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HomeMy WebLinkAbout02-Mayor's Office CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Charles A. Bradley, Coordinator Subject:. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SPACE FOR THE CITY OF SAN BERNARDINO, CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON 5TH MULTICULTURAL CENTER. Dept: Cultural & International Affairs Office of the Mayor Date: May 21, 2002 C /:-:,' ,,- ,,:, : L MICC Meeting Date: June 3, 2002 Synopsis of Previous Council Action: None Recommended Motion: 1) Adopt Resolution CL4~fl~ Contact person: Charles A Bradley Phone: 884-3415 Supporting data attached: Staff Report, Resolution & Agreement Ward: FUNDING REQUIREMENTS: Amount: I=V "1m,. $7,""" r..nt + $1,750 electricity Amount: FY 02/03- $12,000 rent + $3,000 electricity Source: 001-091-5185 Finance: Council Notes: PIUJJloWLj (" Info;;, #eN ~'Io>-dCck't-I% Agenda Item 1\ -#2- 6PYo2- Staff Report Subject: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of a lease agreement between the City and TVG Enterprises, LLC for rental of space for the City of San Bernardino, Cultural & International Affairs Office in Arts on 5th Multicultural Center. Background: In 1999, Senator Nell Soto requested $300,000 from the State of California for the City of San Bernardino to establish a Multicultural Center in the downtown area. That request was approved by the Legislature and Governor, and was included in the state's budget. Since that time the Mayor's Office has been working to establish this Multicultural Center, with the goal of fostering the development of community arts groups and celebrating the City's ethnic and cultural diversity. The Center has been established as "Arts on 5th" and includes space for meetin!s, classrooms and exhibit space for rotating art exhibits. The Center is located at 468 West 5 Street, San Bernardino, between "0" and "E" Streets. The Center consists of a coalition of arts groups including Cultural and International Affairs, Office of the Mayor; Arts Council for San Bernardino County; Coyote Conservatories from California State University San Bernardino, Sinfonia Mexicana and Inland Counties Hispanic Roundtable. Other partners are expected and include African-American Chamber of Commerce. Each member of the coalition will sign an individual lease with the owner of the building, Mr. Gregory Villanueva. Mr. Villanueva is charging all the coalition members $1.00 per square foot of space occupied, plus prorated share of the electricity. All tenants leasing less than 500 sq. ft. pay $25 per month, tenants leasing 500-999 sq.ft pay $50 per month, tenants leasing over 1,000 sq.ft. pay a prorated share of the remaining cost of electricity. Average cost is $250 per month for 1,000 sq.ft. The Cultural and International Affairs, Office of the Mayor moved into the space in December 2001. Much of the renovation has been completed and the grand opening of the building was held on May 4-5, 2002. The lease for the space occupied by the Cultural and International Affairs, Office of the Mayor was to be funded through a state appropriation which has been frozen by the Governor. Through the efforts of the Mayor's Office, the City was notified by letter on May 8, 2002, of a new grant in the amount of $88,650, from the Natural resources Infrastructure Fund. A signed lease is a requirement to encumber this funding. This grant partially replaces the initial grant and will be used to reimburse the building owner for tenant improvements, including HV AC, electrical work and carpeting. The grant prohibits use of the funds for operational costs such as lease payments. The lease is for five years, commencing on December 1, 2001 and terminating on November 30, 2006. Annual costs for FY 2002/2002 are $7,000 for rent, and ! 1,750 for electricity. For FY 2002/2003, costs will be $12,000 for rent, and $3,000 for electricity. A copy of the lease provided by Mr. Gregory Villanueva is attached. Financial Impact: It is proposed that the lease and electricity costs for the City's Arts on 5th operations will be funded from the General Govemment/Fine Arts Budget in the General Fund (001-091-5185). These funds are allocated annually to various fine arts groups by the Mayor and Council at the recommendation of the Fine Arts Commission. For FY 01/02, $133,500 was budgeted in this account, and year to date approximately $76,300 has been expended. The balance of $57,200 includes the anticipated $50,000 to be spent on the "Art in Public Places" program that is under development, leaving an available balance of $7,200 that can be used to offset the costs of Arts on 5th for this current year, with the remaining cost of approximately $1,500 to be paid from the Mayor's Office budget. For FY 02/03, $133,500 is again included in the Preliminary Budget in this account. If the action is approved, the $15,000 cost for Arts on 5th will be funded from this account, leaving $118,500 for allocation by the Fine Arts Commission. Recommendation: Adopt Resolution. ,_ .,. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 " 28 ~(Q)[?\? , RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SPACE FOR THE CITY OF SAN BERNARDINO, CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON STH MULTICULTURAL CENTER. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor of the City of San Bernardino or her designee is hereby authorized and directed to execute on behalf of said City a Lease Agreement with TVG Enterprises, LLC for rental of space for the City of San Bernardino, Cultural & International Affairs Office, Arts on 5th Multicultural Center, 468 West 5th Street in the City of San Bernardino, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set forth at length. SECTION 2. The authorization to execute the above referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this resolution. III III III III III III III f III III ., 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND TVG ENTERPRISES, LLC FOR RENTAL OF SPACE FOR THE CITY OF SAN BERNARDINO, CULTURAL & INTERNATIONAL AFFAIRS OFFICE, ARTS ON 5TH MULTICULTURAL CENTER. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2002, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA LIEN MCGINNIS DERRY SUAREZ ANDERSON MCCAMMACK Kachel u. Clark, CIty Clerk The foregoing resolution is hereby approved this day of 2002. Judith Valles, Mayor City of San Bernardino Approved as to Form and legal content: JAMES F. PENMAN, City Attorney ! By: 1 ..~ .. . . _.- -- , ! S ! ~ ! i ! ~ I B ! S ! ! ~ EB ~ ~ II II i ! I I ~ . 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L " , I " JANITORIAL SCHEDULE JaailllriallCrYitco .wrk'i.... 10 IMinIain the UIlcrioJr ill . .Icon wcll-allimaiDod CIlIlItiIian, dill ia, 10 cIimiIlIIc all visible dust, dirt, liller, srime,1lIlins,........ rmaa 1IIIIk.. .....10 thepeotcsl prICIicoI cIepee possible, by perf.......... ...... the fol1owin8: (I ) Empty ODd claD aU trub Clll\taiaas ODd ub II.YO; disposo: of oil trub ODd rubbish. (WcekJy) , . (2.) a....... -"'''ia ia a seiIaIy &lid odor-Jiee coadilioa a111locn, claD aU mimn,.. claD aU 'oilce bowls &lid urIIIaII. (Ddy) (3.) JlunlilllIIId ......... aU toilet """" ouppIies (indudina soap, towels, _ -.. IGiId IiIIue, ODd sanilaly nopkino. (DIiIJ) (4.) s....,..... IIIOp aU bard surfiIoc Ooon; &ad carpel sweep aU C&IpotecI-. b.,JI".. .....)'1 ODd balls. ID oIIicea 1ridl banI__1Iocln ill the ~ IolJby ana, they sbaU be ...........""., (WeetIy) (5.) ~ IiDpr mas aud _...... hm aU ..... cIoon &lid """"P'i"'l;" wiDdow. (WeetIy) (6.) Sp-Hl-11y cIIIlcI<, aud if acIiGD ia needed, dIen: .. IluII die topa ofaU fiIIllibae, -. cabineIs, ODd wiDdow siIII, (wbicIl... &. of iaIaf'aiD, objeCta). (WeetIy) b. Raaoft IpOCI ~ spill. hm \be carpels. Ilocn, &lid stairwlI)'I. (Wertly) IU.-Ied, but DOl leu &eq~ Ibm: WukIy Vacullll\ aU ~ WI!i.t/y: (I.) Damp IIIOp aU bani surfiIoc 1Joors. (2.) Duot aU wiDdowbliadl. (3.) TRIII_;nlo.oo IlccI Counlains..... siIlkslO eliminale staiDs ODd miIleral deposits. (4.) Spot "'- the wall.. . (5 ) Sweep poatiDa __ &I1d sidewalks. S....i_11y. Wub all wiIIdows. AmtwIIy: (I.) SIeam...... 00IpcIs 10 raJlOve .11 stoins ODd spots. (2.) C..... cIIapes. In the...... of filii.... by Ihc Leosor Iu fomilih lilY of the abo.. .....io:cs or IIIppIiea ia a ..;.r....'lI'y _, Ihc CSU lua~ fiImiaII the ...... at ils own c:oot; ODd, ill additiotl 10 my other remedy \be CSU may bave, may deduo:t the UIlOUIlllhaeor, incllJdiDa CStr. ..moo oosta. fiom the renllhat may then be. or lbereafter beCIIIIIc, dIJe..... payable. ! ... ofCllllomll' The R..u~ A llEl'MT.NT OF PARICS AND 1l!C1lfATJON. P.O. ... .... . s.a.~, CA MIl 1001 Gray D.wa, Oo~ autOr Rust., ANi... Di_ May 8, 2002 Charles Bradley Director, Cultural Affairs City of San Bernardino, Office of Mayor 300 N. "0- Street, Sixth Floor San Bemardino, CA 92418 Re: Project Name: MUL TICUL TURAL CENTER Project Number: NR.36-001 Contract Number: C8303012 Enclosed is a contract for the above referenced project and a procedural guide, with application and program information to assist you. Please sign and retlJrn it as soon as possible. We will send you a copy of the fully executed contract after It is signed by the State. Although the contract wHI encumber the funds, we can't provide payment until you have submitted a complete application. Our records show that you need the following paperwork to complete your application: a signed application: a copy of the lease; cost estimate; and, site plan. PresenUy, there is a cash flow problem with the account thai funds this conlnfct. The Administration is working to resolve that problem and anticipates a resolution soon. Until then, we will not be able to process payments. We will notify you when there is cash in the account. If you have Queations, please contact me at (916) 651-7600, or by e-mail at rrend@parks.ca.gov. Sincerely, ;iAJJ~~ Richard Rendon Project Officer ! Enclosure ?n. ~I .,.,..................,.....f" __.__ _~__I'"TI~^ _<l~-._- ~ofPlrb_~ 0I'I1II ColIlncl ......,., ~ Infraeructu..FlIncI GRANTEE CilJaf~_~.._.. .... ......_..__.____.........._ "........--.-..-." .----- PR.OJECTllTLI!_.~~~~_C!Nn!" .._ ....._.._ PROJECTN'lJMBER.~~' FlIlIdu~1ab1e Il'om Jl/IyOl,2OO, \MI J.....30. aooe ..,................. at....-..L. ...........-n.......... ptajKt....... it'" ,................... s.e ...~.........IIo~at____......_____..ilIolI...'"""... ...tlIIIII....--*......... PROJECT DESCIlIPTION: MlJl.TlCUL TURAL CENTER T.....SlllIoar.ntootl6_ III,IllO.OO CIy ~ s. a.m..~ --.---..------.[1.. .,..-- BL__.._._............_ ..__.....__..._.._ ~ oJ......... r . TitIe..Ei!:o.~Il1l" Roc. .. Com. $.. 11lo 00IM0l! Pro,..""", .......... ... mad. . ptIl of an4 i.__ iato.... eoalnel. Dale By STAlE OF CALIFORNIA DEPARTMENT Of PA\U(S AND Rf('ID nON Title______. .____.._ DIIe... a~ Date. ----..---- .-.-.-, ".'-"-. CERTIFICATION or nJNDI/IlG I CIlN'I'JU(:T NI;MBEIl I' l'IlOJECT NO i ! C8:!03012 NR._,! ...,....--. __H' ........--......-... ------i I APP~OPIllATION ! , t ..h....L...._._._ iArii DEcawiNo IlN<.'l.1M8uNcii -.)-----.-.---.. C~TAasViNOOri NO:'--"- .- i S I 0GCl000410400 ,..............-..-... . -.....--+------... .... .-.-.....----.....--..-..-.... IUIlENCUM8EJl2D BALANCE i lJNE !\'EM ALLO'I'MENT I' CHAPl'Ell [ S j ~'0:!.Q383(,~__. I 1011 1~~~.~:._!a.No. _. I ~, ~~BlI~O_L PC~ il~-;ty_I\lI--...."'"""'lloalhodpladftl........_fIlrlllit_. ; AMOVNT 01' ISllMA'IE : "...00 lAW: INCREASOOBNcUMBRANCE 's I ......1.._.... i__ Fu"" J'UNI) -I STATlnE .... -----j-FiSc:AiYEAR i , ! . 01 ! 2001102 I PRMCT 1'..uU PlWIE. I , I '..----1 i -~._.~ i I I ---, ""-------1 $IGNArulE ex- ACCOu>mNG OFFICER lOATE. ! , ". ".' ." _... "-.__'.' _..._.... _..h .... , , .-- .:-n ~C'\"".J .....01 CaIIWnIa - ,.... .... ..... Aeency DEPART_NT OF PAMI AND "'CMA'TION APflLICATION !'OR LOCAL A8tIS1'ANCI! GRANT PROJECT NAM!: GlIWlT AMOUNT . E$T1M&.Tf,D TOTAL PIlOJECT COST CS.. _1..0 Olhe< fundo) S CO<.fifY }IIEARI!!ST CITY PROJECT AOllR!88 GRANTEE ~ IIld _II. 'rOludInG Zip COde) ~ESr CROSS STREET SENATE DISTRlCl NO, cn-'. lIap_nlalM __In_ 1 ASSEMIll. V DlSTR~CT NO Name C\Wle) rille """"" - ..... day-day '" I~ ~ _UIlI'" poq.ct (If d",-*" '"'"' .._ ~.'W1' Neme(Iype) IlIteIdoocrlplllJnrrrpftljocl TIlIo PIloIle Por!lev ptlIjeClllI L.ond T...... - PoolocIiI: -: ,<< Aclqul8htan 0l"OI1 C~J PJ~ wfI ~ ..... - - In ...........11\1 o..nt ApplI..nt ---_a _r ..... __~In"'lImploby_l~ ~1n-__lImplol"inl_ Al:!WI__I",1 I I corlty _the _lion __In lIlII pftljocI.OIlI- 10m, Indualno ~ _._...10__ ! Slgntd o..me.', AulIIOllIod R-....... ....... .. __ in ~utb'l 00. 8 RULES AND REGULATIONS FOR STANDARD OFFICE LEASE .. Oa'-d: By"""- GENERAL RULES 1. "--- lIhaII not suffer or pemVt Ihe oOitruction of any Common Ami., lncIudng ~ waIIcwaya and stalrwaya. 2. Leuor,....,....... rlf.rt to refuM IICCeII to any pinOnS lIsIor WI good fallh judgll to tlI a hMllO" uttty and ~ of.. PraiICt .nditl~. - 3. l.nHe IhaII not make or permit any noiIe 01 odon that 8MO'i or IntertIre with otMr ....... or perIQfW twvIng buINa within 1M Pro;ecl 4. ....... Ihd not keep ani'nIlI or birds wIIhIn the Project, and IhI1I not tlring bicycIeI. motoIC)IdII or ClIW whlel.. Into.,... noc ~ as aulhr:lriDd tIx 181M. 5. l8nH shall not maka, IUIIIr Of pennit litter except in appropt\Ite receptactll to, that pl6pOIAI. 6. L8nH IhaII not alter any lock or inItaII new or addiIionIl b:kI or boItI. 7. Lessee nil bII ~ far the inappropl1ate UN of any 101.. roomI, ptumbing or other utIIltin. No bre6gn IUbItances 01 any Idnd ant to be inserted therein. 8. LnMe shIlll not defac. the waIII. par1itionl 01 other 1ur1acM of 1he ~ or Project. 9. Laue shall not suffer or ptnnII anything In or around tal PNmiHI or Bulding that Cl.UMS exceaNe vtIl'ation or ftoor.....O In MY part of the Project. 10. Furniture, signlflcant highland equiprNnt shall be mewed Into or out 01 the bulldhg only wIIh the L....n kncMiedQle and 00I'lNnt. and auIlfect to such reuonat>>e Umltationl, techniques and timing, as may bit dNignated by Leuor. leesH JhaII be ..............101' any dM\age to.. 0fIIce BuIcIng PI'CIjKt .riIing from any such activity. , 1. leQee IhaII not IIfIIpIoy any senric8 or con1ractor tor services 01 vwm: to be periormed In the BuIdIng, exoIPt.. ~ by LeaaoI. 12. LelIOl' rnerves the right 10 dose and lOCk It1e BuIkIIng on s.twdIyI, &n:Iaya and Building HoIidaya. and on 0I'ler daya between hi hours of _ P.M. and _ A.M. of the foIIowtng day. If L.nsee ....... PremIMI during such periodI, ~ IhaII be ftIIPCll'\SIM tor MCl.nIy Ioddng any dootI it may ...... opened for entry. . 13. Leuft wlll8tUm all keyS allh. termination of its tenancy and Shall be raponsibIe lor the coat of replacing any kays IhIt are lost. 14. No window a:J\IMingI, shades or awnings shall be inItIIlled or UMd by Les.... 15. No 1.HHe. ~ or i!Mtee shaH go upon the tOOfofthe Buiding. 16. ....... IhaII not IL1fIer or permit Ift'ICIImg or carrying of lightMf cigarI or ClglretIH In .... reuonabIy ~ by Leuof or by applicable governmental agend.. u non-snddng areas. 17. I.essH shall not use any method of heating or air conditioning other than u pn:Mded by Lessor. 18. LesIMIhaH not inItaH. maintain or opeme any vendi1g rnactWleI upon the PremIIes without: LIIIOf'I wrIbn conNnt. 19. The Premileslhall not be used br lodging or manutacturfng. cooking or food preparation. 20. LeI... shall comply wiIh 1111 safltly. fire potection and IYaCUIotion NgUIatIonI HtatlIiIhed by leMor or any appHcabIe govemmehlal agency. 21. Lessor reMN8I 1M ~ 10 waive any one of these ruI.. or NglMtIona. and/or u 10 any particular ....... and any IUCh waP.w INII not constitute. wailler of any oItMM' rule 01 regulation or any subMquent application ttweof to IUCh LMHe. 22. lHsH lII8U11es all risks from IhefI: or ....ndalism and agrMIla keep Ita PrerniMllocktd u may be required. 23. LeslOl' reHI'VH the right 10 make suctl other reasonable 1\11.. and regulations u It may from time to tIrnt deem necessary for the appropriate operation and safety of 1M Pro;ect ancIlts occupants. Lessee agrees 110 abide by.... and such rul.. and regulations. PARKING RULES 1. Partdng .,... snail be UHd only for parking by ....hicIn no tonger than fWI ... puseno-r .utomobIIeI herein caled "PermItIed SIze v.tlicl...~ Vehicla other than PInnitttd Size VenicIes are herein reMrred 10 .. -oversized VehIcI...~ 2. Les... shall not permit or allow any whicles1t1:lt belong to or ani conlnlllecl by LMIH Of lHIM's nplO>,tMl. suppliers. shippers. customefI. or irWitHs to be Ioadlld. unloMSld, or parbd in areas OCher than 110M delignated by LeIIor br such activItiH. 3. ParU1g a1Ickers or ldenllfication devices shall be the proper1y of Leaar and be retumecI to Leaor by the hotdet' IheteoIl.4lCJI'l termination of the holder's parImg priYIIegea. lMHe wi! pay such repllCINnt charge as is reuonabIy 8ltabliIhed by Le;uor tor 1he loR of such devices. 4. L..Hsor reser.es 1he right to refuse the ",Ie of monthly identification avtcn to any person or enaty that willfully refuses to c:ompIy wtth the applicable n"s. regulations. laws and/or~. 5. Lessor ......-va hi right 110 I'tlIc:laIte all or a part of parking spaces from IIoor ID floor. within one floor. and/or 10 reuonably adjacent o4IsiIe location(S). and 10 reuonatIIy allocate them bItween eompect and standard size spaces. as b'Ig nile same ~ wiIh applicable..... ordinances and regulations. 6. Users of the parking area will otley all poI1ed signs and park only In 1he .,... dlllignate lor vehicle parking. 7. Un'" oIherwile instruc:tMI. every peqon using the Plir!dng .,.. .. reqWed to park and iock hill own vehicle. lnIOI' will not be respondlle for any damage to vehicles. injury to petIOnI or loss of property. aft or wtlich riIkI are Illumed by the party usr.g the parktlg area. 8. Validation. If Mtab&iahed, wtlI be permissible only by stICh mMhod or ma1hodI .. Leuor aneIIor IIII1ctn1N may ntabllstl at rates generally apptlcabietovilRDrpl.rleln;. 9. The mai'1tenance. wutWtg. waxing or c:lMnlng of......... In the parking structure or Common Areas II pI'OtIit)bd. 10. Ltaet IhaII be reaponstbIe for seetng that all of its IqlkJyHI, agenI8 and InvtteeI o:mpIy with the appIicatlII pl.rkIng ruIeI, regulations, IIws """-,,. .... 11. lIItOIl'8Nf'V8I1M1 right to modify IheM rules anctIor adopt auctl other..eonatlI8 and non-diIcrirnlna tuIft and reguIatIonIult may deem necessary for ... proper operation or the parIdng .... 12. Such perking UN as II herein pnMded II InWncIed merely" a tIcenH only and no ballmenl: IIInMnded or IhaII be CfeatecI MNby. initials . 1~mertcan tncIUstrlal ....11!st8te Aaocfdon PAGE1of1 ...... FORM QffQ-1411 . - STANDARD MULTI.TENANT OFFICE LEASE. GROSS AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 1. a..ic ProvI8lon. ("hale Provision."). 1.1 Plirtiea: This Lease (..L.u....), dated for reference purposes only Ma v 31. 2002 and between T"~ F.n+-~rpr; cu:u::: T T,r ._.iamadeby ("Lei"'''') and .....;+T....4= c"'" D.........~-Qil'Q. C"llt'lral [" T~tQrR:,lti~R.41 AffAirv ("LoIIH"), (_ the "Portlol", or indlvldully I "Porty"). 1.2 (I) """"1_: TllIt certoin portion of tho Project (os defined below), _ os SuIte N_(I) 1 n, . _ nOOr(S), consisting of approximately 1 n n n rentabkt square feet and approximately UMabIe aquIIIW feet ("Pre "11M..."). The Premise. are located at: 4fiR Wp!::.+ Kit:h ~Trp4il"t- I in the City of C::at"l Qa....,.,......~;'lCPountyof c,.... 'D""'....P'\""...~j....Q ,Stat.of r"".1;............<l.. .w.ithzipcode~~Q' . In addition to Lnsee'. righta to UN and occupy the PremiMa .. henttnafter 8P8dfIed. lHHe ehaJI haw notHDCCI ghtI to the Common _ (II defined in Parogroph 2.7 boIow) II horoinoftof opocifiod, but l11li1 not hove ony righto kl tho roof, tho oxtorlo, wallo. the .... _ till dnlppod collingl, or the utility racawayo of"e building containing the p,.".. ("lIuIIellng") or kl ony _, buIIdlngl in the Project. The Premises, the Bulking, the Convnon Areas. the land upon which they ant located. along with .. other buUdlngs and improvements thereon. are herein coflectlvely referred to as the "project... The Project conaiIt8 of approximately rentable .qu.re feat. (See also P.regroph 21 1.2 (b) Parking: D.A...-- unreserved and.....n.a- reserved vehlcl. Plirking spaces at a monthly cost of $ _ per un.....rwd space and S _ per ~ space. (See Paragraph 2.6) 1.3 Term: f11le .51 yearsand~months(..OrIglnaITerm..)commenctng 11/01/01 ("Cornmencemllllt Debt..) and ending 1 n I '1 1 In&. ,ExpIr8tion Da."). (5.. oJeo P.regrsph 3) 1.4 Early Pas....lon: ("Early _on DnI"). (See also Paragraphs 3.2 and 3.31 1.5 Bue Rant: S , n n n n n per month ,B..e Rent"), payable on the 1 c + day of each month commencing ~~ 01 ,(See.1so P.regroph 4) o "this box is ,ere are provislona In this Leue tor the llaSe Rent to be adjusted. 1.6 LoIIH.. S..... of OporoIIng Illponse Increua: parcont ( _ "') ("I.oIIH" S....."). LesIoO'I Shore has been calculated by dividing the approximate rentable aquare footage of the Premises by the total appn:llldmate aquare footage of the rentable space contained In the Project and shall not be subject to revision except In connection with an actual chenge In the size of the Premises or a change In the space avdabIe for I.... in the Project. 1.7 _ Rent ond Olhar _hid Upon _on: (e) l1li.. Rent: S tor the period (b) Securl1y Dopollt: $ ("SecurIIy Dopoolt"). (Sae.1so Paragraph 5) (c) Porldng: $ for the period (d)~$ lor (.) ToIol Due Upon Ex"""'lon oflhll Leoos: $ 1.8 AgreedU..: Cultural exhibit soace and office!'; 1.9 Base Vnr. Inaurtng Party, The Base Year is Paragraphs 4.2 end 8) 1.10 Real Ellate a..,,"ra: (Sae oJeo Poragraph 15) (a) Repruentation: The following real estale brokers (the ..Brok......) and br0k8rage relationships exist in thls transaction (check applicable boxes): o o o . (Sae oJeo P.regraph 6) . Laasor is till "Inluring Porly". (Sae olso replhOflls Lessor oxcIUIiYIly ("LosIor'I arobr"); represents Luue --......1ttIy ("L.eaM'a Brolcer"); or IOpIhOflIs both Lessor and Leoooo ("DulII Agency"). (b) Payment to Broke...: Upon execution and delivery of thIa Lease by both Parties, Lessor shall pay 10 the Brokers the brokerage fee agreed to in a separate written agreement (Dr if there is no such agreement, the sum of _ Dr _ "" of the total Base Renl for the brokel1lge s8Nic:e. rendered by the Brokers). 1.11 O...,.ntor. The obligations of the Lessee under this Lease shall be guaranteed by ("Guaranklr'). (See also Poregreph 37) 1.12 Bu.tnes. Hou,. for the Building: _ a.m. 10 _ p.m., Monday through Friday (except: Bulktlng Holidays) and_ a.m. to _ p.m. on 5a1urdoy (excapt auilding HOlidays). "aulldlng HoIldoys" l11li1 moan the datal of obaarvatlon of New_. Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and . 1.13 Leuor Supplied SWVICH. Notwithstanding the provisions of Paragraph 11.1 , Lessor Is NOT obI6gatecI to provide the folowing: o Janitorial servk:es o ElocIrlclty o Other (specify): 1.14 At&echmentll. Attached hereto are Ihe following, all of which constitute a part of this Leue: o an Addendum conatattng of Paragraph. _ through _ ; o a plot plan dopIcIing till Premises; o a current... of the RuIn and Regulations; o a Work Letter; o a janitorial schedule; o other (specify): 2. Preml.... 2.1 Letting. Lessor hereby leases 10 Lessee, end Lessee hereby leases from teNOr, the PremlHll, for the lerm, althe rental, and upon all of the lerma, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of siZe set forth in this lease, or that may have been used in calculating Rent, II an approximltion which the Parties agree is reasonable and any payments based thereon are notsubjecl to revision whether or nolthe actual size is more or I.... Nota: leuH II .eM.. to verify the actvaIl aiD prior to executing thil.L.a.., 2.2 Condition. Lessor shall deliver the Premises to LeSSH in a clean condition on the Commellcemint Date or the Early Possession Date, whichever firll occurs ("Stllrt Date"), and warrantllthal the exiItIng electrical, pluml:Nng, fire sprinkler, lighting, healing, ventilating and air conditioning systems ("HYAC"). and all other Items whk:h the l.8aaor II obligated to COI'IItrUCt pUrlUant to the Work Lel1er .ttached herekl. W any, other than thooo oonslrUClad by La..... l11li1 be In good ~ oondIIon on _ dole, 2.3 Compliance. laMar warrants the!: the improvements camprt.lng the Pnamiaa end'the Common ANa comply with the . building codes thai were in etIect at the time that each such Improvement, or portion thereof, was constructed, and aIao wtth all apptlcable Initials G t....AmericM InClUetrIeI ...., Eat8Ie Anocl.don PAGEl ....... FORM OPG-1.w I I I I I i laws. covenants or restrictions of record, regulations, and ordinances ("Appl&c.bte Aequlramenuj In effect on the Start Date. SakI warranty does not apply to the use to which Lessee will put the Preml.... mocfrflcationl which may be rwquired by the Ameficanl with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 50), or to any Alterations or Utility InstaIIatIonI (u defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Le....I. reapon"" for determining whetMr or not the zoning and - Applicable R__ .re 0Jlll'0Pri0I0 lor LooHe'o__ ......d ._~ _ poOl ..... of "'" Proml_ m~ no longer be allawed. If the Premia. do not comply with said warranty, L.eIaor JhaII. except as otherwtaa pl'OYided, promptfy aft.r receipt of written notice from Lessee setting forth with speclftctty the nature and exMlnt of such non-campIance, rectify the same. If the Applicable Requirements are h...fter changed 10 as to require during the term 0111111 Laase the conttrucIion of an addition to or an alteration of the Premises. the remediation of any Hazardous Substance. or the reinl'otoement or other physical modification of the Premises (..CapJtlI Expend"......', lNaor and La... shall allocate the coat 01 such work as foIlow1: (a) Subjeot to Paregraph 2.3(0) balow, if oud1 CapltaJ Expandlluroo a.. required u a rooul 011110 IpOCiflc and unique use of the Premises by Leuee as compared wtth uses by lenama In general, l.e8M8 ,hIIll be fully raponeible tor the cost thereof. providod, _. IhaIII ouch COpItol Expandltu.. is required during tho last 2 yom of Ihlo L.eaoo and the _ _ _ 6 months' Base Rent, Lessee may Instead tennlnale this lease unleallHlor notifiH Leuee. in wrtling, within 10 dayI ....r f8C8ipt of Less..'s termination notice that uuor has elected to pay the ditfemlCe between the actual cost thereof and the anIOlI1t equIIl to 6 months' Bale Rena. II LnHe eIecta termination. ....... shall immediately celIIe the use 01 the PrernIIea which ~uIreI such Capilli Expondltu.. and _ to Loooor wrlt10n notIc:o opai;Iylng . tenninatlOn daht at Ioaat 90 dayo _. Such _nation daht ohaI, ~ in no ....nt be earner than the last day that Lessee could legally utilize the Premiees wtthout commencing such Capital Expend6re. (b) tI euch Capital.Expenditure Is nOC the result 0lth8 apec::ific and unique use of the Prwni181 by Ln8ee (such ., governmentally mandated I8II1nlc mocItIcatlons). then leISOf' and Le.... sh.1I allocate the COlt of such Capilli' Expenditure.. foIIowa: L....r shan advance tho fundo necouory for ouch Capital Exponcltu.. butl.eoHe ohaJI ba obIgalad to pay, each month during tho remainder oflhe lerm of IhiILH... on the date on which Ba.. Rent II due, an amount equaJlO the product of mulliplying Leaaee's share of the COlt of such Capital Expenditure (the percentage specified In Paragraph 1.8 by . fracIion. the numerator of which Is one, and Ihe denominator of which Is 144 (Ie. 11144th ollhe coat per monlh)). L.e8He 111" pay intareIt on the unamortized balance of Lessee" sh.re at a rate that is commercially reasonable in the judgment of L.euor's accountanta. lHHe may, howewr. prepay Ita obligation a' any lima. Providod. _r. that II ouch Capita' Expandlturo is required durtng tho .... 2 yom of this L.eaoo or I ~r reaeonllbty determ6nes that It is not economicaly 1euIbI. to pay ita share thereof, L.euot thall haw the option to terminate this Lnu upon 90 dayo prior writlon notIc:o to Laoooo..._ Lauae noIItIaa Laooor,ln writing. within 10 dayo._ raceipt 01 L....... tanninatlon notice that L.eaIee will pay lor such.CapItal Expenditure." Leaeor does notelec1 to terminate. and IaiII to tender ill share of any such Capital Expendllura.l.eoHe may advonco ouch !undo and _CO _, with Inta_ from Rant _ ~ oharo of ouch _ haw been fuly paid. II LeIsH is unable to finance Lnlor's share, or if the balance of the Rent du8 and payable tor the rM18Inder of this Lease is not sufficient to fully reimburse La.... on .n offset basis, Leu.. shall haw the right to teminate this Leue upon 30 days written notice to lessor. (e) Notwith81anding the above, the provisions concerning Capital EJcpencltura are tntendecI to apply only to non- voluntary, unexpected, and new Applicable RequIrements. "the CepltaJ Expendllu.... are inatMd triggered by L8UM:.. a ....utt of an actual or propoaed change in UN. change In intensity of us., Of modification 10 the PremiIH then, and In that fN8n1, lHHe IhaII be fully responsible for the COlI thereof. and l.es8ee ahall not haw any rtght to terminate this Leaae. 2.4 AcknowII dglments. Leeue acknowledges that (a) L.euee hu been adviHd by L.eaeor and/or Br0k8ra to..sty ItHff with _ to the condition 01 the Proml... (Including but not lmitad to the a1ectrlcol. HVAC and lint oprinldar oyotamo, oocutlty, environmental aspects, and compliance with Applicable Requirements). and their suitability lor L.ueee'1 intended ute. (b) l.Hsee haa made such investiglltion III it deems necessary with reference to auch matte... and IlUUmM all respondJlIty theNfor III the same relate to its occupancy of the Premtses, and (e) nem,er Lessor, L.essor's agents, nor Brokers have made any 0nII or written repreaentationl or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowIedgn: that: (I) Brokera have made no representation.. promleea or warrlll'llies concerning Lessee'I ability to honor the L.eaI8 or IUItabtIIty to occupy the Premises, and (Ii) ~ is ~ro _ raoponaibilily to invaotigat. the financial capablily .nd/or oultablily 01 all propoaad tananto. 2.5 LH.. .. Prior OwnerlOccupant. The warranties made by Lesaor in Paragraph 2 ahall be of no force or effect il immediately prior to the Start Date, Leuee was the owner or occupant of the Premises. In luch 1IYent. Le8Iee shall be reeponslble for any necessary correctiYe work. 2.6 Vehicle PlrIdng. So long as Lessee is not in defautt. and subject to the Rules and Regulations attached hereto, and as established by Leaaor from time to time. L..... ahaII be entitled to rem and use the nunDer 01 parking epaces specIfled In Paragraph 1.2{b) althe rental rate appJicable from time to time lor monthty parking as set by l.eaor ancUor .. 1108",". (a) 1IL.naee commits, permits or allows any of the prohibited actMties deecriJed In the LAue or the rules then in effecI, Ihen Leaaor shall have the right, wfthoua notice, in addition to such other rights and remedlea that it may have, to remove or tow away tho whicle il1YOlwd ..d chargo the _ to Las..., which 000' shall ba Immodlataly payable upon domand by ~r. (b) Tho monthly nmt por portclng op_ opocIfied In Parogroph 1.2(b) is oubjact to cllanga upon 30 dayo prior wri1tan nolk:e to Leaaee. The rent lor the paridng is p&yIIbIe one month in actvanoe prior to the find d8y of each caJendar month. 2.7 common _. DolInltlon. Tho tenn "COmmon _" is definad .. all..... and _ outoldo the Pramlaas and within the exterior boundary Ine of the Pro;ect and interior utRlIy racewaya and InalIIIdons wIIhln the Preml8n Iha1 are prcMded and designated by the lHIor, from time 10 time. for lhe general non4llCluaive UN of Leuor, Leuee and o1her..,..... of the Protect and their respective emploo"...., suppliers, Ihlppers. cusIomers, conlraclor8 and InvtI8eI. including. but not limited to. common entrances, lobbi8l, corrlden. llalrwelll, pubfic restrooms, elevalors. parking areas, loading and unloading 1IfUI, IraIh ...... roedweye, watkways, driYewaya: and landscaped areas. 2.8 Common ANas - Leuee'. Rights. Lessor grants to Lessee, for the benefit of Le... and ill emptoyees. suppliers, shippers, conlractors. customers and invit.... during the term of this Lease, the nGrHXCluaive rlghl to use, in common with others enlWed 10 such use, the Common Areas as they exist from time to lime, subiect 10 any rights, powers, and privileges reserved by Lenor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use 01 the Project. Under no circumstances shall the right herein granted to use the Common Areas be deemed 10 include the right to store any property, IemporarUy or permanenlly, In the Common Areas. My such storage shall be permitted only by the prior wrIIten conaent of l.ea8or or Lessor's designated agent, which consent may be revoked al any time. In the event that any unaulhortzed storage lhatl occur then les80r shall haVe the righi, without notice, in eddition to such other rlghtI and remedies thalli may h...... to rem0\..'8 the property ancI charge the COlt 10 Lessee, which colt nn be Immediately payable upon demand by leHor. 2.9 Common ANa. . Au". .nd Regulations:. L.esaor or such other penlOll(s) .. LeIIor may appoint shall have the exclusive control and managemant of the Commoo _ and ohall haw the right, from tims to limo, to edopt, modlfy, amend and anforea reasonable rules and regulation. ("Aut. and Aegulattone") tor the management, 1aMy. care, and cINnIlneIs of the groundI, the partclng and Unlolclng of _. and tho p....MItIOn of good ordor, u wall u for thl _nco 01 oIhor occ:upanto or tonanla 01 the Builclng and the Projecl ancItheir IrMtees. The Lessee ag..... 10 abide by and conform to an IIUCh Rules and Regulatlona, and 10 cause its emplO'f88l, suppli8rJ. shippers, customers, conlractors and inYitHs 10 80 abide and conform. L.eIIor shall not be responsible '0 l.eaooe for lha non-compllanco with Aid Rules and Ragulationo by other tananta of Ilia Projoct. 