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HomeMy WebLinkAbout2002-223 , '. " . " . ~. '[. RESOLUTION NO. 2002-223 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO RESCINDING RESOLUTION NO. 2002-176 AND AUTHORIZING 3 THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SPACE FOR THE CITY OF SAN BERNARDINO, 4 CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON 5TH MUL TICUL TURAL CENTER. 5 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 SECTION 1. Rcsolution No. 2002-176 is hcrcby rcscindcd. 8 9 SECTION 2. The Mayor 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 10 space for the City of San Bcrnardino, Cultural & International Affairs OfIice, Arts on 5th 11 12 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 13 set forth at length. 14 SECTION 3. The authorization to execute the above referenced agreement is 15 rescinded if the parties to the agreement failed to execute it within sixty (60) days of the JUlle 28, 2002 " 2002-223 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO RESCINDING RESOLUTION NO. 2002-176 AND AUTHORIZING 2 THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SP ACE FOR THE CITY OF SAN BERNARDINO, 3 CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON 5TH MUL TICUL TURAL CENTER. 4 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a ioint reg. meeting thcrcof: held on the 7 Istdayof July ,2002, by the following vote, to-wit: 8 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 9 ESTRADA x 10 LIEN X II MCGINNIS ~ 12 DERRY ~ 13 SUAREZ X - 14 ANDERSON X - 15 MCCAMMACK X 16 17 18 ;J(}t1c1Af0 J1te dvrJtLJ II} uUdu) City Clerk ) I 6 The foregoing Resolution is hereby approved this:; rei day of July, 2002. 19 20 21 22 23 Approved as to form 24 and legal content: 25 JAMES F. PENMAN, City Attorney 26 n 27 By: \~ t 28 V L J-1EcjlTVGAgr.ResJ 2 June 2X, 2002 " . "';." _~1@ STANDARD MULTI-TENANT OFFICE LEASE - GROSS AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 1 . Basic Provisions ("Basic Provisions"). 1.1 Parties: This Lease ("Lease"), dated for reference purposes only M"y 31. 2002 and between Tire FlltQrpri<e<, 1/ C ,_,ismadeby ("Lessor") and' Cit.y Qf S2U B~rtl:1rd1t;JQ. ('l1]tll[tl' ~ Tnrt:)rn~tiona' AF-F.:d't"'f:' ("Lessee"), (collectively the "Parties", or Individually a "Party"). 1.2 (a) Premises: That certain portion of the Project (as defined below), known as SUir ~~3'bers(s) 1 O~ , 1st Iloor(s), consisting of approximately J 000 rentabie square leel and approximately , useable square feet ("Premises"). The Premises are 10Gate 'at: 468 West 5th Steet , in the City 01 ~all llllrllardillQ ,County ot ~.ll ""rll~rdillo ,State of rollf'Arn! 0 ,w~h zip code Q?L.Ol . In addition to Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non-exclusive rights to the Common Areas (as defined 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 lhe 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 feel. (See also Parao(aph 2) 1.2 (b) Parking: -D.~ 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: "'...... ( ears a.nd_ zero mpoths C"OriginaITerm"lcommlilnqin<l.. 12/01/01 ("Commencement Dat!''') and ending 11 30 03 Wltli 1:\00 uptlons w renew, ~acn lJptluu "~,P.Jr ir~a~g~d\e"). * (See also Paragraph 3):tor two years. 0 ce renew mus gl ~. 1.4 Early Possession: IV/if ("Early Possession Cate"). (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $ $ J 000 per month ("Base Rent"), payable on the D";;';~~C~~x is chJ~RI.,hQrt. are P;ovisions in th'i~t~~:~s~;:~:b:~~ ~ent to be adjusted 1.6 Lessee's Share of Operating Expense Increase: J2f percent (ji! %) ("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:$ fl<((), 1'0 for ().,- rn,.-~.'+-I,--, (e) Total Cue Upon Execution of this Lease: $ ,7f Agreed Use: Cultural Exhibit space and offices ll:!t- day of each month f~- ..x I<d<,...f( 1.8 represents Lessor exclusively ("Lessor's Broker"): represents Lessee exclusively (ULessee's Broker"); or represents both Lessor and Lessee ("Cual Agency"). (b) Payment to Brokers: Upon execution and deiivery of this Lease by both Parties, Lessor shall pay 10 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 under this Lease shall be guaranteed by NA ("Guarantor"). (See also Paragraph ~7) 1.12 Business Hours for the BUilding: --.!L a.m. to -L. p,m., Monday through Friday (except Building Holidays) and -Jt.- a.m. to....,e:.. p.m. on Saturday (except Building Holidays). "Building Holidays" shall mean the dates of observation of NewYea(s Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day. Christmas Oay, and f'J /J . 1.13 Lessor Supplied Services. Notwithstanding the provisions of Paragraph 11.1 , Lessor is NOT obligated to provide the following: o Janitorial selVices o Electricity o Other (specify): NA 1.14 Attachments. Attached hereto are tha following, aU 01 which constitute a part of this Lease: o an Addendum consisting of Paragraphs _ through _ ; o a plot plan depicting the Premises; o a current set of the Rules and Regulations; o a Work Letter; C a janitorial schedule; o other (specify): NA 1.9 Base Year; Insuring Party. The Base Year is :'>00.1 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): o NA o hln o 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 Lesser. 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 .\,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 first occurs (UStart Daten), and warrants thai the existing electrical, plumbing, fire sprinkler, lighting, heating. ventilating and air conditioning systems ("HVAC"), and all other items which the Lessor is obligated to construct pursuant to the Work Letter attached hereto, if any, ather than those constructed by Lessee. shall be in good operating cond~ion 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 w~h a1ll1P.plicable *Notwithstanding the provisions of Paragraph l.