HomeMy WebLinkAbout2005-274
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RESOLUTION NO.....2005.-274
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND SANBAG FOR THE LEASE OF
OFFICE SPACE LOCATED IN THE SANTA FE DEPOT AT 1170 WEST 3RD STREET.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That the Mayor and Common Council are hereby authorized and directed
to execute a lease agreement between the City of San Bernardino and SANBAG for 1800
square feet of office space located in the Santa Fe Depot building to serve as the Western
District Community Oriented Police Station.
SECTION 2. That the Mayor and Common Council authorize the expenditure of
$25,000 approved in the FY 2005-06 budget for tenant improvements and relocation costs.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION..OF AN AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND SANBAG FOR THE LEASE OF
OFFICE SPACE LOCATED IN THE SANTA FE DEPOT AT 1170 WEST 3RD STREET.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a Joint Regular meeting thereof, held on the
1st day of AUl!Ust, 2005, by the following vote, to wit:
Council Members: AYES
ESTRADA x
LONGVILLE x
-
MCGINNIS x
DERRY ~
KELLEY x
-
JOHNSON ~
MCCAMMACK x
NAYS
ABSTAIN ABSENT
Approved as to
Form and legal content:
The foregoing resolution is hereby approved this
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day of August ,2005.
Judith Valles, Mayor
City of San Bernardino
JAMES F. PENMAN,
City ttorney
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SAN BERNARDINO SANTA FE DEPOT
COMMERCIAL LEASE
Landlord:
San Bernardino Associated Governments, a California joint powers agency
(SAN BAG)
Tenant:
San Bernardino Police Department
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Section #
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Exhibit "A"
Exhibit "B"
Exhibit "C"
Exhibit "0"
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TABLE OF CONTENTS
Summary of Lease Provisions
Premises
Common Areas
Pal1<ing
Term
Rent
Common Area Operating Expenses
Rent Increase
Security Deposit
Use
Maintenance & Repairs
Utilities & Services
Alterations & Additions
Insurance & Indemnity
Property Taxes
Assignment & Subletting
Default; Breach; Remedies
Late Charges
Estoppel Certificate
Surrender; Move-out
Holding Over
Substituted Premises
Landlord's Access
Security
Signs
Subordination
Options
Damage or Destruction
General Lease Terms
Additional Terms
Signatures
Rules & Regulations
[intentionally omitted]
Site Plan
Scope of Tenant Improvements
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1. Summary of Lease Provisions
1.01 Partl..: This Lease, dated, lor refarence purposes only, July 26, 200S, is made by and between San Bernardino
Assoclllllld Govarnmanta, a California Joint powersllllancy(SANliAG) (hereIn called "Landlord") and San Bernardino
Police Department (herein called "Tananr).
1.02 Pramls,,: Unft Number(s) [TBD] ,consisting of approximately 1,800 rentable square feet, more or less, as defined
In SectIon 2 (tha "Premises").
1.03 Building: Commonly described as being localed at 1170 Weat 3rd Straat In tha City of San Bernardino, County
of San Barnardlno, ~ of Califomia.
1.04 Term: One (1) year, commencing upon substantial completion of Tenant Improvements ("Commencament
Date' and ending [TeD), as defined in Section 5.
1.05 Bua Rant: $1.00 per year, payable on the first calendar day of each year, per Section 6. Note of clarification: In
recognition tIIat tile City of San BematrJino Is a co-awnerofthe Depot, the CIty.of San Bernaroino ha.lnvested substan~al
local Ifnanc/al resource. to tile Depof. resloration and tile presence of a police substation In tile Depot contribute. to the
provision of security, tIIus tile Base Rent will only be $1.00 per j'W8f.
1.08 B.. Rant ...ore....^f1f1t1al) I the rnefflht1 Bass Rel"lt pII)lIble !;tABsr Seelio" 1.96 Mall be 8djtt*d as I'reJiEled
~,Sdo., 7.
1.07 Late Chargea: 8% hny installment of Base Rant Oparating Expansalncreasa, or any othar sum dua!rom Tenant
shall not be recaiv8d by Landlold within 6 days altar the nrst day of each month.
1.06 Security Deposit: $0.00.
1.09 Tanant'a Share of Common Area Operating Expanaaa: 4.1% as defined In Section 6.
1.10 Perking: Any available maximum unreserved and unassigned vehicle par1<ing spacas lor Tenant's visftors (who
shall not utilize any spaces reserved lor other occupants of the Depot), and flva (6) reserved par1<ingspacas for Tenanrs
employees, as provided lor In Section 4.
1.11 Uae: Police subetetlon.
1.12 UtlIItI..: Provided by Landlord (subject to reimbursement as may be provided for In this Laasa):
WatsrlSewer/GaeITrs.h Provided by Tenant ElectrlcltylPhoneIData, as further defined and subject to the provisions
in Section 11.
1.13 Malntensnce & Repairs: interior of Premlsas maintained by Tenant; Exterior of Building malntelned by Landlord
subject to and in accordance wfth Section 10.
1.14 Insurance: $1,000,000 liability policy required to be carried by Tenant prior to Occupancy - sea Section 13.
1.15 Options to Extend: Tenant has five (6) Options to Extend the term ot this Leasa lor a period of one (1) year each,
as provided for in SectIon 25.
1.16 Tenantlmprovements: (chackone)
Q Tenant to accept Premisas In as-is condition
~ Landlord to provide Tenant Improvements .s provided for in Paragraph 29.
g Tenant to provide Tenant Improvements as provided for in Paragraph_.
1.17 Notice.:
To Landlord:
San Bernardino Auoclllllld Governments,
a California Joint poIlII!!rs IIllBncy lSANBAG)
c/o City CoriunarCIaI Manegemsnl
10722 Arrow Route. Suits 500
Post omce Box 148
Rancho Cucamonge, CA 81729-0648
Telephone: (808) 848-1882
FAX: (808) 848-1348
2. Premises.
Landlord hereby leases to Tenant for the term..l at the rental, and upon all of the conditions set forth herein,
the Premises as defined in Section 1.02. The t"remises, the Buildi~s), the Convnon Areas, and the land
upon which the same are located, are COllectively referred to as the "~r' (as per the attached Site Plan).
It is understood and agreed that the square footage figures set forth In the Basic Lease Provisions are
approximations which Landlord and Tenant agree are reasonable and shall not be subject to revision except
in comedion with an actual change in the size of the Premises.
Tenant hereby accepts the Premises and the Depot in their cond~ion existing as of the Lease
Commencement Date or the date that Tenant takes possession of the Premises, whichever is earlier, subject
to all applicable zoning, municipal, county and state laws, ordinances and regulations goveming and regUlating
the use of the Premises, and any easements, covenants or restrictions of record. and accepts this lBase
subject thereto and to all matters cfl8Closed thereby and by any exhibits attached hereto. Tenant acknowledges
that it has satisfied by its lMfI independent investigation that the Premises are suitable for its intended use, and
that neither Landlord nor Landlord's agent or agents has made any representation or warranty as to the present
or future suitability of the Premises, Common Areas, or Depot for the conduct of Tenanrs business.
To Tenant
San Bernardino Pqllce Depl
AUn: Chief of Police
710 N. D Street
San Bernardino, CA 82401
(808) 384-6742
3. Common Areas.
"Common Areas" are defined as all areas outside the confines of the Premises, including but not limited to
parking areas, loading and unloading zones, trash enclosures, roadways, sidewalks, waIkWlIyS, parkways,
ramps, driveways, landscaJl.8d areas, and that are within the Depot that are provided and designated for the
general ~xdusive use Of Landlord, Tenant, and all other Tenants of the Depot. Tenant, T enanl's employees,
visitors, and invitees hereby agree to abide by and conform to all rules and regulations, which Landlord shall
have the right in ~s sole reasonable discretion to modify from time to time. Landlord shall have the exdusive
Initials:
@ CltyCom . Multi- Tenant Commercial Lease (rav 4/04) - Page 3
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control and management of the Common Areas; however, Landlord shall not be resl10nsible for the non-
compliance of said rules and r89Ulatlons by other tenants, empIoyaes, and invilees to the Depot. Landlord shall
have the right in Its sole disaelion to (1) make changes to the BUilding exterior and/or Convnon Areas; (2)
close temporarily any of the Convnon Areas for maintenance puI1lOseS so long as reasonable accass remains
available; and (3) to add additional improvements to the Convnon Areas. lJnder' no circumstances shaH the right
herein granted to usa the Convnon Areas be deemed to include the rIg!1t !O store any property, temporarily or
permar1ently, in the Common Areas. Arri such storage shall be permIlle<l only by tile prior IMitten consaril of
Landlord or Landlord's designated agent, which consent may be revoked at any line. In the ~ that any
unauthorized storage shall occur then Landlord shaH have the right, without nolios, in addition to such other
rights and remedies it may have, to remove the property and charge the cost to Tenant, which cost shall be
immediately payable upon demand by Landlord.