2.10 common _ - Challll", Laooor ohaIf haw tho right, In LasaoI'o _ _. from limo to lima: (I) To mako cIlangao to the Common Arau, including, without Hmltation. changaa In tho location. oiza, ohapo and number of tho lobbiao, wIndowo. otairway.. air ohalto, -.to.., aocoIato.., rootroomo, d,,-", .......... parking _ portclng areas, loading and unloeclng ...... ingress, egress, direction of tratric, Iandecaped areu. wallcwaye and uIII1y ~: (b) To _1omporarIIy any 01'" Common Arau lor maInIanance.purposao..Iong.......-...... to lha Premises remains avaitabfe; (e) To deeignale other land ou18'de the boundaries ollhe project to be a part of the Common Areas; Initial. O'___lnduotrlol___stlon ......2 ,- FORII 0fG01..... (d) To add additional buildings and improvements to the Common Areas; fe) To use the Common Areas while engaged in making addltionallmpnwements, repairs or alterations to the Profecl:, or any portion thereof; and (f) To do and perform such other acts and make such other changes In, 10 or with raspecllo the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate. 3. Tenn. 3.1 Term. The Commencement Date, ExpiratIOn Date and Original Term of this lHH are as specifJ8d in Paragraph 1.3, 3.2 Elirly Poaaeulon. If Lessee totally or partiaHy occupies the Premises prior to the Commencement 081e, the obItgation to pay Base Renl shall be abated for the period of such early possession. AI other terms of 1hts Lease (Including but not IImhd to the obligations to PIIY Leuee.. Share of the Operating Expen.. Increase) shall, however, be in effKt during such period. Any such early possession shall nollffecl: the expiration Date. 3.3 Delay In Poaaeafon. Lessor agrees to use its best commercially reaeonabte efforts to deliver possession of the Premises to Leasee by the Commencement Dale. If, despite said efforts., Leuor Is unable to delver poueasion by luch date, Lessor shall not be subtect to any liability therefor, nor shall such feMure affect the valktity of th1I....... L8ssree IhaI not, hc:wewer, be obligated to pay Rent or pertorm Itt other obligations unlit Lessor deliwrs poasaaaion of the PramiuI and any peliod of rent abatement thai L..... would otherwi.. hove .njoyed shall run from th. dote of delivery of _ion and continuo for. porlad oquoJ to whet l.ooI8o would llt..rwi18 have .njoyed undor tho term. hereof, but minus ony doya of doIoy caused by tho _ or omII8Ions of l.ooI8o. If possession is not deliwred within 60 days after the Commencement Date, as the IIJ1'lII may be extended under the terms of Iny Work Lener executed by PartIes, L.6asee me.y, at its option. by notice in writing wtthin 10 daya ahr the end of auch 80 _ period, cancel this L..... in which aventlhe P.rtioo shall be discharged hum all obIigoliono hereunder. ff ouch written notice is not .- by Loaoor within ..id 10 day period. LoI8oo's right to cancoI .haIlt.rmInoto. If _Ion of tho Promioao is not delNored _In 120 doya atlor the Commencement Date, this Lease shall terminate un... other agrnmente are reBChecl between Lneor and Leuee. in ~. 3.4 l.esMe Compliance. Leuor shall not be required to $Iivw pounsion of the PNmi... to lnHe untU leuH complie. with ill obligation to provide ovidonco ollnsuronco (P.ragraph 8.5). Pondng delivery of ouch OYIdonoo. l.ooI8o ohoII be required to p.rform all of ill obIigolions under this Louo hum .nd .Itor tho Stort 001.. including tho payment of Rant. nolwI1hotandlng Loa<<s electiOn to withhold poaaeasion pending receipt of such evidence of insurance. Further, If l.esaH Is requJred to pedonn IlI'1y other conditions prior 10 or concurrent with the Start Date, the Start Dale shall occur but L.euor may elect to wiIhhotd poael8ion untllluch conditions are satisfied. 4. FlenL 4.1. Rent DefIned. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Securtly D.posit) .re doomed to be rent ("~. 4.2 Operating expenM'ncnan. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent. Lessee's Share of th. .mount by which .11 OporotIng Expen..s for each Comparison Yaar _tho amount of an Operating Elcponooo for tho Base Vear, such UCHa being herelnefter referred to as the MOl-rating Ex..... lncNue.., in IICCOrdance wtth the 1ol5owing provisions: (.) "b..y..,.. is eo ~ in Paragraph 1.9. (b) "Comparison V_roo is defined as each calendar year during the term of this Lease subsequenl to the Base Year; provided. however. L.eIHe shall have no obligation to pay . share of the Operating EliCp8ft88 Incraau appIicI;bkt to the fll'8t t2 months of the Lease Term (other than such as are mancIated by a governmenlll authority, as 10 which gowmrnent mandated expenses Leaaee .hall pay Looaoo'. Shore. _ding they occur during tho firat twoIvo 12 months). l.ooI8o's Shore of th. Oporeting EJcponoe Increase for the first and last Comperison Years of the Lease Term shan be prorated aocordlng to that portion 01 such Compartaon Year as to which Le.... is responsible for . share of such increase. (e) "Opora1lng ~_. Includ. all coots incurred by Loaoor relating to tho ownoral1ip and oporallon of tho Projact, calculated as if the Project was at least 95% occupied, Including. but not limited 10, the following: (i) The openlllon, repair. and maintenance In neat, cl8ln, safe, good on:Ier and condition, but not the replacement (... .ubparegroph (g)), of tho following: (ea) The Common Areas, including their IUrfacH. coverings, decorative Items, carpets. drapes and wtndow COYOrings. and Including p.rking ansoo, _g .nd unloading .reas, trooh are... roadways. _Ics, walkways. stairways"parkwayo, driveways, landscaped areas, striping, bumpers, inigation 8)'8tems. Common Area lighting flcUlties, buDding exteriors and roofs, fences and gates; (bb) All heating. .ir conditioning. plumbing. e1ectricai oystoms, lito saIoty oquipmant. communlcalion systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Project, Including elevators and elCllators, tenent directories, fire detection ayatema including sprinkler 'Yam maintenance and repair. (II) Trooh dilpOl8l, janltorlel and IOCUrlty sorviCOl, peat control ..rvicoo, and th. coots of any onvironm.ntol inspections; (Ill) Arty other service to be provided by Lessor that .elHWhere In this lei" stmed to be an "Operating Expense"; (Iv) Tho coot of tho premiums for th. lnouranca policies maintained by LaSOOf pursuant to p.ragraph 8 and any deductible portion 01 an lnaured Iou concemklg the BuIlding or the Common Areas; (v) The amount of the Real Property"'" payabae by Lnsor pursuant to paragraph 10; (vi) Tho coot of water, I8WOr, goo, .'-IcIly, and olhor publicly mandolOd _ not separately mot.red; (vii) Labor, salarle., and applicable fringe beneflta and costa, materials, supplies and tools, used in maintaining and/or cleaning the Pro;ect and 8CCOLH'Iting and management .... atttibutable to the operation of the Protect: (viii) The coot of any Capitol ElCpIrldlture to tho Building or tho Projacl not covered undor th. provisions of P--" 2.3 provided; however, that Lessor shad a1k1cate the COlt of any such CIIpitaI ~,. over a 12 year period and l.essee shail not be required to pay more than Leu..'s 811.... of 1/144th of the C08I: of such Capital Expenditure in any glverl month; (be) Aoplacamant of oqulpntont or improvamonta thot hove . uaofullfa for aooountlng _ of 5 _ or 1?0o. (d) Arri item of Oporatlng Expo... that is spocIIlcoIly _ to tho Pr...-, tho BuIlding or to ony other building in the Project or to the operation, repair and me.lntenance thereof, shall be llIocaled entirely to IUCh PntmiIe4, 8uDdIng, or other buldlng. However, .ny such Item that Is not spocIIlcally at1ributobla to the Bulding or to any olhar buDding or to tho oporatlon, repair and maintenance thereof, .ha11 be equttably allocated by Lessor to all bulldIngIi in the Project. (e) The inclusion 01 the improvements, facilities and Hrviou Ht Iorth In Subparagraph 4.2{c) shall not be deemed to impose an obligation upon lHsor to either hIve said improvements or facililiel or to provide those aervices unless the Project aIteady has the 88me, Lessor already provtdel the Hrvices, or Leaaor has agreed elHWhere in this Leue to provtde the tatnI or some 01 them. (I) Lessee', Share 01 Operating exp.n.elncteU8 shall be payable by lnHe wittrin 10 days after a I'H8OnIbIy deIaM8d stal.mant of lIClulll _ i. prosanted to L..... by L....'. At L..lssofs optior.. howavor. an &mount may :", '''Jmated by La...; rrom time to time in advance of La....'. Share at the Operating Expense Increue for any Comparison Year, end the same shall be payable monthly during each Comparison Yesr of the L.... term, on the same dIy as the Base Rent II due hereunder. In the event th.t L.oos.. pays Loaoor'a oatimato of La....'. Sh.re of Dporoting EJcponoelncraaoo .. .foroom. Lalllor shall doIlvar to Loosoa within . <<l days after the expiration of each Comparison Veer . reasonabty detailed stalement thawing L....... ShIRt of the acIUaI Operating Expense Increall incurred during such year. If Le...." payments under thIa paragraph (f) during said COmplrison YeIIr exceed Lessee's Share as indicltecl on uid statement, L.eIsee shItI be entitled to credit: the amount of sud1 cwerpayment .gainst Lessee's Share of Opetating ExpenH Increase next laling due. II LeI...'s payments under thl, paragraph during uJd CompBriIon Year were I... th.n L.....'s Share .. Indicated on said .-mant. LoI8oa shall pay to Loaoor tho amount of tho daIIoIency _n 10 daya oItor delivery by LaSOOf to l.ooI8o of said statomant. Loooor and l.ooI8o _1orthwIlh adjust _them by cash poymant any boIanco determined to exist wfth rwpect to thai portion of the iul ComparilOft Year tor which L.esHe is reaponstie .. to Operating Expenu Incroooo.. notwRI1mnding that tho LoI8o term may hove tonnlnated bofora tho end of ouch ComparIoon Yaar. (g) 0p0ratIng Exponsoo sholl not include tho coote 01 ~ tor equipment or copllOl compon_ouch eo tho roof, Ioundations, exterior walla Of a Common Area capital Improvement, .uch as the parking lat pavtng, etevatora. fences that have . U88Iuf Inltisls 01~1rtdU8II'WI1"'" bllteAPodSUGn "",,E3 -- FORM OFG-1~ life for accounting purposes of 5 years or more unless it is of the type described in paragraph 4.2(c) (viii), In wtuch case their coat shall be included as above provided. (h) Operaling Expenses shan not include any expenses paid by any tenant directly to third parties, or as to which Lessor is othefWise reimbursed by any third party, other tenant, or by insurance proceeds. 4.3 P8yment. Lessee shaH cause payment of Rent to b, received by Lessor in lawful money of the United States on orbefore the day on whk:h il is due, without offaeI or deduction (except as specific8ly permitted in thill.eaae). Rent for any period during the term hereof which is bleas than one IuD calendar month shall be prorated baaed upon the aclU8f number of days of saki month. Payment 01 Rent shall be made to Lessor at its address stated herein or to such other persona or place u Lesaor may from time to lime de8ignate in writing. Acceptance 01 a payment which is less than the amount then due shall not be a waiver of LesIor'I rights to the balance of such Rent, regardless of lessor's endorsement of any check so stating. In the ...-enlthat ~ check. draft, or other Instrument 01 payment gi\ten by leaaee to Lessor is dishonored for any reason, Lessee agrees to pay to lessor the sum of $2S In adcItion to any Late Charge. Payments wiU be applied first to accrued late charge. and attorney'1 leel. HCOnd to accrued Interest. then to Base Rent and Operating Expense Increase. and any remaining amount to any other outstanding charge or COltS. 5. Security Deposit. Lessee shall deposit with lessor upon execulion hereof. the Security Deposit 81 security far ......... faithful performance at Its obligations under this lease. If lessee fails to pay Rent. or otherwill Oefautta: under this Le..e. leIsor may use. appty or retain all or any portion 01 said Securily Deposit lor the payment of any amounl due Leaor or to reimburu or compensate lessor for any liability, expense, lop or damage which Lessor may auffttr or incur by reason thereof. If L.euor uses Of applies" or any portion ~U; Security Dopollt. Lo....lhall_ln 10 days altor writtan ,_ _. dapoaIt monIaa _ Laaor IUIIlciant to raato.. said S . OepolJlt to the fuU anlount l1IqUired by this LeaM. If the Base Rent Increuee during Ihe term oIlhls Leue. Leeaee ahaIl, upon written request from Lell9r, deposit additional monies with lessor 10 thai the toIaI amount of the SlcJrity Oepoelt IhaII at aU Umes bear the same proportion to the incrHHd Base Rent as the iniItaI Security Oepo.lI bo,. to the IniItaI Base Rent. Should the Agreed Use be amended to accommodate a material change In the busin818 of Leuee or to accommodate a aubleeaee or auignee. lessor shall have the right 10 increase the Security Deposit to the extent necessary, in lessor's reuonable judgment. to account b any increased wear and tear that the PremlHs may auller as a result thereof. tt. change in control of lnHe occurs during this Lease and following such change the financial condition of Lessee Is, In Lessor's reasonable Judgment, significantly reduced. Leuee shall depoa/l such additional monies with lessor as shall be sufftcientlo cause the Securtly Deposit 10 be at a commercially re8lOnatM Iev8I based on such change in financial condition. lessor shall nOl be required 10 keep the Security o.pos. Hpar8le from ill general accounts. Within 14 days after lhe expiration or termination 01 this Lease, if lessor e1ec18 to apply Ihe Stcurlly 0ep0I1I onty 10 unpaid Rent, and otherwise wtthin 30 days after the Premis.. ha.... been vacated pursuant to Paragraph 7.4(c) below. LeaIor shaft AltUm thai portion 01 the Security Deposit nol used or applied by lessor. No part of the Security Deposit shall be considered to be held In trust. to bear interest or to be prepayment for any monies to be paid by LesIee under this Lease. 6. UM. 6.1 U.. l.esa.. shall use and occupy the Premises. only lor the Agreed Use. or any other legal UN which is reasonably comparable thereto, and lor no other purpose. Leaee shall not use or permlllhe use 01 the Premises in I manner that is unlawful. creates damage. waste or a nuiaance. or thai disturbs occupants of or causes damage to neighboring premlaes or properties. lnsor shall not unreuonably withhold or de'-Y lis consent to any written request for a modIIication af the Agnted Use. 10 long .. the same wIU not Impair the structural integrity of the Improvements of the Building, wiD not adver881y afI8ct the mechanical, electrical. HVAC. and other systems of the Building. ancIIor wi. not allecllhe exterior appearance of the BuldIng. If Le8lOr efecIs 10 withhold coneent. lellCM' shall within 7 days after such request give wrtllen notification of same, whtch notice lhall include an explanation 01 lessor's objections to the change in the Agreed Use. 6.2 Hazardoua Sub8mncea. (a) Reportable U... Require ConunL The term "Haardoua SUbatlinc." as used in this Lease shaH mean any product, substance, or waste whose presence. use, manufacture, dlspol8l. tranaportation. or rel8ue. either by IIHIt or in combination with other materials expected to be on the Premises, is either: (i) potentially lnjurioul to the pubic heatth, safety or wetIant. the environment or the Premises. (i1) regulated or monitored by any governmental authority, or (10') . balls for potenIialliabllty of leeIor to any goyemmental agency or third party under any applicable statute or common law theory. HazardouI SubItances shallncluCle. but not b. limited to. tiydrocarbons. petro6eum, gasoline. andfor cructe 011 or any products, by-proCIucta Of hactlons thereat. L.ueee shall not engage in any activity in or on the Premisea which conltilules a Reportable Use 01 HazardouI SubItancu wiIhouIlhe exprna prior wriIIan conaant of Laasor and tImaly oampllanca (at L....... axpanse) _ all AppIicabIa Raquiremants. "RapaIlabla UN" ahaI maan (i) the installation or un 01 any above or below ground storage tank. (Ii) the generation, p~lIl1.ion, storage, u.., transportation, or disposal 01 a Hazardous SubsIance that rwquiru a permit from. or with respect to which. report. notice, rwgIaUation or business plan is required 10 be fitad with, any governmental authority, and/or (Iii) the presence at the Premisu 01 a Hazardous Substance with respect to wtuch any Applicable Requirements requires that a notice be given to persons entering or occupying the PremiHl or neighboring properties. NoIWithItanding the foregotng, usaee may use any ordtnary and customary matertals reasonably required to be used In the normal COU'" 01 tha Agraad Uaa auch aa ordinary ofllca auppllaa (copiar tanar, liquid papar. gIua. ate.) and oammon __ claanlng materials, 80 long as such UN II In compliance with aU Applicable Aequnmenls, is not a Reportable UII, and eta. not expoee the Premises or neighboring propeny to any meanlnglul risk of contamination or damage or expose Leuor to any RablNIy therefor. In ackltlon, Leasor may condIUon Ita consent 10 any Reportable Use upon receiving such additional usurances as lesIor I'UIOI\8b/y deems necessary to protecl iIsetI, the public, the Premlaes and/or the envlronmenl against damage, contamination. injury ancvor Ilabltlly, inducting, bul noIlitriled to, the inItaIIation (and removal on or before LeaH expiration or termtnation) of protecIive mocIftcations (such .. concrata anc:aaamanta) and/or incrHaIng tha _ty 00p0Ilt. (b) Duty to Inform Laaaor. If L.aaaaa knows. or hu ....._ COUH to baliave. that a Hazardoua _ hu come to be tocated In, on, under or about the Premi8ea, other than as prwvlously COMInted to by Leuor. L.euee shall invnedlately give written notice of such fact to Leuot. and pnwide Lessor with a copy 01 any report, notice, claim or other docurnentMion which II has oonceming the presence 01 such HazardOus SUbstance. (c) LealIe .....JIIdon. Leuee shaI not cause or permit any Hazardous Substance to be spilled or reIeaHd In, on, undBr, or about tha Pramloas (lncIuclng through tha plulrl>lng or aanltary _ ayafem) and ahaI poomplly. at Laaaaa'. _. comply with aU Appllcabte Requirements and take all Investigatory and/or remedial action reuonabIy recommended. whether or not formatIy ordered or required, tor the cleanup of any contamnation of, anCIlor the maJnIenance, HCUrlIy and/or monIIoring of the Premi8u Of' neighboring properties, th8t was caused or materially conlrbded to by lessee, or pertaining to or InvoMng any Hazardous Substance brought onto the PremiMs: during the term 01 this Lease, by or lor lAu... or.ny third party. (d) ....... '''-'nltl..-. L.aaaaa ahall indamnlty, dBland and hold Laaaor. Ita aganta, amplcJo,fta. _IS and ground la8lOr. il any, harmlaaa from and against any and allloaa of ranlB and/or ~ Iab_, judgmanla. cIaima. axpanaaa. penalltes, and attorneys' and consuIIanIs' lees arising out 01 or invdving any Hazardous Subltance bfoughl onto the Premilft; by or for Lessee. or any third party (provided. hooMMtr, that Lessee shall have no liablllly under thil Lease wtIh IWIlpICI to underground migration 01 any Hazardoua S_. unda1 tha Pramiaa. from arB" outsIdB of tha Projact not CBUIBlI or _ to by l.eaaaa). Lusaa'. obligations shall include. but nol be Umtted to, the effects of any contamination or injury to p"*'". property or the envil'Ol'WlMltlt creaIId or suffered by Lessee, and the cost of investigation, removal. remediation, rHloraUon aRCVor abatement, anCIlhaD survive the expiration or tennination of !hit Laasa. No larrnination. cancallabon or raIa... agraamant antared into by Laaaor and Lusaa shall _Lusaa . from ill obligations under this Laue with respect to Hazardous Substances. unless IpICiftcaIy 10 agnted by lusor in wrIing at the time 01 such agrHmlnl. (e) Leuor IndMnnltlatlon. Lessor and its successors and Uligns shel indlmnify, defend. ,.imbu,.. and hold L...... lIB amplcJo,fta and landars. _ 110m and againat any _ all anvlronmanlBl ~. includlng tha coal 01_. w111ch......from......-. _ whlch _ on tha Pramloas prIotto ,"-'a _ or_ BIW_by lhe_ nagliganca or wiN rnlBconduc:l of LaaIor. Ita aganta or arnpIcr,oaaa. laHor'I ~ .. and _ raqulred by tha AppIicaIlIa Rttquirementl, shall Include, but not be ImtIed to, the cost 01 irMltigdon, removal, remediation, I'eIIoIdon and/or tlbaIemenI, Md shall IUrvive the expIradOn or temHnatIon of Ihia Leas. Initials 01_____ _ EstataAuoclalion ""'E4 ,- FOAM ClfG.l_ : (f) Inveatlg.alons and Remediation.. Lessor shall retain the responsibility and pay for any Investigations or remediation measures required by gOYBmmentalentities having jurisdiction wfth respect to the IrXiItence of HaZIIrdouI Sub8lances on the PntmIses prior to Leaaee'a occupancy, unless auch remediation measure Is ~uintd 88 . red of L.eaee.. use (including 'Altellllion.'. es deIlned In _h 7.3(.) below) of the P"""'.... In _"""" L..- Ihlll be __lor such poymonI. Lessee shaU cooperate fully in any such activities at the request of Lessor. Including dowIng Leuor and L..1lIOr'a agents to haw reasonabfe access to the Premises at reasonable times in order to carry out Leuo,.. inv8Itigattve and remedial respond>>tHties. (g) LoIIorT__ Opllon. II I HIzIrdous _ ~ (... Poragnoph 9.1(0)) -... during the I8m1 01 this Lease. unless Luue " legally nHIpOn8ibte therefor (in whk:h: case Leaaee shaH make 1M Invntigation IU1d remec:lation thereof requlrod by the Apt>1lcoble Requi.....n.. ond this Lnse shall conllnue in lua 10... ond oIIoct, but subjoct to .......... rights under PoIllgraph 6.2(d) end POIll9rap/l 13), IAsoor moy, ot Lo..o~. option, _ (I) lnYootIgoto ond _ such HlzlnIous Sub-... CondItion. if rwquiRld. as aoon as reuonabIy possible at Leasor'1 expenee, In which I'</Wnt this LnH 8hal1 continue ... full fotce and effect, or (Ii) if the estimated COIl to mnediate such condition exceeds 12 tim.. the then monthly BaN Rent or '100,000. wtUchever is gre_, give _en noIlco to L..-, within 30 deys after rocaipl by IAsoor of knowIodgo 01 the -._ 01 ouch Hozonlous Substance Condition, of lHsor's desire to terminate ttUI Lease u of the date 80 daya following the de.. at IUCh notice. In the ~ Lessor ~eds to give . letmlnation notice. lei... may, within 10 days the....fter. gMt wrtttan notice to L.euor of LMaee', commitment 10 poy the amount by _ the cost of the _n of .uch Hozonlous Subotonoo CondIIIon __ on omount equal 10 12 timoo the the\. monthly Base Rent or $100,000. whichever is greater. LAuee Ihall provide l.eISor with taki fundi or AtiIfactoty UlUrance thereof within 30 d8y1 ~ such commitment In such event, thl. Leue shal continue In full force and Iff8ct. and LeIIIor shall proceed to make euch re~ation U lOOn .. reuonabIy poSsible 8ftar the requllWd fundi are avdabIe. If lnHe doN not gtw auch nolice and provide the required lund. or assurance thereof within the lime provkled, this Leue shall terminate u of the date Ipeclfled in les8or's notice of termination, 6.3 LoIIoo'I CompIIonco _ Appl_ Roqulrwrnonto. Except sa otherwloe providod In Ihla Loaoo, L..- .holl. ot le...... sola expenae. fully, diIigenIIy and In a timely manner. maIertaIIy comply with all Applcllble Reqw..,"'I1I, the .-qullWfMrdl of ony app_ nlll ......... underwriler or reting bureau, .nd the _ 01 L.-. ongInooro and/or __ which relate in any manner to the Premilel. without regard to whether said rwqulremtnll: ar. now in effect or becomII .rr.cov. del' the Start Date. Leuee shall. within 10 dayI after receipt 01 Lessor". writtan requelt, provtde lAuor wtth copiea 01 .. permila and .other dooumonts. and other Inlormation avtdonclng L..-~ compliance _ ony AppIlcotlle Requiramonts IIpOClIIod by ,,-<, and shall Immadialaly upon receipt, nollfy Lessor in writing (with copl.. 01 ony dooumonto inoIoIvocl) of ony throotonad or actual clolm, _. cit.tion. werning, complaint Of .-.port pertaining to or invoMng the failure of lei... or the PrenUes to compty with any ...~ Requirements. 6.4 lnopoction; Compl_. Lessor and Le_s "Landar" (es dafined In POIllgraph 30) and consuftents oholI hIM! the right to enter into PrerniIeI . any time, in the cue 01 an emergency, and otherwise at I'ttUOnatH ttmeI. tor the purpoee of InepecUng tha condition of the Prem.... and lor Wtlfylng compllance by L..- _ thlo Loan. Tho ooot of ony such InspactIono oholI be pold by lessor, unless a .violation 01 Applicable Requirements, or a Hazardoua Subat8nce Condition (He paragraph 9.1.) iI kMI1d to exist or be imminent. or the inspection is requested or ordered by a gowmrnenlal authority. In IUCh cue, ~ ,h1111 upon I'8queet reimburse L....r for the 00S1 of such Inopoction. so long es such inopoclion 10 reaaonobly Illlotod to the vIoIotion or oontsmination. 7. .alntenanc.; ...,.....; UtIlity InataUatlons; TI1Ide FlxturM and AlteratIons, 7.1 LoIIoo'. ObIlgol1ons. NolwlIh"'ndng~. obligotion 10 kaap the Pram_In good oondIIlon end rapoir, Laooae shall be _nBible lor poymonl of the coal thereof 10 IAsoor a. additional Illnt lor Ihat portion of the ooot of ony mointenonco and _'r of the Premise.. or any equipment (~r located) th.t '.1'V8I oRty La.... or the PrerrUn, 10 the exlenllUCh COli II attributabte to causes beyond normal we.r and tear. Lnsae shall be responsible tor the colt 01 painting, repairing or I'IpIecIng wall covenngs, and to repair or replace any improwments with the Premises. lessor may. It Its option. upon reasonable notice. elect to haw L.nsee perform any particular such maintenance or repairs the coat of which Is othe~ Leaea'I reepondJlIIty hereunder. 7.2 LoIIo~. Obllg_.. SUbject 10 th. provisions of PIIllg_ 2.2 (~), 2.3 (Compliance). 4.2 (Operating Expen...). 6 (U.a). 7.1 (Le...... Obfigotion.), 9 (Oamaga or Deallucllon) end 14 (Condemnotion). Lessor, subject 10 ralmbulSlmonl pursuant to Paragraph 4.2. shall keep in good order. condition and repair the foundations. exterior waIa. etructural condition of interior bearing walls, exterior roof, fire sprinkler system, fire alarm andfor smoke detection lyIIems, fire hydrants, and the Common Areas. Lessee expressly waives the benefit of any atalull now or hereafter in effect 10 the extenl it i. Inconsistenl with the terms of this Lease. 7.3 UtUtty 1n....latlona;TI1I. FIxtu....; Alterations, (a) DaffnItIonL The term "'UtUIty Installations" refers to an ftoor and window coverings, air lines, wcuum Ilnea. power panal.. electrical distributlon. sacutlty end nlll protacllon ayatema. communlcotlon cabling, lighting fixfu.... HVAC oqulpmonl, ond plumbing in or on the Premises. The term '"Trade Flxtu...... shall mean Lessee.. machinery and equipment that can be removwd wfthout doing malarial damogo 10 the Pramisa.. Tho !arm "_ona- .holl moon ony modIlIcotlon of the 1InprcMmonts, other Ihon Utility Installations or Trade FlXIUres, whether by addition or deletion. ..t.n... OWned AbrItIon. ancllor UtIlIty lnatallltlon." are defined as Alterations and/or UUMty Inslllllationl made by Leaee that are not yet owned by LnIor pumNll'1l to Paragraph 7.4(a). (b) Consent. L..- sholl noI make ony Alt...tions or Utility I_tions 10 the P_ _ Leesor'o prior wriIlan consent. L..... may. """"",,, make _rei Utility lnotallotion. 10 the Intarlor of the Pre_ (_ding the roo/) _ ouch conaent but upon notIca to L.euor. ..long.. they are not visible from the outalde. do not InYOIw punclurtng, relocating or IWmOVing the rool. ceilings, floors or IIRY existing wall1. wIU not atrect the electrical. pUnblng, HVAC, ancUor ilia safety sylteml, and the cumulatiYe cost thereof during Ihlo Lene sa __ doss not excoed $2000. Nolwilhotandlog th. Ioregolng, L..- _ noI moM or """,,II ony rool penetrations and/or install anything on the fOOl without the prior writlen approval of LeSllOf. leHor may, .. a precGI tdIdon to granting such approval. require Le.... to utilize . contractor chosen ancUor approwd by Laaor. Any AAerationI Qr Utility Il1IIIIlaIIonI that Lessee shaU delire 10 make and which require the consent of the lessoC' .haIl be pr888nhld to l8Iaor In WfIIIen form with dataMed plans. Consent shaH be deemed conditioned upon Leaaee's: (i) acquiring an IIPPUcabIe governmental permits, (II) furniahJng Leuor with caples 01 both the permItS and the pions end spacitIcotion. prior 10 commencemont of the wort<. ond (W) oompIlonco wtItt all conditions 01 aold permib and other Applicable Requirements in a prompt and expeditious manner. AIry AlteraUonl or Utility IRllalIations Shall be perlormed in a workmanltka m.nner with good and sutrtcient materials. L..... shall promptly upon complltlon furnish L.euor wfth 111- built plans and specifications. For work which costs an amount in excess 01 one month's Base Rant, Leuor may condition lis consent upon Len.. providing a lien and completion bond in an amount equal to 150% of the estimated COlt of such Alteration or Utility Installation anellor upon LnHe's pwtlng an additional Security Oepoaft with lHeor. (c) U.ns; Iond.. Lessee shall pay, when due, all claims lor labor or matarials furnished or llUagecl to have been lurnished 10 or lor lessee at or lor use on the Premises. which claims are or may be secured by any mechanic's or materialmen's lien against the Pr-.rnlses or any interest therein. Lesaee ahall give Lessor not leas than 10 days notice pOor to the comrn.ncement 01 any work in, on or aboullhe Pren1ises, and Lessor ahal: havw it.c. ;,,,,lit I" pw: nv~ G: r..:moraspo.1Sitilll'j. If LasIH st'.aJ1 WIlt.: the validity of any such lien. claim or demand, then L.aIe8e thall, at ita sole expense defend and proteclltself, Lauor and 1M PntmI... againat the same and ahall pay and satisfy any such aclv8rse Judgment thai may be rwndared thereon betare the entolcemenllhereof. If LuIor shall require, Lessee sh.11 furnish a surely bond in an amooot equal 10 150% of the amount of such conteIIed Den, claim or demand, .... indemnifying Lessor against liability for the same. If Lassor elects to participate in any such action. Leuee ahan pay Lusor'I ltIomeys' le.s and costa. 7.4 Ownerahlp; Removal; SUlTWldar; .nd Restomlon. (8) OwMrshlp. SubjeCt to Lessor's right to require removal or elect ownorship u herein.fler provtded. all AlIaratlons and Utility Installations mada by Le.... sholl ~ property 01 ~. but consldarod a pan of the Pramisoa. Laesor moy, II any lime. elect In writing 10 be the owner of aft or any IIpOClIIod pan of the L..- Owned -. and Utility InotoIlalions. UnIooo oIhorwloe instructed per paragraph 7 .4(b) hereof. .11 Lnaae Owned Alterations and UtIlity lnetallatlons lhaII, at the expiration or wnnnatlon of thiS L..... _me the property of Laesor and be surrondored by L..- with tho Promiu.. (b) Removal. By doIiYory to Le.... of writtan noIIco fnlm Leaaor not .lIIIIor thon 90 and not _Ihon 30 cloys prior 10 the end 01 the term at this La.... Leuor may require that .ny or allleue4t Owned AIteratIona or UtIlity lnatallatlons be removed by the .-. o 191foArneriC8n 1l1dUn1.1 ....1 .... AsMdltion PAGe. ..- FORM CJFGo.14M1 expiration or termination of thia leue. Leasor may require the removal at any time of an or any part of any Lessee Owned Alterations or Utility Installations made without the required consent. (c) Surrender; AutoratIon. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvementt. parts and surfaces thereof dean and free of debris. and in good operating order. condition and state at repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deteriotation that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if thiS; Lea.. is for 12 months or .... then Leuee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordnary wear and tear. lessee shall repair any damage occasioned by the instatlation, maintenance or removal of Trade Fixture.. Lessee owned Alterations andlor UliUty Installations, fumilhings. and equipment u wetl 8S the removal of any storage tank InstaDed by or lor Leuee. Lessee shaD also completety remove fn:m the Premises any and all Hazardous Substances brought onto the PremisH by or for Le..... or any thin:! party (except Hazardous Subetancea which were deposited via underground migration from are.. outakIe of the Protect:) twn If IUCh removal would require Lassee to perform or pay lor work that excHdl .tatutory requirements. Trade Fixtu.... shall remain the property of leSSH and shall be removed by Let.... The failure by Lessee to timety vacate the Premiaes pursu~ to this Paragraph 7.4(c) without the expreu written consent of Lessor shall constitute a holdover under the provisions of Paragraph.26 below. 8. Inaul1lncej Indemnity. 8.1 Ineuranee PremlumL The cost of the premiums for the Insurance policies maintained by Lnaor pursuant to paragraph 8 are Included as Operating Expenses (see paragraph 4.2 (c)(iv)). Said COlli .hall Include Incraun In the premium. resulting from additlonalJr0V8ragl related to requiramenta of the holder of a mongage or deed of trust COYIring the Premtees. Buiklng and/or Pro;ect. inc~uation of thl Premise.. Building andlor Projlk."1, and'or a general premium C8te 1ncrnI&. SakI cosII shaD root, however. inctude any premium increases_resulting from the nature of the occupancy of any other tenant of the Butlding. If the Protect wu not insured for the entirety of lhe ... Year. then the base premium shall be the bwell annual premium reasonably obtainable for the required insurance 81 0' the Stan Date. assuming the most nominal use possible of the BulkSng and/or Project. In no event, however, shall L.euee be responsible for any portion of the premium cost attributable to Ilabmty In.urance coverage in excess of $2.000,000 procured under Paragraph 8.2(b). 