~ Lessee may terminate this Lease at any time by giving written notice to the Lessor! thirty days prior to the date when such termination shall bec Initials f f . PAGE 1 o 1999-Amerlc~n-'ndra~Jiir ~~r Estate Association .. '" ~ . laws, covenants or restrictions of record, regulations, and ordinances ("Applicable Requirements") in eflect on the Start Date. Said '. , warranty does nol apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Oisabilities Act or any similar laws as a result of Lessee's use (see Paragraph 50). or 10 any Alterations or Utility Installations (as defined In Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the zoning and other Applicable Requirements are appropriate for Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed. II. the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alleration of the Premises, the remediation of any Hazardous Substance, or the reinforcement or other physical modification 01 the Premises ("Capital Expenditure"), Lessor and Lessee shall allocate the cost of such work as lollows: (a) Subject to Paragraph 2.3(c) below, iI such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however, that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the differenGe between the actual cost thereof and the amount equal to 6 months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without GommenGing such Capital Expenditure. (b) If such Capilal Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee shall allocate the Gost of such Capital Expenditure as follows: Lessor shall advance the funds necessary for such Capital Expenditure but Lessee shall be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying Lessee's share of the cost of such Capital Expenditure (the percentage specified in Paragraph 1.6 by a fraction,the numerator of whiGh is one, and the denominator of which is 144 (ie. 1/144th of the cosl per monlh)). Lessee shall pay interest on the unamortized balance 01 Lessee's share at a rate that is Gommercially reasonable in the judgment of Lesso~s accountants. Lessee may, however, prepay its obligation at any time. Provided, however, that if such Capital Expenditure is reqvired during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminale this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lesso~s termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure. Lessee may advance such funds and deduct same, with Interest, tram Rent until Lesso~s share of such costs have been fully paid. If Lessee is unable to finance Lesso~s share, or ilthe balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor. (c) Notwithstanding the above, the provisions Goncerning Capital Expenditures are intended to apply only to non. voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premises then, and in that event, Lessee shall be fully responsible for the cost thereof, and Lessee shall not have any right to terminate this Lease. 2.4 Acknowledgements. Lessee acknowledges that: (a) Lessee has been advised by Lessor and/or Brokers to satisfy itself with respect to the condition 01 the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements), and their suitability for Lessee's intended use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or warranties with respeGt to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations. promises or warranties concerning Lessee's ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lesso~s sole responsibility to investigate the financial capability and/or suitability of all proposed tenants. 2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date, Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work. 2.6 Vehicle Parking. So long as Lessee is not in default, and subject to the Rules and Regulations attached hereto, and as established by Lessor from lime to lime, Lessee shall be entitled to rent and use the number of parking spaces specified in Paragraph 1.2(b) at the rental rate applicable from time to time for monthiy parking as set by Lessor and/or its licensee. (a) If Lessee commits, permits or allows any of the prohibited activities described in the Lease or the rules then in effect, then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor. (b) The monthly rent per parking space specified in Paragraph 1.2(b) is subiect t6 change upon 30 days prior written notice to Lessee. The rent for the parking is payable one month in advance prior to the first day of each calendar month. 2.7 Common Areas - Definition. The term "Common Areas" is defined as all areas and facilities outside the Premises and within the exterior boundary line 01 the Project and interior utility raceways and installations within the Premises that are provided and designated by the Lessor, from time to time, for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees, including, but not limited to, common entrances, lobbies, corridors, stairwells, public restrooms, elevators, parking areas, loading and unloading areas, trash areas, roadways. walkways, driveways and landscaped areas. 2.8 Common Areas - lessee's Rights. Lessor grants to Lessee, for the benefit of Lessee and its employees, suppliers, shippers, contractors, customers and invitees, during the term of this Lease, the non-exclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Lessor under the terms hereof or under the terms of any rules and iegulations or restrictions governing the use of the Project. Under no circumstances shall the right herein granted 10 use the Common Areas be deemed to include the right to store any property, temporarily or permanently, ir the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or Lessors designated agent, which consent may be revoked at any time. In the event that any unauthorized storage shall occur then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, 10 remove the property and charge the cost 10 Lessee, which cost shall be immediately payable upon demand by Lessor. 2.9 Common Areas. Rules and Regulations. Lessor or such other person(s) as Lessor may appoint shall have the exclusive control and management of the Common Areas and shall have the right, from time to time, to adopt, modify, amend and enforce reasonable rules and regulations ('.Rules and Regulations") for the management, safety, care, and cleanliness of the grourids, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or tenants of th'a Buih:!!!'l.g and the Project tl:1d th::..lr lnvitees. nit: Las::;ee ;:>.grccs to ..ibid;:: by .:md cc,,:cr,l1 to aU such Rulos and Reg:Jio.tions, and tc cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessor shall not be responsible to Lessee for the non-compliance with said Rules and Regulations by other tenants of the Project. " 2.10 Common Areas. Changes. Lessor shall have the right, in Lesso~s sole discretion, from time to time: (a) To make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of the lobbies, windows, stairways, air shafts, elevators, escalators. restrooms, driveways, entmnces, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility raceways; (b) To close temporarily any of Ille Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; (c) To designate other land outside the boundaries of the Project to be a part of the Common Areas; Initials o 1999-Amerlcan Industrial Real Estate Association PAGE 2 ~ FORM OF~~~ 'r .