JO 'SallJed PJI41 OI.\tI08J!P lueU81 AUll ,(q Pled sasu"dx" AUll apnl~U! IOU lIe4S sasuaclx3 6u!lllJadO (4) 'pep!AOJd ElIIOqll Oll papnl~U! "q 1184S 1800 J!a41 as&:l 4014'" U! '(mA) (~)C:'I> lldllJ5llJed U! paqp~sap "d.-li alii 10 S! I! ssalun aJOW JO SJeaA S 10 sascdJnd 5U!lUnOOOll JOIIlJ!I ~ (f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or . remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on . the Premises prior to Lessee's occupancy, unless such remediation measure is required as a result of Lessee's use (including 'Alterations', as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor's investigative and remedial responsibilities. (g) LessorTermination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as Soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days alter receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the thell-monthly Base Rent or $100,000, whichever is greater. Lessee shall prOVide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible alter the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of termination. 6.3 Lessee's Compliance with Applicable Requirements, Except as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwr~er or rating bureau, and the recommendations of Lessor's engineers and/or consultants which relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective alter the Start Date. Lessee shall, within 10 days alter receipt of Lessor's written request, provide Lessor with copies of all permits and other documents, and other inlormation evidencing Lessee's compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the lailure 01 Lessee or the Premises to comply with any Applicable Requirements. 6.4 Inspection; Compliance. Lessor and Lessor's "Lender" (as delined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition 01 the Premises and lor verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1e) is lound to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor lor the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. 7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations, 7.1 Lessee's Obligations. Notwithstanding Lessor's obligation to keep the Premises in good condttion and repair, Lessee shall be responsible for payment 01 the cost thereof to Lessor as addttional rent for that portion of the cost of any maintenance and repair 01 the Premises, or any equipment (wherever located) that serves only Lessee or the Premises, to the extent such cost is attributable to causes beyond normal wear and tear. Lessee shall be responSible for the cost of painting, repairing or replaCing wall coverings, and to repair or replace any improvements with the Premises. Lessor may, at ~s option, upon reasonable notice, elect to have Lessee perform any particular such maintenance or repairs the cost of which is otherwise Lessee's responsibility hereunder. 7.2 Lessor's Obligations. Subject to the provisions 01 Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler system, lire alarm and/or smoke detection systems, fire hydrants, and the Common Areas. Lessee expressly waives the benefit 01 any statute now or hereafter in effect to the extent ~ is inconsistent with the terms of this Lease. 7.3 Utility Installations; Trade Fixtures; Alterations. (a) Definitions. The term "Utility Installations" refers to all floor and window coverings, air lines, vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, and plumbing in or on the Premises. The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the Improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). (b) Consent, Lessee shall not make any Alterations or Utility Installations to the Premises wtthout Lessor's prior written consent. Lessee may, however, make non"structural Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the rool, ceilings, floors or any existing walls, will not affect the electrical, plumbing, HVAC, and/or Iile safety systems, and the cumulative cost thereof during this Lease as extended does not exceed $2000. Notwithstanding the foregoing, Lessee shall not make or permit any rool penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondttlon to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (Ii) lurnishing Lessor with copies 01 both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions 01 said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall prompliy upon completion furnish Lessor w~h as. built plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor. (c) Liens: Bonds. Lessee shall pay, when due, all claims for labor or materials lurnished or alleged to have been furnished to or for Lessee at or lor use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Pren1ises, and Lessor ahal: hav..:: thG iJght tv pv';: Ilvtii:.&S c.: r,oii.respoi1sibility. If LeS3a& sharl CGntf:s: the validity of any such lien, ctaim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon belore the enlorcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, .~ indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor's attorneys' lees and costs. 