4. Parking.
Tenant shall be entilled to use the vehicle parking spaoss as provided for in Section 1.10 onthosa portions
of the Common Areas designated by Landlord for P!lrking. Tenant sha! not use more spaces than said
maximum number, and spaoss shaH be used only for vilhicIeS no larger that full-sized ~nger vehicles, pick-
up trucks, or sport utility vehicles. Arrj vehicle loading or Wlloading sha! ~ be pennltted in areas and at times
designated by Landloril for such activities. Landlord shaH have the right, without notios, to tow 8!1)' of Tenant's
vehicles (or l' enanl's employees, invlteas, contractors, or visitors) that are in violation of any parking rules and
regulations, the cost of which sha! be the sole responsibility of r enant.
5. Tenn.
"Possession" of the Premises shaH be deemed tendered to Tenant when (1) improvements, if any, are
substantially completed, and (2) Tenant has been given reasonable access to the Premises. If for any reason
Landlord cannot deliver poss8Sslon of the Premises on the Commencement Date as provided for in Section
1.04, the Convnenosment Dele and ending deles shaft be correspondingly extended in raIatIon to the Term of
this Lease, and Lendlord shall not be subjedto any liability, nor shaD suCh delay in commencement affect the
validity of this Lease or the obligations of Tenant I1ereu1der (except that Tenant shaH not be obligated to pay
rent until possession of the Premises has been delivered as provided for herein). However, there shall be no
abatement of rant or adjustment of the Commencement Dele if such delays are caused by actions of Tenant,
Tenant's agents or contradors.
6. Rent.
Rent and Base Rent. ArPJ and all amounts from time to time I18Y8ble to Landlord by Tenant hereunder shaH
be referred to herein as ReI:If. includiOO, but not linited to, Base Rent, and shaD be pail! in fuH when due without
right of offset, setoff or deduclion. T enent shall pay to landlord the Base Rent fOr the Premises as provided
of in Sedion 1.05. Base Rent for any period less than ons month 8haI be prorated based UPQn the adual
number of d!>>,s in the calendar montIi involved. Rent shaH be payable in lawful money of the United States to
Landlord at tile address stated herein or to any such other persons or at any such other plaoss as Landlord
may designate in writing.
Common Area Maintenance ExptnS88 ("CAM"). Tenant shaH pay to Landlord during the term hereof, in
addition to the Base Rent, Tenarts Share as provided for in Sedion 1.09 and hereinafter defined, of all
Common Area Maintenance Expenses, as herein defined, during each calendar year,. also referred to as "CAM
Charges" in aCCOldanos with the following provisions:
(a) ''Common Area Maintenance Exjfensas" are defined, for purposes of this Lease, as all costs incurred
by Land[ord\ relating to the ownership anll operation of the ~, indudi!'!!, but not limited to, the following:
(i) The OJl:!!ration, repair arid maintenance, in neat, clean good oraer and condition, of the following:
(aa) The COmmon Areas, including parking areas, ld'iding and unloading areas, trash areas,
public restroorns, roadways, sidewalks walkwavs, ~parkwaYs, driveways, landscaped areas, striping, bumpers,
Irrigation systems, Common Area lighting facllili8i, fences and gates, elevators, escalators, and roof;
~b) Exterior skins and a!!y tenant diradones.
eel Fire deleclion (includil)g monijoring costs) and sprinkler s'lStems.
(ii} cost of water, gas, electricity, and telephonil to servlos the Common Areas.
. (ill) Trash disposal, property management, security services, association fees, and the costs of any
enVIronmental Inspections.
liV) Reserves set aside for maintenanos and I8P!Ilr of Common Areas.
v) Real Prot3!lr:tY Taxes (as defined in Section 14) for the BulIdina and the Common Areas.
VI) The cost Of tIie prarniImI for the insurance poIli::1es maintained' by Landlord under Section 13.
vlU MY deducliblei poIlion of an insured loss conceming the Buildil)g or the Common Areas.
viII) Hf'/ other seMcaS to be provided by Landlord that are stated elSewhere in this Lease to be a
Common Area Maintenance ExDense.
(ix) NJoJ man.!l!l8menl fees incurred by Landlord in connection with the operation of the Depot or
at Landlord's o~'on, in lieu of any such management fees, 15% of CAM Charges as computed without regaiil
to this clause IX).
(b) Arry Area Maintenanos Expensas and Real Property Taxes that are speclficallv attributable
to the Building or to any other building in ~ Otlpot or to the pperation, repair, and maintenanos thereof, shall
be allocated ehtirelv to tile building orlo such oilier building. However any Convnon Area OIll!ratil)ll Expenses
and Real Property Taxes that are not specifically attributable to tile BuilCling or to any othIir building or to the
g:ration, repair, and maintenance thereof, shall be equitably allocated Ily Landlord to all buildings in the
pot,(C) The inclusion of the irT1prQvements, facilities, and servlcas set forth in this Sadlon shall not be
deemeillo il1lpOlH.l arr obligation I4lQIl Landlord to either have said im~ts or facilities or to provide thosa
servioss unleSs the oepot alreaay has the same or Landlord alreadYllrovides the servloss.
(d) Tenants Share of Cominon Area ~ratil)g Expensas (CAM Charges) shall be payable by Tenant
within ten (10) days after a reasonablv detailed sliitement of adual expenses is presented to Tenant by
Landlord's allenl. At Landlorc!'. Wtion, however an amount may be estimated bv Landlord from time to time
of Tenant's Share of annual CAM Charges and /tie same shall lie payable monthly or Quarteriy, as Landlord
shall designele, during each 12-month period of the Lease term, on the same day as the Base Rent is due
hereunder. Landlord shall d~iver to Tenant within sixtv (60) days after the~expiration of each calendar year a
reasonably detailed statement showing Tenants Sliare of the adual CAM Charges incurred during the
preceding year (the "Reconclliation'1. If Tenant's pavments during said preceding year exosed Tenant's Share
as indica led on said Reconciliation, Landlord Shall be creditea the amount 01 such overpayment against
Tenant's Share of CAM Charges next becoming due. If Tenant's parments during said preCeaing year were
less than Tenant's Share as iildicated on said Reconciliation T enan shall pay to Landlord the amount of the
deficiency within ten (10) days after delivery by Landlord to 'renant of said Reconciliation.
InltIals:
@CltyCom . Mu1tJ- Tenant Commercial Lea.e (rev 411U) . Page 4
7. Rent Increase.
O. gawl. Clltll;V"wHIClll -date tlll.;,16aD'Ii:J, II..... Ba"", Rtml oIlall bv ;'I""va~ b, Q orl Adjtlstmem (see
~ub~v6U11 ..~ bdlun) VI !! wall reNeI adjtl8trneri (886 8t1t3SSetiM 'ti" HIo.. ).
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the sPlain!1 Lee. teflft eomIftOIMSeI. 1M 8tft eo ealetdeted 01 ee....lle the .... 1fIOPIIh.') elSI Refit
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8S .Jill 15..I'I! the iftereaeed remal et:IrftSN. thereafter the Fa".1 shall tMs peifj at the iflel eaeed rete.
by~~=;~~::';lie -==~~':.Ralllle edjuetelllly iFlllUaeiFlgllle meFllllly Base ReFIt
8. Security Deposit
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r:elatisRshil' is ereited herein Mt.reeft laIw.IIOM alMt TelIS......Jith resl'eette aeid Saeurili EJel'O'it. Land18r6
shall. fist Be ~tlired te DeGfSgate 8tieh elsl'esit fire... etheI Landle'" me~8 8M Mall not he ~t:lifed Ie ~
all) l",e~lIllhe~e".
9. Use.
The Premises shall be used and occuDied only for tha purpose as provided for in Section 1.11 and for no
othar purpose. Tenant shall conduct its business in a lawful manner (Including obtaining and maintaining any
~uired governmental PflIT!!its and licenses) and shall not use or ~rmtt use Of tha Premises or tha Corilmon
Areas in any manner that \WI tend 10 create waste or a nuisance or shall tend to disturb othar occupants of tha
Depot.
10. Maintenance and Repairs.
Land~rd'S ~~I~: Landlord shall keep tha Depot foundations, exterior walls, roof, fire lWrinkler system
and fi smo a on equipment, and common areas (as defined above), in gOod condition and repair;
p'rovided, however, Landlord shaU not be obligated 10 paint exterior walls, or 10 ~If or replace any windows
Cloors, or plate glass of the Premises. There Shall be no abatement of rent or liabilitv of Tenant on account Of
any injUry or interference with Tenant's business with respedlo any irnproYllmenIII, alteratlons, or repairs made
by Landlord to tha ~t or aflY part thereof. Tenant emessIv waives tha benefits of any statute now or
hereafter in eflect whiCh would otherwise afford Tenant the riglitto make repairs at Landloid's expense or to
terminate this Lease because of Landlord's failure to keep the Depot or Common Areas in good order,
condition, and repair.
