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Home My WebLink About1989-451 .' 1 RESOLUTION NO. 89-451 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH STERLING PLAZA PARTNERS TO LEASE 3 CERTAIN REAL PROPERTY AND ESTABLISHING AN ADDITIONAL POLICE COMMUNITY SERVICE OFFICE FOR AREA "E". 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 5 OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor is hereby authorized and directed to 7 execute on behalf of said City an Agreement with Sterling Plaza 8 Partners, a California General Partnership, to lease certain real 9 property located at 2025 East Highland Avenue, Suite "G", San 10 Bernardino, for a Police Community Service Center for Area "E", a 11 copy of said agreement is attached hereto, marked Exhibi t "A", 12 and incorporated herein by reference as fully as though set forth 13 at length. 14 SECTION 2. The Mayor and Common Council hereby authorize 15 the establishment of an additional Area "E" Communi ty Service 16 Office at the Sterling Plaza Shopping Center at 2025 East 17 Highland Avenue, Suite "G", San Bernardino. 18 SECTION 3. The authorization to execute the above- 19 referenced agreement is rescinded if the parties to the 20 agreement fail to execute it within sixty (60) days of the 21 passage of this resolution. 22 I HEREBY CERTIFY that the foregoing resolution was duly 23 adopted by the Mayor and Common Council of the City of San 24 Bernardino at a requ1ar meeting thereof, held on the 20th 25 / / / / 26 / / / / 27 / / / / 28 HE/dys November 9, 1989 1 1 RESOLUTION...AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH STERLING PLAZA PARTNERS TO LEASE CERTAIN REAL PROPERTY AND 2 ESTABLISHING AN ADDITIONAL POLICE COMMUNITY SERVICE OFFICE FOR AREA " E" . 16 17 18 19 20 21 22 23 24 25 26 27 28 3 4 5 day of November , 1989, by the following vote, to wit: 6 7 8 9 10 11 12 of 13 14 15 AYES: Council Members Estrada. Reilly. Flores. Maudsley. Minor. Pope-Ludlam. Miller NAYS: None ABSENT: None ~~~4h Ci tf Clerk The foregoing resolution is hereby approved this ~~AqI day Nnvpmhpr 1989. / /e /7 City Mayor/,/ rnardino e ~/ '- Approved as to form and legal content: JAMES F. PENMAN, City Attorney 7/~ HE/dys November 9, 1989 2 ,. .r" .f 'i" I I KATERSKY FINANCIAL REr"'F"p r ,~'.J,~ t " .1 "90 t1AY - 7 A 9 : 0 9 Ma y 4, 1 99 0 The City of San Bernardino Shauna Clark - City Clerk 300 North D Street San Bernardino, CA 92418-0001 RE: Police Community Service Center for Area "E" Sterling Plaza Partners That certain Lease commenced on November 1, 1989 (the "Lease") for the premises located at 2025 East Highland Avenue, suite G, San Bernardino, CA 92404 Dear Tenant: Please be advised that the above-named Partnership and Katersky Financial have moved their offices. This letter shall serve as official notice pursuant to the Lease of the address change effective immediately. Please direct any correspondence, notices and all payments to: Sterling Plaza Partners c/o Katersky Financial 22020 Clarendon Street, suite 200 Woodland Hills, CA 91367 Our new telephone number is (818) 888-2700. v~erY... .....Ul.y y..ou. rs, ~ ... ? /h_d ( / in4f( (U~ -"~tida Cardoza ~ Property Manager LC : j f 22020 Clarendon Street, Suite 200, Woodland Hills, California 91367 Telephone (818) 888-2700 LEASE between' -~~~~~t~:i~~ ~~~-~~- ,~~~_:~~~~. .. ~.../'.__.'~~ STERLING PLAZA PARTNERS a California General Partnership and ("LESSOP." ) THE CITY OF SAN BERNARDINO ("LESSEE" ) .... - - .~. .- ~- iI;~~i;~~~;:~. .;~ ,,~~;:- ..-- -=-:.;.~~ - TABLE OF CONTENTS SECnON NAME I. 2. 3. 4. S. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leased Prern.ises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent ............................................................. Security Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . De:ay in Delivery of Possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use of Pren1iscs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Uses Prohibited ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LESSEE'S Conduct of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compliance with Law ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shopping Center Promotion .. .. .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . Signs ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alterations, Additions and Improvements . . .. . . . .. . . . .. . . . . . . . .. .. . . . . . . Utility Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Parking and Common Area Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Area Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes and Assessments .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance ...................................................... Payment of Taxes, Maintenance, and Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance ......................................................... Indemnification ..'................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oanlage or Destruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Condemnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assignment and Subletting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Surrender of Premises by LESSEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Holding Over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Default ........................................................... Waiver of [)efault ................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subordination ..................................................... Sale or Transfer of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Estoppel Certificates ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LESSOR'S Right of Entry ............ . . . .. .. .. . .. . . . . . . . . . . . . . . . . . . . Successors ........................................................ Authority to Execute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Entire Agreement .................................................. Severability ....................................................... Joint and Several Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney's Fees .................................................... Interpretation of Lease, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit A - Plot Plan ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit B -1..ega1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit C - Tenant Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit 0- Building Signs ......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Addendum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment ....................................................... Guarantee of Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 1 I 1 1 2 2 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 S S 6 6 6 6 7 8 8 8 8 8 8 8 8 8 8 8 8 8 B- ~~:;~;~i= LEASE I.' PARTIES. THIS Lease is made-and entered into by and between STERLING PLAZA PA:RT~S ("LESSORj, a California Limited Partnershi . and nil:; L:ITY OF SA."l BERNARDINO c-LESSEE~. as of the date of execution hereof by LESSOR. 2. LEASED PREMISES. LESSOR hereby leases to LESSEE. and LESSEE hereby leases from LESSOR, that certain real property ("Premisesj delineated on Exhibit A (plot Plan), which Premises constitute a ponion of that certain real property described in Exhibit B (Legal Description). situated in the City of SAN BERNARDINO ,Countyof SAN BERNAROTNO . State of California. LESSEE hereby accepts the Premises in the condition existing as of the date of possession hereunder, subject to all applicable zoning. municipal. county. and state laws. ordinances, and regulatioos governing and regulating the use thereof, and accepts this Lease subject thereto. LESSEE acknowledges that LESSOR has not made any representation or warranty as to the suitability of the Premises for the conduct of LESSEE'S business. 3. TERM See . ("Commencement Datej on the earlier of (i) thirty (30) days after Lessor in writing that LESSOR'S work, as set forth on Exhibit C, has been . completed. or (n') the day LESSEE opens for business on the Premises, years thereafter. However, if the C te is ~ot the flI'St d~y of a calendar month. the Term shall expire on the (b) For Premises existing on the date of execution hereof, the term of this lease C7erm"') shall commence on NOVEMBER 1, 1989 or date at which LESSEE takes JX)SSCSSion of premises. whichever occurs first, ("Commencement Datej and shall expire on OCTOBER 31, 1991 . 'to ~l~. The: 1l;UL sludt ;)I4lL Addendum f (Dollars) ($ ), which Minimum Rent payable in advance, without deduction or offset, on or before the first endar month of the Term. Upon the execution hereof. LESSEE shall t of Minimum Rent to LESSOR. Minimum Rent for any =~~~~~;~,,~r:~;.~~;~~~~~~; . . . -";:. ~ .;1-1~. :~'~~::~~~_-;~<~;"~;'~~f~~ calendar year of the Term. The base for computing such adjustment shalJ be the Consumer U.S. Average, All Urban Consumers (All Items. 1967 = 100), as published by the United of Labor. Bureau of Labor Statistics ("lndexj, which is published for the Novem y preceding the Commencement date (Beginning Index). If the Index published e November immediately preceding the Adjustment Date ("Adjustment Indexj has increased e Beginning Index. the Minimum Rent for the immediately following calendar year shall be incr by the result obtained by multiplying the Minimum Rent by the percentage increase, if any, in Justment Index over the Beginning Index. If the Term commences on a date other than the fi y of a calendar year, the initial adjustment required hereunder shall be determined by incr e Minimum Rent by the prorata portion of the percentage increase in the Adjustment Ind the Beginning Index allocable to that portion of the Term that has transpired during the initi ndar year of this Lease. Notwithstanding anything herein to the contrary, in no event shall the .. urn Rent, as adjusted. be less than one hundred six percent (106'10) of the Minimum Rent payabl ESSOR for the month of December immediately preceding each Adjustment Date. rega.r: of the Commencement Date. If the Index is discontinued, LESSOR shall select another similar ~ ~'~"'. .: :::,~~#r';::f.F~~'" -'.;:~~::~:~; ~f.7 ~::~~:~Si~~~; .~~~~~~~'t~~~~~.'~~'-~~::;:~~'~~~~~ . . .~l.:....;~~~~'.~:i.~~_,:.;; ';~~,,~~~:::S-:L._:;:{j;f?:.E:; j . - r- ~"':-,,":-""... .::{.; t~~~?:~~~~~ (e receipts of every kind made in its store on the Premises, and deduct therefrom aD receipts taxes and any refunds made to customers. LESSOR may audit the penaiaina to the Premises. If LESSOR requests such audit. lESSEE agrees to to LESSOR. or to LESSOR'S representative, aD of the books and records such audit. If such audit disc:Joses that LESSEE'S statemem of Net Receipts . led by twO (2) percent or more, LESSEE sbaD. upon demand, pay to LESSOR t Such audit, together with the balance of the unpaid Perc:entqe Rent, and LESSOR s e further remedy. at its option. of tcrminatins this Lease upon ten (10) days or any other amount or charge required to be paid under this amounts or cbaraes. including, without Umitation, utilities imurance, coUedM:ly shaD be deemed to .pay to LESSOR, in addition to such unpaid amounts. a late chatge u:asE~"S ~~_~~ ~~/:' -1~~n;.~tivu.d A I t~ S. . amount of ($ ), as a security deposit \Security Deposit' Ii LESSEE of its obligations hereunder. If LESSEE is in default. LESSOR the Security Deposit, or any portion thereof, to cure such default, or to compensate LESSOR y damage sustained by LESSOR resulting from LESSEE'S default. LESSEE shall pay to immediately upon demand an amount equal to the portion of the Security Deposit expend Plied by LESSOR so as to maintain the Security Deposit in the amount initially deposited wi R. If LESSEE is not in default at the expiration or termination hereof, LESSOR shaD the Security Deposit to LESSEE. LESSOR'S oblipDoos with respect to the Security . ose of a debtor and not a trustee. LESSOR may COIDIDin8Ie the Security Deposit with L enera1 and other funds and LESSOR shaD have no obligation to pay LESSEE interest UPQ 'ty Deposit. Notwithstanding the forecoin& exercise of the options given LESSOR und 'on S in no way shall affect or abrogate any other claim or remedy available to LESSOR h , . 6. DELAY IN DELIVERY OF POSSESSION. (a) With respect to Premises to be constructed, LESSOR shaD not be subject to any liability resulting from any delay in delivery of possession of the Premises, and this Lease shaD remain in CuD force and effect; provided, however, that if possession of the Premises is not ddM:red within one year after the date of execution hereof by LESSOR, LESSOR and LESSEE each sbaJl have ten (10) days after the expiration of such year within which to notify the other in writing that it desires to cancel this Lease. in wbic:b case aD consideration paid by LESSEE shall be refunded in full satisfaction of aD obligations and liabilities of the parties under the Lease. (b) With respect to existing Premises, LESSOR shall not be subject to any liability resulting from any delay in delivery of possession of the Premises. and this Lease shaD remain in full force and effect; provided, however, that if possession of the Premises is not delivered within ninety (90) days after the Commencement Date, LESSOR and LESSEE each shaD have ten (10) days after the expiration of such ninety (90) days within which to notify the other in writing that it desires to cancel this Lease, in which case aD consideration paid by LESSEE shaD be refunded in full satisfaction of aD obligations and liabilities of the parties under the Lease. 7. USE OF PREMISES. The Premises shall be used and occupied only for the purpose of: PO:'ICE CO~.Mm!ITY SERVICE CENTER. ~ rrr iR II Ild~ei!.a ~:tl. .. ar 8. USES PROHIBITED. LESSEE shall not do or permit anything to be done in or about the premises which will in any way obstruct or interfere with the rights of other lessees or occupants of the Shopping Center or injure or annoy them or use or aDow the Premises to be used for any improper, immoral, unlawful or objectionable purpose, nor shaD LESSEE cause, maintain or permit any nuisance in, on or about the Premises. LESSEE shall not commit or aDow to be committed any waste in or upon the Premises. 9. LESSEE'S CONDUCT OF BUSINESS. U;i~I* .e - .1 Ulj .... ... 1I-1iMIWI} .tI w_ePI'HJlte~ IIw:nt tho! "Fel'Hl hereef, it MIeR speNte anA :eNhlet ~~tIh.! th<. P.-.':'- .. h~ cu ~M!neM in rUMBR~. anj 1M. it shaH sWf lb. PrIlRi&. "lith A1Ai;i_ SailS '_98811. ...11 :,PrJG-:-- Vl/ith a~e~~ fIlerehlluliM, an~ JhaH elerNe sees htMin_ 'U'8e8ees. Aut ~"" aM ,K~ te .1l&Ml.h..... tI~t R~:r~ f.:.. ll.~ ......t~.li b....d~t Be LesseR Me Y -r'S1:~. During the entire Term hereof, LESSEE shall keep the Premises continuously open for business and cause LESSEE'S business to be conducted therein during the usual business hours of each and every business day as is CUStomary for businesses of like character in the city in which the Premises are located. 10. COMPLIANCE WITH LAW. LESSEE, at its expense. shaD comply with aD governmemaJ laws, ordinances and regulations applicable to the use of the Premises, including the obligation to alter. maintain. or restore the Premises in compliance with such laws, ordinances, and regulations. and promptly shaD comply with aD governmental orders or directives for the correcdoo, prevention, or abAt~r or nuisance in, upon, or connected with the Premises. 11. ('"Center'j in aD materials (regardless of the type of m . or promote its business, inclu . . ... vertJSemeDts. business cards, and radio and tdevision ~;~il~~;~;~~ . _'#-'~='_~_:..'....,.t}~.~-.~_.'._~..-_._~_~..-.-_."",._,_~,~,."-,,.,'-'_' ..'c.~_~.-.._.'~..'~,~._.~'-~-'..'.~'~..:'--..._~_-.' ;:..._::_.---..:--;:.____..-,-.--'.-.:-',..--....:-....<-~-.- ,.:i~.~::,:~;.;~~~~~. s::~:~,f::;; ~ ~. -~"~~:-~~ -.- ,'.. :.-~~;:~:,:~-:::.5;.:'\:;~~25 . - 12. SIGNS. LESSEE shaH not have the riaht to place, ConstlUc:t. or maintain on the JIass pIDCS or supports of the show windows of the Premises, the doors. exterior waDs or the roof of the buiIdiaa iD which the Premises are located. or on any interior portions of the Premises that may be visible from the exrcrior or the Premises, any siaiu. advertisements. names, insisnia. trademarks. descriptive material or any other items without fU'St procurina LESSOR'S written consent. LESSOR shall designate the size shape. color. de:sian. and location of all exterior sians to be installed by lESSEE. lESSEE agrees to submit to lESSOR copies or LESSEE'S sign plans for lESSOR'S written approval within thirty (30) days after LESSOR'S execution hereof. LESSOR. at LESSEE'S cost. may remove any item placed, constructed. or maintained thai docs DOt comply with this Section 12. lESSOR. at LESSOR'S option. may install a pole and pole sip. If such pole and pole sign are installed by lESSOR, lESSEE shall pay its proportionate share of the cost of purcbasing and maintaining such sign. lettering on such pole sip wiD be installed by LESSOR at lESSEE'S expense with LESSOR'S approval of style and color. AU signs that are pennanently attached to the Premises sba1l become the property of LESSOR at the termination or expiration hereof; provided. however, tballESSEE promptly shall remove, if lESSOR so elects, all such signs. and LESSEE shall repair any damage caused by such removal. LESSEE shall not place, construct, or maintain on the Premises any advertisina IIItldia. including, without limitation. search lights. tlashing lights, loudspeakers. phonographs. or other visual or audio media. 