HomeMy WebLinkAbout1996-040
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RESOLUTION NO. 96-40
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LEASE BETWEEN
THE SAN BERNARDINO EMPLOYMENT AND TRAINING AGENCY AND ARROW SIX
INVESTMENT COMPANY.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1.
The Mayor is hereby authorized and directed to
execute, on behalf of the San Bernardino Employment and Training
Agency, a lease with Arrow Six Investment Company which lease is
attached hereto as Exhibit "1" and is incorporated herein by
reference as though fully set forth at length.
SECTION 2.
The authorization to execute the above referenced
agreement is rescinded if the parties to the agreement fail to execute
same within sixty (60) days of the passage of this Resolution.
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RES 96-40
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LEASE BETWEEN
THE SAN BERNARDINO EMPLOYMENT AND TRAINING AGENCY AND ARROW SIX
INVESTMENT COMPANY
I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Mayor and Common Council of the City of San Bernardino at a
regular meeting thereof, held on the 5th day of
February 1996, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
NEGRETE x
CURLIN x
HERNANDEZ x
OBERHELMAN x
DEVLIN x
POPE-LUDLAM x
MILLER x
()^J' (it" '-./.
'J-\.. 'L~_L. ._____-L~.et_..f 7c
Citj", Cl erk
The foregoing resolution is hereby approved this 711.
day
of February
, 1996.
~?v\---rIttAA~
Tom Minor, Mayor
City of San Bernardino
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
By: ~I
/
(/
/)
1~M>'Ti",
2
,lffiS Q6~O
~. ,':'.,
LEASE
BETWEEN
ARROW SIX INVESTMENT CO.
AND
CITY OF SAN BERNARDINO EMPLOYMENT AND TRAINING AGENCY
1!99900-JKM/ARROWSIX/SBETA/SBETALSE.OOl
EXHIBIT "I"
. RES 9.6.-40
TABLE OF CONTENTS
Section
1 Term
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23
Rent
Use of Property
Insurance
Damage or Destruction
Taxes and Assessments
Assignments of Lease
Condition of Property
Personal Property - Fixtures
Maintenance of Property
Liens
Utilities and Services
Bankruptcy .
Indemnification
Damage to Tenant's Property
Defaults
Remedy on Default
Subordination
Estoppel Certificate
Holding Over
Surrender
Landlord's Right of Entry
Eminent Domain
Page
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i
l!ES 96,-40
Section Page
24 Merger 14
25 Performance by Tenant 14
26 Mortgagee Protection 15
27 Definition of Landlord 15
28 Hazardous Waste 15
29 California Law to Apply 16
30 Disputes 17
31 Attorneys' Fees 17
32 Integration 17
33 Counterparts 17
34 Notices 17
35 Tenant Improvements; Parking 18
36 Alterations or Improvements 18
37 Miscellaneous 19
ii
. RES 9'6-40
LEASE AGREEMENT
This Lease Agreement ("Lease") is made by and between Arrow-
Six Investment Co., a California general partnership ("Landlord")
and City of San Bernardino Employment and Training Agency
("Tenant"), with reference to the following:
A. Landlord is the owner of the real property, and the
building and improvements located thereon, commonly known as
599 North Arrowhead Avenue, San Bernardino CA ("the
"Property"). A map of the Property leased pursuant to this
Lease is attached hereto as Exhibit "A" and incorporated
herein by this reference;
B. Landlord has agreed to let the Property to Tenant
and Tenant has agreed to hire the Property from Landlord.
NOW THEREFORE, in consideration of the covenants and
agreements herein contained, and other good and valuable
consideration, the receipt and adequacy which is hereby
acknowledged, Landlord hereby lets the Property to Tenant and
Tenant hereby hires the Property from Landlord subj ect to the
following terms and conditions:
1. Term.
1.1 Subj ect to the provisions of section 1.2 hereof, the
term of this Lease ("Original Term") shall commence on March 1,
1996 ("Commencement Date") and expire on February 28, 2001.
1.2 Notwithstanding the term set forth in section 1.1,
Tenant shall be entitled to terminate this Lease at any time during
the term of this Lease upon satisfaction of both of the following
conditions:
A. A majority of Tenant's funding sources are terminated.
In order to prove such funding termination, Tenant shall
provide to Landlord the following: (i) a copy of Tenant's
operating budget for the one year period prior to the date
Landlord is served with the Tenant Notice given under
paragraph B of this section 1.2 along with a detailed list of
the funding sources that have been terminated;
B. After a majority of Tenant's funding sources are
terminated, Tenant gives to Landlord written notice ("Tenant
Notice") of Tenant's intention to terminate the Lease which
Tenant Notice shall be delivered to Landlord no less than
ninety days in advance of the date of termination of the Lease
set forth in the Tenant Notice.
1.3 In the event Tenant terminates the Lease pursuant to
section 1.2 prior to February 14, 2001, Tenant shall pay to
Landlord a lease termination payment equal to the following:
2!99900/JKM/ARROWSIX/MSHLEAS.OOl
1
· RES 96-40
A. The unamortized portion of the lease commission paid in
connection with the execution of this Lease. Such amount
shall be calculated as follows: divide the full amount of the
Lease commission ($29,248.00) by 60 and multiply such amount
by the number of remaining months of the initial lease term
following the effective date of the termination of the Lease.
B. A prorata portion of any Rent Credit provided to Tenant
under section 2.4 of this Lease. Such amount shall be
calculated as follows: divide the full amount of the Rent
Credit by 60 and multiply such amount by the number of
remaining months of the initial lease term following the
effective date of the termination of the Lease.
1.4 Tenant is given the option to extend the term of
this Lease for one additional term of five (5) years ("Extended
Term") upon the same terms and conditions as those set forth for
the Original Term (except rent which shall be determined in
accordance with section 2.7 hereof), by giving written notice of
exercise of the option to Landlord at least six (6) months but not
more than one (1) year before the expiration of the then current
term of the Lease. Provided that, if Tenant is in default on the
date of giving such notice, at Landlord's sole and exclusive
option, the notice shall be totally ineffective, or if Tenant is in
default on the date the Extended Term is to commence, the Extended
Term shall not commence and this Lease shall expire at the end of
the then current term.
2. Rent.
2.1 DeEini tions. As used herein, a "Rent Year" shall be
a twelve (12) month period commencing upon the Commencement Date
(of the Original Term as defined in section 1.1 above) and each
anniversary thereof.
