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HomeMy WebLinkAbout1992-10-20; City Council; 11925; APPROVE LEASE AGREEMENT WITH PALOMAR #46 FOR LIBRARY STORAGE/WAREHOUSE AT 2075 CORTE DEL NOGAL, SUITE Q1 PALOMAR #46 FOR LIBRARY STORAGJYWAREHOUSE AT 2075 CORTE DEL NOGAL, SUITE Q Adopt Resolution No authorizing the Mayor to execute the lea: and Palomar #46. ITEM EXPLANATION: The Purchasing Department currently leases approximately 2060 square feet I warehouse/storage space at 2075 Corte del Nogal for the Library. The leased space necessary due to the lack of adequate storage space in the Library or the Purchasir warehouse for the storage of collections for the new library and for existing low1 priority collections. The original lease was initiated in October 1989 for a term of three years and at a ra of $1565 per month. The current rate is $1725 per month. The lease is now up fi renewal. As a result of the current market conditions, Utilities and Maintenance sts was able to renegotiate lease for an additional three years at the reduced rate of $9t FISCAL IMPACT: The cost of the current lease is $1,725 per month or $20,700 annually. The revisc lease, which is to take effect November 1, will cost $968 per month or $11,61 annually for a net savings of $9,084 the first year. The cost for the second and thi year are $1,154 per month and $1,236 per month respectively. Total savings over tl term of the lease will be $21,804 based on the current rate. Funds have been includc in the Purchasing Department’s budget for this purpose. e w P 0 d a- 1. Resolution No. 2 2. Lease Agreeme .. z 0 F 0 a e z 3 0 0 I 2 3 4 5 6 7 8 9 lo 11 12 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING A NEW LEASE WITH NOGAL STREET, CARLSBAD, WFORNIA PALOMAR #46 FOR SUITE Q LOCATED AT 2075 CORTE DEL WHEREAS, the City of Carlsbad, California has determined the need t provide warehouse/storage space for the Library; WHEREAS, Utilities and Maintenance staff has negotiated with the properl manager and secured a new three-year lease and a reduction in the rental rate; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That the new lease agreement between the City of Carlsbad ar 1 Palomar #46, attached hereto as Exhibit A is hereby approved. 14 15 l6 17 18 19 20 21 3. That the Mayor is hereby authorized to sign the lease agreement o behalf of the City. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the of OCTOBER 20th , 1992, and by the following vote, to wit: d( AYES: Council Members Lewis, Kulchin, Larson, Stanton, Nygaarc NOES: None ABSENT: None I I I 22 ' 23' 24 25 26 27 28 I1 ATTEST: &/;W ALETHA L. RAUTENKRANZ, city Clerk (SEAL) e 0 p- Southern California Chupter of the sK>RI Society of Industrial and Office Healtors,* Inc. IIUIIUSTKIAL KEN. ESTATE LEASE [MULTI-TENANT FACILITY) .J ARTICLE ONE: BASIC TERMS This Article Onu conlirins tho Dasic Toriris or (his Louse bolwoori llie Landlord and Tmni named below. Other Arlicloo. Scctioiis and I’drayraplis 01 tliu Luuse ruforred 10 in this Articlu Onu explain and dalinu the Uasic Terms and ara to be read in conjunction with the Uasic Terms. Section 1.01. Date of‘ Lease: ___ September 16, 1992 Section I .OZ. Landlorti (inc~udk legal entity): __P=a!__#46 Address of Landlord: 541 1 Avehida Encinas, Ste. 110 Carlsbad, CA 92003 . ..~____ Section 1.03. Tenant (include legal entity): -City of.Carlsbad - - ___._ -_- 75 C rte del No a1 :Carlsbka,e* * Address of Tenant: Section 1.04. Properly: The Property is part of Landlord’s multi-tenant rail proporty duvulopment known --_.- ----____ __ -. ----. .-. - - as ---I-. ..-..-- Pa1#&- and described or depicted in Exhibit “A” (tlic “l’rujeci”). Tho I’rojuct iircludus (he lund. lliu buildings and all ollicr iinprovcmunts lowtcd on tho land. and the coinrnon areas duscribod in Paruyrspb 4.0 P The I’roperty is (includo street address, approximato squure lootaye and description) -&E.r.!wimate IV %bb rentable square 2075 Corte del Nogal, Ste. Q Carlsbad, CA 92009 7 - €pet located at: -_________ -.- ---- Section 1.05. Lease Terni: - - .. 3 - . ycars . kgi-n on November 1, 1992 . .. .. .___. .. Section 1 .OG. Permitled Uses: (Scc Articlu Five) ~~i~?&_Governmen~u!~ses Section 1.07. Tenant’s Guarantor: [If nono. so state) N/A Section 1.08. Brokers: [suo Article 1,‘uurtecn) (If nono. so Stdte) Landlord’s Broker: Tonanl’s Broker: ___---..- - .-. . ...- _.._ ____. Section 1 .OO. Cornniission I’ayable lo Landlord’s Uroker: (See Article Fourtuen) $ .--Lf!--- Section 1.10. liiitial Security Deposit: (Set: Section 3.03) $ ..-156.LDQ._nn..hand .... ____ -.- __ Scclion 1.1 1. Veliicle Parking Spaces Allocated to Tenant: (Sue Sectioii 4.05) .??nee. a.Ssii9“ed Section 1.12. Kent and Other Charges Payable by Tenant: (a) BASE RENT: ~i~~e&u_n_dyed- c~~~-~iqht~~::,:/100.-- D~~I~~ [s -------) 968 00 per month for tlic first -.-.12- --. . . niontlis. as provided io Section 3.01, and s1ri111 bc increased on th first day of the mrnencumcnl Date. eillicr (i) as provided in ._______._. -.-. . (If (ii) is completed, tlicii (i) and Scction 3.02 itre inapplicable.) or such other datu as is spxified in Iliis Lcasc, and ending on . -T?actobe?~..!!l F ..._ L995 .- --__ .___~- .___ - +--- _I.-_- -. - - - . -.- -1L .-. .-- - inoiilli s) after thc Secli on 3 .O 2. or [ i i ) -5 @%&J~a~- sc he&& -!!!!!-f$? .-_____.__ _______ - _- - - _. c Scction 4.02): Sectiuit 1.14. Landlurd’s Share uf‘ Prolit on Assignmenl or Sublease: (Sue Scclioii !).05) --Qne-- - Section 1.15. Kiders: ’flie following Hiders arc attaclied lo and madu a part of lliir Lwse: (If now. so s!.alcJ Hundred,, percenl (-...-!!?-!?- x) of he I’rolit (ttie **hndlord‘s Share”). -. -- --___- SectTEE-15, 16, 1/,-18, 19 .----- - lnilivlr __ -__-_ 0 19~8 Southern Cir1iforiii.t Cliaptcr 01 IIW Sacicty of Industrut and Olficu Kcalturs? Iiic. 2 (Multi-Tenan: Gross Form) XI{’ -f=- 0 .- --- ---L ARTICLE TWO: LEASE TERM Lease of Properly For Lease Term. Landlord lenses tlic I’ropcrty to Tenant und Tcnont lesscs tho Propwty from Landlord for the Lease Term. The Luosc Torm is for 111c poriod statcd in Section 1.05 ahvo and shall bagin and end on tlio dutcs sliccificd in Section 1.05 above. unless the buginning or ond of the Lcnse Term is changed under any provision of this I.e;isc. Tlic ”Conlmcnccmcnt Dale” shall bo the diitc specified in Scclion 1.05 abovo for tlie bcginning of the Lease Term. uiiluss advanced or tleluycd under any provision of this Lcose. Section 2.01. Section 2.02. Delay in Commencement. Landlord shall not be liable toTciinnt if Lundlord does not deliver possossion of tho Property to Tenanl on tlic Coinmcnccmcnl Dale. Landlord’s non-delivery of the Properly to Tenant on hat dale slinll not iiflcct [his Lcasc or tlw obligiilioiis of Tenanl undi!r this 1,cnsc excclit Illat the Cornmcncomenl Date shall bc delayed until Landlord dolivim ~iossossion of Ilie Priipcrly to Tcnnnt and tho Lease Term shall bo extendcd for a period equal to tlic delay iii tlclivcry of possession of tho I’ropcrty to Tenaill. plus the numbcr of days ncccssury to end the Lciisi: Term on tlie Iiis~ clay of ii niontli. If Liindlord docs not deliver possossion of llic Property lo Tenant within sixty (EO) clays after llic Coinniciiccincnl Dote. Tenant niay clwt to conccl this Lcasc by giving willcn nolice to Landlord within ten [IO) diiys allcr tlic sixty (GO] -duy ])c:riotl ends. If Tcniinl gives such nolice, tho Lcaso shall be cancellcd and ncitlicr Landlord nor Tcnant sliull have ony furllicr obligations to the other. If Tenant doos no1 delivery of possession of ltie I’ropcrty to Tenant. If delivery of possession of the I’ropcrty IO Tenant is delayed. Landlord and Tcnant shall. upon such dc!livcry. cxecute an amendinen! to this Lease setting forth tlic actual Commoncement Date and expiration datc of the Lcasc. Failure to cxcculc sucli aincndmcnt slioll not affcct tlie actual Commencement Dalc and expiration datc of die Lcosc. give such nolice. Tenonl’s riglil to cancel IIM Loose s1111ll expire and Ilia Lcesu Tcrm sldl cotnmoncc upon tho Section 2.03. Early Occupuncy. If Tenant occupios the Propcrly prior to the Commencemonl Dale. Tenant’s occupancy of the Property shall be siibjwt to all of the provisions of this haso. Early occupiincy of tho Property shall not advonco tho oxpirution dute of this Lease. Tcnnnt shall pay Uusc I<cnt and all othcr cliargcs specified in this Lcasc for tlie early occupancy period. Scclion 2.04. llolding Over. Twiaiit shall vacute tlic Property upon the expiration or narlicr termination 01 this Lease. Tenant shall reimburse Lundlord lnr iintl iiidcmnify Landlord against ;ill dilniagcs which Lundlord incur! from Tenant’s delay in vacating tlic 1’mpi:rty. If Tcniint docs not viicati: the I’rcipcrly upon tlic expiration or enrlicc tcrmination of the I.ciisu and Landliird tlicritilllcr iici:epts rent froiii Tcniiiit, Tcniiiit’s oc:crili;incy of the Pruporty shnl be u “month-to-inontli” tenancy. sul)ject to ;ill of tlic term of this Li:iisc iip~ilicalitc to ii niontli-to-month tenancy except that the Uasc Rent tticn in effect sliiill be ,iiicrcascd by twenty-five pcrccnt (25%). ARTlCLE THREE: BASE RENT Section 3.01. Time and Manner of I’aymenl. Upon uxccutiori of this Lcasc. Tenant shall pay 1-andlord tht Base Rent in the amount statcd in I’aragriilili 1.12(a) iibovc Tor tlie first nionlli of tlic l.casc Term. On llic first day o the second month ol tlic I.casc Ti:rni and (iiicli inoiitli tlicrcaftor. Tenant sliiill pay lantllortl tlic: Basc Kcnl, in advoncc without offset. deduction or prior dciiioiid l‘lic 13;isc Kent sliull be piiyablc at Landlord’s address or at such othc place as Lnndlord may dcsigriatc in writing. iirisoii IIiisc I( c applicable Ilcrilal Adjuslmcnt Dale until the naxl Rcnlc ftcr tlic oppliciibl(: Kiiiitiil Adjustment Date of the increase, on djustmcnt for ihe Inoiitlis clapsed lxw:tIwLwn the effective datc of th iiicroasc within tcn (10) diiys iifh liindlorcl’s notice. If tlic formal t Ily cliiiii& dtcr tlic Commnncciiiciit ~htc:. I~ntllortl sliiill substitulc an indc u of labor Statistics or similiu iigt:iic:~ and which is most nearly equivalent to th ion at its office closest to tt Initials -. 0 198u Southorn Cslifitrnio Cliu~i~cr -e. (if ttic sc,cit!iy d Iiii~ustrisl nid Oflico Ituolturs? IIIC. -0 9 (Multi-Toiiun: Gross Form) F ____ ..-. _____---. * _.____ _.