Tenant's ObIiQatiolls: Tenant shall, at Tenant's sole cost and expense and at all times, ~ tha Premises and
every part lI1ereofiiiljood order. condition, and repair (whelhet or not tha need for such repairs occurs as a
resutt of Tenant's use, llI!Y prior use, tha elemenls, or tha age of such P.O!1ion of tha Premises), including,
without limiting tha gener:ahty of tha foregoing. all equipment orlaciHties s~cally seMl19 tha Premises, suCh
as plumbing,neatlng, air c:Onditioni!1Q, ventilating, eIeclrical, fighting facilities. fiXtures, interior walls. interior
surfaces of exterior walls, caili!llls, ftoorstwindowsL~~[8, Dlate glass. and skvIiah18. but excluding al'!Y items
which are tha responsibility of Lindlord. enanl, in ~ng 1he Premises in goOd" ordar, oondiIion, iInd repair,
shall exercise arid perform aood maintenance praclices. Tenant's obIiaalions shall include restorations,
I)lIllacements. or renewals When necessary to keep tha Premises and IiII improvements thereon or a part
thereof in good order, condttion, and slate of repair. Tenant shall also, at Tetianl's sole cost and expense,
procure arid maintain a contrad, with copies to Landlord, in customary form and substance for and with a
contrador specializing and experienced in tha inspedion, maintenance. and seNice of the heating, air
conditioning, and ventilation system for tha Premises. However, Landlord reserves tha right to procure and
maintain the contradfor tha heilti!lll, air conditioning, and ventilation systems, and if Landloi'i:l so erects, Tenant
shall reimburse Landlord, upon demand, for the cost thareof.
If Tenant fails to perform its obligations under this Section Landlord may enter uP9fl tha Premises after
ten (10) days' prior written notice to Tenant (except intha case 0( an emergency, in whiCh case no noticeshaU
be ~uired), perform such obligations on ienanl's behalf, and put tha Premises in good order, condition, and
repair.
Hazardou~ubstances. The term "Hazardous Substance" as used in this Lease shall mean any product,
substance, mlcal, material, or waste whose presence, nature. guanlily, and/or intensity of existerice, use,
manufacture, disPQSal, transJx.lrtation, ~iII, rel8ase. or eflect. either by itself or in combination with other
materials expected to be on tha Premises, is eithar (i) potentially injurious to the public health, safely, or
welfare, the environment, or the Premises; (Ii) regulated or monitored by any govemmental authority; or (iii)
Inltillls:
@CItyCom . Multi- Tenant CommercIal Lease (rev 41(4) . Page 5
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a basis for P.(llentialliabililY of Landlord to any governmental all.ency or third party under arrt applicable statuIe
or common law theory. Tenant shaD not engage in any activitY In 9!' about the Premises whiCh oonstilules a use
of Hazardous Substlinoas without the express writteil consent of Landlord and complianoa In a timely matter
(at Tenant's sole cost and m.cpense) with aU!lOY!!fI'lI1:1!l requirements Oncludl~ but not limited to complianoa
With a111ews. rules. regulatiOns, oidinanoas, directives, covenants, easements. and restrictions of record,
germil!L ~nd the l1l!t\llrements of any app.licable fire insuranoa underwri\8r or retina bureau). Landlord may
but wimout any Jloligatlon to do sol condition Its oonsent, if granted to Tenant'i use of any Hazardous
ubstanoa upon Tenant's giving Landrord such additional assuranoas as liiOdIOiii, in Its reasonable discretion,
deems neoassary to protecr Itself, the pyblic, the Premises. and the enwonment against damage,
contamination, or injury and/or liability theiefor, indudill!l but not limited to the Installation (n, at Landloro's
option, removal on or before Lease expiration or ea~ier termination) of reasonablY naoassary protective
niodifications to the Premises and/or the deposit of an additional Seci!riIY DeP!lSR. ienant shan Iiol cause or
permR any Hazardous Substanoa to be spIUed or released in, on, under, or iIbout the Premises [Including,
without Ilmltstion, 1!vqugh the plumbina or senltsry sewer sY.!ltem).
Tenant shan indefunlfv, protect. iIefend. and hold LanCllord, Its agents. employees.lendera, and ground
Landlord, if any, and the P'remise~..~rmIess from and against any 8nd aU da~. liabilities, iuda~j
costs, daims. liens, ~, penlllWa. loss of pefIT1lts anCl attorneYs' and oonsuItaiiIs' fees arisinli oUt of ana
invoMng and Hazardous Substance Ilrought ontil the Premises by or for Tenant or by anyone under Tenant's
control. Tenant's obligations under this subsection shaD indude. but not be limiteC:I tq. the effects of any
contamination or injury to person, proDertY, or the environment created or suffered by I enant. and the COSt
of investjgation (InCluding consuItlints' ana attorneys' fees and testi~)j removal, rerriediation, restoration,
and/or a1iillemei1l thereOf. or of any oontaminaIion lherein involved, ana shaI SlIiIlve the ~tion or e~ier
termination of this Lease. No telTl1lnation, canoallation, or release agreement entered into by Landlord and
TenantshaD release Tenant from Rs obligations under thIS Lease with respect to Hazardous SubStanoas, unless
specifically so agreed by Landlord in Writing at the time of such agreement
11. Utilities & Services.
Landlord shall be responsible for the payment of the following utilRies and saMoas that serve the Premises,
subject to reimbursement of same as proVided for herein (check those that apply):
o Electricity
o Gas
o Water/Sewer
o Telephone & Data Selvioa
o Trash
9 Security Alarm MonRoring
o Janitorial Servloa & Supplies
Tenant shall be responsible for the direct payrT\8llt or reimbursement to Landlord of the following utilities and
servloas that serve the Premises (check t1iose that apply):
~ Electricity
181 Gas
181 Water/Sewer
181 Telephone & Data Servloa
181 Trash
~ Security Alarm MonRoring
181 Janitorial Servloa & Supplies
I n the event allY of Tenant's afore-mentioned utilRies are not separately metered to the Premises, Tenant shall
PllY at Landlord's Clption, either Tenant's Share or a reasonable proportion to be determined by landlord of aU
Charges joinUy metered with other Premises in the Building.
There shall be no abatement of rent and landlord shall not be liable in a!l)' ~ whatsoever for the
inadequacy, stoppage, interruPtionihor discontinuanoa of any utility or servioa due to not, strike. labor dispute,
breakdown, acaden1\ repair, or 0 er cause beyond Landlord's reasonable control or in cooperation with
governmental reques or directions.
12. Alterations and Additions.
Tenant shall not without landlord's prior written consent make any alterations, improvements.z.~ditions, or
repairs ( . after collectivelY referred to as "Alterations") in, on or about the PremIses or the uepot Should
landlord it Tenant to ma'ke Rs lMKl Alterations, Tenant shall use only conlraclors that are IH:9per!Y and
adequa sed and insured, and Landlord may require Tenant to proVide Landlord, at Tenant's sole cost
and expense, a lien and comllkltion bond in an amount equal to one and one-half times the estimatad cost of
such improvements, to insure landlord against any liability for mechanic's and materialmen's liens and to
ensurecomp.!etion of the work. Any Alterations in or about the Premises or the D!lPot that Tenant shaD desire
to make shall be presented to Laridlilrd in written form, with proP.OSed datailed plans. If Landlord shaD give Its
oonsent to making such Alteration, the oonsent shall be deeineil conditioned upon Tenant acquirillQ a permit
to do so from the applicable governmental agencies, fumishil]g of a ~ thereof to landlOrd pnor to the
commenoament of the work, and complianoa by Tenant of all conditions of said permit in a prompt and
expeditious manner.
Tenant shall pay, when due, all daims for labor or materials furnished or alleged to heve been furnished to
or for Tenant at or for use in the Premises, which claims are or may be secured by any: mechanic's or
materialmen's lien against the Premises. the Building, or the Depo~ or any interest theiilln. Tenant shaD give
Landlord not less than ten (10) days' notioa prior to the commenoamentof any work in the Premises!>y Ter18nI.
and !-and lord shall have the nght to post notices of non-responsibllity in or on the Premises or the Building as
provided by law.
All Alterations which may be made on the Premises by Tenant shall be made and done in a good and
workmanlike manner and of good and sufficient guality and materials and shall be the property of Landlord and
shall remain upon and be surrendered with the Premises at the expiration of the lease term, unless landlord
/nltlal.:
@CltyCom . Multi- Tenant Commlll'ChJl LN._ (rev 4ItU) . Pall- 6
--
--~-~--."_.---
requires their removal pursuant to Section 18.