2.2 Rent. Subject to adjustment as provided below,
Tenant agrees to pay to Landlord as annual rent during each Rent
Year of this Lease the sum of One Hundred and Eight Thousand
Dollars and NO/100 ($108,000.00), payable in twelve (12) equal
monthly installments of Nine Thousand Dollars and NO/lOa
($9,000.00) in advance on the first day of each and every calendar
month hereof. Rent in the amount of $2,500.00 for the partial
month of February 15, 1995 through February 28, 1995 (calculated at
one-half month's rent [$4,500.00] less one-half month's Rent Credit
[$2,000.00] pursuant to section 2.4) shall be payable upon
execution of this Lease. All subsequent rent payments shall be due
on the first day of each month commencing on March 1, 1996.
2.3 Annual Fixed Adjustment. At the beginning of the
second through the fifth Rent Years of the Original Term, the
amount of Tenant's annual rent hereunder shall be increased in an
amount equal to the four percent (4%) of the rental rate for the
preceding Rent Year.
building
2.4 Rent Credit.
located at 646
Tenant is currently the tenant of a
North Sierra Way, San Bernardino,
2/99900/JKM/ARROWSIX!MSHLEAS.OOl
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RES 96-40
California (herein "Prior Location"). Tenant's lease on the Prior
Location terminates on September 30, 1996. As an inducement to
cause Tenant to enter into this Lease, Landlord has agreed to
credit (herein the "Rent Credit") against the monthly lease payment
due under this Lease the amount of $4,000.00 per month for the
period from the date of commencement of this Lease through
September 3 0, 1996; provided, however, that if Tenant's rent
obligations relating to the Prior Location cease (for any reason
whatsoever) prior to September 30, 1996, Landlord's obligation to
give a Rent Credit shall cease on the same date. Additionally, if
Tenant's rent obligations relating to the Prior Location are
decreased prior to September 30, 1996, then the Rent Credit shall
be reduced in an equal amount. The sole purpose of the rent
concession is to offset by $4,000.00 per month Tenant's rent
obligation in connection with the Prior Location. The maximum Rent
Credit under this section 2.4 shall be $30,000.00. At the request
of Landlord, Tenant shall cooperate in negotiating and executing a
lease termination agreement with the lessor of the Prior Location.
Whether such an agreement will be agreed upon shall be within the
sole discretion of Landlord. Any payment in consideration for
terminating the Prior Location lease shall be paid by Landlord, but
shall be an offset against the Rent Credit. Any savings in rent on
the Prior Location attributable to execution of a lease termination
agreement shall accrue to the benefit of Landlord as a decrease in
the Rent Credit. Immediately upon execution of this Lease, Tenant
shall list the Prior Location for lease with a broker mutually
agreed upon by Landlord and Tenant. If the Prior Location is
leased during the remaining term, any rent savings will accrue to
the benefit of Landlord and will reduce the Rent Credit.
2.5 Addi tional Rent. Any amounts payable by Tenant
hereunder in addition to the rent payable in accordance with
sections 2.3 shall be deemed additional rent.
2.6 Security Deposit. Concurrently with execution of
this Lease, Tenant shall pay to Landlord the sum of Four Thousand
Five Hundred Dollars and No/100 ($4,500.00) which shall be held by
Landlord as a "Security Deposit". Such funds may be commingled by
Landlord in Landlord's general accounts and will bear no interest.
The Security Deposit will be held by Landlord to secure Tenant's
obligations hereunder and the payment of any damages sustained by
Landlord from Tenant's breach of such obligations. Whenever, and
as often as Tenant shall be in default in the payment to Landlord
of any amounts, whether before or after termination of this Lease,
Landlord may, but shall not be obligated to, apply said Security
Deposit, or as much thereof as is necessary to cure the default.
The application by Landlord at anytime prior to the termination of
this Lease of the Security Deposit, or any portion thereof, to cure
any default of Tenant shall constitute a default of Tenant and
Tenant shall forthwith pay to Landlord the amount of such Security
Deposit so applied. Upon termination or expiration of this Lease
and after discharge of Tenant's obligations, any part of the
Security Deposit then remaining shall be paid to Tenant.
2.7 Extended Term Re-Valuation of Rent. If Tenant shall
exercise its option to extend the Term of this Lease, annual rent
2/99900/JKM!ARROWSIX/MSHLEAS.OOl
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RES 96-40
for the sixth Rent Year shall be determined by the following
process:
A. Immediately upon Tenant's exercise of the
option to extend the term of this Lease, Landlord and Tenant shall
enter into negotiations to determine the then fair market rental
value of the Property. If Landlord and Tenant agree upon the then
fair market rental value of the Property, the annual rent for the
sixth Rent Year shall be such agreed upon rental amount.
B. If Landlord and Tenant cannot, after reasonable
effort, within sixty (60) days of the date on which Tenant
exercises its option to extend this Lease, agree upon the fair
market rental value of the Property, Landlord and Tenant shall
engage an appraiser to determine the fair market rental value of
the Property. In determining fair market value, such appraiser
shall take into consideration the highest and best use of the
Property and any other conditions or factors such appraiser deems
necessary to accurately determine fair market value of the
Property; provided, however, the appraiser shall not take into
account the terms and conditions of this Lease. Said appraiser
shall be a member of the American Institute of Real Estate
Appraisers, or if it is no longer in existence, a successor
organization of similar reputation or status.
C. I f Landlord and Tenant cannot, after reasonable
effort, within ninety (90) days of the date on which Tenant
exercises its option to extend this Lease agree on an appraiser,
the President or Chief Executive Officer of the American Institute
of Real Estate Appraisers Chapter or a successor organization
having jurisdiction over the Property, will present to Landlord and
Tenant a list of five names of appraisers and Landlord and Tenant
shall agree on one of those appraisers. If Landlord and Tenant
shall not agree on one of the five appraisers within twenty (20)
days after submission of the list, the said President or Chief
Executive Officer of the American Institute of Real Estate
Appraisers shall choose an appraiser who shall determine the fair
market rental value of the Property. If, for any reason, the
procedure set forth above does not result in the selection of an
appraiser, either party may petition the Superior Court of San
Bernardino to appoint an appraiser who satisfies the requirements
of this Section. Landlord and Tenant shall pay one-half of all
costs for the appraisal of the Property pursuant to this Section
2 . 7 .
D. Notwithstanding the results of any appraisal of
the Property or anything else herein to the contrary, in no event
shall the annual rent for the sixth Rent Year be less than the
annual rent in effect for the fifth Rent Year.
E. Commencing on the seventh Rent Year, and each
Rent Year thereafter, including the Rent Years of any additional
Extended Term, the annual rent shall be adjusted in accordance with
the provisions of Section 2.3 above.