13. ALTERATIONS. ADDITIONS AND IMPROVEMENTS. (a) lESSEE shall not create any openings in the roof or exterior walls, nor make any structural alterations, additions or improvements to the Premises. without the prior written consent of lESSOR. LESSEE shall have the right at all times to erect or install shelves. bins. equipment and trade fixtures, provided that LESSEE complies with all applicable governmental laws. ordinances and regulations relating thereto. LESSEE shall have the right to remove at the termination or expiration of this lease such itans so installed, however, prior to such termination or expiration, LESSEE shall repair any damage caused by such removal. (b) All alterations. additions or improvements made by LESSEE that are permanently attached to the Premises shall become the property of LESSORat the termination or expiration hereof; provided. however, that lESSEE promptly shall remove, if LESSOR so elects, all alterations, additions, improvements. or any other property placed in or on the premises by LESSEE, and LESSEE shall repair any damage caused by such removal. (c) LESSEE has the right to make minor interior alterations, of a non-structural nature. without lESSOR'S consent. (d) If LESSEE makes any alterations, additions. or improvements to the Premises after obtaining lESSOR'S consent, the alterations shall not be commenced until ten (10) days after lESSOR has received notice from LESSEE stating the date work is to commence, so that the LESSOR can record and post an appropriate Notice of Nonresponsibility. 14. UTILITY SERVICES. lESSEE shall be solely responsible for. and promptly pay when due. aD charges for water, gas, telephone, heat, electricity, sewer, trash coUection. or any other utility used or consumed on the Premises during the Tenn. If LESSEE refuses or neglects to pay any such utility charges. LESSOR may, atLESSOR'S option, pay such charges. and LESSEE shall upon demand, pay such amount and all costs incurred in cOMection therewith to lESSOR. In no event shall LESSOR be liable for an interruption or failure in the supply of any utilities to the Premises, unless proximately caused by the gross negligence or intentional act of LESSOR. In the event that any utility usage of LESSEE is not separately metered or billed, LESSEE agrees to pay LESSOR its equitable share of the charges for eacl1 utility as determined by the common meter or bill. However, LESSOR shall have the option. in its sole discretion, to allocate utility charges with reference to criteria other than comparative floor area (including, without limitation, the particular uses and hours of usage by lessees) and LESSEE agrees to pay to LESSOR. upon receipt of a statement from lESSOR, the amount of such allocation. If LESSEE disputes the reasonableness of such allocation, LESSEE may, as its sole and exclusive. bargained-far-remedy, arrange for separate billing for trash coUection, and/or cause, at its sole cost and expense, the installation of separate meters or submeters and incidental auxiliary lines for the Premises. IS. LIENS. LESSEE shall keep the Premises and the property on which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred or alleged to have been incurred by or under lESSEE. lESSOR may require, at LESSOR'S sole option, that lESSEE provide to LESSOR, at LESSEE'S sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1 \11) times the estimated cost of any improvements, additions, or alterations in the Premises which the LESSEE desires to make, issued by a surety satisfactory to lESSOR, to insure Land10rd against any liability for mechanics' and materialmen's liens and to insure completion of such work. 16. PARKING AND COMMON AREA CONTROl. (a) The Common Area of the Center is defmed as that space beyond the exterior walls of aU Center buildings, and within th~ exterior bouncmn~ of th.: real prvperty described in Exhibit B. The Common Area consists of, but is not limited to, all walkways, driveways, sidewalks. parking areas, landscaped areas. loading zones and plazas. Such Common Area shall be available for the non-cxclusive use of lESSEE. provided that condemnation or other taking of any or all of the Common Area by any public authority. or a sale thereof in lieu of condemnation. shall not constitute a violation of this provision. (b) LESSOR at aU times shall have the right and privilege of detennining and changing the nature and extent of the automobile parking and the Common Area, and of modifying the plot plan of the Calter as required for any expansion or modification thereof as in its opinion are deemed to be desirable and in the best interests of all persons using the Center and the Common Area. (c) LESSOR also shall have the right to establish, and from time to time to change, modify and enforce against LESSEE. and other users of the Common Area. such reasonable rules and regulations as may be deemed necessary and advisable for the proper and efficient operation and maintenance of the ,e~~~~~ =1~~~~~:~~~ Conunon Area. LESSEE shaI1 observe and comply with all such rules and rquIaI:ioas iDdudiaa aU modiflClltions thereof and additions thereto from time to time put into effect by LESSOR. LESSOR sbaII not be responsible to LESSEE for the violation or oonperformance by any other LESSEE or ~ of the Center of any rules or regulations. LESSEE qrees that LESSEE and LESSEFS employees are prohibited from parking in the Center lot unless LESSOR designates a portion of the parkina lot for employee parking. 17. COMMON AREA IMPROVEMENTS. LESSOR, in its sole discretion may make such reasonable additions to, or modiftcal:ions of, the Common Area as it deems necessary or advisable to preserve, protect, or promoce the common good of the tenants of the Center. In the event LESSOR undertakes such reasonable additions or lIlOdifbtioos, LESSOR may require LESSEE to pay its equitable share of the cost thereof, on such reasonable basis as LESSOR may select. ** 18. TAXES AND ASSESSMENTS. <a) LESSEE shall pay before delinquency an taxes, assessments, license fees and other charges that are levied and assessed against LESSEE'S improvements, personal property, fixtures installed or localed in or on the Premises that become payable during the Term. On demand by LESSOR, LESSEE shaD. furnish LESSOR satisfactory evidence of such payment. (b) LESSEE shall pay to LESSOR its proportionate share of an "Taxes" applk:able to the CeoIer in the manner set forth in Section 20. TIle term "Taxes" shall include an taxes, c:xciscs,and ..~~~ both general and special, levied on or assessed apiDst LESSOR or the Center, and aU tu.cs. excises or assessments measured by or based in whole or in part upon rents received or receivables by LESSOR or upon the business of leasing the Center including those taxes, excises and assessments imposed in addition to or as a substitution in whole or in part for any taxes prevailing at the Commeocanent Dare. Taxes sbID not include any state or federal income, estate succession. inheritance or transfer tax imposed upon LESSQR. 19. MAINTENANCE. LESSEE. . . , .. ., improvements of the Premises in good repair and condition including. but not .. , oea:ssary repairs and replacements of the plumbing. electric:al wiring, windows . plate glass. doors. and painting. LESSOR shall provide, as necessary, main , replacement, repainting and c1eaDioc of aU exterior areas of the bui1din' constitute a portion. including the roof. air conditioning. and C and provide aD nccessary utilities to the Common Area. LESSEE sbaD pa t Its proportionate share of the cost of such maintenance. repair, repIacemeol. repaiDI:iDg, . . .. . . . . If LESSEE does not reasonably maimain the Premises, LESSOR shall have the right (but not the obligation) to cause repairs or corrections to be made, and any reasonable costs therefore shaD. be payable by LESSEE to LESSOR on the next rental inslaIIment date. LESSOR first sha1I give three days written nocic:e to LESSEE before any such repairs or corm:tioDs are made by LESSOR. LESSEE'S obligations set forth in this Section 19 form a material part of the consideration for this LEASE, and LESSEE hereby waives an rights to make repairs at the expense of LESSOR as provided by any law, statute or ordinanc:e how or hereafter in effect, including. but not limited to, Civil Code Sections 1941 and 1942. 20. PAYMENT OF TAXES, MAINTENANCE. AND INSURANCE. ( l t r<'C"...... Lr" pl~ II bL:f[l9Fl. I lb. r... lie) ef'" _IB_ 1lA. lebo lESSf:E?5 R1&1tlhl~ !RM tlf HI! l'.k..~ ~"e'- ti.~ a.at... (...... &-Ii_.. 1~, liiiii~ t' t j ...l!!l) 1 f J.~ ,r.-~ ?f --'-'-'-i~8 (", ("l'''w (III irilhA It'), _II ~. a~llal R1aRthI!. 118. sf till' '5_.ltUI A~ll..4 41 in'iaR 31(&). (b) LESSEE'S proportionate share of taxes, I1IIiR1111aR1II, IiIljj ill:l INrn re1ating to the Center sball be based upon the proportion that the total floor area of the Premises bears to the total floor area of the Center. However, if LESSOR, in its absolute discretion, determines that such method is inequitable, LESSOR may prorate such items on the basis of usage or other equitable considerations. (c) LESSOR shall furnish to LESSEE, in Dec:ember of each calendar year or, at LESSOR'S sole option, in June and Dec:cmber. an expense statement setting forth the actual Taxes, 1"'____ ~- I1IllR1RlIIRif aliI! 8 -.. '-" ---- p--:..-- incurred for the annual or semiannual period covered by the expense statement, together with the actual amount of estimated monthly charges <(01lected for the period covered. ., .' . . covered as against an estimated monthly charges coDected . may increase the es~ed monthly char es nme any scmi-annual or annual expense statement is 21. INSURANCE. (a) LESSOR shall obtain and maintain a fire insurance policy covering the building of which the Premises constitute an or a portion. . . ~.1ch rue insur:1nce policy in the maraner set forth in Section 20. r.ie IX! . inciude a special extended coverage endorsement, or its eq . U ,but not be limited to, the perils of fire, lightning. vandalism, . .. extended coverage. Such poIic:y also sha1I include rental value . or any period up to one year during which the Premises are partially or totally (b) maintain in full force and effect $1,00>,00> combined single limit comprehensiv msuranc::e, which includes death or injury to one or more persons and of others. Such insurance shaD include plate glass coverage. Such' . name LESSOR as an additional insured. and a certificate issued by the . is in force sha1I be furnished to LESSOR. Such certificate of . e days' notice in the event the policy is terminated for any reason. Not more f .. ** Property Taxes estimated to be $0.00. I INlTIAL I ..a~l. .....' .. ,~~~~~,;~~~~ ~;~~~~~~:~~';~~ event Best's I (c:) LESSEE shall not do or permit anythina to be done in or about the Premises nor brina or keep anythina therein which will in any way increase the existin& !'ale of or affect lIlY rue or other insurance upon any bu.ildina within the Shoppina Center or any of its contents. or cause a ............n..v- of any insurance policy covcrina any such buiIdina or any pert thereof or any of its contents. without the axISCDl of lESSOR and the amount of suc:h inc:rease, if any, shaD be paid by LESSEE to LESSOR upclIl dcmaad. (d) LESSOR and LESSEE rdease each other, and their rapec:tM sbaRhoIdcn. directors, of'fic:ers. employees, agents and representatives, from any claims for damage to any person or to the Pn:mises. and to the fixtures, personal property, improvements, and aIteratioas of either LESSOR or LESSEE in or OIl the Premises or the building and other improvements in wbic:b the Premises ate Ioc:arcd tbal are c:aused by or result from risks insured against under any insurance po6cies carried by either party pursuant to any provision of this Section to the extent of the proc:eeds from suc:h policies (but such release does DOt apply to uninsured c:1aims or claims in exc:ess of the insurance CO\IUq'e required UDder this Scaioa). LESSEE shaD cause eac::h insurance polic:y obtained by it pursuant to this Section to provide that the imurer waives aU ri&ht to recover by way of subroption against either party in connection with lIlY loss CCMred t.baeby. 22. INDEMNIFICATION. LESSOR shaD not be liable to LESSEE. or LESSEES officers, directors, shareholders, employees, representatives, agents, invitecs, 1icensees. or to any omer persoa for any injury or damage to property, on or about the Premises. resulting from any cause whatsoever, uaIess caused by or due to the intentional act or &toss nealigenc:e of LESSOR. its officers. directors. sbareboIders. employees, agents, or representatives. LESSEE agrees to indemnify and bold LESSOR free and barmJc:ss from any claim, denwtd, action, liability, loss, or expense (indudins actual attonJey's fees) arisiaa out of any such damage or injury, unless such damage or injury hu RSUIIed from LESSOR'S iDreabonal act or II'OSS negligence, or unless such injury or damage is covered by any of the insuraDce policies required under Section 21 hereof, in which case such indemnific:ation and bold barmIess shaD apply to the extent of any claim. demand, action, liability, loss. or expense in exc:ess of insuraDc:e proceeds. 23. DAMAGE OR DESTRUCTION. (a) If the Premises or the buiJdina and other improyements in wbX:b the Premises are Ioc:ared are totaUy or partially damaged or destroyed from a risk CCMRd by the insurance dcscribcd in Section 21(a), rendering the Premises toWly or partially inaccessible or unusable, LESSOR promptly sbaD repair or restore the Premises or the building and other improvements in wbic:b the Premises ate loc:aud to substantiaI1y the same condition as they were in immediately before such damaee or destruc:tioo. Such dImap or dcstruc:tioo shaD not terminate this Lease. However, if the Premises or the buildiDa and odlcr improwemots in wbic:b the Premises are loc:ated are not repaired or restored within six months after the date of damaIe or destruc:tioo. either party may terminate this Lease, aD insurance proceeds rdaIioa to the Premises or the bWIdiDa and other improvanents in which the Premises are 1oc:ated and Ill)' omer property of LESSOR shaD be peid to LESSOR. and neither party shaD be tiabIe to the other except with respect to aacrued. but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsuJed claims or dIims in exc:ess of insurance coverage. During any period that the Premises are totaDy or partially inacc:asibIe or unusable, there shall be an equitable abatement of rent in an amount DOt to exceed the taltal value iIISurance proceeds contemplated by Section 21(a) hereof, which proc:eeds shaD be paid to LESSOR and LESSEE shaD be liable for the balance, if any, of the rents, fees, costs and other dwges due. If the cast of the repair or restoration of the Premises or the building and other improvements in which the Premises are Ioc:ared exc:eeds the amount of the proceeds received from the insurance required under Section 21(a), LESSOR can eIec:t to terminate this Lease by giving notice to LESSEE within fifteen days after detenninin& tbat the repair or restoration cost will exceed the insurance proc:eeds. In the case of damaae to or destructioa of the Premises only, if LESSOR elects to terminate this Lease, LESSEE. within fifteen days after recc:iviDs LESSOR'S notice to terminate, can e1ec:t to pay to LESSOR. at the time LESSEE nocifies LESSOR of its election, the difference between the amount of insurance proc:eeds and the cost of repair or restoration. in whic:b case LESSOR shall repair or restore the Premises. If LESSOR elects to terminate this Lease and LESSEE does not elect to contribute toward the cost of repair or restoration of the Premises. this Lease shaD terminate, and neither party shall be liable to the other except with respec:t to acaued., but unpeid obIiplions, and except as provided in Section 21(d) as it applies to uninsured claims or claims in c:m:ss of insurance coverage. (b) If the Premises or the buildina and other improvements in which the Premises ~ 1oc:ated ate totally or partially damaged or destroyed from a risk DOt covered by the insurano: described in Section 21(a), rendering the Premises totally or partially inacc:essablc or unusable. LESSOR shaD have the eJec:tion eit.'Icr to re-.,.air or re:;tore :.'1e ~ or building and other improvemenu in ~1Uch the P:=:i::cs are lc:at:d or to terminate this Lease. However, if the Premises or the buiJdiDa and odlcr impro~ts in which the Premises are loc:ated are not repaired or restored by LESSOR within six months after the dale of damage or destruction, either party may terminate this Lease, and neither party shaD be liable to the other ex.cepc with respect to accrued, but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsured claims or claims in excess of insurance coverage. In the case of damaae to or destruction of the Premises only, if LESSOR elects to terminate this Lease, LESSEE. within fifteen days after RCCivina LESSOR'S notice to terminate, can elect to pay LESSOR, at the time LESSEE nocifies LESSOR of its elcctioo. the actual cost of repairing or restoring the Premises. in which case LESSOR shaD repair or restore the Premises. If LESSOR elects to terminate this Lease and LESSEE does DOt eJec:t to bear the cost of repm or ratoraIion of the Premises, this Lease shaD terminate, and neither plIl1J shaD be liable to the other except with respec:t to accrued, but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsured claims or claims in excess of insurance coverage. I rNTTTAl I .