HomeMy WebLinkAboutCarlsbad Equity Properties; 1999-11-22;19- by and between
COMMERCIAL LEASE
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Carlsbaa Equity Properties, A General Partnership (hereinatler relerred 10 as “Landlord”) and Citv of Carlsbad’ California
2. PREMISES. (hereinafter referred to as “Tenant”). 9 a
Landlord hereby leases lo Tenant and Tenant hereby leases horn Landlord, on Ihe terms and condilions herelnatler set lorth, that certain
real property and Ihe bullding and olher improvemenls located lhareon situated in the City ot Carlsbad
County of San Diego , State of California , commonly known as 2965 Roosevelt Street
and described as aDDroximately 3200 aouare ‘F’&%‘*??~‘improved office space referred to as
Suite B and Suite C IhW m5ert ICQII 0,rcwwJnl
(saStd +e;;$roperty is hereinafter called Ihe “Premises”).
The leim of this Lease shall be for thirty-six (36) months December 1, 1999
NotiBmber 30,. 2002 ’ commencing on
and endlng on . vrlafltns/yrarr, , unless sooner terminated as herelnalter provided. 4. RENT. Tenant shall pay to Landlord as rent tar the Premises lhe loltowing sums per monlh. in advance on Ihe lirsl day 01 each month durlng Ihe term 01 this Lease:
Ihe sum ol four-thousand, ninty dollars ILQ. WI) 15 4,090 .oo ) dollars per month:
During Ihe
) dollars per month.
withoul nOttCe or demand and wilhoul any deduction, olt~sel. or abatement in lawful money of the United Slates lo the Landlord at Ihe address stated herein for
notices or lo such other persons or such other places as the Landlord may desrgnate to Tenant m writing.
6. USE. Tenant shall use the Premises only for General offices
and ior no other purpose wlthout the Landlord’s prior wfilten consent. Tenant shall not do, bring or keep anything In or about the Premises that will cause a cancellation of any insurance covering the Premlset or the building in which the Premises are localed. II the rale 01 any Insurance carried by Ihe Landlord is increased as a result of Tenant’s use, Tenanl shall pay to Landlord within len (10) days after wrltlen demand from Landlord. the amount of any such increase. Tenant shall comply with all laws concerning Ihe Premises or Tenant’s use of the Premises, including wlthoul Ilmitation. Ihe obllgatlon al Tenant’s cosl lo aller, maintain. or restore Ihe Premises In compliance and conformity wlth all laws relaling 10 the condillt n, use. or occupancy 01 the Premises by Tenant during Ihe term 01 this Lease. Tenant shall nol use or permil the use or the Premises In any manner that will lend 10 Creale WaSle or a nUiSNICe or, II there shall be more lhan one tenant of Ihe building containing the Premises, which shall unreasonably dislurb any other tenant,
Tenant hereby accepts the Premises In lheir condilion existing as ot the dale (hat Tenanl possesses the Premises, subjecl to all applicable zoning, munlclpal. counly and slale laws, ordinances, regulations governlng or regulaling the use 01 the Premises and accepls this Lease subject thereto and to all matters dlrclosed thereby. Tenant hereby acknowledges that nelther lhe Landlord nor lhe Landlord’s agent has made any represenlalion or warranly lo Tenant as lo the sultablllty of lhe Premises for lhe conduct 01 Tenant’s business.
7. TAXES.
. a, . . . - .,#l* . . . - . . SUb-porlphr~~ (a)rbov9 and Arilcle 12, tenant at tenant’9 sole cost and expense rhall keep In good order, condltlon and repalr Ihe Pr#nfSeS and ov9ry psrl fhereol, lncludlnp, without limltatlon, all Tenant’s personal property, flxturss, signs, store fronts, plate glass, show WfndoW9, doors,
IntMOr walls, Interior COlllnp, tnd Rphtlnp tacllltles. if T9n9nt fattS IO perform fen9nt’S obllgatfons as Slated hereln, Landlord may at Its optlon (but ah¬ be required to), enter the Premises, after ten (10) day9 DrlOr IO Written nolfce to Tenant. out the same In aood order. condltlon and reoalr. and the costs thereof tooether wtth Interest thereon at the rate 01 ten HO%1
percent per annum shall become dueand payable as-addlllonai renfal to Landlord IdQether with Tenant’s nixt rental Installment. IO. ALTERATIDNS AND ADDITIONS.