2/99900/JKM!ARRQWSIX/MSHLEAS.OOl
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RES , 96-40
2.8 Interest and Late Charges. If Tenant fails to pay
within fifteen (15) days from the date it is due any rent or other
amounts or charges which Tenant is obligated to pay under the terms
of this Lease, the unpaid amounts shall bear interest at the
maximum rate then allowed by law commencing on the eleventh day
after the due date. Tenant acknowledges that the late payment of
any rent will cause Landlord to lose the use of that money and
incur costs and expenses not contemplated under this Lease,
including without limitation, administrative and collection costs
and processing and accounting expenses, the exact amount of which
is extremely difficult to ascertain. Therefore, in addition to
interest, if any such rent is not received by Landlord within ~~~T~~N
I~ days from th~-@re it iS1~ue, Tenant shall pay Landlord a late
charge equal to &eH percent ~ of such installment. Landlord
and Tenant agree that this late charge represents a reasonable
estimate of such costs and expenses and is fair compensation to
Landlord for the loss suffered from such nonpayment by Tenant.
Acceptance of any interest or late charge shall not constitute a
waiver of Tenant's default with respect to such nonpayment by
Tenant no prevent Landlord from exercising any other rights 0
remedies available to Landlord under this Lease.
3 . Use of Property.
3.1 Use Restriction. Tenant covenants and agrees t
use and occupy the Property solely for the purposes set forth in
this section 3 and for no other purpose without the prior written
consent of Landlord. Tenant shall use the Property for general
offices for employment and training services. Loitering (by
clients, guests or invitees of Tenant) outside the exterior doors
of the building located on the Property shall not be permitted.
3.2 Disruption of Adjacent Tenant. Tenant acknowledges
that the Property is part of a larger parcel that includes the
building leased by Tenant pursuant to this lease and an adjacent
approximate 5,000 square foot office building (the "595 Building").
Neither Tenant, nor its guests, employees, clients or invitees
shall engage in any activity that is materially disruptive of the
use of the 595 Building. The provisions of this section 3.2 are
both covenants by Tenant and conditions to Landlord's obligations
under this lease.
3.3 General Restrictions. Tenant shall not do or
permit to be done anything which will invalidate or increase the
cost of any fire, extended coverage or any other insurance policy
covering the Property and shall comply with all rules, orders,
regulations and requirements of the Pacific Fire Rating Bureau or
any other organization performing a similar function. Tenant shall
not allow the Property to be used for any unlawful purpose, nor
shall Tenant cause, maintain or permit any nuisance in, on or about
the Property.
4 . Insurance.
4.1 Tenant at its sole cost and expense, but for the
mutual benefit of Landlord and Tenant as named insureds, shall
2!99900/JKM/ARROWSIX/MSHLEAS.OOl
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RES, 96-40
maintain comprehensive general liability insurance on an
"occurrence basis" against claims for "personal injury", including
without limitation, bodily injury, death or property damage,
occurring upon, in or about the Property and on, in or about the
adjoining sidewalks, streets, and passageways, such insurance to
afford immediate protection, at the time of the inception of this
Lease, and at all times during the term hereof, to a combined
single limit of $1,000,000.00. Such insurance shall also include
coverage against liability for bodily injury or property damage
arising out of the use, by or on behalf of Tenant, or any other
person or organization, or any owned, non-owned, leased or hired
automotive equipment in the conduct of any and all operations
permi t ted under this Lease. Notwi thstanding the above, Tenant
shall be entitled to satisfy the insurance requirements of this
section 4.1 through self-insurance, provided that the following
requirements are satisfied:
A. City will self insure (without pooling of risks) for
losses up to $1,000,000. AD, aFlel nill a81f iR13Ulf0 fl?8m lessE:s flfsm
02,888,888.88 te C2S,888,888.88 tRY6U~R playtieil9ati6I... iI.. a
~a"19rRmgnt~1 iit=ltity PQoliIJ.'] arratl']ellu.~. City will deliver
Landlord a certificate of self insurance.
B. In the event of the bankruptcy of Tenant, Tenan
shall within ten (10) days of filing provide to Landlord proof of
third party insurance in accordance with this section 4:
C. In the event of self insurance, Tenant shall
indemnify Landlord (in accordance with the provisions of section 14
hereof) against all claims, actions, proceedings, liabilities,
costs or expenses arising from Tenant's decision to self insure;
provided, however, Tenant shall stand in the same position as an
insurance company and shall have no rights, claims or defenses that
would be denied to an insurance company under a standard liability
insurance policy issued in California.
4.2 The insurance required to be carried by Tenant
hereunder shall be issued by an insurer of recognized
responsibility which is authorized to write insurance in the State
of California. Upon the execution of this Lease and thereafter not
less than fifteen (15) days prior to the expiration of any policy
of insurance required to be carried hereunder, Tenant shall furnish
to Landlord evidence reasonably satisfactory to Landlord of the
payment of premiums and issuance of a policy of liability insurance
in compliance with the provisions of this section.
4.3 The policy of insurance required hereunder shall
contain an agreement by the insurer that such policy will not be
canceled without at least thirty (30) days prior written notice by
certified mail to Landlord.
5. Damage or Destruction.
5.1 Casual ty. Should the Property, or any part thereof,
be damaged (which term includes complete as well as partial
destruction) by fire or by any other casualty, Landlord shall, at
2/99900!JKM/ARROWSIX/MSHLEAS.OOl
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RES 96-40
Landlord's option to be exercised within sixty (60) days of the
date of such damage, either (i) undertake to repair such damage as
soon as reasonably practicable in view of the extent of such damage
or destruction, in which event this Lease shall continue in full
force and effect, except that Tenant shall be entitled to the
abatement of rent and provided in section 5.2 below; or (ii)
terminate this Lease by delivering written notice to Tenant of
Landlord's election to so terminate.
5.2 Rent Abatement. If this Lease is terminated as
provided in this section 5, rent shall be prorated as of the time
of the damage and any overpayment refunded. If the damage will be
repaired, this Lease shall continue and rent shall be abated during
the period between the happening of the damage and completion of
the repair proportionate to the extent such damage or destruction
interferes with Tenant's use of the Property. In no circumstances
shall Landlord be liable to Tenant for any lost profits or damage
to Tenant's property caused by the occurrence of said damage or
destruction. Tenant hereby waives the provisions of Sections
1932(2) and 1933(4) of the California Civil Code and agrees that
upon any damage or destruction to the Property, the provisions of
this section shall be used to determine whether this Lease shall be
terminated or remain in effect.
6. Taxes and Assessments.
Landlord shall pay all general and special real property
taxes and assessments levied against the Property. Tenant shall
pay, before the same become delinquent, all taxes levied or
assessed against Tenant's personal property or trade fixtures
located in, upon, or about the Property.
7. Assignments of Lease.
Tenant shall not, either voluntarily or by operation of
law, assign, sell, encumber, hypothecate, pledge, or otherwise
transfer all or any part of Tenant's leasehold estate hereunder
without the prior written consent of Landlord, which consent shall
not be unreasonably withheld.