7.4 Ownership; Removal; Surrender; and Restoration. (a) Ownership. Subject to Lessor's right to require removal or elect ownership as hereinalter provided, all Alterations and Utility Installations made by Lessee shall be.Jhe property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration ortermination 01 this Lease, become the property 01 Lessor and be surrendered by Lessee with the Premises. (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term 01 this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the Initials C 1999-Amerlcan Industrial Real Estate Assoclallon PAGE 5 Initials FORM OFG-l-9199 --.. 6611i.~-!l~O WllO~ S11ll~UI 93~"'d UO\le!~OSSV allllS3 11KI1Ilel4snpuI Ue:l!JllWV'"6661 O. SI8It!UI 10 Iunow" e41 .Iq pe~wlllou .! SJ8I\1"M pue .e."eleJ 4On. 10 IOBlIe e4.L 'U!eJe4 I.U!eB" pllJn.ul eq 01 P"'lnbeJ .UJed e41 OIIUep!~U! 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'BUIOBSJOI a41 Bu!pul!jS4l!MlON 'aO!IOeJd aOUeUsIU!BuJ pooB .Iq palUa^aJd ueaq e^e4 ptnOM le41 UO!lllJO!J818p JO aBewep .Iue SpnIOU! IOU J!e4S ",eal pue Je8M ,(JBU!PJO. 'Psld80xa Jeal pue JeaM ,(Jeu!p-/o 'J!edaJ 10 SIl!jS pUB UO!l!PUOO 'JapJO 6u!IBJado po06 U! pUB 'slJqsp 10 SSJI pUB uesp IOSJS41 saOBjJns pue S1Jed 'SIUaWs^oJdw! a41 jO J!B 4~M 'alep UO!lIlU!WJal JallJlla .IuB JO alBa uO!leJ!dx3 s41 .Iq SSSIWSJd a41 JspusJms lIe4S aasssl 'uo!leJOISall ~JapuaJJns (0) 'IUSSUOO paJ!nbaJ a41ln041!M 8pBW suo!lBllelSul Al!l!In JO sUOilllJallV pauMQ aassal Aue jO \.lBd AUB JO J!B )0 sWil Aue IB \eMWSJ S41 smbaJ .Iew JOSSSl 'asllal S!4110 UO!leU!WJal JO UOilllJ!dxa insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby. 8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and Its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents andlor damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the loregoing matters, Lessee shall upon notice delend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified. 8.8 Exemption of Lessor from Uabillty. Lessor shall not be liable lor injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results Irom fire, steam, electricity, gas, water or rain, or lrom the breakage, leakage, obstruction or other delects 01 pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places. Lessor shall not be liable lor any damages arising from any act or neglect of any other tenant 01 Lessor nor fro~he lailure 01 Lessor to enforce the provisions 01 any other lease in the Project. Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to Lessee's business or for any loss of income or profit therefrom. 9. Damage or Destruction. 9.1 Definitions. (a) "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date 01 the damage or destruction, and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage Is Partial or Total. (b) "Premises Total Destruction" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Instellations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the damage or destruction andlor the cost thereof exceeds a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing wilhin 30 days Irom the date 01 the damage or destruction as to whether or not the damage is Partial or Total. (c) "Insured Loss" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations.and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective 01 any deductible amounts or coverage limits involved. (d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation 01 Applicable Requirements, and wilhout deduction lor depreciation. (e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which requires repair, remediation, or restoration. 9.2 Partial Damage. Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Ownad Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in lulllorce and effect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $5,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwilhstandlng the foregoing, If the required insurance was not in lorce or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete said repairs. In the event, however, such shortege was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. II Lessor receives said lunds or adequate assurance thereof within said 10 day period, the party responsible lor making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by wrillen notice to Lessee wilhin 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in lull force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entilled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partiel Damage due to ffood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 9.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act 01 Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may eHher: (i) repair such damage as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date 01 such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right wilhin 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commilment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required lunds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice. 9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6. 