-- --- Section 3.03. Security Deposit: Increases. (a) Upon the execution or this Lcose. Tenant sholl deposit with Londlord a cos11 Socurity Dcposil in the amoun set forth in Seclion 1.10 nbove. Landlord may apply ull or port of the Security Deposit to any unpaid rent or olhe charges due from Tenant or to cure nny other defaults of Tenant. If Lnndlord uses nny port of lhe Security Deposit Tenant sliall restore .the Security Deposit to its full amount within ten (10) doys nfter landlord’s writtcn request Tenanl’s failure to do so slinll bo o matcrinl dcfuult under tliis Lcnso. No inlorest shall hc paid on the Securit! Dcposit. Landlord slinll not be required to keep the Security Deposit separate from its otlicr accounts and no trus relationship is created with respect to the Security Deposit. .. .. .. mr ‘*’ * r\ .. I . .I . .. ” Section 3.04. Termination; Advance Payments. Upon terminalion of this Loose under Articlo Scve (Damngo or Dcstruction). Article Eight (Condomnotion) or nny other ternliiintion not resulting from Tonant’s delnul and after Tenon1 hos vociitcd the I’ropcrly in tlic mnnner required by this lacase. Londlord slioll refund or credit 1. Tenant (or Tononl’s succcsso,r) tlic unused portion of the Security Deposit. ony Advance rcnt or other edvanu paymcnts made by Tcnnnt to Imndlord. and any amounts paid for rcal property toxos and otlicr reserves which appl: to any time periods nfter termination of tlic Lcasc. ARTICLE FOUR: OTHER CHARGES PAYABLE UY TENM Sedlion 4.02. Property Taxes. Landlord tlic amount. if any. by which tho ri:al ~iropcrty t;ixes during tlw 1,i:;i Taxes. Subjoct lo l’iiragr;ildi 4.02(c]. Tcniint sh;tll innkc siich payrncnls wi Lnndlortl’s stntoinnrit slinwiiig thc ainoiint and coni~iiitntion of such iiicr II (15) days ofccr rcceipt c wins: [i) nny I-. license I=. license (a: IC? rcccipt of. rcnt or incomc from tho Propert: defined by applicnlilr law. or other transfer of all Tee repliicing any tax prnviously incliirlwl WIII ’ however. include Landlord’s Iccltd or stat ’ (c) Join1 Assessmcnt. If 11 share or tlic rcol iiropcrty tax I reasonably avniliible inlorinotio Landlord’s written stntcment. I scparotcly nsscssctl, L.andlord sliall rcnsnnolily determine Tenant’ t unclt!r I’aragrnpli 4.0~(a) from the nssossor’s worksheets or othe ny such shore to Londlord within fiftccn (15) doys after receipt c toxcs chnrgod ngninst trnde fixtures. firmisliings. equipment or any othor porsoni 1. Tenon1 slinll try to hnvc pcrsonnl proprty taxcrl scporatoly from the Property. 4.03. Utilities. Tenant shall pay, directly to tho opproprintc supplicr. the cost of all natural gas. hea. Londlord shall rnoke ond Tenon1 slid 0 IW Southern Gilihnia Clioliter 3 Initials --#----- or 11in Swirly uf tnilusirink 9 nnd Oflicc Hixdtors? li~ (Multi-Tenanl Crow Form) 0 0 Soclion 4.04. Insurancc Politics. periodic incrcesc bused upon inflution. incrtiascd liiibility ownrds. recomnwndotion of Land1 insurance otlviscrs and ollicr rclcviinl fticlors. Tlic liubilily insursacc obliiincd by Tutiaril tiiidcr his not obtain insurance for Tenant’s Iixturcs or equipment or building merits instalia&by Tonant on the surancc policy. with loss peyeblo tc .andlord’s or Tunani’s insurirncc policies Ilousand Dollers (S10,OOO). Tenont shell Tenent slinll bc lieble feir the payinmt of ;my dctluctiblc nmounl t mointeincd pursuant to this Section 4.04. iii an ainounl not to oxcc (c) Paytnent of Premiums. Paragroph 4.04(1)). If the I’roliorty Iias I)i:cti ~ircvioiisl premiums paid dtiring or :ipplicaI~lc tcl ~lic last tw (i) Lnndlord sliall pay [lie “Dnso I’rcrniunrs” for n~lls e>[ suI:ll prier occlrl,ailcy. if lllc ~~~~~rl~ ha: s tliiiii twclvc 1\21 niontlis, tlic Uase l’rcmiums arc Cornmcncemcnt Date. the amount due from Tcnan obligated to liay tlic full resulting from nny fur01 ascs in tl~c amount of insuranco or yiorccntogc? of insured value. Subject to ace Provisions. ribud time period or if any sirc:li policy is ciincullcd or nrotlilicd during Ilrc Leuse Tcrm.-witllout s consent. Landlord inny ohin siicli insurencu. in wliich cnsc l’cnent sliull rcinlburse Landlord for Ilie .. ost of such insuroncc within flftccn 11.11 r. w ~ir n clnlrrrrlr.nl Ihc.’ ua&s&w ‘”^ ---’ aka& kurnnce. City is self insured. @ 1988 Southorn Calilornin Choptor 4 Initials of the Sociuty of Incluslriml and Offica Rualtora? tnc. q (Multi-Tcnnnl Cross Form) 7 e e (ivl Unless proliibilo hcruby wnivc any :I insurnncc. Lnndlord nnd Tcnnnl shall giv [a) Common Areas. As used in this Lcnsc. “Common Arcns” sliall mcnn nll nrcns within the Project which ar avnilnblc lor the common usc of lcnants of thc I’rojecl ond wliicli nrc not Icascd or held for the exclusivc use c Tcnnnl or otlicr tcnnnts. inclutlinR. brit no1 limited lo. pnrking nrcns. driveways. sidcwolks. loading areas. acces roads. corridors, Inntlscnliiiig and plnntod nrens. Landlord. from lime to lime. may cliangc the sizc. location, natui nnd use of any of thc Common Arcas. convcrt Common hens into 1r:osc:nblc nrcns. conslrucl odditionol parkin cs (including parking structures) in the Common Arcos. and increase or dccrcasc Common Aren lnnd andlc facilities. Tctinnl ;icknowli:dgc:s tlial srir:li nclivilics rnny rcsull in inconvcnicncc lo Tcnant. Such octivities an chnngcs arc ~icrinit~ccl if tlii:y tlo no1 mntcrinlly nlfcct Tcnunt’s usc ol ilic I’roiiarty. Use of Common Areas. Tcnanl shall hevc lhe noncxclusivn rislil [in common with olllcr lcnants and a others lo whom Lnntllnril has grmtod or inny grant such rights) lo usc tlic Common Arcas for tho purposes intendoi subject to such rcesniiiiblo riilc:s nntl rop,iiliilinns os I.nndlortl may establish Irom lime to lime. Tcnnnl shall obidc t such rulcs and ri:gulaliniis niid shnll USI! its best cflort lo cnrisc olliors who rise Ilic Common Arcns with Tenon1 exprcss or implind pcrmission Io chi& Iiy Landlord‘s rulcs nnd rcgcilaliolis. AI nny lime. Landlord may close an Common Arms lo pidorm any ncls in Ilir! Cciininon Arms ns. in I,nn~lInr~l’s jirtl~mcnt. arc desirable to improve If I’rojcct. Ti:itant sli;ill 1101 ititcrlcre with tlii: rights ol Lniitllorcl. ollicr lciiaitls or any c~tlicr pcrson cntitlcd to use tI Common Arcns. IC) Specific Provision re: Vcliiclc Parking. Tcnunt sliull bc cnlilld to use thc numkr of vehicle parkir spnccs in tlii: I’r~iji:i:t ~III~I~:~III~II to l’c!nanl in Section 1.1 1 of thii Lccisc willioiil pnyinH my ntldilional rent. Tenant parking sliall not bc rcscrvcil atid slriill bo liinilotl to v~:hiclcs no lilrgor than sl;indnrtl sizc automobiles or picku ulilily vchiclcs. Tonnnl sliiill not cnusi: largo trucks nr olhcr largo vcliir:los to bc parked within tlic Project or on It atljacont public strwts. l’i:nitiornry piirking of hrgc dolivury vcliiclos in tlir: I’rojoct miiy IIC pcrmittud by tlic rulcs ar rcgulations cstnblislicd by Lmdlord. Voliiclcs shall bc perked only in slripcd parkin,: spnccs ond not in drivewoy loading nrcns or ollicr loc:ations not s~ior.ifically di:sigiinled lor parking. I landicappod spnccs shnll only be used t lliosc log;illy pcrmitti:d to usu Ilicm. lfTi!tiont parks nioro vchic:ll:s in tlio parking nrca tlinn llic number set forth Section Y .Y 1 of this Loasc. such conduct sliiill be a molerial brcacli of this Lcase. In addition to Landlord’s 0th rcmedics under the I.casr:. ’I‘cnant sliall pay n daily cliorge dclcrmincd Iiy Landlord for cncli such ndditional vehicle [d) Mainlanonce of Common Areas. 1;iridloril slioll mnintnin 11ic Common Arcns in good ordcr, conditic [b) and repair and sliall oj property dcvclopmcnl. Londlord lor thc opcrnt’ .. @ 1000 Soiitbern Gililwnio Clioptcr S Initimla f==- of thc Soc:icty of Incliislrinl mT nnd Oflicc Rcnltors? tnc. (Mulli-Tenant Grosa Form) --e- -.-- Soclion 4.06. Lalo Chrrrgos. Tononl'a fuiluro to pay roiil proiriplly moy cauce Landlord to Incur unanllclprlc cools. Tho OXPCI emounl of such coils nro ln~iitocllcol or oxlromuly dilflcull lo ocartsln. Suclt costs mry Include. bi ua no1 llmlted lo. processing end occounllng cliorgos nnd lolo cliorgos wlrlcli may bo Imposed on Landlord by u pound loare. rnortgogo or bus1 dood oncuiiilroriny tho Proparty. 'I'lioroforo. If LPndlord doos not tocelve any re payment within ton (10) day. eltor It bocoiiioa duo. Tonont elroll pay Lendlord r let8 clrarga oqual IO ten porca (10%) ol 1110 ovorduo omounl. Tho porlioi oyroo tliot such Into cliargo roproaonlo a lair and reoronable esllmale of I] ~IIJ Landlord will Incur by reason ol such lato poyinont. lhze will t~ a $%.MI CfEUTp m on ruch amounts sliall not oxcuso or cur0 oily dofoull by Tunonl untlor tlils Loose. If AXTlCLE FIVE: USE OF PROPERTY Section 5.01. Pannillad Usos. Ton-ni may Y-o ilts Propdy ody lor tho Pormliid US-. .st lorlh h Sed1 1.06 AboVO. Section 5.02. Manner of Una. Totionl sliall no1 couse or pormit tho Proporly to bo used In any woy whi conrtllules a vlolollon of ony law. ordlnonco. or govornmantal rogulallon or order. whlch annoys or lntsrforer W, the rlglits of lononls of 1110 ProJecl. or wlilcli consliluloa a nulsoiico or wosla. Tenant shall obtdn and pay for permlls. includlng a Carllflcete of Occuponcy. roquirod lor Tononl'a occupmcy of tho Properly and shall promp taka all actions necossrry to comply wlili all oppllcoblo stuliilu~. ordliionces. rules. rogulrlions. ordors I roqulrrmrnlr ragulallng the uaa by Tonanl of he Properly. Including the Occuptlonal Safety and HeelLh Act. Section 5.03. llazardour Maloriele. hi uaod In tlils Louro, the term "Ilaurdour Mrlerial" means a flammoblo Ilemr. exploilvor. radlmcllvo molorlala. Iiozrrdous or toxlc iubslancaa, malorlal or wrrla or rolal matwbls, lncludlng any aubrtencoi dufinod as or lncludcd In 1110 dolinlllon of "Imrardour rubstancas", "liozardc w-". "hazardour matorlals" or "toxlc rubstoncon" now or subsoquontly rogulaled undor any rppllcsble Isdm state or focal laws or rogulatlons. lncludirig withoul llmilatlon polroloum-bored products, palnts. solvents. le, cyanlde. DDT. prlntlng Inks, acldr. pcstlcidos, onimonle compounds ond other chomlcrl products. asbaslor. PC and rlmilar compoundr, and Including any dllforont product8 ond molorlolr whlch are rubsoquonlly loud lo ht advarra elfsctr on the environment or tho Iioel~li ond roloty of porconr. Tenon1 rhrll no1 couse or psrnill I Haurdour Malorlrl lo bo goneratod. producod. brouglil upon, usod. alorod. keeled or dlrpoaod of In or rbaul 1 Property by Tonanl. Its rgontr. employooa. conlraclorm. mublorroer or lnvltooa wl~liout the prlor wrltton consent Landlord. Landlord ihall be enllllod IO lnko Into account rucli otliur faflora or lsctr as Landlord may rsasonal dalermlna to bo relevant hi datermlnlna wliotlror lo grant or wtlliliold conaanl lo Tanrnt'r proporad acllvlly w rerp.ci lo Haznrdoui Matorlrl. In no ovont. howover, rliall Landlord be requlrd lo conrenl to the Inrlrllellon or I d my rtoraga Iank~ on Lhr Property. (0 1QM Southam C.llfornlr Chrptsr 6. lalllrlr of the Socl*ty of Indu~klrl 'F ad orricr bltori! lac. 9 (Mulli-Teurnl Grou Form) e 0 Section 5.04. Signs and Auctions. Tenant shall not place ony signs on the Property without Landlord’s prit written consent. Tcnont slioll not conduct or permit any ouctions or sheriff’s soles 01 the I’roperty. Section 5.05. Indcmnily. Tennnt shnll indemnify Londlord ngoitist nnd hold Lonillord harmless from any ar all cosls. claims or.linbility nrising from: (n] Tennnt’s use of the l’ropcr~ly; (b] the conduct of Tcnont‘s business anything else done or permilled by Tcnnnl to be done in or obout lhc 1’rci)icrty. including any conlominotion of II Properly or any other property resulting from the presence or use or Ilnmrdous Matcrinl caused or permitted I tion or brcoch of wnrriinty by Tciinnl iintlor this Icnsc; or (0) otlier ti(:Is or oniissions of Tt:nniit. Tcnont shall defci Landlord ngninst any sttt:h l:tJSt. chiin or liiiliilily nt Tciiiint’s cxpcrlsc With counst!