13. Insurance and Indemnity.
U~itv and p~'&XInsurance -Tenant: Tenant shall provide a certificate of self insurance to Landlord of
not tnan '1, , per occurrence of bodily injwy and proper\y dll!l1898, or Tenant shall, at Tenant's
!lJCP8I1$8, obtain and keep in force du.ring the term of this Lease a poliCY. of COm~hensive General Uability
insurance in an amount of not less lhari $\~!lOO per occurrence Of bodily Injury and properlY ~
combined or in a greater amount as reasona..., aetemiined by Landlord and stiaI insure Teriant wItIi Landlliid
as additional insured !I9ainst liability arisil1ll. Out of the usel occupan.cY., or maintenance of the Premises.
Compliance with the abOve requirement sh8II no~ hc:r.vever, I mil thilliaDUity of Tenant hereunder. Tenant shan
also maintein insurance coverage on all of Tenant's personal proDertv, frade fixtures, and alterations and
if!1provemants in, on, or about tile Premises similar in coverage lei fhal carried by Landlord (such insurance
shilll be fun replacement cost coverage with a deductible not to exceed $1,000 per occurrence, and the
proceeds from any such insurance shill be used excIU8IveIy for the replacement of personal P.rDP.l!rty and the
restoration of trade fixtures, alteralions, and improvernehls). Tlinahl shan deliv8r to Lanillortl Clil1ificates
evidencing the existence and amounls of such insurance within seven (7) days after the CommelIC8l1'18lll Date
of this Lease, and si1all, at least thirty (30) days prior to the expiration Of suCh policies, fumisi1 Landlord with
renewals thereof.
The cost of the premiums for the insurance policies maintained by Landlord hereinafter shall be
a Common Area Operating Expense.
Liabilitv Ins,;nw: - ~rl!o!:ll: Landlord si1all obtain and keep in force during the term of this Lease a policy
of COiii6Inii(I IIJ9 lIm odlly InlurY and Broad Form ProDertv Camage Insurance. Dlus co~e lMlainst
such other risks Landlord deemS advisable from time to time,lnsuring Lanlllord, but not T~ against liability
arisil!ll out of the ownership, use, occupancy, or maintenance of the Capot in an amount not less than
$l,OOU,OOO per occurrence.
ProDertv Insurans:e: Landlord si1all obtain and keep In force during the term of this Lease a policy or policies
of Insurance covenng loss or damage to the Depot ~ments, bUt not Tenant's personal property, fixtures,
~uipl)'1ent or tenant imp.rovements, in an IIl11OI.I'It of the fuI reDlacement cost thereof, as the same m~ exist
from time iO time, proviilif.l!l protection ~ainst all perils Indueled within the dasslflcation of fire, extended
coverage, vandallSl'l1, maliaous mischief, plate glass, and such otl)er perils as Landlord deems advisable or
may be required I1Y. a lender having a lien on 1M ~. In addition, landlord shaI obtain and keep In force,
dunng the term of this Lease, a policy of rental value insurance covering a period of one year, with loss
payal:lle to Landlord, which insurance ShaI also cover all ~ratIna ExIl!lnsas tor said period. Tenant shall not
be named in l!rIY such policies carried !lY Landlord and si1id1 have no right to any proj::eeds therefrom. In the
event that the Premises si1aII suffer any insured ~, the deductible anlot.I1ts uiililr the appllcable insurance
policies shan be deemed an Qperating E.xPen.se. Tenant shal not do or p8,!T11it to be done ariyttling which shall
Invalidate the Insurance policies carlledby Landlord. Tenant shaI pay the entirety of any incresse in the
properlY insurance p.remlum for the DejlOt over what it was immediately -Drior to the cOmmenoemenl of the term
Of this lease if the increase is specified by Landlord's Insurance carrier as being caused by the nature of
Tenant's occupancy or any act or omiSsIon ofTenant.
Wa""r "~broaation: Tenant and Landlord each hereby release and relieve the other, and waive their
entire ngh 0 recovery against the other for direct or COf1S!Kluentialloss or damage arising out of or incident
to the perils co~ bY properlY insurance carried by sucJ:l P!lrty, whether due to lhe negligence of Landlord
or Tenant or their agents, empfoyees, contractors, aildlor InVltees.
Indemnitv: Tenant si1all indemnify and hold harmless Landlord and its agents, Landlord's master or ground
Landlord, partners and lenders, from and against an~and .a11 daims for damage to the pefS9I1 or properlY of
anyone or any entity arising frOm Tenant's use of the l,l!lPQ!, or from the conduct of Tenant's business or from
any activity, Work or things Clone permitted or suffered bY I enant in or about the Prem~s or elsewhere and
shall furthilr indemnify and hold harmless Landlord from and !l9ainst any and all daima, costs and eJCP.Ell1SllS
arising from lII1Y breaCh or default in the performance of any o.l!!!9ation on Tenant's part to be perfonneil under
the terms of this Lease, or arising from any act or omission of Tenant, or any of Tenant's contractors,
em~!JYll!!S, or invitees, and from and against all costs, attoRll'Y's tees, expenses and Ii incurred I?Y
Laridlcird as the result Of a!'lY such use, Conduct, activitY, WllIk; things done permitted or red, breacli,
default, or negligence, and In dealing reasona!llY therewllh, including but not limited to the defense or pursuit
of any daim or any action or proceeding invDlvild therein; and in case any action or oroceeding be brought
!!lIainst Landlord ~ reason of any such matter. Tenant, UJlO!'! notice from Landlord shall defend the same at
Tenant's ~ jjy counsel reasonablY. satisfactory to Llindlord and Landlord si1aj cooperate with Tenant in
such defense. Landlord need not have first paid any such claim in order to be so indemnified.
ExemDlion ~andlOrd from ~ty: Tenant hereby agrees the Landlord shall not be liable to Tenant's busi-
ness or a(IY of Income th m or for damage to the .goods, wares, merchandise or other J1rDperty of
T enanl, wIiilther such d8J'!l898 or injury is caused bY or resuI1lI from fire, steam, electricity, gas, Wliler or rain.
or from the bresks leakage, obslruction or other defects of plJ!8S.L sprinklers, wires, appliances, plumbing,
air conditioniOO or 'n fiXtures, or from ~ other cause, wnemer said dan18ge reSUlts from conditions
arising upon the P or upon other portions of the DepOt, or from other sources or places, or from new
constiUction or the rep'air,- alteration, or improvement of any part of the OepQt, or of the equipment, fixtures,
or ap.p.urtenances applicaDIe thereto, and l'l!9ardless of whillher the cause of such dl!.fT1ll98 or the means or
repairing the same is inaccessible. Landlord ihaI not be liable for any damages arising from any act or "!'lIlect
of any olher T ena~ occupant or user of the De~ nor from the fanure of landlord fo enforce the proviSIOns
of any other lease of any other Tenant of the Depot.
14. Property Taxes.
Real pm Taxes: Landlord si1all P.8Y real property taxes and associated assessments applicable to the
Depot, su I to reimbursement as a COmmon Aiea OperatilJ9 ExDense by Tenant in accordance with the
provisions of Sections 1.09 and 6. Tenant si1all also pay to Landlord the entirety of any Increase in real
proDertv tax if assessed solely by reason of additional improvements placed upon the Premises by Tenant or
at T eminl's request. Real prgpetly taxes shall include any form of real estate tax or assessment, general,
special, Ordinary or extraordinary, and any license fee, commercial rental tax, impl'!lYement bond or bonds,
I!NY or tax (other then Inheritance, ~rsonallncome, or astale lalcesl ifI1posed on the Depot or any portion
thereof by any authority having the cllred or indirect power to tax, including any city, county, state or federal
government, or any school, agriculture. sanitary, fire, street, drainage or olher improvement district thereof.
Pmal P~r:!Y Taxes: Tenant si1an pay prior to delinquency all taxes assessed against and levied upon
trade ures, mlshlngs. equipment and ali other personal property of Tenant contained in the Premises or
elsewhere.
15. Assignment & Subletting.
Initials:
@CItyCom . MuItJ. Tenant Commarc/al Lease (rev 411U) . Page 7
"_~"C.P~".""~_,,.., '" .
.._.,...~...
. ..,.w' "...
Tenant shall not voluntarilY or by ~tion of law assign, transfer, mor!lIage, subIeI, or otherwise transfer or
encumber all or any pa~ of Tenant's interest in the Lelise or in the Prenilses, wIlhoul Landlord's priQ.l: written
consent which Laridlord shaI not unreasonably withhold (however, Landlord _ the right to c:cindition any
apJll'!lval to a~n or sublet !JPOl) Landlold's detennlnation that (a) the llI'OllOS8d asajgnee or subtenant shall
condud a business on the Premises of a qual~nliaIly equal to thai of Tenant iInd consislenl with the
general charader of the other occupa(1ts of the and not in \/IoIation of lIlY exclusives or rights then held
Dy other tenants, and ~) the pl'OllQ.8ecl assignee or subtenant be at least as flrianciaUy = as Tenant
was elCll8Cled to be at die time Of the 8lC8Clilion of this Laase or of such assignment or s " whichever
is greater). Reganlless of Landlord's consent, no ~nment or IlJb!elling ihaI releasa T of Tenant's
obf'1Qali<!nS heriiunder or alter the pri~ liability, of T'enant to pay the nint and other sums due Landlord
heriiunder induding Tenant's Shari! of operating~ Increase, and to p,erformall other obligations to be
performed by Tenant hereunder. If Ten8nt's. QIlIigallons under this Laase haw been llYlIrantied by third
parties, then an ~nment or subleasa, and l.ari'dIord's consent thereto, shaI not be etfecliva I.rillis said
guarantors give their Written consent to such sublease and the lBnns thereof. The consent by l.l!ndtord to any'
assignment or subletting shal not constitute a consent to any UlIequent ~ or sulllelling by Tenarn
~a~lllm~~~~~~minta. Ifk!fd':::=party~~
consent of~ndlord for a p assignment or subletting, then Tenant shal pay Landlord's reasonra: costs
and ~ incurred in connection therawllh, indoolng attorneys', ar'chlteds', engineers', or other
consulllints' fees.