9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base Rent, whether or nol an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written termination notice to Lessee wHhin 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, il Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises. then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor wHh any shortage in insurance proceeds (or adequate assurance thereof) need6d tv ma.iI..~ thb ..it~airs VII u( be:o,.; ':"'D earlier of (i) t:-,6 date which is .0 days after Lessee's receipt of Lessor's wrillen notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's commercially reasonable expense, repair such damage as soon as '-leasonably possible and this Lease shall continue in fulllorce and effect. II Lessee fails to exercise such option and provide such lunds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee's option shall be extinguished. 9.6 Abatement 01 Rent; Lessee's Remedies. (a) Abetement. In the event ol.Premises Partial Damage or Premises Totel Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. . Initials Cl1999-Amerlcan Industrial R_I Estate Association PAGE 7 Initials FORM OFG-1.a199 1I111lN"O:IO 111110:1 sl8!l!UI 9 3!)'Ifd Uone"",ssy 1l4lllS3 1""lIls!JlSnpu\ Us:lI.-uJ\l1l661 0 SIVltlUI "18!18J eAfJOunlu! 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Jossa, 01 aO!lou Uall!JM 8/116 'UO!lBJOISaJ JO J,..dBJ 40ns 10 IuaWllOuawwoo a41 01 JOJ.ld aWIl Au.. I" 'hew eassa, 'arnoo.. IIB4S uO!lB6!1qo 40ns Jail" .~"p 06 U!4l!M UO!lBJOISaJ JO JIBelaJ 40nS '^eM ,flj6u!u..aw pu.. 1""UBlsqns .. U! 'aouawwoo IOU seep pue SaSIWaJd a41 BJOISaJ JO JI..daJ 01 pale6!1qo aq ""4. JosSa',1 'salP8Wal:l (q) '. 12.2 Terms and Conditions Applicable to Assignment and Subletting. (a) Regardless of Lesso(s consent, no assignment or subletting shall: (i) be effective wnhout the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee. (b) Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lesso(s right to exercise its remedies for Lessee's DefauR or Breach. (c) Lesso(s consent to any assignment or subletting shall not constilule a consent to any subsequent assignment or subletting. (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee, without first exhausting Lesso(s remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor. (e) Each request for consent to an assignment or subletting shall be in wrning, accompanied by information relevant to Lesso(s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use anellor required modification of the Premises, n any. Lessee agrees to provide Lessor with such olller or addnional information anellor documentation as may be reasonably requested. (See also Paragraph 36) (I) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or entering Into such sublease, be deemed to ha_assumed and agreed to conform and comply with each and every term, covenant, condnion and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent wnh provisions of an assignment or sublease to which Lessor has specnically consented to in wrning. (g) Lesso(s consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 12.3 Additional Terms and Conditions Applicable to Subletting, The following terms and condnions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: (a) Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply sarne toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee's obligations, Lessee may collect said Rent. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply wnh any of Lessee's obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, nOlwnhstanding any claim from Lessee to the contrary. (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attom to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease: provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. (c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. (d) No sublessee shall further assign or sublet all or any part of the Premises without Lesso(s prior written consent. (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Defaull of Lessee wnhin the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 13. Default; Breach; Remedies. 13.1 Default; Breach. A "Default" is defined as a failure by the Lessee to comply wnh or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A "Breach" is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such DefauR within any applicable grace period: (a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism. (b) The failure of Lessee to make any payment of Rent or any Security Deposn required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 3 business days following written notice to Lessee. (c) The failure by Lessee to provide (i) reasonable written evidence of compliance wnh Applicable Requirements, (ii) the service contracts, (Iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty anellor Guarantor, (vii) any document requested under Paragraph 41 (easements), or (viii) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee. (d) A Defaull by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 2.9 hereof, other than those described in subparagraphs 13.1 (a), (b) or (c), above, where such Default continues for a period of 30 days alter written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and therealter diligently prosecutes such cure to completion. (e) The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benelit of creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. ~ 101 or any successor statute thereto (unless, in the case of a petnlon filed against Lessee, the same is dismissed within 60 days); (Iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged wnhln 30 days; provided, however, In the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. (f) The discovery that any financial statamE:r.t of Lc:;:iec \:i :f :lr.:.. C~:::.