8. Condition of Property.
Tenant has inspected the Property and is familiar with
the Property and all improvements located thereon, and based upon
such familiarity with the Property, Tenant has determined the
Property is suitable for Tenant's purposes. Tenant further
acknowledges that neither Landlord nor any agent of Landlord has
made any representation or warranty with respect to the Property or
the building thereon or with respect to the suitability of either
for Tenant's purposes.
9. Personal Property - Fixtures.
9.1 All articles of personal property and all business
and trade fixtures, machinery and equipment, furniture and movable
partitions owned by Tenant or installed by Tenant at Tenant's
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Illil) ~O-4U
expense on the Property shall be and remain the property of Tenant
and may be removed by Tenant upon the expiration or termination of
this Lease. Tenant shall repair any and all damage caused to the
Property by any removal of Tenant's personal property or fixtures.
10. Maintenance of Property.
10.1 During the Term of this Lease, Landlord shall, at
Landlord's sole cost and expense, maintain and repair the walls,
foundation, roof, structural components of the Property, electrical
wiring or systems, plumbing, pipes, heating and air conditioning
systems, and any other part of the Property not required to be
maintain or repaired by Tenant as set forth below.
10.2 During the Term of this Lease, Tenant shall, at
Tenant's sole cost and expense, maintain and repair the interior
surface of the walls of the Property, the floor, sinks, toilets and
other plumbing fixtures not located inside of the walls or floor of
the Property, and shall keep the Property in a neat and attractive
condition and appearance. Tenant shall be responsible for minor
clogged drains and miscellaneous repairs up to $100.00 per
occurrence; provided however, that Tenant's obligation to make
miscellaneous repairs shall not exceed $1,200.00 in the aggregate
per year. In addition to the miscellaneous repairs referred to in
the preceding sentence, Tenant shall pay glass repair costs for the
first $1,000.00 per year. Glass repair costs in excess of
$1,000.00 but not greater than $4,000.00 per year shall be paid
one-half by Tenant and one-half by Landlord. Any glass repair
costs in excess of $4,000.00 shall be paid by Landlord. In
determining the cost of any glass repair under this section, only
costs not paid or reimbursed under a policy of insurance covering
the Property shall be taken into account.
11. Liens.
Tenant shall not permit any mechanic's, materialmen's or
other liens to be filed against the Property nor against the
Tenant's leasehold interest in the Property. Landlord shall have
the right at all reasonable times to post and keep posted on the
Property any notices which Landlord deems necessary for protection
from such liens. If any such liens are filed, Landlord may,
without waiving Landlord's rights and remedies based on such breach
of Tenant and without releasing Tenant from any of Tenant's
obligations, cause such liens to be released by any means Landlord
shall deem proper, including payment in satisfaction of the claim
giving rise to such lien. Tenant shall pay to Landlord at once,
upon notice by Landlord, any sum paid by Landlord to remove such
liens, together with interest at the legal rate.
12. Utilities and Services.
Landlord shall pay, before the same become delinquent,
all utilities and services to the Property including, without
limitation, electricity, gas, water, rubbish disposal, janitorial
and other similar utilities and services. All trash, garbage, or
rubbish shall be covered at all times, shall be kept in a neat,
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RES 96,-40
sightly and orderly fashion, screened from public view, in such a
manner as not to attract insects, mice, rats, or other vermin, and
in such a manner as to cause no offensive odors. Tenant shall pay
all costs associated with the alarm system located at the Property,
including any monthly charges, the costs of any repair or
modification to the alarm system and any police charges for false
alarms. At the request of Tenant, Landlord will terminate the
current contract with the company providing alarm services to the
Property, and Tenant shall be entitled to select its own alarm
company and negotiate such provisions of an alarm contract as
Tenant deems prudent.
13. Bankruptcy.
If Tenant becomes insolvent, as that term is defined in
Section 1201 of the California Commercial Code, or is unable to pay
its obligations in the ordinary course of its business, or if
Tenant shall file a petition in bankruptcy under any provision of
any federal or state bankruptcy or insolvency laws as then in
effect, or if Tenant be adjudicated a bankrupt in involuntary
bankruptcy proceedings and such adjudication shall not have been
vacated within thirty (30) days from the date thereof, or if a
receiver or trustee be appointed of Tenant's property and the order
appointing such receiver or trustee not be set aside or vacated
within thirty (30) days after the entry thereof, or if the Tenant
shall assign Tenant's estate or effects for the benefit of
creditors, or if this Lease shall otherwise by operation of law
devolve or pass to any person or persons other than Tenant, then
and in any such event Landlord may if Landlord so elects, with or
without notice of such elections and with or without entry or
action by Landlord, to forthwith terminate this Lease
notwithstanding any other provisions of this Lease. Landlord, in
addition to any and all rights and remedies allowed by law or
equity, shall upon such termination be entitled to recover damages
in the amount provided in section 17 below and neither Tenant nor
any person claiming through or under Tenant or by virtue of any
statute or order of any court shall be entitled to possession of
the Property but shall forthwith quit and surrender the Property to
Landlord. Nothing herein contained shall limit or prejudice the
right of Landlord to prove and obtain as damages by reason of any
such termination in an amount equal to the maximum allowed by any
statute or rule of law in effect at the time when, and governing
the proceedings in which, such damages are to be proved, whether or
not such amount be greater, equal to, or less than the amount of
damages recoverable under the provisions of this section.
14. Indemnification.
Tenant shall indemnify, defend (with counsel reasonable
acceptable to Landlord), and hold harmless Landlord against and
from any and all claims, actions, proceedings, liabilities, costs
or expenses (collectively "Claims") arising out of or related to
the Property, or Tenant's use thereof, including without
limitation, any Claims arising from any activity, work, or thing
done, permitted or suffered by Tenant in or about the Property, and
shall further indemnify and hold harmless Landlord against and from
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9
. RES ~6-4Q
any and all Claims arising from any breach or default in the
performance of any obligation on Tenant's part to be performed
under the terms of this Lease, or arising from any act, neglect,
fault or omission of Tenant, or of Tenant's agents or employees.
Notwithstanding anything herein to the contrary, Tenant
shall not be required to indemnify or defend Landlord from any
Claims resulting from the intentional or grossly negligent act of
Landlord. The provisions of this section shall not apply to any
Claims related to or arising out of hazardous waste on the
Property, all of which shall be governed by the provisions of
section 28 below.
15. Damage to Tenant's Property.
Landlord and Landlord's agents shall not be liable for
any damage to property nor for any injury or damage to persons or
property or Tenant's business resulting from fire, explosion,
falling plaster, steam, gas, electricity, water or rain which may
leak from any part of the Property or from the pipes, appliances or
plumbing works therein or from the roof, street or sub-surface or
from any other place or resulting from dampness or any other cause
whatsoever except that which is caused by Landlord's intentional
act or omission. Landlord or Landlord's agents shall not be liable
for interference with the light or other incorporeal hereditaments.