--" f#';. ~- -~ - _.... - J .._ ~..:~;_:.~;-:. ..~~~~~.::__.~~_ ~':~~;~~:,'~<;*~ - . -- . ~.'" >"C"':'~e--""'~'" .~... '., ",,,#- ij;,j/;;:;''''~''7d.,;j;.,:i;;~~:;c;;:>;'~'~~~~ ~~ (e) Nochinc contained in this Section shaD obliplc LESSOR to rqJU or ratore aD)' 0( LESSEE'S tenanc improvements, equipmenc, maccrials. supplies. inventory, or similar iecms. (d) Nocwithstandina anythina concained in chis Section to cbe conttary, it cbe Premises or cbe building and other improvements (inclucfina Common Area) in which cbe premises are Iaca!ed are totaDy or partiaUy damaaed or desttoyed durina che rmal twenty-four montbs 0( cbe Term hereof, or if more than twency percent of che Premises or che buiJdina and ocher impnwemcIUS (indudina Commoo Area buc excludina aU land) in which che Premises are Ioc:ated are damaaed or destroyed at any time by an uninsured risk, LESSOR shall have che absolute riaht to cerminaCe this Lease upon cen days notice co lESSEE. 24. CONDEMNATION. (a) If aU or any part of the Cencer, the Common Area, the Premises, or any inlerest herein is caken by condemnation, or if an of any part of same, or any interesl herein is sold to the condemnina authority under threar of condemnation, the righu and obligations of lESSOR and LESSEE shall be detcnniDcd pursuanc to this Section 24, and the parties hereby waive the provisions of Code of Ovil Procedure Seaioa 1265.130. (b) If there is a cotal talcina of tbe Cenler, the Common Area, or the Pn:miscs. chis Lease shall terminate on the dace of such caIcing. (e) If ten percenc or less of the total square foocaae of the Premises (exclusive of tbe Common Area) is taken. LESSOR shall restore the Premises to che mem of any coodemnation proceeds actually rea:Md. and this Lease shaD remain in fun force and effecl. If more than lCIl percent of the cocal square footaae of the Premises (cxdusive of the Common Area) is caken. LESSOR may. in its sole discredoo. citber' (i) restore the Premises, in which case this Lease shaD remain in CuB force and effecc. or Cu) tenninace chis Lease upon cen days written notke to LESSEE. (d) Subjecc to Section 24(e), if less than lCIl percenc of the total square fOOlale of the Common Area or the Cencer is taken, LESSOR shall restore che same to the extent of any condemnation ~ accually received. and this Lease shall remain in CuD force and effect. Subjecc to Section 24(a). it more than lCIl percenc of the total square foocaae of the Common Area or the Center is taken. LESSOR may, in its sole c.tiscretion, either (i) rescore the Common Area or the Center, in wbicb case this Lease shaD remain in full force and effecc, or (n) tennirwe this Lease upon cen days written noIice to LESSEE. (e) If any portion of che Premises is caken and chis Lease remains in tuB force and effecc, an rental payments., fees. c:osu. and charges payable by LESSEE hereunder shaD be abaccd in proportion co Che degree to which LESSEE'S reasonable use of che PremUes is impaired. Excepc for such abatement. if any. LESSEE shaD have no claim apinst LESSOR in the evenC of condannation. and LESSEE shaD be entitled to no share in any award or ocher consideration paid with respect to any condemnation of cbe Premises except any award. or portion thereof, relating to the value of improvemenu Cmc:luc6ua fixtures) thal LESSEE has a riaht to remove, buc elects DOt co move. (I) Nocwichstanding an)1hina concained herein to the contrary. if there is takina duriDs the final cweney-four months of che Term. LESSOR, in iu sole discretion, shaD nor be required to ratore the Premise. and this Lease may be terminated by lESSOR upon lCIl days wrinen notke CO LESSEE. 2$. .. . and shaD not sublet che Premises. or any part chereof, or permit any ocher person or entity (exa:pt and servanu of LESSEE) co occupy or use the Premises. or any portion chereof. wichout wrinen consenc of LESSOR, which consent shaD nor be unreasonably withheld. In consent to an assignment or sublease. LESSOR may consider. by way of Iimication. che folIowina: proposed use of che Premises; current uses in che , competitive effecc of che proposed use on other tenanU of the Center; use of the Common of the Center by cbe proposed tenanc; rmancial capacity of the proposed lenanC; business repu . of che proposed cenant; suitability of Percentage Rent wich respect to the proposed tenam; . che business operations of cbe proposed tenanc; and the business experience of che t. Nocwithstanding the foreaoin& LESSOR reserves the right. at iu option. to terminate this rather rhan consenc to such assiJlUDC'Dt or subJettina. Consenc by LESSOR to one assignmenc. , occupation or use by another person or entity shaD DOt be deemed to be a consenc to any su t assignmenc, sublettinJ. occupation or use by another person or entity. Consent co an assignm blettina or occupation shall DOt re1ease che original LESSEE from liability for the continued rmance of the terms and provisions on che part of LESSEE co be kept and performed hereunder a condition to LESSOR'S consenc to an assignmenc of this Lease or a subkase of the Premises, R shan have the option to require that che amount of any increased rental or ocher paymentS Ie to lESSEE pursuant to such assignmau or sublease be paid to LESSOR as additiooal renC . ~E qrees to reimburse lESSOR S250 for any assisnmenc or sublettinc and the 26. SURRENDER OF PREMISES BY LESSEE. Upon the expiration or termination hereof, lESSEE shaD surrender the Premises to LESSOR in broom dean condition. and aIllESSEE'S improvemenu and alterations shaD be in good condition (except for ordinary wear and tear ocx:urring after the last nec:essary m:Uncenance made by lES...<:EE. :w! except for a.1ter:1tiocs that lESSEE has the right or is obligated to remove under the provisions of Section 13 hereof). LESSEE shaD remove aU iu personal property from the Premises, and LESSEE shall perfonn aU restoration made necessary by the removal of any alteratiom or lESSEE'S personal property to restore the Premises to original plan condition. rT. HOLDING OVER. If LESSEE. wich LESSOR'S consent remains in possession ofche Premises after expiration or termination of the Term, or after the date in any notice Jiven by lESSOR Co lESSEE tenninatina this Lease, such possession by LESSEE shaD be deemed CO create a month-tc>moath tenanc:y terminable at any time upon thirty days written notice by either party. During any such lDOI1lMo-month tenancy, LESSEE shaD pay an Minimum Rent. Percencaae Rent, Additional Renc and an ocher fees, COSts., and charges required hereunder. AD provisions of this lease, except those pertaining to the Term, shaD apply to sucll mooch-ta-month tenancy. However. the Minimum Rent shaD be increased by fifty percent (SO".). Should LESSEE hold over the Premises without the express wrinen consenc of LESSOR, LESSEE shaD indemnify and hold lESSOR harmless from loss or liability rcsu1tin& from such hoIdina CMI', II. i.s.._ A 1...... LI ""-4~.. -- ---4-. =~~~~~~~~~ -i. - _ ..-. ~~~'~;;~~~~~~.$?~::t~~,5~%:~~t~ ~~~V'!:-:~~~' ~~~~'1-~~...?t:~:t~"2:'"=:;;;~ -': includina. without limitation. any daims made by lIlY succ:eedin& Lessee. 28. DEFAULT. (a) The occurrence of any of the followiDa sbaII constitute a default by LESSEE: (~~ . ~ -!~~. !!H!l..fJ .. - .....e. '* ~'r:~y_~~~~:=; ~~ 1:~ _~~.:::;:"~~~ ~~ SIJDC D ~ m1 (0) LESSEE fails to comply with any term. condition. or Q)Venant of this Lease. other than the payment of rentals, fees. costs or other cl1araa. and docs DOt cure such failure wilhin ten days after written notice thereof to LESSEE. If such failure cannot reasonably be cured wilhin ten days. LESSEE shaD DOt be in default hereof if LESSEE commences to cure the defau.It within the ten day period and diJiaentIy aDd in good faith continues to cure such default. (m) LESSEE becomes insolvent or malces a transfer in fraud of creditors. (iv) A court havina jurisdiction in the premises enters a decree or order for relief in respect of LESSEE in any involuntary case under any applicable bankruptcy. insolvency or other similar law !lOW or hereafter in effec.1. or apJlOintin& a receiver, liquidator, assianee. custodian. trustee. sequestratOr (or similar ofrJCial) of LESSEE or for any substantial part of its property. or orderina the wiDdins up or Iiquidatioo of its affairs. and such decree or order remains WJSlaycd m1 in effect lor a period of sixty (60) consa.-ut:M days. (v) LESSEE conuneuc:es a voluntary c:ase UDder any applicable bankrupk:y, insoIvcnc:y or other similar law now or hereafter in effect, or consents to the enlry of an order for relief in any involuntary case under any such law, or consents to the appointment of or taking possession by a receiver, Iiquidatar, assignee, trUStee, custodian, sequestrator (or similar official) of LESSEE or for any substantial part of its property, or makes any general assignment for the beDefit of creditors. or fails aeneraDy to pay its debts as they become due or talces any action in furtherance of any of the foregoing. (vI) A receiver or trustee is appointed for aD or substantiaDy all of the assets of LESSEE. (b) Upon the occurrence of defauh by LESSEE. lESSOR shaD have the option to pursue any one or more of the foUowinl remedies: (1) LESSOR may c:ootinue this Lease in run force m1 effect. and this Lease wiD continue in effect as Ion& as LESSOR does not terminate LESSEE'S riaht to possession. aM . ...~gR IW u 'III.,.. 10 !!B~l" .lll.e, r.., IBI" .. ..I -"v .. II -...- ~,. During the period LESSEE is inde&uJt. LESSOR can enter the Premises and relet them, or any part theRof, to third parties for LESSEE'S aa:ount. LESSEE shaD be liable immediately to LESSOR for aD costs that lESSOR incurs in n:IcttiD& the Premises. iDcIudiot. without limitation, brokers' commissions. expenses of ranodetina the Premises required by the reIeaiDa. aDd like costs. Reletting can be for a period shorter or Ioo&a' than the remainina Term. ~ .. Jb; 10 . PO~9R tbt .Albdl., f~, ut!.. _ ulul' """ ...It.mnllu _ tit. ..Ir-".t> -.. '1t. .. h., ~- ~ ~pr ~" ,-- -- '~'l1It · ~iQR rnfF ~ ,- t, -.-: . No act by LESSOR aDowed by tbi:s Sc:dion 28 shaD terminate this Lease unless LESSOR notifies LESSEE in writin& that lESSOR elects to terminate this Lease. (u) LESSOR may terminate LESSEE'S riJht to possession of the Premises at any time. HoweYa', no act by LESSOR other than givina written notic:e of termination to LESSEE shaD terminate this Lca1e. 00 termination, LESSOR has the right to recover from LESSEE the foUowing: (A) 'FIle J -'.Ii., MIi)., bo._ Df Ih.. _ _A, _f lti.!. .. 'A ...bdl., f_. .~t:. _ad _If... .:b..._ YMw hM heR 1UIl.lIllt tIl, .. if t1Vl':liuli.. lunar; costs and other charges which would have been earned after amount of the loss of such ren of award exceeds the that LESSEE proves c:oukI have reasonably ( , costs and other charges which would have been earned for the amount of the loss of rentals, fees. costs and avoided (which amou . eo exceeds the proves reasonably could have been ill the discount rate of the Federal Reserve Board of San CD) .~'}~ ,~ U, l l.a tt....!ft$lLk . ............- (I ... ~~ proximately caused by :~.~ ;~~:~~ tI~ ~'~r ::urse o~ thinp wOuld be likely to rcsu1t dural _. computed by all est at the rate of twelve perc:eot per annum. (m) If LESSEE is ult hereunder, LESSOR shaD have the right to have a receiver appointed to coUect rent and to conduct L '. Neither the riling of a petition for the appointmalt of a receiver nor the appointment itself shaD election by LESSOR to terminate this Lease. (iv) LESSOR, at any time after LESSEE . a default, may cure: the Jefaull at i.E.>>'"'CE'S cost. If LESSOR at any time, by reason of LESSEE'S default, amount or docs any act that requires the payment of any amount, the amount paid by LESSOR shaD be . . from LESSEE to LESSOR at the time that the amount is paid. (e) Pursuit of any of the loregoing remedies set forth in subsection (b) of thjj . n 28 shaD DOt preclude pursuit of any of the other ranedies herein provided. or any other remedies currentlY provided by law, nor shaD pursuit of any remedy herein provided constitute a forfeiture or rentals. fees, costs or other charges due to LESSOR hereunder, or of to LESSOR by reason of the violation of any of the terms . . hc:rein contained. No notice &iVCD to LESSEE by l . on 28 sbaD be deemed a forfeiture or termination hereof WIIess r so states in writins- (d) LESSEE"'3 ......1.. ........4" ;.. tI... .......!.,f .. d..&.Jt to" lESSeR tlf64 this ~~ It>dl h... M aeeiu - ... u ,~;~~~~J:~~~;"c~~i~~ ~~i;~~:~;.;,+~'f:;~~~~~';:~.:<.~~~~ ~"\,:.:~~ .~;. :"<~~~~{~-'ry~~~--~~::.~..: .~~~~-::.- ~~'~?~ t_ ~_Ar :~j'r~;(i'lA ~r 1Il.1i. ''''IIR1WlII. ...... All Ill. ;INleljilll& af r Int.. f~ :otIS ~ ether a....... . Ill. '.........liIl8 If IIIiI . . 29. WAIVER OF DEFAULT. No waiver by the parties hereto of any default or breach of any tcrJD. condition. or covenant of this lease shaD be deemed to be a waiver of any subsequent defAult or breach of the same or any other term. condition. or covenant contained herein. The subsequau Il:Il:eptaftCe by LESSOR of rental or any other payment hereunder shaD DOt be deemed to be a waM!.r of any precedina breach by LESSEE of any term, condition or covenant of this Lease, other than the failure of LESSEE to pay the particular rental or other payment so accepted, reprd1ess of LESSOR'S knowlcdae of such preceding breach at the time of aa:eptanCe of such rental or ocher payment. 30. SUBORDINATION. LESSEE aa:eptS this Lease subject to and subordinaIe to any recorded mortgage, deed of trust, or other lien presently encumbering the Premises. LESSOR hereby is vested with fuB power and authority to subordiJwe LESSEE'S interest hereunder to any morlp&e. deed of tnIsl, or other lien hereafter p1accd 011 the Premises, and LESSEE agrees upon demand to execute such further instruments subordinatina this Lease as LESSOR reasonably may request. provided that such further subordination shall be upon the express condition that this Lease shall be I"eCOIJ1ilJCd by the IDOI'tppC and that the rights of LESSEE shaD remain in full force and effCCl durina the Term of this Lease so Ions as LESSEE shall continue to duly perform an its obIiplions hereunder. 31. SALE OR TRANSFER OF PREMISES. If LESSOR !CIJs or transfers aD or any portion of the Premises. LESSOR. on consummatioa of the sale or transfer, shaD be rdeased from any liability thereafter accruinl hereunder. If any security deposit or prepaid rent has been paid by LESSEE. LESSOR can transfer the security deposit or prepaid rent to LESSOR'S successor, and on such ttansfer LESSOR shaD be discharged from any furtbcr 1iabi1ity. 32. ESTOPPEL CERTIFlCAlES. Each party, within leD days after notice from the other party, shaD execute and deliver to the other party. in recordable form. an estoppel certifJCale staIiD& that this Lease is unmodified and in full force and df'ect, or in fuB force and effect as modified. and statina the modUx:ations. The certificate also shaD stale the amount of monthly rent, the dates to which the rent bas been paid in advance, and the amount of any security deposit or prepaid rent. Failure to deliver the certifJCate within such ten day period shaD constitute a default hereunder, and shaD be c:onclusrie upon the party failing to deliver the certifx:are for the benefit of the party reqUesting the certificate and any successor to the party requesting the certificate that this Lease is in fuD force and effect and bas not been modified, except as may be represented by the party requesting the certificate. 33. LESSOR'S RIGHT OF ENTRY. Lessor, or its authorized qents, shaD haw: the riahl. upon reasonable notice, to enter the Premises durina normal worlcing hoon for the folJowin& purposes: (a) inspectina the general condition and stale of repair of the Premises, (b) makina repairs required of LESSOR, and (c) showing the Premises to any prospective purchaser or lessee. If LESSEE bas DOt rmewed or extended this Lease prior to the final ninety days of the Term. LESSOR. or its authorizled apDts, shaD have the riabt to erect. on or about the Praniscs. a customary sip advatisin& the Premises for lease or for sale. LESSOR shall have right of entry in case of emeraencies such as fire. 34. SUCCESSORS. The terms, conditions., and covenants contained in this Lease shaD apply to, inure to the benefit of, and be binding upon the parties hereto and their respective suco:ssors in inlcresl and Iep.I representatives, except as otherwise herein expressly provided. All rights, powers. privileges, and duties of LESSOR under this Lease, includin&. but not limited to, any notice required or pcnnittcd to be delivered by LESSOR to LESSEE hereunder may, at LESSOR'S option. be exercised or performed by LESSOR'S qent or attorney. 35. AUTHORITY TO EXEOJTE. Each individual executing this Lease on behalf of LESSEE represents and warrants that he is duly authoril.ed to execute and deliver this Lease 011 bebaIf of LESSEE in accorda.nce with a duly adopted resolution of LESSEE'S board of directors. in accordance with ~ by-laws. or pursuant to LESSEE'S partnership agreement, and that this Lease is bincting on LESSEE in accorda.nce with its terms. 