~ rcnsonubly uccc~llob~e lo Lnndlo Tenant; IC) ony brcach or dclaull in 11ic la!rforrnnncc of Tcnonl’s oblignlirms under \his Lenae; It\) ony misrcprosenl in^ lrom any couse. ond Tenant hereby waivi arising out of Londlord’s gross negligencn I n, Ilie Icrm “Tenanl“ shall include Tenant’s employees, egents, contracto t Seclion 5.06. Landlord’s Access. Landlord or its agents mriy entor tho Property nt all reosonoble limes show the Property to potential buyers. investors or tcnnnts or other piirtics; to do ony other oct or to inspect ai conduct lcsts in order to monitor Tcnont’s compliance with all o~iplicnblc cnvironmentol lows ond oll laws governii the presence and use of I-la7mdous Miilerinl; or for any ollicr purpose Landlord deems necessary. Londlord shall gi, Tenant prior notice of sucli entry, except in the case of an emergency. Landlord moy place customary “For Sole” “For Lease” signs on the Property. Section 5.07. Quid Possession. If Tcnont poys the rent and complies with all other terms of this ha5 Tenant may occupy nnd cnjny tlie I’ropcrty for the full Lease Term. subject to the provi,sions 01 this Leose. ARTICLE SIX: CONDlTlON OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS Scclion 6.01. Existing Conditions. Tcnnnt occepls Ilrc Property in its condition os of ihc execution of 11 Lease. suliject la all rccortlcd miittcrs. Inws. ortlinnnccs, ond governmonl;il rcguliitions nncl orders. Exccpt os providc herein. Tcnnnt nr:knowlt:di(cs that neither landlord nor ony oRcnt of Inncllortl has rnndc any representntion as to t1 condition or the I’ropcrtv or Ihc siiilnbility of the Property for Tennnt’s inlimdcd use. Tcnnnt represents and woman that Tennnt lins nindc its awn inspection of nnd inquiry rcgnrtling the condition of the Property ond is not relying ( any reprcscntntions of I.nncllord or nny nrnkcr with rcspoct tlicrc?to. If Landlord or Lnndlord’s Orokcr hos provided Property Information Shrct or otlicr Uist:losurc Stotcmcnt regording the I’ropcrty, o copy is attaclied os on exhibit the Lease. Scctioii G.02. Ilxt!mlition of L;lntllord from 1.iability. I,nntiIortl sIi:tlI nt)l IN! Iinblt! Tor nny dnrnago or iniu lo Ilic person. I)usini?ss 1r)r atiy loss (11 iiit:unit; lIit!ri?fri~iii), Kfmcls. w;lrt:s, iiicrdiatidist? t~r lillicr ~irnpcrly of Tcnar Tenont’s r!nililoyct~s. iiiviIct!s. i~iis~iiitit:rs or :illy oilier pt!rson in or ;iliout tlic l’ropcrly, wlidhcr suclr clamngc or inju ismwscd by or rcsults from: [a) firt?. slcnm. electricity. wiitcr. gas or rain; (11) tlic brt:nkaKc. Icakngc. obstruction other dcfccts of pipc:s. sprinklurs. wircs. ;ippIi;iiict:s. plumbing. air c;cinrlitioning or ligliting fixtures or ony 0th cnusc; (c) contlitiriiis arising iti or atmitt tlic I’ropcrty or upon otlicr pnrtiwis of the I’rojat:t. or from other sources ploccs; or ((1) any n~t or oniission of iiiiy otlicr Itmiitit of tlic Projcct. ~-niicllord sliall not bc liablc lor any such doma’ or injury evcn tliotigli Ilic ciiiisc of tir tlir moans of ropniring sitcli (1;ini;igc or injury art: not acccssiblc to Tenant. Tk provisions of this St?c:tioti G.~JZ s1i;iIl not. Iiowc:vcr. cxcinpt hntllurd from linbilily for Lnndlord’s gross negligence ( willful misconduct. Section G.03. Landlord’s Obligations. Suhjcct lo the provisions of Article Scvcn [Dnmngc or Destructio: and Article Eight (Contiemnation). and except for dnmngc cnuscd Iry any act or omission ol Tenant. or Tcnonl employees. ogcnls. conkactors or invitccs. Landlord shall kocp the foundntion. roof nnd -all** portions 1 exterior walls of the irnprovcmenls on tlic Property in Rood order. conditinn and rcpnir, l-lowcver. landlord shall n be obligated to mointain or repair windows. doors, plotc glass or tlic surfaces of walls. Landlord shall not I obligated lo make iiny rcpoirs undcr this Scctioii G.03 unlil a rcnsonnbl~: tinic tiller rcccipl of a written notice fro Tenamt of Ilic need kir siic:h repairs. Tenant wiiivcs tlic benefit of any prcsciil or fulurc law which might give Tono. o repair tho I’mperty ot Landlord’s cxpensa or to termlnntc the Laose because of the condition of 11 *Air.conditioner and heating systems. ** Structural and non-structural. 0 1988 Sauthorn Culilariiia C.lmp(cr Initials - of the Society nl lndustrtnl Yat and Ollicc Henltorso Inc. 7 IMu1ti-Ten.n: Gross Fom) e e Section 6.04. Tenant’s Obligations. (a) Except as provided in Article Scvcri [Damngc or Destruction) ond Articlc Eight (Condamnotion). Tenm shall keep oll portions of tlic Property (fl- .. .. . , * 6 in goo1 order, condition ond repair (k I). If any portion of tho Propert or my system or quipmerit in 1111: I’ropc!rty wliii:li Teiiont is obligatcd to repair cannot h: fully repiaired or rcstorcd Tenant sholl promptly rcplucc such portion of llic Property or system or cquiprnent iir the Property, rc~~~d\~~s 0’ whelhor Ibe bonefit of such rbplacetnonl exlends Leyond 1110 I.casc Tcrtli; buc if 111u benofit or userill lire or Suci replacement extends beyond tlie Lcnso Twm (as sut:li term moy bu cxtcticled by cxcrt:ise of any options), 1110 uscfu lifc of sucli roploccmc~~l st~iill be 11roriih:d ovcr Ilie rt:niciiiiiiig portion of 1111: 14t!iIS(! Tt!rm (iIS oxtt!r\dod). find Tenun shall ha liable only for tiiat portion or 1111: cost whidi is aptiliciiblc to tlic ~.oasc ‘Turin [as cxtanr~c!ct). @VI ’ . liiiidlfiml sliall +- undt:rt;lkt: tlic rosliuiirilJility lor 1mvt:ntivc iniiiiitoiiiinc:c of ttw Iiciitiiiy ;111d UI conditioniiig systeni :it ‘t’ciiaii~*s c:xI)i:iist:. In iirldition, 1’i:nant sliall, at Teiii~iit’s cx~wist:. rttpiiir any durniigc to tIi roof. foundation or structural (mrtions of wiills caused by Tenuirt‘s acts or omissions. It is the intention of Landlor, and Tcnnnl that. at oll limos during the L.caso Torm. Tcnnnl slidl maintain lhc Properly in on oltractivc. firstchs Intaior mil &ace, plateqlass: f oors floor coverings 8 hot water heatt and fully opcrativo condition. * ( ?.no!.ding Wlrdows (b) Tonant shnll fulfill ull of Tenant’s oblignlions under this Section 6.04 ut Tcnant’s solc cxpcnsc. If Tcnon fails to mainloin. repair or rcplucc the I’ropcrty us required by this Section 6.04, Londlord moy. upon ten (Io) days prior nolicc to Tonunt Icxccpt that no irolicc sliall bc required in tlic cost! of an emergency). cnter the I’roporty nnc perform such maintcnnnce or ritpoir (including reploccment, os nccdcd) on buliolf of Tenant. In such cnse. Tcnan sholl rcimburse Landlord for all costs incurred in performing such muintcnuncc or rcpair imincdintely upon dcmnnd .. I . _. .. ... . Section 6.05. Alleralions. Additions, md Improvements. (a) Tenant sliall not makc any nltcriilions. additions, or iin~irovcmeiits to tliu I’rolwrty without landlord’s prio written ‘consent. except fur nun-structural altixiitions wliicli do not cxcr:ud ‘rm -l’liorisand Dollilrs ($iu,ooo) in cos curnu~olivcly ovcr the Lcasc Term and whic:li are not visible from tho oiitsidc of any Iwildiiig 01 wliicli thc I1roprty is part. Landlord may rcquirc Tenant to pruvidit demolition and/or lien and c:oniplction blJlldS in form and amounl satisfactory (0 Landlord. Tenant slrull ~)r~niiptIy remove nny alterations. adilitions. or iinl~rovi:meiits constructcd ir violation of this Iiiiragral#li C.05(;1) ii1)on l.i~iid~uril’s written rcclucsl. All alteratiniis, odditions. iiiitl itiiprovcmcnl! shall bc dunc in a good iind workin;iiiliko inaiiiicr. in conformity with all ap1ilic:ihIc laws aiid rcgulatioiis. and by I controctor approved by Landlord. Upon c:urnl)letion of any such work, ‘Tc:i:aiit sliall provide Landlord with “as built’ plans, copies 01 all consbuctioii conlracls, and proof of payment for all labor and ni:itariaIs. [b) Tenant shall 11uy when duc all daiins for lubor snd material furnisliod to tlic Property. Tcnunf shell givc Landlord at least twenty (20) days’ prior writtun notici: of the cornmonccmcnt ol any work on tliu Property. rognrdlcs! of whcther Londlord’s consent to such work is requirod. Landlord may elect to record snd post notices o non-responsibility on llic l’rol~crty. Section 6.0G. Condition upon Termination. Upon tho tcrmiiiution of the Lcasc. Tcnanl shall surrender the Property to Landlnrd. broom clcan iind iii tlic same condition as rcccivctl cxcclit lor ordinary wear arid tear which Tcnant was not otlictrwisc obligated to rcincdy undnr any provision of this Leasc. Ilowevcr. Tenant sliall not LM obligatcd to rcpir any damage wliicli Liintllord is rcquired to ropair under Article Seven (I1;imagit or Destruction). In addition, Landlord may rcquirc Tenant to rciiiovc any altcrations. additions or improvcmcrits (whcthcr or not made with Lnndlord’s corisent] prior to tlic expiration of tlic Lcasc mid to restore tlic Property to its prior condition. oll oI Tenant’s expense. All iiltcrations. additions ;itid irnl~rovciiiunts wliicli l.mdlord has not ruquired ’T~nant lo rcmovr shall bccomc Lindlortl’s property aiid sliall tic siirrcndcrcd to Landlord II~UII tlic axpiriition or carlicr termination 01 the LcGso. cxccpt tliiit Tttnunt limy reiiiovi! ally of Tenant’s niacliiricry or Lquipmcnt wliicli can be removed withoul materiol damage to the I’ropcrty. Tenant sliall ri:piiir. at Tenant’s cxpcnsc. my diimago to tho Property caused by thc removal of any such niachinery or txluil#nicnt. In no event, Iiowcver. sliall Tcnanl remove any of the following materials or quipmcnt (which sliull tw? dwnied Liindlord’s propcrty) williout Landlord’s prior written conscnt: ony power wiring or powcr p~cls: lighting or lighting fixtures; wall covcrings; drapes. blinds or ollicr window coverings; carpets or oclrcr floor covcrings: heatcrs. air conditioners or any othcr hating or oir conditioning equipment; fencing or security gates; or other similar building opcroting equipment oncl dccorotions. ARTICLE SEVEN: DAMAGE OR DESTRUCXON 7.01. Partial Damage lo Property. 