In the event of any defauR under this Laase, Landlord may proceed di~ !I!Iainst Tenant, any guarantors
or anyone else responsible for the perfonnanoe of this Laasa, Ind!llfing the SUblilnant, without firat ixhausting
Landlord's ramedies againat any other person or el)lity I'l!.8POnsIbIe therefor to Landlord or any ~ heIa
by Landlord or Tenant The discovery of the fad that!I'!Y financial statement relied upon bY Laridlold in givirlg
its consent to an ass!gnment or subletting was materially false shall, at Landlord's election, render Landlord's
said consent null and void,
16. Default; Breach; Remedies.
Ten~3~fa~~The occurrenoe of anyone or more of the following events shall constitute a
maten uIt by Tenant:
(a) The breach by Tenari! of any of the covenants, condRions or provisions contained within this Laase,
where sUch breach is of an incurable nature.
(b) The failure bv Tensnt to make any paYJ!ll!nt of rent or any other payment required to be made by
Tenant tiereunder, ana as when due, where such failure shall continue fOr a period of thrae (3) days allEir
written notice thereof from Landlord to Tenant. In the event that Landlord serves Tenant with a Notice to Pay
Rent or Qun pursuant to awlicable Unlawful Detainer statules such Notioe to Pay Rent or Quit shall also
constitute thei notioe reguireil by this subparagral!h.
(c) The failure of Tenant to observe or P.eifQrm any of the covenants, conditions, or provisions of this
Lease to be obsalved or ~rfonned by Tenar't, where such failure is aJraDIe in nature and continues for a
period of thirty (30) days after written notice theraof from Landlord to Tenant; ~, however that if the
natu~ of Tenant's noncompliance is such that more than thirty (30) days are reasona!!!y. raquired !'or its cure,
then Tenant shal not be deemed to be in default if Tensnt commenoed such cure witliin said thirty (30) day
period and thereafter diligently pursues such cure to completion. Such th[rty (30) ~ notioe shalr constiMe
the sole and exduslve nolioa raquired to be given to Tenant under applicablil UnlawfUl Detainer statutas.
(d) The discovery by Landlord that any financial statement given to Landlord !Iv Tenant, or Rs sucoassor
in interest or by any guarantor of T enanfs obligation hereunder, was materially false.
Landlord's ~ultlBreach: Landlord shan not be in defauR unless Landlord' faiis to perform obligations
requlI'lid of La lidWitliiiii reasonable time, but in no event later than thirty (30) days after written nolice by
Tenant to Landlord; provided, however, that if the nature of Landlord's obligaflori is such that more than thirty
(30) days are [e!luired for perfonnanoe then Landlord shall not be in defauR if Landlord commenoes
performance within such thirty (30) day period and thereafter diligently pursues the same to completion.
R=ieI: In the event of any material defauR or breach of this Lease by Tenant, Landlord msy at any time
therea , With or without notice or demand and without limiting Landlord in the exercise of any right or remedy
which Laridlord Il1!IY have !?y reason of such defauR:
(a) TenninateTenanfs rightto ~ion of the premise~any lawful means, inwhich case this Lease
and the tenn hereof shall tel1T1lnate and Tenant shaM immedi surrender ~on of the Premises to
Landlord. In such event Landlord shall be entitled to recover from enant all damages incurred by Landlord by
reason of Tenanfl defauR including, but not limned to, the cost of recovering I108Sl!saion of the Premises;
expenses of reletting induding necessary renovation and aReration of the Premises, recapture of any
inducement such as abated renf periods, reasonable atlolTlE!Yl!' feel, and any real estate commission actuallY
paid; the worth at the time of award of the court I)aving jurisdiction thereof thei amount by which the unpaid rent
for the balance of the term after the time of such await! exceeds the amount of such rental loss for the same
period that Tenant proves could be reasonably avoided; that portion of the leasing commission paid by Landlord
applicable to the UIJ!lXPired tenn of this Lease.
(b) Maintain Tenanfs right to possession in which case this Lasse shan continue in effect whether or not
Tenant shaD have vacated or abandoned the Premises. In such event Landlord shall be entitled to enforce all
of Landlord's rights and remedies under this Lease, induding the right to recover the rent as R becomes due
hereunder.
(c) Pursue aryy other ~ now or hereafter available to Landlord under the laws or judicial decisions
of the slate wherein the Premises are located. Unpllid installments of rent and other unpaid monetary
obligations of Tenant under the tenns of this Lease shall bear interest from the date due at the maxinum rate
then allowable by law.
~haraes: Tenant hereby acknowledges that the late payment by Tenant to Landlord of Base Rent,
T snare of Operating ExPense Increase or other sums due hereuniler will cause Landlord to incur costs
not contemoIated bv this Laasa, the exed amount of which will be extreR.Jllly difficuR to ascertain. Accordingly,
if any InataDment of Base Rent, Operatilg Expense Increase, or II!1Y other lum due from Tenant shall nofre
receIved by Landlord or Landlord's designee Within five (5) days after such amount shal be due, then, without
any requirement for notioe to Tenant, Tenant shaM pay to landlord a late charge equal to IIx percent (6% I of
suCh owrdue amount. The parties hereby agrae ttiat such late charge represents a fair and reasonable
estimate of the costs Landlord will incur by reason of late PlI~nt bv T ei1anl Acceptance of such late charge
by Landlord shal in no event constitute a waiver of Tenaht's defauR"with respect to such overdue amount, nor
prevent Landlord from exercising any of the other rights and remedies granted hereunder.
17. Estoppel Certificate.
Each party (as "responding party') shan at any time Ul!on not less than ten (10) days' prior written notioe from
the otheir partY C'requesti!'19 party'1 execute, aCknowledge, and deliver to the raquesting party a statement in
writing (i) oerfifyirnl that thIS Lease is unmodified and in full force and effect (or, if modified, stating the nature
of suCh modificatiOn and certifying that this Lease, as so modified, is in fulllorce and effect) aoothe date to
Initials:
@cltyCom " Mufll. Tenant CommllTC/al Lease (rev 4/04) " Page 8
_~.. ,u"".
which the rent and other charges are paid in advance, if any, and (ii) acknowledging that there are not, to the
rel!JlOndi!)9 party's ~; allY. uncured defaults on the p'art of tI)e requesti~rty. or sqecifving such
defaults if !lIlY are ~~ fF\rroJ suCh statement may be lXlI'1Cluiivelv relied upon by prospldive purChaSer
or encumbnincer of the ~t or of the business of Tenant. No the regulistil1lll1!l s ClPliQn, the failure to
deliver such statement within such tine shaD be a material default of this lease Dy the partY who is to 1llSpOI)d,
without aflY further notice to such party, or it shall be conclusive UP.QI1 such pai1y thiIt ~J this Lease is in full
force and effect, without modification ex!l8lll as may be representeil by the req!l8Slil1ll P8!:1Y. (ii) there are no
uncured defaults in the requesting party's performance, alid ~ii) if Lani:llord is the requesting party, not more
than one month's rent has been paid iri advance.
18. Surrender; Move-out
On the last day of the term hereof or on a!)Y. sooner termination, Tenant shall surrender the Premises to
Landlord. which shaD indude the re\um of all keys and access control devices. in the same condition as
received, ordinary wear and tear excepted, dean and free of debris. IVJy damage or deterioration of the
Premises shan nOt be deemed ordinary wear and tear if the same could haw !leen prevented by good
maintenance practices by Tenant. Tenant shaD repair any dlll)1!lllfl to the P~ occasioned bY the
instaUation or removel of Tenant's trade fixtures, alterations, fumishlngs and equiDmenl. and shallea\ie the
HVAC eauipment, power parlIlls, electrical distribution systems, lighting fixtures and lamps, window coverings,
waI alJd lloor c:;<!verings, ceilings, plumbing fixtures, and all other building systems in lhe Premises in gOOd
operating condition.