36. ENTIRE AGREEMENT. This Lease, together with any exlubits, attaclunents, or addenda, contains all agreements of the parties with respect to the subject matter hereof. No prior agreement or understanding pertaining to any such matter shaD be effective. nus Lease may be amended in writing only, signed by the parties in interest at the time of such amendment. 37. SEVERABILITY. The invalidity, iDep1ity, or unent'orc:eability of any provision of this Lease in no way shaD affect the validity, legality, or enforceability of any other provision hc:rcof. 38. JOINT AND SEVERAl. OBUGATIONS. If more than one person or entity is LESSEE. the obliptions imposed on each penon or entity shall be joint and several. 39. AITORNEY'S FEES. In the event suit is brought to enforce or interpret any part of this Lease, the prevailing party shall be entitled to recover as an element of its costs of suit, and nOl as damages, aD attorney's fees actua1Jy incurred (rqardless of any otherwise apolicable court schedule for the determinatioo thereoO. 40. INTERPRETATION OF LEASE. This Lease shall be construed and interpreted in accordance with the laws of the Stale of California in force from time to time. 41. NOTICE. Except as otherwise required by law, any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered whether actuaI1y reaived or DOl when deposited in the United States mail, postage prepaid, addressed to the parties hereto at the respective addresses set forth below, or at such other addresses as they have theretofore specified by written notic::e dclivered in accordance herewith. , "., us.. _ tW at "'" u_ ..ron . '-l/... ........., ._ _......... .... u. rt_ to re_te U. ~ tMcrSW.... [:-:& --..~... c--. ....... wsw.. eM ...... ClIIntc .. " :.:~. tM Ii. ..... of eM .., ........ IflIU .. ..~_...~_ ~ ... _ ~ 1:1 'g' .... of .. -.~ ~ ~ .... ani '-......... ~.......... JCWint 00ItI ani tile .. oC ~ ....... :r A ... "'-- . 1."-" ,... tr" f~. ..., 1\nl~1 MlINatI .. JIIiIIMd_........ w..IM to I.I.ISIII .. h,.., ......, . UlIIt tile ........... ....Ae............... Ua1_ till ... . I:lettw u.... u.:. Sa till tldltbl...... Ifldl............ t1r...... Ie, IIlnWJ .w.u. ~ bU .... ..e.u ~ ......... II ... tIlI& USSIZ 11 able to ~ ~ Sa eJew till ~....... _ .. _....., fd) SIllUnct ao.b ~ .., UIIIZ .. . I'IIIlIlt of UlII ,,~ Jp-.......... ~ Sa ....... ~ CIft ...tJonI&y. 1aIIs... .. ... ..~._, IIIaU .. ~ to IISSIZ by I&'Sl!ItII .. - ~ NIt "to ..... ft. ...... IIDDia ...... ~ ~ to r.aat oC pdIt bill1 _ au4..... Jdaat..... II) u.a .11 tiw USsIZ M 1uft .lxtY CIO) .. .... .st_ 8Cltb of ~ ... to N1ccat. tISSIZ to the DIW~, CIJ ~ .... nI& ~!e ....... .. IIctJcD · ea. of tN. 1eue "'-11 be --,.... 10 that tJIt ~ .wu -* pIQfIIWe 1Ir UIIIa tbc' ~ of the new rr-l_ "'11 be till U. ,..sUnlIiUMt Iatle .. till _ PnIal... .. 1ft IIlCUlt equal to I. FU'CIftt thInot. ~~ Sa _ __ IM11 U. a:lnUI1y Illn.IIuI rwlt tor tht ,., Pr8Ii... be 1eIa tIlM U. ~ aIftIaa _ .pecUJed Ia Slctlen 4eat. hereof, ft. u. pnva1~ -.drat IW'tal nta ...u.. ~ II1ned by LESS:a anrS oertltled .. accunte lit. UCIftIlI Ca1UomIa ~ .-tate...... ..lected by. _ ~ .ffiUatelS ~u.. ~ . 1M ~ olnc. tdtND . ... IIU. 110. raU. of tile stcwint c.nt.v lw It .... one ~ -.u.~ ...... u.::ss:.'S Ill:lt.Sce to NJocAte the a1~ PrW.., .. tJlII ~ oC -1IlIltNr..... iIIuI rent aha11 CDII8'lCe en the ..u. of _ 110' ~ aft.eio uss:a .... ~ the ~Jc:a1 nlccauO't and lMUllatJca of ~ .u ... tile .., ..... 0&" the cSae.. tJlIit USSIZ fint Cl5*W fo&o baaS- .. till _........., .... CQ a.- ant USSIZ aIlall JlC'OlIltly eMCuta _ ~ to tI\Ia teue nc:lUftt U. r~~ of U. ~ anrS W'ft c::har9t 1a tile IlCntJl1J .w.. nnt. IWJIIbla ~. u. CNC:I!WiIftaI. i;~,::r :~~~. ~.'~: :.: ~ ~}~" ...~-.-." _:;~'_::::~~~~f~::i?? ~~ ~; :.~~.j2 ~''---~-~~'~~'.;;.",~~.__.-!!! . _. ~~~_....". ."'"'_ -~.....~..~ ~._. _~. _'to' . ". ~ . _ 44.~ ~---- :~. . 0., --." - --.. .hall 0pU~~7'~ cc haw tnt lnt.erut lA M1 oUlu- c:DIpt1llo 0&" .WI. NIl cc "_._;_0 -:-~.:':" .-tustJleu-SlW:ludlng.. ~ or ClClnCleSS1Cft lA another Ron ~t.hJA a n". CS) I Ja r.ulll ~ rl1:lS U. P'reIQaes IU.SW"ed rRn u. ne.a&"eR out.al4t ~ of tJI PnIIl1ses. WlUocut lWt1ll9 u:ssca', r..u.., 11 LISSIZ etcu14 violate W. CllMI . LESSat 1IWI at ita optlO't 1nclu5e U. CJRlQ lat.. of N:I\ oUlu Men Sa tM 9ft)a ..............-a...._ transac:ted lA U. PTeIlI1sa ~ tht purp:lM of ~ U. ~ nr& b ~ as ~ IUdl ul.1 hac5 actua111 been Il\Ide rial u. Pnnl.... If LISSCIt 10 e1~, .n the ~IICIN of Sec:tlCN . (a. ~ Ill) nlatJ.ng to the pa~ of nr& .. to ~ Ihal1 be appllQble to such 0Uar ltore. ~, W'ft IUCI\ at.cIn abt1ng as of U. "-toe of W. t.ase "1 CIClnt.1Ilua \0 be cperlted, ~, ~ and ClIoNd 11\ the .... IlIl'Nr as en the date of W, r.e.... \ 4'. 110 CPnCH 10 1DS2. h I\D1ss1on q, USSIZ of tJ\l. teue tll) tISSCIt 40ea ftClit a::nst.1tut.e a I'aUYatlco of OC' cptJcn to lease tJoe PnNIiN, ant w. r.u. bec:aIH .ftecti.... cnly \CQl--=ut.1cn ~ U::SSDc MIS ll$Sat. If a a:)f:'Porat~ ~_~ ~".!.a ~ u ~, ~ =t-.aU ~ly tumtlb I..ESSl:R CU'tllied CIOq:on~ resolutlCIN att.atin9 to the IUthadtJ 0( tJ'e oftlcen to ~ the 1eue of N:h axpontlcm." .'. ~ 10 OPDI.' .~. ~ STA:N9.Nr. , ~~~~~i~k~~~~~~rr LESSEE: THE CITY OF SAN BEmJ~.RDINO San Bernardino Police Station Office 2025 Highland Ave~ Ste. G lion 466 West 4th Street . lC.. Premises: San Bernardino, CA 92404 San Bernardino, CA 92401 Attn: Lt. Steve Jarvis Phone: Phone: 714/383-5011 EMERGENCY CONTACT: Name: Phone: LESSOR: Sterling Plaza Partners, a California General Partnersnip c/o Katersky Financial 21800 Oxnard St., Ste. 480 Woodland Hills, CA 91367 818/716-2700 EXECUTED BY LESSEE this LESSEE: I~ , 19 P1 I By: EXECUTED BY LESSOR this ? 0 LESSOR: Sterling p~a Partners, By' zt. fi1 ~ . Harold ~ IiK ...t: -- y General Partner day of ~ ,19?( a California General Partnership Attest: &~~dif/ /' ity Clerk /J Date: Aii~ t /y(T APPROVED AS TO FORM AND LEGAL CONTENT: 61:-t~/l,#/lAj..j/2AA~A - Date: yf. trrAf:'~;l;-JIV~ /1-. f-Yf f~':~ '~:~~=i..:.:__ ~ -.", #.;::.,~'ct:.~i~>..~t~~~.~.~~:;~~~}~ ~'--".~~ ~~~~t~~_~",-~_._~ ,_.~ ..~~ ...~ "'~:::...~~ -..:...." '~.,..., .... .......- .-: - -~. '~_...- . ~,~. . -. --_:.~~~ -_: ""~"""':l:lf;"",- "'.:.;,.:...;.:=-~'-~;:.;,~....,-; ~: ~..... _..'"'-....-..-~~;J-!r.~1:-$...~~~ .~~~~~_"'~~2~;~~:~;.';.~,,",.;.~..~~ ~ -.:6._. . ..jjt~~~-i.-o,;..ii>t.~~:;s~~~'}p~~~ f!;;~~i-"-:c- --r~ :.--: ~~ ~~s.-1..~:--~t:;:-:~,. ~~:~~~""~:_}"<~~-~~ 1 ., I" o _~, VI .:1 . [E!J II Q II . . ft 1- . n ."l Ii . Cf I: II fJ . :, The Premises eo. _! "', OW , , i I . 1'uut: THE CITY \..c' .$.ur aER..'iARnINO t1le o.u.a ~ .... tile Slqptae DIl: Police Community Service Office Cat.. u.... .",....~. o..he4 Pnat..e.: l~t~J ~ .... feat hlatAge: IPJInrIdatalJ , " !Iu1INI Dapu: l~te.lJ 60 oe/OllU u... f-.t 1 llDev feet -1- ~t'. III1tl1111 _ tudl0r4'. talUIla-4=-- ..------------. "" ~;;;?~~~~Jt~ - '- ~~~~;.;,,~~~~~ : :- r :'..;; ...: . ... --~.i...-~';"....: . .~4':":'_.-- ~~'~~~:""'~'+"-~~'" ::j-~q:{-"~-~._._-,..~.. -'.' -::....:..~ ~~. -,-:~'-~~~.:--::. :~ ... --~-- - -: - ~~ --~- ~.:. - ( . L.EGAL OUCRIPTIOll P,\RC:lo NO.1: A ~OP.TION OF L.OT 2, SLOCK 3, WEST HIGHLANDS, AS ~ER PLAT RECORDED IN BOOl 5 OF MAPS, PAGE 77. RECORDS OF SAID COUNTY, AND A PORTION OF HIGHLAND AYENUE. AS SHOWN ON SA!O MAP AS VACATED BY ORDE' OF THE BOARD SUPERVISORS OF SAN SElNAIDINO COU~iY, DAT~O AUGUST 4, 1891, OESC~IB~D AS FOLLOWS: B~~rN~ING AT THE INTERSECTION OF THE EAST LINE OF THAT CERTAIN PARCEL DESClIIED 4$ "PARCEL NO. ." IN THE DEED TO THE CEWTU OF SAN BERUAROIUO. 'ECORDED APRIL 3. UoZ IN BOOK 5674, PAGE 979. OFFICIAL RECORDS, WITH A LINE PARAlLEL WITII AND DISTANT 10.00 FEET NORTHULY MEASURED AT RIGHT ANGlES. FROM TNt NeATH UIIE OF SAID LOT 2; THENCE SOUTH O. 09' 25. EAST ALONG SAID EAST lINE. 170.00 FEET; THENCE NORTH 89. 58' 40. WEST PARALLEL WITH SAID NORTH LINE, 202.00 FEET; lNElCE NORTH O. 09' 25. WEST PARALLEL WITH SAID EAST LINE, 170.00 FEET .TO SAID FIRST MENT IONEO PAAALLEL LINE; THEIICE SOUTH 89. 58' 40. EAST AlONG SAID PARAlLEL LIME. 202.00 FEET TO THE POIUT OF BEGINNING. TOG:THER WITH THE UHOE~LYING FEE ItflEREST WITHIN THAT PORTION OF THE EASEMENT DESCRIBED AS .PARCEL r~. 1- IN THE OEED TO THE COUNTY OF SAH BERKARDlNO, 'ECORDED MARCK 8. 1966 IN BOOK 5584, PAGE 469, OFFICIAL RECORDS. LYING ADJACEMT TO iHE ABOVE OESCiU8EO PARCEL. P.uc~!. NO.2: A PORi ION OF LOrs 1 AHO 2. BLOCX 3. WEST HIGHLANDS, AS PER PUT RECORDED UIIOQIC i O~ MAPS. PAGf;S 77, ~ECORDS OF SAID COUNTY, AND A PORTION OF HIGHLAND AYEJIJE. AS SHOWN ON SAID HAP AS VACATED BY OlOER OF THE BOAlD 0# SUPERVISORS f1F SAN BERNARDINO COUNTY, DATED AUGUST 4. 1891. DESCRIBED AS rOlLOWS: C~ENCING AT THE INTUSECTION OF THE EAST lINE OF THAT CERTAIN PARCEl DESClIIED AS .PARCEL NO.4. IN TME DEED TO THE CENTER OF SAN BERWOlNO. RECORDED APRIL 3, 1963 I~ BOOK 5674. PAGE 979. OFFICIAL RECORDS. WITH A LINE PARALLEL WllH AND 01 ST AHT 10.00 FEET NORTHERLY. rlEASlJaEO AT 'IGHT ANGLES FRaM THE NORTH LIME OF SAID LOTS 1 AHD 2; THEHCE SOUTH O. 09' 25- EAST ALONG SAID EAST LINE, 170.00 FEET 1-0 THE TRUE POINT OF BEGINNING: THENCE NORTH 89. 58' 40. WEST PARALLEL vtTH SAID NORTH LINE. 202.00 FEET; TNtNCE NORTH O. 09' 25. WEST PARAllEL WITH SAID EAST LIN!. 170.00 FEET TO SAID FIRST MENTIONED PARAlLEL LINE: TNtNCE NOlTH .. 58' 40. WEST ALONG SAID PARALLEL lINE. 145.00 FEET; TKEUCE SOUTH O. Ot' 25. EAST PASlALlEL WITH SAID EAST LINt, 330.00 FEET; THENCE SOUTH St. 58' 40. EAST PASlAlL.EL WITH SAID NCRTH LINE. 347.00 FEET TO SAID EAST LINE; THENCE NORTH O. 09' 25. WEST ALONG SAID EAST LINE~ 160.00 FEU TO THE TRUE POINT OF BEGIJlMIJC. TOGETHER-WITH THE UNDERLYING FEE INTEREST WITH THAT PORTION OF THE EASEMEIT OESC~I!ED AS .l>>ARCEL NO.1- IN THE DEED TO THE COUNTY OF SAN BERWOlm, ~ECORDED MARCH 8, 1960 !N !OOK 6584, PAGE 469, OFFICIAL RECORDS lYING ADJACENT TO 7~E A80vE OESC~IaE~ ~~RCEL. . . ~. ~:~i~-c~~;~~~~~~~i..~~~~1::_::':~':~::'17:.: ;;~-~'-~~'l'-~- -~:"~-':""';1:-'~::''t~.:-,.~.~~~-~. :'. -~ ::-<:.- / .:>A~:Z:' NO.3: A_~OP.TION OF LOT ,1, IN BLOCK 3 OF W~ST HIGHLANDS, AS PER PlAT RECORDED IN BOOK 5 o~ MAPS. PAGE 77, RECORDS Or SAID COUNTY. OESCRI8ED AS FOlLOWS: ~EG~~~ING AT THE INTERSECTION OF THE SOUTH LINE OF THAT CERTAIN PARCEL DESClllED .~_:~~o TO STATE MUTUAL !.!FE ASSU~Jl~E C~~P~HY OF WO~CESTEl. RECORDED JUNE 10 19:1) IN aoo~ _3654, ?AGE 544, OFFICIAL RECORDS, WITH A LIME PARALLEL IIlTH AHD OI~TANl 8;75 rE~T. EASTERLY, MEASUR,O AT RIGHT ANGLES, FROM THE WEST LINE OF SAlD ;01. 1 {~AST loINE OF STERLING AVENUE, 82.50 FEET WIDEl; THENCE SOUTH O. OS' 40- _AS~, A~ONG SAIO PARALLEL lINt, 160.00 FEET; THENCE SOUTH 89. 58' .0. EAST P~~:_L~L WITH SAID SOUTH LINt, 150.00 FEET TO THE SOUTHERLY PROLONGATION OF THE ~:~~_~!NE OF THAT CERTAIn PARCEL. OESCRI8ED IN MEMORANOUM OF lEASE BETWEEN THE C~NI~~ OF SAN BERHAR~!NO AHD T~E SANK OF AMERICA, RECORDED DECEMBER 6. 1962 IN 3C~~_ ;a14, PAGE 571, Or~!CIAL RECORDS; THENCE HaRTH O. OS' 40. WEST ALONG SAID SO~:~~RlY PROLONGATION ~HD ALONG SAro WEST lIHE 150 00 FEET TO SAID SOUTH LINE' ~~~~~~r~~~TH 39- 38' 40~ -EST ALONG SAID SOUTH LINE i30.ao FEET TO THE POINT of 1 :~~~.~~~ 1~!T~ 7:-t~ !.!NC~~L'f!NG ;:E~ INTEREST \JITH!.'~ T!iAi ;lORlION OF THE EASEMENT -:..~: . ':.0 AS 'A~C;~ NO. z~. :~j n~~ TO iioiE COUNa OF SMj aE~tlARDIUO RECORO~E'~' :':':- ~'- :9~5 r.~ 30CK 55a.:, '':'~; ':59, JF'ncr.:.:., REC:~:s, LYING AOJACENT TO T .<.-.~, ""..., Jr:s,-~ra~o ;lA~CEt.. . \ EXHIBIT A - _~"_~':_') "v . _ :.~~:~ ~~:~~:z.~ -':'~:~~': -~---' -:.~~ .,..- ~ -~~:._~, .~:.l::i~ .;;-:;;.~~< - - - ~ I _ I _". ~~ _ ::~~~. -. . :~. ..s: ;. .#' - '- {; ;:1 -.. :"'J :_ 4'"_, ~t~. :.'- ~~- ,._.- o' '..s: , ':. _ ,;..... ..._ __ ~ 6. . . -. - - ...,." . ,_. .. ., - ~ - - - -. "'',..-:~:'-~7".''':-~>' -J.'~' -, ",--.:~:~~-=~-'..~.:7~~ '~'.-:." --........- -,~ ---- .. ~~."..-... ~~~:'. ...___~~.'7. # -.. -"'- "~"'::.4 :#;... . .f -I.. ~. \ . . .' -:.~ ~.~-:::~::<..:r~-:--:..-' - c-:' - -;o:.A~~;:~~>~:...~~~::i00~:"'-::,- " ~:.'.~.S:~C, :~;.. _~,,-~:=~~,~~':~: -: -i.~~.~~::- -..s:-...- ..:..~;._,. "_ .J~_..; -~-.'t> ~:;;:~b~ .. (., PAAC!l NO. .: A PORTION 01 LOT I, IN 'Loa 3, 0; WEST HIGHlANDS, AS PER PUT RECOlOlD IN lOOK 5 0; MAPS, PAGE 77, RECOROS OF SAID COUNTY, AHD A POATtOl OF HIGIIlAJIO An_. AS SHOWN ON SAID MAP, AS YACATED SY ORDER OF THE BOARD 01 SUPElYlSORS OF $AM BERNARDINO. COUNTY, DATED AUGUST 4, 1891, DESCRIBED AS FOLLOWS: . COHMENCI~G AT THE INTERSECTION OF THE EAST LINE OF THAT CERTAIN PARCEL OESClIIED AS -PARCEL NO. .- IN DEED TO THE CENTER OF SAH ItRNMDINO. RECOIOED MIlL 3. 1962" IN 800IC 5614. PAGE '7'. OFFICIAL RECOlDS. linN A LINt 'AUUEL WITI AID DISTAJIT 10.00 FEET NOATHOlT. MEASURtD AT RIGHT ANGLES. FROM rHE _TN LIJE OF SAID LOTS 1 An 2; THEJICt NOITH at. sal 40- 'fEST ALOIIi SAID 'AULLEL L_. 347.00 FEET TO THE TaU! POINT OF IElilHNI~; THEICE COIfTl..l. aTa ..511 40- WEst ALONS SAID PARALLn LJIIE. ".23 FEET TO THE _THOU .....,.TI. OF THE . EAST UNt OF THAT CElTAI. PARCEL DUQIIED lit MEMOIWIIUI r1I LfASE taWED tHE CENtER OF SAN IERJfAROIIlO AIIO THE tAl<< OF AMERICA. RECOIDQ DUEHIU S. UIZ II 8CClIC 5814. PAGE 571. OFFICIAL RECOADS; THENCE SOUTIt O. or W EAST AL_ SAID _THEil T PROlONGATIOI AID SAID EAST LIN(. 225.00 FEET TO THE aTHEAST ~ 01 SAID LEASt PARCEL; THENCE SOUTM at- sal ca. EAST ... THE EASTDLr P.OlONGAllOlt 01 TNt SOUTH LINt OF SAID LEASE PARCEL. tt.28 FEET TO ALl. PAbLr..E~ WITH - DISTAIT 347.00 'EEl WESTERLY. MEASURU ALOIIC SAID _TN U. OF LOTS 1 AND 2. FROM SAID EAST LINE OF -PARCEL NO. .-: TIIEJIC( aTH O. 01' 25- WEST ALONG SAID PARALLEL LINE. 225.00 FEET TO THE TRUE POIIIf OF KSIIINI... TOG~iHER ~ITH T!f~ UfmER~YIN; ~::~ lNT:i'.!ST WITKU; iHJ.T !tOlTIOIZ or THE ~M'! O!~::t!!ED AS -~ARC::L NO.1.. Iii O!::D iO TH~ COUt.'TT 0; SM IERllAUINO. RECOIOED foiAaCiI S. 1966 I~ aooc iiaC. PA\i~ 469, o;r"ICI~ ~CORDS, ~YIC ADJACiJIT TO TIE AiO~; OESC.I9~D PARCEL. i>>Aa:~L NO.5: " ~iIQIf OF lOTS 1 AND 2. III BLoce 3 OF IF-ST HIGiUIIOS. AS PER PUT RECORDED III 300c S OfF MAPS, PA;E 77. IECOIDS 0; SAID COUlrif, O:S:RIB!D AS FOlLDVS: CQI.fi::NCING AT THE INTERSECTIOll 0; TNt EAST LIfE or THAT cmAI. PARCEL DESCRII[D .:.s -i>>AaCEL NO.4- lit 0([0 iO THE CE"'nR or SAJI SEaHAROINO. RECOAOc.-o APRIL 3. !~62 IN BOOIC 5674, PAGE 979. orFICIAl il!CORDS, W!iK 4 LIIE PARALLEL IIITH AMI) O!SlAHT 10.00 F:ET WOITHERlY', f.iEASUAED AT RIGHT AHGlU. FRCII THE NORTH UNE OF [ ~!~ :'OTS 1 AHD 2; iHENCE SOUTH O. 09' Zi- EAST .\!.OIIG SAID EAST LINC. 330.00 FE~T TO THE T~UE POINT OF 8EGINNING; THENCE CONTINUING SOUTH O. OIl 25- EAST A!.~NG SAID tAST LINE 138.00 F~!:T TO AH ANGlE POINT IN THE IOUNDARY OF SAID -~UC!:L NO.4.; THENCE LEAYI/.'G SAID BOUNDARY, UORTH 89. sa' 40. WEST PARALLEL I.:IT!'f Sl.tD NORTif LIN! 01 LOTS 1 AHD 2, A DISTANt: 01 716.34 FEET TO A LINE ~A~4L~EL.WITH AND DISTANT 8.75 ;t!T EASTERLY. MEASUR!O AT lIGHT ANGLES. FROM THE ctST LINE OF SAID LOT 1 (UST LINE OF STERLING AY~NUE. 82.50 FEET VIOE); THEIICE HCMiH O. 08' ..0. WEST ALON; SAID ~ARALI.El lIIE. 148.00 FEET TO A POINT THAT a~'\'u SOUTH O. 08' 40- EAST ALONG SAID PAAALLEL LINE, 160.00 FEET FROM ITS 1f(j~RSECTlON WITH THl SOUTH lINE OF THAT CUTAIIf PARCEL DlSCRIBED 1M DEED TO saiE MUTUAl lIFE ASSURAHCE CONPAIIY OF WORCESTER. RECOADED JUNE 10. 195$ I" 80Cl 3654. PAGE 544, OFFICIAL kECO.OS: THENCE SOUTH 89. st' 408 EAST PARALLEL WI1H SAIiJ SOISfH .LINE. 150.00 FEET TO THE SOUTHERLY PROLONGATION (E THE WEST LINE OF' TitAT C!RTAI" ?AaCEL DESCRIBED IN HiMORAHDUM 01 LEA$( WWEEI THE CENTER or SAN 3!~.!:ARDINO AHO THE IIAHK 01 NERICA.' R!COIlDED DECEMBU 5, 1962 IN IOCIC 5814. P~ i7l. OFFICIAL RECOROS. THENCE 1.I0RTit O. 08' 40. IF.ST ALON; SAID SOUTHERU ~il~~o-"GATION, 95.00 FEET TO TifE SOUTHWEST CORNEa OF SA!D LEAS! PARCEL; THEUCE SC:.:iH 89. 58' 40. WT A!.ONG THE SOUTH LIN~ 0; SAID l.EASE PARCEL AND ITS :~sr:~LY PROlON~~TION, 219.28 ~EET TO A LINE PARAlLEL WITH THE DISTANT 347.00 F:~i MESTERlY. MEASURED ALONG SAID NORTH LIN! OF LOTS 1 AND 2. FROM SAID EAST r.:!:: 0; .PAaC!l flOe 4,. iHENCE SOUTH O. 09' 2i- ~ASr 4l.0Hi SAID PARALLEL LINE. lO~.OO FEET iO A POINT THAT B~AP.S SOUTH O. 09' 25- EAST ALONG SAID PAAALLEL !.!r.:~, 330.00 ~E;T ~ROH SAID PARALl.EL LINE THAT IS 10.00 FE!! NORTHERU FItC>>t SAID NO~r" LINE; THENCE SOUTH 89. 58' 40- ;AST PARALLEL WITH SAID NORTH LINE, 347.00 F~:T TO. TH! TRUE POlUT OF BEGINNING. i~~:!~!~ WITH no!:: UNO:RLYING ~:~ Wn:~~Si W:TifHl TifAi ~ORTlOl 0; THE EASaENT ~;S:~:3:D AS -~~~C:l. no. 2-. :H 0::0 TO T~: couniY 0; SAN BERNARDINO. RECOROE~...~ ~.l':'.~::t 3, a~6 !~l 300K 55a~, ~:.~: 4c9, C=~!~l':'l t:~~Il~S, LYING ADJAC!NT TO T .::." ...~. '\ Aa;i: ~ESC~I9EO ~~~C~~. . ~; "',__C "1 - ..... ~'-;~--'..'I-..,..~~~ . , t . '~~ PARCEL. NO.6: THE NORTH 518 fEET OF THE EAST 114 FEET OF LOT 2, BLOCK 3, ACCORDING TO HAP OF WEST HIGHLAND, "IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 77, RECOROS OF SAID COUNTY, SAID 518 FEET BEING MEASURED FROM THE CENTER LINE OF HIGHLAND AVENUE. ADJOINING SAIO PROPERTY ON THE NORTH. NOTE: HIGHLAND AVENUE ADJOINING THE PROPERTY DESCRIBED HEREIN ON THE NORTH IS SHOWN ON THE ~LAT OF WEST HIGHLANDS, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 77, RECORDS OF SAID COUNTY, 120 FEET WIDE; ON AUGUST 4, 1891 THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, CALIFORNIA, ORDERED THAT HIGHLAND AVENUE BE DECLARED A PUBLIC HIGHWAY, 82-1/2 FEET WIDE. PARCEL NO.7: .THE NORTH 201.00 FEET. AS MEASURED ALONG WESTERLY LINE OF THE FOLLOWING DESCRIBED PARCEL: LOTS 1 AND 2, BLOCK 3, WEST HIGHLANDS, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 5 PAGE 77 OF ~~PS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY AND THAT PORTION OF WALNUT STREET 41.25 FEET WIDE ADJOINING SAID LAND ON THE SOUTH AS VACATED BY ORDER OF THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, A CERTIFIED COpy OF WHICH WAS RECORDED SEPTEMBER 8, 1933 IN SOOK 911 PAGE 2 OFFICIAL RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THE NORTH 458 FEET OF SAID LOTS 1 AND 2 AND THE WEST 8.75 FEET THEREOF. , _:~~~:;~~'~.