~tor g:....:~ ::: ~.:~.:;;- W;:J.Z mc.:crially fcl3a. (g) If the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guaranto(s liability with respect to this Lease other than in accordance with the terms of such guaranty, (Iii) a Guaranto(s becoming insolvent or the subject of a bankruptcy filing, (iv) a Guaranto(s refusal to honor the guaranty, or (v) a Guaranto(s ...IIreach of its guaranty obligation on an anticipatory basis, and Lessee's failure, within 60 days following written notice of any SUCh event, to provide written alternative assurance or security, which, when coupled wnh the then existing resources of Lessee, equals,or exceeds the combined financial resources of Lessee and the Guarantors that existed at the lime of execution of this Lease. 13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, wnhln 10 days after written notice (or in case of an emergency, without notice), Lessor rQay, at ns option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee shall not be honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments to be made by Lessee to be by cashie(s check. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach: Initials ~ 1999-Amerlcln Indultrlll Real Estate Assoclltlon PAGE 9 Initials FORM OFG-1-lI/911 _~-O:!O WIlO:! SJVmUI O~ 3DVd UOIl8I""...., SIIlS3 Inlll"!4IIlpUI u"",J8WY_~ 0 SIVtP,UI 'e.e.., .!4110 UO!lnoexe e4110 eW!l a411e ~e U! SlallOJ8 ellllo elnpe40S 941 4ljM eouePJoooe U! lKlj e Sle~OJ8 .led lIe4. Jo..el 'ue41 'uleJe4 &Snep uo!lel"".e UB 10 uO!lllJedo JO luew8e.dlll Aq J84184M 'peSllllJOU! S! IU8l::1 8Sll8 I! (p) JO '8Sll81 S!4110 UOllllJldxa alll J81lll 'Joss.., jO IUasuoo 841 4I!M 'saS!WllJd B41 jO uo!ssessod U! su!ewaJ eassBl Po (0) 'l:lll!OJd a41 U!4l!N\ peleool pue Jossel .ICfpeUMO se.!weJd J.....IO JO ses!weJd a41 01 .146!J ^ue Joss.., WOJj .aJ!nlxle eassel j! (q) 'UOlldO ^UB .e.l:lJaXe eassal j! 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'.ueew InIMel AUll ^q saS!WeJd e41 jO uo!ssessod 011461J s,,,liss.., BleUIWJe1 (11) 1 15.2 Assumption of Obligations. Any buyer or transferee of Lessor's interest in this Lease shall be deemed to have assumed Lessor's obligation hereunder. Brokers shall be third party beneficiaries 01 the provisions 01 Paragraphs 1.10, 15, 22 and 31. II Lessor lails to pay to Brokers any amounts due as and lor brokerage lees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker may send written notice . to Lessor and Lessee 01 such failure and if Lessor fails to pay such amounts within 10 days after said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee's Broker shall be deemed to be a third party beneficiary of any commission agreement entered into by andlor between Lessor and Lessor's Broker for the limited purpose of collecting any brokerage lee owed. 15.3 Representations and Indemnities of Broker Relationships, Lessee and Lessor each represent and warrant to the other that it has had no dealings wllh any person, firm, broker or finder (other than the Brokers, il any) in connection with this Lease, and that no one other than said named Brokers is entitled to any commission or linder's lee in connection herewllh. Lessee and Lessor do each hereby agree 10 indemnify, protect, delend and hold the other harmless Irom and against liability lor compensation or charges which may be claimed by any such unnamed broker, linder or other similar party by reason 01 any dealings or actions 01 the indemnifying Party, including any costs, expenses, attorneys' lees reasonably incurred with respect thereto. 16. Estoppel Certificates. (a) Each Party (as "Responding Party") shall within 10 days after written notice Irom the other Party (the "Requesting Party'';. execute, acknowledge and deliver to the Requesting Party a statement in wrlling in lorm similar to the then most current "Estoppel Certificate" form published by the American Industrial Real Estate Association, plus such addllional inlormation, confirmation andlor statements as may be reasonably requested by the Requesting Party. (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificale stating that: (i) the Lease is in lulllorce and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured delaults in the Requesting Party's performance, and (iii) il Lessor is the Requesting Party, not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certificate, and the Responding Party shall be estopped from denying the truth 01 the lacts contained in said Certilicate. (c) If Lessor desires to linance, refinance, or sell the Premises, or any part thereol, Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee's linancial statements lor the past 3 years. All such linancial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only lor the purposes herein set lorth. 17. Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the lee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event 01 a transfer 01 Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credll) any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transler or assignment and delivery 01 the Security Deposit, as aloresaid, the prior Lessor shall be relieved 01 all liability with respect to the obligations andlor covenants under this Lease thereafter to be performed by the Lessor. Subject to the loregoing, the obligations andlor covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 18. Severability. The invalidity of any provision 01 this Lease, as determined by a court 01 competent jurisdiction, shall in no way affect the validity 01 any other provision hereol. 19. Days. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Lease shall mean and refer to calendar days. 20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations 01 Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Project, and to no other assets 01 Lessor, lor the satisfaction of any liability 01 Lessor with respect to this Lease, and shall not seek recourse ageinst Lessor's partners, members, directors, officers or shareholders, or any 01 their personal assets for such satislaction. 21. Time of Essence. Time is 01 the essence with respect to the performance 01 all obligations to be performed or observed by the Parties under this Lease. 22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, lis own investigation as to the nature, quality, character and linancial responsibility of the other Party to this Lease and as to the use, nature, quality and character 01 the Premises. Brokers have no responsibility wllh respect thereto or with respect to any default or breach hereol by ellher Party. The liability (including court costs and attorneys' lees) 01 any Broker with respect to negotiation, execution, delivery or performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the lee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 23. Notices. 23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specilied in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's address lor delivery or mailing 01 notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy 01 all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may Irom time to time hereafter designate in writing. 23.2 . Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. II sent by regular mail the notice shall be deemed given 48 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 hours efter delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. 24. Waivers. No waiver by Lessor 01 the Delault or Breach 01 any term, covenant or condition hereol by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee 01 the same or of any other term, covenant or condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar &.:: ~y Las~*, v;' ~e c~r,~:iuad a~ :~'G ta~i~ v: ar. as:cPP6: ~v anfol"'-e the provision or provisions of this Lease requiring such consent. The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewllh, which such statements andlor ..conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time 01 deposit of such payment. 25. Disclosures Regarding The Nature 01 a Real Estate Agency Relationship. (a) When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should Irom the outset understand what type 01 llgency relationship or representation it has wllh the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as lollows: (i) Lesso~s Aoent. A Lessor's agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor's agent or subagent has the following affirmative obligations: To the Lessor' A fiduciary duty 01 utmost care, integrity, honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor' a. Diligent exercise 01 reasonable skills and care in performance of the agent's duties. b. A duty of honest and lair dealing and good faith. c. A duty to disclose ell facts known to the agent Initials tel19qg..Am~rl("'.an IndustrlR! Rp.al Estate Association PAGE 11 Initials FORM r"'''~,.1-9f99 66I6'~'D:lO WIIO:l Slenlul ;a 3DVd UOII"I:>OSSV 8l"IS3 Inlll"lIlSnpul UIlOJ"'WV-666~ ell slvn!UI "41 01 sAII~ UIBlIIJ 01146!J "41 ,,^B4 IIB4S JOSSIIl 'UOIP'ppB ul 'su6!s ..asBal JO:l.. ^,BU!p.lO AUB sas!waJd a41 uo 90Bld j09Ja4 WJal a41 jO S4IUOW 91sel a415u!Jnp .lew JOSSal pUB SU5!S ..818S JO:l.. ^,8U!pJO AU8 SIIS!WaJd a41 uo a~8rd aW!l AUBIB A8W JOSSIIl 'allssIIl 01 N!l!q8!1 JO IUaJ 10 IUllwal8qB In04l!M IIq IIB4S SII!P.^lIOB 4~ns II..... 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'aAoqB 4lJOj las sallnp aAIlBWJ!UB a41 aAIOAu! IOU saop 4~14M ^"Bd Ja4l0 a41 WOJj peU!Blqo UOIl8WJOjU! 