19. Holding Over.
1fT enant, with Landlord's consent. remains in possession of the Premises or any partthereof after the expira-
tion of the term hereof, such occupan~ shall be a tenal19Y from month to month UI!Qr1. aU the provlsiona of this
Lease pertaining to the obligations of Tenant, except that tIie rent payable shalbe 100% of the rent immedialelv
preceding the termination date of this Lease, and all PP.lions, if any, granted under the terms of this Lease shall
be deemed terminated and be of no further effect during said month to month tenancy.
20. Substituted Premises.
Landlord reserves the right, upon not less than sildy (60) days prior written notice to Tenant, to substitute for
the Premises some o4her premises within the Building havi!1ll substantially .!l<llivalent net rentable area as the
Premises, subject to a 15% variation, ~ thaf LandlOrd shaI pay aU 8lCP8I1S8S reasona!llY incurred in
relocating Tenant's property to such new location. and upon the expiralion of such written notice such other
premises shal be substituted for the Premises for all P!JI"POses under this Lease. Landlord shall not be obligated
to Tenant for any lossas resulling from the substitlition of Premises, and Tenant agrees to hold LanCllord
harmless against any such losses.
21. Landlord's Access.
Landlord and Landlord's agents shall have the right to enter the Premises at reasonable time for the purpgse
of inspecting the same, performing any services required of Landlord, showing the same to prt!spedive
purchasers, lenderslor tenants, making such alterati0ri8, repairs, imP!'OV!lll!l!l1l, or additions to the Premises
or to the DeWt as andlord may reasonably deem necessary or desirable and the erecli!19, usil)ll, and
maintaining of utilities, services. pipes, and conduits thl9Ullh the Premises and/or other premises as lOng as
there is no material adverse effeCt to Tenant's use of the PreInlsas. Landlord may at any tine place on or about
the Premises or the Building any ordinary "For Sale" !IiIIns and Landlord may at ~ tine durirlg the last 120
days of the term hereof place on or about the Premises any ordinal)' "For Lease' signs. All activities of
Landlord pursuant to this paragraph shaD be without abatement of rent; nor shaD Landlord ha\I8 any liability to
Tenant for the same.
Landlord shall haw the right to retain ~ to the Premises and to unlock all doors in or upon the Premises
other than to files, vaults, and safes, and In the cese of emergenpy to enter the Premises bY any' reasonably
!lppropriate means, and a[1Y such entry shall not be deemed a fOrcible or unlawful entry or detainer of the
Premises or an eVIction. Tenant waNes any charges for damagas or injuries or interference with T enanfs
property or business in connection therewllh.
22. Security.
Tenant hereby acknowledg!!s that Landlord shaD have no obI!gation whatsoever to provide guard service or
other security measures forlhe benefit of the Premises or the DiPot. Tenant assumes aU responsibililY. for the
protection of Tenant. Its agents, and invitees and the orooertv of Tenant and of Tenant's 1IIlllI'\ls and invitees
from acts of third parties. NQlIiing herein contained ShaD ~nt Landlord. at Landlord's sole option, from
providing secui}1y protection for the DeDOt or any...partthereof, in which event the cost thereof shal be Inauded
within the definition of Common Area Operating Expenses.
Tenant shall not permtt anyone, ex~ in emergency or with Landlord's prior approval, to go upon the roof
of the building nor to access electrical, utility, elevator, machinery or equipment rooms.
23. Signs.
Tenant shall not place any sign upon the Premises or the Depot without Landlord's prior consent. Under no
circumstances shall Tenant place a sign on any roof of the Depot. Lettering on directory or monument signs,
if applicable and which must be expressly approved herein, shall be provided by 0 Landlord IllI Tenant, and
shall conform to the DeP9t s.ign criteria. fn the event Tenant is ~rmitted signage on the Building exterior, such
signage shall be SUbjeCt to the ~t sig(1 criteria and in accordance with al1P!!cable codes, requirements, and
govemmental approval of the CitY in which the Building is located. The inStiIIlation. maintenance, repair. and
removal (induding any underlying damage caused by removal) of such exterior ~n!llle shaI be Pf.Ovided by
Tenant, at T enanfs sole cost and expense. Failure to maintain such signage shall, at landlord's option, result
in forfeiture of the sign posltion(s) arid removal of existing signage (arTenanfs cost).
24. Subordination.
This Lease, and any Opt!on or first refusal granted hereby, at Landlord's option, shall be subordinate to any
ground lease, mortgage. deed of trust, or any other hypothecation or secumy now or hereafter placed upon
the DeJlO.!. Notwilhslandil)ll such subordination, TenanYs right to quite posses8!on of the Premises shall not be
disturlied if T enent is not in default and so long as Tenant sI\aII pay the rent and obser\18 and ~rform aI of the
provisions of this Lease unless otherwise teiminated Jll.lIlIw.Iilt to its terms. Tenant agrees to execute any
documents required to effectuate an attomment, a subOrdination or to make this Lease or any 9Ption granted
herein prior to the lien of any mortgage, deed of trust, or grouiii!lease, as the case may be. Tenant's failure
Initials:
@C1tyCom . MuJtJ. Tenant Commercial Laasa (rev 4/(4) . Page 9
-. ,. .~"~'=~~".
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to exea.rte such dOC1Jments within ten (10) d!l}'S after written demand shal constitute a material default by
Tenant heIeunder without further notice to Tenant or, at Landlord's option, Landlord shall execute such
dOC1Jments on behalf of Tenant as Tenanfs attorney-in-fact.
25. Options.
IV> used in this pal'l\9raph the word "Optjon" has the following meaning: (1,1 the right or option to extend the
term of this Lease or to renew this Lease; (2) the option or riahf of first reluS8 to lease the Premises or the rjght
of first offer to lease the Premises or the riilfrt of first refusallo lease other space within the Depot or the nght
of first offer to lease other space within tfIe ~; (3) the rigtlt or oP!ion to pl!rchase the Piemlses or the
DeP9t, or the right of first refUsal to purchase the Premises or1he Depot, or the right of first offer to purchase
the Premises or Depot.
Each Option granted to Tenant in this Lease is personal to the original Tenant and may be exercised only by
the oriainal Tenant while occupying the Premises. In the event th8t Tenant has ml!ltiple optioI}s to exterid or
renew This Lease a later opliori cannot be exercised unless the prior option to extend or renew this Lease has
been so exercised. AU rights of Tenant under the proyisions of an QplIQn shall terminate and be of no fuIlher
force or effect, notwithstlInd!ng Tenanfs due and tifTIeIy exercise of Uie OptiQn, if, during the term of this Lease,
(il Tenant failS to pay Landlord a monetary obIiIIallon of Tenant for a period of thirty (30) day's after such
obligation becomes due (without any nac:es8!tY of Landlord to ghie notice thereof to Tenant), or (in Tenant fails
to commence to cure any curable defaull or breach of the provisions of this Lease within tIii~ (30) days after
the date that Landlord gives notice to Tenant of such defaull and/or Tenant fails thereafter to dUKKintlV ~
said cure to I:OI1lpletion, or (Hi) Landlord gives to Tenant three or more notices of defaull for tfIe nOn~nt
of ren~ whether or not the defaults are W'ed, or (IV) if Tenant has committed any non-curable breacli or is
Otherwise in defaull of any of the terms, covenants, and conditions of this Lease.
My and all Options granted to Tenant, if any, are hareby presaibed as follows:
Provided Tenant is not In default or has not commltt8d a default during the term of thla L_,
Landlord hereby grants Tenant the rlaht to extend the term of this ~ tor ftve(5) additional periods
of one (1) year NCh. In order to exen:lee.uch OIIlIon, Tenant must notify Landlol'd; In writing, no later
than nlll4!lY. (10) ~. ~or to the ex~ of the original term, of 1tI1ntant to exercise thll Option
to Extend. Failure to nOtIfy Landlord 88 stIp!!latad shall; at Landlord'. dlacretlon, automatically cancel
Tenanr. rights hereby granted under thIS Option.
26. Damage or Destruction.
In the event the Premises sustains damages of less than fifty percent (50%) of its then replacement value,
then Landlord shaH repair such darnaQlt (except for Tenanfs ilTllll9vements, trade fixtures alid equiJlm!!nt) as
soon as reasonably poslIible, and thisLease shall continue in fuI force and effect, and Rent and othI!r charges
shaH be abated in proportion to the degree to which Tenant's use of the Premises IS impaired. In the event such
damages are uninsured, Landlord may elect not to restore and repair the Premises, in which case this Lease
shallliil terminated. In either case,\ if sUch damages or destruction was caused by a negligent or willful act of
Tenant, then Tenant shall make an necessary repairs and restorations at its sole cost ana expense and this
Lease Shall continue in full force and effect with no abatement of rent.
In the event the Premises sustains damages of more than fifty Jl8f'll!!nt (50%) of its then replacement value,
(unless caused by a negligent or willful aefof Tenant in which case Tenant stiall make all necessary repairs
and restorations at its sole cost and e~nse and this Lease shall continue in full force and effect with no
abatement of rent), this Lease shall termlhate sixty (60) days following the date of such damage or destruction.