~_:' :-: - :~;; ::-: :_T~#~ .-..;..;......~...:.:-- ~ .'< -,.:"~~.;~}-?!,:~?~,,, - ~ :.:r~'~~_ ~~3:~~~_ ._, ; ~~€~i ~~~-~~~~_,_~;-~ :~~t~::~~~ ---~.~.!- ..: .... .... ~ ,.. . -.. . . e..-:'_.~~...~~-- ~DBJII)UJI To Lease dated OCtober 17. 1989 between Sterlina Plaza Partners , a California General Partnership, as ("LESSOR"), and Tbe Citv of San Bernardino , as ("LESSEE"). THIS ADDENDOM is made this ~ day of october and between Sterlina Plaza Partners California General PartnerShip, as Lessor and Bernardino , as Lessee. , 19J.L, by , a The Citv of San WHEREAS, Lessor and Lessee are the parties to the above described lease for the premises known as 2025 Hiah1and Ave.. Suite G San Bernardino CA 92402; and WHEREAS, the parties desire to amend said Lease. NOW, THEREFORE, in consideration of the autual promises and obligartions containeed herein, the adequacy and sufficiency of which i. hereby acknowledqed, Lessor and Lessee agree as follows: IIDIYxtJX IllDr.r Lessee shall pay to Lessor the amount of $1.00 per year. DBLIVBRY O~ PRBMISBS Lessor aqrees to deliver the premises in as is condition and to include the following improvements: 1. Carpet 2. Paint 3. Conference Roo. and office II!n! Lessor agrees to install at its sole expense a standard business sign, meetinq Lessor's sign criteria and city codes, above the storefront of the Premises within sixty (60) days of the Lease Commencement Date. 1rARRAlI'1' 1ft) OPBJI Lessee's failure to open for business to the public within sixty (60) days following the Lease Commencement Date shall constitute a default of the Lease and Lessor shall be entitled to pursue its remedies pursuant to the Lease. GOVBlUUO.!:JI'l'AL APPROVALS Lessor shall be responsible tor obtaininq all necessary construction, sign and occupancy perJllits. If Lessee diligently pursues such permits and is unable to obtain the same then Lessor shall have the option but not the obligation to obtain such perJllits on behalf of Lessee, at the Lessee's expense. If such permits are not obtained by either party, the Lease ahall =emain in full effect, but may be ter1llinated at Lessors sole discretion upon construction. Lessor makes no warranties or statement, as to the suitable of the premises for Lessee's business or Lessee's ability to obtain necessary permits. EXCEPT AS HEREIN SPECIFICALLY EMENDED, all provisions of said Lease are hereby confirmed and ratified. IN WITNESS WHEREOF, the parties haereto have executed this Addendum in multiple conterparts on the date first above written. -- - . -.. The City of San Bernardino Page Two Addendum '4_._-_. __.._ .....-.r...._. _." _ ... .~__~ rnar4ino LBSSOR: sterling' Plasa Partners a California General partnership ~ r--- ~ --- Harold A. Katersky General Partner Date: -(~/~..:r. /Pi'f , ~ Attest: /~~~ : . (' ~l1ty ~lerk Date: ~~ By: Date: APPROVED AS TO FORM AND LEGAL CONTENT By:~ ,/ ity A orney Date: If ;-11 . ~/ /?cr61' ""-.- ,I .. LEASE between' STERLING PLAZA PARTNERS a California General Partnership and ( "LESSOP" ) THE CITY OF SAN BERNARDINO ( "LESSEE" ) I , I~ i /" /' TABLE OF CONTENTS SECI10N NAME PAGE 1. Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. Leased Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4. Rent ............................................................. 1 S. Security I>eposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6. Delay in Delivery of Possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 7. Use of PreIn.ises .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8. Uses Prohibitoo ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9. LESSEE'S Conduct of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 10. Compliance with uw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 11. Shopping Center Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 12. SigIlS ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 13. Alterations, Additions and Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 14. Utility Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 S . Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 16. Parking and Common Area Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 17. Common Area Improvements ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 18. Taxes and Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 19 . Maintenance ...................................................... 4 20. Payment of Taxes, Maintenance, and Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 4 21. Insurance ......................................................... 4 22. Indemnification ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S 23 . Damage or I>estruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S 24. Condemnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2S. Assignment and Subletting .. . .. . . . . . . . . .. . . . . .. . .. . . . . . . . . .. . . . . . . . .. 6 26. Surrender of Premises by LESSEE .. .. . .. .. .. . .. . . .. .. . . . .. .. .. .. . . . .. 6 27. Holding Over .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 28. Default ........................................................... 7 29 . Waiver of I>efault ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 30. Subordination ..................................................... 8 31. Sale or Transfer of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 32. EstOPPel Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 33. LESSOR'S Right of Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 34. Successors ........................................................ 8 3S. Authority to Execute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 36. Entire Agreement .................................................. 8 37. Severability ....................................................... 8 38. Joint and Several Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 39. Attorney's Fees .................................................... 8 40. Interpretation of ~, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 41. Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Exhibit A - Plot Plan ............................................... Exhibit B - ~al Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit C - Tenant Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit D - Building SigIlS ........................................... Addendum ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment ....................................................... Guarantee of Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . INITIAL \'. II LEASE I} ~~Tl1m' THIS Lease is made and entered into by and between STERLING PLAZA T RS ("LESSORj, a California Limited Partnership, and THE CITY OF SAN BERNARDINO _ ("LESSEEj, as of the date of execution hereof by LESSOR. 2. LEASED PREMISES. LESSOR hereby leases to LESSEE, and LESSEE hereby leases from LESSOR, that certain real property ("Premisesj delineated on Exhibit A (plot Plan), which Premises constitute a portion of that certain real property described in Exhibit B (Legal Description), situated in the City of SAN BERNARDINO ,Countyof SAN BERNARDINO , State of California. LESSEE hereby accepts the Premises in the condition existing as of the date of possession hereunder, subject to all applicable zoning, municipal, county, and state laws, ordinances, and regulations governing and regulating the use thereof, and accepts this Lease subject thereto. LESSEE acknowledges that LESSOR has not made any representation or warranty as to the suitability of the Premises for the conduct of LESSEE'S business. 3. TERM - , ("Commencement Datej on the earlier of (i) thirty (30) days after Lessor in writing that LESSOR'S work, as set forth on Exhibit C, has been . completed, or (Ji) the day LESSEE opens for business on the Premises, an years thereafter. However, if the C ate is not the frrst day of a calendar month, the Term shall expire on the . . (b) For Premises existing on the date of execution hereof, the term of this Lease ("'Termj shall commence on NOVEMBER 1, 1989 or date at which LESSEE takes possession of premises, whichever occurs frrst, ("Commencement Datej and shall expire on OCTOBER 31, 1991 . See 4. Addendum ($ deduction or offset, on or before the first hereof, LESSEE shall . . calendar year of the Term. The base for computing such adjustment shall be the Consumer U.S. Average, All Urban Consumers (All Items, 1967 = 100), as published by the United Department of Labor, Bureau of Labor Statistics ("lndexj, which is published for the Novem . ediately preceding the Commencement date (Beginning Index). If the Index published e November immediately preceding the Adjustment Date ("Adjustment Indexj has increased e Beginning Index, the Minimum Rent for the immediately following calendar year shall be incr by the result obtained by multiplying the Minimum Rent by the percentage increase, if any, in t Justment Index over the Beginning Index. If the Term commences on a date other than the fi ay of a calendar year, the initial adjustment required hereunder shall be determined by incr e Minimum Rent by the prorata portion of the percentage increase in the Adjustment Inde the Beginning Index allocable to that portion of the Term that has transpired during the initi ndar year of this Lease. Notwithstanding anything herein to the contrary, in no event shall the .. urn Rent, as adjusted, be less than one hundred six percent (1060/0) of the Minimum Rent payabl ESSOR for the month of December immediately preceding each Adjustment Date, regar of the Commencement Date. If the Index is discontinued, LESSOR shall select another similar . . -1- r or any other amount or charge required to be paid under this amounts or charges, including, without limitation, utilities , and insurance, collectively shaD be deemed to pay to LESSOR, in addition to such unpaid amounts, a late charge hEB8I:~"B ~ w~;'~ ~ :=~:;;:~t:(,.~ 1<<_1\1 1 h t. -- ~ ff(t ill URIIl!eliCft with !uk ef . S. . amount of ($ ), as a security deposit ("Security Deposit") fo LESSEE of its obligations hereunder. If LESSEE is in default, LESSOR m the Security Deposit, or any portion thereof, to cure such default, or to compensate LESSOR y damage sustained by LESSOR resulting from LESSEE'S default. LESSEE shall pay to L immediately upon demand an amount equal to the portion of the Security Deposit expend pplied by LESSOR so as to maintain the Security Deposit in the amount initially deposited wi R. If LESSEE is not in default at the expiration or termination hereof, LESSOR shall the Security Deposit to LESSEE. LESSOR'S obligations with respect to the Security Depos. ose of a debtor and not a trustee. LESSOR may commingle the Security Deposit with LESS eneral and other funds and LESSOR shall have no obligation to pay LESSEE interest UPQ urity Deposit. Notwithstanding the foregoing, exercise of the options given LESSOR und Section S in no way shall affect or abrogate any other claim or remedy available to LESSOR h , . 6. DELAY IN DELIVERY OF POSSESSION. (a) With respect to Premises to be constructed, LESSOR shall not be subject to any liability resulting from any delay in delivery of possession of the Premises, and this Lease shall remain in full force and effect; provided, however, that if possession of the Premises is not delivered within one year after the date of execution hereof by LESSOR, LESSOR and LESSEE each shall have ten (10) days after the expiration of such year within which to notify the other in writing that it desires to cancel this Lease, in which case all consideration paid by LESSEE shall be refunded in full satisfaction of all obligations and liabilities of the parties under the Lease. (b) With respect to existing Premises, LESSOR shall not be subject to any liability resulting from any delay in delivery of possession of the Premises, and this Lease shall remain in full force and effect; provided, however, that if possession of the Premises is not delivered within ninety (90) days after the Commencement Date, LESSOR and LESSEE each shall have ten (10) days after the expiration of such ninety (90) days within which to notify the other in writing that it desires to cancel this Lease, in which case all consideration paid by LESSEE shall be refunded in full satisfaction of all obligations and liabilities of the parties under the Lease. 7. USE OF PREMISES. The Premises shall be used and occupied only for the purpose of: PO~ICE CO!~UNITY SERVICE CENTER. 8. USES PROHIBITED. LESSEE shall not do or permit anything to be done in or about the premises which will in any way obstruct or interfere with the rights of other lessees or occupants of the Shopping Center or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose, nor shall LESSEE cause, maintain or permit any nuisance in, on or about the Premises. LESSEE shall not commit or allow to be committed any waste in or upon the Premises. 9. LESSEE'S CONOUer OF BUSINESS. l.E&g~ le:enante and "818 dial 88RtinllSlI8lr anil tmintePfll~t8d1y d~ the l'~PIB kereef, it shaH e~ePfltt 8Ilfl e6ftmset Mtbitt th, PfCJl~ A btU~ cti de88PihtMI iB ElltisB 1, ana iliat it shaH aWf the PflRli6. n~th AlffiGitRt (jailS ,oRlannel, st8ell she PFlR1i8es '.~~~ ~~ttMe.lMf1eh8Rdi8e, and BhaH eJlefNe seMd h_iness JJf8etiees, ~ttt ~ft<< and cfhc;"oc} .te as to I\~n~.. t~tt R~jptJ f()i tIll, Ju~tum lxl.:dit ~f LESSOR ana LESSIJE. During the entire Term hereof, LESSEE shall keep the Premises continuously open for business and cause LESSEE'S business to be conducted therein during the usual business hours of each and every business day as is customary for businesses of like character in the city in which the Premises are located. 10. COMPLIANCE WIl'H LAW. LESSEE, at its expense, shall comply with all govemmentallaws, ordinances and regulations applicable to the use of the Premises, including the obligation to alter, maintain, or restore the Premises in compliance with such laws, ordinances, and regulations, and promptly shall comply with all governmental orders or directives for the correction, prevention, or abatement or nuisance in, upon, or connected with the Premises. 11. ("Center") in all materials (regardless of the tyPe of m . or promote its business, inclu . . ... vert1SeIl1ents, business cards, and radio and television -?- 12. SIGNS. LESSEE shall not have the right to place, construct, or maintain on the glass panes or supports of the show windows of the Premises, the doors, exterior walls or the roof of the buildina in which the Premises are located, or on any interior portions of the Premises that may be visible from the exterior of the Premises, any sigtls, advertisements, names, insignia, trademarks, descriptive material or any other items without fIrSt procuring LESSOR'S written consent. LESSOR shall designate the size shape, color, design, and location of all exterior signs to be installed by LESSEE. LESSEE agrees to submit to LESSOR copies of LESSEE'S sign plans for LESSOR'S written approval within thirty (30) days after LESSOR'S execution hereof. LESSOR, at LESSEE'S cost, may remove any item placed, constructed, or maintained that does not comply with this Section 12. LESSOR, at LESSOR'S option, may install a pole and pole sign. If such pole and pole sign are installed by LESSOR, LESSEE shall pay its proportionate share of the cost of purchasing and maintaining such sign. Lettering on such pole sign will be installed by LESSOR at LESSEE'S expense with LESSOR'S approval of style and color. All signs that are permanently attached to the Premises shall become the property of LESSOR at the tennination or expiration hereof; provided, however, that LESSEE promptly shall remove, if LESSOR so elects, all such signs, and LESSEE shall repair any damage caused by such removal. LESSEE shall not place, construct, or maintain on the Premises any advertising media, including, without limitation, search lights, flashing lights, loudspeakers, phonographs, or other visual or audio media. 13. ALTERATIONS, ADDITIONS AND IMPROVEMENTS. (a) LESSEE shall not create any openings in the roof or exterior walls, nor make any structural alterations, additions or improvements to the Premises, without the prior written consent of LESSOR. LESSEE shall have the right at all times to erect or install shelves, bins, equipment and trade fixtures, provided that LESSEE complies with all applicable governmental laws, ordinances and regulations relating thereto. LESSEE shall have the right to remove at the termination or expiration of this Lease such items so installed, however, prior to such termination or expiration, LESSEE shall repair any damage caused by such removal. (b) All alterations, additions or improvements made by LESSEE that are permanently attached to the Premises shall become the property of LESSOR at the termination or expiration hereof; provided, however, that LESSEE promptly shall remove, if LESSOR so elects, all alterations, additions, improvements, or any other property placed in or on the premises by LESSEE, and LESSEE shall repair any damage caused by such removal. (c) LESSEE has the right to make minor interior alterations, of a non-structural nature, without LESSOR'S consent. (d) If LESSEE makes any alterations, additions, or improvements to the Premises after obtaining LESSOR'S consent, the alterations shall not be commenced until ten (10) days after LESSOR has received notice from LESSEE stating the date work is to commence, so that the LESSOR can record and post an appropriate Notice of Nonresponsibility. 