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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16 rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage
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of this resolution.
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2002-176
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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
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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
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(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.
(g) Operating Expenses shall not include the costs of replacement for equipment or capital components such as the roof,
foundations. exterior walls or a Common Area capital improvement, such as the parking lot paving. elevators, fences that have a useful
IniUals
o 1999-Am_n Industrial Real EstMe Alsoclatlon
PAGE 3
Initials
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(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
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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
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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
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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
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,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
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C 1999-Amerlcan Induslrla' Real Estate Assoclallon
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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.
.~
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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.
.~
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FORM OFG-1-911l9
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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.
.
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