-. , (d) To add addnional buildings and improvements to the Common Areas; (e) To use the CommDn Areas while engaged in making addilional improvements, repairs or a"erations to the Project" or any portion thereof; and (I) To do and perform such other acts and make such other changes in, to or with respect to the Common Areas and Project as Lessor may, in the exercise 01 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 specilied In Paragraph 1.3. 3.2 Earty Possession. II Lessee totally or partially occupies the Premises prior to the Commencement Date, lhe obligation to pay Base Rent shall be abated lor the period of such early possession. All other terms 01 this Lease (including but not limned to the obligations to pay Lessee's Share 01 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 01 the Premises to Lessee by the Commencement Date. II, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such lailure affect the validity 01 this Lease. Lessee shall not, however, be obligated to pay Rent or perform ns other obligations until Lessor delivers possession 01 the Premises and any period ot rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery 01 possession and continue for a period equal to what Lessee would cltt1erwise have enjoyed under the terms hereof, but minus any days 01 delay caused by the acts or omissions 01 Lessee. II possession is not delivered wilhin 60 days alter the Commencement Date, as the same may be extended under the terms 01 any Work Letter executed by Parties, Letsee may, at its option, by notice in writing within 10 days alter the end 01 such 60 day period, cancel this Lease, in which event the Parties shall be discharged Irom all obligations hereunder. II such written notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. II possession 01 the Premises Is not delivered wilhin 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 01 the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery 01 such evidence, Lessee shall be required to perform all 01 its obligations under this Lease Irom and after the Start Date, including the payment 01 Rent. notwithstanding Lesso(s election to withhold possession pending receipt 01 such evidence 01 insurance. Further, ff 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 01 Lessee to Lessor under the terms of this Lease (except lor the Security Deposil) are deemed to be rent ("Rent"). 4.2 Operating Expense Increase. Lessee shall pay to Lessor during the term hereof, In addition to the Base Rent, Lessee's Share 01 the amount by which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses lor the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase", in accordance with the lollowing prOvisions: (a) "Base Year" is as specffied in Paragraph 1.9. (b) "Comparison Year" Is defined as each calendar year during the term 01 this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share 01 the Operating Expense Increese applicable to the lirst 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which govemment mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve 12 months). Lessee's Share 01 the Operating Expense Increase lor 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 lor a share 01 such increase. (c) "Operating Expenses" include all costs incurred by Lessor relating to the ownership and operation 01 the Project, calculated as if the Project was at least 95% occupied, including, but not limited to, the lollowing: (i) The operation, repair, and maintenance in neat, clean, sale, good order and condition, but not the replacement (see subparagraph (g)), 01 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 lacil"ies, building exteriors and rools, lences and gates; (bb) All heating. air conditioning, plumbing, electrical systems, lile salety equipment, communication systems and other equipment used in common by. or lor the benefit 01, lessees or occupants 01 the Project, including elevators and escalators. tenant directories, lire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services, pest control services, and the costs 01 any environmental inspections; (Iii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost 01 the premiums lor the insurance policies maintained by Lessor pursuant to paragraph 8 and any deductible portion 01 an insured loss conceming the Building or the Common Areas; (v) The amount 01 the Real Property Taxes payable by Lessor pursuanlto paragraph 1 D: (vi) The cost 01 water, sewer, gas, electricity, and other publicly mandated services not separately metered; (vii) Labor, salaries, and applicable Iringe benelits and costs, materials, supplies and tools, used in maintaining andlor cleaning the Project and accounting and management fees attributable to the operation 01 the Project; (viii) The cost of any Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided: however, that Lessor shall allocate the cost 01 any such Capital Expendilure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 1/144th 01 the cost 01 such Capital Expenditure in any given month; (ix) Replacement 01 equipment or improvements that have a uselullile for accounting purposes of 5 years or less. (d) Any item 01 Operating Expense that is specilically attributable to the Premises, the Building or to any other building In the Project or to the operation, repair and maintenance thereol, 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 thereol, shall be equitably allocated by Lessor to all buildings in the Project. (e) The inclusion of the improvements, facilities and services set lorth in Subparagraph 4.2(c) shall not be deemed to impose an obligation upon lessor to either have said improvements or facilities or to provide those ,services unless the Project already has the sarna. Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them, (I) Lessee's Share of Operating Expense Increase shall be payable by Lessee within 10 days alter a reasonably detailed staltlment of <lctual expens&s is presented to Ltlssee by Lessur. At Ltlsso(s optior" however, an amount may :>e eslimated by lessor trom time to time in advance at 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 Lessors estimate of Lessee's Share of Operating Expense Increase as aforesaid, Le:ssor shall deliver to Lessee within ..s0 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 (I) during said Comparison Year exceed Lessee's Share as indicated on said statement, Lessee shall be entitled to credil the amount 01 such overpayment against Lessee's Share 01 Operating Expense Increase next lalling due. II Lessee's payments under this paragraph during said Comparison Year were less than lessee's Share as indicated on said s\atement, lessee shall pay to Lessor the amount 01 the deficiency within 10 days after delivery by Lessor to Lessee 01 said statement. Lessor and Lessee shalllorthwith adjust between them by cash payment any balance determined to exist with respect to that portion 01 the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated belore the end 01 such Comparison Year. 