I I
(a) Tenant Shall not, wlthout the Landlord’s prior wrftten consent, make any alteratlons, Improvements or addltlons In or about the Premises except for non. StruCtUral work which doe9 not exceed Sl,GGG.GG In cost. As a conditlon to glvlng any such consent, the Landlord ma requlm the Tenant to remove any such
alterations, fmprovements, or addltlons at the explratlon of the term, and lo restore the Premlsas to their prlof condltlon by p vtng Tenant lhlny (30) days wt-ftten notice I prior to the explratlon of the term that Landlord requires Tenant to remove any such alterations, improvements or addltlons that Tenant has made to the Premises. II Landlord 90 eleCt9, Tenant al Its sole Cost shall restore the Premises to the condltlon designated by Landlord In Its election before the fast day of the term of the Lease. BefOr COmmenClnQ any work relatlnp to the alteratlons, addltlons, or Improvements affecting the Premises, Tenant shall notify Landlord In wrltlnp of the
expected date Of the commencement of such work so that Landlord can post and record the appropriate notlces of non-responslblltty to protect Landlord from any mechanic’s llens, materlalman hens, or any other Ilens. In any event, Tenant shall pay, when due, all claims for labor and materials furnlshed to or for Tenant at or for Use In the PremlSeS. Tenant shall not permit any mechanic’s llens or materlalmen’s hens to be levled against the Premises for any labor or material furnlshed to
Tenant or clalmed to have been furnlshed to Tenanf or Tenant’s agents or contractors In connecflon wlth work of any character performed or clalmed to have been performed on the Premises by or at the dlrectlon of Tenant. Tenant shall have the right lo assess the valldlty of any such hen If, Immediately on demand by Landlord, Tenant procures and records a lien release bond meeting the requirements of Callfornla Clvll Code Sectlon 3143 and shall provlde tor the payment 01 any
sum that the Clalmant may recover on the claim (together with the costs of suit, If It Is recovered In the actlon). Unle99 the Landlord requires their removal as set forth above, all alteralions, lmprovemenls or addlllons which are made on the Premises by the Tenant shall become the roperty of Ihe Landlord and remaln upon and be surrendered wlth the Premises at the explratlon of the term. NOtWllhStandlnQ the prOVlSlOn9 of thls paragraph, P enant’s trade fixtures, furniture, equlpment and other machinery, other than that which Is afflxed to the Premises so that It cannot be removed wlthout material or structural damage lo the Premises, shall remain the property of the Tenant and removed by Tenant at the explratloo at the term 01 thls Lease. Il. INSURANCE; INDEMNITY.
(a) Fire Insurance.
p at As cost shall malntaln durlng Ihe term of this Lease on the Premises a pollcy or pollcles at standard fire and extended coverage Landlord
Insurance -. Said Insurance pollcles shall be Issued In the names of Landlord+&
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proceeds from anv such oollcy shall be used fb) Llabllltv Insurance. by Tenant for the replacement of personal property or the rest0
mage Insurance wllh a single combined ll9blllty usand (tlOO,OOO.OO) dollars, lnsurlng against se or occupancy 01 the Premises. Both public IlabIlIty the Indemnlty provlslons In Sub-paragraph (d) below, but the llmlts of such Both Landlord and Tenant shalt be named as addltlonal Insureds, and the poltcle9 shalt conlaln not be required to, procure and malntaln same er annum, shall become due and payable as
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(c) Waiver of Subrogation. Tenant and Landlord each walves any and all rlghls of recovery apalnst the other, or agalnst the olficers, employees, agenls, and represenlallves of Ihe
other, for loss 01 or damage lo such walvlnp party or Its property of the property 01 others under Its conlrot, where such loss or damage Is Insured agatnst under any InSUranCe policy In force at the lime of such loss or damage. Each party shall cause each Insurance policy obtalned by It hereunder to provlde that the
insurance company Waives all rlght ol recovery by way 01 subrogation against either party In connection with any damage covered by any such policy. (d) Hold Harmless. Tenant shall lndemnlly and hold Landlord harmless from and against any and all claims arlslng from Tenant’s use or occupancy of the Premises or from the conduct of Its business or from any aCtMy, work, or lhlngs which may be permitted or suflered by Tenant In or about the PremlSeS lnctudlng al damage, costs, attorney’9 lees. expenses and llabtlltle9 Incurred In the delense 01 any claim or actlon or proceeding arlslng theretrom. Except tot Landlord’s wtlllul or Qrossly negligent conduct, Tenant hereby assumes all risk 01 damage lo property or Injury to person In or about the Premises from any causa, and Tenant hereby waives all claims In respect thereof against Landlord.