8.2 Uablllty Insurance. II) Carried by LIuee. Lessee shaH obtain and keep in force a Commercial General UabUity policy of insurance protecting Lessee and Lessor as an addiIIonaIlnsured against daims for bodily injury. personal injury and property ~age based upon or arising out of the ownefShIp, use. occupancy or maintenance of the Premises and all areas appurllnantlherelo. Such insurance shall be on an occurrence basi. providing single limit coverage in an amount not I... than $1,000,000 per occurrence with an annual aggregate of not .... than $2.000,000, an "'Additional Insured-Managers or Leaaors 01 Premises Endorwmenl" and contain the "Amendment of the Pollution ExcIllIion Endorsement" lor damage ceueed by heel. .moke or fumes from e _ fi... The policy shell not contain any intra-insured exclusions as between Insured persons or organizations. but shall Include coverege for lisbYII)' asaumed under this Leue as an "In_red contract" for the performance of Le...... indemnity obligations l.I'1der this Leue. The limits of laid insurance shall not. however, limIIlhe liablily of Lessee nor relieve Leuee of any obligation hereunder. AHinsurance carri8d by Lessee shall be primary 10 and not contributory with any similar insurance carried by Lessor. whose insurance shall be considered excess insurance only. (b) c.rriecI by LMaor. Lessor shaD maintain liability insuf8nce as described in Paragraph 8.2(a),ln adcItlon to. and not in lieu of. the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein. 8.3 Properly In.urance & Building, Impravementa and Rental Value. (a) BulkAng Ind Improvements. L.esaor shaD ob1aIn and keep in force a policy or policies of insurance In the name of Lessor. with loss payable to Lesaor, any groundalessor, and to any Lender insuring loss or damage to the BuIlding and/or Projecl The amount of such insurance shall be equal to the full replacement cost of the Building anc;LIor Protect. as the same IhalI exIaI from time to lime, or the amount required by any Lender, but In no 8Y8frt more than the commerdally reasonable and available Insurable value thereof. LeSS88 Owned AII8raIions and Utility Installalions, Trade Fix1ures. and Lessee's personal property shall be insured by les88e under Paragraph 8.4. If the coverage is avaHable and commerclafty appropriate. .uch polk:)' or poItcies shan Inaunt against an risks of direct physicallos. or damage (except the perils of tIood anO'or earthquake unless required by a Lender). Including coverage Iordebris removal and the enforcement of any Ap~1icabIe Requirements requiring the upgrading. demolition. reconstruction or replacement of any portion of the P~lses 88 the result of a cowred loss. Said policy or poIici.. shall also contain an agl'Hd valuation provistonln lieu of any coin.urance dauae, waiver of sutMogation, and inflation guard protection causing an increase In the annual property Insurance coverage amount by a factor of notlesslhan the adjusted U.S. Department 01 Labor Consumer Price IndIx tor All Urban ConIuITKKS for the city nearest to where the Premises are located. If such insurance coverage has a deductible dause. the deductible amount shall not exceed $1,000 per occurrence. (b) Rental Value. lessor shall also obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, In.uring the loss of the full Rent for one year with an extended period of Indemnity for an additional 180 deya ("Rental Value IneulWlC8;. Said Insurance shall contain an agreed valuation provllton in ltau of any coinsurance clause. and the amount of """"rage shell be sdiuMed snnueIly to ..- the plOjected Rent otherwise peyeble by 1Maeo. lor tho ..... 12 monIh period. (c) Ad"c:ent Prem..... leasH shall pay for any lncntue In the premiums for the property lnIurance of the Bulding and for the Common Areas or other bulkllngs In the Pro;ect If said IMCfeue Is caused by Lelsee" actI. omIa6ons. use or oc:cupancy of the Premises. (d) Lea8M.. Imprcnremenb. Since Lessor is the Insuring Party. Lessor shall nol be reqUINd to insure L.eseee Owned Allerations and UtIlI)' InatallaUons unless the item in question has become the property of LaNOr under the tenns of this Lease. 8.4 L_" Proporty; BUIl_ Intorrupllon In.u....... (a) Property Dam.... lnaH.h111 obtain and maintain insurance coverage on all of Luaee's personal property. Trade Fixtures. and LeSHe Owned Allerallons and utlDIy Installations. Such Insurance shall bl fuU replacement cost CO"o'erag8 with a deductible of not to exceed $1.000 per occurrence. The proceeds from any .uch inlUrance shall be used by LeaIee for the replacement of personal property. Trade Fixtures and Lessee Owned Meradons and Utility Instat1ations. Lessee shan provide leaaor with written evidence thai such lnsurance is in fon:e. (b) Bu......lnterruptIon. Lessee shall obtain and maintain loss of Income and extra expense insurance in amounts as will reimburse Lessee for dir8cI or indtrect Qs of earnings attributable to aD perils commonly lnsuntd agai1sI by prudent lessees in the business of Lessee or attributable to prevenUon of access to the Premises as a resuh 01 such perHs. (c) No RapaM6r,ldon of AdequaW Coverage. leasor makes no representation IhalIhe limb or forms of coverage of insurance specified herein are adequate 10 cover Lessee" property. business op....tion. or obligations under thls Lease. 8.5 InlUl'llnce PoIleIM. Insurance requintd h81ein shall be by companies duly IicenI8d or acmlll8d to lranaacl business in the state where the Premiaes are kIcaIed. and maintaining during the poHcy lerm a -General PoIicyhoIderI Rating"' 01 atleasl8+. V, as set forth In the moaI currenll8aue of "Besfs Insurance Gulde-, or such other rating as mlly be required by a l8nder. L.essee shall not do or permit to be done anything which invallda1ea the required insurance policies. Lessee shall, prior 10 the Start Dale. deliver to Lusor certified copies of pohciea of such insurance or cerllflcate. evidencing the exlstence and amounll of the required insurance. No such polley shall be cancelable or subtecl to modIflcaIion except after 30 days prior written notice 10 Lessor. LIIM8 shaU. alleast 30 days prior to the expiration of such poIicie1, furnish Lessor with evidence of renewals or "insurance binders" 8Ytdencing renewal thereof. or J..essor may order such insurance and charge the cost thentOf to LeIaee. which amount sha. be payable by L..... to l.esIor upon demand. Such policies shall be for a term of at Ie. one year, or the length 01 the remaining lerm of this Laee, whichever Is less. If either Party shall faN 10 procure and maintain the insurance required to be carried by 11, the other Party may. but shall not be required to, procure Bnd mU1tatn thl ....... 8.6 _ of SubRlgl1lon. -olI--.g any other rights or remedn. Lessee end ~..... hereby _ and retiew the other, and WINe tholr sna.. rtght to _ de_ egalnst \he llItler, for _ of or demago to .. praper1y arIIIng out of or incident 10 the perils requi-' 10 be Insu-' againat herein. The efleet 01 such ........ and wailMra ls notlmlled by the amount of .lnitiaII 019_Amer\con____stIon PAGE . ..- _1I0fG.'"", i~ insurance carried or required. or by any deductibl.. applicable hereto. The Parties agree to have their respective property dlmage insurance carriers waNe any right to subrogation that such companies may h8Y8 against l.eIIor or L.eaI8e, 18 the case may be. so king as the insurance is not invalidated thereby. 8.7 Indomnlly. e-pt for L.nao~s grass neglig.nce or willful mIsoonduct, Lo_ _11ndemnlfy, _, delond II1d hold harmless the Premises, UlIOr ~d Its agentl, Lesso"" master or ground Ieuor. partnef8 and Lendera. from and ."11 any and all claims. loss of rents anci'or damages. liens, judgments, penalties, 8ttorneys' and conaultant8'..... "up_ andfor IabIItie8 eriaing out of, involving, or in connection with. the use andfor occupancy of the PremiIea by l.HMe. tf any action or proceeding II brought againsl Lessor by reason of any of the totegoing maners, L.ea8ee shall upon notice defend the same at lHHe's erpen.. by counMI reuonably saUsfaclory to Lessor and L..nsor ahaU cooperate with Lessee in such defense. Lessor need not have first paid any such ct8lm In order 10 be defended or Indemnmed. 8.8 Exemption of .....or from uablllty. Lessor shall nol be l~. for Injury or damage 10 the person or goods, wares. merchandi8e or olher property of Lessee. Lessee'. employees, contractors. invtt.., CUIIOrI'lerI. or any other person In or about the PremiHs, whether such demege or Injury Is ceuoed by or results from fire, Iteam, eltcIrIcIty, gu, wsIer or .-In, or horn 1he bteekege, leakage, obstruction or other defecIa of pipe8, fire sprinklers, wires. apptiances. plumbing, HVAC or IghtIng fbcturee, or from any other 081118, whethor !he said Injury or demeg. _ horn oondltions .riIing upon 1he P_ or upon _ portions of 1he Buldlng, or from other sources or pJeoes. Lessor _ not be liable for any damages arising horn ony act or negIact of any _ tananl of L8es0r nor frow..the failure of lAssor 10 enforce the provilions of any other IeaIe in the Project. NotwtlhIIanCIng lAsIot'l negligence or brnch 01 this Lease, Lnaor lhaII under no c1rcumstlll'lC8S be liable for Injury to leHH's buain... or lor any toea 01 Income or profit therefrom. 9. 00..... or_ 9.1 DeflntllonL (a) "PrwnI... Partial OIIrug." lhan mean damage or deItruc:tion 10 the Improvernentl on the PremiMI, other than L..... Owned _rellons and UtiHty Installations, which can reasonobly be repaired In 3 months or _ from th. data of 1he damage or dulruclion, and the cosllhereol doe. not exceed a sum equal to B month.. Bale Rent. L.euor ,hall notify Leuee in writing within 30 days from th. date 01 the damage or _ u 10 whether or not 1he demego Is Portial or Total. (b) .....m1_T....I_on. ohaI mean dernaga or -.- to the Imp_nil on the Premlsu, other than Lessee Owned AlteraUons and Utility Instelaatlons and Trade FlxIuru, which cannot rwuon8bIy be repaired In 3 rnonIha or leu from the dale ollhe damage or deIINCIion andIor the COil thereof exceedIa sum equal 10 8 month.. Bale RM1I. L.eaor shall notify Leasee in writing within 30 dayslrom the date 01 the damage or deslruction as 10 whether or not the damage is Parti81 orTOIa!. (e) "'n.ured Lou" shall mean damage or dHlructlon 10 irnpIov8mentI on the PremiHI, other than l.nH8 Owned A1t.rations and Utility Installations and Tracie Fixtures, _ was ceuoed by an ....nt required 10 be _red by the Insurenco daocrlbed in Paragraph 8.3(a), irr8lpltCllYe of any deducIIbfe amounll or c:owrage limits irwolYed. (d) ..AtIpll=lmant Coat" shat mean the coat to repair or rebuild the Improwmenll owned by LeIIor II the lime 01 the occurrence 10 their oon_ exIaIing Imrnedlatoly prior 1hereto, including demotillon, dobris removal and upgrading required by the operation 01 AppJicabIe Requiremenl8, and without deduction for depreciation. (e) "Hulrdoua Substance Concltlon" shall mean the occurrence or diacovery of a condition InvoMng the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 8.2(a), In. on, or LI'1d1r the Premises which requi.... repair, remediation, or restoration. 9.2 PIIrti111 Damage . IMUred La.. II a Premises Partial Damage thet is an Insured Loa OCCUfl, then Lessor shall, al Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Aherationl and UtIIty Installations) as soon as reasonably possible and this Leue shall continue in lulllorce and effect; provtded. however. thai Le.... shall. lit L.euor's election, make the repeir of any damage or desIructIon lhe total cost to repair 01 which Is $5.000 or ..... and, In IUCh ......,1. Lauor ahan make any applicable insurance proceeds availabte 10 Lessee on a reason"" basil for thai PUtpOl8. NotwIthIIIIndIng the foregoing. if the required insurance was not in force or the insurance proceeda are not euf6cient 10 effect auch Npair, IhIIll'IIUring party shall promptly contribute the shortage in proceeds as and when required 10 complete said repalra. In the 8Yent, however. such shortage was due 10 Ihe faclthat, by reuon of the unique nature 0I1he Improvements. 1....I.replacement cost insurance coverage was not commerclaDy reaaonabJe and available. Lessor shall have no obItgation 10 pay for the ahortage In Insurance pl'OOMdl or 10 lully I'HtoN the unique aspects 01 the Premises unless Lessee provides Lessor with the funds 10 cover same, or actequaIe auurance therwof, within 10 days fallowing receipt 01 wrtllen noUce of luch shonage and request therefor. If LASIOr receiYea saki funds or adequate asauran08 IhIntof within said 10 day period. the party responsible for making the repaira shall camp'" them as lOOn .. ~ poatie and this Lease shaD remain in lull farce and ellect. If such funds or assurance are not received, Lasaor may n8Y8l'lhe1ess ekK:l by wrtlten notice to Lessee within 10 days thereafter 10: (I) make such restoration and repair as Is commerolaly reasonabkt with Leuor payi1g any shortage In proceeds. in which cue this Lease shall remain in lull force and efI8cI. or (II) have this Leau terminate 30 dayI th8l8l.fler. Lessee shall not be endUed 10 reimbursement 01 any lunda contributed by L.easee 10 repatr any such cWnage or dNtrucIIon. Premiaes Partial Damage due to nGOd or earthquake shall be subject to Paragraph 9.3, notwlthltancing thai there may be IOme Insurance coverage, but the net proceeds of any such Insurance shall be made avatlable for the repalra II made by either Party. 9.3 Partiel Damllge. Uninsured Lola. If a Premises Partial Damage thai is not an Insured l.oas occura, unlesa caused by a negligent or MlifuI act of Lessee (in which event L8IIH shaH make the repelra al Lusee's expense). L.eaaor may either: (I) repair such damage as soon .. reasonably poulbte at Lusor'. 8XP8nH. In which 8Y8nI this LH.. tIhaH continuIln fuU foroe and effect. or (ii) terminate 1his Lease by giving written notice to l.eIaee wilhJn 30 days after receipI by Lnsor of knowtedge of the OCCUITWIC8 oIlUCh damage. Such termination shaA be eff8ctive 60 days following the date of such notice. In the......nt Leuor elects 10 terminate ttUI Leu., Lessee shall have the right within 10 days after receipt oIlhe termination notice 10 give written notice 10 LHsor of u....'s cornmllment to pay for tne repair 01 such damage without reimbursemenl from Lessor. Leuee Shall provide l8IIor with said fln:tl or aatIsfactory assurance thereof within 30 days after making such commitment. In such event this Leue IhaU conllnue In full force and eIIecI, and Lessor shall proceed to make such repeira as soon as reasonably posaIbIe after the required fundi are available. if L.ee8ee does not make the required commllment, this Lease shalltermlnat8 as of the date specified In the termination nouce. 9.4 Total Destruction. Notwithstanding any other provision hereol, If a PremlIes Total OeItr'ul:tion occurs. this Lease shall terminate 60 days following such Destruction. If the damage or destruction was cauaed by the gross negligence or willful miaconducl 01 Lessee, Lessor shaH have the right 10 recover Lessor's damagealrom L.eaaee, except as provided In Paragraph 8.6. 9.S Oaimage Near End of Term. II at any lime during the last e months 01 thie: LeaIe there I, damage lor which the cost to repair exceeds one month'. a... Rent, whether or not an Insured Lou, lHaor may terminate thia Lease.rr.ctiYe 60 days following the date of occurrence 01 such damage by giving a written termination notice 10 L.e.... within 30 days after the date of occurrence 01 such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend ttis Le... or 10 pun:h... th. Premises, then Le.... may preserve this Lease by, (a) exerciling such option and (b) providing L.euor with any shortage In Insurance proceeds (or adequatl8S6urance thereof) need&d tc.. rnab thb I'-vails 1311 (,r ba1Ciur ii'.. earlier u: (i) tl""1t whjch Is. iO da)'S lifter Leasee's receipt 01 Lessor's written notice purporting 10 terminate this Lease. or (Ii) the day prior 10 the elite upon whk:h such option expires. If Lea... duly exerci8ea luch option during such period and prov6dn Leuor wtIh lunda (or adequate ueurance lherwof) 10 cover any shortage In insurance proceeds. Lessor shall. al Lessor's commen;:ially reuonebIe expense. repajr auch damage as aoon as ..reasonably possible and this Lease shaI continue In lulllorce and effect. II L..... fails 10 exerci18 such option and prcMde such funds or assurance during such period, then this Laue shall terminate on the date specified In the termlnallon notice and Less.... option shall be extinguished. 9.6 _. of Rent; ~'. RemodI... (e) Abatement. In the event ot...Premlna PerUa! Damage or Premises Total Destruction or a Hazardous Substance Condition tor which L.auae Is not responsible u_r this Loa.., the Renl payabIa by L.auae tor 1he period requIrod for tho repair. remediation or resIoration oIauch damage shall be abaIed In proportion to the deg.... to which Leuee'a UI8 01 the PremIIn is impaired, but nol10 exceed the proceedl received lrom the Rental Vafue insurance. All other obIlgattons of LeIMe hentunder IheII be performed by Lessee, and L.enor shall have no liability lor any such damage. destruction. remedilltion, repair or restordon except .. proW:ltd herein. Initials G 1~ IndU8trtII.....1!ac.18 AnoGIdon ......7 .- FORII~1"" (b) Remedie.. If lessor shall be obligated to repair or restore the Premlsel and does not commence, In a subatanUal and meaningful wtlt'f. such repair or restoration within 90 day. after such obligation shall accrue, Leesee may, at any time prior to the commencement of such repair or restoraUon, give written notice to Leaor and to any Lenders of which LeUH has actual notice. of le8aee's election to terminate this Lease on a date nolless than 60 days follOWing the giving of such notice. If lesHe gives such notice and such repair or restoration is not commenced within 30 days thereafter. this Lease shall terminate u of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in fun force and efIeot. .Commence" shall mean either the unconditional authorization of the preparation of the required plans, or the begimlng of the actlNU work on the Premises, whichever lirsl occurs. 9.7 Termlnlltion; Advance Payments. Upon termination of this lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitabkt adjustment shall be made concerning advance Base Rent and any other advance payments. made by lHHe to lHsor. LaSlOr shall, in addition, return to Lessee 10 much of Lessee', Security Deposit as has not been, or II not then required 10 be, UI8d by Lessor. 9.8 Waive Statutu. Leuor and Lessee agree that the terms of this lease shaH govern the effect of any damage to or destruction of the Premilel with respect to the termination of this Lease and hereby waive the provlsiona of any present or future statute to the extent inconsistent herewith. 10. Real '-'YTII.... 10.1 Detlnftione. As used herein, the term "Real PropertyTuu" shall Include any form of uaument; rNJ llltlte, g.net'IIl. speciai, ordinary or extraon:tinary, or rental levy or tax (other than inheritance, personal income or estate taxes); Irnprowment bond; and/or I~ense fee imposed upon or levied against any legal or equitable interest of Leaor In the Project, lHIot's right to other income ti1ereiroil, and/or Lessor's buainetJI of ~ng, by any authority hav;ng the direct or indirect pcu.;er to tax and wthtl. 1M fundi are generated with relerence to thtt Project address and where the proceeds 80 generated.re 10 be applied by the city. county or other local taxing authority of a jurisdiction within which the Protect is located. "R.I Property,...." thall liiio Include any tax, "e, levy, asseument or charge. or any Increase therein, Imposed by reason of events OCCUrring during the term of this Lease, Including but not limited to, a change in the ownership of the Proiect or any portion thereof or a change In the lmprovemenll thereon. 10.2 PIIymenI: on'.x... Except as otherwise provided in Paragraph 10.3, Leuor shall pay the RMI PropettyTaxu applicabte to the Project, and sakJ payments ahall be included in the calculation 01 Operating Expenses in accordance with the provilionl of Paragraph 4.2. 10.3 AddltlonallmprovementL Operating Expenses shall not include Real Property Taxes specified in the tax IlSHISOr'S records and work sheets as being caused by additional improvements placed upon lhe Project by other Ie..... or by lessor for the exclusive enjoyment of such other 1esH... Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to L.neor althe time Operating Expenses are payable l:lnder Paragraph 4.2, the entirety of any increase In FlHI Property TueI if .....sed solely by reason of AItet8tions, Trade Fixtures or Utlilty In.lations placed upon the Premises by Leasee or at l.euH'I request. 10.4 Joint A"'ament. II the au.dlng is nol separately assessed, Real Property Taxes allocated to the Bulk:ling shall be an equitable proportion of the Real Property Taxes tor all of the land and Improvements inctuded within the tax parcel aueased. SUCh proportion to be determined by Lesaor from the respective valuations assfgned in the US8SIOt'8 work sheets or such otherlnfonnatlon as.mey be reasonabty avaiIatH. Leuor'. reasonable determination Ihereof, in good faith, shall be conclusive. 10.5 PerIIOftIII Property 1'1.... LeSHe .hall pay prior to delinquency aU tax. ....1Hd agalnll and levied upon L..... Owned Alleratlons and UtIItty Installations, Trade FbclUrea, furnishings, equipment and all personal property of Leaee contained In the Premises. When possible, Lessee shall cause its Lessee Owned Alterations and UtIlity Installations. Trade Fixtures. fumtshlnga. equipment and all other personal property 10 be assessed and billed separately from the real property of lIuor. II any of Leuee's said property shaH be assessed with l.essor's real property, Lessee shall pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of 8 written statement setting forth the taxes applicable 10 Lessee's property. 11. UUII_....Se_ 11.1 Services PravIdecI by Leaor. lessor shall provide healing, ....ntilation, air conditioning, reasonable amounts of electricity for normal Hghllng and oIfice machines, water lor reasonable and normal drinking and lavatory UH In connecIIon with In otIice, and replacement Ilghl bulbs and/or fluorescent lUbes and ballasts tor standard overhead nXlUres. L.esIor shall also provide janitorial services to the Premi881 and Common Areas 5 limes per week, excluding Building Holidays, or pUl'IUant 10 the allached janitorial schedule, if any. Lessor shall not, however. be required to provide janitorial services to kitchens or Itotage areas Included within the PremiS81. 11.2 Servlen Exclusive to Lea... Lessee shall pay lor all wiler, gu, heat, light, power, telephone and other utillti.. and services specjally or excI.....1y supplied andIor metered exciusively to the Premises or to Luaee, together with any taxeI thereon. If iii service is deleted by Paragraph 1.13 and such service is not separately metered to the Preml.... Le.... shall pay at Lnsor's option, either Less88'S Share or 8 reasonable proportion to be determined by Lessor 01 all charges for such joInUy metered service. 11.3 Hou... of Servloe. Said services and UlIDlles shall be provided during tirnn: HI forth in Par.graph 1.12. Utilities and services required al other 1lmea shan be subject to advance request and reimbursement by lessH 10 LeIIor of the cosI thereof. 11.4 Ex.... U_ by LMoao. Le.... shoJI not moko oonnec1lon to tho utiI_ ucepl by or Ihrough oxIl1lng outloto ond shall not Install or use machinery or equlpmenlln or about the Premises thai us.. excau water. IighIIng or power, or suNlr or permit any act that C8U181 ex1ra burden upon the utilities or services, indudlng but not limited to securtly and trash HrVicH, 0'Mr llandard office usage for the Projacl. LetIOr shall require L.essea to relmburae Leasor for any excns expenses or COlIS thai may arise out of a breach of this subp8r8graph by Lessee. Leuor may, in its sole discretion, Inlla. at L.....'a expanse supplemental equipment and/or separate metering applicable to Leasea'l axceu usage or Joadk'lg. 11 .5 1ntarrupti0n8. There sha. be no abatement of rent and Lessor shaD not be liable In any respecI whalaolMtr for the inadequacy, stoppage,interruptlon or chconllnuance of any utiNty or service due 10 rial, strike,labor dispute, brnkdown. accident, repair or other cause beyond l...eaor's reasonable control or In cooperation with governmental request or directiOM. 12. Aaelgnment and Subletting. 12.1 a.-'.~Roqulrod. (a) LeaH IhaII not voluntarily or by operation or law assign. transfer. mortgage or encumber (coUectiveIy, .......... or ...Ignmentj or sublet all or erry part of Lasaee's interest In this Lease or in the PremiIes wilhout L8aot's prior written consent. (b) UnIeu L.eesee is a corporation and lis stock Is publicly traded on a naUanal stock exchange, a change In the control of Lessee ahaU constIIute an 8IIignment requiring consent. Thellansler, on a curnulatNe basil, of 25% or more of the vollng control of leU88 shall c:onatilule a change in control br thts purpose. Ie) The irwdvement of Leasee or ils assets in any tranaaction, or .erie. 01 transactions (by W<<I of merger, sale, acquisition, financing, tranahtr. I......raged buy~OUI or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's ....18 occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount gruter than 25% of such Net Worth as it wu represented at the time of the execution of this Lease or al the time of the moll recent assignment to whk:h Lauor has consented, or as It exMtt immed6a1efy prior to said trensactlon or transactions oonstfIutfng Iuch reduction, whlcheYer was or is greater, shall be considered an assignmenl or this Lease to which Lessor may withhold its consent. "NetWorth of LeuH" shall mean the net worth of Lessee (bCludlng any guarantors) .stabllshed under generalty accepted accounting principle.. (d) An ustgnment or subIe1IIng wllhoul consent shall, at Lessor's option. be a Default curable after notice per Paragraph 13.1 (e). or a noncurobla Broach _Oullha necessity of any notIca and glllCll period. If Lessor _ 10 _ such unopprovad ...,assignmenl or subletting as a noncuratH Breach, Lessor may ellher: (i) terminate this LeaIe, or (II) &4JOIl30 dIy8 wriIIen notice, incruaa th. monlhly Suo RanI to 110% of tho Suo Ron. thon in ._. Fur1hor. In Iha ......, of ouch _ ond ..... ~. (I) "'" purch... priCe of any opllon to pu_ tho '''''''Isos hold by L..... shall b. ..bjoct to oImIlor ..._. to 110% of tho priCe prevloully In -. ond (II) .. _ ond non-_ I8f1lOI .,*,stmtlnlO _loci during tho _ of tho Louo IlIIm _ bo ,nero.... to 110% of tho __ lIdj_lOQI. (.) Le...... remedy lor any breoch of 'arograph 12.1 by Lessor sholl bo IImIIod to componutory dom_ ondIor injunctive relIlII. In_ .1_____aOll PAG.s -- FORM OFGol_ 12.2 T....... and CondItIons Appllclble to Aulgnment end Subletting. (I) RogI_ 01 LooIOI'I c:onoon~ no ualgnmont '" IUb-.g shoJI: (I) be _ without the exp.... _ IllUmpticln by such lllignoo '" .ubIos... 01 lhe obligotiono 01 u- under Illlo Louo. (i) _ u- of ony obIIglllion. hlreunder. or (iiij _ the primory _lily of Louee for the _, of Ron! '" for the performonoo of ony other obIigotion. to be performed by LI..... (b) lea80r may accept Rent or performance of Leasee's abllgdana from any peraon other than L.euH pending approwl or disapproval of an uslgnment:. NeIther a daI-V In the approval or dI8approvaI allUCh MIIg1lma1d nor thIt acceptanca of Rant or performance shall constitute a waiver or utoppel of L.eslar's right to _rcise its ramadIaI for lHI8e'l DeIauJt or Breach. (C) lnscn's canaant to any assignment or subletting shaI1 not constitute a corwant to wry subsequent assignment or subletting. (d) In the event of any Oefauk 01 Breach by LeNH, Leslor tNIy prooeed dlrectly agalnlt Leaee. any Guarantora or anyone 8tse responsibkt tar the performance of lessee's abUgatians under thlll.Nae, including any uatgnee or IUbIassae. without first oxlllustlng Lossof. re_ ogoinot Iny OIhlr person or onlily reopo"- _ to ~. '" ony _rity held by Lossor. (I) Eoch request for conoent to on lllignmont or ..-u..g _ be in writing. oocomponIld by Informotion _ to lessor's determination .. to 1M financial and operational ntlpOMibiNty and appropriatanau of the PfOPOHCI U8IgnH or aubI...... includtng but not limited to the intended use and/or required modification of the PremiHI, II any. L.aIIH agrHI to pnMde Lnaor with such _ or .ddltionollnfonnotion oncll", documontotion II moy be relllOlllbly requootod. (See oJoo Pomgfoph 36) (f) My auignee of. or IUbIu... under, thle leuelhall. by reuon of accepting auch uaignment 01 entering into IUch sublease. be deemed to ~assumed and agreed to contarm and comply wtth each and every term. cov.nant. condItian and obHgatIon herein to be _ or performed by Louee during Ille lerm of _ lllignmont '" oubIoue, other then .uch obIigollono II Ire contrary to or lnconsil1ent with provisions 01 an assignment or IUbIeeIe to whk:h LesIor has apecIficaIy coneented to i"I wrtUng. (g) lesIor's connnt to any allignment or lubIattlng IhaI not tranlfar to the IIIVtM or IUbllllll any Option granted 10 1111 origlnll U- by Illlo Louo un.....uch _10 opoclftcoJIy __ to by ~.. _ng. (See Poregroph 38.2) 12.3 A__ Tonno Ind Condlllona Appllcoblo to S_.g. Tho following ...... Ind conclllono ohoIl oppIy to ony subletting by leSIH of all or any part of the Premises and shal be deemed Included In an euble.... uncIer this Laue whether or not expressly incorporated therein: (a) Lessee hereby Ul6gns and transfers to L.HIor all of LA...... Interest In .. Rent payable on any 1UbIeaH, and Lessor moy collect ouch Rent ond opply umltoword Lo....'. obllgotlons undor Illlo Louo; plOYidod. howovor, lhot un1I1 _ shoJI occur in lhe porfonnenco of Louee~ obIigotions. u- moy coIect _ Rent. Lossor shoJI ~ by reuon oIl11o foregoing '" ony ossignmont 01 ouch ,_. nO< by reuon 01 the oo_on of Rent. be deomod IIobIo to the _ for ony IoIIure of u- to perform end oomply wIIh ony of Luooe's obIIgotlon. to ouch oub-'. u- hotolJy IrrewcobIy ........... end _ ony .uch .ublo..... upon recolpt oil _ notice !rom ~ I18t1ng tholl _ _In the porformonoo 01 u-~ ob/IgolIono under thlo lease, to pay to lessor all Rent due and to become due under the 1UbIeue. SubleUH lIhaII *y upon eny auch notice from lHaor end shill poy all Rents to Lossor wtIhout Iny obIigotlon '" right to "quire II to _, ouch Brooch oxIOII, _ng ony cleim from lessea to the contrary. (b) In the ....nl of a Breach by lessee. Lelsor may, at Its option, require tub..... to .nom to L.euor, in which .....rn Lessor shill undertake Ihe obligations oflhe subIeseor undor such sublouo from Ihe limo of the _ 01_ option to the oxplretion 01 such subIe...; provided, ~r. Leuor shall not be liable tor any prepaJd rentI or ucurlty cMpOIIt paid by such IUbIeaHe to such sublessor or for any prior Defautts or Sreachea of such subleuor. (c) Any matter requiring the consent 01 the subleuor under a sublease shan alao require the consent of lessor. (d) No subless.. shalllurther assign or sublet all or any part of the Pramian without lNeor's prior written consent. (e) lessor shall detiwr a copy of any notice of Default or Breach by LassH to the IlIblll,", who IhaIl have the right to cure the Default 01 lnMe within the grace period, lIa"y. specified in such notice. The IUbIasne IhaII have a right of relmburaement and offset tram and againat leuee for any such Detautts cured by the lubfeeHe. 13. Deleun; 11_; _100. 13.1 DefIlun; B.-ctt; A llDehluh" is deftned as a failure by the leIHe to comply with or perform any of the terms. covenants, conditions or Ru. and Regulations under thisleue. A MBreach" is defined.. the occurrence of one or more of the following Defautts, and the failure of lessee to cure such Default within any appUcabIe grace period: (a) The abandonment of the PremlIes; or the vacating of the Premises without providing a commercialty reuonable level of security, or where the COYerage or the property insurance dHcribed in Paragraph 8.3 II jeop8rdtzad.. a !'HUh ther8of'. or without providing reasonabte usurances to minimize potential vandaltlm. (b) Thl foiIure 01 Louee to moM Iny psymem of Ronl '" ony Security 00p0aIt required to be modo by l8IIH hereunder, whether to Lessor or to a third party, when due. to prcMde reasonable evidence of inlUrance or lurety bond. or to fulfin any obfigatlon under this Lease which endangers or threatens lie or property. where luch faUure continues for . period of 3 bulineu days lollowlng written notice to leAee. (c) The teilure by leu.. to provide (i) reuonabte wrtaen evidence of compIlance with AppMcabIe Raquilenwnta. (ii) the service contracts, (JII) the reecluion of an unauthorized usignment or 1UbIettIng. (tv) an e.tappeI Certlftcala. (v) . l'8qu8lted subordination. (vi) evidence concemtng any guaranty and/or Guarantor, (vii) any document requntad under Paragnaph 41 (easements). or (viii) any other documentation or Information which lessor may reasonably require of lHH8 under the terms of thiI Laale. where Iny such leflure _ for I period 0110 doyo following wrIIton notioe to Looooe. (d) A Defautt by lnHe u to the term.. covenants, conditions or pl'OYiliona of this le.... or of the NIeI adopted under Paragraph 2.9 hereof. other than thoae described in subparagraph. 