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JOss.., Act paAla:>8J aq ollual:j 10 Iuaw.led asn"01l84S eassal lU9w.led f;'" 'spaaOOJd a:lul1InSUI Act JO 'Iu"ual JalllO ',\jJ8d pJlIII AU8 Aq pas.lnqw!aJ as!MJalllO S! Jossal 4011lM 01 Sl! JO 'Sa!1l8d pJlIII 01 At""'JIP IU8ual Aue Aq Pl8d sasuadxa AU8 apnj:lUllou IIUllS sa8uadx36u!ll1lado (II) 'paPl/lOJd 9I\OQ8 Bll papnloul aq 1I11lls ISOO J!alll aS80 1I01llM UI '(!!Ih) (O)C:'" lldeJ68J8d U! paq!l:>sap aeMI aliI 10 S! II ssalun 9JOW JO SJ8aA 5 10 sesodmd 6uIlunoo08 JOI al!l ": ~.'. (f) Investigations ar.d Rcmcdiations. Le!.sor shall retain the responsibility and pay tor any lnves(igations. or , reme'diation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances pn' the Premises prior to Lessee's occupancy. unless such remediation measure is required as a result of Lessee's use (including ~Alteralions., 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) LessorTermlnation Option. H 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 10 remediate such condition exceeds 12 times the then monthly Base Rent or $10D,DDO, whichever is greater, give written notice to Lessee, within 30 days after 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 the~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 after the required funds are available. If Lessee does not give such notiGe 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 underwriter or rating bureau, and the recommendations of Lessor's engineers andlor 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 information 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 failure of Lessee or the Premises to comply with any Applicable Requirements. 6.4 Inspection; Compliance. Lessor and Lessor's "Lender" (as defined 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 of the Premises and for 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 found 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 for 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 condition and repair, Lessee shall be responsible for payment of the cost thereof to Lessor as additional rent for that portion of the cost of any maintenance and repair of 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 of 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, fire alarm andlor smoke detection systems, fire hydrants, and the Common Areas. Lessee expressly waives the benefit of any statute now or hereafter in effect to the extent rt 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 "Afterations" shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures. whether by addition or deletion. "LeSsee Owned Alterations andlor Utility Installations" are defined as Alterations andlor Utilify Installations made by Lessee that are not yel owned by Lessor pursuant to Paragraph 7.4(a). (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises w~hout 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 roof, ceilings, floors or any existing walls, will not affect the electrical, plumbing, HVAC, andlor life safely 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 roof penetrations andlor install anything on the roof without the prior written approval of Lessor. Lessor may. as a precond~ion to granting such approval, require Lessee to utilize a contractor Ghosen andlor 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, (i1) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said perm~s 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 prompUy upon completion furnish Lessor wilh 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 15D% of the estimated cost of such Alteration or Utilily Installation andlor upon Lessee's posting an additional Security Deposit with Lessor. (c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which Glaims 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 Premises, and Lessor .:;ha.l: hav~ a.,o .;gl-.: tv p.:,,;: 11':':;('';& c,~ r.~ii-raspoilsibili:y. If ~es3ao shall ccn:&s: the validity of any such lien, claim 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 before the enforcement 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 hereinafter 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 Utilify Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration ortermination of this Lease become the property of Lessor and be surrendered by Lessee with the Premises. , (b) Removal. By delivery to Lessee of written notice from Lessor not eariler than 90 and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the Initials o 1999-Amertcan Induatrlal Real Estate AssociatIon PAGE 5 FORM of:w ..,"--," ...-., ~;~"'1I0:! -iW- 93!:lVd uDnel~DSS" all!lS3 InlllelJlllnpul ~W'4-666L 0 S\l!II!U\ 10 Iunow" S41 AQ p"~W!I IOU Sl SJBII!"M pu" S"S"SleJ Lpns 10 IOGlls a41. 'UI8JS4 ISU!"6,, peJnsu! aQ 01 peJlnbeJ SIIJsd s41 01 IUSPIOU! 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Except lor Lessor's gross negligence or willlul misconduct, Lessee shalllndemnily, 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 and/or damages, liens, judgments, penalties, attorneys' and consultants'lees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. II any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend 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 lirst paid any such claim in order to be defended or indemnified. 8.8 Exemption of Lessor from Uability. Lessor shall not be liable lor injury or damage to the person or gDods, 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 from fire, steam, electricity, gas, water or rain, or from the breakage, leakage. obstruction or other delects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures. or from any other cause, whether the said injury or damage results Irom conditions arising upon the Premises or upon other portions 01 the Building, or from other sources or places. Lessor shall not be liable for any damages arising from any act or neglect of any other tenant 01 Lessor nor fro".,.the failure of Lessor to enforce the provisions of 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 therelrom. 