(e) ExemptIon of Landlord from Llablllty. Exceot for Landlord’s wlllh~l or orosstv neolloent conduct. Tenant herebv aorees that Landlord shall not be tlable ior anv tnlurv to Tenant’s buslness or loss Of lncome theretrom or for damage lo tits Qoods,“wares, m8rChandlS8, or Olherpr~pefly ot Tenanl, Tenam’s employees, lnvllees, ‘customers or any other person in or about the Premises: nor shalt Landlord be llabte lor Injury lo the parson of Tenant, Tenant’s employees, agenls, contractors, or lnvllees, whether such damage or lnlurv Is caused bv or results from fire. steam. electricitv. aas. water or rain. or from the breakaok. leakaoe. obstruction or other delects 01 aloes, sorlnklers wlres, appliances, iumbfng, air-condltlonlng. or tlQhtlnQ’fl&ss. or from any other cause, whether such damage results from condltlons‘arlslng‘upon the Premlses or upon ot R er portions of the bulldlng In which lh8 Premises are a parl. or trom any other sources or places. Landlord shall nol be liable to Tenant for any damages artsino tram any acl or neglect ot any other tenant, if any, 01 lhe building in which the Premises are located.
12. DAMAGE GR DESTRUCTION. (a) Damage a Insured. II, durlnp the term of this Lease, the Premises and/or the building and other Improvements In which the Premises are located are totally or partlalty destroyed rendering the Premises totally or parllally lnacceslble or unusable, and such damage or destrucllon was caused by a casualty covered under an Insurance policy required to be malntalned hereunder, Landlord shall reslore the Premises and/or the building and Other Improvements In which the Premises are located Into substantially the same condttlon as they were In Immediately b8fOre such damage or destruction, provlded that the resloratton can be made under the exlstlng laws and can be completed wlthln one hundred twenty (120) worklng days after the dale ol such deslruction or damage. Such d8ShIJCtlOn or damage shall not terminate this Lease. If the reStOratIOn Cannot be made In satd 120 day perlod, then wlthln fifteen (15) days aller the partlss hereto determlne that the restoration cannot be made In the time stated In this paragraph, Tanant may terminate lhls Lease lmm8diat8ly by giving nollce lo Landlord and lhe Lease will be deemed cancelled as ot the data of such damage or destructlon. II Tenant falls to terminate lhls Lease and Ihe restoration Is.permlttad under the exlstlng laws, Landlord, at Its optIOn, may terminate this Lease or restore the Premises and/or any other Improvements In which Ihe Premises are located wllhln a reasonable time and thls Lease shalt conllnue In full lorce and effect. If the exlsling laws do not permil the restoration, either party can terminate this Lease lmmedlatety by glvln B notlce to the other party. Notwlthstandlng the above, II the Tenanl Is the lnsunng party and it the insurance proceeds received by Landlord are not sufftclent toe tect such repair, Landlord shall give nOtICe to Tenant of Ihe amount required in addltlon lo th8 insurance proceeds lo ettect such repair. Tenant may, at Tenant’s oplion, contrlbule the required amount, but upon IallUre to do so wlthln thirty (30) days lollowing such notice, Landlord’s sole remedy shall be, at Landlord’s optlon and with no tlablllty to Tenant, to cancel and termlnata lhls Lease. II Tenant shall contrlbute such amounl to Landlord withln sald thirty (30) day perlod, Landlord shall make such repalrs as soon as
reasonably posslbte and this Lease shall continue In full lorce and ellecl. Tenant shall In no event have any right to reimbursement for any amount so contrlbuled. (b) Damage . Uninsured. In the event that the Premises are damaged or deslroyed by a casualty which Is not covered by the llre and extended coverage Insurance which Is required lo