1 ant shall nolify Lundlord in writins iiiimcdiatcly upon thc 0ccurreiicc ofin)’ diImOgC lo Ill12 I’fOIJCrfy. If the is only portially damagcd 1i.c.. less thon fifty percent (50%) of tlic Property is unti:nunt;iblc as a result 01 such damage or loss than filly percent [5otyU) (If Tc~ii~tit’s alic!rations arc iiiittt!rially ini~iairi!tl) iiiid if tlic proceeds recoivcd by Lil~idlord fro~n the ilisuraliw politics described in 1)iirugrapIi 4.Ol(b) we sufficient to pay for the necessary rcpoirs, this ~casc sIi;~iI rcinniii in cfrI:ct ;inti LiiniIIord sIiuII rqiiiir the dani;igc as soon as rGasonelly possible. Lendlord may clcct (but is nut rcquircd] to rcpuir any damage tu Tennnt’s fixturcs. equipment. or improvemcnls. @ 1988 Southern Cnlilcrnin Clilililcr I1 Initials -3F- q (Mulli-Tenant Grw Form) of tho Socinty of Intlustriol and Oflico Kuoltors? lnc. -e, .-. 0 (b) If tlic insurancc ~irocccds received by Landlord nrc not sufficit!nt to pny the entire cost of rcpnir. or if 0 causc of tlic damage is not coyred by the insurnncc policies wliicli I.;iiidlord mnintiiins undcr Ibrogrnph 4.04(t Landlord mny clt:cl cilhcr lo (i) rcpriir tlic tlarnn~c os soon ns rcnsonilljly Idssiblc, in which cow lhls Lcoso sho remain in full force and cffcct. or (ii) tcrininoto this 1.cusc us of tlic dale llie cltimnRo occurred. Londlord shut1 noli Tenant within lhirty (30) days uhr receipt of notice of the occurrcncc 111 tlic darnogc wlictlicr Lnndlord olects rcpeir !he dnrnagc or Icrrninatc tllc Lcasc. If landlord clci:~s to repair the tliimnge. 1- u ' ..' ' and, if tlie domngc wns tluc to an act or omission Tenant. or Tcnnnt's employccs, ngcnts. contrnctors or invitccs. Ilic diffcrciicc bctwocn the nctuol cost of repair ai any insurance procmds received by Lnndlord. If 1.nntllord clccts to teriiiinole this Lcosc. Tenant moy elect continue this Lease in full force and effect. in wliicli cnsc Tenant slinll rcpnir any damngo to the Property and a~ building in which the I'rolicrty is locntctl. Tcnnnt shall pny the cost til sucli rcpnirs. oxccpt that upon satisfacto completion of such rnpnirs. 1.ondlord slinll dclivcr IO Tonarit any insurance proceeds received by Landlord for t! damngc repaired by Tcnnnl. Tcnnnl sliall givc Lnndlord written notice of sucli clcction within tcn (10) days afl receiving Landlord's termination notice. (c) If the damagc lo the Property occurs during the lasf six (6) months of the Lcuso Term and such damage w require more than thirty (30) bnys to repnir. either Lnndlord or Tenon1 niay dcct to tcrminatc this Lensc as of the dc the damage occurred. rcgnrdlcss of thc sufficiency of ony insuroncc procccttls. Tho porty electing to terminate ll Lease shall give written iititification to Ihe othcr porty of such electicln within thirty (30) days after Tenant's notice Landlord of the occurrence of the damage. .. Y Seclion 7.02. Subslantial or Total Destruction. If tlie I'ropcrty is substanliolly or totally destroyed by a cousc whotsocvcr- ' '* ' ' " .' - q .a rcgnrdlcss of wlicttiitr l.nntllord ri!ceivcs ony insitriincc procccds. lliis Lcnsc shnll tcrminntc os of the date t tho Propcrty at Landlord's svlt: cxpciise. cxccpt that if tlic destruclinn was causod by an act or omission of Tena Tenant shall pay Landlord the difference bctwccn Ihc actual cos1 or rcbuilding nnd any insurancc procoeds receiv by Landlord. Section 7.03. Temporary Reduclion of Rant. If the I'ropcrty f-_l or tlamngcd ond Landlord Tenant rqxiirs or rcsliirc?~ tlic l'roprrty pursuant to the provisions of tliis Arliclc Sovcn. nny rent payable during 1 period of sucli dam;igi!. repiiir iintllor rcslorntion shall IJC rcdiiccrl accordiiig to Ihc dcgrcc. if any, to which Tcnar use of llic I'roporty is iiii1iiiiri:tl. I lowcver. tlie reduction slinll not cxctattl 11ie sum of ona ycnr's payment of Base Re l~xccpt for such possililc: rwluction in Uusc Rcnl. t- f-~ l'ciinnt slinll not hc cntitlcd to ony compensation. reduction. or reimbursement fri Londlord as a result of iiny dilmcige, destruclion. rcpnir, or restoration of or ta tlie I'ropcrty. mcept for dam e and destruction caused by the Landlord in repairing or restoring the property. 8ction 7.04. Waiver. Tenant waives Ilic protcctian of nny stattito. code or iudicinl decision which grnnt lennnt tlic! riglil In tcriiiiiiatu n Icaso in tlic nvi!nt vl the siibstnntinl or II)I;II ilr?structinn of the Icnscd property. Ten ngrccs lliiil the provisinns of Section 7.02 nlmvcl shall govern Ilic rigtits nncl rhligntions of landlord ond Tenant in event ol any substnntial or totiil dcstruction to tlic Property. ARTICLE EIGHT: CONDEMNATION If nll or nny portion vf tlic I'roliorly is tnkcm under the power of r!minnnt clomniii or sold under the thrcot oft power (all of wliidi nrc c:illcd "Cuii~li~iiiiititi~iii"], this 1.ciisc slitill torininnti! ;IS to tlic part tiikcn or sold on thc date condcmning nutliority tiikos litlc or posscsSion. wliichcvcr occurs first. If inure tlinn twenty percent (20%) of the n orea of the building in which the I'ropcrty is lociitod. or which is located on tltc I'ropcrty. is tukcn. either Londlorc Tennnt mny lermiiinlo tliis I-ciise as of the dalo the condcmning authority tiikcs title or posscssion, by deliver writtcn nolicc to the: otlicr williin Icn 110) days nflcr receipt or writlon noticc or sucli taking [or in llic obscncc or SI nolicc. wihin !cn [lo) days nRa (lie conchining nutliority takes tide or passessiori1,'lf i@hh&fkh&ord ria?T& iermir~8ros this Lcaso, this hasc slinll rcmiitn in cffccl as 10 IIIC portion of the I'ropcrty not takcn. cxcept (hot tho 0 Rent and Additional I<cnt sliiill be rcducotl in proportion to tlic reduction in the floor area of the Propcrty. f Condomnnlion award or paymcnl sliall lie distributed in thc following ortlcr: (n) first. to any ground lessor, mortga or bsroficiory undcr a tlccrl of trust encumbering the Property, the ninount of its intcrcst in the Property; (b) seco to Tamti:, only tlic aniount of any award slicc:ificolly designotcd lor loss of or damage to Tenant's trade fixture: rcmoveblc personal property; and (c) third. to Lindlortl. the remainder of sucli award. whctlicr as compcnsation rcduclion in the vnluc of the lensclioltl. the tiiking of thc fcc. nr otharwisc. If this I.cnse is no1 terminated. Lmdl sh;ill repair any diimagc III ~Iic I'rolwrty r:nusc:cl by tho Condcmnntioii. C:XCC~J~ Ilia1 lAindlorcl shnll not be obliRotcc ropair any damagc for wliicli Tunant l~ns IJwn rcimburscci by tlic contlcnining uutliority. If the scvcrancc dams recoived by Landlord nrc not sufficient to pny for such repair. Landlord slioll have the rlght to olther termlnate 1 Loose or mnke such repair ot LnndlorrC'rexpcnsc. ,- . ; -. ~ -.-z -- -. @ inan Soutlrern Ciilifornin Clinptcr !I Initids +=----- of t~io Swirly of lnciustrinl mT Hncl clffict! I<c;illrlrs* Inc. [Multi-Tananl Gross Form) 0 ARTICLE NINE: ASSIGNMENT AND SUDLEITINC Section 9.01. Landlord's Consent Rcquimd. No portion of tho I'roiinrty or of Tcnont's iritcrnst in this Lense may be acquimd by ony othcr pcrson or entity. wliethcr by sulo. assi~nment. niurtgi~gc?. sublcasa. trunsfcr, opcration of Iaw, or act of Tenant. without Landlord's prior writtcn consent. excelit us provided in Section 9.02 below. Landlord has Ihc right to grant or withhold its consent os provided in Section 9.05 bclow. Any attempted transfcr without consent shall-bo void and sliull conslilutc P non-curhle brcucll 01 his haso. II Tcnnnl is il partnership, any cumulotivc transfer of more thnn twcnty ~icrccnt (20'%,) of the partncrsliip interests shall require Liindlord's consent. If Tenant is a corporation. MY change in tlic ownership of o controlling interest of the voting stock of the corporation shall require Landlord's consent. Section 9.02. Tenant Alfliale. Tcnant mny nssign this Lcosc or sublense the Pmyicrty. without Londtord's consent. to any corporntion wliicli contrtils. is controllcd by or is undcr common control with Tcnnnt, or to any corporotion rcsdting from die mcrgcr of or c:t~~isolid~ition with l'cuiint ("Tenant's Affi1i;ltc"). In such GISC. any Tenant's hlfiliale shull assume iii writing all of Tcnunt's obligations under this Lcusc. Section 9.03. No Kelease or Tenant. No trunsfcr pcrmittcd by this Article Ninc. wlietlior with or wilhoul Landlord's consent. shull rclease Tenant or change 'Tcriarit's primary lialiility to pay 1110 rent nnd to perfonn all OUICI obligations of Tenant under this Letlse. Landlord's acceptance of rcnt from any other person is not a waiver ol on) provision of this Article Ninc. Consent lo one transfer is no1 u consent lo uny subscqucnt Iransfcr. If Tenant': transferee dcfaults under this Lime. Laidlord may proceed directly agiiinst Tenoat wiOmt+ursuing remedic! against Ihc trOnsfCre0. hdlord ruuy consc!tit to subsequent assignments or modifications of this hase by Tenant'! Ironsfereu, without notifying Tenant or obtaining its consent. Such action sliall not reliuvo 'Tcnnnt's liability unde this Lease. Section 9.04. Offer lo Tcrminatc. If Tenant desires to nssign tho Loose or subloose tho Property. Tenan shall hove tho right to offcr. in writing. to torminote thc Lensc ns of a date spccified in the offw. If Londlord elects is writing to accept thc offer tu temiinatc within twenty (201 days after iioticc of, the offer. t(ic 1.casc shall torlninate as o the date spccified and all the terms arid ~ir~~visions of tlie Leosc govcrriing termination sliall ;ipl>ly. If Landlord doc! not so elect, thc Lcusc sliall continue in effect until otlierwisc tcrminatcd ond the provisiolis of Section 8.05 wit1 respect to any proposed transfer sliall continue to apply. Scction 9.05. Landlord's Conscnl. (a) Tennnt's request for consent to any Iriirdcr described in Section 9.01 shall sot forth in writing 1110 detoils 0 the proposed transfer. including tlic narnc. business and finiincial condition of the pros~icctivc trntisfureo. linnncia details of the proposed transfer (c.g.. tlie timn of and tlic rcnt ond security deposit piiyihlc under any proposcq assignment or sublcase]. aiitl tiny otlier iiiforniatioii Liiiidlord dccnis relevrini. Landlord sl~all have il~c right II withhold conscnt. if reusonalile. or to grant coiisetit. biiscd on tl~c following factors: (i) tllc busirlcss of thc propose( assignee or subtcnaiil and tlic proposcd usc of tlic Properly; (ii) thc ncl worth ond finiwcial rcputation of th, proposed assignee or subtenant; (iii] 'I'eni~nt's compliance with all of its obligations umler tlie ~,cusc; nnd (iv) sucl other factors as Landlord may rcasonably dee~ii rclcvant. If landlord objects to a proposctl ;~ssiyiimcni solely hcaus of the nct worth and/or financial reliutalic~n of tlw proposed ussigncc!. Tenant may ~io~i~tlicle~~ sublcase (but na ossign], oll or a portion of the I'ropcrty to the proposed transferee, but only on the otlier terms of the propose1 transfer. he execution and performance c costs of rcnovation or construction c Tcnnnt is entitled to rccover such costs an rc to 1Andlord. The Prolit in thc case of a sublcas blensed spacu os o perccntogc on o square footage basis writtcn stutcnicnt ccrtifying dl urnpunts to be paid from an within tliirty (30J days after the transaction Uocumcntalion is signed. on wks iind records to verify tlic occuracy of such statcmcnt. On wriltcn rcqucs ish to Lindlord copies of all tlie trnnsoction documentalion. oll or which shall t h coinlhte. truc irncl correct. Landlord's recoilit or Landlord's Slim shill1 not bca consci Section 9.06. No Mergcr. No incrgcr shall rcsult from Tcnnnt's sublcase of the Prolierty under this Artic Nine, Tenant's surrcndcr of this Lcusc or the terminntion of this LC;ISC in nny other miinner. In ony such even Landlord may terminulc ony or ell subtcnuncics or succood to tho interest of Tunnnt os sublandlord under any or o aubtenancies. 