16. Defaults.
The occurrence of anyone or more of the following events
shall constitute a default hereunder by Tenant:
A. Abandonment of the Property by Tenant. Abandonment
is herein defined to include, but is not limited to, any absence by
Tenant from the Property for ten (10) days or longer while in
material default of any provision of this Lease; provided,
however, that nonuse of the Property during the continuance of any
furlough of Tenant's employees shall not be treated as an
"abandonment" under this Lease,
B. The failure by Tenant to make any payment of rent or
additional rent or any other payment required to be made by Tenant
hereunder within ten (10) days of the date the same shall be due.
If rent or additional rent is paid after such ten day grace period,
Tenant shall pay to Landlord a late penalty fee in the amount of 6%
of the delinquent rent and additional rent. Tenant acknowledges
that such amount is a reasonable estimate of Landlord's
administrative costs and loss of interest incurred because of the
delinquent payment. In the event of the filing of an unlawful
detainer action by Landlord, Tenant shall have such rights to cure
the default in accordance with California law; provided, however,
this provision shall not be interpreted as expanding or altering
Tenant's right to cure under such applicable law other than the
granting of the ten day grace period set forth herein.
C. (i) The making by Tenant of any general assignment
for the benefit of creditors; (ii) the filing by or against Tenant
2/99900/JKM/ARROWSIX/MSHLEAS.OOl
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RES. 96-'-40 .
of a petition to have Tenant adjudged a bankrupt or a petition for
reorganization or arrangement under any law relating to bankruptcy
(unless, in the case of a petition filed against Tenant, the same
is dismissed within thirty (30) days); (iii) the appointment of a
trustee or receiver to take possession of substantially all of
Tenant's assets located at the Property or of Tenant's interest in
this Lease, where possession is not restored to Tenant within
thirty (30) days; or (iv) the attachment, execution or other
judicial seizure of substantially all of Tenant's assets located at
the Property or of Tenant's interest in this Lease where such
seizure is not discharged within thirty (30) days.
D. The failure by Tenant to observe or perform any of
the express or implied covenants or provisions of this Lease to be
observed or performed by Tenant, other than as specified in
section 16A, B, or C above, where such failure shall continue for
a period of fifteen (15) days after written notice thereof from
Landlord to Tenant; provided, however, that any such notice shall
be in lieu of, and not in addition to, any notice required under
California Code of Civil Procedure Section 1161; provided, further,
that if the nature of Tenant's default is such that more than
fifteen (15) days are reasonably required for its cure, then Tenant
shall not be deemed to be in default if Tenant shall commence such
cure within such fifteen-day period and thereafter diligently
prosecute such cure to completion, which completion shall occur not
later than ninety (90) days from the date of such notice from
Landlord.
17. Remedy on Default.
17.1 In the event of any default hereunder by Tenant, in
addition to any other remedies available to Landlord at law or in
equity, Landlord shall have the immediate option to terminate this
Lease and all rights of Tenant hereunder. In the event that
Landlord shall elect to so terminate this Lease then Landlord may
recover from Tenant:
A. the worth at the time of award of any unpaid
rent which had been earned at the time of such termination;
plus
B. the worth at the time of award of the amount by
which the unpaid rent which would have been earned after
termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably
avoided; plus
C. the worth at the time of award of the amount by
which the unpaid rent for the balance of the Term after the
time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided; plus
D. any other amount necessary to compensate
Landlord for all the detriment proximately caused by Tenant's
failure to perform Tenant's obligations under this Lease or
2!99900/JKM/ARROWSIX/MSHLEAS.OOl
11
RES 96-:-40
which in the ordinary course of things would be likely to
result therefrom.
17.2 As used in section l7.1A and B above, the "worth at
the time of award" is computed by allowing interest at the maximum
rate permitted by law per annum. As used in section l7.1C above,
the "worth at the time of award" is computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%).
17.3 In the event of any material default hereunder by
Tenant, Landlord shall also have the right, with or without
terminating this Lease, to re-enter the Property and remove all
persons and property from the Property; such property may be
removed and stored in a public warehouse or elsewhere at the cost
of and for the account of Tenant. No re-entry or taking possession
of the Property by Landlord pursuant to this section 17.3 shall be
construed as an election to terminate this Lease unless a written
notice of such intention be given to Tenant or unless the
termination thereof be decreed by a court of competent
jurisdiction.
17.4 All rights, options and remedies of Landlord
contained in this Lease shall be construed and held to be
cumulative, and no one of them shall be exclusive of the other, and
Landlord shall have the right to pursue anyone or all of such
remedies or any other remedy or relief which may be provided by
law, whether or not stated in this Lease. No waiver of any default
of Tenant hereunder shall be implied from any acceptance by
Landlord of any rent or other payments due hereunder or any
omission by Landlord to take any such action on account of such
default if such default persists or is repeated, and no express
waiver shall affect defaults other than as specified in such
waiver. The consent or approval of Landlord to or of any act by
Tenant requiring Landlord's consent or approval shall not be deemed
to waive or render unnecessary Landlord's consent or approval to or
of any subsequent similar acts by Tenant.
17.5 Landlord has the remedy described in California
Civil Code Section 1951.4 (lessor may continue lease in effect
after lessee's breach and abandonment and recover rent as it
becomes due, if lessee has right to sublet or assign, subject only
to reasonable limitations)
18. Subordination.
Without the necessity of any additional document being
executed by Tenant, at the election of Landlord or any beneficiary
of a deed of trust or any mortgagee with a lien on the Property,
this Lease shall be subordinate to the lien of any such mortgage or
deed of trust which may now exist or hereafter be executed by
Landlord; provided, however, that in the event of any mortgage or
deed of trust executed after the date of this Lease, the
beneficiary or mortgagee thereunder shall provide to Tenant a non-
disturbance agreement providing that Tenant's right to possession
of the Property will not be disturbed so long as Tenant is not in
2!99900/JKM!ARROWSIX/MSHLEAS.OOl
12
RES 96-40
default of any of its obligations hereunder. Within ten (10) days
of the request of Landlord, Tenant shall deliver to Landlord any
additional documents evidencing the subordination of this Lease to
the lien of any such mortgage or deed of trust.
19. Estoppel Certificate.
Within ten (10) days of the written request of Landlord,
Tenant shall execute and deliver to Landlord a statement
certifying: (i) the commencement date of this Lease; (ii) the fact
that this Lease is unmodified and in full force and effect or, if
there have been modifications hereto, that this Lease is in full
force and effect, as modified, and stating the date and nature of
such modifications; (iii) the date to which the rent and other sums
payable under this Lease have been paid; (iv) the fact that there
are no current defaults under this Lease by either Landlord or
Tenant except as specified in Tenants statement; and (v) such other
matters as requested by Landlord. Landlord and Tenant intend that
any statement delivered pursuant to this section 19 may be relied
upon by any mortgagee, beneficiary, purchaser or prospective
purchaser of the Property or any interest therein.