14. UTILITY SERVICES. LESSEE shall be solely responsible for, and promptly pay when due, all charges for water, gas, telephone, heat, electricity, sewer, trash collection, or any other utility used or consumed on the Premises during the Term. If LESSEE refuses or neglects to pay any such utility charges, LESSOR may, at LESSOR'S option, pay such charges, and LESSEE shall upon demand, pay such amount and all costs incurred in connection therewith to LESSOR. In no event shall LESSOR be liable for an interruption or failure in the supply of any utilities to the Premises, unless proximately caused by the gross negligence or intentional act of LESSOR. In the event that any utility usage of LESSEE is not separately metered or billed, LESSEE agrees to pay LESSOR its equitable share of the charges for each utility as determined by the common meter or bill. However, LESSOR shall have the option, in its sole discretion, to allocate utility charges with reference to criteria other than comparative floor area (including, without limitation, the particular uses and hours of usage by lessees) and LESSEE agrees to pay to LESSOR, upon receipt of a statement from LESSOR, the amount of such allocation. If LESSEE disputes the reasonableness of such allocation, LESSEE may, as its sole and exclusive, bargained-for-remedy, arrange for separate billing for trash collection, and/or cause, at its sole cost and expense, the installation of separate meters or submeters and incidental auxiliary lines for the Premises. 15. LIENS. LESSEE shall keep the Premises and the property on which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred or alleged to have been incurred by or under LESSEE. LESSOR may require, at LESSOR'S sole option, that LESSEE provide to LESSOR, at LESSEE'S sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1 Yl) times the estimated cost of any improvements, additions, or alterations in the Premises which the LESSEE desires to make, issued by a surety satisfactory to LESSOR, to insure Landlord against any liability for mechanics' and materialmen's liens and to insure completion of such work. 16. PARKING AND COMMON AREA CONTROL. (a) The Common Area of the Center is defmed as that space beyond the exterior walls of all Center buildings, and within the exterior boundaries of the real property described in Exhibit B. The Common Area consists of, but is not limited to, all walkways, driveways, sidewalks, parking areas, landscaped areas, loading zones and plazas. Such Common Area shall be available for the non-exclusive use of LESSEE, provided that condemnation or other taking of any or all of the Conunon Area by any public authority, or a sale thereof in lieu of condemnation, shall not constitute a violation of this provision. (b) LESSOR at all times shall have the right and privilege of determining and changing the nature and extent of the automobile parking and the Common Area, and of modifying the plot plan of the Center as required for any expansion or modification thereof as in its opinion are deemed to be desirable and in the best interests of all persons using the Center and the Common Area. (c) LESSOR also shall have the right to establish, and from time to time to change, modify and enforce against LESSEE, and other users of the Common Area, such reasonable rules and regulations as may be deemed necessary and advisable for the proper and efficient operation and maintenance of the -3- Common Area. LESSEE shall observe and comply with all such rules and regulations including all . modifications thereof and additions thereto from time to time put into effect by LESSOR. LESSOR shall not be responsible to LESSEE for the violation or nonperformance by any other LESSEE or occuPant of the Center of any rules or regulations. LESSEE agrees that LESSEE and LESSEE'S employees are prohibited from parking in the Center lot unless LESSOR designates a portion of the parking lot for employee parking. 17. COMMON AREA IMPROVEMENTS. LESSOR, in its sole discretion may make such reasonable additions to, or modifications of, the Common Area as it deems necessary or advisable to preserve, protect, or promote the common good of the tenants of the Center. In the event LESSOR undertakes such reasonable additions or modifications, LESSOR may require LESSEE to pay its equitable share of the cost thereof, on such reasonable basis as LESSOR may select. ** 18. TAXES AND ASSESSMENTS. (a) LESSEE shall pay before delinquency all taxes, assessments, license fees and other charges that are levied and assessed against LESSEE'S improvements, personal property, fIXtures installed or located in or on the Premises that become payable during the Term. On demand by LESSOR, LESSEE shall furnish LESSOR satisfactory evidence of such payment. (b) LESSEE shall pay to LESSOR its proportionate share of all "Taxes" applicable to the Center in the manner set forth in Section 20. The term "Taxes" shall include all taxes, excises and assessments, both general and special, levied on or assessed against LESSOR or the Center, and all taxes, excises or assessments measured by or based in whole or in part upon rents received or receivables by LESSOR or upon the business of leasing the Center including those taxes, excises and assessments imposed in addition to or as a substitution in whole or in part for any taxes prevailing at the Commencement Date. Taxes shall not include any state or federal income, estate succession, inheritance or transfer tax imposed upon LESSQR. 19. MAINTENANCE. LESSEE, . . , .. .. improvements of the Premises in good repair and condition including, but not .. , necessary repairs and replacements of the plumbing, electrical wiring, windows' ass, plate glass, doors, and painting. LESSOR shall provide, as necessary, maint ,arr, replacement, repainting and cleaning of all exterior areas of the building 0 . e remises constitute a portion, including the roof, air conditioning, and C ea, and provide all necessary utilities to the Common Area. LESSEE shall pa t Its proportionate share of the cost of such maintenance, repair, replacement, repainting, . . . . If LESSEE does not reasonably maintain the Premises, LESSOR shall have the right (but not the obligation) to cause repairs or corrections to be made, and any reasonable costs therefore shall be payable by LESSEE to LESSOR on the next rental installment date. LESSOR fIrst shall give three days written notice to LESSEE before any such repairs or corrections are made by LESSOR. LESSEE'S obligations set forth in this Section 19 form a material part of the consideration for this LEASE, and LESSEE hereby waives all rights to make repairs at the expense of LESSOR as provided by any law, statute or ordinance how or hereafter in effect, including, but not limited to, Civil Code Sections 1941 and 1942. 20. PAYMENT OF TAXES, MAINTENANCE, AND INSURANCE. (a) l.iiilii okaH ,,~ to hti~~QR, 8ft tile Mat tI~. sf eaek eftIeftsftf' 1ft61\tk, LESSEE~ CJtmlM,d 1R8Bthl) Bhftf~ sf tftt 'FmteJ Idttt:'~6 to th, c...lt",. (~ ~",b.Ou 18), hES01.91.9l;J __t~__~Lu AU~UtiJJ ..L_~ ",f tl., 19[t of maiRtainiRs tAl C'At.r (f;. ~egtig.A Ip-), and tAt astvalIR9Rthly 898t sf tile iMtIftlftee lIC3(PihM il\ geetisR Jl (a). (b) LESSEE'S proportionate share of taxes, IRMRteR8Ree, ani WllFlmSQ relating to the Center shall be based upon the proportion that the total floor area of the Premises bears to the total floor area of the Center. However, if LESSOR, in its absolute discretion, determines that such method is inequitable, LESSOR may prorate such items on the basis of usage or other equitable considerations. (c) LESSOR shall furnish to LESSEE, in December of each calendar year or, at LESSOR'S sole option, in June and December, an expense statement setting forth the actual Taxes, ~QmmQA ~9a lRalnt8RaRS9 9RQfo8Il1. ana mfJ.uo........... prAn'\111n'\c incurred for the annual or semiannual period covered by the expense statement, together with the actual amount of estimated monthly charges collected for the period covered. .. .. covered as against all estimated monthly charges collected R may increase the est~ted monthly char es e lffie any semi-annual or annual expense statement is 21. INSURANCE. (a) LESSOR shall obtain and maintain a fIre insurance policy covering the building of which the Premises constitute all or a portion. . . such fIre iI'.surance policy in the manner set forth in Section 20. The PQli s include a special extended coverage endorsement, or its equivale cue, but not be limited to, the perils of fIre, lightning, vandalism, mali . . an extended coverage. Such policy also shall include rental value insur or any period up to one year during which the Premises are partially or totally (b) maintain in full force and effect $1,000,000 combined single limit comprehensiv msurance, which includes death or injury to one or more persons and y of others. Such insurance shall include plate glass coverage. Such insuran . name LESSOR as an additional insured, and a certificate issued by the insur ce is in force shall be furnished to LESSOR. Such certificate of insuran e t' days' notice in the event the policy is terminated for any reason. Not more f e ** Property Taxes estimated to be $0.00. I~ -4- , (b), (c) and (d) shall be provided by companies rated - nsurance Guide.. or, in the , any comparable rating in any similar guide selected by (c) LESSEE shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which will in any way increase the existing rate of or affect any fU'e or other insurance upon any building within the Shopping Center or any of its contents, or cause a cancellation of any insurance policy covering any such building or any part thereof or any of its contents, without the consent of LESSOR and the amount of such increase, if any, shall be paid by LESSEE to LESSOR upon demand. (d) LESSOR and LESSEE release each other, and their respective shareholders, directors, officers, employees, agents and representatives, from any claims for damage to any person or to the Premises, and to the fIXtures, personal property, improvements, and alterations of either LESSOR or LESSEE in or on the Premises or the building and other improvements in which the Premises are located that are caused by or result from risks insured against under any insurance policies carried by either party pursuant to any provision of this Section to the extent of the proceeds from such policies (but such release does not apply to uninsured claims or claims in excess of the insurance coverage required under this Section). LESSEE shall cause each insurance policy obtained by it pursuant to this Section to provide that the insurer waives all right to recover by way of subrogation against either party in connection with any loss covered thereby. 22. INDEMNIFICATION. LESSOR shall not be liable to LESSEE, or LESSEE'S officers, directors, shareholders, employees, representatives, agents, invitees, licensees, or to any other person for any injury or damage to property, on or about the Premises, resulting from any cause whatsoever, unless caused by or due to the intentional act or gross negligence of LESSOR, its officers, directors, shareholders, employees, agents, or representatives. LESSEE agrees to indemnify and hold LESSOR free and harmless from any claim, demand, action, liability, loss, or expense (including actual attorney's fees) arising out of any such damage or injury, unless such damage or injury has resulted from LESSOR'S intentional act or gross negligence, or unless such injury or damage is covered by any of the insurance policies required under Section 21 hereof, in which case such indemnification and hold harmless shall apply to the extent of any claim, demand, action, liability, loss, or expense in excess of insurance proceeds. 23. DAMAGE OR DESTRUCfION. (a) If the Premises or the building and other improvements in which the Premises are located are totally or partially damaged or destroyed from a risk covered by the insurance described in Section 21(a), rendering the Premises totally or partially inaccessible or unusable, LESSOR promptly shall repair or restore the Premises or the building and other improvements in which the Premises are located to substantially the same condition as they were in immediately before such damage or destruction. Such damage or destruction shall not terminate this Lease. However, if the Premises or the building and other improvemnts in which the Premises are located are not repaired or restored within six months after the date of damage or destruction, either party may terminate this Lease, all insurance proceeds relating to the Premises or the building and other improvements in which the Premises are located and any other property of LESSOR shaD be paid to LESSOR, and neither party shall be liable to the other except with respect to accrued, but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsured claims or claims in excess of insurance coverage. During any period that the Premises are totally or partially inaccessible or unusable, there shall be an equitable abatement of rent in an amount not to exceed the rental value insurance proceeds contemplated by Section 21(a) hereof, which proceeds shall be paid to LESSOR and LESSEE shall be liable for the balance, if any, of the rents, fees, costs and other charges due. If the cost of the repair or restoration of the Premises or the building and other improvements in which the Premises are located exceeds the amount of the proceeds received from the insurance required under Section 21(a), LESSOR can elect to terminate this Lease by giving notice to LESSEE within fifteen days after determining that the repair or restoration cost will exceed the insurance proceeds. In the case of damage to or destruction of the Premises only, if LESSOR elects to terminate this Lease, LESSEE, within fifteen days after receiving LESSOR'S notice to terminate, can elect to Pay to LESSOR, at the time LESSEE notifies LESSOR of its election, the difference between the amount of insurance proceeds and the cost of repair or restoration, in which case LESSOR shall repair or restore the Premises. If LESSOR elects to terminate this Lease and LESSEE does not elect to contribute toward the cost of repair or restoration of the Premises, this Lease shall terminate, and neither party shall be liable to the other except with respect to accrued, but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsured claims or claims in excess of insurance coverage. (b) If the Premises or the building and other improvements in which the Premises are located are totally or partially damaged or destroyed from a risk not covered by the insurance descnDed in Section 21(a), rendering the Premises totally or partially inaccessible or unusable, LESSOR shall have the election either to repair or restore the Premises or building and other improvements in which t.'1e Pre=rJses are !C"..ated or to terminate this Lease. However, if the Premises or the building and other improvements in which the Premises are located are not repaired or restored by LESSOR within six months after the date of damage or destruction, either party may terminate this Lease, and neither party shall be liable to the other except with respect to accrued, but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsured claims or claims in excess of insurance coverage. In the case of damage to or destruction of the Premises only, if LESSOR elects to terminate this Lease, LESSEE,within fifteen days after receiving LESSOR'S notice to terminate, can elect to pay LESSOR, at the time LESSEE notifies LESSOR of its election, the actual cost of repairing or restoring the Premises, in which case LESSOR shall repair or restore the Premises. If LESSOR elects to terminate this Lease and LESSEE does not elect to bear the cost of repair or restoration of the Premises, this Lease shall terminate, and neither party shall be liable to the other except with respect to accrued, but unpaid obligations, and except as provided in Section 21(d) as it applies to uninsured claims or claims in excess of insurance coverage. -5- (c) Nothing contained in this Section shal1 obligate LESSOR to repair or restore any of LESSEE'S tenant improvements, equipment, materials, supplies, inventory, or similar items. (d) Notwithstanding anYlhing contained in this Section to the contrary, if the Premises or the building and other improvements (including Common Area) in which the premises are located are totally or partially damaged or destroyed during the fmal twenty-four months of the Term hereof, or if more than twenty percent of the Premises or the building and other improvements (including Common Area but excluding all land) in which the Premises are located are damaged or destroyed at any time by an uninsured risk, LESSOR shall have the absolute right to terminate this Lease upon ten days notice to LESSEE. 