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 Irom 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 Installations and Trade Fixtures, which cannot reasonably be repalred in 3 months or less from the date of the damage Of destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days Irom the date of 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 without deduction lor depreciation. (e) uHazardous 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 Owned 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 $S,ODO or less, and. In such event, Lessor shall make any applicable Insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing. n 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 shonage in proceeds as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason ot the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall heve 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. 1 0 days following receipt 01 written notice of such shortage and request therelor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in tull force and effect. If such funds or assurance are not received, lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially rellsonable 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 entitled to reimbursement 01 any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Oamage due to Itood or eanhquake 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 mede available for the repairs if made by either Party. 9.3 Partial Damage. Uninsured Loss. II a Premises Partial Damage that Is not an Insured Loss occurs, unless caused by a negligent or willlul act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in lull force and eIIect, or (iI) terminate this Lease by giving written notice to Lessee within 30 days alter receipt by Lessor 01 knowledge of the occurrence 01 such damage. Such termination shall be effective 60 days lollowing the date 01 such nolice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage without reimbursement Irom Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereol within 30 days alter 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 alter the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified In tha 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. II the damage or destruction was caused by the gross negligence or wiIKul misconduct 01 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 Tenn. If at any time during the last 6 months 01 this Lease there is damage for which the cost to repair exceeds one month's Base Rent, whether or not an Insured Loss. Lessor may terminate this Lease ellective 6D days lollowing the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the Ioregoing, if 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 with any shortage in insurance proceeds (or adequate assurance thereof) need6d to rTlaiu:, thb ,'Ct~airs VII CJ{ beio.a ihi, earlir.r uf (i) t:..& date which iSl ~O days iafter Lessee's receipt 01 Lessor's wrillen notice purporting to terminate this Lease. or (ill 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, LeSSOi sha:l, at Lessor's commerciaiiy reasonable expense. repair such damage as soen as .aasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds 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 of Rent; Lessee's Remedies. (a) Abatement. In the event ol.Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition lor which Lessee is not responsible under this Lease, the Rent payable by Lessee lor 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 01 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. 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(a) Regardless of Lesso~s consent, no assignment or subletting shall: (i) be ellective without 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 constllute a waiver or estoppel of Lesso~s right to exercise its remedies lor Lessee's Default or Breach. (c) Lessor's consent to any assignment or subletting shall not constitute 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 writing, accompanied by information relevant to Lessor'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 and/or required modification of the Premises, if any. Lessee agrees to provide Lessor with such ollaer or additional information and/or 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 have,assumed and agreed to conform and comply with each and every term, covenant, condllion 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 with provisions of an assignment or sublease to which Lessor has specifically consented to In wrlling. (g) Lesso~s consent to any assignment or subletting shall nottransIer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifICally consented to by Lassor in writing. (See Paragraph 39.2) 12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions 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 same 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, rior by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply wllh 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 Leese, 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, notwithstanding any claim from Lessee to the contrary. (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee 10 attorn 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 deposll 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 wllhln 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 10 comply wllh 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 Defaull 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 wilhout providing reasonable assurances to minimize potential vandalism. (b) The failure of Lessee to make any payment of Rent or any Security Deposit 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 fullill 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 tailure by Lessee 10 provide (i) reasonable written evidence of compliance wllh 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 and/or 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 after 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 II shall nol be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to complelion. (e) The OCCurrence of any of the following events: (I) the making of any general arrangement or assignment for the benefit 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 petition filed against Lessee, the same is dismissed within 60 days); (Iii) the appointment of a trustee or receiver to take possession of substantialty 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 wllhln 30 days; provided, however, in the event Ihat 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. (1) The discovery that any financial statamE:r.