13.1(a). (b) or (c). above. whe,. luch Default continueI for a period of 30 days after written notice: provtded, however. thai it the nature of le8l88'8 Delauh is such that more than 30 days are reasonebfy required for its cure, then it shall not be deemed to be a Breach it Lessee comtTleMC8S such cure wtthln said 30 day period and thereafter diligently prosecutes such cure to completion. (e) The occurrence of any of the lollowing events: (i) the making of any general arrangement or assignment lor the benefit of creditors; (Ii) becoming a "debtor" as defined in 11 V.S.C. t 101 or any lucceuor statute thereto (unless, in the case 01 a petition med against Lessee. the same is dismissed within 60 days); (ill) the appointment or a trustee or receiver to take P0U88sion of substantially all 01 lessee's assets located at the Premises or of Lessee's Interest in thlllAue, wheN popellion is not r88tored to Lessee within 30 days; or (Iv) the attachment. execution or other judicieJ Hlzure of aubatantialy all of lnIee'l aseetllocatecI at the Premises or 01 L.eIIee'. interest in this IA.... wheN .uch I8izure is not diIchIIrged within 30 dayI:; provided, however. in the event that any provision of this subparagraph (e) is contrary to any applicable .... such PfOYiIion ,hall be 01 no force or ettact. and not attect. the validity of the remaining provilions. (n The dlscovery that any linanclal r.atamErt. 0: lo~ec Ci ::: ~;.' c.:JC.~cr ;:...::-: :: ~~:: W~: mc:Crially ~e. (9) II the perfonnonce of L......s obIiglllons undor Ihlo LI... 10 guo_: (I) thl dnth of I Guorentor. (II) Ihl termination 01 a Guarantor's llabtllty with respect to this lease other than in aocardance with the terms 01 such guaranty, (Iii) a Guarantor's becomlng InaolYent or the subject 01 a bankruptcy filing, (Iv) a-Guaranto(s refusal to honor the guaranty. or (v) 8 Guarantor's ..)>reoch ollis gu.romy obIlgl11ion on In onlicipotory blois, .nd Leoo..'.leUure, wItIlin 60 doyo ~ _ notice of ony .uch evem, to provide written altematiw asaurance or security, which, when coupled with the then exiIting ruourcel 01 L.eIIee, equals or exceeds the combined financial resources of lessee and the Guarantors thai existed at the time of execution 01 thillnH. 13.2 Ramedl... tt lessee rails to perform any of Its artlrmatlw duties orobUgationa. wtthin 10 days arterwritten nollce (orin case of an emergency. without notice), Lessor ruBy, at its option, perform such duty or obligation on leaIee's bahaJl. Including but not limited to the obtaining 01 reasonably required bonds. insurance policies. or governmental HcenIn, permtll or approvals. The costs and expenses 01 any such performance by LeI80r lhall be due and payable by lMMe upon reoefpt of invoice therefor. If any oheck given 10 LllIOr by u- _ nOl be honored by tho bonk upon -. fllo drown. ~. Illto _. moy require 011 futunt _to be modo by Louee to be by cuhlefo chock. In IhI event 01. Brooch, LIllO< moy. wIIh '" _ furthlr notioe or domond. end wtIhout limiting Lessor In the exarciH of any right or remedy which Lauor may ha... by reuon of.uctt BIW8Ch: l"iti.1s .1.....rMrIcan Induna.t ..... btaw AHocI...on """EO Initisls PORN 0f'G-1.... (a) Terminale Leuee's right to posseSSion of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shalllmmedietefy surrender pouesaion to Leuor. In such event Lelsor .hall be entitlecllo recover from Lnsee: '(;) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award 01 the amount by which the unpaid rent which would have been earned after IWminatlon until the time of award exceeds the amount 01 such rantalloal that the Lessee proves could have been reasonably avoided; (ili) the worth at the time 01 award 01 the amount by which the unpaid rent for the balance of the term after the time 01 awatd exceeds the amount 01 such rental Iou th81 the l.eesee pro\lel coukl be reasonably avoided; and (iv) any other amount neceaaary to compensate Lessor for all the detriment proximately cauHd by the L.euee'l failure to pefform its obligations. undet this Lease or which In the ordinary course of things would be Ilkety to resu. themrom, including but not Iimllecl to the cost of recovering pouesslon of the Premises, expenses of reCetting, inducing neceuary renovation and aJt8lation of the Premlael, reasonable attorneys' fees, and that portion 01 any leasing commlHion paid by Lessor In connection with this Lease appIIcabJe to the unexpired term of tme L..... The worth al the time of award of the amOU"lt relerred to in provision (in) of the Immediatefy preceding sent.nce shajl be computed by di8counting such amount at the discount rate of the Federal ReHrve Bank of the District widrin which the Premises are k:lcated 8t the time of award plus one percent. Efforts by Lessor to mitigate damages caused by L.euee'l Breach of this Lease shall not waive Leuor's right to recover damages under Paragraph 12. If termination of this Lease II obtained through the provisional remedy of unlawful detainer, Lessor shall haYethe rtght to I'8COV8f in such proceeding any unpaid Rent and damagH U are recoverable therein, or Leaor may reaerve the light to recover all or any part thereol in a sep...... ault. If a notice and gl'llCe period required under Paragraph 13.1 wu not previoully given, a notice to pay rent or quit, or to perform or qui gr..n to L.euee under the unlawful detainer statute shd also consUtute the notice requtred by Paragraph 13.1. In such cue, lhe appIcabIe grace period requJred by Parag~h 13.1 and the unlllwf~1 detain.r _lute .hall run concurrentty, and the failure 0' le8see to .:'Jre 1he Defa:J:t 'NIlhtn :he greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entItHng Leaor 10 the remedies provided for in Ihia Le.. andfdr by said statute. (b) Continue the Lease and Lessee" right to possession and recover the Rent as II becomes due, in which event L.essee may sublet or assign, subject only 10 reasonable limitations. Acts of maintenance, efforts to relet, andIor the appointment of a receiwr to protect the LeaaOfs interests. shall not constiIule a termination of the Le....'. right to posseUIon. (e) Pursue any other remedy now or hereafter available under the Iawa or judicial decilions 0' the ""e wherHI the Premises are located. The expiration or termination 01 this Lease and/or the termination of Lessee's right 10 possession lhaU not reHeve Lessee from liability und.r any indemnity provtsions of this Lease as to maners occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Preml8es. t 3,3 Inducement Reclipture. Any agreement for free or abated rent or other charges, or for the giving or paytng by Lessor to or for Less.. of any cash or other bonus, Inducement or consideration for Lelsee'. .,tering into thll L.e.., all of which conceasiona are hereinafter referred to as "Inducement Provisions", shall be deemed conditioned upon Leasee's Iud and faithful performance of an 01 the terms, covenants and conditions 01 this Le.... Upon Breach of this Leue by Lessee, any such Inducement ProvIaton shaD automallcally be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, lnduoement or consideration theretofore abated. given or pakI by Lessor uncler such an Inducement Provision shan be immecftataly due and payable by Less.. to Lesaor, notwith....ndng any subsequent cure 01 said Breach by Leaeee. The acceptance by LnIor of rent or the cure 01 the Breach which initiated the operation d this paragraph shall not be deemed a waiver by Leuor of the provi8ionl of this paragraph unless specifically so stated In writing by l.e1lOl' at the time of such acceptance. 13.4 Late ChargH. Lessee hereby acknow\edgls that late payment by Lessee of Flent will cause LeMor 10 incur coats not contemplated by this Lease, the exact amount of which will be IJCtremely dilficuh to ucertain. Such COllI Include, but are not limbed to, proce..ing .nd accounting chlllgBS. and IaIo ch.rga. which may ba impoaad upon LeIllOl' by any Lendar. -IVY. W any Rant ahall not be received by Lesaor within 5 days after such amount shall be due. then, without any requirement lot notice to lei.... L.eaee shall pay to Lessor a on.time late charg. equat to 10% of each such owrdue amount or S100, whichever is g......... The partiea hereby agr.. that such late c:harge repraenII a lair and reasonable estimate of the COltS lessor willncur by reaeon of such late payment. Acceptance of such late charge by Leuor shaI in no event consttIute a waiver of LeIIee's ~ or Breach with respect to such overdue amount, nor prevent the exerelu of any of the other rtghta and remedies granted herMlnder. In the ...nt that a late charg. is payable hel'8Under, whether or not coHected, for 3 consecutive installments 01 Base Rent, then notwtthalandlng any provision of this Lease 10 the contrary, Base Rent shaU, at LeIIor's option. become due and payable quarterly In advance. 13.5 1ntarMt. Any monetary payment due Lessor hereunder. other than late chatgea, not receiYed by Leuor, when due as fo scheduled payments (such u Base Rent) or within 30 days following the date on which it was due for non-lCttec:Ued payment, shall bear mterest from the date when due, as to IcheciJIed payments, or the 3t st day after it was due u to non-1Chedu1ed payments. The interest ("Intereat"') charged shaM be computed at the rate 0110% per annum bulshall not exceed the maxlmwn rate aI10wed by law. Interest is payable in addition to the potentlallate charge provided for in Paregraph 13.4. 13.6 B....ch by I..ou<<. (a) Notice of Bruch, Lessor shall not be deemed in breach of this Lnae unless L.eaor fails within a .....onable time to perform an obligation required 10 be performed by Lessor, For purpose. of this Paragraph, a reasonable time shall in no event bel... than 30 days after receipt by Lasor, and any Lender whose name and addrass shaJl haw been furnished LaIM In wr1Iing for such purpose, of written notice specifying wherein SUCh obligation of Lessor hu not been pettoll.*'; provided, however, that If the nature of Lessor's obQgation Is such tha' more than 30 days are reasonably required for ill performance, then LeIIor shal not be In breach if performance is commenced within euch 30 day period and thereaft.r dlllgenUy pursued to completion. (b) Performance by Lon... on Be..1f of Lnaor. In the event that nelther Lessor nor Lender cures said breach wtthln 30 days after receipt of said notice, or if having commenced said cure they do not dHIgentfy pursue II to completion, then lnHe may elect 10 cure said breach: at L....... expense end offset from Rent the ectuaI and reuonabIe COlI to perform IUCh cure, provtded however, that such offset shall nol exceed an amount equal to the greater 01 one month.. Bate Rent or the Security OepoeIt, rueMng Lessee's rlghl 10 seek reimbursement from Leuor. Lessee shan document the cost 01 satd cure and supply said documentation to Lessor. 14. Condemnlitlon. If the Premises or any portion thereof are taken under the power 01 eminent domain or sold under the threat of the exercise 01 said power (collectively "Condemnation"), this Lease shall terminale as 10 the part taken as of the date the condemning authority takes title or pclIIIHIion, whichever fht occurs. I' more than 1 0% of the rentable floor area d the PremlHI, or mora than 25"- of Lessee's Fleaerwd Parking Spaces, If any, .... taken by Condemnation, Leuee may, 81 L.eaee'l optiOn, to be ....aaed in writing within 10 days after Lessor shaH have given Lasaee written notice of SUCh taking (or In lhe absence of such notice, within 10 days atler the condemning authority shall h.... taken poueuion) t.rminate this Le... .. (if the daI. the condemning authotiIy taka such posseaaion. II Lessee does not terminate this Lease in accordance with the foregoing. this LnIe shall remain in full force and effect as to the portion 01 the Premise8 remaining, except that the Base Rent shaD b. recIuc8d in proportion to the ntducUon in utBity of the Premises cauaed by such Condemnatton. Condemnation awards and'or payments shall be the property d LeIIor, whether IUCh award shall be made .. compensation for diminution in value of the l....hold, the value (if Ih. part taken, or for...-.ranee damages; provided, hOWlM!r, Ihat L.aaaae shall ba anIIIIad 10 any compan..tion for Le...... ra_ axpansas, loss 01 buIlnosa goodwll and/or Trada Fbcturel. without regard to whether or not this lHH Is t.nninated pursuant 10 the proviJlons of this Paragraph. AI Alterationa and Utility Installations made to the Premises by t.esHe, for purposes of Condemnadon only, shall be considered the property of lite Leaee and L..... ah.D bo anIIIIad 10 ony and all oompansaJlon which i. payable Illarolor. In tho .....nl that Illla L.aua Ia noIl8rminltad by reason _Of the Condemnation, l.esaor lhall repair any damage to the Premises caused by such Condemnation. 15. B~o_. 15.1 AddIlIonol CClmmloolan. In addition 10 tho paymonta owed pursuant 10 Pa_h 1.10 above. and unlaaa Laaaor and Ih. Sroka.. oIhorwiao agree In _g. Laaaor agraea lhal: (.) W L..... ..Id... any Option, (b) il L.aaaae acqUiros from Laaaor any rights to the P,.,.... or oIher prerniUl ownedPJ Lel80r and klcated wtIhin the project. (e) If L.eIIee rerraan in poIIIIIICln of the Prami.... wtIh tho oonaant or Laaaor, aIIar tho upil1ltion or IhIa Le_. or (d) W _ RanlIa Incrauod, _ by agraomant or operation of an ucaIatIon dauee herein, then, L.euor....1I pay Brokers a lee In accordance with the eeheduIe 01 the Bto.,. in .n.ea at the time 01 the IJC8CUIIon oIIhiILH... --- o 1999-ArMric:an InduJtrlII ....Ilatall AIaoctIUon J:W3El0 - FORM OFG-1'" 15.2 Aaaumptfon of Obligation.. Any buyer or transferee of l.eaor"s Interest in thlI L.eue shall be deemed to have assumed Lessors obUg-' hereunder. Brokenlshell be Ihln! party _ or lhe pravtalono 01 Porograplls 1.10, 15. 22 and 31. If lea80r fails to pay to Brokerallny amounts due lIS end for brokerage .... pertaining 10 this Leue when due, then IUCh emountllhall accrue Interest. In addition. if Lessor falls to pay any amounts to L.eIsee's Broker when duI. l.eaee'l Broker may tend written notice . to Lessor and Lessee of such fathmt and If Leuor fails 10 pay such amountl within 10 days after said notice, Lesaee ,hall pay aa1d monies to its Broker and offset such amounts against Rent. In addition. Leeaee'a Broker .hall be cIIemed to be a third party beneftdary of any commission agreement entered Into by and/or between Lessor and les8or'a Broker for the limited purpose of coIlecI:ing any brokerage.. owed. 15.3 ReprnentUlona and InclemnlUn of Broker Rel8tlon8hlpa. LeasH and Leuor nch represem and warranl to the other that It has had no dealings wtth any pet'SOn. firm, broker or finder (other than the Brokers, If any) in c:omection with this L.eaIe. and that no one other than said named Brokers ill entitled to any commluton or ftnder'a fee In connection herwwtth. Leuee and Leaor do each hereby egrHlo Indemnify, proloct, _ on<I hold the other henniouln>m end egeInol Uebllly lor _ or chargee which may be claimed by eny IlUCh unnamed broker, linder or other Similar party by reason of eny deaHnga or 8cIIons or the Indemnifying Party, including any COltS. upenaes, attorneys' tees reasonably incurred with respect thereto. 16. Eolo~ CarlIlI_. (a) Each Pany (as __pondlng Party")""1 within 10 days altar _n noIice 110m the other Pany (the "Requadng Pa~oxecuIe, acIolOWtodge and deliver 10 the Requesting Party a _I In WIlIng In form _Iar 10 the then ~ curronl .~ C_..... form p_ by the AmerlCen Induolrial Real EaI8.. _, pIua IlUCh _1IIonal InIormation. confirmallon and/or"'_ as may be roesonabIy roqu_ by the Requ-.g Party. (b) If lhe Responding Pany ohaU fall 10 _ or deliver IIle EIIoppot CattIIIca.. within IlUCh 10 day poriod. the Requesting Party may....... an Eotoppol Ce_ sl8llng IheI: (Q the Lease 10 In lull 10... and __ wIIt1out_n _,as may be repreeenl8d by the RequoslIng Pany, QI) IIlere ere no uncured _118 In the RequastIng Party'a porlormanca, and (III) W Leasor is the Requesting Party, not more than one month', rent has been paid in advance. ProapectIw purchuere end encumbral"lClH'e may rely upon lha Requesting Party's Eaioppa! Certiflcala, and the Responding Pany ahaII be estopped 110m donying the truth of lha facia contained In said Certificate. (c) If Leuor desi.... to finance, refinance. or aell the Prem.... or any part thereof, luHe and all Guarantors shall deliver 10 any potential lender or purchaser delfgnated by Lessor auch ftnancIaI atatemenIs as may be I'U8OnIIbIy rwquired by ,uch lender or purchaser, Including but not IImlled to Lessee.. financial atatemenla tor the put 3 yurL All auch hncIaI aternentI: IhaII be received by L.esaor and auch lender or purchaser In confidence and lIhaII be UMd only for... PurpoHll heleln .. forth. 17. _nnlon 01 a.-. The..rm "Leasor" as used herein ahaII mean lha owner or ........ allha _ In q.-n oIlha fae IiIIe to the Premises. or. If this is a sublease. of the Lessee" interest in the prior Ieue. In the evenI of . tranaf8r of Leaor'IIIIIe or lnter8st in the Premises or this ......, LeIaor shaA deliwr to the tran.,.. or auignH (In cash or by crd) any unuad Security 0ep0aIt held by Lessor. ExcapIas pIOYidecI .. Pal8greph 15, upon such _r or aoaignmenl and _ry oIlha Sacurtly Dopcalt, as _, the prior Leasor shall be relieYod 01 al liablllly with respocI to the obIig-'s a_ covonanta under lhIs Lease _ 10 be performed by the Lessor. SubieCt to the foregoing. the obIigationa and/or covenants in thIIlHH to be perb'n~ by the Lnsor shall be b1nc1ng only upon the Lessor as herainabove defined. 16. _b1Ifty. The Invalidity or any plOVialon or lhIs Le.... as cIeIormined by a ooull of oompoI8nt juriodictlon. shaD In no way aIfoc1 the validity of any other provlaion hereof. 19. Daya. Uniasa otherwtaa specifically Indicated 10 the oontrary, IIle won! "dIaya" as usad In IIlis Lea.. shall moan and rafar 10 calendar days. 20. UmltMlon on U.blllty. The obltgatlons of L.elsor under this L.... ahaIl not constitute personal obligations of Leasor or Its partners. members, dlredors, officers or shantholdens. and Lauee IhaR look to Ihe Protect. and to no other ..... of LellOr. lor the satiafaction of any liability of Lessor with respect 10 this Le.... and IhaII not aeek recou,.. againat Leuor's partnenl, members, clrectors, officers or ahareholders, or any of their pe~ aueta tor such utisfllc:llon. 21. Time of Euence. Time Is of the essence with rasped to the performance of all obligations to be perfonnecl or observed by the Parties under this lHse. . 22. No Prior or Other Agrwment8; Broker DlKlIlmer. Thls Lease contains all agreemente between the ParU.. with respect to any maner mentioned herein, and no other prior or contemporaneous agreement or underatandIng IhalI be effective. Leaor and Lessee each represents and wananta to the Brokers that it has made, and ia raIylng aoIefy upon, its own im/\Hllgatlon .. to the nature. quality, character end financial reaponslNlity of the other Party to thil Lease and as to the use. nature. quality and c::haracter of the Premiles. Brokers haw no responalblllly with reapoct thereto or with reopacIlO any dalaun or braacl1 hareoI by e_ Party. rnoliabilty Qncludlng court costs and attorneys' fHI) of any Broker with respect 10 negotiation, execution. detlvery or performance by either Leuor or Lnsee under this Lease or any amendment or mocIftcation hereto shall be Umiled 10 an amount up 10 the fee receiYed by auch Broker purauant 10 IIlls Lease; provided, however, lhalthe Iorego/ng Ilmll8llon on each Brokers Habllty shall nor be applicable 10 eny groas negligence or wilful mlaconcluct of such Broker. 23. NotIceI:. 23.1 Notice Aoqul_. All noIicos required or permitted by IIlIo Lease or appl_ law oholl be In wrtIIng end may be delivered in person (by hand or by oourier) or may be ..nt by regular. cel'tio.d or ~ mall or U.8. PoataI Service Exp.... MIll, with postage prepaid. or by facsimile tlanamlulon, and shaR be deemed sufficiently given If ........ct in a manner epeclfted in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Leue IhaII be that Party's add,... for delivery or mailing of notices. Either Party may by wnnen notice 10 the other specify a different ackkesI for notice. 8JCCII)t that upon Leuee'a taking poNIeasion of the Premises, the Premises shall constitule LeIlH's addrns for notice, A copy of all nolicn to Lnaor ,hall be concurrentty transmitted to such party or parties al such addresses as Lessor may from time to time hlrufter designate In writing. 23.2 Date of Notice. Any nolice sent by reglslered or certified mail, return receipt requested. IhaU be deemed given on the date of delivery shown on the receipt card, or If no delivery date is shown, the poetmark thereon, If Ant by regular meillhe notk:e shall be deemed given 48 hours after the same is addressed as required herein and mailed wlIh postage prepaid. Notices delivered by United States Express Mail or overnight cOUfief' that guarantee next day deUvery ahan be deemed given 24 hours after deliYery of the same to the Postal Service or courier. Notices tranlmltted by tacsimlle transmission or similar meana ahaU be deemed deIMtred upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delNenId via deUvery or mall. If notice is received on . Saturday. Sunday or legal holiday. It shall be deemed recetvecI on the next buaine.. day. 24. Waive.... No waiver by Leaor of the Oefaull or Breach of any term, CCM!II1ant or concllior,. hereof by L....., shall be deemed a waiver of any other term, covenanl or condition hereof, or of any subsequent Defaull or Breach by L.eaee of the aame or of any other term, covenant or condition hereof. Lnaor"a conaent to, or approval of, any act shall not be deemed to rwnder unneceaaary the obtaining of Lessor's consenllO, or approval of, any subS&qiJenI or sirrJlar U;: l:)y Li0i86. ,;,j ~i wr~trwad iW to..,,~:.,;,: ar. a&:0pp6: ~ enfor..e the PrcMlton or provisions of this La... requiring such consent. The acceplanC8 of Rent by L.euor.ha11 nOl be a waiver of any Defaun or Breach by Luue. Any payment by Lessee may be accepted by Lessor on account of moneys or damagee due Lessor, notwithstanding any qualtfylng statements or condlllons made by. leasH in connection lherewtlh. which auch 1lalemen18 .neuor ..POnditions shall be of no Ioree or effect whatsoeYer unless specificatly agreed 10 in writing by Lessor at or before the time of deposll of such payment. 25. Dlscl..ures Regarding The Nature ola Rea' Ealate Agency R..atl....hlp. (a) Whan ent.ring into a discussion with a rul estate agent reganlng a real estate transaclion. a Lessor or Lessee should from the outset undersland what type of ~ency relationship or repreuntation II has with the .gem or agents in Ihe transaction. lessor and'lassee _lodge being advised by IIle Brokers In IIlIo Il8nasc1lon, aslo/Iows: (i) Laaor'. AoIInt A L.easor". agent under a KIting agrwmlnt wfth the laaor 8CII as the agent for the LllIOr only, A Lassor". agent or subagent has the foIowing affirmative obHgaIfonI: To th8 I ......,. A tiduc;lary duty of UImOII canll. Integrity, honesty, and loyally in dulings with the LHsor. To th. l..auAAand thA I ---r. L Dllgent exerclle 01 rauonatH akIIa and cant in performance of lhe agent.. dull... b. A duty of honest and fair dealing and good faith. c. A duty to cIiIaIoH all facta known to the agent 1_ .1ttfoAmertGan InctuaIMI ..... .... AaaoGtallon PAGE 11 InitiIIt FORM 0fG01.... materially 8trecung the value or desirablilty of the property that are nol known to, 01 within the diligentanention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential inlormation obtained lrom the other party which does not involve the affirmative duties HI forth above. (ii) Leuee's Aoenr An agent can agree to act as agent for lhe Lessee only. In th... sltuationa, the agent is not the Lessor's agent. ......n if by agreement the agent may ,eceive compensation for servlcel rendered. etlher In run or In part from the Lessor. An agent acting only lor a Lessee has the following affirmative obllgatfons. To'" I AUAA' A fiduciary duty of uImost care. Integrity. honesty. and Ioyatty in dealings with the Lessee. To ths l.JIUlN IInd th. LeUOr': a. DilIgent..... 01 reasonable skill and care In performance 01 the agenrs duties. b. A dUly of honest and fair dealing and good faith. c. A duly 10 dacIose all facts known 10 the agent materially affecting the value or desirability of the property that are not known to, or within the dillgentdenlion and observation ' of. the Parties. An agent is not obItgated to reveal to either party any conlldenl1allnlorrnalion obtained from the other Party whtch does not involve the affirmative dutie8 881 forth above. . (III) Aosnt Reo.....ntinn 80th Lsuor 8M L8!I._ A real estate agent. lither acting direcUy or through one or more associate licenHS. can legally be the agent of both the Lessor and the L.essee in I transaction. but only with the knawIedge and consent or both the Lessor and the Lessee. In a dual agency sttuaflon. the agent has thelolowing affirm...... obligations to both the L.euor and the Lessee: a. A fiduciary dUly 01 utmost care. integrity, honesty and loyalty In the dealings wllh either LuIor or the lHsee. b. Other duties 10 the Lessor and the Lnsee as stated above In sli:Jparagraphl (I) or (i1). In repl'eUnting both lMIor and Lea... the agent may not without the expreu permiuion of the respectiye Party. discloae to the other Party thllt the Leuor wi. accept rent In an amount lea than thatlndlcatecl In the listing or that the Leuee is willing to pay a higher rent than that offered. The abcM dut6H of the agent In a real eslaN lnisaction do IlOt relMrw ia Leuor or Lessee fi'orn the respc.nsiblHty to proted: their own im.f8118. leHor and l8II8e ahould carefully read all agreements to usure that they adequately express their understanding 0I1he tranacUon. A ruI eatate agent is a person qualified 10 advise about real HIate. tr legal or tax advice is desired. conlUtl: a competent protnalonal. (b) Brcl<ers h..... no rnponoibllity with re'PoetlO any dofauft or breach ho"" by elIhor Polly. Tho liobllity (including court costs and anomeys' fees), of any Brokar with respect to any breach of dUly. elTOr or omislion relating to this Leaae shall not exceed the fee received by such Broker pursuant to this Laue; provtded. however. that the Ioregoing limitation on each Broker's lability shat! not be applcable to any groa negligence or willful misconduct of such Broker. (0) Buyer and Seller agree to identify to Brokers as .Confidential" any communication or information given Brokers that is considered by such Party to be oonftdentlal. 26. No Right To Holdover. Lessee has no right to retain pOllSelllon of the Premises or any part thereof beyond the expiration or termination or this Lease. In the event that Le.... holds over, then the Baae Rent shaft be increued to 150% of the Base Rent applicable immediately preceding the explratlon or termination. Nothing contained herein shal be construed u consent by Lessor to any holding over by Lossoo. 27. Cumulatl". R....edlu. No remedy or election hereunder shall be deemed exclusive but shall. whereY8r poasiJIe. be cumulative with aU other remedies at law or In equity. 28. COWMnts IncI Concltlonl:j Conllructlon of AgfMment. All provisions of this Leale to be observed or performed by Lessee are both COIIOIIOt1tlI end _. In conatrulng thllLoaso, all hoodlngs end tillo8 IfOIor tho _Ionco 01 tho _ only end sholl not be considered a part of this L.eaIe. When.....' required by the contnt.1he singular shan Include the plural and vice vel'lL Ths Lease shall not be construed as If prepared by one of the Partie.. but rather according to lis fair meaning u a whoM, as II both Parties had prepared II. 29. BlndJng Effect; Choice of Law. This Lease shall be bincing upon the Parties. their personal tepntaenlalives. SUctB"lIOrs and assigns and be governed by the laws of the State in which the Premises are located. Any HlIgatlon between the Parties hereto concerning this Lease aha! be Initiated in the county WI which the Premises are located. 30, Subordlnlltlonj Attornl"lllllltj Non-DI8turtJllnce. 30.1 Subordination. This LnIe and any Option granted hereby shaH be subject and IUbordlnate to any ground lease. mortgage. deed of trust. or other hypothecation or security device (coIll1C11v81y, "Security DlYlcej. now or hereafter plced upon the Premises. to any and all advancee made on the security thereof, and to all renewals. modlftcadons, and extensions thereof. Lelsee agrees that the holders 01 any such Security Devices (in thls Lease together referred to u "Lender"') shall ha.... no IlabDIty or obligation to perform any of the obligations of Lnsor under this tease. Any Lender mey elect to have this Lease and/or any Option granted hereby superior to the lien of Its Security Device by giving written notice thereof to l.Haee. whereupon thia Lease and such Options shaH be deemed prior to such Security Oevioe. notwithsIandng the relative dates of the documentation or r8C0rdatlon thereof. 30.2 Attornment. In the event that Lessor transfers title to the Premises. or the PremiHs are acquired by another upon the foredosure or termination of a Security 0evIce to which this Lease Is subordinated (1) lHHe shall, subJect to the non-dllturbance provisions of Paragyaph 30.3. anom to such new owner. and upon reqUNl. enter into a new lease. contIIlning all 01 the terms and provision. of this Le... with such new owner for the renwmder of the term hereof. or. at the election of such new owner, this Lease shall automatically become a new Lea. b81ween L.nsee and such new owner. upon all orb terms and conditions tter.of, to, the remainder of the tenn hereof. and (I) Leasor shall thereafter be relieved or any further obligations hereunder and such new owner shall ........ all 0/ 1ollOfl obIlgo11ons _. _1hoI luch now owner IhaJI not: (a) be IIabIo lor any oct or omI881on 0/ any prior lessor or with respect to events occurring prior to acqulslllon of ownership; (b) be SUbject to any 01Tsels or ~ wh6ch lMaee rrUght haw against any prior lessor. (c) be bound by prepayment of more than one month's rent. or (d) be liIbIeror the return of any security deposit plid to any prior '-eor. 30.3 Non-DIatu,....ce. WIth relp8CC to Security Devices entered Into by Lealar after the axecution of thII L.eue. Lessee's subordination of this l..eue shd be aubJecI to receiving a commerdally reasonable non-dlsturtiance """"*" (a ~. Dlaturtalnce Agroomonl") from tho Londor which Non-OisIulbanco Agroomonf provldu thaI ~'I p""o",;,,," or tho PTomiMs, end Ihis Loaso, Including any optiona to ext:Md the term heNof. wHI not be dillurbed 80 tong as leasH Is not in Breach taer.of and attorna to the record owner 01 the Pf'Ilm6Ma. Furthe,. within 60 dIyI aher the execution of this Lease. LesIor aharl UI8 ita commMdally reesonabIe efforts to obtain a Non.Dioturbanoo Agroomonf from tho holder 01 any pro-axIsting 8acurlty Dtl\IIco which io _ by tho P_. In tho..... that Lnaor is unable 10 provide the Non-Dllllurbanc;e Agreement within said 60 days. then Leuee may. at L.eseee's option, directly contact Lender and attempt 10 negotiate for the execution and detlvery 01 a Nort-Olsturbance Agreement. 30.4 Self-EHcuIIng'. The agreemenla contained In this Paragraph 30 shall be effective ~ the executton of any further documents; provided. however. that, upon written request from Lessor or a Lender in connection wtIh . ..... flnancJng or refinancing 01 the Premises. Le.... and Lessor shall execute such further writings as may be reuonably required to separately document any subordination. attornment ard'or Non-Oiaturbance Agreement pfOVide<l for herein. 31. Attorn.' F.... If any Party or Broket brings an action or proceeding inYOlvlng the Premlln whether founded in tort, contract or equity, or to declare rights hereunder. the Pf8Y8iIing Party (81 hereafter defined) In any such proceeding, action. or appaaIthereon. shall be entitled to rusonable attorneys' feet. Such fees may be awarded In the same suit or l'8CO'\Mrwd in a aepat8te suit. whether or not such action or proceeding Is pursued to decision or Judgment. The term, "prwvalnng hrty"' shall inctudII. wfthout limitation. a Party or Broker who su_11y _ or _oIStho relief soughl, oathe caso may be, _or by compromlso, so_, judgmsnt. or the abandonment by the other Party or 8rokar of lis claim or defense. The .nomeys' fHs award shall not be computed In accordance with any court fee schedute. but shall be such as to fully reimburse all anorneys'lees reasonably Incurred. In addition. Lessor shall be entitled to attorneys' fees. costs and expens8I incurred in the preparation and service 01 notion of Default and consultations in .l;Onnection therewtth. whether or not a legal action is subsequentty commenced In connection with such Default or resutting Breach ($200 is a reuonabIe minimum per occurrence for such services and consultation). 32. Lessor's AcceIs; ShowIng Premlsuj RepIIlrs. Lessor and les8o(s agents shall have the right to enter the Prtmi8es at any time, in the case of an emergency, and otherwtae at reasonabte times for lhe pUrpose of Showing 1M same to prospec;tlw purchase.... lenders. or tenante. and maldng such alteraaons,.repalra, Improvements or addlllons to the PrerniaN u LeaIor may deem neceuary or desirable and the erecting. using and maintaining of utilities. services. pipes and conduits through the Prwnilel ~or other preml8es as long .. there Ia no material adverM efIect to lnMe.. use of the PremiHI. AM auch dvltieI shall be without abIIIemenI of rent or Iiobllltylo~, L.oaaor may.. lIlY limo pIooo on tho PromIaao any oldnary "I'or __1IIgns end L.oaaor may during tho lost e mon1h8 of the term hereof pa on the PremI8a any ordinary "For Laue" signa. In addltion. L.esmr ahall hIIW the right to retain keyI: to the Initla.. o ,~ tnduItrtal AellIItIIe Aeeoctltion PAGE 12 ....... FORM OFG-l.- p~ and to unktck all doora In or upon the PremIus other than to fi1lN, vaults and ..feI, ancIln the cue of emergency to..,.., the P........ by ony rouanobIy __ ........ and any ouch ontry oholl not bo doomod 0 _ or _ ontry or dololMr of the PrerniMs or an eviction. lAuH wmv. any cherga for damage. or Injul1e& or interference wt1h lMaee's property or buIInna in c:on-.tho_. 33. AucIionL Leuee shall not conduct. nor permit to be conducted. any auction upon the Premises without Lnsor's prior written consent. Leesor shall not be obligated to exerciIe any standard of reaaonabIeneas In determining whether to permit an auction. 