20. Holding Over.
If Tenant holds over after the expiration or earlier
termination of the Term hereof without the express written consent
of Landlord, Tenant shall become a tenant at sufferance only, at a
rental rate equal to one hundred fifty percent (150%) of the rent
in effect upon the date of such expiration or termination and
otherwise subject to the terms, covenants and conditions herein
specified, so far as applicable. Acceptance by Landlord of rent
after such expiration or earlier termination shall not constitute
a holdover hereunder or result in a renewal. The foregoing
provisions of this section are in addition to and do not affect
Landlord's right of re-entry or any rights of Landlord hereunder or
as otherwise provided by law. If Tenant fails to surrender the
Property upon the expiration or other termination of this Lease
despite demand to do so by Landlord, Tenant shall indemnify and
hold Landlord harmless from all loss or liability, including
without limitation, any claim made by any succeeding tenant founded
on or resulting from such failure to surrender.
21 . Surrender.
On the last day or sooner termination of this Lease,
Tenant shall quit and surrender the Property in good condition and
repair, reasonable wear and tear excepted, together with all
alterations, decorations, additions and improvements that may have
been made in, to or on the Property. Subject to the provisions of
section 9, at the end of the Term of this Lease Tenant may remove
all of Tenant's personal property from the Property, and any
property not removed shall be deemed abandoned by Tenant and may be
disposed of by Landlord without any liability to Tenant.
2/99900/JKM!ARROWSIX/MSHLEAS.OOl
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RES 96-40
22. Landlord's Right of Entry.
Landlord reserves and shall at any and all times have the
right to enter the Property to inspect the same and, during the
last six months only to submit the Property to prospective tenants,
to post notices of non-responsibility, and to repair the Property
or any portion of the building thereon, all without being deemed
guilty of any eviction of Tenant and without abatement of rent, and
may, in order to carry out such purposes, erect scaffolding and
other necessary structures where reasonably required by the
character of the work to be performed. Landlord may during the
last six months of the Term, place outside the Property any
ordinary "For Lease" signs. For each of the aforesaid purposes,
Landlord shall at all times have and retain a key with which to
unlock all of the doors in, upon and about the Property, excluding
Tenant's vaults and safes, and Landlord shall have the right to use
any and all means which Landlord may deem reasonable or necessary,
in light of the then existing circumstances, to open such doors in
an emergency in order to obtain entry to the Property, and any
entry to the Property obtained by Landlord by any of such means, or
otherwise, shall not under any circumstances be construed or deemed
to be a forcible or unlawful entry into, or a detainer of, the
Property, or an eviction of Tenant from the Property or any portion
thereof. Notwithstanding the above, Landlord's right of entry in
a non-emergency situation shall be subject to the requirement that
Landlord give no less than twenty four (24) hour advance written
notice to Tenant of its intent to enter the premises.
23. Eminent Domain.
In case the whole of the Property, or such part thereof
as shall substantially interfere with Tenant's use and occupancy
thereof, shall be taken for any public or quasi-public purpose by
any lawful power or authority by exercise of the right of
appropriation, condemnation or eminent domain, or sold to prevent
such taking, either party shall have the right to terminate this
Lease effective as of the date possession is required to be
surrendered to such authority. Tenant shall not assert any claim
against Landlord or the taking authority for any compensation
because of such taking, and Landlord shall be entitled to receive
the entire amount of any award without deduction for any estate or
interest of Tenant. In the event the amount of property or the
type of estate taken shall not substantially interfere with
Tenant's use of the Property, Landlord shall be entitled to the
entire amount of the award without deduction for any estate or
interest of Tenant, and Landlord at Landlord's option may terminate
this Lease. If Landlord does not so elect, Landlord shall promptly
proceed to restore the Property to substantially its same condition
prior to such partial taking, and a proportionate allowance shall
be made to Tenant for the rent corresponding to the time during
which, and to the part of the Property of which, Tenant shall be so
deprived on account of such taking and restoration. Nothing
contained in this section shall be deemed to give Landlord any
interest in any award made to Tenant for the taking of personal
property and fixtures belonging to Tenant or for Tenant's
relocation expenses provided that such award to Tenant, if any,
2/99900/JKM/ARROWSIX!MSHLEAS.OOl
14
RES 96-40
shall not reduce the award that would otherwise be made to Landlord
for the taking of the Property.
24. Merger.
The voluntary or other surrender of this Lease by Tenant
or a mutual cancellation thereof shall not effect a merger of the
estate herein demised and Landlord's reversionary interest and
shall, at Landlord's sole option, terminate any and all existing
subleases or may, at Landlord's option, operate as an assignment to
Landlord of any or all such subleases.
25. Performance by Tenant.
All covenants and agreements to be performed by Tenant
under any of the terms of this Lease shall be performed by Tenant
at Tenant's sole cost and expense and without any abatement of
rent. All obligations of Tenant hereunder shall be joint and
several. If Tenant shall fail to pay any sum of money, other than
rent, required to be paid by Tenant hereunder or shall fail to
perform any other act on Tenant's part to be performed hereunder,
and such failure shall continue for ten (10) days after notice
thereof by Landlord, Landlord may, without waiving or releasing
Tenant from Tenant's obligations, but shall not be obligated to,
make any such payment or perform any such other act on Tenant's
part to be made or performed as in this Lease provided. All sums
so paid by Landlord and all necessary incidental costs together
with interest thereon at the maximum rate permissible by law, from
the date of such payment by Landlord, shall be payable to Landlord
on demand.
26. Mortgagee Protection.
In the event of any default on the part of Landlord,
Tenant will give notice by registered or certified mail to any
beneficiary of a deed of trust or mortgage covering the Property
whose address shall have been furnished to Tenant, and shall offer
such beneficiary or mortgagee a reasonable opportunity to cure the
default.
27. Definition of Landlord.
The term "Landlord" as used in this Lease, so far as
covenants or obligations on the part of Landlord are concerned,
shall be limited to mean and include only the owner or owners, at
the time in question, of the fee of the Property. In the event of
any transfer, assignment or other conveyance or transfers of any
such title or leasehold, Landlord herein named (and in case of any
subsequent transfers or conveyances, the then grantor) shall be
automatically freed and relieved from and after the date of such
transfer, assignment or conveyance of all liability as respects the
performance of any covenants or obligations on the part of Landlord
contained in this Lease thereafter to be performed and, without
further agreement, the transferee of such title shall be deemed to
have assumed and agreed to observe and perform any and all
obligations of Landlord hereunder, during such transferee's
2/99900/JKM/ARROWSIX/MSHLEAS,OOl
15
RES 96-40
ownership of the Property. Landlord may transfer Landlord's
interest in the Property without the consent of Tenant and such
transfer or subsequent transfer shall not be deemed a violation on
Landlord's part of any of the terms and conditions of this Lease.