~ of LC:i3EC ~i ::: ar.y C:..~:-:.r.~::r g:':::-: :: L::3:;- W:1: mc.:criaUy :C.138. (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 wllh the terms of such guaranty, (Iii) a Guaranto~s becoming insolvent or the subject of a bankruptcy filing, (Iv) a Guaranto~s reIusal to honor the guaranty, or (v) a Guarantor's .,J3reach of its guaranty obligation on an anticipalory basis, and Lessee's failure, within 60 days following written notice of any such event, tc;>.provide written alternative assurance or security, which, when coupled wllh the then exlsting resources of Lessee, equals, or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease. 13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but nOI limited 10 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 &vent of a Breech, Lessor may, wllh or without further notice or demand, and without limiting Lessor in the exercise of any righl or remedy which Lessor may have by reason 01 such Breach: Initials ell899-Amerlcan IndulllrlalReaI Estate Association PAGE 9 -.!-J ..""..,.--",--,,,,-.,,- _c!OWIlO;l O~ 3!lVd UOlJapollY lIIqoa I~ I"J.llSnpul UB:lIJlIWY1&6~ 0 _U\ . 'aslI81 S!4110 UORn:laXa a4110 aWR a4111l j:llljja UI SJ"'lOlS allllo llInp&lpS alll 4l!M aoUllp.lOOOIl UI aalll SJa~OlS ^lld 1I1l4S Jossal 'ua41 'ulaJa4 "nBIO uollBl1'Osa UIl 10 UO!lllJado JO luaw&lIJlle M1lalllallM 'pasealOUI sllUal:! aseB I! (p) 10 'aseal slllllO UORlIJldxa alll Jalle 'Jossa, 10 IUesuoo alll 4IIM'seS!WaJd a4110 uOlssassod uI SU!lIwaJ aassa, II (0) 'lOll!Old a41 U!4lJM palllool pull Jossa, ^<I'p&UMO sas!waJd Ja410 JO s8SIWaJd a41 01 1146!, ^ue JOsse, WOlI saJlnboll aaSSall! 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'SU88W InjMBI ^U8 ^q S9S!Wald a4ljO uO\ss9ssod 01146~ S,aasS8l 918U!WJ81 (8) .~. '. 15.2 Assumption of Obligations. Any buyer or transferee of Lesso~s interest in this Lease shall be' deemed to have' assumed Lesso~s obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees 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 of such failure and if Lessor tails 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 and/or between Lessor and Lesso~s Broker for the limited purpose of collecting any brokerage fee 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 with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no one other than said named Brokers is entitled to any commission or finde~s fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' fees reasonably incurred w~h respect thereto. 16. Estoppel Certificates. (a) Each Party (as "Responding Party") shall within 10 days atter written notice from the other Party (the "Reques1lng Party'';, execute, acknowledge and deliver to the Requesting Party a statement in writing In form similar to the then most current "Es1oppel Certificate" form published by the American Industrial Real Estate Association, plus such addmonal Information, confirmation and/or 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 Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (iI) there are no uncured defaults in the Requesting Party's performance, and (Iii) if 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 of the facts contained in said Certificate. (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, 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 Iim~ed to Lessee's financial statements for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 17. Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lesso~s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Except as provided in Paragraph t 5, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or 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 of this Lease, as determined by a court of competent jurisdiction, shall In no way affect the validity of any other provision hereof. 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 nol constitute personal obligations of Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Project, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lesso~s partners, members, directors, otfocers or shareholders, or any of their personal assets for such satisfaction. 21. Time of Essence. Time is of the essence with respect to the performance of 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, rts own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use. nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any defauit or breach hereof by either Party. The liability (including court costs and attomeys' fees) of 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 fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broke~s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 23. Notices. 23. t 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, certilied 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 specified in this Paragraph 23. The addresses noted adjacent to a Party's signature on lhis Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written nolice 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 of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from 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 Gard, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 48 hours atter 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 atter 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 of the Default or Breach of any term, covenant or condition hereof by Lessee, shalt be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of 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 "c: ~y LcS~*. vi :;'C wr.~tiuad Ci~ ::-.G bas~ vt ai. astcPP€l: ~\) anforc.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 therewith, which such statements and/or ...,conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 25. Disclosures Regarding The Nature of 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 from the outset understend what type of ~gency relationship or representation it has with the agent or agents in the transaGlion. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows: (i) Lesso~s Aoent. A Lesso~s agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lesso~s agent or subagent has the following affirmative obligations: To the Lessor' A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and cere in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c, A duty to disclose all facts known to the agent Initials ~ 19Q9-AmPftea:n Industrl.., ~p.al Estate Association PAGE 11 --tJh- FnRM nX]~~=f99 ," \.." &6I6-ilfr WIIO:l SI. I ZI 3~Vd UOIl"I'"'SSV 811'1"3 Inlll""",npUI U"".....WV'6661 CIl SIV1ltul alII 01 sMlt U!lllW 0114fi~ a41 8I\a4 IIB1lS ,ossa, 'UO\l!PpB UI 'sufi!s ....S8..' '0:1.. 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Isau04 10 Nnp lI'q 'sollnp s,lue61! e41jO aouewJojJlld UI aJeo pue sll!~s alqauosl!o' 10 llslOJaxa luallmo'e ..ossa, a41 pua "as..., e41 Ol 'aassa, a41 411'" sfiuneap U! AlleAol pUI! 'Alseu04 'AI~fialul 'a.e:> ISOWIll 10 IIlnp AJa!onPll V :eassa, a41 oJ. 'suollollnqo ah!IIIWJ!IIe llU!MOIIOI 941 se4 aassa, e JOj AIUO llullOe luafill uv ',ossal "41 wO'I lJed U! JO IInl U! .a'll!a 'pa.apuaJ S<IO!^Jas JOI uO!lesuadwo:> 8II!909J ^ew luafie a41 luaw_5B Aq II UlIIIB 'luafil! s)ossa, aYI IOU S! Iualll! a41 'sUOllllnl!s asa41 ul 'AIUO aassa, a41 JOj Iu"lle SII IOe 01 aaJlle ueo lua6e uII luaoll S,,,assa, (lI) 'shoqa 41JOI laG S8nnp a^!lBWJ!,uB 841 9AJOAU! IOU saop 40!4M .o\1Jed ''''llo "41 WOJI paU!Blqo uOllew.olu! lelluaPlluo:> Aue .o\1Jed 'a41!a 01 leahe' 01 pale6nqo IOU S!, Iuafill UV 'sallJed a41 '10 uOll8^,asqo pue UO!lUalle Iuallmp a41 UI41!M JO '01 UMOU~ IOU aJI! 11!41 .o\1JadOJd a4110 Almql!J!sap JO anl"^ a41 fiU!I:>ajj1! ^lIe~alllW < ." , Premises and to unlock all doors in or upon the Premises other than to files, \I3ults 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 lorcible or unlawful entry or delainer 01 the Premises or an eviction. Lessee waives any charges for damages or injuries or interference with Lessee's property or business in .connection therewith. 33. Auctions, Lessee shall not conduct, nor permit 10 be conducted, any auction upon the Premises without Lesso~s prior written consent. Lessor shall not be obligated to exercise any standard of 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 specmcally 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. Lesso~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 constitute 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. Lesso~s actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, 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. Lesso~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 shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lesso~s consent shall 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 lor which consent is being given. In the event that eilher Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish tts reasons in writing and in reasonable detail wtthin 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 01 the guaranty, including the authority of the party signing on Guaranto~s behalf to obligate Guarantor, and in the case 01 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 Cert~icate, or (d) written confirmation that the guaranty is still in effect. 3B. Quiet Possession. SUbject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's pan 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. "?ptlon" shall mean: (a) the right to extend the term of or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first relusal 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 originai 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 therealter 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 Default 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), (Iii) 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 lorce or effect, notwithstanding Lessee's due and timely exercise of the Option, ~, alter 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 0130 days alter such Rent becomes due (wilhout 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 lor the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties. In the event, however, that Lessor should elect to provide security services, then the cost thereol 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 and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not unreasonably interfere with the use 01 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; provjde 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 wilh any rights expressly given herein; and to place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of 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 coltJl!arable quality to th~e containtid within the Prf::tmises. Lessor shall pay the reasonable out of pocket costs that Lesse~ incur,; with rega.rd to SUC:-I 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 of this Lease. (c) Lessee shall not: (i) use a representation (photographic or otherwise) of the Building or Prcject 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. II 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 hereol, the Party against whom the obligation to pay the money is assened 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 01 said Party to institute suillor recovery 01 such. sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay SUGh 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) II either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behall of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease . Intti8ls o 1999-Amerlcan Indumlal Real Estale Association PAGE 13 ~ FORM O~tt" '-'--'-- . on its behalf. Each party shall, within 30 days after request, deliver to the other party satisfactory evidence of such authority. (b) II this lease Is executed by more than one person or entity as "Lessee", each such parson or entity shall be jointly and severally liable hereunder. Ills agreed that anyone of the named lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as iI 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 oller 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. Muhlple 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 wilh 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 Arbhratlon of Disputes. An Addendum requiring the Mediation and/or the Arbilration of all disputes between the> ?ariies andior Srokers arising uul o)f thi~ Lease w is [j is not 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 and/or Common Areas, Ihe 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 REV,IEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREtN, 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 ANO 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 INCLUOE 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: ~:ln Rt=>rn~rninn Executed at: San Bemardino on: By LESSOR: 'Pur. Rnh>rpr; c,pc, T.T,r on: By LESSEE: Ci ty of San Bemardino Telephone: ( Facsimile: ( ) FederallD No. By: '" Tille: By: Name Printed: Title: Address: By: Name Printed: Title: Address: " \ Telephone: ( ) Facsimile: ( ) FederallD No. < Addendum to "31 Attorneys' Fees. Attorney and n~rs of his office, in ij ;:;:; ~:::~~ <=- If - I;;) - (1:+ 96sj:s, salary and expenses of Les~e' s City 'ecfion with that action or proceeding, shall urposes of t.'