be carried by the party designated In Anlcte 11(a) above, then Landlord shall restore the same; provided that If the damage or destruction Is to an extent greater than ten (10%) percent of the then replacement cost of the lmprovemenls on the Premlses (exclusive of Tenant’s trade llxtures and equipment and exctuslve of loundatlons and lootings), then Landlord may elect not lo restore and to lermlnale this Lease. Landlord musl give to Tenant Wrltten nOtICe of Its IntenllOn nol to restore wlthln thirty (30) days from the date of such damage or destruction and, If nol Qlven, Landlord shall be deemed to have elected to restore and In such event shall repalr any damage as soon as reasonably possible. In the event thal Landlord elecls lo Qlve such nollce 01 Landlord’s lnttntlon to cancel and terminate this Lease, Tenant ahall have the tlQht, wllhln ten (10) days alter receipt of such notlce, to give wrltten notlce to Landlord of Tenant’s lntentlon to repalr such damage al Tenant’9 expense, without reimbursement from Landlord, in which event the Lease shall continue In full force and elfect and Tenant shall proceed to make such
13. CONDEMNATION. II the Premises or any portton thereof are laken by Ihe power 01 emlnenl domaln, or sold by Landlord under Ihe lhreal 01 exerclsa of said power (all 01 which Is hereln referred lo as “condemnalion”), lhls Lease shall lermlnale as lo the part so laken as of the dale Ihe condemning aulhorlly lakes title or possosslon, whlchever occurs Ilrsl. If more lhan lwenty (20%) percent 01 the hoot area 01 any buildings on the Premises, or more than twenty (20%) percent ol the land area of lhe Premlsas nol covered wllh buildings, Is laken by condemnallon, eilher Landlord or Tenant may lermlnale lhls Lease as of Ihe dale Ihe condemning authority lakes possesslon by nOliCe In wrlllng 01 such electlon wllhln Iwenty (20) days aher Landlord shall have nolilled Tenant 01 such taking or, In Ihe absence of such nolice, then wllhln lwenty (20) days after the condemning aulhorily shall have laken possession. II lhls Lease Is nOl lermlnated by ellher Landlord or Tenant as provided hereinabove, then II shall remain In lull force and elfecl as lo the portlon 01 the Premises remalnlng, provided thal Ihe rental shall be reduced In proponion to the hoof area cl the bulldlngs laken wlthln Ihe Premises as bears lo Ihe Iota1 lloor area of all bulldlngs localed on Ihe Premises. Ir.l*r
All awards lor Ihe laklng 01 any part of Ihe Premises or any paymenl made under Ihe lhrsat of Ihe exercise 01 Ihdpower of amlnenl domaln shall be the property of Ihe Landlord, whelher made as compensallon IOr the dlmlnutlon of Ihe value of Ihe leasehold or for Ihe laklng 01 Ihe lee or as severance damages: provlded, however, that Tenant shall be ~solltled to any award lor toss of or damage lo Tenant’s trade llxtures and removable personal property.
Each party hereby waives the provisions cl Code of Civil Procedure 1265,130 allowlng eilher party lo pelitlon Ihe Superior Court lo ldrmlnale lhis Lease In the event 01 a oanlal taklno ol Ihe Premises. . Rent shall be abaied.or reduced during Ihe perlod from Ihe dale of taking--‘:’ bul all olhei obflgallons ol Tenant under lhls Lease shall rsmaln In lull force and effect9e
14. ASSIGNMENT AND SUBLETTING. Tenant shill nol voluntarily or byoperaflon of law assign, Iransler, sublet, mortgage, or otherwlse transfer or encumber all or any part of Tenanl’s Interest In lhis Lease or In the Premises wlthoul Landlord’s prior wrltlen consenl which consent shall nol be unreasonably wllhheld. Any attempted afslgnment, transfer, ‘* mortgage, encumbrance, or sublelllng wllhoul such consenl shall be void and shall ConSlltule a breach al lhls Lease. II