27. Eminent Domain.
Eminent domain proceedings resulting in the condemnation of l1art of the Premises herein that leave the
remaining DOrtion usable bY Tenant for PUl)J!lses of the business for which the Premises are leased will not
terminate this Lease. If Tenant determines that the remaining pof.lion is not reasona!llY usable, Tenant Il)!IY
terminate this Lease bY giving written notice of termination to [andlord no more than ninety (90) days after the
notice of condemnation or taKing. The effect of such condemnation, should Tenant not terminate this Lease,
will be to terminate this Lease as to the portion of the Premises condemned and leave it in effect as to the
remainder of the Premises, and the Rent and all other ~ provided for herein shall be adjusted
accordingly. Compensetion awarded as a resull of such coridernnation shall belong to Landlord /inCluding
damages fOr the bOnus value of Tenanfs leasehold im~) ~ to the extent that part of the awalil
is alloCated as damages to fixtures of the Depot whicli were fumiShed bY Tenant, or expenses for Tenanfs
relocation,
28. General Lease Tenns:
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.
Time of Essence. Time is of the essence with respect to the obligations to be preformed under this Lease.
Additional Rent. All monetary obligations ofT enant to Landlord under the terms of this Lease, induding but
not limited to Tenanfs Share of Operating Expense Increase and any other expenses payable by Tenant
hereunder shall be deemed to be rent.
Prior Agreements: Amendments. This Lease contains all agreements of the parties with resoect to any
matter mentioned herein. No prior or contemporaneous agreement or understanding pertaining to any sUch
matter, indudingbut not limited to Letters of Inten~ Proposals to Lease and other doCUmentation associated
with the negotialion of this tenancy, shall be effective. This Lease may be modified in writing only, signed by
the parties In interest at the time of the modification. Except as othenNl&e stated in this Lease, T enenf herebY
ackilowledges that no real estate broker on this transaction nor the Landlord or any emp~ or agents of any
said ~ons has made any oral or written warranties or representations to T ensnt relative to the condition or
use by Tenant of the Premises or the Depot and Tenant aCknowledges that Tenent assumes all resP9nBibility
regaming the Ieoal use and adaptability of the Premises and the coml1liance thereof with all applicable laws ani!
regulations in effect during the term of this Lease. induding but not limited to the Occupallonal Safety Heallh
Ad. and the Americans W11h Disabilities Act ("ADI\'1,
Notices. Nw notice required or permitted to be given hereunder shall be in writing and may be given by
personal delivery or by certified or registered mall, and shall be deemed sufficiently given if delivered or
addressed to T enent or to Landlord at 1he address noted below. Mailed notices shaH be deemed given uWn
actual receipt at the address required, or fortv-eight hours following deP.9sit in the mai~ postage prepaid,
whichever first occurs, Either party may by notice fo the other specifY a different address Tor notice purposes
InltIa/s:
@CltyCom . Multi- Tenant CommercIal Leu. (rev 4104) . Page 10
'ee~~~,_"" _ ,
_.'
~ that upon T enanfs lakina possession of the Premises the Premises shall constitute Tenanfs address
for notice 'purposes. A copy oraD notices I'!!<luired or pl!nnilt8d to be ~ to Landlord henlunder shaD be
concunenuy ti'ansmllled to such party or parties at such addresses as Laiidlord may from tine to tine hereafter
designate bY notice to Tenant.
Walv..... No waiver by Landlord or any provision hereof shall be deemed a waiver of any other provision
hereof or of any su~uent breach by Tenant of the same or any other PI'!lI!ision. Landlord's consent to, or
approval of, any act shiIU not be deeined to render unnecessary the oblaining of Landlord's consent to or
approval = sul1sequent act by Tenant The acceptance of rent hereunder by Landlord shal not be a waiver
of any p ing breach by Tenant of any provision hereof, other than the 18ill.l'8 of Tenant to pay the
particular rent so accepted, regardless of Landlord's knov.1edge of such preceding breach at the time of
acceptance of such rent.
Cumulatlv. Remedies. No re~ or election hereunder shall be deemed exclusive but shall, wherever
possible, be cumulative with all other remedies at law or in equity.
P.rformance Under Protest. If at any time a dispute shall arise as to allY. amount or sum of money to be paid
by one party to the other under the provisions hereof, the party against vihom the obligation to pay the money
is assailed ShaD have the !!ght to make P!lyrI1!lnt "under proteSt" and such P!lymt!Ill Shall not be regarded as
a wluntarypayment, and tIfere shall survive the right on the part of said part)' to inalitute suit for recovery of
such sum. If ~ shall be adjusted that there was no legal obligation on the part of said partY to pay such sum or
any part thereof, said party ~~ be entiU!ld to recover suCh sum or so much thereof as if ~ was not legally
reqUired to pay under the proVISions of thiS Lease.
Cov.nants and Conditions. Each provision of this Lease perfonnable by Tenant shaD be deemed both a
covenant and a condition.
Binding Efl'ect: Jurisdiction. This Lease shall bind the parties, their personal representatives, successors,
and 8SSlllns. This Lease shall be governed ~ the laws of the State where the Cep,ot is located and any litigation
concerning this Lease between the parties liereto shall be initiated in the countY in which the Depot IS loCated.
Atto~'s F_. If e~er party bril)!ls an action to enforce the terms hereof or declare rights hereunder .!~
prevailing party in any such aclionA 1ii!!1 or appeal thereon, shall be e~ to his reasonable allorneys' ltleS
to be pard by the losing p'arty as nxea ~ the court in the same or a separate suit and whether or not such
action is DIriued to deasion or judgment: Landlord shall be enlitIed to reasonable attorneys' fees and aI other
costs and e~ incuned in the preparation and service of notice of de18uR Qncludlng but not limited to
notices requited under the Unlawful Detainer statutes) and consuRations in conneCtion theiewilh, whether or
not a legal transaction is subseqlJenlly commenced In connection with such default. The costs, salal)' and
experlSl!s of the City AlIomey and meri1bers of his office in enforcing this contract on behalf of the City of San
Bernardino shall be considered as "attorney's fees" for the purposes of this paragraph".
Consents. Wherever in this Lease the consent of one party is required to an act of the other party such
consent shall not be unreasonably withheld or delayed.
Guarantor. In the event that there is a guarantor of this Lease, said guarantor shall have the same obligations
as Tenant under this Lease.
Autho~. The individuals executing this Lease on behalf of the Landlord represent and warrant to Tenant that
they are fuUv authorized and leaallV capable of executin,g this Lease on behalf of Landlord and that such
execution is binding upon all parties holding an ownersh(p IIlterestin the CellO!. 1fT enant isa corporation, trust,
or general or IimiteC:l partnership, Tenant. and each individual executing this Lease on behalf of such entitv
represent and warram that sucli individual is duly authorized to execute and deliver this Lease on behalf of such
entity.
Conflict />,ny conftid between the printed provisions, Exhibits, or Addenda of this Lease and the typewritten
or handwritten provisions, if any, sliall be controlled by the typewritten or handwritten provisions.
Multipl. Parties. If more than one person or entity is named as either Landlord or Tenant herein, except as
otherwise ~Iv plQvided herein, the obligations of the Landlord or Tenant herein shall be the joint and
several responsibifrty of all persons or entities named herein as such Landlord or Tenant, respectively.
ATTACHMENTS:
Attached hereto are the following documents which constitute a part of this Lease:
Exhlbll"A" . Rules and ~ulatlons
Exhlbll"B" . nntsntlonally omitted]
Exhibit "C" - Site Plan
Exhibll"O" - Scope of Tenant Improvements
ADDITIONAL TERMS:
29. Condition of PllImlseslTenant Imerovlll1l8nts. Landlord shall provide Tenant ImlJ!'OV!ll!1lll1 to the
Premises in accordance with exhibit 0" - Scope of T_nt Improvement., attaChed hereto. AnY.
improvements beyond such landlord's worK that would irMlIIIe 8fIY structural modificetion or actual
reconfiguration of the walls or ceiling muat be alllll'OV8d by Landlord In advence, and such work must be
perfonned by a Iawfi!!!y licensed and adeauatelv' Insured contrador and in accorilance with .1lovemmental
Illltulations and ~Rlillg re!ll!irements. FURT1-IEJ3, I>H( IMPROVEMENTS TO THE PREMISES MUST NOT
IMPAIR THE HISTORICAL SIGNIFICANCE OF THI: DEPOT.
30. T.nant's Contribution towards Improv.ments. Tenant shall contribute $25,000 towards the costs of
Tenant Improvements, payable as a reimbursement to Landlord upon substantial completion of such worK.
Initials:
@CltyCom . Multi- Tenant Commercial Lease (rev 411U) . Page 11
.~~,.
. .