>is Agreerrent. I J InItI8ls C 1999-Amerlcan Induslr1al Real Eslllte AssociaUon PAGE 14 ~ FORM OFG-l-ll199 LESSOR'S BROKER: LESSEE'S BROKER: Alln: Address: AtIn: Address: Telephone Telephone , . These forms are often modified 10 meet changing requlrementa 01 law and needs of the Industry. Always write or call to mike sure you Ire utilizing the most current form: American Industrlal Rell Estlle Assocllllon, 700 South Flower Street, Suite 600, Los Angeles, CA 90017. (213) .7-11777. OCopyrlghl1999-8y AmeriClln Industrial Real Estate Aaocllllon. , All r1ghla _1YeII. No pert olth_ works may be reproduced In any farm wIthout pennlNlon In writing. '. . Inltll'" o l-.Amerlcen Industrial R_I es_ Aslocllllon PAGE 15 . I ~ FORM ~.:,. , "-'0"";";-" .;..,."'_.,-,....-.:'~'-"_._" 8Il/lt'~-o"O WlIo.I ",",M~I UO"8100ssv --.. IlI8lJ ~npul U1I:lIJlIUIY-iI6lI~ 0 - v - t. .. - N'v'ld 1:1001.:1 38'\7'31 381.:1.:10 a1:l'\7'aN'\7'18 . ., '. ,- ., II . ~.., . ~ ~ ~. . RULES AND REGULATIONS FOR STANDARD OFFICE LEASE t~") Dated: By and Between GENERAL RULES ,. 'assee shall not suffer or permit the obstruction of any Common Areas, including driveways, walkways and stairways. 2. Lessor reserves 1I1e rlg~ to refuse access to any persons Lessor In gOOd faith Judges to be a 1I1reat to 1I1e safety and reputation ollhe Project and its occupants. . 3. Lessee shall not make or permit any noise or odors that annoy or interfere with other lessees or persons having business within the Project. 4. Lessee shell 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. Lessee shall not make. suffer or permit litter except in appropriate receptacles tor that purpose. 6. Lessee shall not alter 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 utilities. No foreign substances of any kind are to be inserted therein. e. 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 Building that causes excessive vibration or floor loading in any part of the Project. 1D. Furniture, signnicant freight and equipment shall be moved into or out of the building only with 1I1e Lessor's knowledge and consent, and subject to such reasonable limitations, techniques and timing, as may be designated by Lessor. Lessee shall be responsible for any damage to the Office Building Project arising from any such activity. 11, Lessee shall not employ any service or contractor for services or work to be performed in the Building, except as approved by Lessor. 12. Lessor reserves 1I1e right to close and loci< the Building on Saturdays, Sundays and Building Holidays, and on 01l1er days between 1I1e hours of P.M, and A.M. of 1I1e following day. If Lessee uses 1I1e Premises during such periods, Lessee shall be responsible for securely locl<ing any doors ~ may have opened for entry. 13. Lessee shall return all keys at the termination of its tenancy and shall be responsible tor the cost of replacing any keys 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 1I1e roof of 1I1e Building. 16. Lessee shall not auffer 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. 17. Lessee shall not use any method of heating or air conditioning other than as provk:led by Lessor. 18. Lessee shall not install, maintain or operate any vending machines upon the Premises without Lessors written consent 19. The Premises shall not be used for lodging or manufacturing, cooking or food preparation. 20. Lessee shall comply with all safety, fire protection and evacuation regulations established by Lessor or any applicable govemmental agency. 21. Lessor reserves the right to waive anyone of these rules or regulations, andlor as to any particular Lessee, and any such waiver shall not constitute a waiver of any other rule or regulation or any subsequent application thereot to such Lessee. 22. Lessee assumes ell 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 Vehides." Vehictes other than Permitted 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 Lessee 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 activities. 3. Parking 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 parking privileges. Lessee will pay such replacement charge as is reasonably established by Lessor for 1I1e loss of such devices. 4. Lessor reserves 1I1e right to refuse the sale of mon1l11y identification devices fo any person or enllty that willfully rafuses to comply with 1I1e applicable rules. regulations. laws andlor agreements. 5. Lessor reserves the right to relocate all or a part of parking spaces from ftoor to floor, within one ftoor. and/or to reasonabty adjacent offsite locatlon(s), and to reasonably allocate them between compact and standard size spacas, as long as 1I1e 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 vehicle parking. 7. Unless otherwise instructed, fN8ry person using the parking area ls required to park and lock his own vehlde. Lessor will not be responsible for any damage to vehicles, injury to persons or loss of property, all of which risks are assumed by the party using the parking area. 8. Validation, it established, will be permissible only by such method or methods as Lessor and/or itS licensee may establish at rates generally applicable to vls"o.. penong, 9. The maintenance, washing. waxing or cleaning of vehicles In the parking structure or Common Areas is prohibited. 10. LesseE! shall be fesponsltie tor seeing that an of its employees, agents and invitees compty with the applicable parking rules, regulations. laws and agreements. 11. Lessor reserves lhe right to modify these rules and/or adopt such other reasonable and non-dlscrimlnatory rules and regulations ~s It may deem necessary for lhe proper ope<ation of the parking area. 12. Such parking use as Is herein provided is intended meraly as a license only and no bailment is intended or shall be created hereby. ^ Initials o 1999-Amerlcan Indusb1al Resl Estate Association PAGE 1 01 1 ~( FORM OFG-1-91l19