34. SIg... ~ _ not p_ ony oIgn upon tho PlOjec:I without Loosor's prior _ conoonl. 35. Tonnlnollon;......... U... opeciIicelly stoted oIhorwtoe In Wrl1lng by Laooor. tho wluntary or other sunender '" \his Loeoo by L.eIHe, the mutuel termination or cancellation hereof, or a termination hereof by Lnsor tor BI'NCh by Le..... IhaII autom8Ucally terminate any aubIeaH or ..... ..l8le In the Prwnl8ea; provided, however. that Leuor may efect to continue any one or ell existing aublenanciea. leHor's fdu~ within 10 clays fDIIowing any such event to eted 10 the contrary by written notice 10 the hoJder of any such ....., Interest. shaI CORItItuht L.eaor'I election to have such event conItiluta the termination oIlUCh intenteI. 36. CO_ ~.. oIherwlM p<ootdod """'in, who....r in Ihla Loeoo tho conoonl ofo Polly is roquired to on oct by or for \he oln., POlly. ouch conoonl 0110. not bo unrouanobly withheld or delayed. loosor'o octuoJ _ ..... end _ (including but not Umil8d.to arohitttc:l8', dorneyI', englnHra' and other C()fWultanle' fees) incurred In the conaideraUon of. or reeponI8 to, . request by Leaaee lor any Leaor coneent, including but not limited to consents to an Ulignment. . ~ or the preaence or use of a Hozonlouo _ra. sholl bo pold by ~ upon roooipl of on 1_ end oupporting ~ _. Louo~s oonsont to any acI, aMignment or ~ .hlllI not conatltute an IlCknowIedgment that no Default or Breach by L.nIee of thiI L.... ...., nor 011.. ouch oonoont bo _ s _ 01 any _ Oldotlng Dofou. or Brooch. _ .. moy bo oIhorwtoe opeciIicelly _ in wrltlng by Loooor 01 tho timo "'ouch conoonl. Tho "iluro to opocffy horoin any porticulor ..._ to Looso~o oonoont oI1oJl not procludo the imposition by Lessor at the time or conHnt of IUCh further or oIher conditions as are then reasonIIbIe wtth reference to the particular matter for whk::h coneent II being given. In the IY8nt that efther Party clHgfHs with any determination made by the other hereunder and reuonabIy requutl1hl reuons for such determination, the determining party shall furnish Its reasons In writing and In l1NlIOI'W)Ie dololl within 10 bUoinoso doya fol-.g ouell _,. 37. O"rIIntor. 37.1 ExecutIon. The GuarantOl1i, if any, ahaH each execute a guaranty in the Iorm most recentty publtlhed by the American InduolrioJ RooJ EQ10 AuocIollon. 37.2 Default. It IhaII conItitute a Default of the leu8e II any Guarantor fails or refuse" upon request to provide; (a) evidence 01 the execution of the guaranty, Indud6ng the authority or the party ligning on Guarantor'. behalf to obligate Guarantor, and tn the CMe 01 a corporate Guarantor, a c.rtIfied copy of a resolution of ... board of dlrectora authorizing the making of such guaranty, (b) current finoncioi ............. (e) on Eotoppol CorIIlIcoIo. or (d) wrltlon confirmotion lhot tho guaronly Is otiIlln .-. 36. a_ _on. ~ to poymont by ~ of tho Rent ond perfonnonce of oJi of tho ............. oondItions snd p_. on L.....'. part to be obHfWd and performed Wlder this Lease, Lessee shall have quiet poase:uton and quiet enjoyment of the Premia.. during the term hafeoI. 39. OptIon.. tf LnI8e is granted an Option, as defined below, then the following proviakms shall apply. 39.1 o.tInttlon. ""Opaon" ahaK mean: (a) the right to extend the term of or renew this Leue or to extend or r8n8'N any lease that Lessee has on OIh8r property of lMIor; (b) the right of firat refusal or liral offer to Ieue efther lhe Premises or other property of Lelsor; (e) the right to purchue or the right 01 find: reluaal to purchaH the Premtaes or other property 0' Leuor. 392 0pIl0ne PeraonalTo Ortglnlll Leuee. Any Option granted to Lessee in thil Lease Is pe~1 to the original Lessee, ond cannot bo uolgned or ..._ by onyono olhor then sold originoJ Lossee end only while tho originsi Lossee is in fuli possession of the Premises and, if requested by Leaaor, with Lessee cenlfylng that Lesaee has no IntentiOn of thereafter assigning or subletting. 39.3 Multiple Opdon.. In the event that LeIIee has any multipfe Options to extend or renew thi. Lease, a later Option cannot bo lIX8lOised uniesstho prior Options hove boon voHdiy ..._. 39.4 _<II _ on OplIono. (a) l.nHe shall have no right to exert:ise an Option: (I) during the period commencing with the giving of any notice of OefauM end continUing untD _ Oefa~ is cured, (Ii) during' tho poriod of lime any Rent i. unpoid (without rogord to wholher notice thereof is given Leasee), (Ill) during the time lesHe illn Breach of this Leaae, or (iv) in the 8Y8f1t that Le.... has been given 3 or more noticee of sepanlte Oetautt, whether or not the Defautls are cured, durtng the 12 month period immediately prececlng the exercise of the Option. (b) The period of time within which an Option may be exert:ised shall not be extended or enlarged by reason of Lessee's inability 10 exercile an Option becaU8e of the provisions of Paragraph 39.4(a). (e) An Option shaI termna. and be of no further force or effect, notwIthItandlng Le....'s due and timely exercise of the Option. iI. after such exerclae and prior to the commencement of the extended term or cornpkttlon of the purchase, (i) Le.... faila to pay Rent for a period of 30 dIys after such Rent becomes due (without any neceaaIty of Lessor to give notice Ihereof). or (ll) il Lessee oommlts 0 Breach of Ihlo Los... 40. -.mty M_u.... Lososo horeby llCknow\odgos Inolthe Ronl poyoblo to Louor horoundor doeo not incIudo tho coot 01 guard service or other security measu..... and that L.euor lhaI have no obligation whlltlc/ltWr 10 provide same. Lessee assumes all responsibility br the procectlon of the Premises. Les.... Its agents and Invilees and their property from the acts 01 third parties, In the event, however, that Leeeor shoukl elect to provide security .eMce8. then the cost thereof shall be an Operating Expense. 41. AeaerwtionL (a) Lnsor reserves the right: (I) to grant, without the consent or joinder of Lessee, 1UCh. ....manls. rights and dediCilUona Iha1 Lessor deems neceaaary, (II) 10 cause the recordation of pareeI maps and restiicUons, (ill) to create aridlor install new utility raceways. 10 long as such easements, rights. dedications, maps, restrictions. and utRity raceway. do not unreasonably Interfere with the use 01 the Premls88 by Lessee, LeSSOf' may also: change the name, addl'8Sl or title of the Building or Pra;ect upon at least 90 days prior wrtllen notice; p~ anc:llnstall. at Le...... expense, Building standard graphk:a on the door of the Premisu and such portions of the Common Areas II Lessor shall reuonably deem appropriate; grant 10 any lessee the excIuBiw right to conduct any business as long as luch exclusive right does not connie! with any rights expressJy given herein; and to place such signs, notices or displays as LaSlOI' reasonably deems necessary or advisable upon the roof, exterior or the Building or the Protect or on pate ligna in the Common Areas. Le.... agrMI to sign any documents reasonably requested by Lessor to effectuate such rights. The obstruction of Lessee'a view, air, or I6gtd by any structure erected In the vicinity of the Building, whether by Lessor or third parties, shall in no wfl'l affect this Lease or impose any IIabAIIy upon LAssor, (b) Lessor also reMrvn the right to move Lessee to other space of comparable sIZe in the BuHding or Protect. Lessor must provide at least 45 days prior wrIttan notice of such move, and the new apace must contain lmprovementa 01 co"li!arable quality to th0ti8 contained within 1M P...,m...., l.eSSOl shaU pay the reasonable out of pocket COII& thatLassti incur. .".1th Ktgard to $i.iCo'i relocation, Including the 8Xpenaea 01 moving and n8CHSary stationary revlaion costl. In no event, however. sheD Leuor be required to pay an amount In exceas of two months Bale Rent. Leasee may not b. relocated more than once during the term 01 this Lease. (c) Luaee shaH not:. (I) UN a repreeentation (photographic or otherwise) of the Building or pratect Dr their name(s) in ...connection with L.uHe'a buIineu; or (ii) sulf8r or permit anyone. except in emergency, to go upon the roof 01 the Building. 42. _s_ u_ P-. ilol any lime 0 dlsputs shoIi ori.o .. to ony amount or sum 01 monoy 10 bo poJd by one Perty 10 the other under the provisions hereof. the Party against whom tha obtigation to pay the money is asserted ahaII have the right to make paymenl 'Under protost' end .uelI poymont _ nol be regordod .. 0 voiuntary poymont ond thero shol survive tho right on tho port of said Party to Institute suit for recovery of such.sum. If It shall be adjudged thai there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or sO much thereof a, it was not legally required to pay. 43. Aulhor\1y. . (a) If either Party hereto Is a corporation, trust. limited liability company, partnel'lhip, or similar entily, each individual executing this lease on behalf oIauch enlfty represents and warrants that he or she iI duly authorized to execute and deliver this Lease In_ o 1tt1oAmer1c1ln Indultrilll ....1 eat.te AuochIUon PAGE 13 in_ FORM OF~1",," on Its behalf. Each party shall, within 30 days after request, deliver to the other party satisfactory evidence 01 such authority. (b) If this Lease.. executed by more than one person or entity aa MLeaaee., each IUCh person or entity shell be jOintly and severally liable hereunder. It is agreed that any one of the named Leasees shall be empowered to execute any amendment 10 this Lease, or other document ancIUary thereto and bind all of the named Lessees, and Lessor may rely on the same u if all of the named Lessees had executed such document. 44. Conflict. Any conftlol between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlJed bylhe typewrbn or _ p_.. 45. OtIIIr. Preparation of this Lease by eiUler party or their agent and submission of same to the other Party shall not be deemed an offer to tease to the other Party. Thil L.eaae is not Intended to be binding until executed and delivered by all Parties hereto. 46. Amendments. ThIs Lease may be modified onty In writing, signed by the Parties in Interest at the lime of the modification. As long .. they do not malerialty change L....... obligation. hereunder, L..... agrees to make. such reasonable non.monetary modlflcatione to this Leese as may be reasonabty required by a Lender In connection with the obtaining 01 normal financing or refinancing of the PremlHs. 47. Mumpl. PIrtfw. If more than one peqon or entity is named herein as either Lessor or Lessee, such muniple Parties shall have joint and 88\'eral ruponaibHity to comply with the tarms of this Lease. 48. _, 01 JuryTrtol. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACnON OR PROCEEDING INYOLVlNGTHE PROPERTY OR ARIBINQ OUT OFTHIB AGREEMEHT. 49. Meda.tlon Ind Arbitration of DlaputeL An Addendum requiring the Mediation aneVor the ArbitratiOn of all disputes between the Partin; andior 6rokele ariaif.g uull,)f thli Leala iJ is Ci is not attached to this Lease. SO. Americana with DI..b111t1u Act. In the event thai a8 a resuh of Lessee's use, or Intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises. Building, Project anli/or Common Areas, the Parties agree that such modifications, constNCtion or improvemen18 shaU be made at: 0 Lessor's expense 0 Lessee's expense. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED ANO VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTEO, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT ANO PURPOSE OF LESSOR ANO LESSEE WITH RESP~CT TO THE PREMISES. ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MAOE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIAnON OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARnES ARE URGEO TO: 1. SEEK AOI/ICE OF COUNSEL AS TO THE LEGAl AND TAX CONSEQUENCES OF THIS LEASE. 2. RETAIN AFPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONOITION OF THE PREMISES. SAIO INVESnGAnON SHOULD INCWOE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING ANO SIZE OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONOITION OF THE ROOF ANO OPERAnNG SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH OISABILITIES ACT ANO THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENOED USE. WARNING: IF THE PREMISES ARE LOCATEO IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISEO TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATEO. The parties hereto h...... U8CUI8d this Lease at the place and on the dates specified above their respective signatures. EX8CUI8d at: c:.:lln QA....n:ll....~.; n.... on: By LESSOR: 'l'ur.. li!n"'''''''''p...i ~""'~ T T r By: Name Printed: Greaorv Villanueva TIIIo: By: Nome Printed: TIlle: -: Telep/lone: ( ) FOCIimllo:( ) _ratiO No. ". - .1111 Arnwlcln 1ndun1aI....11!ItIIe AuocI8tIon Executed 01: on: By LESSEE: By: Name PrlntecI: rotlo: By: Name Printed: rltlo: Address: Telephone: ( Fecslmllo:( ) FodoratlD No. , .. PAGE'" - FORM OFQo1-M1 LESSOR'S BROKER: Attn: Address: Telephone Flicsimle No. LESSEE'S BROKER: Attn: Address: T_ _No. Thae farms .re atten modIfled to meet changing NqUlrwnents 011.. .nII needs of the Industry. AIwayI wrb or OIl tel make lUre you .. utIlztl!l the mOlt current form: Amertan InduItriaI A8aI EscMe A..DC,IIUo.n, 7DO South Flower...... Bulle 100. LoI Angelle, CA 10017. (213).7..m. . <<op,rtghtl-..,__RooI_' '..... I AIIr1g11lo__ No plot 01_ _..., 1Ie....--1n...,_ _~.. '"I,n In...... '. In_ . 1111-American Induatrilll ..... ~ MIIOCIation PAGE 1$ ...... FORM 0FQ0,... I.~- STANDARD OFFICE LEASE FLOOR PLAN .. . ./ -. ...... 01-""'-'_ ___... ...... FQR1IOFQ.I_ RULES AND REGULATIONS FOR STANDARD OFFICE LEASE - Dated: By and Belween GENERAL RULES 1. "t.._ shall not suffer or permit the obstruction of any Common Areas, including d"-Ys, walkways and 1laIrways. 2. Lessor reserves the rIQl:Il to _ access to any persons Lessor in good faith judges to be a threal to the oaIeIy and I8pldaIIon of 1he Project and lis occupants. . 3. LesHe shaH not make or permil any noise or odors thai annoy or _e with _1_ or persona havlng buslnesa within 1he project. 4. LesHe shaH not keep animals or birds within the Project, and shall not bring bicycles, I11llIDIql:Ies or other whlcles into areas not d8IIgnaIad as authorized tor same. 5. Lessee shall not make, suffer or permK liller exoept in appropriate receptacles for thai purpoee. 6. Lessee shall not alter any lock or install .- or addilionallocks or bolts. 7. Lessee shall be responsible for the inappropriate use of any tolel roome, plumbing or _ ullliIles. No Ior8ign subslanoea of any kind are to be inserted therein. 8. Lessee shall not deface the walls, partitions or other surfacas of the Premises or Project. 9. Lessee shall not sutler or permK anything in or around the Premises or Building thai oauses excessive vibralion or floor loading In any part of the Project. 10. FumKure, slgnllioant freight and equipment shall be moved into or oUl of the building only with the l.essor's IcnawIedge and oonaant, and aubjecI to such r_limltations, techniques and timing, as may be designated by Lessor. Lessee shall be l'MpOI_lor any damage totha 0IfI0a BuIldIng Project arising from any such activity. 11. Lessee shall not employ any service or contractor for selVices or work to be performed in the BuHdlng, exoept as approved by Lessor. 12. Lessor reserves the right to cIooe and lock the Buldlng on Saturdays, Sundays and lIulIding Holidays, and on _ days between the hours of P.M. and _ A.M. of the following day. If L..... uses the PremiHB during such ~, L.eaee IhaII be reeponelble lor MCUIlI\y locking any doors K may haw opened for entry. 13. LesHe shall return all keys at the termination of lis tenancy and shall be responsible for the OOSI of replacing any keys thai are lost. 14. No window coveringe, shades or awnings shall be installed or used by LesHe. 15. No La...., empIoyse or invitee shall go upon the roof of the BuDding. 16. Lessee shall not sutler or permK """"'ing or carrying of lighted cigars or clgerettes In areas ~ deslgnaled by Lessor or by appI_ gowrnmental agencies as non-smoking areas. 17. Lessee shall not use any method of healing or air conditioning _than as provided by Lessor. 18. LesHe shall not install, maintain or operate any _ding machines upon the p_ wllhoUll.essor's wrIIten oonaenl 19. The Premises shall not be used for lodging or manufacturing, cooldng or food preparation. 20. Lessee shall oornply with all safely, fire protection and lMlCUation regulaliona __ by Lessor or any appI_ gowmmentaI agency. 21. Lessor reserves the right to waive any one of these rules or regulelione, and/or as to any perticular l.essee, and any such waiver ahaII not con8lilute a waiver of any other rule or regulation or any sUbeequenl applicallon thereof to such L.eaee. 22. Lessee assumes all risks from theft or vandalism and agrees to keep Ita Premisee locked as may be required. 23. Lessor reserves the right to make such other reasonable rules and resutetions as H may from lime to lime deem necessary for the appropriate operation and safely 01 .. PtliljecI and Its occupants. Lessee agrr~,.~" by lheee and such rul.. and "'llI. 'T~".' PARKING RULES 1. Parking areas shall be used only for perking by whicles no longer than full size, _ autDrnoblles herein oalled "Parmilled Size Vehicl.... Vehicles other than ParmHted Size Vehicles are herein referred to as "Owlrslzed Vehicles" 2. Lessee shall not permK or allow any Whicles thai belong to or are oontrolled by Lessee or Lessee's employsM, suppllenl, shippers, customers, or inviIees to be loaded, unloaded, or parked in areas other than those designated by Lessor for such actIvIIIes. 3. Parking _rs or Identification _ shell be the property of Lessor and be retumed to Lessor by lha _ _ upon termination of the holde(s parking privileges. l.essee will pey such ~acement charge as is reaeonably __ by Lessor for the Iou of such d_. 4. Lessor reserves the righl to _ the sale of monthly idenlffioalion devices 10 any person or enlIty thai willfully refuses to oornpIy with the applioable rules, regulaliona, Iews and/or agreemen1S. 5. Lessor reserveslha right to relocate all or a pari of parkil1G,spaces from tIoor to tIoor, within one floor. and/or to _bIy ~I oIIsita Iocation(s), and to reasonably allocate them between oornpacl and _ slze speoes, as long.. the same complies with appIioabIe Iews, ordinanoes end regulations. 6. Usenl of the perldng area will obey all posted signs and park only In the a.... designated for Whicle perking. 7. Unless _ ins1ructed, _ry person using lha perking area Is required to perk and lock his own whicle. Lessor will not be responsible for any damage to _, injury to peIlIOns or Ioes of property, all of which risks are assumed by 1he party using the perking area. . STANDARD MULTI-TENANT OFFICE LEASE - GROSS AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION I ~$f, 1. Basic Provisions ("Basic Provisions"). 1.1 Parties: This Lease ("l.e8se"), dated for reference purposes only May 31. 2002 and between Tl1G iut9rprii9i # T T <: . _ . is made by ("LeHor") and City Qf lau 'J:l:itI'gArdi.....Q. ('..ltH.......' ~ T....t:-o.........ot"n....u!.' A-F-F<!Iof....o (............). (collectively the "PartIN... or indivldU8lly a "Party"). 1.2 (a) Premises: That certain portion of the Project (as defined below). known as Suite Numbers(s) 1 n~ , _ IIoor(s), consisting of approximately -4 ~a rentable square feet and approximately useabIe square feel ("Premises"). The Premises are locateil' : 468 West 5th Steet . in the City of ililR lh.rllar~iRQ. ,Countyof SaR lh.rllar-:1".....n ,Stateof ('I~l..-F^"".....-I<!ll ,withzipcode Q?.6.01 . In addnion to Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non-exdusIIIlI rights to the Common Areas (as defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any rights to the roof. the exterior walls, the area above the dropped ceilings. or the utility raceways of the building conteining the Premises (.BuRding'') or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located, along with all olher buildings and improvements thereon, are herein collectively refenred to as the .proJect." The Project consists 01 approximately rentable square feel. (See also Paragraph 2) 1.2 (b) Parking: na unreserved and ....!!!- reserved vehicle parking apacas at a monthly cost 01 $ _ per unreserved space and $ _ per reserved space. (See Paragraph 2.6) 1.3 Term: five (5) yearsand zero (.Commencement Date") and ending 11/30/06 (See also Paragraph 3) 1.4 Early Pos_lon: (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $ ~ 1 QQQ per month ("Base Rent''), payable on the commencing '. (See also para= 4) o II this box is , are provisions in this Lease for the Rent to be adjusted. 1.6 Le_'s Share 01 Operating Expense Increase: percent ( _ %) (.........'s Share"). Lessee's Share has been calculated by dividing the approximate rentable square footege 01 the Premises by the Iolal approximate square footegs of the renteble space contained in the Project and shall not be subject to revision except in connection with an actual change In the size 01 the Premises or a change in the space available for lease in the Project. 1.7 Base Rent and Other Monies Paid Upon Execution: (a) Bese Rent: $ lor the period (b) Security Deposit: $ ("Security Deposlf'). (See also Paragraph 5) (c) Perking: $ for the period (d) Other: $ for (e) Total Due Upon Execution 01 this LelIse: $ Agreed Use: Cultural Exhibit space and offices months (.OriglnaITerm'') commencing 12/01/01 (.Expll'ldlon Dete"). (.Early ~Ion Date..). 19t- day 01 each month " 1.8 1.9 Base Year; Insuring Party. The Base Year is Paragraphs 4.2 and 8) 1.10 Real Estate Brokers: (See also Paragraph 15) (a) Representation: The following real estete brokers (the "Brokers") and brokerage rel8lion8hips exist in this transaction (check applicable boxes): o o o . (See also Paragraph !I) Lessor is the "Insurlng Party". (See also represents Lessor exclusively ("l.e8sor'e BIOker"); represents Lessee exclusively (.......'s BroIaIr"); or represents both Lessor and Lessee ("Duel Agency"). (b) Payment to Brokers: Upon execution and delivery 01 this Lease by both Parties, Lessor shall pay to the Brokers the brokerage lee agreed to in a separate written agreement (or if there is no such agreement, the sum 01 or _ % 01 the tolaI Base Rent lor the brokerage services rendered by the Brokers). 1.11 Guarantor. The obligations 01 the Lessee under this Lease shall be guaranteed by ("Guarantor"). (See also Peragraph 37) 1.12 Business Hours lor the Building: _ a.m. to _ p.m., Monday through Friday (except Building Holld8ys) and_ a.m. to _ p.m. on Saturday (except Building HOlidays). "Building Holidays" shall mean the dates 01 observation 01 New Year's Day. President's Day, Memorial Day, Independance Day, Labor Day, Thanksgiving Day, Christmas Day, and . 1.13 LeHor Supplied Services. Notwithstanding the provisions 01 Paragraph 11.1 , Lessor is NOT obligated to provide the lollowing: [] Jannorialservices o Electricity o Other (specify): 1.14 Attachments. Attached hereto are the loIlowlng, all 01 which constitute a part 01 this Lease: o an Addendum consisting 01 Paragraphs _ through _ ; o a plot plan depicting the Premises; o a cunrent set 01 the Rules and Regulations; 66Ill-~-D:IO NlIO.I SIlI!l!UI ~ 3evd UOIl8'OOSSY ~ ISSl:Ilsl4lnpul ue:ll....wv-&66~ 0 SIBmUI :SBaJV uowwoo 94110 ~lId II 9q OII09!OJd 94110 S9IJBpunoq 941 ep!Il"O PUIlI J94lO 9lBUll!seP oJ. 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IU9l:1 &SBS 4Ol4M UO 9lBP 941 uo '9IB91 S!4110 WJ91 941 jO J9PU!IIW9J e41 6uIJnp 4lUOW 40Be ',wd 01 pel1l6!1qo 9q 1184S 89IS91l/lq 9JnllPuedlg IBP.deO 400S JOj ,(JIISSeoeu SPUIlj 941llO\J811pB IIB4S JOSS91 :SMOfIOj sa 9JnP,P\l9dX3 IIll!deO 40ns 10 1100 94191Bool18 11114S 89IS91 pUll J0SI91 U941 '(SUORBO!J!POW "!WI!9I pelllPUllW ^tIBlU9WUJ9/l06 'SIl 4001) 99SS91 ~ IaSfW9Jd 941 10 esn 9nb!un pUll O!JJOeds 941 10 IInSeJ eUI IOU Sf 9JnuDuedx'l IlllIde"l uone JI (ol ., - STANDARD MULTI-TENANT OFFICE LEASE - GROSS AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 1. Basic Provisions ("Basic Provisions"). 1.1 Psrtles: This l.ea8e ("LAB....). dated for reference purposes only Ma V 31. 20 0 2 and between TVi': 'Rnt-prpri QP~ r r.T.r ._. is made by and City of San B9rn.rdiuQ. Cul~ur.l ~ IRtorRati9RAl Jffair~ ("LesllO''') ("L.eae."), (colIectIwIy the "Psrtlee", or individudy a "Psrty"). 1.2 (a) Premi_: That certain portion of the Project (as defined below), known .. Suite Number8(s) 1 n r; , _ ftoor(s), consisting 01 approximately 1 n n n rentable square feet and approximately uaeabla square feet ("pre1llta.."). The Premises are located at: 46R W....t: r;th l'ltr....t: . In the City 01 ~~n Rarn::ll....n;~ountyof S.." ihi....Aar~iR.o ,Stateof C'alifQrAia ,withzipcode ,.t.;4Q1 . In addition to Lessee's rights to use snd occupy the Premises as hereinalter specIfted, Lessee ahaII haw IlOIHIXCI rights to the Common Areas (as defined In Paregraph 2.7 below) as hereinafter apecllied, but shell not h_ any rights to the roof, the merior walls, the area above the dropped ceilings, or the utility raceways 01 the building containing the Premi... ("BuIlding") or to any other buildings in the Project. The Premises, the BuDding, the Common Areas. the land upon which they are Iocatsd, sIong with all other buildings and improvements thereon, are herein colIectNely referred to as the "Project." The Project conslsIs 01 approximately rentable square feet. (See elso Paragraph 2) 1.2 (b) Psrklng: n" unreserved and -J:la.- reserved vehicle parking apaces at a monthly OOIt 01 $ _ per unreserved space and $ per reserved space. (Sse Paragraph 2.6) 1.3 Term: five 151 yearsand zero months("OrlglnaITerm")commenclng 11/01/01 ("Commencement DlIta") and ending 1 n I < 1 I n ~ ("l!xpIretIon DlIta"). (Sse elso Paragraph 3) 1.4 Early ~Ion: ("Early Ponasion ~"). (See also Paragraphs 3.2 and 3.3) 1.5 Bue Rent: $ 1 n n n n n per month ("Bas. Rent"). payable on the 1 .. to day 01 each month commencing ....ll..LO \(.01 . (See also para'l:~ 4) D II this box Is c:Ii8Q/ea. re are provisions In this l.ea8e for the Rent to be adjuated. 1.6 L.eae.'s Shere of Operetlng Expert.. Increa..: percent ( _ %) ("L.eae.'s Sherej. Lessee's Share has been calculated by dividing the approximate rentable squara footage 01 the Premises by the tolaI approximate square footag. 01 the rentable space contained in the Project and shall not be subject to revision except In oonnectlon with an actual change In the size 01 the Premises or a change in the space available lor Iaue In the Project. 1.7 Ba.. Rent and Other Montee Psld Upon ExecutIon: la) Base Rent: $ fortha pariod (b) Security Deposit: $ ("SecurIty Depoalt"). (S.. sIso Paragraph 5) (c) Psrklng: $ for the period (d) 0tMr: $ for (e) TofIIl Due Upon Execution of this Lees.: $ 1.8 AgreedU..: Cultural exhibit soace and offices represents llIsaor exclusively ("LeaIIOr'. Brokar"); represents Lessee rrxclusNely ("L.eae.'s Brobrj; or represents both llIsaor and ~ ("DuIII Agency"). (b) P8yment to Broke,.: Upon execution and delivery 01 this Lease by both Partiaa, Lessor shell pay to the Brokers the brokerage lee agreed to in a separate written agreement (or" there is no such agreement, the sum 01 or _ % 01 the totel Base Rent for the brokerage services rendered by the Brokers). 1.11 GlIIIl'llntor. The obligations of the Lessee under this Leue shall be guaranteed by ("Guarantor"). (See also Paragraph 37) 1.12 Business Hou,. for the Building: _ a.m. to _ p.m., Monday through Friday (except Building Holidays) and____ a.m. to _ p.m. on Saturday (excapt Building Holidays). "Building HoIldIys" shell maen the dates 01 obaervalion of NewYea~s Day. President's Day, Memorial Day, Independence Day. Labor Day. ThankagMng Day, Christmas OIly, and . 1.13 Lessor Suppllecl Servtoes. Notwithstanding the provlalons 01 Paragraph 11.1 , u.- Is NOT obligated to provIda the following: D Jan"oriaI service. D Electricity D Other (specify): 1.14 Attech_. AItlIched hereto are th. following. all of which constitute a part 01 thle Lease: D an Addendum consisting 01 Paragraphs _ through _ ; o a plot plan depicting the Premises; D a current set 01 the Rules and Regulations; r-'l _ ...._....._ . _...._~. 1.9 Ba.. Vaer: Insuring Party. The Base Year Is Paragraphs 4.2 and 8) 1.10 Rael Estate Broke,.: (See also Paragraph 15) (a) Repreaantatlon: The following real estate brokers (the "Brokers") and brokerage relationships exist In this transaction Icheck appllcsble boxes): D o D . (See sIso Paragraph 6) . Lessor is the "Insuring PsrtyH. 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The Commencement Date, Expirallon Dale end Original Term of Ihls lease are as specified In Paragraph 1.3. 3.2 ElIr1y ~Jon. If leasee totaUy or parttally occupies the Premises prior to the CO_men! Data, the obligation to pay Base Rent shall be abated for the period of such early possession. All other lerms of this Lease (including but not Hmltad 10 the obligations to pay leasee's Shere of the Operating Expense Increase) shall, however, be in effect during such period. Any such early possession shall not effect the Expiration Date. 3.3 Delay In ~Ion. Lessor agrees 10 use its best commerclelly reasonable efforts to deliwr possession of the Premises 10 lessee by the Commencement Data. If, despite said efforla, Lessor Is unable to deliver po....sion by such date, Lessor shall not be subject to any IIabHity therefor, nor shall such failure affect the validity of this lease. lessee shaI not, however, be obligated to pay Renl or perform its other obllgallons until Lessor deHwrs posselllon of the Premises and any period of rent 8b8tament thet lessee would otherwise have enjoyed shall Nn from the data of deliVlllY of flollassion and continue for a period sq.lto whalleasee would ~erwlse have enjoyed under the terms hereof, but minus any days of delay caueed by the acta or omissions of Lessee. If possesaIon Is not deliwred within 60 days after the Commencement Data, as the same may be IIXlat ided under the tarms of any WQrk Leiter executed by Parties, Lksee may, atlle option, by nollee In writing within 10 days altar the end of such 60 day period, cancel this lease, In which _ntthe Parties shall be discl18lged from all obligations hereunder. If such wrIltan nollce Is not raoeJwd by lessor within said 10 day period, leasee.. right 10 cancel shalllermlnate. If possesaIon of the Premises Is not delillered within 120 dllY8 after the Commenoernanl Dala, this lease shall terminate unless other agteemenls ... reached beiwMn Lessor and Lessee, in writing. 3.4 ...... CompllMce. Lessor .haIl not be required to deliller fl 0 .....Ion of the Premises to lessee unllllessee complies with its obligation 10 provide evidlInoe 01 insuranc:e (Paragraph 8.5). Pending deMry of such evldenoe, Lessee shall be required to perform all of Ile obligations under this lease from and attar the Start Data, including the payment of Rent, notwithstanding lessQl's election to withhold possession pending -'pt of such evIdenos of lnauranoe. Further, if Lessee Is required to perform any other conditions prior to or concurrent with the Start Dale, the Start Date shall occur but lessor may elect 10 wtlhhoId possession until such conditions are satisfied. 4. Rent. 4.1. Rent Deftned, All monetary obligations of Lessee 10 Lessor under the terms of this lease (except for the Security DeposR) are deemed to be rent ("RMIt"). 4.2 Opentlng Expenee In_, Lessee shall pay to Lessor during the term hereof, In addition to the Base Rent, lessee.. Share of the amount by which all Operating Expenses for each Comparison Year exoeeds the amount of all OperatIng Expenses for the Base Year, such excess being hereinafter ntfemtd to as the "Operating Expenee 1ncr....H, In accordance with the following provisions: (a) "..... Veer" is as specified In Paragraph 1.9. (b) "Compllriaon Veer" is dsfined as each calendar year during the tarm of this Lease subsequent to the Base Year; provided, howewr, lessee .haIl haw no obIigstion to pay a .hare of the Operating Expense 1___ applicable to the first 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay lessee's Share, notwilhslanding they occur during the first tweJw 12 monlhe). Lessee" Share of the Operating Expet)se Increase tor the first and lest Comparlaon Years of the lease Term shell be prorated according to that portion of such Comparison Year as 10 which lessee is reaponsible for a ahare of such increase. (e) "OpentIng Expen_H Include all costa incurred by Lessor relating to the ownership and operation of the Project, calculated as if the Project was at taast 95% occupied, including, but not IImRed to, the IaIlowing: (i) The operation, repair, and maintenance in neal, clean, safe, good order and condition, but not the replacement (see subparagraph (g)), of the following: (as) The Common Areas, including their 8urfaoes, OCMtrlngs, decoralille llema, carpets, drapes and window cowrIngs, and including parking areas, loading and unloading areas, trash areas, roadways, skIewalks, walkways,IlaIIWlIYS,.parkways, drlwways, landscaped areas, striping, bumpera, irrigation systems, Common Area lighting facilities, bulldlng exterIons and roofs, fences and gales; (bb) All healing, air conditioning, plumbing, electrical systems, life safely equipmenl, communlcalion systems and other equipment used in common by, or for the benefit of, lessees or occupanta of the Project, incluclng elevators and escalators, tenant directories, fire detection systems including sprinkler .ystem meintenance and repair. (ii) Trash disposal, janitorial and security services, peal control services, and the costa of any anvironmeniel inspections; (iii) Any other service to be provided by Lesaor thai is e1l8Whera In this Lea.. ataIed to be an "OperatIng Expense'; (Iv) The cost of the plllmiums for the Il18uranoe policies maintained by Lessor pul'8U8l1t to paragraph 8 and any deductible portion of an Insured loss conceming the Building or the Common Areas; (v) The amount of the Real Property Taxes ~ by LeSlor pursuant to paragraph 10; (vi) The cost of water, sewer, gas. electricity, and other publicly mandated aervlces not sep8l8leJy melered; (vii) Lebor, salaries, and applicable fringe beneflle and costs, matarlals, 8upplles and tools, used in maintaining and/or cleaning the Project and accounting and management fees allrlbutable 10 the operation of the Project; (viii) The cost of any Capital Elcpenditure to the Building or the Project not OCMtred under the provisions of Paragraph 2.3 provided; howewr, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required 10 pay more than lessee's Share of II144lh of the cost of such Capital Expenditure In any gillen month; (ill) Replacement of equipment or implO\l8ments that hlMl a uselullfa for accounting purposes of 5 years or less. (d) Any Item of Operating Expense that is specifically attrtbutabte to the Premises, the BuHding or to any other builclng in the Project or 10 the operation, repair and maintenance thereof, shall be allocated entirely to 8Uch Praml_, Building, or other building. Howewr, any such ttem that is not specificaliy attributable to the Building or to any other buDdIng or 10 the operation, repair and maintenance thereof, shall be equitably allocated by lessor to all buildings in the Project. (e) The inclusion of the improvements, facilities and .._ set forth In Slbparagraph 4.2(e) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the seNioss, or Lessor has agreed elsewhera in this lease to provide the same or some ollhem. .' lItI8-l"'O:lO 11110:1 _Ul .3~ uopepony 8IW4SlI JWlIl8l4lnpul u8:llJllWY-886l 0 SI8JUUI '8S881ll!1I1 10 oo!JllU!Wl81 JO lIOIllUldxe 8tIl 8I\fNns IIllIIs putI '1UlIIll8IlIllR JOJPU8 _0188J '\JOfI8IP8W8l '1_8J .UOll"IlpS.....IIO lSOO &llI 'OJ P8llWU "" IOU I/Kl 'BpnFlUIII8IIS 'SIU_nbel::l alllllClllddy lIlll .