Regardless of Landlord’s consenl. no subletting or assignmenl shall release Tenant al Tenants obllgatlon lo pay the renl and lo perlorm all other obllgatlons lo be perlormed by Tenant hereunder lor Ihe lerm of lhis Lease. The acceptance 01 renl by Landlord from any other person shall not be deemed a waiver by Landlord 01 any provislon hereol. Consenl to one assignment or sublelling shall not be deemed consenl lo any subsequenl asslgnmenl or sublelllng. 15. DEFAULT. (a) Evenls of Delault. The occurrence of any one or more of Ihe lollowing events shall constitute a defaull and breach of this Lease by Tenant: (1) FailUr8 lo pay rent when due, II Ihe lailure continues lor live (5) days aller written notlce has been given lo Tenant. (2) Abandonmenl and vacalion of Ihe Premises [failure lo occupy the Premises lor lourteen (14) conseculive days shall be deemed an abandonment and vacation). (3) Failure lo pertorm any other provlsion of this Lease il the lailure to perlorm Is nol cured wilhln thirty (30) days after written notice thereof has been given to Tenanl by Landlord.,If Ihe default cannol reasonably be cured within said lhiny (30) day period, Tenant shall not be In delaull under this Lease II Tenant commences lo cure the defaull wilhln Ihe lhlrty (30) day perlod and dillgenlly prosecutes Ihe same IO completion, (4) The making by Tenant of any general assignmenl, or general arrangemenl lor lhe benelil 01 credtlors; the filing by or against Tenant 01 a petltlon lo have Tenant adjudged a bankrupt or a pelltlon lor reorganizallon or arrangement under any law relating lo bankruplcy unless Ihe same Is dlsmlssed wllhln slxfy (60) days; the appolnlmenl 01 a lruslee or receiver to take possession 01 subslanlially all of Tenant’s assefs localed al lhe Premises or 01 Tenant’s lnlerest In the Lease, where possessloo Is nOI restored to Tenant within thirty (30) days: or Ihe atlachment, execulion or other judlclal seizure ol substantially all 01 Tenant’s assets located at Ihe Premlses or 01 Tenanl’s lnlerest In Ihe Lease, where such seizure is nol descharged wilhin lhirty (30) days. Nollces given under thls paragraph shall specily the alleged delaull and the applicable lease provisions, and shall demand lhal Tenanf perform Ihe provlslons of lhls Lease of pay the rent lhal Is in arrears as Ihe case may be. within the applicable period of lime. No such notice shall be deemed a lorfeilure or a lermlnallon of this Lease unless Landlord so elecls In the nollce. (b) Landlord’s Remedies. The Landlord Shall have Iha lollowing remedies il Tenant commits a delault under lhls Lease. These remedies are not exclusive but are cumulative and In addltlon to any remedies now or hereafter allowed by law. Landlord can continue lhis Lease In lull force and elfecl. and Ihe Lease will continue In eltect so long as Landlord does not lermlnate Tenant’s right to possession, and Ihe Landlord shall have Ihe rlghl IO collecl ran1 when due. During Ihe period lhal Tenant Is in delaull, Landlord Can enler Ihe Premises and relet them, or any part 01
Ihem, lo third partles lor Tenant’s accounl. Tenant shall be liable immedialety lo Ihe Landlord lor ail costs the Landlord incurs In releltlng the Premises, lncludlng, wilhout limllalion, brokers’ commlsslons, exoenses 01 remodelina Ihe Premises reaulred bv Ihe relellina. and like cosls, ReletllnO can be for a oerlod shorter or lonoer lhan Ihe remaining term of lhls Lease, Tenant shall pay lo Landlord Ihe renl due under this’lease on Ih; dales Ihe rent Is due, lesi the rent Landlord receives from a’ny retelling. No act by Landlord allowed by lhis paragraph Shall lerminale this Lease unless Landlord nolilies Tenant lhal Landlord elects to Iermlnale thts Lease. Ailer Tenant’s default and for So long as Landlord has nit lerminaled Tenant’s righl lo possession 01 Ihe Premsies. II Tenant oblains Landlord’s consenl, Tenant shall have the riQhL lo assume or sublel ils inleresl in Ihe Lease, bul Tenanl shall nol be feleased horn liability. Landlord’s consenl lo Ihe proposed assignmenl or $ublel(lnQ shall