24. CONDEMNATION. (a) If all or any part of the Center, the Common Area, the Premises, or any interest herein is taken by condemnation, or if all of any part of same, or any interest herein is sold to the condemning authority under threat of condemnation, the rights and obligations of LESSOR and LESSEE shall be determined pursuant to this Section 24, and the parties hereby waive the provisions of Code of Civil Procedure Section 1265.130. (b) If there is a total taking of the Center, the Common Area, or the Premises, this Lease shall terminate on the date of such taking. (c) If ten percent or less of the total square footage of the Premises (exclusive of the Common Area) is taken, LESSOR shall restore the Premises to the extent of any condemnation proceeds actuaDy received, and this Lease shall remain in full force and effect. If more than ten percent of the total square footage of the Premises (exclusive of the Common Area) is taken, LESSOR may, in its sole discretion, either (i) restore the Premises, in which case this Lease shall remain in full force and effect, or (il) terminate this Lease upon ten days written notice to LESSEE. . (d) Subject to Section 24(c), if less than ten percent of the total square footage of the Common Area or the Center is taken, LESSOR shall restore the same to the extent of any condemnation proceeds actually received, and this Lease shall remain in full force and effect. Subject to Section 24(a), if more than ten percent of the total square footage of the Common Area or the Center is taken, LESSOR may, in its sole discretion, either (i) restore the Common Area or the Center, in which case this Lease shall remain in full force and effect, or (il) terminate this Lease upon ten days written notice to LESSEE. (e) If any portion of the Premises is taken and this Lease remains in full force and effect, all rental payments, fees, costs, and charges payable by LESSEE hereunder shall be abated in proportion to the degree to which LESSEE'S reasonable use of the Premises is imPaired. Except for such abatement, if any, LESSEE shall have no claim against LESSOR in the event of condemnation, and LESSEE shall be entitled to no share in any award or other consideration paid with respect to any condemnation of the Premises except any award, or portion thereof, relating to the value of improvements (including fixtures) that LESSEE has a right to remove, but elects not to move. (0 Notwithstanding anything contained herein to the contrary, if there is taking during the fmal twenty-four months of the Term, LESSOR, in its sole discretion, shall not be required to restore the Premise, and this Lease may be terminated by LESSOR upon ten days written notice to LESSEE. 25. .. . and shall not sublet the Premises, or any part thereof, or Pmllit any other person or entity (except and servants of LESSEE) to occupy or use the Premises, or any portion thereof, without fi written consent of LESSOR, which consent shall not be unreasonably withheld. In det whether to consent to an assignment or sublease, LESSOR may consider, by way of and not by way of limitation, the following: proposed use of the Premises; current uses in the r; competitive effect of the proposed use on other tenants of the Center; use of the Common of the Center by the proPOSed tenant; fmancial capacity of the proposed tenant; business repu . of the proposed tenant; suitability of Percentage Rent with respect to the proposed tenant; q . f the business operations of the proPOSed tenant; and the business experience of the pro t. Notwithstanding the foregoing, LESSOR reserves the right, at its option, to terminate this rather than consent to such assignment or subletting. Consent by LESSOR to one assignment, s , occupation or use by another person or entity shall not be deemed to be a consent to any sub nt assignment, subletting, occupation or use by another person or entity. Consent to an assignme ubletting or occupation shall not release the origi.nal LESSEE from liability for the continued rmance of the terms and provisions on the part of LESSEE to be kept and performed hereunder a condition to LESSOR'S consent to an assignment of this Lease or a sublease of the Premises, R shall have the option to require that the amount of any increased rental or other payments a Ie to LESSEE pursuant to such assignment or sublease be paid to LESSOR as additional rent under. LESSEE agrees to reimburse LESSOR $250 for any assignment or subletting and the 26. SURRENDER OF PREMISES BY LESSEE. Upon the expiration or termination hereof, LESSEE shall surrender the Premises to LESSOR in broom clean condition, and all LESSEE'S improvements and alterations shall be in good condition (except for ordinary wear and tear occurring after the last necessary maintenance made by LESSEE, and except for alterations t.hat LESSEE has the rlga'lt or is obligated to remove under the provisions of Section 13 hereoO. LESSEE shall remove all its personal property from the Premises, and LESSEE shall perform all restoration made necessary by the removal of any alterations or LESSEE'S personal property to restore the Premises to original plan condition. 27. HOLDING OVER. If LESSEE, with LESSOR'S consent remains in possession of the Premises after expiration or termination of the Term, or after the date in any notice given by LESSOR to LESSEE terminating this Lease, such possession by LESSEE shall be deemed to create a month-ta-month tenancy terminable at any time upon thirty days written notice by either party. During any such month-to-month tenancy, LESSEE shall pay all Minimum Rent,. Percentage Rent, Additional Rent and all other fees, costs, and charges required hereunder. All provisions of this Lease, except those pertaining to the Term, shall apply to such month-ta-month tenancy. However, the Minimum Rent shall be increased by fifty percent (50070). Should LESSEE hold over the Premises without the express written consent of LESSOR, LESSEE shall indemnify and hold LESSOR harmless from loss or liability resulting from such holding over, -6- inchiding. without limitation. any claims made by any succeeding Lessee. . 28. DEFAULT. (a) The occurrence of any of the following shall constitute a default by LESSEE: (i . . . . Rent. or any other fee. cost (il) LESSEE fails to comply with any term. condition. or covenant of this Lease. other than the payment of rentals. fees. costs or other charges. and does not cure such failure within ten days after written notice thereof to LESSEE. If such failure cannot reasonably be cured within ten days, LESSEE shall not be in default hereof if LESSEE commences to cure the default within the ten day period and diligently and in good faith continues to cure such default. (ill) LESSEE becomes insolvent or makes a transfer in fraud of creditors. (iv) A court having jurisdiction in the premises enters a decree or order for relief in respect of LESSEE in any involuntary case under any applicable bankruptcy. insolvency or other similar law now or hereafter in effect, or appointing a receiver. liquidator. assignee, custodian. trustee, sequestrator (or similar official) of LESSEE or for any substantial part of its property. or ordering the winding up or liquidation of its affairs. and such decree or order remains unstayed and in effect for a period of sixty (60) consecutive days. (v) LESSEE commences a voluntary case under any applicable bankruptcy. insolvency or other similar law now or hereafter in effect. or consents to the entry of an order for relief in any involuntary case under any such law. or consents to the appointment of or taking possession by a receiver. liquidator. assignee. trustee, custodian, sequestrator (or similar official) of LESSEE or for any substantial part of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts as they become due or takes any action in furtherance of any of the foregoing. (vi) A receiver or trustee is appointed for all or substantially all of the assets of LESSEE. (b) Upon the occurrence of default by LESSEE, LESSOR shall have the option to pursue anyone or more of the following remedies: (i) LESSOR may continue this Lease in full force and effect, and this Lease will continue in effect as long as LESSOR does not terminate LESSEE'S right to possession, an~ bFEEQR sitaR hau8 *'.t to ~8Heet all f~fttels, fees, 88BtfJ &luil ~th.. gl..AIifJI( ...,hAft "''''1' DUring the period LESSEE is in default, LESSOR can enter the Premises and relet them, or any part thereof, to third parties for LESSEE'S account. LESSEE shall be liable immediately to LESSOR for all costs that LESSOR incurs in reletting the Premises, including, without limitation, brokers' commissions, expenses of remodeling the Premises required by the reletting, and like costs. Reletting can be for a period shorter or longer than the remaining Tenn. l.ESEEE MleII )!Nt) to LESSOR ~, f'ftftth, f~, MMs, an~ 8tft!f eMrS88 till. k.-lfttRd.- SR the iIet. tARt vuslt AlRQuRtti .. dU8, rldy,fd lJr any AM antOUJlt tlult lliiiOR. fIQIF'. frQIR ~r ~AH:~8 No act by LESSOR allowed by this Section 28 shall terminate this Lease unless LESSOR notifies LESSEE in writing that LESSOR elects to terminate this Lease. (il) LESSOR may terminate LESSEE'S right to possession of the Premises at any time. However, no act by LESSOR other than giving written notice of termination to LESSEE shall terminate this Lease. On termination, LESSOR has the right to recover from LESSEE the following: (A) The neortk, at tk, linx r,f the. A"M~. eo! 11" ttI\~ftia ftft!M3. f&3, '&Jb mld r,tb~ ",'l~6~ tRat BaS 888R MAl" at the tim. af taliR1iRali8R klFlsf; , , costs and other charges which would have been earned after e of award exceeds the amount of the loss of such ren er c ges that LESSEE proves could have reasonably ( , costs and other charges which would have been earned for the balance ereo exceeds the amount of the loss of rentals, fees, costs and 0 proves reasonably could have been avoided (which amou . unted at the discount rate of the Federal Reserve Board of San t things would be likely to result , , computed by aIIo rest at the rate of twelve percent per annum. (ill) If LESSEE is ult hereunder, LESSOR shall have the right to have a receiver appointed to collect rent and to conduct LES siness. Neither the filing of a petition for the appointment of a receiver nor the appointment itself shall cons an election by LESSOR to terminate this Lease. (iv) LESSOR, at any time aiter LESSEE . a default, rnay cure the default at LESSEE'S cost. If LESSOR at any time, by reason of LESSEE'S default, amount or does any act that requires the payment of any amount, the amount paid by LESSOR shall be . ediately from LESSEE to LESSOR at the time that the amount is paid. (c) Pursuit of any of the foregoing remedies set forth in subsection (b) of thiS . n 28 shaD not preclude pursuit of any of the other remedies herein provided, or any other remedies currently provided by law, nor shall pursuit of any remedy herein provided constitute a forfeiture or waiv rentals, fees, costs or other charges due to LESSOR hereunder, or of to LESSOR by reason of the violation of any of the terms ,enants herein contained. No notice given to LESSEE by L . Ion 28 shall be deemed a forfeiture or termination hereof unless L pressly so states in writing. (d) t.mSEE-S ~'" &"'IU~' ~& til\. '.\'l&l of Q tk!amt b) LESSOR muler this LeMt 3MB he 1ft aetien INITIAL '. tnp A~""18". iRjva9haa ar ilnaMe 'IfMFlR8R8I, 8ft" Rat the \-;ilt..l1eltlina af fCatals, f<<s, CMt3 er 8th<< ohar._. ar tile SlR1linatiiR if this ~I.e. 29. WAIVER OF DEFAULT. No waiver by the parties hereto of any default or breach of any term, condition, or covenant of this Lease shall be deemed to be a waiver of any subsequent default or breach of the same or any other tenn, condition, or covenant contained herein. The subsequent acceptance by LESSOR of rental or any other payment hereunder shall not be deemed to be a waiver of any preceding breach by LESSEE of any term, condition or covenant of this Lease, other than the failure of LESSEE to pay the particular rental or other payment so accepted, regardless of LESSOR'S knowledge of such preceding breach at the time of acceptance of such rental or other payment. 30. SUBORDINATION. LESSEE accepts this Lease subject to and subordinate to any recorded mortgage, deed of trust, or other lien presently encumbering the Premises. LESSOR hereby is vested with full power and authority to subordinate LESSEE'S interest hereunder to any mortgage, deed of trust, or other lien hereafter placed on the Premises, and LESSEE agrees upon demand to execute such further instruments subordinating this Lease as LESSOR reasonably may request, provided that such further subordination shall be upon the express condition that this Lease shall be recognized by the mortgagee and that the rights of LESSEE shall remain in full force and effect during the Term of this Lease so long as LESSEE shall continue to duly perform all its obligations hereunder. 31. SALE OR TRANSFER OF PREMISES. If LESSOR sells or transfers all or any portion of the Premises, LESSOR, on consummation of the sale or transfer, shall be released from any liability thereafter accruing hereunder. If any security deposit or prepaid rent has been paid by LESSEE, LESSOR can transfer the security deposit or prepaid rent to LESSOR'S successor, and on such transfer LESSOR shall be discharged from any further liability. 32. ESTOPPEL CERTIFICATES. Each party, within ten days after notice from the other party, shall execute and deliver to the other party, in recordable form, an estoppel certificate stating that this Lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications. The certificate also shall state the amount of monthly rent, the dates to which the rent has been paid in advance, and the amount of any security deposit or prepaid rent. Failure to deliver the certificate within such ten day period shall constitute a default hereunder, and shall be conclusive upon the . party failing to deliver the certificate for the benefit of the party requesting the certificate and any successor to the party requesting the certificate that this Lease is in full force and effect and has not been modified, except as may be represented by the party requesting the certificate. 33. LESSOR'S RIGHT OF ENTRY. Lessor, or its authorized agents, shall have the right, upon reasonable notice, to enter the Premises during normal working hours for the following purposes: (a) inspecting the general condition and state of repair of the Premises, (b) making repairs required of LESSOR, and (c) showing the Premises to any prospective purchaser or lessee. If LESSEE has not renewed or extended this Lease prior to the fmal ninety days of the Term, LESSOR, or its authorized agents, shall have the right to erect, on or about the Premises, a customary sign advertising the Premises for lease or for sale. LESSOR shall have right of entry in case of emergencies such as file. 34. SUCCESSORS. The terms, conditions, and covenants contained in this Lease shall apply to, inure to the benefit of, and be binding upon the parties hereto and their respective successors in interest and legal representatives, except as otherwise herein expressly provided. All rights, powers, privileges, and duties of LESSOR under this Lease, including, but not limited to, any notice required or permitted to be delivered by LESSOR to LESSEE hereunder may, at LESSOR'S option, be exercised or performed by LESSOR'S agent or attorney. 35. AUTHORITY TO EXECUTE. Each individual executing this Lease on behalf of LESSEE represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of LESSEE in accordance with a duly adopted resolution of LESSEE'S board of directors, in accordance with LESSEE'S by-laws, or pursuant to LESSEE'S partnership agreement, and that this Lease is binding on LESSEE in accordance with its terms. 36. ENTIRE AGREEMENT. This Lease, together with any exhibits, attachments, or addenda, contains all agreements of the parties with respect to the subject matter hereof. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be amended in writing only, signed by the parties in interest at the time of such amendment. 37. SEVERABILITY. The invalidity, illegality, or unenforceability of any provision of this Lease in no way shall affect the validity, legality, or enforceability of any other provision hereof. 38. JOINT AND SEVERAL OBLIGATIONS. If more than one person or entity is LESSEE, the obligations imposed on each person or entity shall be joint and several. 39. ATTORNEY'S FEES. In the event suit is brought to enforce or interpret any part of this Lease, the prevailing party shall be entitled to recover as an element of its costs of suit, and not as damages, all attorney's fees actually incurred (regardless of any otherwise applicable court schedule for the determination thereof). 40. INTERPRETATION OF LEASE. This Lease shall be construed and interpreted in accordance with the laws of the State of California in force from time to time. 41. NOTICE. Except as otherwise required by law, any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered whether actually received or not when deposited in the United States mail, postage prepaid, addressed to the parties hereto at the respective addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance ~rewith. \ I ITIAL -8- ..- . . ,~, ~ that at .... t_ "'ron'. ....../ u. .........., .... Wll .... tile d* eo re1oc.lte U. ......... &eedW '-:::J:,............ to... ~ c-nw ..........) wSWII tile ~ ClInt.- III IlllI tlI" ... ............ ... tile II.. .. .... 01 the ,., fiiId_ "-11 .. ........111 u. _ _ tIie alii ... ... of .... ext.