<IIP8lInbeI \IIIIlM pull .. '8Uof1BDgqo s,JOSS81 '8elMqdwa JO ll\Iletle SII 'JOlI881 jO lllI1PUo:lII!W JlllIlfM JO lIOlIeIlnlleu I80IIl ilA .<II IllI8I*l ... 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B6U811O l8fJ8l8w e Bl8POwwoooe 01 P8puewe Bq BSn P88J5v 811I PlnollS "1U81::1 ena 18l11UI 8llI 01 BJoq lISodeo ~noes le!llUI alii Ie IUBl::l eseS pas88JOU! lIIlI 01 uOfIJodOId Bwes Bill JBBq sBWllll8le Il8l1S IlsodeQ ~lInoes 811I 10 IUnowe 18101 alii I8I11 os JOS881l111M sa!uow 18uOfIIppe I!sodep 'JOise, wOJj IS8nbeJ Ual1!lM uodn '!l8US 89n8"1 'ACRII"1 tnlJ1ln uu., Atn flhllln" __........ 1I,B.1 .I!!Iol!'nro _.. II .__ ....... L... __n_I...... "'__u_ .._. _... __ u__..I__ r_______ _._~ '. (f) Investigations and Remecliatlons. Lessor shall retain the responsibility and pay for any investigations or remediation measures required by gowmmental entities having jurisdiclion with respect to the exialence of Hazardous Substance8 on the Premises prior to lessee's occupancy, unless such remediation measure Is required as a result of Lessee's use (including 'Alterations'. as defined In paragraph 7.3(s) below) of the Premises, In which lMlfIl Lessee shall be responsible for such payment. lessee shsll cooperate fully in any such sctivities st the request of Lessor, Including allowtng lessor sncI Leaaor's agents to have reasonable access to the Premises at reasonable times in order to carry out lessor's InwatIgatlII8 sncI mnedIaI responsIbIHtles. (g) I.eHorTermJnatlon Opllon. If a Hazardous Substance CondtIon (_ Paragraph 9.1 (e)) occurs during the term of this Lease. unless Lessee Is legally responsIlle therefor (In which cass Lessee shaH make the Inv8l11gat1on sncI rwmedIalion ther80f required by the Applicable Requirements snd this leSle shall continue in full force sncI eff8ct, but subject to ,--,"S rights under Paragraph 6.2(d) and Paragraph 13). lessor may. st lessor's option. either (I) ImI88tIgste sncI remediate such Hazardous Substance Condition, If required, as soon as reasonsbly possible at lessor's expenaa, In which _nt lhIa leeH .han COlllIIue in full force sncI effect, or (Ii) If the estimated cost to ramedlate such condition exceeds 12 times the then monthly Base Rent or $100,000, wh~r Is grester, give wrilIen notice to Lessee. within 30 days altar receipt by Laaaor of knowledge of the occurrence of such Hazardous Substance Condition. of lessor's desire to terminate this Laase as of the date 60 days foIowtng the date of such notice. In the _t lessor aleets to gille a termination notice, Lessee may, within 10 days thereaftar, gille wrtttan notice to lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the th.Ji, monthly Base Rent or $100,000, whlch_r Is greater. Lessee shall provide lessor wlth said funds or 8atilIfaclory assurance thareof within 30 days 1oI10\V1ng such comrnllment. in such _nt, this Laase shaD continue In full force sncI effect, and lessor shall proceed to make such remediation as soon as reasonably pos8lble after the required funda are available. If Lessee does not gille such notice and provide the required funda or assurance thereof within the time provided. this lease shall termlnaIe as of the date specified In Lessor's notice of termination. 6.3 ....... Campl.nee wllh AppIleeble Requlramentll. Except as otherwise provided In this lease. Lessee shall. at Lass..'s sole expensa. fully, dillgenUy and In a timely manner, materially comply wlth .. Applicable RequIrements. the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of ~ engIMera and/or consultants which relate in any manner to the Premises, wlIhout regard to whether said requirements are now In eff8ct or become effectMt altar the Stert Date. Lessee shall, within 10 days after receipt of Lessor's written request. provide lessor wlth copies of all permits sncI other documents, and other intormation evidencing Lassee's compliance with any Applicable Requirements specified by lessor, and shall immediately upon receipt, notify Lessor in writing (wlth copies of any documents irlIIoiwd) of any thl_eued or actual cIalm. notice. citation, warning, complaint or report pertaining to or involving the fallura of les_ or the Premisee to comply with any Appllceble Requirements. 6.4 lnapactlon; Compll8nce. lessor sncILaaaor's .Lender" (as defined in Paragraph 30) and consullants shall h_ the righl to enter Into Premises at any time, in the case of an emergency. end otherwise at reesonable times, for the purpose of Ins pee illig the concIition of the Premises and for wrlfying compliance by les_ wlth this lease. Tha cost of any such Inepections shall be paid by Lassor. unless s violation of Applicable Requirements. or a Hazardous Subetance Condition (_ paregraph 9.1e) Is founcI to exist or be imminent, or the inspection Is requested or ordered by a g<MImmental authorfty. In such cue, lesaee .haIl upon request relmburae lessor for the cost of such InspecIion. SO long as such lnapection Is reasonably related to the violation or contamlnellon. 7. Maintenance; RepllllS; UtIlity lnatall8tIone; TnI. FIxturea and AIWrslIon.. 7.1 ....... Obligations. Notwithstanding lassor's obIIgaUon to keep tha Prem_ In good condllion sncI repair, Lessee shall be reaponsIbIe for payment of the cost thereof to Lasaor as additional rent for that portion 01 tha cost of any maintenance sncI repeir of the Preml.... or any equipment (wher8\I8r located) thet seN8ll only Lessee or the Premises, to the extent such cost Is attributebIe to causes beyond normal wear and tear. Lassee shall be responsible for the cost of painting. repairing or replacing waD OCMIringlI. and to repair or replace any ImplO\l8ments wfth the Premisas. Laaaor may, at ita option. upon reasonable notice. elect to h_ Less.. perform any particular such maintenance or repalrs the cost of which Is otherwise Lessee's reeponsIblllty hereunder. 7.2 ~s Obligation.. Subject to the provisions of Paragraphs 2.2 (CondItion), 2.3 (CompHance), 4.2 (Operating Expenses). 6 (Use), 7,1 (less..'s ObtigatIons), 9 (Damage or Destruction) sncI14 (Condemnellon), lessor. subject to relmburaement pursuant to Paregraph 4.2. shall keep in good order. condition and repair the foundations. exterior we", structural condition of Interior bearing walls, exterior roof, fira sprinkler system, fire alarm and/or smoke detection aystema, fire hydrants, sncI the Common Areas. Lessee expressly waiws the benefit of any stafute now or hereaftar In effect to the extent tt Is Inconsistent with the terms of this Lease. 7.3 UtIlity 11I8lII11atlona; TnI. F1xtu,..; -'"-Ion.. (a) DefInitions. Tha term .Utlllty 11I8lII11atlona" refars to all fIClor and window OCMIringa, ail lnes, YlICUum lines, power panels, electrical distribution. security sncI fire plOteclion systems. communication cabling, lighting fixtures. HVAC equipment, and plumbing in or on the Premisee. The term "T11lde FIxlu,.... shall mean Less..'s machinery sncI equipment that can be removed without doing material damage to the Premlses. Tha term .AIl8r8IIcIM. shall mean any modllIcatIon of the 1mpllMl/1llll1ls, ofhar than Utility Installations or Trade FDCtures, whather by addition or delelion. ...... Owned Abratlon. IIIIA'or UlIIIty Inlllllllatlons" are defined as Anerations and/or Utility Installations made by Lessee that are not yet owned by lessor purauant to Peregraph 7.4(a). (b) eon-. Lessee shall not make any Alterations or Utility Instanstlons to the Prem_ without Lassor's prior written consent. Lessee may, hOW8Wlr, make non-structural Utility Installations to the Interior of tha Preml8ee (exdudlng the roof) wlthout such conaant but upon notice to Lessor, as long as they are not visible from tha outskle, do not II1YlIhM puncturing, relocating or removing the roof, ceilings. floors or any existing walls. will not affect the electrical, plumblng, HVAC, and/or 11I8 eaIely ayatems, sncIlhe cumulatiw cost thereof during this lease as extended does not exceed S2OOO. Notwithstanding the foregoing, lessee shall not make or permtt any roof penetralilons and/or install anything on the roof without the prior wrilIen appfllYlll of Lessor. Lessor may. _ a p.-dtion to granting such approval, require lessee to utilize a contractor chosen and/or approved by lessor. Any AltaraIiona or Utility Installations that Lessee shall desire to make sncI which require the consent of the Lessor shell be presented to Lessor In wrtttan form with detailed plans. Consent shell be deemed condilIoned upon lessee's: (i) acquiring all applicable gOllemmental pennIta, (U) furnishing lessor with copies of both the permits and the plans and specIflcations prior to commencement of the work, and (111) compliance with an conditions of said permits and othar Applicable Requirements in a prompt and expedtIous manner. Any AllalatlOllS or UtilIty Installations shall be perlormed in a workmanllk8 manner with good snd suffICient meterials. lessee shall prompUy upon complelion fumlah lessor wHh as- built plans and speclllcaIions. For work which costs an amount in excess of One month's Base Rent. lessor may condition Its con~ upon Lessee providing s lien and completion bond In an amount equal to 150% of the estimated cost of such Alteration or U/llity Installation and/or upon Lessee's posting an additional Security Depoelt with lessor. (c) llena; Bond.. ~ shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to_or for Lassee st .or for use on.the. Premises. INhich claims are or may be. secured by any mechanic's or materialmen's lien " 6611N"O:IO WHO:! SI8AfUI 930Vd U0D8I:MlHY ~ Inlll814SnpuI U8:ljJaWV161U 0 sremUI JO lUl10WII 8Ill hi P8lIWR IOU 81 """'fM\ pull ........ Ipns 10 I""lJ8 8'l.I. 'u""e4 18U!86& palnBUl eq 01 pall"baI SlfJed e41 ollueP!OU! 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Except for Lesso(s gross negligence or wilWul misconduct, Lessee shalllnderMlfy, protect, defend and hold harmless the Premises, Lessor and its agents, Lesso(s master or ground lessor, partners and Lendats, from and against any and all claims, loss of rents andlor damages, liens, judgments, penalties, attorneys' and consultants' faes, 'lIlCpeI1NS andIor UabilllIes arising out of, ImIOlving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any acIIon or procaedlng Ie brought against Lessor by reason of any of the foregoing maners, Lessee shall upon notice def8nd the same at Lessee's expense by counae/ reasonably satisfactory to Lessor and Lessor shall cooperate wllh Lessee in such def8nse. Lessor need not have first paid any such claim in order to be defended or Indemnified. 8.8 ExempUon of LHsor from liability. Lessor shall not be liable for Injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, irlllltees, customeIs, or any othar parson In or about the Premises, whether such damage or injury Is caused by or results from fire, stllam, elactlicity, gas, walIIr or rain, or fnlm the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appfilUlC88, plumbing, HVAC or IIghIIng IbcIures, or fnlm any other cause, whather the said Injury or damage results from conditions arising upon the Premises or upon olher portions of the Building, or from other sources or places. Lessor shall not be liable for any damages arising from any lICl or neglect of any other '-nl of Lessor nor ~a failure of Lessor to enforce the provisions of any other lease in the Projact. NotwIthstandIng Lesso(s negligence or breach of this Lease, Lessor shall under no circumstances be liable for Injury to Lessee's business or for any Iosa of Income or profit therefrom. 9. Dalllllge or Daslructldn. 9.1 Daftnltlon.. (a) "Premise. Partlall Dalllllge" shall masn damage or destruction to the impRMll1l8l1ls on the Premi_, other than Lessee Owned Alterations and Utility Instalations, which can reasonably be repaired in 3 months or less fnlm the date of the damage or destruction, and the cost thereof _s not exceed a sum equal to 8 month's Baae Rent. Lessor shall notify Lessee In writing within 30 days from the date of the demage or destruction as to whether or nol the damage Ie Parti8l or Total. (b) "Preml_ TcIflIl DaatrucIIon" shall mean damage or destruction to the ImpIll\l\ll'n8nla on the Premises, other than Lessee Owned Alterations and Utility InataIIalicns and Trade Fixtures, which cannot reasonably be repaired In 3 months or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 8 month's Baae Rent. Lessor shall notify Lessee In writing within 30 days from the date of the damage or destruction as to whether or nolthe damage ill Parti8l or Total. (c) "Inaunad Loa" shall mean damage or destruction to implll\l\ll'n8nla on the Premises, other than Lessee Owned A1terstions and Utility Installations and Trade Fixtures, which was caused by an avant required to be covered by the insurance described in Paragraph 8.3(a), irrespectiw of any deductible amounts or CO\I9I8ge Omits inwlved. (d) "~Cost" shall msen the coat to repair or rebuild the ImplDll9menls owned by Lessor at the time of the occurrenca to their concition exiating immediately prior thereto, including demolition, debris remowl and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation, (a) "Haunlou. SUbstance Condition" shall mean the occurrence or dI8COV8ry of a concIIlIon Involving the presence of, or a contamination by, a Hazardous Substance as defined In Paragraph 6.2(a), In, on, or under the Premisas which requires repair, nsmedlation, or restoration. 9.2 Partlall Damage. In.unad Lo... If a Premises Partial Damage that is an Insured Lolls occurs, then Lessor shall, at Lesso(s expense, repair such damage (but not Lessee's Trade Filltures or ~ Owned AlteratIons and UlIIIIy lnata/Iations) as soon as reasonably possible and this Lease shall continue in full force and eIfacl; provtded, howaver, that l.esue shall, at Lesso(s election, make the repair of any damage or destruction the total cost to repair of which is 55,000 or ;-. and, in such avent, Lessor shaI make any applicable insurance proceeds awiiable to Lessee on a reasonable basis for that purpose. NotwIthstancIng the 1onIgoing, If the required Insurance was not in force or the Insurance proceeds are not sufficient to eIfact such repair, the Insuring Party shall promptly contribute the shortage in procaeds as and when required to complete said repairs. In the -m. howaver, such shortage was due to the feet that, by reason of the unique nature of the impro\l9ments, lull replacement cost Insuranoe coverage was not commarciaJly reasonable and awiiable, Lessor shall have no obfigatlon to pay for the shortage in Insurance proceede or to fully restore the unique aapects 01 the Premises unless Lessee provides Lessor wIIh the funds to cover same, or adequate -..ranoe thereof, wIthln 10 days following receipt of writlen notice of such shortage and reqU8al therefor. W Lessor ~ said funds or adequate lISIIUrance thereof within said 10 day period, the party reaponsibIe for making the repairs shall complete them as soon as -.ably posaIbIa and this Lease shall rernaJn in full force and effect. If such funds or assurance are nol receill9d, ~ may naverlhslsas eIacl by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially nta8OI1abIe with Lessor paying any shortege In proceeds, in which case this Lease shall remain in full force and effect, or (II) have this Lease tarmlnate 30 days thereafter. Lessee shall not be entilled to reimbursement of any funds contributed by Lessee to repair any such damage or deaIruclIon. Premises Partial Damage due to flood or earthquake shall be subjact to Paragraph 9.3, notwithstanding that there may be some Insuranoe cO\l9rage, but the net proceeds of any such insurance shaH be made avaiiablalor the repairs W made by either Party. 9.3 Partial Dalllllge - Unlnaunad Loa. If a Premises Partial Damage that is not an Insured Lolls occurs, unlass ClIused by a negligent or wilWuI act of Lessee (in which _nt L_ shall make the repairs atl.esue's expense), Lessor may either. (I) repair such damage as soon as reasonably possible at Lessor's _nse, In which avent this Lease _ ~ In full force and eIfact, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after ~pt by Lessor oflcrtcmllsdge of the occurrence of such damage. Such lermination shall be effecIive 60 days following the dale of such notice. In the avent Lessor elecIs 10 terminate this Lease, Lessee shall have the right within 10 daya alter receipt of the termination notice to give written notice to Lessor of Lessee's commllment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satIsfacIory assurance thereof within 30 days aIIer making such commitment. In such tMIIIllhis Lease shall oontInue In full force and eIfact, and Lessor shall proceed to make such repairs as soon as reasonably peeslble alter the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the tarmlnatlon notice. 9.4 TcIflIl Destruction. Notwithatanding any other provision hereof, Wa Preml_ Total DestructIon occurs, this Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or wilWuI misconduct of Lessee, Lessor shaH haw the right to recover Lesso(s damages from Lessee, excapIlIs provtded In Panlgraph 8.6. 9.5 Dalllllge Neer End of Term. 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PU13 X81 01 Je'-'Od I08JIDUI JO 1:18JIO aut fkJIADIJ .(lIInlnnD A'IID I." 'RII_' ..... _................ .___ .__.._ .u._..______ 12.2 Terms end Conditions AppllC8ble to Assignment and SUblllltlng. (a) Regardless 01 Lesso(s consent. no assignment or sublelling shall: (i) ba aIIacIMl without the express written assumption by such assignee or subles_ 01 the obligations 01 Lelisee under this Lease. (H) relNH Lesue 01 any obligations hereunder, or (ill) alter the primary liability 01 L_ lor the payment 01 Rent or lor the performanoe 01 any other obligations to ba performed by Lessee. (b) Lessor may accept Rent or performance 01 Lesue's obligations from any plIl8OI1 other than Lesue pending approval or disapproval of an assignment. Nenher a delay in the approval or cIsapptovaJ 01 such assignment nor the aooaptance 01 Rent or performanoe shall constnute a walwr or estoppel 01 Lesso(s right to lIJCIIrdse ne remedies lor Lesue's o.tault or Breach. (c) Lesso(s consent to any assignment or subletting shaD not constftute a oonsent to any subsequent assignment or subletting. (d) In the lMlnt 01 any DelauU or Breach by Lessee. Lessor may proceed directly against Lesue. any GuarentOlll or anyone else responsible lor the performance 01 Leasee's obligations under this Le_. including any assignee or su~. without first exhausting Lesso(s remedies against any other person or entity responsible therefor to Lessor. or any 88CUrity held by Lessot. (e) Each request for consent to an assignment or subletting shaH ba in writing. accompalHd by Information *-nt to Lesso(s determination as to the financial and operational responsibility and appropristenees 01 the proposed assignee or sublesaea. including but not limned to the intended use ancLlor required modlficatIon of the Premlsea. II any. Lesue ag_ to provide Lessor with such o1IIer or additional Information and/or documentation as may ba raasonably requested. (See also Paragraph 36) (I) Any assignee of. or sublesses under. this Le_ shall. by reason 01 accepting such assignment or entering into such sublease. be deemed to havif>assurned and agreed to conform and comply with each and ewry term. _ant. oondlllon and obligation herein to ba observed or performed by Lesue during tha term 01 said assignment or suble..e. other than such obIigal1ons .. are contrary to or inconsistent with provlsiOll8 01 an assignment or sublease to which Lessor h88 speclficaity 00IIMnted to in writing. (g) Lessor's consent to any assignment or subletting shan not transf8r to the assignee or .Ib'Utra any Optlon granted to the original Leases by this Lease unless such transfer Is specIIlcaUy consented to by llIssor in writing. (See Paragraph 39.2) 12.3 AdcItI_1 Terms and CondItIon. Applicable to Subletting. The following terms and concItlons shall apply to any subleltlng by Lessee 01 all or any part of the PremIsea and shall be deemed included In an ~ under this Lease whether or not expressly incorporated therein: (a) Lesses hereby assigns and transfers to Lessor all 01 Leases's Interest in all Rent payable on any sublease. and Lessor may collect such Rent and apply same toward Lesue's obligalions under this Lease; provided. how8v8r. that until a Bnssch shall occur in the perlormanoe 01 Leases's obligations. Lesue may collect said Rent. Lessor shaD not, by nsason 01 the foragoIng or any assignment 01 such sublease. nor by reason 01 the coDeclIon 01 Rent. ba deemed liable to the Sltllll." lor any flIIlunt of Lesses. to perform and comply with any 01 Leasee's obligations to such subre-. Leases hereby ImMJOabIy authoriZes and dIr8CIS any such subleases. upon ..-ipt of a written notice from Lessor stating that a Bnssch exI8II in tha perIormance 0Ila88M's obligalIans under this Lease. to pey to Lessor an Rent dua and to baoome due under tha sublease. Sublessee shall rely upon any such notice from Lessor and shall pay an Rents to Lessor without any obligation or right to InqUIre as to whether such BIRCh lIldsts, noIwithaI8ndlng any claim lrom Lessee to the contrary. (b) In the lMlnt 01 a Breach by Les_. Lessor may. at ne option. require su~ to attom to Lessor. in which lMlnt Lessor shell undertake the obligations 01 the sublessor under such sublease from the lima of the lIJCIIrclsa 01 said option to the expiration 01 such sublease; provided. how8v8r. Lessor shall not ba liabla for any prepaid rents or aecurity dapOslt paid by such sublessee to such sublessor or lor any prior Defaune or Breaches 01 such sublassor. (c) Any matter requiring the consent 01 the sublessor under a subla_ shall also require the consent 01 Lessor. (d) No subleases shall further assign or sublet all or any part of the Premisft wtthout lasso(s prior wrltten consent. (e) Lessor shall deliller a copy 01 any notice 01 Delaull or Breach by Leases to the subIea.... who shall hlMI the right to cure the DeIauU 01 Leases within the grace period. n any. specified In such notice. The subleasee sheD haw a right 01 reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 13. Deflluft; B.-ch; RemecI.... 13.1 Default; B.-ch. A "Default" is defined as a failure by the Leases to comply wtth or perform any 01 the terms. covenants. conditions or Rules and Regulations under this Le.... A "Breach" is defined as the occurrence 01 one or mora 01 the foIlowlng Delaune. and the failure 01 Lessee to cure such DeIauU within any appUC8bl. grace pariod: (a) The abandonrnant 01 the Premises; or the vacating 01 the Premlees without providing a commercially reasonable level of aecurity, or where the coverage 01 the property Insurance described in Paragraph 8.3 is jeopardized as a result tharlIoI. or without providing reasonable assurances to m1nlmlze potenllaJ vandalism. (b) The failure 01 Lessee to make any payment 01 Rent or any Security Deposit required to be made by Leases hereunder. whether to Lessor or to a third party. when due, to provide reasonable lIIIIdance 01 insurance or sunsty band. or to fulfiD any obligation under this Lease which endangers or threatens IiIe or property, where such failure contlnuas lor a period of 3 business days lollowing written notice to Leases. (c) The failure by Leases to provide (I) reasonable written evidence 01 compIianoe with ApplIcable Requi_nts. (ii) the service contracts. (IU) the rescission 01 an unauthorized assignment or subletting. (Iv) an E8kIppeI Cerllllcllle. (v) a requasted subordination. (vi) evidence concerning any guaranty and/or Guarantor. (viI) any document requested under Paragnsph 41 (.-ants). or (viii) any other documentallon or inIormaIIon which Lessor may reasonably require 01 Lessee under the terms 01 this Lease. where any such failure oonlInuas for a period 0110 days foUowing wrltten notice to Lessee. (d) A Delaull by Leases as to the terms. covenants. oontillons or proviliona 01 this LeaH. or 01 the rules adopted under Paragraph 2.9 hereol. other than those dascribad in subparagraphs 13.1 (a). (b) or (c), aIleNe. where such DerauIt oontinuas lor a period 01 30 days alter written notice; provided. how8v8r. that lithe nature 01 Leases's Delaullls such that more than 30 days are reasonably required for ne cure. then it shall not ba deemed to be a Breach II Leases commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. (e) The occurrence 01 any of the following lMlnts: (i) the making 01 any general arrangement or assignment lor the banefit 01 creditors; (II) baooming a "e1ebtor" as defined in 11 U.S.C. !i 101 or any SllCC8Saor statuI8 thereto (unless. In the case 01 a petition filed against Leases. the same is dismissed wtthin 80 days); (ili) the appointment 01 a trustee or reoaIYer to take possession 01 substantially all 01 Lessee's assets located althe Premises or 01 Lea....s interest In this LeaH. where posesssion is not restored to Lessee within 30 days; or (Iv) the attachment. execution or othar judicial seizure 01 subalanllally an of Lessee's _ located at the Premises or 01 Laaaee's interest in this Leass. where such seizure is nol di8cherged wtthln 30 days; pnMded, how8v8r. in the lMlnt thet any provision 01 this subparagraph (e) is contrary to any applicable law, such provision shaH be 01 no force or eIfact. and not aIIect the .__I.~..... _......_ ___1_1__ __..1_1___ ..,...l-o.lO IIHQ,I _U1 01 3!lVd UOP1llOSIY 8llllF:lll8l:llS!JISnpul U8:lIJlIW\f186l 0 lllW!l!Ul "as.., 8l1ll10 UO!lf108X8 &Ill 10 aWII &Ill I. 1ll8ll8 Uj .....cuB lIllI jO 8tnpel108 Bill 4IfM ......."'000lI UI 88j . 8.l8ljCUB Avd 1I"'lS JOSS81 'uelll .UI8.I.... 8Sn8lO UO!l8l8'lH UlI10 uO!l8J8do 10 lU8W88llI8 ~ J8IlllIIlM 'peneJ:lU1 II ~ 1IlI89 Po (P) JO 'aS881 1l!1II10 UOIl1lJ!dxe lIllI Jalj8 'lOII8110 IU88UOO 8IlI 4IfM '1811W8Jd alii 10 UClIt_1IOd III 8IJlIIW8J -., Po (0) '!08/Qld lIllI UI4IfM pel1lOOl pUll J088al .<crpeUMO -!W8Jd J8lIlO JO I88!W8Jd alii 01 SIll6u Aull J08S81 UlOJj l8J!nbolI -1 I! 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"lU8~ 841 J8IIOO8J pUll UDlss8ssOO 0111l6/J s.aass81 pull ......, 841 snulluoo (q) "8II1IllIS P!1ls Aq 'PlPu. ...., Il!III U! JOj pepf^OJd I8lpewSJ 8111 01 J08S81 Ilul!lllue -81 SI4IIO 1l000"'S . pUll JaU!IIISP 11ljM.lun Ull II10q SIIlIllSUDO 1I"'lS. SPO!J8d 801lJ6 lptlS ONII 811110 Je128J6 em UllDIN.1!!'!l!lan ALl! AJr.~m AAttRA"'IlnAlnllDI All' nllD lil,llall""",,,,_ ...... .......... ...~_... ......___ ._..._.._ _... _.._ ,..__ __-"-...___ _ ,_ 15.2 Anumption of Obligations. Any buyer or transferee of Lessor's interest in this Lease shall be deemed to haw assumed Lessor's obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to Brokers any amounts due es and for brokerage fees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, n Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker may send written notice . to Lessor and Lessee of such failure and if Lessor fails to pay such amounts within 10 days altar said notice, Lessee shllll pay sIIId monies to Its Broker and offset such amounts against Rent. In addition, Lessee's Broker shall be deemed to be a third party beneficiary of any commission agreement entered Into by andlor between Lessor and Lessor's Broker for the limited purpose of oollecllng any brokerage fee owed. 15.3 RepnIS~''*tlons and Indamnltles of Broker Ralatlonshlps. Lessee and Lessor each represent and warrant to the other that it hes had no dealings with any person, firm, broker or finder (other then the Brokers, If any) In oonnecIlon with this Lease, and that no one other than said named Brokers is entitled to any commission or finder's fee in oonnecllon herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless horn and against IlabHlty for oomp-aon or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any deaRngs or actions of the indemnlfylng Party, including any coats, expenses, attorneys' fees reasonably incurred with respect thereto. 16. Estoppal CertJtlcateL (a) Each Party (as MRespondlng Plrty") shaH within 10 days after written notice horn the other Party (the MRequMllng PI~ execute, acknowledge and deliver to the Requesting Party a sbIlbIlment In writing In form similar to the then moat current MEstoppal CertIfIcale" form published by the American IndU8lrlal Real Eetate Association, plus such addllional Information, confirmation and/or atatemimls as may be reasonably raquested by the Requeatlng Party. (b) If the Responding Party shall fail to -.cute or deliver the Estoppel CerlIficate within such 10 day period, the Requesting Party may -.cute an Eatoppel Cerllficate slating that: (I) the Lease Is In iuD force and effecI without modifICation axcept as may be repreMnted by the Requesting Party, (il) there are no uncurad defaults In the Reque8llng Party's performance, and (III) If Lessor is the Requeatlng Party, not more than one month's rent has been paid In edvance. Prospectlva purchasera and encumbrancers may rely upon the Requesting Party's Eatoppel Certificate, and the Responding Party shllll be estopped horn denying the truth of the facts contained in said Certlflcate. (c) If Lessor desires to finance, refinance, or s"lthe Premls88, or any part thereof, Lessee and 811 Guarantors sh8l1 deliver to any potenliallender or purchaser designated by Leasor such financial _ as may be ~ raquired by such lender or purchaser, including but not limited to Lessee's financial atalements for the put 3 years. All such financial atatements shall be received by Lessor and such lender or purchaser in oonfiderIC8 and shatl be used only for the purpoees herein set forth. 17. o.tInltlon of LeslIor. The term MLesaor" as used herein shllll mean the owner or 0WIl8f8 at the time in quastlon of the fee title to the Premises, or, If this Is a sublease, of the Lessee's interest in the prior lease. In the -m 01 a lnIn8I8r 01 LlllOo's tIlle or interest in the Premls88 or this Lease, Lessor shall deliver to the trensferee or aseignee (In cash or by el8dll) any unused Securtty 0ep08It held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Securtty Depoeit, as aforasaId, the prior Lessor shllll be reli~ 01 aI liability with respact to the obligations and/or oovenanta under this Lease thereafter to be performed by the Lessor. Subject to the foregotng, the obligations andlor covenants In this Lease to be performed by the Lessor sh8l1 be binding only upon the Lessor as hereinabove defined. 18. SeverlIblllty. The invalidity of any provision 01 this Lease, as determined by a court of oompalent jurisdiction, shall in no way alfact the validity 01 any other provision hereof. 19. Days. Unless otherwise speclfically indicated to the contrary, the word Mdays" as used in this Lease shall mean and r.r to calendar days. 20. Umlllltlon on U.blllty. The obligatlon8 01 Lessor under this Lease shall not conatllute personal obligations 01 Lessor or Its partners, members, directors, oIflcers or shareholders, and Lessee shaD look to the Project, and to no other assets of Lessor, for the satiafactlon of any liability 01 Lessor wilh respect to this Lease, and shaD not _k reoou_ against Lessor'B partners, members, directors, officers or shareholders, or any 01 their personal assets for such salt8laction. 21. Time of e.-ce. Time Is 01 the essenee with respect to the performance 01 all obligations to be performed or observed by the Parties under this Lease. 