28. Hazardous Waste.
28.1 The term "Hazardous Materials" as used in this
Lease shall mean hazardous andlor toxic substances including those
defined as "Hazardous Materials", "Toxic Substances", or "Hazardous
Waste" in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, The Resource Conservation and Recovery
Act of 1976, The Hazardous Materials Transportation Act,
Section 25177 of the Health and Safety Code of the state of
California, as each may be amended, and all other laws and
ordinances governing similar matters now or hereinafter executed,
and all regulations adopted and publications promulgated pursuant
thereto (collectively "Regulations"). The "Presence" of hazardous
materials shall mean the manufacture, distribution, production,
treatment, use, generation, storage, disposal, removal andlor
transportation of Hazardous Materials.
28.2 Tenant
agrees, at all times
extensions or renewals
represents and warrants to Landlord
during the Term of this Lease and
hereof, as follows:
and
any
A. Tenant shall not permit the Presence of
Hazardous Materials on, under or about the Property, without
receiving Landlord's prior written consent, which consent Landlord
may with hold in its sole and absolute discretion and, if given,
subsequently revoke at any time. Notwithstanding the above, Tenant
may without Landlord's written consent permit the Presence of such
Hazardous Materials on the Property in such amounts as are
necessary in the ordinary course of conducting Tenant's business as
described in section 3 hereinabove provided that Tenant shall be
subject to all of the remaining provisions of this section 28. If
Landlord consents to the Presence of any such Hazardous Materials,
or if Landlord's consent thereto is not required, then Tenant shall
conduct any activities in connection with the Presence of such
Hazardous Materials strictly in compliance with all applicable
Regulations, using all necessary and appropriate precautions.
Tenant shall be liable to Landlord for the Presence of any
Hazardous Materials caused or permitted to be caused by Tenant,
Tenant's employees, agents, contractors, licensees or invitees,
whether or not consented to by Landlord hereunder;
B. Tenant agrees to indemnify, protect and hold
Landlord, its agents and employees, harmless from any and all
demands, claims, causes of actions, penalties, liabilities,
judgments, damages, and expenses including, without limitation,
court costs and reasonable attorneys fees incurred by Landlord as
a result of (i) Tenant's failure or delay in properly complying
with all applicable Regulations; or (ii) any adverse effect which
results from the Presence of any Hazardous Materials in or about
the Property, unless Tenant demonstrates that the Presence of said
Hazardous Materials did not result from Tenant's use of the
2/99900/JKM/ARROWSIX/MSHLEAS.OOl
16
RES 9fj-40
Property. If any action or proceeding is brought against Landlord,
Landlord's agents or employees by reason of such claim, Tenant,
upon notice from Landlord, will defend such claim at Tenant's
expense with counsel satisfactory to Landlord. This
indemnification by Tenant of Landlord shall survive the termination
of this Lease;
C. Tenant shall allow Landlord and Landlord's
agents, access and the right to enter and inspect the Property for
the Presence of any Hazardous Materials, at any time deemed
reasonable by Landlord, without prior notice to Tenant, and in the
event a release of Hazardous Materials occurs on or effects the
Property, Tenant shall permit Landlord or Landlord's agents to
enter the Property at any time, without prior notice, to inspect,
monitor, take emergency or long term remedial action, discharge
Tenant's obligations hereunder if Tenant has failed to do so, or
take any other action to restore the Property to its original
condition.
29. California Law to Apply.
This Lease shall be governed by the laws of the State of
California and any question arising hereunder shall be construed or
determined according to such laws.
30. Disputes.
Any actions or proceedings arising under, growing out of,
or in any way related to, this Lease shall be instituted and
prosecuted only in courts located in the City of San Bernardino,
County of San Bernardino, State of California, and each party
hereto expressly waives its right, under Part II, Title IV of the
California Code of Civil Procedure, to cause any such actions or
proceedings to be instituted or prosecuted elsewhere.
31. Attorneys' Fees.
If either of the parties hereto shall bring any action or
proceeding against the other to enforce or declare any rights
herein created, or to bring about or declare the cancellation or
rescission of this Lease the prevailing party in such action or
proceeding shall be entitled to receive from the other party all
reasonable attorneys' fees and costs incurred in connection
therewith.
32. Integration.
32.1 This Lease contains the entire agreement and
understanding between the parties with respect to the Property.
There are no oral understandings, terms or conditions, and neither
party has relied upon any representations, express or implied, not
contained in this Lease. All prior understandings, terms, or
conditions are deemed merged into this Lease.
32.2 This Lease may not be changed orally, but only by
agreement in writing and signed by the party against whom
2/99900/JKM/ARROWSIX/MSHLEAS.OOl
17
l!ES 96:-40
enforcement of any waiver, change, modification, or discharge is
sought.
33. Counterparts.
This Lease may be executed in counterparts, all of which
shall be deemed an original but which together shall constitute one
and the same Lease.
34. Notices.
34.1 The address of the parties hereto for the purpose of
any notices, demands of other communications (all of which shall be
hereinafter collectively referred to as "Notices"), required or
permitted by law or any provision of this Lease shall be as follows
unless otherwise specified in writing:
Landlord:
Arrow-six Investment Co.
clo Mirau, Edwards, Cannon & Harter
599 North E Street, Suite 205
San Bernardino, CA 92401
Tenant:
San Bernardino Employment and
Training Agency
599 North Arrowhead Avenue
San Bernardino, CA 92401
Any party may, upon written notice to the other, change its
address for such Notice.
34.2 All Notices of any kind which either party may be
required or desires to give to or serve upon the other party shall
be in writing and shall be deemed timely only in the event of the
actual receipt of such Notice by the party to whom the Notice is
directed at or prior to the time specified. In the event that any
party elects to give such Notice by mail, the risk of loss or
non-delivery of any such Notice deposited in the mail shall fall
solely upon the sender. There shall be no presumption that any
item deposited in the mails is actually delivered or received.
35. Tenant Improvements; Parking.
35.1 Landlord and Tenant agree that the tenant
improvements described in the construction contract attached hereto
as Exhibit "B" shall be completed prior to February 15, 1996.
Tenant shall pay $25,000.00 of the cost of tenant improvement; the
remainder of the cost of such improvements shall be paid by
Landlord. Upon execution of this lease, Tenant shall pay to
Landlord its $25,000.00 share of tenant improvements. Landlord
shall disburse such funds, along with funds supplied by Landlord,
to the construction contractor on a progress payment basis. Upon
completion of the tenant improvements, Landlord shall account to
Tenant for the expenditure of funds paid for construction of the
tenant improvements.