0 1988 Soulhcrn Colifornin Cliuirler 10 lnilirls q (Mulli-Tenanl Grow Forni) of the Society of Industrial and Offico Kueltorso Inc. 0 e ARTICLE TEN: DEFAULTS: REMEDIES Section 10.01. Covenants and Conditions. Tcnonl’s pcrforrnnncc of cncli of Tennnt’s obligntions undor th Leosa is n condition os wdl ns n crivcnnnt. l’cnniit’s riNht to coiitinuc! in posscssinn of tlic I’ropcrty is conditionc upon such pcrformmct:. Tirni: is ol tlic csscncc iii tho pcrfnrmoiicc ol ill1 covcnanls and conditions. Section 10.02. Defaults. Tcnant shall bc in rnutcriul dcfuult under this LC~SC; (a) If Tcnant abandons tlie Property or if Tcnnnt’s vocation of tho l’ropcrty results in the cancellation of a: (b) If Tcnanl foils to poy rent or any othcr charge when duc; (c) If Tenant foils Io pcrform any of Tennnt’s non-monetnry ohligolions under this Lease for n period ol thir (30) days nfter written noticc rrom Landlord; proviclcd thnt il more than tliirty (30) days ore required to complete sui perforrnancc. Tenant sliall not be in dcfaiilt if Tcnont cornmcnccs such pwforniancc within tlic thirty (30) -day peril and thcrcoftcr diligently ]~ursues its complction. 1 lowcvcr. Lindlortl shiill not be rcquircd to give such notice Tenant‘s fnilurc to pcrfrirm c nstitutes n non-curnblc brooch of this Lciisc. The noticc required by this Pnrngroph intended to sotisfy my nnd a71 noticc rcquircmnnts imposed by Inw on Lindlord end is no1 in oddition to any sui requirement, (d) (i) If Tenant mnkcs a gcncrnl assignrncnt or gencrnl arrangemcnl for thc benefit ol creditors; (ii) if a petitit lor adjudication of bnnkriiptcy or for rcorgnnizntion or rcnrrnngcmenl is Cilcd by or ogoinst Tenon1 and is r dismissed within thirty (:IO) days; (iii] if n trustcc or receiver is nppoiiited to tnkc posscssion of substnntiolly all Tenant’s assets locatcd nt thc Property or or Tcniint’s intcrosl in this Lcnsc and possession is not rcstored lo Tens within tliirty (30) days; or (iv) if substnntiolly oll of Tcnnnt’s r~sscts Inc:nlad at the l’roperty or of Tcnont’s interest this Lcase is subjcctcd to attachment. cxncution or other judicial scizurc which is not discharged within thirty (2 days. If n court of coinlicltrnl jurisdic:linn t1r:tcrmines lhiil nny ol tho x:ls t1i:sc:ri~ictl in this siibparngruph (d) is no default undcr this Lcnsc. niid n trristoo is nppoinlcd to tnko posscssion (or il Tnnant rcnioins o debtor in possessic and such trustee or Tenant lrniislers Tenant’s intcrcst hcrcuntlcr, thcn Lmidlorcl slinll rcccivc. os Atlditionol Kcnl. I cxccss. if any. of the rcnt (or any othcr consideration) poid in conncction with such assignment or sublcosc over I) rent payohle by Tenant undcr this Lease. insurance described in Section 4.04; (c) If my guarantor of the Lcosc rcvokcs or othcrwisc terminates. or purports to revoke or othcrwise tormina! any guaranty of e11 or nny portion of Tcnont’s obligntions under tlic Lcasn. Unless otlicrwisc expressly provided. I guaranty of the Lcosc is rovocablc. Section 10.03. Remedies. On tlic occurrence of any mntcrinl dclaiilt hy Tcnnnt. Londlord mny. nt any tir thcreaftcr. with or without noticc or ctcrnond niid without limiting Liintllrird in the cxercisc of any riglit or reme1 which Landlord may hnvo: (a) Tcrminatc Tcnnnt‘s riglit to posscssion ol the I’ropcrty Iiy any InwfiiI mcons. in which coso this Lcosc sh Icrrninate and Tcnant s11;ill iinrnotlietcly srirrcndcr posscssion of tlic: I’roporty to Lindlord. In such event. Landlo shall bc niilitlcd tu ~DCIIVP.~ from ’I‘onant all tlaningcs incurrcd hy Lnndlorti by rL%son of Tcnnnl’s dcfault, including tlic worth iiI tho limo nl Ilia award of llic iinpaid Haw Reiit. Additional I<c:rit and otlior clinrp,cs which Landlord h enrncd nl Ih litnc of llic Icrminiilion: (ii] 11ie worth ut llic timc ol tlic! awnrcl ol 1110 amount Ly which tho unpaid 0s I<cnt. Additioiinl Rcnl and ollicr clinrges wliicli lsndlorrl would Iinvc! ciirnetl alter lcrmination until thc lime ol 1 nward cxccctls thc amount of such rcntal loss tliiit Tenant proves landlord could hnvc rcnsonably avoided; (iii) I worth at tlic limc or tho ownrd of the ninoiint by wliicli tho unpoitl Iliisc Kcnl. Addilionul Rent nnd other charg which Tcnanl would liavc paid for tlic bnlnncc of thc Loose tcrm oftcr tho lirnc of award exceeds tlie omount of sui rental loss thut Tcnnnt provos Londlorrl ~~~tiltl Iinvc rcnsonnbly avoiclccl; and (iv) any othcr umount necessary compensate lsntllorcl for ail1 hc dtrtrirncnt proximotcly cnuscd by Tcnnnt’s fnilurc to perform its obligations und the Lcosc or which in tlic nrriinary cciiirsc of things would bc likely to rcsult tlicrefrom. including. but not limited I any costs or cxpcnscs 1,aiidlord incurs in rnaintoining or preserving the Property nftcr such dcfnult. !he cost recovering ~iosscssion ol thc Propcrty. cxpcnscs of relctting. including neccssnry renovation or olteration of t Property. Landlord’s rcnsonabla attorncys’ fws incurrcd in conncction thorewith. and any reo1 estote cornmissit paid or pnyoblc. As used in subpnrts (i) and (ii) ubovc, the “worth a1 tlio time or tlic award” is compulcd by allowi’ intorest on unpaid anlotints at thc rate of fifteen pcrccnt (15%~) per nnniim. or such lcsscr amount as mny thcn be t mnrimum Inwfiil rille. As used in sulilx~rt (iii) nhove, the “worth ;it tlic time of thc award” is computcd dismwnting such nmotirit ut tlic discount rate of thc Pcdcrnl Resnrvc llnnk of Sari Francisco i11 the limc of the awai plus ma percent (1%). If Tennnt tins nlinntlonctl tlic I’roporty, I,intIlorcl sliull hnvc the option of (i) rctoki poss@un of the I’rol)crty and rtxovcring from Tcnnnl the nmounl specificd in this I’arngraph 10.03(0). or ( procoeding under l’nragrapli 10.03(b); (b) Maintnin Tcnnnt‘s right to ~iosscssion. in wliicli cosc this I.cnsc? sliall continuo in effect whether or r Tcnont has a11andoni:tl the Prolitrrty. In such cvant. Lnntllord slinll be ontitlcd to enforce ell of Landlord’s rights ai rcmodies under this I.cose. including 1110 riKht to rccovcr tho rcnt os it Iwcomas due: slat0 in which thu Property is loco~od. (c) I’ursuc any other remedy now or licrcuftor ovoiloble to Landlord under the lows or judicial decisions of 11 1 0 1808 Southern Calilornio Clinptnr 11 Initials of the Sociely or lndustriol nnd Officn Kcnl~ors,* Inc. 937 2 (Muhi-Tenanl Gross Form) F- 0 0 Section 10.04. Repayment of “Free” Kent. If this Lcusc provides lor a Iiostlioncmciit of iiny monthly rental payments. a period or “frcc” rent or othcr rent ciinccssion. such postponed rent or “frcc” rent is called the “Abated Rent”. Tcnant sliall be crc:dilcd willi Iiaviiiy piid all ol tho Abated Itcnl on the expiration (11 the Lciisc Term only if Tenant has fully. ~i~itlili~lly, and ~JUliCtUally pc:rformcd all ol Tcnunt‘s obliKolions Iicrcuntler. iiiclutling [lie payment of all rail (olhcr lhon lltc Abalcd Hcnl) iind 1111 ollicr monc!lilry oblil(iilions iitd llic surrentlur of llic Properly in tlic pliysical condilion rciltiirud by lliis l.t!xsc. l‘ciiiml iickn1JwIcdgc.s tliiil ils riglil tu receivi: cridil for Ilic: Abalud Ken1 ii absolulely condilioned upon ‘t‘en;inl’s lull. Iiiitliful iiIId ~~u~ict~iul pcrloriiiutic:c ol ils obligiilions under this Ixasc. I: Tenant dcfoulls and docs not citrc within aiiy apl)iicablc grace period. Ilir: Abated Kent sliall immediately bccomt due and payable in full and this I.casc: shall be enlorccd as if there were no such rent aliatcmcnt or othcr rcn concession. In such case Abated Kciil sliiill IIC! cu~cu~irlcd basud on !lie full initial rimt payalrlc under this Lease. Aulornalic Terminalion. Nolwitlislanding any other term or provision licrcol to llic conlrary the Lcasc shall terminnte on the occurrenix of any act wliich affirms tlw Landlord’s intontion to terminate Ihc Leas1 os providcd in Saclinn 10.03 Iicroof. includillg Ihc liling ol :in unlilwIul dchincr aclion against l’enanl. On SUC~ termination. Landlord’s damages for ilcfauli sliall indude all cos15 and fws, including rcasonublc attorneys’ Ices Iha Landlord incurs in connection with the riling. con~nicnccment. pursuing iindlor defending of any oclion in an’ bankruptcy court or otlicr court with respect to tlw I,oiisc; the obtiiining of relief froin any stay in bankruptc restraining any action to evict ‘renolit: or tlic: pursuing of any action with respect to landlord’s right to possession c the Properly. All such damagcs suffered [apiirt from Uasc Kent and othcr rcnt payable liercundcr) shdl constitut pecuniary damages wliich must be rciinliurscd to Landlord prior to assumption of the Lcose by Tenant or an successor to Tenant in any bankruptcy or ollier proceeding. Section 10.06. Cumuhlive Remedies. Landlord’s exercise of any right or rcmcdy sliull not prevcnt it fror Section 10.05. exercising any othcr right or remedy. ARTICLE ELEVEN: PROTECIION OF LENDERS Subordination. ~iiiii~~ord sIiaII Iiuvc t~ie riglit to suI)orrlinatc this Loose to any ground leas1 deed of trust or mortg;igc cncuiiibcring tlic I’nilierty. any advniiccs midi: on tlic security tlicrcof and any renuwol’ modifications, consdidiitioiis, ri:~~liict:tni~~~ts or extensions tlicrcor. wlii!ncver made or recorded. Tenant slia cooperate with Landlord and ;iny Icndcr wliidi is acquiring n scciirily intt:rest in tlic I’ropcrty or tlic Lease. Tcnai sliall execulc such lurllicr tlocuiiicnts and iissuriinces as such lciidcr may require. provided that Tenant’s obligatior under this Lcasc sholl not be increased in airy miitcriiil way [the ~icrhrin;iiicc of ministerial acts shall not bc dwmc material). and Tenant shall not be deprived of its rights undcr this Lease. Tctiant’s right to quiet possession of tl Property during thc Loasc Tcriii sli.ill not be disturbcd if Tenant pays llic rent and performs all of Tcnanl obligations under this Lciisc and is not otlicrwisc in dclault. If any griiuiid Icssor. bt:noficiary or mortgagee CIL~IS I have this Lcnsc prinr to tlic liwi of its groiintl Iciisc. dacd of trust or mortgago and gives written notice llicrcof I Tcnanl, this Lcasc Shilll IJC tlwnictl Iirinr tu siic:h ground Icasi:, deed of trust