22. No Prlor or Other AgIMlll8nts; Broker D1ac111lm.... This Lease contains all agreements between the Parties wilh respect to any mailer mentioned herein, and no other prior or OOnlemporaneous agreement or lIIlderatandng shall be eIIecIive. Lessor and Lessee each represents and warrants to the Brokers that ft has made, and is relying solely upon, Its own lmIe8llgatlon as to the nature, quality, character and financilll responsibility 01 the other Party to this Lease and as to tha use, nature, qulllity and character of the Premises. Brokera have no responsibility with raspact thereto or with respect to any defautt or breach hereof by either Party. The IIabDity (including court coats and attorneys' fees) of any Broker with respact to nagotlation, execution, delMtry or performance by either Lessor or Lessee under this Lease or any amendment or moclficalion hereto shall be Dmiled to an amount up to the f8e .-ived by such Broker pursuant to this Lease; provided, '-sr, that the foregoing Iimilatlon on each Broker'B DablHly shall not be applicable to any glOBS negligence or wiDlul misconduct 01 such Broker. 23. NotJca. 23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certilled or regi-.cI mBll or U.S. Pastal Service Exp.... Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given If 8lIMld In a manner specIfted in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's addreas for delivery or mailing of nolicee. Either Party may by wrttten notice to the other speclfy a dlllenlnt address for notice, axcepl that upon lesHe's laking possession 01 the Premises, the Premises sh8l1 consliMe Lessee's address for notice. A copy of aI notioes to Leasor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from lime to time heraaller designate In writing. 23.2 Date 01 Notice. Any notice sent by registered or certifled mail, retum receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or W no delivery date Is shown, the poatmark lher8on. If san! by regular mBll the notice shall be deemed given 48 hours after the same Is addressed as raquirad herein and mBlled with poatage prepaid. Notioes delivered by Unlled States Express Mall or overnight courier that guarantee next day delivery shall be deemed given 24 hours alter delivery 01 the same to the Poatal Service or courier. Nolicee transmitted by facsimile transmission or similar means shllli be deemed delivered upon l8Iephone confirmation 01 receipt (confirmation report horn fax machine Is sulficient), provided a copy Islllso deliwred via delivery or mail. If notice is rllCllived on a Saturday, Sunday or IagaI hoIkIay, ft shaD be deemed nIC8ived on the next bualness day. 24. Waive.... No waiver by Lessor of the Defautt or Breach of any term, covenant or condition hereof by Lessee, shail be deemed a waiver of any other term, covenant or oondilIon hereof, or of any subsequent Delautt or Breach by l.e88ee of the same or of any other ..___ _.____.. _. ___~__ ...___. 1 ____-'_ ______...._ __ _____1 _. __.. __ _"'_11 _-0...._ ..1____..1 "- __"""-_ ..__________....._ _L.._,_,__ 8118-l'il;lO WllO~ _UJ ~l 3!lVd \lCIPloosq ~ l-.t ISIQS1'IPUI .....W'f166l 0 S\1l!l!UI 8llIllIlIM>I upq&IllIlIl8~ 8llI M8IlI(8ll8 -., 'UllIlIPPS UI .sull!s....., '0:1. A1SU!plO J\u8 -!W8Jd 8llI uo 808Id j08Iell Wlel elll jO 8\lIllOW 9181l8lll8u!mp.ww -., IllI8Ill1l!8 ...118 10". 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Sll SJ8ltOJB 01 A111U8P! 01 eeJlIe J8l1es PUIiI JeMB (0) 'J8ltOJB lj:lns 10 j:lnpuOOS!W "'''11M JD eouellt,6eu SSOJll MIll 01 81QllOndde eq IOU l(IIlIs ~1IQ8!1 s~8ltOJB lp8e uo uOOSlIw!I BulOllllJOI 8ljlllllll 'J8M1MOlj 'peP!^OId :_., 81111 ollullnSJnd J8ltOJB 1l0nl ~q P8/1!808.I 88J 8111 peeoxe IOU l(IIlIS eSlllll SlllIllIllugllfllJ UOISS!UlO JO Joue '~P jO lj:lll8Jq MIll 01 J:l8dseJ 1I1lM J8ltOJB J\u810 '(seel ,WWOlIll pUll SlSOO lJnoo llUlpnpU!) ~l!q811 8lU '~lld J8lII!e ~ j08I811lj:l1il8Jq JO Ilnlll8P MIll 01 J:l8ds8J lII!M iIllllQ!SUOds8J OU 8J\llll SJ8ltOJB (q) '(IIUO!SS8JOJd IU8ledwoo S lI"SUOO 'peJ!S8p I! 80!^Pll Xlll JO (lllIelll 'el_ 1881 1"0Q8 es!^pe III P8!lllllnb UOSJ8d 11 S! IU8lls ellllsa IllllJ Y 'uop:lllIiIUll.I 811110 Bu!IllI8IllJ8Pun J!8lIl sS8Jdxe ~Ielllnbepll MlII18lIl eJnSSll 01 sIuewaaJ6ll IIll p88J ~lInlllJliIO OlnOUR AABA'"I nllP I~ "O'IOa.IA'IIIIIIU^ lIIa.n .__.... _. I...._._._~_. _._ ..._.. ______ __ ______ _ ___u_ PremlHs IIJ1d to unlock &II dooIa In or upon the Premises other than to files, vaults IIJ1d sales, IIJ1d In the case 01 ......rgency to _r the Premises by any r8lIIClIl8bIy lIppfOJlriale means, and any such entry shall no! be deemed a lorclble or unlawful entry or detainer of the PremlHs or an 8YIctIon. Lessee waives any charges for damages or Injuries or Interierence wIlh Lessee's properly or busln_ In connection therewith. 33. AuclIonL Lessee shall not conduct, nor parmR to be conducted, any auction upon the Premlsas without Lessor's prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness In determining whether to parmR an auction. 34. SIgna. Lessee shall nol pice any sign upon the Project without Lesso~s prior written consent. 35. Tennlndon; Merger. Unless spaclficaJly staled otherwise in writing by Lessor, the voluntary or other surrender of this Laase by Lessee, the mutuBI termination or cancellalion hereof, or a termination hereof by Lessor lor Ilteach by Lessee, sh&ll automelk:ally terminate any sublease or 1_ aslaJe in the Premlsas; provided, hOWlMlr, that Lessor may eIecI to continue any one or &II existing subl8MllCies. Lessor'll failure within 10 clays following any such event to alect to the contrary by written notice to the holder of any such lessar Interest, shall conslIlule Lesso~s elecllon to hlMl such lMlnt conslilule the termination of such Interest. 36. Conaenta. Except as otherwise provided herein, wherewr in this Lease the consent of a Party Is required to an act by or lor the other Party, auch consent ah&ll not be unreasonably wIlhheld or delayed. Lesso~s actuBI raasonabIe costs and expenses (Including but not limited to archRacts', attorneys', engineers' IIJ1d other consultsnls' fees) Incurred in the consideration 01, or response to, a request by Lessae lor any Lessor consent, Including but not limned to consents to an assignment, a sublelling or the presence or use 01 a Hazardous Substance, shall be peld by Lessee upon receipt of an invoice IIJ1d supporting documentation therefor. Lessor's consent to any lICl, assignment or subIelling shall not consmUlll an acknowledgment that no Defaun or Breach by Lessee of thiS Leue exists, nor shall such consent be deemed a wai_ of any then axIatIng Defaun or Breach, axcepl as may ba otharwlse specifically stated in wrlting by Lessor at the time of such conaent. The failure 10 spaclfy herein any particular condition to Lesso~s consent shall not preclude the imposition by Lessor at the time 01 consent 01 such further or other conditions as are then reasonable wIlh releranee to the particular matter lor which consent Is being given. In the event that eRher Party disagrees wRh any determination made by the other hereunder and reasonably requeatllthe reasons lor such detarmlnation, the determining parly shall furnish Its reasons In writing and In reasonable detail wtlhln 10 business days following such request. 37. Guarantor. 37.1 Execution. The Guarantors, U any, shall each execute a guaranty In the form most recently publiShed by the American Induatrial ReBI Estate Aasociatlon. 37.2 Default. n shall conslltute a Defaun of the Lessee if any Guarantor fails or refuees, upon request to provide: (a) evidence of the execution 01 the guaranty, including the aulhorRy 01 the party signing on Guarantor's behalf to obligate Guarantor, and In the case 01 a corporate Guarantor, a certUled copy 01 a resolution of Its board 01 directors authorizing the making of such guaranty, (b) current financial atatements, (c) an EatoppeI Certllicate, or (eI) written confirmation that tha guaranty is stHlln effect. 38. Quiet Po ssasalon. Subject to payment by Lessee of the Rent and parformance of &II of the CO\I8flants, conditions and provisions on Lessee's part to be obaerIIed and parformed undar this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hareoI. 39. Opllon.. If Lessee is granted an OptIon, as defined below, then the following provisions shall apply. 39.1 DlIIInItlon. "0plI0n" shall mean: (a) the right to extend the term of or renew thiS Lease or 10 extend or renew any lease that Lessee has on other properly of Lessor; (b) the right of first refusal or first offer to lease BIther the PremlHs or other properly of Lessor; (c) the right to purohase or the right of first refussl to purchase the Premises or other property of Lessor. 39.2 O.,u- PeraoMI To Original Laa_. Any Option granted to Lessee in this Lease is parsonal to the original Lessee, and cannot be assigned or 8lC8rclsed by anyone other than said original Lessee IIJ1d only while the original Lessee is In full possession of the PremlHs 1IJ1d, If requested by Lessor, wRh Lessee certifying that Lessee has no Intention of thereafter assigning or subletting. 39.3 Mulllple 0plI0n.. In the _nt that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prfor OptIons hlMl been validly exercised. 39.4 En.ct of DeflIuIt on OplIonL (a) Lessee shall hlMl no right to exercise an Option: (I) during the period commencing wRh the giving 01 any notice of OeIaun and continuing until said Defaun is cured, (ii) during the period of time any Rent Is unpBId (wRhout regard to whether noIIce thereof is given Lseue), (i1ij during the time Lessee is In Breach of this Lease, or (Iv) In the event that Lessae has been given 3 or more nollces of separate 0eIauh, whether or not the Defaults are cured, during the t 2 month parlod Immediately preceding the exercise of the Option. (b) The period 01 time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inabilRy to ltlCBrcIse an Option because 01 the provlslons 01 Paragraph 38.4(a). (c) An Option shall terminate and be of no further force or eIIect, notwlthstanding Lessee's due and timely exercise of the Option, U, after such 8lC8n:ise and prfor to the commencement of the extended term or completion of the purchase, (i) Lessee fails 10 pay Rent lor a period 01 30 days after such Rent becomes due (wRhout any necessRy of Lessor to give notice thereof), or (II) " Lessee commits a BnIach oIlhis Lease. 40. Securlty.......... Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not Include the cost 01 guard service or other security measures, and that Lessor shall hlMl no obligation whatsoeller to provide same. Lessee assumes all responsibHRy for the protaction of the PremlHs, Lessee, Its agents and invlt_ and their properly from the acts of third parties. In the event, howewr, that Lessor should eIecI to provide security services, then the cost thereof shall be an Operating Expense. 41. RlllrwtIon.. (a) Lessor reserves the right: (i) to grant, wRhout the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, (iiij to create and/or Install new utility raceways, so long as such _manta, rights, dedications, maps, restrlcllons, and utftily raceways do not unreasonably interfere wRh the use 01 the Premises by Lessee. Lessor may also: change the name, address or tRIe of the BuUding or Project upon at least 90 days prior written notica; provjde and install, at Lessee" expense, Building atIIJ1dard graphics on the door of the Premises IIJ1d such portions of the Common Areas as Lessor shall reasonably deem appropriate; grant 10 any lessee the exclusive right to conduct any business as long as such exclusive right does not conflict wRh any rights expressly given herein; IIJ1d to place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of the Building or the Project or on pole signs in the Common Areas. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights. The obstruction of Lessee's view, air, or Ught by any structure erecled in the vlcinRy of the Building, whether by Lessor or third parties, shall In no way affect this Lease or Impose any IIabIlRy upon Lessor. .. ..~) ~ also ~e",!s the ri!lht ~ ~ Lessee t~ ~r space of comparable. s~ In the Buildln!! or Project. Lessor 88IlI-~-o~ 1'1110:1 SI1IIl!UI .. 'ON 0111lJep8:1 ( j:II\IW!SOll:l ( ) :euolldele1 " :1S8IPP\f :eAU :P8lUIJd eWlIN :~8 :elIU :pelUlJd eWlIN :~8 :33SS31 ~8 :UO :111 PllIJ108"3 t~3ElVd IlOJI8IOClny ~ 1"II_npul u~l. -.. ~. 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JO UOIl:lrulsUDO elll JO suo!ll!O!I!POW S8JlnbeJ _I J81!wlS ~8 JO l:lV se!l!l!Q8SIO llllM SU8OfJ8UJy aLP saBtW8Jd 84l JO 18sn pepU8W! JO "esn S.88sse, 10 UnS8J B se 18W lU8A8 aUl Ul "1!MIf ...........11"I m.... .UII!M.lAlIIW 'nt" LESSOR'S BROKER: LESSEE'S BROKER: Attn: Address: Attn: Address: Telephone Fscsimlle No. Telephone Facsimile No. Th.. forms .... ollen modified to mllfll ch.nglng requlremenlS 01 law .nd _ oIlhe Industry. Always _ or call to m.. sure you .re utIl1z1l!lllhe moat current form: Amarican Induslrlalllaal ..- AuoclallOn, 700 South Flower s-. Sulta 800, Los Angeles, CA 80017. (213) .7.ffT77. . OCapyrlght 1ll89-By AmerlcablnduatrlalllMl E8late AllOclIlIon. i All rIgtd8 ....fWd. No pm 01 th.- WDrkIIIIlIY be reproduc.d In MY farm wIlhaut 1*RI1..lan In wrlIIllII. ..,..l"ll:lO IlllO:l - UOII.1llOSSV ~ I~ ~npUIIBllJeWV-l66l 0 _UI .. /- . - STANDARD MULTI-TENANT OFFICE LEASE - GROSS AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 1. Basic Provisions ("Basic Provisions"). 1.1 Partl..: This Lease ("Laase"), dated for reference purposes only May 31. 2002 and between TU(' iRtarprii9i 7 T T C ,_,ismadeby ("Le.sor") and C'itr \?f iatl Ba:ruard.iuo. ('nJtur'?' ~ T.......c.........a...fQ.....a' .&FF?"~'i" ("Lesaee"). (collectively the ..Partl..... or individually a "Party'.). 1.2 (a) Preml_: That certain portion of the Project (as defined below), known as S~ ~8B'bers(s) 1 M , 1st floor(s). consisting of approximately -I ~a rentable square feet and approximately , useable square feet (..Preml.....). The Premises are locatea'a: 468 WeSI: 5th Steet , In the City of Sail iarRRJ::dlllo I County of ~aA R9.......,~fjiQQ . State of (',;,'" F"'rn.f a I with zip code Q?.lanl . In addition to Lessee's rights to use and occupy the Premises as hereinallar specified, Lessee shall halle non-excIuslve rights to the Common Areas (as defined in Paregrsph 2.7 below) as hereinafter specified. but shall not h_ any rights to the roof, the exterior walls, the area aboII9the dropped ceilings, or the utility raceways of the buikling containing the Premlsea ("Buldlngj or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located. along with all other buildings and ImprO\l9ments thereon. are herein collectively referred to as the "Project." The Project consists of approximately 1.000 rentable square feet. (See also Paragraph 2) 1.2 (b) Parking: na unreserved and ....!!!!..... reserved vehicle parking spaces at a monthly cost of $ ~ par unreserved space and $ ~ per reserved space. (See Paragrsph 2.6) 1.3 Term: five (5) yearsand zero months("OriglnaITerrn")commencing ("Commencement Date") and ending 11/30/06 (See also Paragrsph 3) 1.4 Early Possession: (OJ / II (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $ ~ 1 1:'00 per month ("Base Rent"), payable on the commencing '. (See also Paragraph 4) o If this box is , are provisions in this Lease for the Base R,ntto be adjusted 1.6 Lesaee's Share of Operating Expense Increase: ,fZ percent (jil %) (..Les..... Share"). Lessee's Share has been calculated by dividing the approximate rentable square footage of the Premises by the totel approximate square footage of the rentable space contained in the Project and shall not be subject to revision except in connection with an acluel change in the size of the Premises or a change in the space available for lease in the Project. 1.7 Bas. Rent and Other Monl.. Paid Upon ExecutIon: (a) Base Rent: $ for the period (b) Security Deposit: $ ("Security Deposit"). (See also Paragraph 5) (c) Parking: $ for the period (d) Other:$ tl.<'''.l>O for ,,~.- rn.<~+k, r J ""f~:,:,-I'( (e) Total Due Upon Execution of this L8a..: $ I1f Agreed Use: Cultural Exhibit space and offices 12/01/01 ("Expiration Date"). ("Early Pos_a1on Date"). lat- day of each month 1.8 represents Lessor exclusively ("Leuor's Broker"); represents Lessee excluaill8ly ("Leu..'s Brolcer"); or rapresents both Lessor and Lessee ("OUal Agency"). (b) Payment to Brokers: Upon execution and delivery 01 this Lease by both Partlas. Lessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement. the sum of or _ % of the total Base Rent for the brokerage services rendered by the Brokers). 1.11 Guarantor. The obligations of the Lessee under this Lease shall be guaranteed by NA ("Guarantor"). (See also Paregrsph ~7) . 1.12 Business Hours for the Building: ~ a.m. to.....s:... p.m., Monday through Friday (except Building Holidays) and-l!- a.m. to ....L... p.m. on Saturday (except Building Holidays). "Building Holidays" shall mean the dates 01 observation of New Year's Day. Presidenfa Day, Memorial Day. Indapendance Day, Labor Day, Thanksgiving Day. Christmas Day, and IV n . 1.13 Lessor Supplied Services. Notwithstanding the provisions of Paragrsph 11.1 , Lessor is NOT obligated to provide the following: o Janllorial services o Electriclty o Other (specify): NA 1.14 Attachments. Attached hereto are the following, all of which conslltute a part of this Lease: o an Addendum consisting of Paragrsphs _ through _ ; o a plot plan depk:tIng the Premisas; o a current set of the Rules and Regulations; o a Work Letter; bl a janitorial schedule;.__ 1.9 Base Year; Insuring Party. The Base Year is :JorJ.L Paragrsphs 4.2 and 8) 1.10 Real Estate Brokers: (See also Paragraph 15) (a) Representatfon: The following real estate brokers (the "Brokers") and brokerage relationships exist in this transaction (check applicable boxes): o NA o 1>121 o NA . (See also Paragraph 6) Lessor is the "Insuring Party". (See also ,~~.._.,~~ -"~'.--"",-"'-- . . "_""~~_'~"_'.''''._ .-c,~' _.._"... _.... 8W-l-!)~ 1'1110:1 'lIIlIul ~ 3eYd UOA.I......... ea_l_ .-t.qsnpul _wv-tll81 0 stllll!Ul :OllJV uowwOO lIIlIIO I.red & 8q 01 !:l8rOJd 84110 '8~&PUnoq lIIll 8p1ll"0 pugl J8410 81&UIlts&P Ool (0) . :fltQ&lI- 8UflIW8J HI!WeJd 841 01 lleoos 81Q&U081l8.1 0 6001 ossesodJnd 8OUllU8lU!1lW JOj 8&eJV UOWWOO 8Q110 ..Iu& ~1~lUOdW8l HOp Ool (q) :s.WM80lU AlIIA" pUll WMltIllM '08.1& ped&o8pU&1 'OI.lllUIIO UOllOllJIP '1IS8J6e '1IS8J6u! 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""~ 81 4"!4M 10 JDI8U!WOUep e41 pUB '8UD I! 4O!4M 10 JOIllJeWnu lIIlI 'UO!lOIlJl 8 ~ 9'1 4dlUlillJlld U! p&!IIosdl eli81UBOJ8d lIIlI) eJnp'puedx3 l8P.deO 40"1 10 1100 e41 JO eJ84s s,eellel liulAldmnw '0 lOnpOJd e41 0l18nbe IunDWB UB 'enp S! luel::l ellle 40!4M UD elllp e41 UD '8n81 "!4I10 WJel ellllo J8pUfIIW8J ~_~!_~~np ~!~~.~~ .~~_~ ~!~li~~!,_q_II~Ll.I_ee"sellnq eJ"l!puedx3 l8P.deO 40n~ JOj ~B8880eu "PUn) e41 ~8 11&41 JOII"] (d) To add addhional buildings and improvements to the Common Areas; (e) To use the Common Areas while engaged in making addhional improvements, repairs or aherations to the Project, or any portion thereof; and (I) To do and perform such other acts and make such other changes in, to or whh respect to the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate. 3. Term. 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3. 3.2 Early Possession. If Lessee totally or partially occupies Ihe Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such eariy possession. All other terms of this Lease (including but not limlled to the obligations to pay Lessee's Share of the Operating Expense Increase) shall, however, be in effect during such period. Any such early possession shall. not affect the Expiration Date. 3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. n, desphe said efforts, Lessor is unable to deliver pos_sion by such date, Lessor shall not be subject to any liabillly therefor, nor shell such failure effect the validity of this Lease. Lessee shall not, however, be obligated to pay Rent or perform ha other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Leasee would dlherwiae have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered whhin 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Partias, Lessee may, at its option, by notice In writing within 10 days after the end of such 60 day period, _I this Lease, .in which event the Parties shall be discharged from all obligations hereunder. If such written notice Is not received by Lessor wllhin said 10 day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered wllhin 120 days after the Commencement Date, this Lease shell terminate unless other agreements are reached between Lessor and Lessee, in writing. 3.4 ~ Compliance. Lessor shall not be required to deliver possession of the Premises to Lessee untU Lessee complies with ha obligation to provide evidence of Insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of ha obligations under this Lease from and after the Stert Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, n Lessee Is required to perform any other conditions prior to or concurrent with the Sterl Date, the Start Date shall occur but Lessor may alecIto withhold possession until such conditions are satisfied. 4. Rent. 4.1. Rent DefIned. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Securlly Deposit) are deemed to be rent ("Rent"). 4.2 Operating Expen.. In_e. Lessee shall pay to Lessor during the term hereof, in addillon to the Base Rent, Lessee's Shere of the amount by which all Operating Expenses for each Comparison Year exceeds the amount of aU Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expen.. 1_...., in accordance with the following provisions: (a) "8_ Year" is as specified In Paragraph 1.9. (b) "Comparison Year" is defined as each calendar year during the term of this Lease subsequant to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay L_'s Share, notwithstanding they occur during the first twelve 12 months). Lessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Lessee is responsible for a share of such increase. (c) "Operating Expen_" include all costs Incurred by Lessor relating to the ownership and operation of the Project, calculated as if the Project was at least 95% occupied, Including, but not Iimlled to, the following: (i) The operation, repair, and maintenance in neat, clean, safe, good order and condition, but not the replacement (see subparagraph (g)), of the following: (sa) The Common Areas, including their surfaces, coverings, decorative Items, carpals, drapes and window coverings, and Including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways,. parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting fecililIes, building exteriors and roofs, fences and gates; (bb) All heating, air conditioning, plumbing, electrical systems, Iifa safety equipment, communication systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) Trash disposal, janitorial and security services, pest control services, and the costs of any environmental inspections; (III) Any other service 10 be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; (iv) The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 and any deductible portion of an insured loss concerning the Building or the Common Areas; (v) The amount of the Real Property Taxes payable by Lessor pursuant to paragraph 10; (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services not separately metered; (vii) Labor, salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Project and accounting and managament fees attributable to the operation of the Project; (viii) The cost of any Caphal Expendllure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 11144th of the cost of such Caphal Expenditure in any given month; (ix) Replacement of equipment or improvements that have a useful life for accounting purposes of 5 years or less. (d) Any Item of Operating Expense thet is specnically attributable to the Premises, the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises, Building, or other building. However, any such Item that is not spacifIcaIly attributable to the Building or to Bny other building or to the operation, repair and maintenance thereof, shell be equitably allocated by Lessor to all buildings in the Project. (e) The Inclusion of the Improvements, fecililles and services set forth In Subparagraph 4.2(c) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them. (I) Lessee's Share of Operating Expense Increase shall be payable by Lessee within 10 days after a reasonably datalled slatolrnant of actual expens&s is presented to Lessee by Lessor. 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Lessor shall retain the responsibility and pay for any Investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's occupancy, unless such remediation measure is required as a result of Lessee's use (including 'Alterations', as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lesso~s agents to have reasonable access to the Premises at reasonable times in order to carry out Lesso~s investigative and remedial responsibilities. (g) LessorTermlnation Option. If a Hazardous Substance Condition (see Paragraph 9,l(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and eltect, but subject to Lesso~s rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lesso~s option, either (i) investigate and remediale such Hazardous Substance Condition, if required, as soon as reasonably possible at Lesso~s expense, in which event this Lease shall continue in full force and eltect, or (Ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days alter receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the dale of such notice, In the event Lessor elects to give a termination notice, Lessee may, within 10 days therealter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the the", monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such evenl, this Lease shall continue in full force and eltect, and Lessor shall proceed to make such remediation as soon as reasonably possible alter the required funds are available, If Lessee does not give such notice and provida the required funds or assurance thereof within the tima provided, this Laase shall terminate as of the date specified in Lessor's notice 01 termination, 6.3 Lessee's Compliance wfth Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully, diligenliy and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lesso~s engineers andlor consultants which relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective alter the Start Date. Lessee shall, within 10 days alter receipt of Lesso~s written request, provide Lessor with copies of all permits and other documents, and other Information evidencing Lessee's compliance with any Applicable Requirements specUied by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. 6.4 Inspection; Compliance. Lessor and Lesso~s "Lender" (as defined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of AppliCable Requirements, or a Hazardous Substance Condition (see paragraph 9.1e) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. 7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations. 7.1 Lessee's Obligations. Notwithstanding Lesso~s obligation to keep the Premises in good condition and repair. Lessee shall be responSible for payment of the cost thereof to Lessor as additional rent for that portion of the cost of any maintenance and repair of the Premises, or any equipment (wherever located) that serves only Lessee or the Premises, to the extent such cost is altributable to causes beyond normal wear and tear. Lessee shall be responSible for the cost of painting, repairing or replacing wall coverings, and to repair or replace any improvements with the Premises. Lessor may, at its option, upon reasonable notice, elect to have Lessee perform any particular such maintenance or repairs the cost of which is otherwise Lessee's responsibility hereunder. 7.2 Lessor's Obligations, Subject to the provisions of Paragraphs 2.2 (Condition), 2,3 (Compliance), 4.2 (Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler system, fire alarm andlor smoke detection systems, fire hydrants, and the Common Areas. Lessee expressly waives the benefit of any statute now or herealter in effect to the extent it is inconsistent with the terms of this Lease. 7.3 Utility Installations; Trade Fixtures; Alterations, (a) Definitions. The term "Utility Installations" refers to all floor and window coverings, air lines, vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, and plumbing in or on the Premises. The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the improvements, other Ihan Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alterations anellor Utility Installations" are defined as Alterations andlor Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). (b) Consent, Lessee shall not make any Alterations or Utility Installations to the Premises without Lesso~s prior written consent. Lessee may, however, make non,structural Utility Instaliations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof, ceilings, floors or any existing walls, will not altect the electrical, plumbing, HVAC, andlor life safety systems, and the cumulative cost thereof during this Lease as extended does not exceed $2000. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations andlor install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen andlor approved by Lessor, Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (Ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (Iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner, Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall prompliy upon completion fumish Lessor with as- built plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation andlor upon Lessee's posting an additional Security Deposit with Lessor. (c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials fumished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in. on or about the Prenlises, and Lessor oShal: hav.;; tl"1ii. jJglit tv p~.;;: lIv:i..:.cs c: r,vii.raspoi1sibilit;', If Less86 shall Cc,nt6st the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itseil, Lessor and the Premises against the same and shali pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor ..'-.. . ,~-----. &6/8"~-e:lO 111:10:1 SII!~UI 93ll'fd UO\lel:KlS~ &Jill":! 1""l:IlelJlSnpul ~WV1l66~ 0 SJ1IIP.UI 10 IUnoWV eul,{q pep.wlllOu 8! 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AI!POq JOj SWlelO Isuie6e pamSU! leUO!IIPpe UB se JOSSal pue aassal 6Ul10910Jd apueJnsulJO ,(onod .(jmqen IllJlIuat) le!OJawwoo e aOJol U! daa~ pue u!elqo lIe4s aasS91 'eassa, IIq pe!J.IBO (e) 8. H1R.:m~ T' 8 sud-e.r6e.:rna UT aaSSdI uo pasodIrr 5:luanarmba:I a::lU-e.IDSUT 'aou...naUI ,(jlllqen (;'8 ;;Be'}a' nan ur UIe.:IDo.:tCl a::lt.IE.IDSUf-n<lS s. ~SdI -~(fuX'>E Hl2ljS .:t06S<1T- . (q)(:'S 4d8J6Bled Japun peJnoOJd 000'000'(:$ 10 ssaoxa U! a68Ja^00 8OUemSU! '\\mqe!l 01 alqelnqUlle ISOO wn!waJd 94110 UO!llod Aue JOI alq!suodsaJ aq aassal11e4s . ... _ ___-' ~__ ._......_.. ___... _... c.......____ ''''.__ .._.... ...... '^ _ e.....IIDln~11I nallnhAI insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thareby. 8.7 Indemnity. Except lor Lessor's gross negligence or wilnl/I misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and iIs agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents andlor damages, liens, judgments, penalties, allorneys' and consultants' fees, expenses andlor liabilities arising out of, IrMllving, or In connection with, the use andlor occupancy of the Premises by Lessee. If any action or proceeding Is brought against Lessor by reason 01 any 01 the Ioregoing mailers, Lessee shalll/pon notice defend the sarne at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim In order to be defended or indemnified. 8.8 Exemption of Lessor from Uablllty. Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, Invilees, customers, or any other person in or about the Premises, whether such demage or injury Is caused by or resulls from lire, sleam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting IIxlures, or from any other cause, whether the said Injury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places. Lessor shall not be liable for any damages arising lrom any act or neglact of any other tenant of Lessor nor front-the feilure 01 Lessor to enforce tha provisions of any other lease in the Project. Nolwilhstancfmg Lessor's negligance or breach 01 this Leese, Lessor shall under no circumstances be liable for injury to Lessee's business or for any loss of income or profiltherefrom. 9. Damage or Dulructlon. 9.1 Definitions. (a) "Premises Partlsl Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or lass lrom the date of the damage or destruction, and the coslthereof does not exceed a sum equal to 5 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage Is Partial or Total. (b) "Premises Total Destruction" shall mean damage or destruction to the improvemants on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the damage or destruction andlor the cost thereof exceeds a sum equal to 5 month's Base Rent. Lessor shall notify Lessee in writing wllhin 30 days lrom the date of the damage or destruction as to whether or not the damage is Partial or Total. (c) "Insured Loss" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations. and Utility Installations and Trade Fixtures, which was caused by an event required to be COII8red by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits Irwolved. (d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolllion, debris removel and upgrading required by the operation of Applicab1e Requirements, and wllhout deduction lor depreciation. (e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condKlon irMllving the presence of, or a contamination by, a Hazardous Substence as defined in Paragraph 5.2(a), in, on, or under the Premises which requires repair, remediation, or restoration. 