~ PIwIl.. -'- hIa9cI ... .... etIlIivS.e ... .. wi.... III ~ ClOItIlIIII U. CIllIt of iMtaWlag ~ :r~' lH.a ... .1It~.... .... tr~ fl.xtunl, tq\dpI8It, f\arnI~J ~1hIngI ou. ,.1OnAl ....- ..s..s. to ... Ia U. new Pred_, eo InIt tJw JlUIIWIIt ~ tMNla .. ~ UalJ.r U. ... or blt_ UlIft tIloee .. U. extltlat....... 1Ilal1...... ~ bt I~ IcllCnth1y ~ !WIt lhaU abate Sa r.u ~ u.,...,., 1'... tJit I~ 11 ..Ie to conduct b>>1nea in eJu. U. er1!t..Int PI-.t... _ U. .........., fd) SId1nct COlt. 1nc\a'nd bt I~ U . ftlUlt of U. nJocauca, tncl~ 0DItI incuned Sa chqing Iddreaaei CI\ 8tatJonezy, bul1neu oan1I and ~ eMU tie nUbned to lISSa by U$Sat . . MQft not -to ....s ft_ Ilntnd DDUin CI5OO.00) \4Xlft pl'eS8UtJ.cn to ~ of pUd billa for II1Ilncumd Jndlnctooaa, te) '''- ahall 91- LmsfZ at leut .ixtJ eSO) da)'l pr1<< VdttM ftOtb of ,..,.'. Jnta lID relocate USSD: to the new PnIftl_, ef) lCnthly .w.. ~ ~Je ........ lID IecUcn 4 fa) of W. lease wll be adjusted eo that the II:lnWr IdAbUI nnt ~ .. ,.,. foe ~ of the new Prend... "'111le U. U. ~ -.rbt nta b U. ... Pl'8al1e8, less an ~ equal to 10 percent thenot, \bat Sa aD ..... IM11 U. ICnthly ainJAuI rent for U. new Pnnl.. .. 1.. tMn U. ~ alnbuI nnt specified in Sectia\ 4 (a), hereof, ft) the prevailing"" IWalrate -"aU .. deter- IIdned l1r usat and certified .. -=urate bt . licensed CaUlomla real estate Iabr, select.ed by, but hX affiUated with, ~ . hu .w.taJned off1eea vltMa . .. Idle (10) radius of the Qqpinv Center for at least cne JeK !mediately ~Iftt Lf.SSJtts noUce to relocate the ex1~ Prendlel, CbJ tht I*)W8nta of new ~ JdD- !nul rent .11 CXlo.".e..o. en the earlier of Un fl0) ~~ 11M ~MIlI the physical relocation and 1nsWlat1cn of peananent in the new ~ or the date that USSm tint cpene for bJs1neta in U. .. Preabe., ANI Cl) '''- and ~ ahall J>l'OYFtly execute an anerdtent to thla !MIl nclt~ U. ~ of the Preldsea and Mf change in the ....Wy .w.. nnt payable ~. 43. O1OUATJCIf. 44. IR:>>CDS. tmsIZ warranta that it baa hid no cSea1inc)s with Mt ...1 estAte ~ 01' ~ In Q:)MeCtiClft with U. necptlatlch of th1a lease \Ill... lpICiflcallr ..teet to tM centrAI)' U. w.. 1-.... 45. ODD ltCA21CJ8. "~--.:."-". - -" ~- ~itJu USSI'Z, nor q affiUate or subsidiary of J~, d1rect.1y 01' W1nct1y, . " - .~: -':" ~- - - ..-: '. - .: .~11 ~~~;-iniMge.~' have &ni interut in ~ ~ CXIIpttlng 01' aiaiJar Ron w .-.---. , . ..-- histreu 1nCl~ . ~ w conoesslC1ft !n &ld.her Iton vltMn . t1w (5) Idle rad1qs 0Ubrard fl'Ql the Premises IIeaSW'ed flal the nearest cuulde b::uduy of tM Prendses. Without 1.lJn1ting l.IS!at'S rened1ea, if ~ stcubt violate W. CCNenant, Lf.SSJt may at ita option inc1\de the 9l'O8& salel of such other .tore In the vroa I4la tr~ in the Prenlsea for U. ~ of CXIIpJting U. percentage rent b~, as ~ such sales had actually been IMCSe flal the Pren1ses. If I~ eo .tecta, an the provtalcna of SectiQ'\S 4 (a) tJ\rough Cd) relatJ.ng to the paynent of nnt and to ac.'CXQltineJ ahall be awlieabl. to such other atore. 1tJwe\w, artJ 8UCh .ten exlat!ng AS of the date of W. lease _y ccnt..1lQa \0 be operated, 1nanageC!, ~ And and in the sane JMnner AS on the date of W. !eue. 4'. J<<) <Pr1af '10 IDSE. ". I\tJ1dss!on bi ussm of thi. !ease to ~ does not constitute . l'eSeJ:Vation of or qtion to lease the PrEfld~, anrJ thi. lease beca1eI .ffect.1ve only ~ execution ~ ~ and ~ If a corporation exec.".Jf-.es t..'d: tea!e u J~., USSIZ =.1..11 pratptly furnfsh ~ certiflecS ex>rporate resolutJcna attesth19 to the authority of the officers to execute the lease of aucb CX>lJOraticn.. 4'. FADJ.ItB 'SO OPDt. . d. f'DWaAL S'tA:l>>tmr. ~ ~~~~1:~~~~~~~?b~ / LESSEE: THE CITY OF SAN BERlJl:.RDINO Premises: 2025 Highland Ave~ Ste. G San Bernardino Police Station Office Ho 466 West 4th Street me. San Bernardino, CA 92404 San Bernardino, CA 92401 Attn: Lt. Steve Jarvis Phone: Phone: 714/383-5011 EMERGENCY CONTACT: Name: Phone: LESSOR: Sterling Plaza Partners, a California General Partnersmip c/o Katersky Financial 21800 Oxnard St., Ste. 480 Woodland Hills, CA 91367 818/716-2700 EXECUTED BY LESSEE this LESSEE: day of I~ , 19 ?f I By: EXECUTED BY LESSOR this ? 0 day of '~ ,19 rt LESSOR: Sterling p~a Partners, a California General Partnership By: :i, Q ~~ Haroldq.. K~"'LsfY General Partner Attest: ~~~~~ /Ci ty Clerk Date: ~ t" /Y{Y APPROVED AS TO FORM AND LEGAL CONTENT: 6~ Date: 1/ f-J1 INITIAL II ~ . . Ii . " ft ., Ii . I Cf i,' ~ I II ~f . :, . 1- . n ,I The Premises .~ fE1 II! u .~i ~ _! . c.- elta- '- . . .. .. , ---- -. 're.Dant: THE CITY OF~~~N BERNARDINO I8l: Police Community Service Office The DeadJIea heIW.. aD4 the SbopplDg Center u 8how above are apprax1.Mtic:u. Demised PremUe.: IPProximatul 1.200 IqUIrI feet Frontage: Ipproximatell ? () l1neu feet Ma.x.1.anD Depth: approximate.ll 6 0 linear feet 08/01/88 -1- ~t '. Inl tial. Landlord'.1n1Uah ~ (~ __ · J: f '. ('~. LEGAL DESCRIPTION .'. PARC~L NO.1: A PORTION OF LOT 2, BLOCK 3, WEST HIGHLANDS, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 77~ RECORDS OF SAID COUNTY. AND A PORTION OF HIGHLAND AVENUE, AS SHOWN ON SAID MAP AS VACATED BY ORDER OF THE BOARD SUPERVISORS OF SAN BERNARDINO COUNiY, DATED AUGUST 4, 1891, DESCRIBED AS FOLLOWS: BEuINNING AT THE INTERSECTION OF THE EAST LINE OF THAT CERTAIN PARCEL DESCRIBED AS "PARCEL NO.4" IN THE DEED TO THE CEIHER OF SA'~ BERUARDIIlO, RECORDED APRIL 3, 1962 IN BOOK 5674, PAGE 979, OFFICIAL RECORDS, WITH A LINE PARALLEL WITH AND DISTANT "10.00 FEET NORTHERLY MEASURED AT lIGHT ANGLES. FROM THE NORTH LINE OF SAID LOT 2; THENCE SOUTH O. 09' 25" EAST ALO'~G SAID EAST LINE, 170.00 FEET: THENCE 'NORTH 89. 581 40" WEST PARALLEL WITH SAID NORTH LINE, 202.00 FEET; THENCE NORTH O. 09' 25" WEST PARALLEL WITH SAID EAST LINE, 170.00 FEET .TO SAID FIRST MENTIONED PARALLEL LINE; THENCE SOUTH 890 581 40" EAST ALONG SAID PARALLEL LINE, 202.00 FEET TO.THE.POINT OF BEGINNING. TOGETHER WITH THE UNDERLYING FEE INTEREST WITHIN THAT PORTION OF THE EASEMENT DESCRIBED AS "PARCEL NO.1" IN THE DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED MARCH 8, 1966 IN BOOK 6584, PAGE' 469, OFFICIAL RECORDS, lYING ADJACENT TO iHE ABOVE DESCRIBED PARCEL. PARCEL NO.2: A PORi ION OF LOTS 1 AND 2, BLOCK 3, WEST HIGHLANDS, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGES 77, RECORDS OF SAID COUNTY, AND A PORTION OF HIGHLAND AVENUE, AS SHOWN ON SAID MAP AS VACATED BY ORDER OF THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, DATED AUGUST 4, 1891, DESCRIBED AS FOLLOWS: CO~tENCING AT THE INTERSECTION OF THE EAST LINE OF THAT CERTAIN PARCEL DESCRIBED AS "PARCEL NO.4" IN THE DEED TO THE CENTER OF SAN BERNARDINO, RECORDED APRIL 3, 1963 IN. ~OOK 5674, PAGE 979, OFFICIAL RECORDS, WITH A LINE PARALLEL WITH AHD DISTANT 10.00 FEET NORTHERLY, t1EASURED AT RIGHT ANGLES FROM THE t40RTH LINE OF SAID LOTS 1 AND 2; THENCE SOUTH O. 091 25" EAST ALONG SAID EAST LINE, 170.00 FEEl TO THE TRUE POINT OF BEGINNING; THENCE NORTH 89. 581 40. WEST PARALLEL WITH SAID NORTH LINE, 202.00 FEET; THENCE NORTH O. 09' 25M WEST PARALLEL WITH SAID EAST LINE, 170.00 FEET TO SAID FIRST MENTIONED PARALLEL LINE; THENCE NORTH 89. 58' 40" WEST ALONG SAID PARALLEL LINE, 145.00 FEET: THENCE SOUTH O. 09' 25. EAST PARALLEL WITH SAID EAST LINE, 330.00 FEET; THENCE SOUTH 89- 58' 40. EAST PARALLEL WITH SAID NORTH LINE, 347.00 FEET TO SAID EAST LINE; THENCE NORTH O. 09' 25" WEST ALONG SAID EAST LINE, 160.00 FEET TO THE TRUE POINT OF BEGINNING. TOGETHER'WITH THE UNDERLYING FEE INTEREST WITH THAT PORTION OF THE EASEMENT DESCRIBED AS "PARCEL NO. I" IN THE DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED MARCH 8, 1966 IN BOOK 6584, PAGE 469, OFFICIAL RECORDS LYING ADJACENT TO iHE ABOVE DESCRIBED PARCEL. PARCtL NO.3: A PORT ION 0;: LOT ,.1, I N BLOCK 3 OF WEST HIGHLANDS, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 77, RECORDS OF SAID COUNTY, DESCRIBED AS FOllOWS: BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF THAT CERTAIN PARCEL DESCRIBED IN DEED TO STATE MUTUAL LIFE ASSURANCE COMPANY OF WORCESTER, RECORDED JUNE 10, 1955 IN BOOK 3664, PAGE 544, OFFICIAL RECORDS, WITH A LINE PARALLEL WITH AND DISTANl 8.75 FEET. EASTERLY, MEASURED AT RIGHT ANGLES, FROM THE WEST LINE OF SAID LOT 1 (EAST LINE OF STERLING AVENUE, 82~50 FEET WIDE); THENCE SOUTH O. 08' 40M EASi ALONG SAID PARALLEL LINE, 160.00 FEET; THENCE SOUTH 89. 581 40. EAST PARALLEL WITH SAID SOUTH LINE, 150.00 FEET TO THE SOUTHERLY PROLONGATION OF THE WEST LINE OF THAT CERTAIN PARCEL DESCRIBED IN MEMORANDUM OF LEASE BETWEEN THE CENiER OF SAN BERNARDINO AND THE BANK OF AMERICA, RECORDED DECEMBER 6, 1962 IN BOOK 5814. PAGE 571. OFFICIAL RECORDS; THENCE NORTH 00 081 40" WEST ALONG SAID SOUi~ERLY PROLONGATION AND ALONG SAID WEST LINE, 160.00 FEET TO SAID SOUTH lINE; THENCE NORTH 890 58' 40" WEST ALONG SAID SOUTH LINE 150.00 FEET TO THE POINT OF BEGINNING. TOG~iH~R W!TH THE UNDERLYING FEE INTEREST \JITH!N THAT PORTION OF THE EASEMENT DESCR!3ED AS "PARCEL NO.2". !N DE~O TO THE COUNTY OF SAN BERtJARDItJO. RECORDED ..:.IT;~~ ~AR:.~ 8, 1965 IN BOOK 5584, PAGE ~69, OFFICIAL RECORDS, LYING ADJACENT TO T '....' \, ABOVE DESCR1BED PARCEL. ~ EXHIBIT A J,":~'~) . , - ~ (\ PARCEL NO.4: A PORTION OF LOT I, IN BLOCK 3, OF WEST HIGHLANDS, AS PER PLAT RECORDED IN BOOK 5 OF NAPS, PAGE 77, RECORDS OF SAID COUNTY, AND A PORTION OF HIGHLAND AVENUE, AS SHOWN ON SAID MAP, AS VACATED BY ORDER OF THE BOARD OF SUPERVISORS OF SAN BERNARDINO, COUNTY, DATED AUGUST 4. 1891, DESCRIBED AS FOLLOWS: ' COMMENCI~G AT THE INTERSECTION OF THE EAST LINE OF THAT CERTAIN PARCEL DESCRIBED AS "PARCEL NO. 411 IN DEED TO THE CENTER OF SAN BERNARDINO, RECORDED APRIL 3, 1962 IN BOOK 5674, PAGE 979, OFFICIAL RECORDS, WITH A LINE PARALLEL WITH AND DISTANT 10.00 FEET NORTHERLY, MEASURED AT RIGHT ANGLES, FROM THE NORTH LINE OF SAID LOTS 1 ~.ND 2; THEUCE nORTH 890581 40" ~EST ALONG SAID PARALLEL LINE, 347.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 89. 58' 40. WEST ALONG SAID PARALLEL LINE, 99.23 FEET TO THE NORTHERLY PROLONGATION OF THE 'EAST LINE OF THAT CERTAIN PARCEL DESCRIBED IN MEMORANDUM OF lEASE BETWEEN THE CEtnER OF SAN BERNARDINO AND THE BANK OF AMERICA, RECORDED DECEMBER 6, 1962 IN BOOK 5814, PAGE 571, OFFICIAL RECORDS; THENCE SOUTH 00 081 40. EAST ALONG SAID NORTHERLy PROLONGATION AND SAID EAST LINE, 225.00 FEET TO THE SOUTHEAST CORNER OF SAID LEASE PARCEL; THENCE SOUTH 890 581 40" EAST ALONG THE EASTERLY PROLONGA1ION OF THE SOUTH LINE OF SAID LEASE PARCEL, 99.28 FEET TO A LINE PARALLEL WITH AND DISTANT 347.00 FEET WESTERLY, MEASURED ALONG SAID NORTH LINE OF LOTS 1 AND 2, FROM SAID EAST LINE OF "PARCEL NO.4"; THENCE NORTH O. 09' 25. WEST ALONG SAID PARALLEL LINE, 225.00 FEET TO THE TRUE POINT OF BEGINNING. TOG~jHER \.:ITH THE UUDERL YiNG F~E INTER::ST \olJTHII~ iHAT ~ORi 101: OF' THE EASEMENT DESCR!BED AS "~ARC::L NO.1". 11\ DEED iO THE COUNTY Or SA~ BER~JARDINO, RECORDED MARCH 8, 1966 !~ BOOK 6584, PAG~ 469, O~~!CIA~ RECORDS, ~YING ADJACENT TO TH~ AaO~E DESCRIBED PARCEL. PAR::: L t~ 0 . 5 : A PORi ION OF LOTS 1 AND 2, I~ BLOCK 3 OF ~~ST HIGHLANOS, AS PER PLAT RECORDED IN SOOh 5 OF MAPS. PAG: 77, RECORDS Or SAID COUNiY. DEs:nIBED AS FOLLOWS: COr.;H~t~CII~G AT THE lf~TERSECTIOI~ OF THE EAST Ll~lE Or THAT CERTAIN PARCEL DESCRIBED ':'.S ,"PARCEL I~O. 4" It: DEED iO THE CEI~lER OF SAIJ B:Rt~ARDINO, RECORDED APRIL 3, !962 Ir~ BOOK 5674, PAGE 979, O~FICIAL RECORDS, W!iH A LINE PARALLEL WITH AHD U!SlAJ~T 10.00 F~El IJOR1HERLY. ,.jEASUnED AT RIGHT ANGLES, FROH THE NORTH LINE OF SAID LOTS 1 AND 2; iHEUCE SOUTH 00 09' 25" EAST ALONG SAID EAST LINE, 330.00 FEET TO THE iRUE POINT OF BEGINNING; THENCE CONTINUING SOUlH O. 09' 25. EASl ALONG SAID EAST LINE 138.00 FEET TO AN ANGLE POINT IN THE BOUNDARY OF SAID "PARCEL tJO. 4"; THENCE LEAVItJG SAID BOUNDARY, IJORTH 890 58' 40" WEST PARALLEL ~ITH SAID NORTH LINE OF LOTS 1 AND 2, A DISTANCE OF 716.34 FEEl TO A LINE ?A~AL~EL, ~ITH AND DISTANT 8.75 FEET EASTERLY, MEASURED AT RIGHi ANGLES, FROM THE ~EST LINE OF SAID LOT 1 (EAST LINE OF STERLING AVENUE, 82.50 FEET WIDE); THENCE J';O~iH 00 OS' 40" ~IEST ALONG SAID PARALLEL LINE, 148.00 FEET TO A POINT THAT B~ARS SOUTH 00 08' 40" EAST ALOHG SAID PARALLEL LIWE, 160.00 FEET FROM ITS I~i~RSECTION WITH THE SOUTH LINE OF THAT CERTAIN PARCEL DESCRIBED IN DEED TO STAiE r,1UTUAL LIFE ASSURANCE Cor.tPANY OF WORCESTER, RECORDED JUNE 10, 1955 IN BOOK 3654, PAGE 544, OFFICIAL RECORDS; THENCE SOUTH 890 58' 40. EAST PARALLEL WITH SAID SOUTH .LINE, 150.00 FEET TO THE SOUTHERLY PROLONGATION OF THE WEST LINE OF THAT OERTAIN PARCEL DESCRIBED IN MEMORANDUM OF LEASE BETWEEN THE CENlER OF SAN 9E?~~ARDINO AND THE BANK OF' AN~RiCA, RECORDED DECENBER 6. 1962 HJ BOOK 5814, PAGE 571, OFFICIAL RECORDS; THENCE NORiH 00 08' 40" WEST ALONG SAID SOUTHERLY ?~~~ONGATION, 95.00 FEET iO THE SOUTHWEST CORNER OF SAID LEASE PARCEL; THENCE SC~'j H 890 581 40" EAST A~Ot~G TH~ SOUTH L HIE 0:: SAID LEASE PARCEL AND ITS EASTERLY PROLONGATION, 219.28 FEET TO A LINE PARALLEL WITH THE DISTANT 347.00 FEEl WESTERLY, MEASURED ALONG SAID NORTH LINE O~ LOTS 1 AnD 2, FROM SAID EAST L:~:E OF "PARCEL NO.4," iHENCE SOUTH 00 09' 25" EAST ALONG SAID PARALLEL LINE, 105.00 FEET iO A POHJT THAi BEARS SOUTH 00 09' 25" EAST ALOt~G SAID PARALLEL LINE. 330.00 FEET FROM SAID PARALLEL LINE THAT IS 10.00 FEET NORTHERLY FROM SAID NO~TH LINE; THENCE SOUTH 890 58' 40" EAST PARALLEL ~ITH SAID NORTH LINE, 347.00 FEE T TOT HE T RUE PO IrJT OF BEG INN I I~ G . , iO.~ET~~R W!iH iHE UNDERLYING rEE ItnER~ST r:!THIl~ THAi ?ORTION Or THE :J~s:~:aED AS "?ARCEL tJO. 2", :N D~ED 'TO Tr.E COLJtHY 0;: SA'~ BERNARDINO, ~~~:H 8, 1966 IN SOOK 5584. ~~~~ 469, O~;:!CIAL R~CORDSJ LYING ADJACENT ABOt: DESCRIBED ?~RCEL. EASEME~lT RECORDED ~~ TO T ~...,.~, '\ ~i 1-.',- _t: -; . , ~'I PARCEL'NO. 6: THE NORTH 518 FEET OF THE EAST 114 FEET OF LOT 2, BLOCK 3, ACCORDING TO MAP OF WEST HIGHLAND, -IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 77, RECORDS OF SAID COUNTY, SAID 518 FEET BEING MEASURED FROM THE CENTER LINE OF HIGHLAND AVENUE, ADJOINING SAID PROPERTY ON THE NORTH. NOTE: HIGHLAND AVENUE ADJOINING THE PROPERTY DESCRIBED HEREIN ON THE NORTH IS SHOWN ON THE PLAT OF WEST HIGHLANDS, AS PER PLAT RECORDED IN BOOK 5 OF MAPS, PAGE 77, RECORDS OF SAID COUNTY, 120 FEET WIDE; ON AUGUST 4, 1891 THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, CALIFORNIA, ORDERED THAT HIGHLAND AVENUE BE DECLARED A PUBLIC HIGHWAY, 82-1/2 FEET WIDE. PARCEL NO.7: THE NORTH 201.00 FEET, AS MEASURED ALONG WESTERLY LINE OF THE fOLLOWING DESCRIBED PARCEL: LOTS 1 AND 2, BLOCK 3, WEST HIGHLANDS, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 5 PAGE 77 OF ~~PS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY AND THAT PORTION OF ~ALNUT STREET 41.25 FEET WIDE ADJOINING SAID LAND ON THE SOUTH AS VACATED BY ORDER OF THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, A CERTIFIED COpy OF WHICH WAS RECORDED SEPTEMBER 8, 1933 IN SOOK 911 PAGE 2 OFFICIAL RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THE NORTH 458 FEET OF SAID LOTS 1 AND 2 AND THE WEST 8.75 FEET THEREOF. , ,. , ADDENDUM To Lease dated October 17. 1989 between Sterlinq Plaza Partners a California General Partnership, as ("LESSOR"), and The City of San Bernardino , as ("LESSEE"). THIS ADDENDUM is made this 17th day of October and between Sterlinq Plaza Partners California General Partnership, as Lessor and Bernardino , as Lessee. , 19~, by , a The city of San WHEREAS, Lessor and Lessee are the parties to the above described lease for the premises known as 2025 Highland Ave.. suite G. San Bernardino. CA 92402; and WHEREAS, the parties desire to amend said Lease. NOW, THEREFORE, in consideration of the mutual promises and obligartions containeed herein, the adequacy and sufficiency of which is hereby acknowledged, Lessor and Lessee agree as follows: MINIMUM RENT Lessee shall pay to Lessor the amount of $1.00 per year. DELIVERY OF PREMISES Lessor agrees to deliver the premises in as is condition and to include the following improvements: 1. Carpet 2. Paint 3. Conference Room and office SIGN Lessor agrees to install at its sole expense a standard business sign, meeting Lessor's sign criteria and city codes, above the storefront of the Premises within sixty (60) days of the Lease Commencement Date. WARRANT TO OPEN Lessee's failure to open for business to the public within sixty (60) days following the Lease Commencement Date shall constitute a default of the Lease and Lessor shall be entitled to pursue its remedies pursuant to the Lease. GOVERNMENTAL APPROVALS Lessor shall be responsible for obtaining all necessary construction, sign and occupancy permits. If Lessee diligently pursues such permits and is unable to obtain the same then Lessor shall have the option but not the obligation to obtain such permits on behalf of Lessee, at the Lessee's expense. If such permits are not obtained by ei t.her party, the Lease shall remain in full effect, but may be terminated at Lessors sole discretion upon construction. Lessor makes no warranties or statement, as to the suitable of the premises for Lessee's business or Lessee's ability to obtain necessary permits. EXCEPT AS HEREIN SPECIFICALLY EMENDED, all provisions of said Lease are hereby confirmed and ratified. IN WITNESS WHEREOF, the parties haereto have executed this Addendum in multiple conterparts on the date first above written. + " ~ The City of San Bernardino Page Two Addendum rnardino LESSOR: sterling Plaza Partners a California General Partnership Date: jJt./~ J: /9'i'f Attest:~~!.1~~ . City Clerk Date: /~/~~7 I ::~~~~D /' ity A orney Date: II- ~-lt LEGAL CONTENT By: Date: ~ ~\~ Harold A. Katersky General Partner ?//? ~-riff