not be unreasonably withheld. II Landlord elecls lo relel Ihe Premises as provlded in lhis paragraph, any renl lhal Landlord receives lrom such relelling shall apply flrsl to the payment ol any
Indebtedness lrom Tenant lo Landlord olher than Ihe renl due horn Tenant lo Landlord; secondly, lo all costs, tncludlng maintenance, Incurred by Landlord In such relelllng: and third, lo any renl due and unpaid under this Lease. Aher deducting Ihe paymenls relerred lo in lhls paragraph. any sum remalnlng horn Ihe rent Landlord receives IrOm such relelllng shall be held by Landlord and applied in payment of lulure rent as renl becomes due under lhls Lease. In no event shall lenanl be entitled lo any excess renl received by Landlord. II, on Ihe date renl Is due under lhls Lease, the renl received trom lhe relelting Is less than lhe rent due on that dale, Tenant shall pay lo Landlord, In additlon lo the remalnlng renl due, all cosls, including mainlenance. lhal Landlord shall have incurred In releltlng thal remain after applylng Ihe rent received from the relelllng as provided In this paragraph. Landlord an, al Its option, lermtnale Tenant’s right lo possesslon of Iha Premlses at any tlme. No act by Landlord other lhan Qlvlng wrltten n0tk.X to Tenant shall lermlnale Ihls Lease. Acts 01 mainlenance, ellorls lo relet the Premises. or Iha appolnlment of a receiver on Landlord’s lnlllallve lo protect Landlord’s lnlsresl In lhls Lease shall not constllute a lermlnatlon of Tenant’s right lo possesslon. In the event 01 such lermlnallon, Landlord has the rlghl to recover horn Tenant: (1) The woflh, al Ihe Urns of Ihe award, al Iha unpald rent lhat had been earned al Ihe lime of Ihe lermlnallon of thls Lease: (2) The worth, at the lime of Ihe award, of the amounl by which Ihe unpaid renl lhat would have been earned after Iha date of the lermfnallon 01 this LeaSa until lhe lime of Ihe award exceeds the amount 01 the loss of rent that Tenanl proves could have been reasonably avolded: (3) Tha worth, al the lime of Ihe award, of Ihe amount by which Ihe unpald renl lor the balance 01 the lerm after the lime of Ihe award exceeds Ihe amount 01 the loss of rent that Tenanl proves could have been reasonably avolded: and (4) Any other amount, lncludlng court costs, necessary to compensale Landlord lor all detrlmenl proximalely caused by Tenanl’r default. “The worth at Ihe lime 01 the award,” as used In (1) and (2) 01 lhls paragraph Is to be computed by allowlng Interesl al Iha maxlmum rate an lndlvldual Is permllted by law lo charge. “The worth al the time 01 the award” as relerred lo In (3) of lhls paragraph Is to be compuled by dlscountlng the amount al lhe dlscounl rale 01 Ihe federal Reserve Sank 01 San Francisco at Ihe lime 01 Ihe award;plus one (1%) percent. II Tenant Is In delaull under Ihe lerms of lhls Lease, Landlord shall have Ihe additlonal rlghl lo have a receiver appolnled lo collecl ran1 and conducl Tenant’s business. Nellher the llllng of a pellllon for the appolnlmenl of a receiver nor Ihe appointment Itsell shall conslltule an elecllon b r Landlord to termlnale lhls Lease. Landlord al any lime after Tenanl commlls a defaull, can cure the defaull al Tenanl’s cost and expense. II Landlord al any I me, by reason of Tenanl’s default, pays any sum or does any acl lhal requlres Ihe paymenl of any sum. Ihe sum pald by Landlord shall be due lmmedlalely horn Tenant lo Landlord al the tlme the sum Is pald, and If pald at a later dale shall bear Interest al the maxlmum rale an lndlvldual is permltted by law lo charge from Ihe dale Ihe sum Is pald by Landlord unlll Landlord Is reimbursed by Tenant. The sum, togelher wilh inleresl thereon, shall be considered addilional renl.