9.2 Partial Damage. Insured Loss. "a Premises Partial Damage that Is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessor's elactlon, make the repeir of eny damage or destruction the total cost to repair of which is $5,000 or lass, end, in such event, Lesaor shaH make any applicable insurance proceeds available to Lessee on a reasonable basis lor that purpose. Notwithstanding the Ioregoing, " the required insurance was not in Iorce or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall prompUy contribute tha shortage in proceeds as and when required to complete said repairs. In the event, however, such shortage was due to the feet that, by reason of the unique nature of the improvements, full replacement cost insurance COII8rage was not commercially reasonable and available, Lessor shall have no obligation to pay lor the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor wllh the funds to cover same, or adequate assurance thereof, within 10 dsys following receipt of wrlllen notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof wllhin said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in fulllorce and effect. If such lunds or assurance are not receiwd, Lessor may nevertheless elect by wrlllen notice to Lessee within 10 days thereafter to: (I) make such restoration and repair as is commerciaUy reasonable wllh Lessor paying any shortage in proceeds, in which case this Lease shall remain in full Iorce and effect, or (ii) have thJs Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any lunds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some Insurance coverage, but the net proceeds of any such insurance shall be made available lor the repairs il made by either Party. 9.3 Partial Damage. Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or wilnul act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may ellher: (I) repair such damage as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in fulllorce and effect, or (i1) terminate this Lease by giving wrlllen notice to Lessee within 30 days after receipt by Lessor of knowledge oltha oocurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor eJects to terminate this Lease, Lessee shall have the right wllhin 10 days after receipt of the termination notice to give wrillen notice to Lessor of Lessee's commltment to pay lor the repair of such damage without reimbursement from Lessor. Lessee shall provida Lessor with said funds or satislactory assurance thereof within 30 days after making such commllmenl. In such evenllhls Lease shall continue In fulllorce and effect, and Lessor shall proceed to make such repeirs as soon as reasonably possible after the required funds ara _ilable. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in tha termination notice. 9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 50 days Iollowing such Destruction. If the damage or destruction was caused by the gross negligence or wilnul misconduct of Lessee, Lessor shall halle the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6. 9.5 Damage Near End of Term. If at any time during the last 5 months of this Lease there is damage for which the cost to repair exceeda one month's Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date 01 occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of oocurrence of such dsmage. Notwithstanding the Ioregolng, if Lessee at that time has an exercisable option to extend this Lease or to purchese the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in Insurance p~ (or adeq.u~te ~ra~c:e ther_~f) need&~ tOITl,,:'" ~h....;;~;~ VOl Of bal~~;,..ll-,;; .earli~r 01 (il,ll.e.dale whlch.~ .10~)'S ..fter ---,...... 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(a) Regardless 01 Lesso~s consent, no assignment or sublelling shall: (i) be effective wRhout the express wrmen assumption by such assignee or sublessee 01 the obligations 01 Lassee under this Laase, (II) release Lessee 01 any obligations hereunder, or (iii) alter the primary liability 01 Lessee lor the payment 01 Rent or lor the performance 01 any other obligations to be performed by Lessee. (b) Lassor may accept Rent or performance 01 Lessee's obligations lrom any person other than Lessee pending approval or disapproval 01 an assignment. Neilher a delay in the approval or disapproval 01 such assignment nor the acceptance 01 Rent or performance shall constitute a waiver or estoppel 01 Lesso~s right to exercise its remedies lor Lessee's Default or Breach. (c) Lesso~s consent to any assignment or subletting shall not constllute a consent to any subsequent assignment or subletting. (d) In the event 01 any Delault or Breach by Lassee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible lor the performance 01 Lessee's obligations under this Lease, Including any assignee or sublessee, wilhout first exhausting Lasso~s remedies against any other person or entity responsible therelor to Lassor, or any security held by Lassor. (e) Each request lor consent to an assignment or subletting shall be in writing, accompanied by Inlormatlon relevant to Lesso~s determination as to the financial and operational responsibility and approprfateness 01 the proposed assignee or sublesaee, including but notlimiled to the intended use and/or required modllicatlon 01 the Premises, II any. Lessee egress to provide Lessor wilh such olIIer or addltlonallnlormation and/or documentation as may be reasonably requested. (See also Paragraph 36) (I) Any assignee 01, or sublessee under, this Lease shall, by reason 01 accepting such assignment or entering Into such sublease, be deemed to ha_assumed and agreed to conlorm and comply wiIh each and every term, covenant, condllion and obligation herein to be obseMld or performed by Lassee during the term 01 said assignment or sublease, other than such obligations as are contrary to or inconsistent wilh provisions 01 an assignment or sublease to which Lassor has specifically consented to In writing. (g) L~s consent to any assignment or sublelllng shall not transfer to the assignee or sublessee any Option granted to the original Lassee by this Laase unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 12.3 Additional Terms and Conditions Applicabla to Subletting. The following terms and conditions shall apply to any subletting by Lassee 01 all or any part 01 the Premises and shall be deemed Included In all subleases under this Laase whether or not expressly incorporated therein: (a) Lessee hereby assigns and translers to Lessor all 01 Lessee's Interest In all Rent payable on any sublease, and Lassor may collect such Rent and apply same toward Lassee's obligations under this Laase; provided, however, that until a Breach shall occur in the performance 01 Lassee's obligations, Lassee may collect said Rent. Lessor shall not, by reason 01 the foregoing or any assignment 01 such sublease, nor by reason 01 the collection 01 Rent, be deemed liable to the sublessee lor any failure 01 Lessee to perform and comply wiIh any 01 Lassee's obligations to such sublessee. Lessee hareby irrevocably authorizes and directs any such sublessee, upon receipt 01 a writlen notice lrom Lessor stating that a Breach exlsts In the performance of Lessee's obligations under this Laase, to pay to Lessor aU Rent due and to become due under the subleese. Sublessee shell rely upon any such notice from Laasor and shell pay all Rents to Lessor wilhout any obligation or right to inquire as to whether such Breach lIXista, notwithstanding any claim from Lassee to the contrary. (b) In the event 01 a Breach by Lassee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations 01 the sublessor under such sublease lrom the time 01 the exercise 01 said option to the expiration of such sublease; provided, however, Lessor shell not be liable lor any prepaid rents or security depilsil paid by such sublessee to such sublessor or lor any prior Deleulls or Breaches 01 such sublessor. (c) Any meller requiring the consent 01 the sublessor under a sublease shall also require the consent 01 Lassor. (d) No sublessee shalllurther assign or sublet all or any part 01 the Premi_ wilhout Lass~s prior writlen consent. (e) Lessor shall deliver a copy 01 any notice 01 Default or Breach by Lassee to the sublessee, who shall have the right to cure the Defauil 01 Lessee wilhln the grace period, if any, specllled In such notice. The sublessee shall have a right 01 reimbursement and offset Irom and egainst Lassee lor any such Defaults cured by the sublessee. 13. Defllult; Breach; Rameclies. 13.1 Default; Breach. A "Default" is defined as a lailure by the Lassee to comply wilh or perform any 01 the terms, covenants, conditions or Rules and Regulations under this Laase. A "Breach" Is defined as the occurrence of one or more 01 the loIlowIng Defaults, and the failure 01 Lassee to cure such Default wilhin any applicable grace period: (a) The abandonment 01 the Premises; or the vacating 01 the Premises without providing a commercially reasonable level 01 security, or where the coveraga of the property insurance described in Paragraph 8.3 Is jeopardized as a resuil thereol, or wiIhout providing reasonable assurances to minimize potential vandalism. (b) The failure of Lessee to make any payment 01 Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lassor or to a third party, when due, to provide reasonable evidence 01 insurance or surety bond, or to IuUIII any obligation under this Laase which endangers or threatens life or property, where such failure conllnues lor a period 01 3 business days Iollowing wrfltan notice to Lassee. (c) The failure by Lessee to provide (i) reasonable written evidence 01 compliance wilh Applicable Requirements, (ii) the service contracts, (ill) the rescission 01 an unauthorized assignment or subletting, (Iv) an Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41 (easements), or (viii) any other documentation or inlormation which Lessor may reasonably require 01 Lassee under the terms of this Laase, where any such failure continues lor a period of 10 days Iollowlng written nollce to Lessee. (d) A DeIauM by Lessee as to the tarms, covenants, conditions or provisions 01 this Laase, or 01 the rules adopted under Paragraph 2.9 hereol, other than those described In subparagraphs 13.1 (a), (b) or (c), above, where such Defauil conllnues lor a period 01 30 days alter written notice; provided, however, that if the nature 01 Lessee's Default Is such that more than 30 days are reasonably required lor i1s cure, then II shall not be deemed to be a Breach if Lessee commences such cure wilhin said 30 day period and therealter diligenlly prosecutes such cure to completion. (e) The occurrence 01 any 01 the lollowlng events: (i) the making of any general arrangement or assignment lor the benefit 01 credilors; (i1) becoming a "debtor" as defined in 11 U.S.C. ~ 101 or any successor staMe thereto (unless, in the case 01 a petillon filed against Lassee, the same Is dismissed wilhin 60 days); (1II) the appointment 01 a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or 01 Lassee's Interest in this Laase, where possession is not restored to Lessee within 30 days; or (Iv) the ..ttechment, axacution or other judiclal seizure of substentlaHy ..II 01 Lessee's assets located at the Premises or of Lassee's interest in this Laase, where such seizure is not discharged wilhin 30 days; provided, however, in the event that any provision 01 this subparagraph (e) Is contrary to any applicable law, such provision shall be 01 no Ioroe or eIIect, and not affect the validity 01 the remaining provisions. ,.,. 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JO ....1 a41 Japun a(qBI!BhB J811B8Ja4 JO MOU .<p&W8J J8410 ~e 8nSlnd (0) 'UOlssessod 011411IJ s,eessa, a4110 uO!leU!WJ8111 al"lllSuoo IOU 1I114s 'S\S8J8111\ ....OSS8' 84110810Jd 01 JMI808J e jO IU8WIU!oddll a41 JO,pUll 'l8JaJ 01 SlJ0lI8 '8OUBu81ulew 10 SlOII 'sUO!leI!W!I 81Q1looSlllll 01 ~uo lOll!qns 'u6!sse JO 18Jqnl AlIW eess., IU8M1l0l4M U! 'anp 18wooeq II SlllU81:1 a41 J8^OO8J pUll uo!ssassod 011411~ s,eess8' pUB 8Sll" 841 anu!lUOn (q) 15.2 Assumption of Obligations. Any buyer or transleree of Lessor's interest in this Lease shall be deemed to have assumed Lessor's obligation hereunder. Brokers shell be third party beneficiaries of the provisions of Paragraphs 1.10, 15,22 and 31. If Lessor fails to pay to Brokers any amounts due as and lor brokerage fees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker may send wrllten nolice . to Lessor and Lessee of such lailure and if Lessor lails to pay such amounts within 10 days alter said notice, Lessee shall pay said monies to Its Broker and offset such amounts against Rent. In addition, Lessee's Broker shall be deemed 10 be a third party beneficiary of any commission agreement entered into by andlor between Lessor and Lessor's Broker lor the limited purpose of collecling any brokerage fee owed. 15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other thaI It has had no dealings with any person, firm, broker or finder (other than the Brokers, If any) In connection with this Lease, and that no one other lhan said named Brokers is entitled to any commission or finder's fee In connection herewith. Lessee and Lessor do each hereby agree to Indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' laes reasonably incurred with respeel thereto. 16. Estoppel Certmcates. (a) Each Party (as "Responding Party") shall within 10 days alter written notice from the other Party (the "Requesting Party''' execute, acknowledge and deliver to the Requesting Party a statement In writing In lorm similar to the then most current "Estoppel Certificate" form published by the American Industrial Real Estate Association, plus such additional Inlormation, confirmation andlor stateme..ts as may be reasonably requested by the Requesting Party. (b) "the Responding Party shalllail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease Is in full force and effecl without modification except as may be represented by the Relluesting Party, (II) there are no uncured delaults in the Requesting Party's performance, and (ill) If Lessor is the Requesting Party, not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certfficate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. (c) "Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall deliver to any polential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee's financial statements for the past 3 years. All such financial statements shall be receilled by Lessor and such lender or purchaser In confidence and shall be used only lor the purposes herein set forth. 17. Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time In question of the fee tllle to the Premises, or, if this is a sublease, of the Lessee's Interest in the prior lease. In the event of a transfer of Lessor's title or interest In the Premises or this Lease, Lessor shall deliver to the transferee or assignee (In cash or by credit) any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aloresaid, the prior Lessor shall be relieved of all liability with respect to the obligations andlor covenants under this Lease thereafler to be performed by the Lessor. Subject to the foregoing, the obligations andlor covenants In this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall In no way affect the validity of any other provision hereof. 19. Days. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Lease shall mean and refer to calendar days. 20. Limitation on Liability. The obligations of Lessor under this Lease shall nol constitute personal obligations of Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Project, and to no other assets of Lessor, for the satislaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members, directors, offICers or shareholders, or any of their personal assets for such satislaction. 21. Time of Essence. Time is of the essence with respeel to the performance of all obligations to be performed or observed by the Parties under this Lease. 22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties wRh respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys' fees) of any Broker with respect to negotiation, execution, delivery or performance by eRher Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconducl of such Broker. 23. Notices. 23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered meil or U.S. Postal Service Express Mail, with postage prepaid, or by lacsimile transmission, and shall be deemed sufficiently given ff served in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the other specity a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all noticas to Lessor shall be concurrentlY,transmltted to such party or parties at such addresses as Lessor may from time to time herealter designate in writing. 23.2 Date of Notice. Any notice sent by registered or certified mail. return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date Is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 48 hours after the same Is addressed as required herein and mailed with postage prepaid. Notices delivered by UnRed States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices transmitted by lacslmlle transmission or similar means shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, ~ shall be deemed received on the next buainass day. 24. Waivers. 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JalfOJe lions Aq P"^!809J 9al elll peeoxe IOU IIB4S esee, S'4I 01 6UIIB,eJ UO!SSIWO JO IOJJa 'Ainp 10 1I0eaJq Aue Ol108dseJ III!M Je~OJe Aue 10 '(seal ,SAeUJOlle pue SISoo iJnOO 6u!pnloul) Al!l!qell aLlJ. '41ed Jelll!a Aq 1091all 1I0eelq JO lInel9p Aue 01 loedsal IIIIM AI!l!q!SUOdS81 ou 8I\BII SJ9lfOJS (q) ',"UOISS9IOJd IU91edwoo e Ilnsuoo 'pel!S9p Sl eO!^pe XllIlO ,IlBa) jl 'elelsa le9J ,"oqe eSl^Pe 01 pallllenb uOSJed e S! lue6e elelse leeJ \f 'uo,lOesUll.l1 ellllo 6u!PU&lSJepun J!elll sseldxe Alelenbap" Aellllelll elnSSB 01 slueweeJ6e lie peeJ AlIllj9JeO Premises and to unlock all doors in or upon the Premises other than to files, vaulls and safes, and In the case of emergency to enter the Premises by any reasonably appropriate means, and any such entry shall not be deemed a forcible or unlawful entry or detainer of the Premises or an eviction. Leuee waives any cherges for damages or Injuries or Interference with Lessee's property or business in connection therewith. 33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lesso~s prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction. 34. Signs. Lessee shall not place any sign upon tha Project without Lesso~s prior written consent. 35. Termination: Merger. Unless specifically stated otherwise In writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor lor Breach by Lessee, shall automatically terminate any sublease or lesser estete in the Premises; provided, however, that Lessor may elect to continue anyone or all existing subtenancies. Lesso~s failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser Interest, shall constllute Lesso~s election to have such event constitute the termination of such interest. 36. Con.ents, Except as otherwise provided herein, wherever in this Lease the consent of a Party Is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lesso~s actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lesso~s consent to any act, assignment or subletting shall not constitute an acknowledgment that no Defaull or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the lime of such consent. The failure to specify herein any particular condition to Lesso~s consent shall not preclude the imposition by Lessor at the lime of consent of such further or other conditions as are then reasonable with reference to the partiCular matter for which consent Is being given. In the event that ellher Party disagrees wllh any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and In reasonable detail within 10 business days following such request. 37. Guarantor. 37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the American Industrial Real Estete AssocIation. 37.2 Default. It shall constlMe a Defaull of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authorily of the party signing on Guaranto~s behalf to obligate Guarantor, and in the case of a corporate Guerantor, a certified copy of a resolution of Its board of directors authorizing the making of such guaranty, (b) current financial statements, (c) an Estoppel Cerllflcate, or (d) written confirmation that the guaranty is still in effect. 38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 39. Options. If Lessee Is granted an Option, as defined below, then the following provisions shall apply. 39.1 Deflnhlon. uOptlon" shall mean: (a) the right to extend the term of or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase or the right of first refusal to purchase the Premises or other property of Lessor. 39.2 Options Personal To Original Lessee. Any Option granted to lessee In this Lease is personal to the original lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, iI requested by Lessor, wllh Lessee certifying that Lessee has no intention of thereafter assigning or subletting. 39.3 Multiple Optlons. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 39.4 Effect of Defauh on Options. (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice 01 Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof Is given Lessee), (iii) during the lime Lessee Is In Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate DefauR, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option. (b) The period 01 time within which an Option may be exercised shall not be extended or enlarged by reason 01 lessee's Inability to exercise an Option because of the provisions of Paragraph 39.4(a). (c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, ii, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (wllhout any necessity of Lessor to give notice thereof), or (il) if Lessee commits a Breach of this Lease. 40. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibilily for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties. In the event, however, that Lessor should elect to provide security services, then the cost thereof shall be an Operating Expense. 41. Reservations. (a) Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements, rights and dedications that lessor deems necessary, (iI) to cause the recordation of parcel maps and restrictions, (Iii) to create and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not unreasonably interfere with the use of the Premises by Lessee. Lessor may also: change the name, address or tllle of the Building or Project upon at least 90 days prior written nollce; provjde and install, at Lessee's expense, Building standard graphics on the door of the Premises and such portiCns of the Common Areas as Lessor shall reasonably deem appropriate; grant 10 any lessee the exclusive right to conduct any business as long as such exclusive right does not conflict with any rights expre~sly given herein; and to place such signs, notices or displays es Lessor reasonably deems necessary or advisable upon the roof, exterior of the Building or the Project or on pole signs in the Common Areas. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights. The obstruction of Lessee's view, air, or light by any structure erected in the vicinity of the Building, whether by Lessor or third parties, shall in no way affect this lease or impose any liability upon Lessor. _ (b) Lessor also reserves the right to move Lessee to other space of comparable size in the Building or Project. Lessor must provide at least 45 days prior written notice of such move, and the new space must contain improvements 01 co"1l!arable qualily lo.tho~.e ~nt~in~d "!.ithin th" Pr..mi~s. .Lesso~ shall pay the reasonable out of pocket costs that Lesseil incur. ....ith ragar':: to such ,,'" .._-,---'"--,._...,~. .-, ",',." .....--...-- .. on its behalf. Each party shall, within 30 days after request, deliver to the other party satisfactory evidence of such authority. (b) If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and severally liable hereunder. It is agreed that anyone of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such document. 44. Conflict. Any confllcl between the printed provisions or this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 45. Offer. Preparation of this Lease by either party or their agent and submission of same to the other Party shall not be deemed an oller to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 46. Amendments. this Lease may be modified only in writing, signed by the Parties in Interest at the lime of the modification. As long as they do not materially change Lessee's obligations hereunder, Lessee agrees to make such reasonable non-monetary modlflC8tions to this Lease as may be reasonably required by a Lender in conneclion with the obtaining of normal financing or refinancing of the Premises. 47. Multiple Parties. If more than one person or entity is named herein as either Lessor or Lessee, such multiple Parties shall have joint and several responsibility to comply wllh the terms of this Lease. 48. Waiver of Jury TrIal. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. 49. Mediation and Arbitration of DIsputes. An Addendum requiring the Mediation and/or the Arbllratlon of all disputes between the Parties and/or Srokers arising uul uf this Lease w is 0 is not attached to this Lease. 50. Americans with Disabilities Act. In the event that as a result of Lessee's use, or intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises. Building, Projecl andlor Common Areas, the Parties agree that such modifications, construction or improvements shall be made at: 0 Lesso~s expense 0 Lessee's expense. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED. THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESP~CT TO THE PREMISES. ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO: 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING AND SIZE OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE. WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA. CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED. The parties hereto have executed this Lease at the place and on the dates specified above their respective signalures. Executedat: ~;al"l R~rl"l::.rn; l"lr'\ Executed at: San Bernardino on: By LESSOR: TUf: 'Rn+-~""pT"; C:::~~ r.T,r on: By LESSEE: Ci tv of San Bernardino By: Name Printed: Greqorv Villanueva Title: By: Name Printed: Judith Valles Title: Mavor By: Name Printed: Tille: Address: By: Name Printed: Title: Address: Telephone: ( Telephone: ( LESSOR'S BROKER: LESSEE'S BROKER: Alln: Address: Alln: Address: Telephone Telephone These forms Ire often modified to meet chlnglng requirements olllw Ind needs of 1he Indultry. AIwIIyI WIlle or cell to mike lure you Ire utilizing the mOlt currenllorm: Arnerlcen Indultrlel Rell Estete Auoclltlon, 700 South Flower S1neI, Sulle 600, Loa Angeles, CA 90017. (213) .7-am. OCopyrlghl1l199-By Amerlcen Induntel Real Emte Alsoclatlon. . All r1ghll nurwd. No perl of thMe works may be reproclUCld In Iny farm without perm....on In wrllIng. lIW-l"tldO WIIO:l olWl\l~1 \KIRO,_ ~ ..... J8l.IIOIIIIUI UlI:llJ8wv-.&l 0 - .. RULES AND REGULATIONS FOR STANDARD OFFICE LEASE - Dated: By and Satw..n GENERAL RULES 1. "Lessee shall not suller or permit 1I1e obstruction of any Common Areaa, including dr_ys, walkways and stairways. 2. l.essor reseMls 1I1e right lD refuse access lD any persons Lessor in good faith judges to be a 1I1reatlD lha sefely and reputation of lha Project and its occupants. ' 3. Lese.. shall not make or permit any noise or odors lhat annoy or Interfere with other lessees or persons having buainass within lha Project. 4. I.essee shan not keep aninals or birds within 1I1e Project, and shall not bring bicycles. motorcycles or other WIhlcles Into areas not deslgnatad as authorized lor same. 5. Lessae shall not make, suIIer or perm" litter except in appropriate receptacles for lhat purpose. 6. Lessae shall not aIIer any lock or Install new or addillonallocks or botts. 7. Lessea shall be responslbla for 1he inappropriate use of any toilet rooms, plumbing or other utlllIles. No Iorelgn substances of any kind are 10 be inserted 1I1ereln. 8. Lessee shall not deface 1he walls. partl\lons or o1her suriaces of 1he Premises or Project. 9. Lessee shall not suller or perm" anylhing in or around 1he Premises or Building lhat causes excessive vibration or floor loading In any part of 1I1e Project. 10. FumHure, sign"icant freight and equipment shall be mowd into or out of 1he building only with 1he LeseO'" knowledge and oonaenI, and subject lD such reasonable IimUellona, techniques and timing, as may be designated by l.essor. Lessae shall be responaible lor any damage 10 1he 0llI0e Buldlng Project arising from any such aclivity. 11. l.essae shall not employ any service or contractor for services or work to be pemrmed in 1I1e Building,lllC08pI as approved by Lessor. 12. l.essor reserves 1he rightlD close and lock 1I1e Building on Saturdays, Sundays and Building Holidays, and on other days between lha hours of P.M. and _ A.M. of 1I1elotlowing day. If Lessae uses 1I1e Premises during such pariods. Lessae shall be responsible lor securely locking any doors " may have opened lor entry. 13. l.essae shall return all keys at1l1e termination of its tenancy and shall be responsible for 1I1e cost of replacing any keys lhat are lost. 14. No window coverings, shades or awnings shall be Installed or used by l.essae. 15. No Lese... empIoyse or invitee shall go upon the rooI of 1I1e BuUdlng. 16. l.essae shall not suller or permit smoking or carrying of lighted cigars or cigarettes In areas reasonably designatad by I.essor or by applicable governmentaJ agencies as non-smoldng areas. 17. Lessae shall not use any method of heating or air conditioning o1her than as provided by Lessor. 18. I.essee shall not Install, maintain or operete any vending machines upon 1he Premises without Lessor's wri1ten consent 19. The Premises shall not be used for lodging or manufacturing, cooking or food praparstlon. 20. Lessae shall comply with all safety, fore protection end evacuation regulallons established by I.essor or any applicable govemmental agency. 21. Lessor rasaMlS 1I1e right to _ any one of these rules or regulations, and/or as 10 any particular I.essee, and any such waiver shall not constitule a waiver of any olher rule or regulation or eny subeequent application thereof to such I.essee. 22. I.essee essumes all riskS from 1I1eft or vandalism and agrees to keap its Premises locked as may be required. 23. Lessor reserves 1he rightlD make such other reasonable rulas and regulations as " may from time 10 time deem necessary for 1he appropriate operation and safety of the Project and its occupents. Lessae agr..s to abide by 1I1ese and such rulas and regulallons. PARKING RULES 1. Parking areas shall be used only lor parking by vehiclas no longer than full size, passenger automobiles herein called "Permitted Size Vehicles: Vehicles other than Permitted Size Vehicles are herein referred to aa "Oversized Vehicles: 2. l.essee shaiI not perm" or allow any WIhlcles that belong to or are controlled by I.essae or I.essae's employaes, suppliers, shippers, custllmers, or invHees to be loaded, unloaded, or parked In areas other than those designated by I.esaor lor such activities. 3. Parking stickers or identification devices shall be 1I1e property of l.essor and be returned to I.essor by the holder 1hereof upon termination of 1he holde~s perking privilegas. Lessee will pay such replacement charge as is reasonably astabllshed by I.essor for 1he Ices of such devices. 4. Lessor reseMls the right 10 refuse 1he sale of monthly identification devices 10 any person or entity that willfully refuses to comply with the applicable rulas. regulationa, laws and/or agreements. 5. l.essor reserves the rightlD reIocete all or e part of parking spaces from ftoor to floor, within one floor, and/or to reasonably adjacent ollsIte locatlon(s), and 10 reasonably allocate 1I1em between compect and standard size spaeas. as long as 1I1e same complies with applicable laws. ordinances and regulations. 6. Users of the parking ereo will obey all posted signs end park only in the areas designated for vehicle parking. 7. Uniass 01l1erwise ins1rUCtod. every person using the parking area Is required 10 park and lock his own WIhlcle. Lesaor will not be responsible for any damage 10 vehiclas, Injury 10 persons or Ices of property. all of which riskS are assumed by 1he party using 1he parking area. 8. Validation, H established, will be permissible only by such method or methods as Lessor and/or"" licensee may establish at rates generally ---1:--'--- ,,_ __,___ __....;__ ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): <'0 -;;5-<);). Item # Vote: Ayes '13-4,"- 'I Nays--cr Change to motion to amend original documents: "- :2 Resolution # ;}.CJ::k) - \ '1 Go Abstain (:) Absent d,::'- Reso. # On Attachments: -=-- Contract term: - Note on Resolution of Attachment stored separately: --=- Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY Date Sent to Mayor: I., - .J.(" -0 :J.. Date of Mayor's Signature: Co- ;;l-)-o;? Date of Clerk/CDC Signature: 1- \ -0 -:r Date Memo ent for Signature: 60 Day Reminder Letter Sent on 90 Day Reminder Letter Sent on 45th day: See Attached: See Attached: Attached: Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234,655,92-389): Copies Distributed to: City Attorney r' Parks & Rec. Code Compliance Dev. Services Police Public Services Water Notes: NullNoidAfter: iDo O~.5.. }'6-;).(,,-0 I By: - Reso. Log Updated: ../ Seal Impressed: v' Date Returned: - Yes / No By Yes No~ By Yes No~ By Yes No-L By Yes No r' By EDA Finance Others: m~Or(~ ,/ MIS o rf1 U; BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.) Ready to File: .Il:I:C--- Date: ~- I-()~ Revised 01/ 12/0 I