2/99900/JKM/ARROWSIX/MSHLEAS.OOl
18
RES 96-40
35.2 Tenant shall have the non-exclusive use of 42
parking spaces located on the Property or the immediately adjacent
property. Landlord shall be entitled to adopt reasonable parking
rules and regulations for the purposes of allocating the use of
parking located on the Property (and on the adjacent property),
including but not limited to rules and regulations (i) requiring
employees of Tenant to park in certain assigned spaces, and (ii)
limiting use of the parking spaces located between the Property and
the 595 Building for the purposes of making such spaces available
to clients of both Tenant and the tenant of the 595 Building.
36. Alterations or Improvements.
Tenant shall make no alterations or improvements to the
leased premises without the prior written consent of Landlord and
written approval of the alteration plan. Upon such approval, all
such work shall be performed by licensed contractors approved in
writing by Landlord, including but not limited to painters,
carpenters, wallpaperers, etc. Any construction of walls, doors,
partitions or other interior improvements consented to by Landlord
shall be constructed with the same quality of workmanship and
materials as presently existing in the leased premises. Upon
termination of the Lease, at the option of Landlord, Tenant shall
either (i) remove all alterations and improvements to the Property
installed by Tenant and repair the Property to the same condition
and configuration it was in prior to such Tenant improvements and
alterations, or (ii) abandon such alterations and improvements, in
which case such alterations and improvements shall become the
property of Landlord without compensation or reimbursement to
Tenant. Tenant shall be entitled to place signage on the monument
sign located at the Arrowhead Street entrance to the Property,
provided that the design and style of such signage shall be
consistent with the signage for the tenant of the 595 Building. In
addition, Tenant shall be entitled to place signage on the west end
of the Property, subject to (i) compliance with all applicable
governmental ordinances, rules and regulations (or variances
therefrom), and (ii) Landlord's reasonable approval of the size,
location and design of the proposed signage.
37. Miscellaneous.
37.1 Time is of the essence of this Lease.
37.2 This Lease shall be construed as a whole and in
accordance with its fair meaning, the captions being for the
convenience of the parties only and not intended to describe or
define the provisions in the portions of the Lease to which they
pertain.
37.3 All periods of time referred to in this Lease shall
include all Saturdays, Sundays and state or national holidays,
unless the period of time specifies business days, provided that if
the date or last date to perform any act or give any notice with
respect to this Lease shall fall on a Saturday, Sunday or state or
national holiday, such act or notice may be timely performed or
2/99900/JKM/ARROWSIX/MSHLEAS.OOl
19
IQ>S 9(j-40
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given on the next succeeding day which is not a Saturday, Sunday or
state or national holiday.
37.4 The unenforceability, invalidity, or illegality of
any provision of this Lease shall not render the other provisions
hereof unenforceable, invalid or illegal.
37.5 Submission of this instrument for examination or
signature by Landlord or Tenant does not constitute a Lease of all,
or any portion of, the Property and it is not effective until
execution and delivery by both Tenant and Landlord.
binding
assigns
37.6 This Lease shall inure to the benefit and be
upon the heirs, successors, administrators, executors and
of the respective parties hereto.
Dated:
January ___, 1996
"Landlord"
II Tenant II
ARROW-SIX INVESTMENT CO.
a California general partner-
ship
By: ~/\A.... ;;J- - 7 - q b
It s : 61<' 1/'\' jJ At''\V\(' il
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CITY OF SAN BERNARDINO
"'~RA:-"G AGENCY
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And: 19~ (!jfJjLt o/f vf(1n(l;;tl}~dmfi.---1
Its: 01:; VWc, f7~
Approved as to form
and legal content:
JAMES F. PENMAN, CITY ATTORNEY
By:
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2/99900/JKM/ARROWSIX!MSHLEAS.OOl
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RES 96-40
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~,RLO~jE II PROPOSAL CONTRACT
VONSTRUCTION I II
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,Arrow-six Investmem Company
c/o Me John :Vlirau
599 N "E" St, Suite 205
San Bernardino, CA 92,,10!
Dear John,
We appreciate the opportunity of submitting this proposal for the below reference work.
RE: North Building Tenant Improvemen.
599 N. Arrowhead Ave. San Bernardino, CA
SCOPE OF WORK
DEMOLITION
Existing shower, sinks (x3), toilets (:<2), door ways (xl), toilet partition compartments (x2)
Saw cut block and concrete slab,
ADA \10DlFiCATIONS - EXISTING MEN'S AND WOMEN'S RESTROOMS
2. Install A.D.A approved toilets (x2), partitions (xl):?J1d hardware as needed to meet A.D A
code. Rework and install sinks (x3) to meet A. D A requirements
3 Install in women's restroom one standard toilet and partition to meet San Bernardino and
California building codes
4. Repair concrele floor as needed
5. Paint and install f,R.P. as needed in restrooms
6 Replace restroom floor covering as necessa!)'
7 repair ceiling as needed
8 Install exhaust fans (x2)
9 Relocated light switches
10 Install doors for restroom entrances (x2)
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PO Box 3637. San Bernardino. CA 92413. (909) 386-1828. Fax (909) 386-1830
Industrial, Commercial Construction General Contractors License #561864
llliS,96-40
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Proposai ::cntract continued
BUILDrNG lTPGRADES TO MEET FIRE CODE FOR ASSEMBLY USE
II. Install exit signs (x71
12 Reverse swing (out toward hailwav) of doors (x2) in new conference room)
13 Install 90 minute door and 2 hour wail in hail way for a 2 hour separation
14 InstaH panic hardware l" I set) on sout~cast doorby covered parking area
RB10DE,- 0" NORTh'WEST OFFICES
15. Remove existing wall, 'Nallcove~ng and carneting
- ~" .....
\ 6, Repair ceiling and wails
17. Install new carpet
18. Paint
19. Carpet hallways and ne'.v conference room
20, Patch and paint new conference room walls
EXCLUSIONS:
Permit fees
Architectural plans
Structural calculations
Course of construction insurance
Security
Anything not outlined in the above Scope of Work
TOTAL,....... '
....,$ 36,98300
PAYMENTSCHEDUl.E
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A deposit of $3,600,00 is due and payable upon acceptance of this proposal contract
Subsequent payment is due upon progress of work.
Sinc ,
n Carlone Construction
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Dan Carlone, owner
The Und#sign~_tx#g:~.priricipala.ndl(Jr agcnt..ofthe contracting company herebya:gree~:~q:fulfiYti:1~-te_nnS!1nd condltions at
tills <lg!ecruent. . . . . ..
Accepted by:
EgilBJ]; 8
date'
1',0, Box 3637. San Bernardino, CA 92413. (909) 386-1828. Fax (909) 386-1830
Industrial. Commercial Construction General Contractors License #56186..\