or niortK;igc wlicllicr this Lcasc is dilIc prior or SULSCC~UCIII to the JOIC of saiJ grr~~l Lsc. JCC~ or trust or mortgage or the Jato or recording tllcrcol. Allornment. Il I.aridlortl’s interest in tlic Propi:rty is iicquircd by iiny grtiund Icssor. bci cficiury under a did iir triist. niortg;igc:c:, or Iiiiri:Iiiisor at a rorccl(~surc silt:, 1‘cn;int sliall attorn to tho transferee of I successor to I.antllurtl’s intcrt!st in tlic l’rolicrty aiid rcr:cignizc such tr;insfcri!c or successor ;is Liindlord under 111 Lease. Tenant waives tlic liriitcctiiin iil any st,itii!i? or rule of law wl1k:li gives ur piirports to give Tcnant any right terminate this Lcasi! or surrcndi:r Iiosscssii)ii of the l’ropcrty upon the transfer of Iiuidlortl’s interest. Section 11.01. Scction 11.02. Seclion 1 I .03. -Signimg nr Documcmls. Tciiiinl sliall sign and tlulivc:r iiny instriimciil or documents necessai or nppropriiitc to cvidciicc airy s~icli attornment or subordinalion or iigriwncnt to do so. If Tenant fails to do ! within ten (10) (lays ;iller written rcqucst. Tenant Iicrcliy niakcs, c:oiistitutes and irrevocably appoints Lundlord. I any transferee or successor of hiidlord. tlic attorney-iii-fuct of Tenant to cxccutc and delivcr any such instrument I document. Section 11.04. Esloppel Certificales. [e] Upon Lnndlord’s written request. Tenant sliull cxecutc. acknowledge and delivcr to landlord o writli statemcnt certifying: (i) tlint none of the tcrrns or provisions of this Lcuse hove hwn changed [or if they have bel changad. stilting haw they have bcen clianged): (ii] tliat this Lease Iias not btxn cancelled or terminated; [iii) the IS date of paymonl of tlie Uusu Rent and otlicr c:linrKcs and tlic time period covcrcd by such payment; (iv) that Landlo is nd in doloull under this Lease (or, if Landlord is claimed IO be in default. stating why); and (VI such otli representations or inforinnlion wilh rc:spcc:t 10 ‘rcnant or the LCOSC as hndlord may reasoiiiibly rcclucst or wliich ai prospective purchascr or encumbmnc:cr of the l’ropcrty may require. Timant shall delivcr such statement to Landlo withis ten (lo) dnys uftcr l.anillortl’s ri:qiiest. I.uiitllord mny give nny such statcmont by Tonant to any prosl~ecli purchaser or encumbrunccr of the Property. Such purchaser or cricumbranccr may rely canclusivcly upon sul slatemonl os true and corrccl. (b) If Tcnenl docs no1 dclivcr such s~atenieut to Lnndlord within such ten (101 -day Iicriod, Landlord; ond a prospective purcliuser or encumbrancer. may conclusively presume and rely upon tlic following facts: [i) that t terms and provisions of this Lciisc have not bccn clian~ed except ns otlierwisc rcpri:scntcd Iiy landlord: [ii) that 11 Leasc has not bccn caticcllcd or ~crniiiiati:d cxcqit as otherwise represented by Lindlortl; (iii) that not more than o month’s Base Rent or otlicr cliarKcs have been paid in ndvunce: and (iv] tliet Lnndlord is not in dofault under t Loase. In such event. Tcnniit sliall be CStOlJpCd from dcnying the lrulh of such facts. @ 1988 Southcrn Gtlifornio Chaptar 12 litilids of Ihu Society of lnclustri.d mT and Oflice Hodtors? Inc. (Mulli-Tenunl Gross Form) 4 0 ' Section 11 .OS. Tenant's Financial Condilion. Williin ten (10) thys idler writlcii rcclwsi from I.iindlord, Tenant sliall deliver to L,intlloril sucli finxiiciiil SI~III:I~II:IIIS as l-iindlurd rc:~suii.dlly requires tu verily 1111: niq worth of Tcnanl or any assifinci:, siil)lcn;inl, or fiiiiiraiitor ol '1'cn;Inl. In ;iddiIion. 'I'~!ii~iiit sliiill di:livi:r 111 iiny lt!iidi:r dcsit;natcd by Landlord any finiinciiil sl.iteini:nts rciIiiird by such Iwdcr tci fiicilitiiti: the! fiii:inc:ing or rt:filiiil1ciiig of tlit: I'ropcrly. Tcniinl rcpriwiits and w;irr;inls 11) liin~llord 111i11 ciicli such financ:i;il shti:iiit:iit is ii Iriia iind accurnlc slatcmonl as of tlic diik of siicli s1;iIcnit:ni. All liiianciiil slalcincnls sh;ill lie wnlidt:nIi:il and sli;ill IN: IISI:~ o111y for thc putposcs scl furlli in Illis Lcasc. AKTICLE TWELVE: LEGAL COSTS Section 12.01 Lcgal I'roccedings. If 'I'cniint or Landlord sliall bc: in Iircdi or dcfitult under lliis t,easc. such party (tlic "Dclaulling I'iirly'.) sliall ri!iniltiirsi: the: ullicr Iiarly (Ilie "Ni,iidi?liiiilling I'arly") uImn cli:in;ind fur iiny costs or expcnscs 11ii11 the Nontlcfuiilting l'iirty iiicurs in i:oiiiu:clioii with iiiiy lir(::ii:li or dcf;iiiIt of tlii: l)diiiiltilig I'iirty under lliis I.i:asi!, .\ Iicllicr or INII siiil is (:tiiiiini:iic~:cI or jiidgintml t:nti:ri:il. SUI:^ CAISIS sli;ill iiic.ltidc Ii!x;il fi:os ;ind COSIS incurred lor ~lic: ni:Rotiaticln ol a sc~tIi~in~:n~, r:nlorccniont ol rialits or iillwrwisi:. k'iirtlicrniori!. il any ncliun fur breach ol or to cnlorcc tlic provisions of lliis I,i!as(: is coinincnced. llii! court in stit:h ii(:liiiii sli;ill iiwartl IO 11it: party in wliosc liivor a judgment is i:nteri:d. a ro;isuii;iblc si1111 iis iittornoys' li:os ~ntl r:cisls. TIII: losiiia party in siic:li iiclioi shall pay such ;itlornc:ys' fcos iintl wsts. TI:II~II! sli;ill iilsn intl~:ninify l~iinilliiril iig;iinsl ilntl Irultl L.iindliirtl h;irnilcs from all costs. I:X~I:II , ~It!ii~iiiiils ;in11 liiiliilily l.~indl~ird niay iiic:iir il I;inilliirrl 1)i:i:uiiit:s or IS 1iii1111: a Iiiirly tu ;in claim or action (a1 institiild by Timiitit iigiiinst any third Iiiirty. or Iiy imy third 1i;irty iig;iiiisl .l'cnitiit. nr by or ;#gains any person Iiolding iiny iiilcresl under or rising tlic I'roperty by liwnsc 01 or iigrecinc:iil with 'I'cnanl; [b) lo loreclosure of any lien lor labor or ma(criiil luriiislicd IO or lor Tc:nnnl or siicli other pt!rson; (I:) ollinrwisc arising ou of or rcsulting lrom any XI nr ~r;ins~ictiiin nl 'I'i:nant or such ollicr 1ii:rsoii; nr ((I] ncc:css;iry to prcitoct Landlord' interest iinclw tliis Lciist! in ii biinkriiIiIcy Imir:c:ctliiiR. ur otlior prni:i:i:ding iintlcr 'l'itlc I 1 (11 1111: IJnit~:rl Sl;itcs Codt as amended. Tcniinl sliiill tldenil Iiindlor~l iigiiinsl iiiiy sut:li (:Iiiini or a:tiuii iil 'rc:iiilnl's I:X~II:IISI: willi coiinsc reasona61y acc:cptat~~c IC, LuiidIurcI or. ;it Iiiii(IIord*s cIcc;tion. 'rcniini SIIUII rciinliiirse LiintlIord fur any legal rccs o costs Landlord incurs in any siii:li claim or iicliuii. Section 12.02. Landlord's Conscnt. 'l'i:niinl sliall pay ~~iidl~ir~l's rwwnalili: iilttrrncys' fuos incurred i conncclion with Tcnml's rcclucsl for l.iinill~ird's cciiiscnl uiidcr Arlicli! Nine (Assignnic:nl iincl Sublelting). or i conncclion with any otlicr act wliicli Tcnaiil Iiriipiism to do and wliidi rocliiircs Landlurtl's r:onscnt. ARTICLE TI IIR'TLEN: MISCELLANEOUS I'KOVISIONS Scclion 13.01. Non-Iliscriminalion. '1'i:iiiiiit Iironiiscs. ;ind it is ii i.iiiiditiim IO 111c i:iiiiiiiiii;iiici: of Illis t.ciis~ tlinl tlicro will Ill: nu ilisi:riiiiiii;i1i'iii ii~llinht. or wgrcgiilion or. iiny Iwrson or xrtiiiji I)( Iwrsims OII IIII: Iiasis Or ram color. sex. crccd, nu~ion;il uriyiii or ant;c:stry in tlii: leasing. siilili:,ising, irmislcrring. oi:c:iili;ini:y. 1i:iiiiro or use ol 111 Property or any portion ili~:rcd', Sectiun 13.02. (e) As usctl in lliis I.I-~IsI!, Ilic 1i:rni "l.iiiiilloriI" iii~:;iiis only 1111: wrrent 1iwiii:r or owners of 11ic lee litlt: to 11 l'ropurly or 1'riiii:t:I or 1111: Iiusclii~lcI 1:s1;111? riiiil~:r ii gri~uiicl Ii:;isi: 111 1111: l'ro~n~rly iir I'IIIJCX.~ .it 1111: liint: iii iliicstici Eiicli Landlord is iililigxli!il 111 \ii:rliiriii 1111. uliligxtiims ul I.;iiidlid i1iidi:r lliis 1.1:iisc wily 11i1~1n1: 111i: 1iiiic si11 Landlnrd owns SI~I iil1t:rI:sl or 11111:. Any l.~iii~lIoril wliu triinslcrs ils 1111~ or in1t:ri:sI is rcliwd III ;ill li.ibilily wi rcspoct 10 11~: iibli1:iilims 411 l.ciii~llortl uiicIi.r IIIIZ [.I:.IsI: 111 111: ~iixlornid 1111 iir ,111i:i tlic: tliitc: 111 tr#iiislc:r. I 1iiwwi:r. oiii Landlord sliiill dclivcr 10 its triiidcrix iill lii~ids 11iii1 Tc:nont prwioiisly piiitl if siii:li funds IIIIVI: niit yi:l liccii iipplii under Ilic tarins of this 1.1:asc. 1.andlord's 1.iiibility; Ccrtain Duties. (1) TCII;IJII sliiill givr: wril!i:ii iiutii:c ~JI iiny l;iilurc by I,andltircl III Iicrforin miy cif its ulili~~i~ii~iis under this Lc;i to Landlord ;ind lo any ground I#!Xsor, iniirtg.igi:i: or liwcliciiiry uiidw aiiy ilixil cil Irust i:ni.iinib~!ring !lit: 1'ropi:r wliosc namc: iincl arldrc:ss Ii~ivc lit!i*ii iuriiisliccl I(I ~I~~XI~IIII in writing. I.;inillord sliiill iiol lii! iii CII:I~IUII tinth:r lliis 1.i~ unless Iiintllortl (or sii1:11 griii~nil lcswr, ni~~r~g;ig~:c or I~~:iidiciiiry] Iiiils lo curo siic:li ii~lii-~i~:rlorni~iii~:i: williin lliir 130) days ah rccoipl til 'l'cnanl's notice. I 1owcvo:r. ir SII~I non-lierf[lriii;iii~:i: ri!iiswiiib\y ri:qiiiri:s more t~iiin thirty (:' days IO cure. Landlord shall not lie in da:l.itilt 11 such cure is i:uinnii:ncixl within sui:li Iliirty (:\I)) -day pcriod a' tticrcoltcr diligently pitrsircxl IO I.I~~~~I~I:IIIII~. ' IC) N*Jlwil~isliiiii~;i~~ ;iny I(m or ~~ri)vi~ioii Iicwiii IU Ih! cunlr;iry. lilt! lid~ilily of I.;lntliurd br \Ill! pI!I'~Wllall Lindlortl nur 11s 1x11 tiicrs, siiari!li~~li~i:rs, drlccrs or ollii:r priiii.lIi4iki dii111 Iiiivi: iiny 1ii:rsoniiI liability uric of i!& &tiit!% iind oliliRiilioiis uiiiIi:r lliis I.I:,ISI: IX liiiiili:il IU hnilhirit'> IIIII:II:SI III tlii: I'i-olwriy iiiicl 111c 1'rttjax.i. i~ n II scf:tiOib 13.03. Swi!rabiiiIy. A C1,:liiriiiiii;itii)ii tiy ;I court d ~:~i~ii~~~!I~!nl jiiriscliclioii 111.11 iiny Iirowisinii or I Lcasc or any pirt 1Iit:rcid is illi:g.ll or ~i~~~:~i~~ir,:~!~~bl~: sli;ill IIUI t:iuid or tiiv~iliiliiti: 11w ri!ni;iindt:r 111 w(:li liriivisioii tliis Lcasc. which sliiill remain in lull lori:c iind dlcct. Scction 13.04. 1nlcrpri:ldlii)n. '1'111. I .Il~lions 01 tlw Ar1ii;Ics or Si!i:liiiiis of this l~!iisi: iiri: lo iissisl lhc piirlic: reading tliis I.I:~ISI: ;iii(l ,ire not ;I liar1 oi 111,: I,:~IIIS or Iirovisions ril lliis 1.1:iist:. Wlicncvcr rc:cliiirc!cl by IIII: cuntcxt ul t I.cnsc. !lie singular shi~ll int:ludv lilt 1)IkiriiI itlilt tlu: 1iIiir;iI sliiill iiii:liidi: 11w singiiliir. '1'111: ni.lsciiliiii!. Ii:niiiiinc 1 neuter gcndcrs sli;ill i:iii:li incluclt: 111~ otIii:r. 111 any Iiriivision ri:I~i~iiig IO IIIC c.ciniluct. XIS or muissions 01 'l'cnanl. tcrm "'ronillii" shi~ll iiidudt: 'I'c:ti,tIii's ;IK~:IIIS, c:iiililoyi:i:s. ccinlr.ic.lors. invitcws. su(:wssors air irtlicrs tising Properly with Tcniinl's cxpressd or iiiil)li(:il 1it:rniissiwi. 0 I!IUII Siiiiilii:rii (;ilili~iiii.i (:It.i1~i~!r I :I liiilii8ls .. or i~it! ~wvtv 1t~ Iiuiustriill G7 ~INI orrlcl: Ki!,ilttbrs* inl:. -.~ ...... 4- [Multi-Tcnanl Gross iorni) . .