20. HOLDING OVER. II Ihe Tenant. wilh the Landlord’s consenl, remains In possesslon cl Ihe Premises alter Ihe explrallon or lefmlnallon ol Ihe lerm of lhls Laase, such POSSESSIOn by Tenant shall be deemed lo be a tenancy from manlh-lo-monlh at a rental in the amount 01 the last monlhly renlal plus all other charges payable hereunder, upon all Ihe provlslons of lhls Lease applicable lo month~lo-month lenancy. 21. BINDING ON SUCCESSORS AN0 ASSIGNS. The terms, condillons and covenanls 01 this Lease shall be bindlng upon and shalt Inure to Ihe benelil 01 each 01 the parties hereto, rhelr helrs, personal represenlalives, successors and asslgns. 22. NOTICES. Whenever under lhls Lease a provlslon Is made lor any demand, notlce or declaration 01 any kind. it shall be In wrlllnq and served either personally or Sent by registered or certilled Uniled Stales mall, postage prepaid, addressed al the addresses as set lorth below:
TO LANDLORD AT: 2965 Rooshelt Street Carlabad, CA 92008
TO TENANT AT: 1200 Carlabad Village Drive Carlsbad, CA 92008
Such nollce shall De deemed 10 De received wlthln lorly-eight (48) hours lrom the lime 01 maillnq, II malled as provlded lor In lhls paragraph. 23. LANDLORD’S RIGHT TO INSPECTIONS. Landlord and Landlord’s aqenl shall have the rlghl lo enter Ihe Premises al reasonable limes lor Ihe purpose 01 lnspecllnq same, showtnq Ihe same lo prOSpeCllve purchasers or lenders, and maklng such alteratlons, repairs, Improvements or additions lo the Premlses or lo the Dulldlng cl which Ihe Premises are a part as Landlord may deem necessary or deslrable. Landlord may al any lime place on or about Ihe Premises any ordinary “For Sale” slqns and Landlord may at any llme durlng the lasl one hundred twenty (120) days 01 the lerm 01 lhls Lease place on or abaul the Premises any ordinary “For Sale or Lease” signs, all wllhoul rebale 01 renl or Ilability lo Tenant. 24. CHOlCE OF LAW. This Lease shall be governed by Ihe laws of lha slale where Ihe Premises are located.
26. LANOLOAO’S LIABILITY. The lerm “Landlord” as used In lhls Lease Shall mean only the owner or owners al the lime In queslion 01 Ihe lee Illlo or a Lessee’s lnleresl In a ground lease 01 the Premises, and in Ihe evenlol any lransler 01 such litle or interesl, Landlord hereln named (and In case 01 any subsequenl transfers to Ihe lhen successor) shall be relieved IrOm and after Ihe dale of such lransler 01 all liability in respecl lo Landlord’s obligations therealter lo be performed. The obllgatlons conlalned In lhls Lease lo De performed by Landlord shall be Dlndlnq upon Ihe Landlord’s successors and asslgns, only during thelr respective perlods of ownershlp. 27. WAIVERS. No WalVer by Landlord bf any provlsion here01 shall De deemed a walver 01 any olher provision here01 or 01 any subsequenl Dreich by Tenanl of Ihe same or any
other prOVISIOn. Landlord’s consenl lo or approval of any act shall nol De deemed lo’render unnecessary Ihe oblainlnq ol Landlord’s consenl lo or approval al any subsequenl at1 by Tenanl. The acceplance 01 renl hereunder by Landlord shall no1 De a waiver 01 any preceding breath by Tenant of an
the lailure al Tenanl lo pay Ihe particular rent so accepted. regardless of Landlord’s knowledge 01 such preceding breach al Ihe llme 0 r
provlsion hereol, other lhan
28. INCORPORATION OF PRIOR AGREEMENTS. lls acceplance 01 such renl.
Thls Lease conlains all agreemenls 01 lhe partles wilh respect lo any matter mentioned hereln. No prior agreemenl or underslandlng pertaining lo any such matter shall De elleClive. Thls Lease may be modllied only in wrilinq. and signed by lhe parties In inlerest al Ihe lime 01 such modlllcallon. 29. TIME. Time Is al Ihe essence 01 lhis Lease. 30. SEVERABILITY. The unenlOrceaDilily. invalidity, or llleqallty 01 any provlsion 01 this Lease shall nol render the Other provlslons hereo; unenforceable, Invalid or Illegal, 31. ESTOPPEL CERTIFICATES. Each parly. wllhin len (10) days aller nolice lrom Ihe olher parly. shall execule and deliver lo Ihe Other party a certillcale slalln In lull lorce and elleCl. or In lull force and ellecl as modilied. and slating the modilication. The cetlilicale shall also Slale Ihe amount o mlnlmum inonlhly renl, Ihe dales 8 lhal lhls Lease Is unmodllled and
lo which renl has been paid In advance. and the amduel ot any security deposil or prepaid rent. II any. as well as acknowledginQ lhal lhere are not. 10 lhal party’s knowledge. any uncured delaulls on the part 01 the Other parly. or specllying such delaulls. il any. which are clalmed. Failure lo deliver such a cetllllcale wllhln Iha len (10) day period ShaP be ConCIusIve upon Ihe pany tailing lo deliver lhe certilicale to the benelil 01 the party requesling lhe certillcale lhal lhls Leaso Is In lull lorce and etlect. lhal lhere are no uncured delaults hereunder. and has not been modilied except as may be represenled by the party requesting Ihe ceflilicale. 32. COVENANTS AN0 CONOITIONS. Each provision 01 this Lease perlormable by Tenant shall De deemed Dolh a covenant and a condition.