18!luIIP!lUO" AU8 ^"Bd JII4l!a 01 rea^"J 01 pelBS!lqo IOU S! lua58 U..... 'sa!\.I8d a41 '10 UOlllWesqo pUB uOlluellB lua5mp 941 U!4I1M JO '01 UMOU~ IOU aJe 18111 ^"adoJd alii 10 Al!l!q8J!Sap JO anl8A a41 6U!lOllU8 AIIBuelllw ,Premises and to unlock all doors in or upon the Premises other than to files, vauRs and safes, and In the case of emergency to enter the :. Premises by any reasonably appropriate means, and any such entry shall not be deemed a forcible or unlawful entry or detainer of the Premises or an eviction. Lessee waives any charges for damages or injuries or interference with Lessee's property or business in connection therewRh. 33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor's prior written consent. Lessor shall not be obligated to exercise any standard 01 reasonableness in determining whether to permit an auction. 34. Signs. Lessee shall not place any sign upon the Project without Lessor's prior written consent. 35. Termination; Merger, Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue anyone or all existing subtenancies. Lessor's failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor's election to have such event consmute the termination of such interest. 36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration 01, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shali such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specificaliy stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor's consent shali not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that e~her Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail w~hin 10 business days following such request. 37. Guarantor. 37.1 Execution, The Guarantors, if any, shall each execute a guaranty in the form most recently published by the American Industrial Real Estate Association. 37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor's behaij to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. 38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 39. Options. If Lessee is granted an Option, as defined below, then the following provisions shall apply. 39.1 Definition. .Optlon" shall mean: (a) the right to extend the term 01 or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase or the right of first refusal to purchase the Premises or other property of Lessor. 39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting. 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 39.4 Effect of DeflIult on Options. (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof Is given Lessee), (ill) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option. (b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise an Option because of the provisions of Paragraph 39.4(a). (c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, if, atter such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (Ii) if Lessee commits a Breach of this Lease. 40. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acls of third parties. In the event, however, that Lessor should elect to provide security services, then the cost thereof shall be an Operating Expense. 41 . Reservations. (a) Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, (iii) to create andlor install new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not unreasonably interfere with the use of the Premises by Lessee. Lessor may also: change the name, address or title of the Building or Project upon at least 90 days prior written notice; provide and Install, at Lessee's expense, Building standard graphics on the door of the Premises and such portions of the Common Areas as Lessor shall reasonably deem appropriate; grant to any lessee the exclusive right to conduct any business as long as such exclusive right does not conflict with any rights expressly given herein; and to place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the rool, exierior 01 the Building or the Project or on pole signs in the Common Areas. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights. The obstruction of Lessee's view, air, or light by any structure erected in the vicinity of the Building, whether by Lessor or third parties, shall in no way affect this Lease or impose any liability upon Lessor. _ (b) Lessor also reserves the right to move Lessee to other space of comparable size in the Building or Project. Lessor must provide at least 45 days prior written notice of such move, and the new space must contain improvements of cO"1l?arable quality 10 tho~e contained within the Pr..mises. Lessor shall pay the reasonable out of pocket costs tnat Lesse.. incur. ....ith ragar':: to suc~, relocation, including the expenses of moving and necessary stationary revision costs. In no event, however, shall Lessor be required to pay an amount in excess of two months Base Rent. Lessee may not be relocated more than once during the term 01 this Lease. (c) Lessee shall not: (i) use a representation (photographic or otherwise) of the Building or Project or their name(s) in ..connection with Lessee's business; or (Ii) suffer or permit anyone, except in emergency, to go upon the roof of the Building. 42. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment 'under protest' and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of sucllSum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. 43. Authority. (a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease Initials C 1999-Amerlcan Induslrla' Real Estate Assoclallon PAGE 13 IniUaJs FORM OFG-1-9199 on its behalf. Each party shall, within 30 days after request, deliver to the other party satisfactory evidence of such authority. (b) If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and severally liable hereunder. It is agreed that anyone of the named Lessees shall be empowered to execute any amendment to thi~ Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such document. 44. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 45. Offer, Preparation of this Lease by either party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 46. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee's obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises. 47. Multiple Parties. If more than one person or entity is named herein as either Lessor or Lessee, such multiple Parties shall have joint and several responsibility to comply wllh the terms of this Lease. 48. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. 49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation andlor the ArMration of all disputes between the Parties andior Brokers ari.ing uul .,f thi. Lease w is G is 110t attached to this Lease. 50. Americans with Disabilities Act. In the event that as a result of Lessee's use, or intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises, Building, Project andlor Common Areas, the Parties agree that such modifications, construction or improvements shall be made at: 0 Lessor's expense 0 Lessee's expense. '-, LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESP~CT TO THE PREMISES. ATTENTION: NO REPRESENTATION OR RECOMMENDATiON is MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO: 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 2. RETAIN APPROPRIATE CONSULTANTS TO REViEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING AND SIZE OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE. WARNING: IF THE PREMISES ARE LOCATED iN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED. The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures. Executed at: <::::In Rt3rn;:;,rn inn on: By LESSOR: 'T'vr, F.nt-"rpr; ,,,,,, T.T.(, Executed at: San Bernardino on: By LESSEE: City of San Bernardino By: Name Printed: Greqory Villanueva Title: By: Name Printed: Judith Valles Title: Mavor By: Name Printed: Title: Address: By: Name Printed: Title: Address: ... Tel~"'1-. Telephone: ( ) Facsimile: ( ) Federal 10 No. Fa, Fea A I:x 1 Attorneys' Fees. The costs, salary and expenses of Lessee's City , of his office, in connection with that action or proceeding, shall 'orneys' fees for the purposes of this Agreerrent. .~ InitlaJa o 1999-Amerlcan Industrtal Res' Estate Association PAGE 14 IMials FORM OFG.l.9/99 , .. . LESSOR'S LESSEE'S BROKER: BROKER: Alln: Alln: Address: Address: Telephone Telephone These forms are often modified to meet changing requirements 01 law and needs of the Industry. Always wrtte or call to make sure you are utilizing the most current form: American Industrial Resl Estate Assocl.Don, 700 South Flower Street, Suite 600, Los Angeles, CA 90017. (213) .7-8777. OCopyrlght 1999-By American Industrial Real Estate A_laDon. .1 All rights .....rved. No part of these works may be reproduced In any form without permlaalon In writing. .~ Initials o 1999-Amerlcan Indultrla' R., Estate Association PAGE 15 InltiaJ. FORM OFG-1-911l9 '. lMI/&'~-o:lO 11110:1 SI1IIllI'I UOIl8I00ssy -... 1IlIlIIIl!4SnpUI U_WV-666~ 0 SIWlIIUI ': .. ,. ... - NV'ld 8001.::1 3SV'31 381.::1.::10 08V'ONV'.lS '. ~. ' > RULES AND REGULATIONS FOR STANDARD OFFICE LEASE - Dated: By and Batwaen GENERAL RULES 1. 'assee shall not suffar or perm~ the obstruction of any Common Areas, including driveways, walkways and stairways. 2. Lessor reserves the right to refuse access to any persons Lessor in good Ia~h judges to be a threat to the safety and reputation of the Project and its occupents. ' 3. Lessee shall not make or permit any noise or odors that annoy or interfere with other lessees or persons having business within 1118 Project. 4. Lassae shall not keep animals or birds within the Project, and shall not bring bicycles, motorcycles or other vehicles Into areas not designated as authorized for same. 5. Lessae shall not make, suffer or perm~ litter except in appropriate receptacles for that purpose. 6. Lessee shall not altar any lock or install new or additional locks or bolts. 7. Lessee shall be responsible for the inappropriate use of any toilet rooms, plumbing or other utUities. No foreign substances of any kind are to be inserted therein. 8. Lessee shall not deface the walls, partitions or other surfaces of the Premises or Project. 