~ Section 13.05. Incorporation of Prior Agrcernents: Mdifications. This Lcnsc is the only asreernen1 betwoen the portics pertilining to thc lcasc of the I'roperty ond no ollicr aKrwments nrc cffwtive. All omcndmonts to this haso shall bo in writing ond signeJ by 011 portics. Any other oltcmptcd omcndnlcnl shall be void. Notices. All notices requircd or pcrmittcd under this Lcase shall h in writing and shall be personally dclivercd nr si:nt by cxrtificd mnil, return roccipt rcquested. peistngc prepaid. Noticcs to Tenant shall be delivercd to tlic ntldrcss spccificd in Sc:ction 1.03 obovc. cxcept thot upon Tenant's taking possession of the Proporty. the Propcrty sholl hi! Tenant's address for notice piirposos. Notices til Iiincllord slioll bc dclivercd to the oddress specified in Section 1.02 abovc. All notices sholl bc cffcctivc upon ddivcry. Eilhc:r porty moy chonge its notice address upon written notice to thc otlicr pnrty. Waivers. All woivcrs must be in writing ond signcd by the woiving pnrty. Londlord's failure to enforcc,ony provision of this Lcoso or its acccptoncc of ront shnll not bc n woivcr and slioll not prevent Londlord from enforcing that provision or ony othcr provision of this Leosc in thc future. No stotoment on a payment check from Tcnanl or in o lettcr occomponying a poymcnt check sholl be binding on Landlord. Lnndlord may, with or without notice to Tenant. negotintc such chcck without bcing bound to thc conditions of such stotoment. Section 13.00. No Rcdordation. Tennnt sholl not rccord this Leosc without prior written consent from Landlord. tlowevcr. cithcr Landlord or Tcnant moy require thot o "Short Form" memorondum of lhis Lease executed by both portics be rccordcd. Tho party requiring such recording sholl poy all tronsfcr taxcs ond rccording fees. ninding Effect; Choice of Law. This 1.cosc binds any porty who lcgolly acquires any rights or intcrest in this Loose from IAntllord or Tenant. Ilowcvcr. Londlord slinll have no obligation to Tenont's successor unlcss the rights or intcrcsts of Tcnont's succcssor arc ocquircd in nccordancc with the tcrms of this Lcase. The laws of the stole in which tlic Property is locotcd sholl govcrn this Lcase. Section 13.06. Section 13.07. 1 Section 13.09. Section 1XlO. Corporilc Aulhority; Porlncrship Aulhority. If Tannnl is a corporation, osch person signins this I.onso (nn l><:l~:~lf ot Tcnnni rcl~rt:so~~in "nil wnrriints ilmi Iw liiis rull nuiltoriiy IO do 50 and ihai iliis Lase binds thc corporiition. Witliin thirty (:lo) tlnys dtcr this Lime is si8nt:d. Tcnant slioll clclivcr to Landlord o ccrtified copy of a rcsolution of Trnniit's Donrd of Dircctors oulllorizing the cxcciilion of this Ixasc or other evidence of such nuthority rcasonahly nt:cclitnblo to Landlord. If Tcnnnt is n portnersliip, each person or entity signing this Lcase for Tenant re~ircscnts aiitl w;irriiiits tliot lie or it is n gc!nernl portner of thc portncrsliip. tlint hc or it hos full outliority to sign for the partncrslii[i nnrl llint this Lcasc binds Llic portncrsliip nntl (111 gonerid portncrs of thc portncrship. Tenon1 shall givc written notice to landlord of ony general pnrtncr's witlidrowal or addition. Wilhin thirty (30) doys oftcl this Lcasc is signed, l'cnnnt shull deliver to Lundlord o copy of Tcnnnt's rccordd stotcmcnt of partnership 01 certificotc of limited portncrsliip. joint and Several Linbilily. All portics signing this Lcoso as Tcnont shall bo jointly and sevcrolly liable for all oliligiitions of Tnnnnl. Section 13.12. Forcc Majcure. If Landlord cannot perform nny of its obligntions due lo events bcyonc Landlord's control. tho tinic provit1i:il for pi:rforniing such obligations sliiill be cxtentfccl by a pcriocl of limc cquol IC tlic duration of such uvt:ii~s. I:vr!n~s I~cyond t.nndliird's control includc:, liu~ arc not lirnitccl to. acts of Cod, wor. civi commotion, labor tlisliutns. strikes. firn. flood or other cnsualty. sliortngcs of 1;ibor or moterial. govcrnmcnt regulatior or rcstriction and wo;itlic:r conditions. Execution of Lcosc. 'This Im1s.c mny bc cxcciitccl in coiintcrparts ond. wlicn nll countcrpor documents arc cxociitd. tlic counterparts sh;ill constitute o single binding instrument. I~ndlord's delivcry or hi! Leosc to Tenant shall not bc dccmcd to be on offer lo Icasc ond slioll not bc binding upon cillier porty until cxccutec ond delivercd by both partics. Section 13.14. terminotion of this Lcnsc. . Section 13.11. Section 13.13. Survival. All rcproscntotions and worrantics of Landlord and Tcnant shall survive Ih ARTICLE FOURTEEN: BROKERS Section 14.02. I'rolect Lease, the biiycr or a pting such conveyoncc of !lie I'roperty or ossignmen! of the Lease. t make 011 payments to Lnndlard's Urokcr tlicrcoflor rnquirod of Londlord undl 's Uroker sholl hove the right to bring n Icgal action to cnforcc or dccloro rights undc vailing porty in such nction sllnll bc entitled to rcnsonablc ottornoys' fccs to bo paid by It be rixcd by tho court in such oction. This I'orogropli is lncludod in this Loa: 0 1988 Soulliorn Cnlikirnin Chapter 14 lnitialr or tilo society CIr Iti~ittslrini 9 -i- ond Offirr? Hcoltors? Inc. (Mulli-Tend Cross Form) W m Section 14.03. 0 Landlord cxcIusivcIy; ur 0 both Landlord aid Tcnanl. AIllllTlONAl~ I’I<OVISIONS MAY 111~ Sl?i‘ I~OIU‘I I IN A 1<11)111< ()I< I<ll)liI<S RII’A(:I 11i1) III;l<I.;~() 01{ \N ‘r\I III,ANK SI’ACI: BELOW. 11: Nu AI)UI’I’IONAL I’IUVISONS AIUi iNSL~:l~‘l’b~ll, I’I.k:ASI; UI{AW h I.INE ‘I’i i1<0Uc1 I ‘ri SPACE BELOW. Landlord and Tcnarit liavc signed Illis Lciisc ill (Iic place and on the datus sliccifiud ndjacolit to their signature below and liave iniliallc:tl all Riders wliicli iire ;rllaclied lo or incorporoled by reference ill this &use. “LAN DLORD” Signed 011 _. %3C! -_.--__.__... - crL._ , 19 ~. ... --Palanar..46 .._.-.___. -. _-._...__..__ - -~..~ sh)? &..- ._ - __ .- -. - . . a1 BY. rlliamH. air I,s:Est&ve vice President uy: I_._ ..._- 11s: _-_.__-_ ~____. . .__._ -._ “TENANI”’ Sigiicd on __..._-. . .. ____ -~ . . ,1L __City.-Of~Carl~ball__._ _ ..-_ .- at ______-- ------- -- --. ..- ~. ...- - ~~. . ___ ..... _~_ .__._ ~.~--. - _~_ _-.__ _____ Claude “Bud“ Lewis uy: _._ . -... .~ ..-___.___ Mayor of Carlsbad 11s: _____ .-...-- _.__ - ...-. uy:____--_ 11s: ____. . --__ ---._ - IN. ANY KEAL ESTA‘PE TI<ANSA(X’K)N. IT IS KIXOMMENUED TIIAT YOU CONSULT WIT11 A I’KOFES. SlONAg SUCI-I AS A CIVII. I~NCINIiI~X. INIlIJS~I<IAL. I IYClliNIST ON OPI IEl< I’lil<SON WlTI I EXI’EKIENCX IN EVALUATING TI IE CONUITION 01; 7’1 11: l’l<Ol’l~~lU~Y, IN(:I.UIIINC; TI Ili I’OSSIULI: I’KI N(:E 01: ASBL:sTOS HAZARDOUS MATEKIALS AND UNI)EI(CI<UUNIl S‘I’OI<ACE TANKS. T11IS I’KINTIXI FORM LI%SE IlAS IllClIN DI<Ab”I’I(D UY I.EGAI, COlJNSICL RP Till.: DII<EC“rION 01‘ TII1: SOUTItEKN CAI.IIWI<NIA (:I IAI’I’I.X 01; TI IIi SOCIl<I‘Y 01; 1NM JS’I‘I<IAL AN11 OIl~l(X I<L:AL’I’OI<SP INC. NO KI<I’RI<SlZNTATION OR I~IiC0MMliNI)RTION IS MAlIlf I1Y ’1.1 11: SOLJ’I’I Il<I<N (;ALII’OI<NIA CI lAlrrl~l< 01’ TI IE S0CIl;TY 01: INDUS’II~IAI. ANI) Ol~l~I(:I: l<l<AlX’Ol<S,* IN(;,, ITS I,IC(;Al. C~OlJNSIiI., ‘I’l II: I<liAl, ISI’A’IX I~KOKINS NAMED I IEREIN. OK ‘ri II:II< I:MIJI.OYI~I~S oi< ACI:NI‘S. AS “I ‘ri 11; I.P:CAL SIJI~I~ICII~N~;Y, LEGAL TAX CONSIi()UIIN(XS 01’ ‘1‘1 11s 1,EASK OH 01’ ‘1’1 IIS ‘I’IMNSACI’ION. I.ANI~LOIW AN11 ’I’KNANT SI IOLJLD SUCH LEGAL COUNSEL. 0 1‘JUU Suiilliurii (;dilurlIu (:liaiitt!r - 15 IWTAIN L1,:CAI. COUNSI-L TO ALJVISE TI IEM ON S1J(:1 I MKI-I‘EI<S ANU S1IOUI.L) W1.Y UI’ON THE ADVlCE or Initials ~ . -.. -.- _- _--_ ~~. of lhi: stwicly of Iiiiliistrii~i x]<’,- *- ----- and Ollice Koallurs.” IIIC. 7 (Mulli-Tcnanl Gross Form) 0 0 t SECTION 15: This Rental Schedule is attached to and made part of that certain real estate Lease (the "Lease") dated September 16, 1992 between Palomar U46 as Landlord, and Clty of Carlsbad as Tenant, coverinq property commonly known as 2075 Corte del Noga,sl. Suite Q, Carlsbad, California 92008. The terms used in this section shall have the same definitions as set forth in the Lease. RENTAL SCHEDULE; DATE BASE RENT TOTAL MONTHLY RENT 11/01/92-10/31/93 S 968.00 3 968.00 51154.00 S11S4.00 11/01/93-10/31/94 11/01/94-10/31/95 31236.00 $1236.00 EARLY TERMINATION The term of this lease is contlngent upon appropriation of funds by the City Council. In the event funding is not available this lease may be cancelled. Lessee shall have the right to terminate said lease anytime after completion of one (1) year of this lease by first giving ninety (90) days prior written notice to the Lessor on or after October 31, 1993. + m e PROVISION SI'ANDAIU(D LUX Ai-r~ciuiwr FOit ItEA'AIIlS ANL)/IU3'fACU4C" ~ltis ~oaso ACL~~I>S~~~L corers LO L~>;.L ccr~ain ~eauo dated 9 1 by and beLwoen Palomar 46 as Land-, JS Tenant for the premises known as 2075 Corte Del Nocial. Ste. 0. Car-. CA 92008- City of -bad Tho followany paraijraptis are Iioruly iiicorporaLed ~iiLo Lliu s~orliiciiLioned haae and made a part LliercoCi ~ilregrapti M 16 . OV'I'SIOL.: STOI~AGI.:. LCUGUU IIL.CC~Y yranLu parniission to Loasor LO LOW away acid s~ore, a~ Lcusce'r. c~x~x'iise, '111 auLoinobiles or motor vcliiclcs bcloncjinq Lo Lusscc or iLs ei1i~11oyi:cs or customers, wliicli rcmein in Llie conunoii pickiiicj iircil Cor inore Lliaii 4U coriucculivc Itours. NO automobilcs or moLor vcliiclcs sIi.il1 LC parked ,iid lelL uii,rLLciidccl in i~ny part of the conunon area or scrvicc y~rd noL uLriiicd or IlcsionaLcd Cor parking. Lcsscc sliall iioL sLorc ill LIIC p.irkinij, scrvicc or coimnoii area any materials, sul~plics, cquilriiciil: or iii,icliiiicry ouLsi& Lhc 1)rcmiscs. wIiuLIicr in tlic opcn or in Lanku, bin or oLhcr coiilairicr clcviucu, and tiha11 IioL otherwise obcLrucL paakirirj, scrvicc or coiiunon accrlu. Paragraph Y 17 paragrap11 Y 10 . c1.A:;:;. ~.c:;sor s~i.ill rcplJcu, JL LII~ crlwi~sc o[ LIIC Lcsoce, any and all yl~Lt? aiid oLliur CJL~SS dCiiii~ij~cI oc Lrokcn C~OIII ally ~~)UBI: wiiatcocvcr in and abuL Llic 1~.1:icd prciiiiscu, or 1.cssuu iwy. ilL iLs opLion. rcplecc sucli ijlass at iLs cxl%nuc ~,rovidcd Lcsucc receives approval [roiii Lcaaor to perform Lliis repair. -- - .. ~-I. .. ..- . -_ -. ==a?= PALOMAR 46 DM:, LESSEE: CITY OF CARLSBAD . .~ uy : Claude "Bud" Lewis Mayor of Carlsbad W 0 14 krwsn m. EMISSIONS; STORAGE. USE AND DISPOSAL OF WASTE 1. WDrbnl. TUUd .h.u IWl: a. Prim11 any vehda on Ihe pamiran lo em1 enhaucl whh 18 YI v1~4alm 01 anv govetnmanli law, rulo. iogutaolon w 10qw-m. b OuSChJfgO amll 01 POlmll IO bo ~ISLII~~O~~~ 01 utr\ull~d any liquid $old 01 Oriuws mallof 01 any cumb~ul.on Ihwiool VLIO Ihl gimornphmg 1n9 proma 0, mv D~JV 01 -AUI whrh -mire .D trr~onwniy dde8monra oy Lamaor 01 an" ~uvornmgn~~i enitiv QOS. o may pollula 01 conlammile Iho mntu ut *% oc may b.conw ,ad+aaciwo of dues 01 may ~urc~ic~~ .III~EI IIW I I I health 0, sriatV o parroirs whororcr lQCJlutl wI1cIIwi O~I Ilw lwuaw)n% 01 anywItu#m elso l?l COiitl.l*U~~ us0 01 un(oyrnan1 ul ll~u~~~e~~~~ios 01 any 0lh.f (ca of potfonaIpioPwlv ~11011101 on 1110 IIIO*IIISE~ 01 anvrlwfo ulso 01 131 II~O~IIOI UI any 01 Iha trnpioronruwb lltu~ulo M Iheroon~lud,rr( bu~nga. loundaIma. YIP.