LANDLORD AND TENANT HAVE CAREFULL YREAD AND REVIEWED THIS LEASE AND EACH TERM
AND PROVISION CONTAINED HEREIN ANQI. BY EXECUnON OF THIS LEASE,j. SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THCltETO. THE PAR'l1ES H~AGREc ~!'_~:r.IHE
lWE THIS lEASE IS EXECUTED THE TERMS OF THIS LEASE ARE C ClALL Y I'U:lUtUnADLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANTWITH RESPECT TO THE
PREMISES.
THIS LEASE HAS BEEN PREPARED FOR SUBMISSION TO YOUR ATTORNEY FOR APPROVAL. NO
REPRESENTAnoN OR RECOWENDAnON IS MADE BY THE REAL ESTATE BROKERS ORANYOF
THEIR AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFlCIEN9.....LI!GAL EFFECT~R TAX
CONSEQUENCES OF THIS LEASE OR THE TRANSAcnON RELAnNG I "cRETO.THE PAR JII:ltSHALL
RELY SOLELY UPON THE ADVISE OF THEIR OWN LEGAL COUNSEL AS TO THE LEGAL AND TAX
CONSEQUENCES OF THIS LEASE.
Landlord: Tenant
San Bernardino Aaoclat8d Governments San Bernardino Police Department
a California Joint 1lO\N8'" agency ISANBAG)
clo City Commercial Managern8n{
By: By:
By: By:
Executed on Executed on
Initials:
@CltyCom . MultJ. Tenant Commen;/al Lease (rev 4104) . Page 12
~._.
. "
EXHIBIT "A"
RULES AND REGULATIONS
GENERAL RULES
1. Tenent shall not sulfer or pennlt the obstruction of any Common Areas.
2. Landlord rasarves the right to refuse access to any persons Landlord in good faith judges to be a threat to the safety,
reputation, or proparly of the Depot or Its occupants.
3.. Tenant shall not make or penn~ any noisa or odors that annoy or Interfere with other Tenants or persons having business
within the Depot.
4. Tenan,t shall not kaep animals or birds within the Depot lunless a part 01 approved use as per Section 9 of this Lease), and
shall not bring b1cydes, motorcydes, or other vehlcle$lntb areas nOt des gl1Eiiled as autnortted fOr same.
~J'Tr.::=.')J r.r~~~\m.~dl~~~t~~Pr~\3~re I~ ac~g>~'l:.tlle'~N.W~~f:~~W.rJeJtt\\l~. ~'t':.r.s~%l ~:\o~~~
an othar refusa shall be bro~en down prior to In IIie containers. Tha outside areas Immediately adjoining the premises
shall be kept clean and free from dirt and rub y anant to the satisfaction of Landlord.
6. Tenant shall not alter any exterior lock or Install new or additional locks or bolts on exterior doors without providing Landlord
copies of same.
7. Tenant shall not deface the walls, partitions, or other surfaces of the premises or the Depot.
6. TLenent shall not employ any service or contractor for services or work to be perfonned In the Building, except as approved
by anClord.
9. Tenant shall return all keys, Including duplicates, at the termination of Its tenancy and shall be responsible for the cost of
replacing any keys that are fost.
10. No window coverings, shades, or awnings shall be Installed or used by Tenant without Landlord's prior approval.
11. No Tenant, employee, or Invitee shall go upon the roof of the Building without Landlord's prior approval.
12, Smoking shall be ntsl/icted to d,slanated smoking areas, II any, and then not near, doors, windows, or other entrances,
eXits, or openings to otner units within 11Ie Depot
13. Tenant shall not Install, maintain, or operate any vending machines upon the Premises without Landlord's written consent.
I,~J;~~ G~I"~"i:t:~~~~ot be used for lodging or manufacturing, cooking, or food preparation, except as an approved Use per
15. Tenant shall comply with all safety, fire protection, and evacuation regulations established by Landlord or any appllceble
governmental agency.
16. Landlord reserves the right to waive anyone of these rules or regulationsband/or as to any particular Tenant, and any such
waiver shall not consUtute a waiver of any other rule or regulation or any au sequent application thereof to such Tenant.
17. Tenant assumes all risks from theft or vandalism and agrees to keep Its Premises locked as may be required.
16. Landlord reserves the right to make such other reasonable rules and regulations as It meyfromtime to time deem necessary
for the appropriate operation and safety of the Depot and its occupants. Tenant agrees to abide by these and such rules and
regulations.
L19. Slans shall con~olm to sian ,,"terla establl"'ed by Landlord and s~,1I not exceed the auantitv or dimensions authorized bv
andlOl'd. No signs other tha"h SIgns that str1~ .conform to Sign ente"a" placardS, picture' adv6rt1sements. names, or notice'
shall be Insaiblld, Isplayed, pafnted, oratllxed on or to any part of the outside or .nside orthe Bulldlna or within the Common
Areas of the Dep<!l. Lanalord shall have the right to remove any such non-conforming signs without notice to Tenant, at the
expense of Tenant.
20. Tenant shall not disturb, solicit, or cenvass any other Tenant within the Depot.
21. Unant, Its contrectors, employers, or Invltees, shall not loiter In the Common Areas of the Depot or in any wey obstruct the
entrances and driveways.
22. No antenna, aerial, discs, satellite dishes, or other such device shall be erected on the roof or exterior walls olthe Building
without Landlord's express consent.
PARKING RULES
1. Parking areas shall be used only for parking by, vehicles no longer than full size, passan9'!r automobiles, non-commerclal
plck.,up Iril~!,. and !I1,ort utilltv vehfct.. he,rein eel ed "Pennltted Sizi Vehicles". Vehlclas other than Penn~ted Size Vehicles are
herein refellllN to as 'Oversited VehiCles.
2L:renant shall not permit or allow any vehicles that belona to or are controlled bv Ten,nt or Tenanrs employees, sugrllers,
snlp~rs, customs", or Invdees to be" loadlo, unloaded, of parked In areas otherlhan those designated by Landlord f such
activities.
3. Parklna stickers pr Identlflcatlon devices shall be the properlY of Landlord and be returned to Landlord by tbe holdef thereof
upon termination of the holdefs p'aoong privileges. TenanfwUrpay such replacement Charge as Is reasonllbty established by
Landlord for the loss of such devices.
4. Landlord reserves tha riaht to ",fuse the sale or Issuance of Identlflcation devices to any person or entity that willfully refuses
to comply with the appllca51e rules, regulations, laws, andlor agreements.
5. Landlord resarves the rightto relocate all or a part of p'arklna spaces, and to reasonable allocate them between compact and
standard size spaces, as long IS the same complies With applicable laws, ordinances, and regulations.
6. Use... of the parking area will obey all posted signs and park only In the areas designated for vehlcte parking.
7. Unless otherwise instructed, aven- pe",on using the parking area is reaulred to park and lock his own vehicle. Landlord will
nol be responsible for aoy damaae to vehlctes,inlyry to ",,~n'!, or loss of properlY, all of which risks are assumed by the party
uSing the parking area. NO ovenllght parking 15h'" De permitteu.
8. The maintenance, washing, waxing, or deaning of vehldes In the parking structure or Common Areas is prohibited.
9. Ten~nt shall be responsible for seeing that all ollts employees, agents, and invitees comply with the appllceble parking rules,
regulations, l&ws, and agreements.
10. Landlord reserves the right to modify these rules and/or adopt such other reasonable and non-dlsaiminalory rules and
regulations as It may deem necessary for the proper operation of the parking area.
11. Such parking use as Is herein provided Is Intended merely as a license only and no bailment Is intended or shall be created
hereby.
12. Violation of any of the parking rules or regulations may result, without notice, In the towing of any of Tenant's vehicles lor
Tenant's employees, Invltees, contractors, or visitors), the cost of which (Including Impound fees) shall be the sole responslbifity
ofTenant.
Initials:
@CllyCom . Multi- Tanant Commwc/al Lea.. (fflV 4/fU) . Page 13
EXHIBIT "B"
[intentionally omitted]
Inltlsls:
@CltyCom . Mu/IIo Tenant CommfITC/al L_a (I8V 4IrU) . Page 14
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Site Plan
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Exhibit "0"
Scope of Tenant Improvements
1. Construction of demising walls & doors in accordance with the space layout indicated below
2. Install new flooring
3. Paint interior walls
4. Construct partitions for two offices and one storage room
5. Construct one restroom (incl one lavatoryifaucet, one water closet, one insta-hot water heater)
6. Add/relocate fire sprinklers as relluired
7. Install finished ceiling (either t-grid acoustical tiles or painllfinish existing open ceiling)
8. Provide HVAC ducting & diffusers (extended from existing building system)
9. Install light fixtures & switches throughout
NOTE: DETAILSAND SPECIFICATIONS TO BE IN ACCORDANCE WITH MUTUALLY AGREEABLE
SPACE PLAN (PENDING).
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Initials:
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@C1tyCom . Multi- Tenant CommercIal Leas. (rev 4/IU) . Page 18