9. Lessee shall not suffer or permit anything in or around the Premises or BuDding that causes excessive vibration or floor loading In any part of the Project. 10. Furniture, significant freight and equipment shall be moved into or out of the building only with the Lassor's knowledge and consent, and subject to such reasonable limitations, techniques and timing, as may be designated by Lessor. Lassae shall be responsible for any damage to the Ollice Building Project arising from any such activity. 1 1. Lessae shall not employ any service or contractor for services or wori< to be performed in the BUilding, except as approved by Lessor. 12. Lessor reserves the right to close and lock the Building on Saturdays, Sundays and Building Holidays, and on other days _n the hours of _ P.M. and _ A.M. of the following day. If Lessee uses the Premises during such periods, Lessee shall be responsible for securely locking any doors ~ may have opened for entry. 13. Lessee shall retum all keys at the termination of ~s tenancy and shall be responslble for the cost of replacing eny kays that are lost. 14. No window coverings, shades or awnings shall be installed or used by Lessee. 15. No Lessee, employee or invitee shall go upon the roof of the Building. 16. Lessee shall not suffer or permit smoking or carrying of lighted cigars or cigarettes in areas reasonably designated by Lessor or by applicable governmental agencies as non.smoking areas. 1? Lessee shall not use any method of heating or air conditioning other than as provided by Lessor. 18. Lessee shall not install, maintain or operate any vending machines upon tha Premises without Lessor's wrillen consent. 19. The Premises shall not be used for lodging or manulacturing, cooking or food preperation. 20. Lessee shall comply with all salaty, fire protection and evacuation regulations established by Lessor or any applicable governmental agency. 21. Lessor reserves the right to waive anyone of these rules or regulations, and/or as to any particular Lessee, and any such waiver shall not constitute a waiver of any other rule or regulation or any subsequent application thereof to such Lessee. 22. Lessee assumes all risks from theft or vandalism and agrees to keep its Premises locked as may be required. 23. Lessor reserves the right to make such other reasonable rules and regulations as it may from time to time deem necessary for the appropriate operation and safety of the Project and its occupants. Lessee agrees to abide by these and such rules and regulations. PARKING RULES 1. Parking areas shall be used only for parking by vehicles no longer than full size, passenger automobiles herein called "Permitted Size Vehicles." Vehicles othar than Permiltacl Size Vehicles are herein referred to as "Oversized Vehicles: 2. Lessee shall not perm~ or allow any vehicles that belong to or are controlled by Lessae or Lessee's employees, suppliers, shippers, customers, or invitees to be loaded, unloaded, or parked in areas other than those designated by Lessor for such activnies. 3. Pari<lng stickers or identifICation devices shall be the property of Lessor and be returned to Lessor by the holder thereof upon termination of the holde(s peri<ing privileges. Lessee will pey such replacement charge as is reasonably established by Lessor for the loss of such devices. 4. Lessor reserves the right to refuse the sale of monthly identification devices to any person or entity that willfully refuses to comply with the appllcabie rules, regulations, laws andIor agraemants. 5. Lessor reserves the right to rerocate all or a part of parking spaces from floor to floor, within one ftoor, andIor to reasonably adjacent offsite location(s), and to reasonably allocate them betwaen compect and standerd size spaces, as long as the same complies with applicable laws, ordinances and regulations. 6. Users of the parking area will obey all posted signs and park only in the areas designated for vehtde parking. 7. Unless otherwise instructed, fN8ry person using the parking area is required to park and kx:k his own vehicle. Lessor will not be responsi~e for any damage to vehicles, injury to persons or ioss of property, all of which risks are assumed by the party using the pari<ing area. 8. Validation, if established, will be permissible only by such method or methods as Lessor anellor res licensee may establish at rates generally applicable to visnor parking. 9. The maintenance, washing, waxing or cleaning 01 vehicles in the parking structure or Common Areas Is prohibited. 10. Lessee shall be responsible for saeing that all of its employees, agents and invitees comply with the appllcabie pari<ing rules, regulations, laws and agreaments. '- 1 1. Lessor reserves the right to modify these rules and/or adopt such other reasonable and non.discriminatory rules and regulations as ~ may daem necessary for the proper operation of the parking arae. ' 12. Such peri<ing use as Is herein provided is intended merely as a license only and no bellment is intended or shall be craeled hereby. . Initials o 1999-Amerlcan Industrial Ral Estate Association PAGE 1 of 1 Initials FORM OFG-1_