^. uld~ly her. Irndscapng 01 parmp .(.as. c. Pfocluca of pcimsl to bc p~Mlucc.d ally nticttiu yi.~~e hyhl of hcai OXCI*~J! woi111n .an CIICIOOW~ M SCIUCIIC~ JIC~ arul IIIOII only wl tuct mennai Ihal lh. Qlala. Itghl 01 hadl rhrl nol be discrfrubla liom wleaa 1110 p~arr~rei. d. Cicalc. of pointti 10 bo ctcdlod Jnv stiufid ii~crruiu IuvoI whcli wbll ~f~lu~lu~a w~lh 1110 qutul on(oyn!cttl 01 a,*y 1.111 pfo,,,,nl outr,da I,,, a. Ctralr. of petmil IO ba ciealud. any ylouw vb~atun Ihat ti dscmrnwe ouirr~o Ihr p~msrr. 1. Tlanrmli. focawo 01 pcimit IO bu Iraiirititltud 01 rocutvd any o~~cirot~tag~ilc I~KIOW~Y. M oli,or ,aderlaoar WI~II ,I hafm(u) Q( pmm8aa. 01 which rlll CIaelw a nuI%aIICw Of VIuIaIa any yoUernm.nlel Ibr. tule iogu(a(rm 01 Iaqunelnonl. hlWdOUe 10 eny p.19m 01 PrOWllV In. 011 OI aDUUI lha pemus, 01 Bnphrfa alae 2. Ernage rod Uw. r Slofag8 Subloci Io (ha usus po~~lldluJ and IJ~oII~~~IoJ lo lunanl undof IIwr 1u.11c Tundni shrll SIOI- m J$>IUO)II~IO lcab ptool CwIIaBnegl bY lolad. kqutd 0, giSaOu8 mall-l 01 dllv CO*l*bir~til*w~ IhlPlCOI whxh milltof d J%cha~i)Ud Of .miled IIIIU IIIC dl1110)(111p,~ Ih( gIoun~ 0 anybodrol r*aIuf. cfoosorw Ill oollulu 01 Lulll.i(nm(o IIIQ rima, M 171 duVWdV aiiucl liIu (I] I~~~I~I~~~ ~.l~ulvul I,e,lr),,, rllc.,h,,, o, Ih( pl(ml~4$01 anywhufo OISO (4 cod.i..=.orr "5- U, enl~vm~.~~ 01 &he prern.rus YI 1-1 tor101 porsonalpto~wtty WI~OIIIOI on IIIC panus. 01 .ny."hwa ebo, 01 (in) pormsos 01 any 01 1110 myfovorMnlr Uwrelo 01 lholom b Us0 In addilion wilho~l Landloid I IIIIU~ *I*~II~II ConsCtsI Tenant 111.111 no1 use 5W1a M yclnltl lu tcttlJmos, lite $nutn~rcr anv sad bud of paroour manoc -li*rIr IS or III~ IJCCU~IU i."~oac~ivo II Landma duos gnvc 11% CMSOIII lonani SI~JII IIWC II,O ~JIF,,~I~ U) such rnannef 1ha1 ,IO I~J~U.ICIWIV -dl be dci* cl.~l~lc LWI .ttiu ddcsqnaiud sloaaot. me.^ aotl 1 C'WIII SIWU (SIC II,C ,*b.bia ,1.&o U) such a ~~J~VICI II,~I I I) no toal ai puiiun.il fliopotly o~~lsi~lv llic ~lc%tjndlcd s1oi.1~~0 moa sh~11 Iwcwnu Cut&wwnaIvU 111wco~ 00 1.') IIICIU &IC wd shall be m adrevia ollucls on 1180 (11 lwaI111 01 %.*I* IV 01 11u-5uns -1~0ll~~1 on IIW Iwcti8ascs 01 ~ovwhoto elsu lu) COO~J~IOUOU USP 01 .nloy"teall 01 ma pfemsea 01 any loa1 M pofmdl pfq~~ily IIwioon M Illofem. OI (INJ pefnrar w an1 01 lne rnpcoreniunos tl~ro1~ OI Rwem 3. Dlmpo~d 01 Wart. r Raluro I)rspos.il TCIIJIII sI~JII nul Let.11 .iiry 1i.ihli ~III~~JQE W~SIO M OI~ICI IC~U*,C UI~ IIU piuinirur C.CL.OI 111 s.1m1.1,y cu#iI.nna:s and sIaaY iwgularly end Iiuquonllv gomuwo idina 18ut11 llic iiiumtsos lenanl shall huup all mcmoralcns. Conlamc~s 01 ulliui oqwpnlcnl used 101 lhe atofage M d~sporal 01 such malufIaIs 111 J LI~JII and ramlacy c0naillon b. SlWapO OISpOSJJ Tcn.llll SltJll pl<lpl'lly JI .IlO%u Of .Ill Sdnd.wy 5CwagC Slid Sh.rll11UI use IIIU 1CwdlJC dvqIy.,d bvslcm I I I Iuf Ihc (l,)pOSal 01 anylhinp aacsyl rarwlafy rwsgl' 01 1.') erc~%i 01 UIU I.ISSUI 01 Uw arnOYM (dl ledronawv c~w~~~~dlc~ by Ibc usus pcim.llCd under 1h1r Loare of (b) poinulled by any yov~rnmulll~l onlily Tenant shall hwep IIU rewago cllrporal r).rlom Iluu 01 all ObslruCI~OllL UUI wl good Oplralq CmdlllW 5 I)rrposololOlhur Wdltu Tcrldnl bIw11 IJI~~VI~~ ul~~p.105~ ul a11 0111cf wdslc 01 OIIIC, IIIJII~I deliru~cll Io slui~Jwmib IucJlcdupOnor wilhin uscdon 01 ,otnovedl,um IItc (I~(.~"~..~.~LO~U'I( .&t~~ni)c~ 11t.111~ docs not and ~tIliwI ddrclscly ~llccl 111~. I I 1 Iie~I1110f ldlelv 01 pcl~on~ wllu1ovo1 IUCalvd wh~!II~cf on 11,&* ()tuttwbub UI UIS~WII~IU (2) coru)mun usc ut c~qovnnci#i 01 I11u (i#efie%ci 01 JII~ olh@i ICJ~OI yPilonal paopo~iy rhatouoi IucaiuJ wl~eit~ui uu ilw IIIC~IIISUS UI siivwhore elso 01 (.I) ~IIEIIUSUS 01 any 01 1ha mliiovomeiils tlioiem of IhafeOn uwtuc*ng b~idm~i. Iwndatms. ppur. ul111I~ bnus. luKlrca(ung 01 paihng arods 4 Compltanc. ulih LDW )JU~WILIISIJIIJHI~ dny 0111c1 (ifovisai HI IIIIL Loaso lo II~U cunidaiv 1cn.inI sli~ll Lutii(ily wvlh all laws sIalulos. fetaing lo Ih. amage. us. uul asporal 01 Iiaaaidoua w 10ir m4IIrt Ofdlnancr8. regulaliona, lulms erlll Olliuf QOr@ltl~~~u~~lrl loqultenranl~ ul complvm~ nlh 11s -.lIOlW undul lhlr Iuase. and m panlculbt. &. Ifldrmniliea(,on fonarrt &l~r# Julun,J u,,i~ca~rll J,~J Idd L.url)o,J ha.mu%s lie... a.w Iobs c1r.m baCd.1~ 01 U*IY.'*-U nslud,ny .IIDlna)rl I". w -*I.. WI- pu( o( a (11 COMIC ID^ WII~ 118 I.Jufr K) ooarivo M cmplv with Vu poromr 01 UUS Leas. Ytlllaa 11, AJJL~, Lrc.ru~Lvo Vice Prccldenr TENANT: cltv of carlsbad By: 81: Claude lIBudil Lewis Mayor of Carlsbad I m e m -,City of Carlsbad -I Palomar #46 WIT AD~s,2a75 Corte Del Nogal, Ste. Q Carlsbad, CA. 92009 QUALITY AND/OR 8IZg HEIOIT, LMGXW, FIG. ITPX: xxx STANDARD IwFlnmII WY. STANDARD IHPROVULENTS PLUS THOSB Sllw DEUAd. PARTITIQlS t CEILINCB I PumR COVERIffir PIUWBIWCI LIctpp8I SUI- I YALL OLPC. OuI%ErSI Pnwz cn.mmaI A/c OR VmT PAN1 A/C lioo1[-UP1 WATER WTWI PAIKPING I -1 WLEEIB mipRwxae ETATUI. THE UPRDV~~DT~B LIBTPD ABOVE WILL BE PINAL. ANI UDDITIQlB WIhL B8 PAID POR BY TW, UUIIBIT' - ~Rov€aENTS - 4- 6 0 PULES AND PEQUSATIONS (SUPPLEHENTAL TO LEASE PYOV1610NS) Palomar #46 1. No sign, placecard. picture. advertirrmrnt. name or noticr aha11 br lnrcribrd. dlrplryrd. prlntrd or rCrinrd on or co any part of thr outride or inrldr of thr Building without rho written conrmnt oC Landlord Llrot. Landlord shall have the right to rrmove any much eign. placecard, picture. advortlreient, name or notice without notice to and at tho exponre OS Tenant. A11 aPproved eiQna Or lettering On doarr ahall be printed. paintad. atfinad or inrcribed re thr exprnmr 02 Tanant by a person approved of by Landlord. Tanant shall no% place anything or allou anything tO be plrcad near the glrrr of any window. door. parrltlon or wall which may appear un.lghtly from outaide the Premises aa determined by Landlord. Landlord. howevrr, ray require a Standard Building window covering at all exterlor windows. Tenant .hall not ulthout prior wrltten consent of hadlord 0au.e or OtherWi8~ runrcreon any rindor. 2. The nidewalka. exits. entrance=. truck door.. man doorr and front doorr rhrll not br obrtruotrd by any or thr Tenantr. or urrd by them for any purpore othrr than for entrancrr and owits from thelr respective PremireD. All loading and unloading rhrll be rertrlotsd to designaced .raw only. 3. Tenant shall not alter any lock or lnrtall any new or eddltlonal lock. or any boltr on any door. or windowr oL tho Premlses without prior urltren conront Sroa the Landlord. 4. The toilet rooms. urinal.. wamh boulr and other rpparrtur aha11 not be used for any purpore other than that for whlch they were conrtructsd and no foreign rubrtrncr of any kind whatsoaver rhrll be thrown therein and tho expenor oC any breakage, etoppapo or damage reeulting from tho violation oC thlr rule rhall be borne by the Tenant who. or whose erployree or invito8 rhbll have crurrd ht. 5. Tonant ahall not in any uay deface the Premiroe or any part theroof. 6. Tenant nhall not una. keep or permit to be ured or krpt any foul or nonioum am or rubrtance in the Prerirer. or pernic or euffer tho Prvnisvs to be occupied or used in .I manner offrnrivr of objectionable to the Landlord or other occupantr OS the Duildinp by raaron or noiae, odorr, andfor vibration., or interfere in any way with other Loeaeer or thonv havlng buminerr therein. nor ahall any anlmals or birds br brought in or kapt in or about the Prmrlaor oc thr Building. 7. Lom*ee shall not use or keep in the Prorlsor or the Building any kerorene, qaoolinr or lnflammablr or coabustlble fluid or material. or UOQ any method of hoatlng or rlr condltioninq other than that 8upplied by Landlord. 8. Landlord t-aaervee tho right to oxcludr or expel from tho ptenirom any pereon who, in the judqenent OC the Landlord ir fntoxlcatod or under the influence or liquor or drugs. or who rhall in any manner do any act in violation of any of these Ruler and Requlatlona. 9. NO vending machine or machine. Or newspaper diatributlon machinma of any doecriptLon nhrll be installad. ma.rnr=+ned Or operatod up~n the pr~aisas wlchout the written conaonr 02 the Landlord. Page 1 of 2 /’ $- a a . RULES AND RLCVLATIONS Palomar #46 (continuad) 10. Landlord ahall hews tho right, oxercl~ablo without notice and without llal~lllty to Landlord to chanyn, the name and street oddrooo of tho Dulldlncj oC wtilcli tho Promisea aro J part. 11. Tenant ghall not dlacurb. =olLcLt. canvaa any occupanl. ol: the Dullding and shall cooperate to ()revant same. 12. Ulthoul the wrltton consent oC Landlord. Tonant shsll not ume tho name of the Dulldlny in connoctlon ulth or in promotlnq or ndvertielny the buslnosa OK Tonant except as Tan8nL.e addreas. 13. All yarbago and rofueo olrall be placed by Tenant in containern. 14. No .oriel or antenna ah.11 bm mrootod on the rooC or exterior walls of the Leased Promlooe. or on the grounds. without In each lnotanco, tho written conuont of Landlord Lirot belnq obtalned. Any aerlal or antonna so lnetallod without such wrltlcn consent shall be subject to removal by Landlord et any tlmo wlthoui notLce. 15. No loud opoakoro. televlolon. phonoqraphs, radloo or other deviaoo ohall bo usad In n manriar 00 oo to be heard or seen outslde or the Loosed I’romlooa wlthout tho prior urlttan consent ol: Landlord. 16. The outuido areao lmmodlntaly ndjoininy the Leaaocl Premises ohall be kept claan and frae from dlrt and rubblsh by Tenant. to the oetisCacLion oC ~hu Landlord, and Tanant ohall not placo or parmil- any obotructlon or rnrtorialm In such ~roao. No exterior otorege ohnll bo allowocl Including, without. llnllation, tho utorage of rnoror vol~lclos, trucks, boate, LraLloro, paileLo, drums, or 6qUipmont of any klnd or naluru, wltllout. tho pormlselon in writing Lrom Landlord. 17. Tonant ohall uoa at Tonant’n coot nuch peot owtormlnatlon contractor aa Landlord may dLreot arid st such lntorvels an Landlord mny roqulre. la. Tenant vhall not burn ony trnsh or garbaqo 0.C any klnd in or about rho Loaood l’romlnoa or tlin I’rojocl. 19. No rooldontlal uooo, including, wlLhout limltinq the yanorallty of tho Zoreqolnrj, roridlny, oleoplnq or cooklng rro permitred on Lho I’rarnlooo or anywhero on tho Project. 20. No anlmals oC any typo, lncludinr~, wllhout llmiLlng the generality oC tho rorcrJolnq, ~OLLI, guard doqa, exotlc animals. roptllorr or blrds, aro pcrmlttod on the Prcmlsen or ~nywhero on the Projact. 21. Landlord reserveo the rlght, by wrltten notice to Tonant, to resclnd, alt0r odd or ualvo any rulo or roqulatlon aL any tlme prescribed Lor tho UuLld~nr~ when. In Landlord’s judrlment. it 1s necenoary, doslral,lo or propor Cor tho Ilcst Interest oC the Dulldlnq and lln lcnanto. Papo 2 of 2 +f-