33. SINGULAR AN0 PLURAL. When required by the contexl 01 lhls Lease. Ihe singular shall inCludC Ihe plural, 34. JOINT AN0 SEVERAL OBLIGATIONS. “Party” shall mean Landlord and Tenanl: and il more than one person or enlily is Ihe Landlord or lenanl, the obligalions Imposed on lhal parly shall be Jolnl and several.
ADDENDUM
Addendum to lease dated July 1, 1999 between CARLSBAD EQUITY PROPERTIES, A General
Partnership, Lessor (Landlord), and the CITY OF CARLSBAD CALIFORNIA, Lessee (Tenant).
37. EARLY POSSESSION
Tenant is currently occupying the premises, which are the subject of this lease. Said occupancy
shall continue at the existing rental rate until the effective date of this lease. As of the effective date of this lease, the prior lease covering the currently occupied premises shall be terminated.
38. COST OF LIVING ADJUSTMENT
The amount of the Base Rent (and the corresponding Monthly Installments of Base Rent)
payable hereunder shall be adjusted annually, commencing with the date twelve (12) months
after the Commencement Date (the “Adjusted Date”). Such adjustments shall be for the
purpose of reflecting the increase, if any, in the cost of living. Adjustments, if any, shall be
calculated based upon the United States Department of Labor, Bureau of Labor Statistics
Consumer Price Index for all Urban Consumers, L.A. - Riverside, Orange County Average,
Subgroup, “All Items” (1982-84=100) (the “Index”). The Index published as of the third
month prior to the commencement date shall be the “Base”. In the event the Index is not
published in the third month prior to the commencement date then the second month prior to
the commencement date shall be the “Base”. On each Adjustment Date, the Base Rent shall be
- increased by a percentage equal to the percentage increase, if any, in the Index over the Base as
of the third month (or second month if applicable) prior to each Adjustment Date (“Adjusted
Base Rent”). Notwithstanding any subsequent decrease in the Index, the Adjusted Base Rent
shall not be less than that rent paid after any preceding adjustment. When the Adjusted Base
Rent payable as of each Adjustment Date is determined; Lessor shall give Lessee written notice
of such adjusted Base Rent and the manner in which it is computed.
If at any Adjustment Date the Index no longer exists in the form set forth above, Landlord may
substitute any substantially equivalent official index published by the Bureau of Labor
Statistics or its successor. Landlord shall use any appropriate conversion factors to accomplish
such substitution. The substitute index shall then become the “Index” hereunder. In no event
shall said increase be less than 4% per year or exceed 7% per year non-cumulative.
39. OPTION TO EXTEND
If Tenant is not in default under the terms of this lease, Tenant shall have the option to extend
the term of this lease for three successive one year periods upon all the terms and conditions set
forth in this lease; except that, the monthly rent to be paid by Tenant to Landlord for each
extended term shall be computed by adding to the minimum monthly rental for the immediately
preceding period a sum obtained by multiplying said minimum monthly rental by a factor equal
, , *
,- ’
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to a percentage increase in the Consumer Price Index, (published by the United States
Department of Labor, Bureau of Statistics, Consumer Price Index for all Urban Consumers,
L.A. - Riverside, Orange County Average, Subgroup “All Items” (1982-84=100)), equal to the
percentage difference between the Index as last published prior to the commencement of the
preceding term of this lease, and the Index last published immediately preceding the
commencement of each successive term.
Tenant shall exercise this option by delivery of written notice to Landlord not less than 90 days
prior to expiration of the preceding term of this lease of its election to extend the term hereof
In no event shall the monthly rental for any additional period be below the monthly rental for
the preceding term of this rental.
In the event that the Consumer Price Index is no longer published at the time of the adjustment
period Landlord may substitute any substantially equivalent offkial index published by the
Bureau of Labor Statistics or its successor. Landlord shall use any appropriate conversion
factor to accomplish said substitution. The substitute index shall then become the “Index”
hereunder.
Landlord:
CARLSBAD EQUITY PROPERTIES
A GENERAL PARTNERSHIP
Tenant :
CITY OF CARLSBAD CALIFORNIA
Attest :
4Yl,5
Date
/I-22- 97
Date