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HomeMy WebLinkAbout1996-01-09; City Council; 13458; APPROVE LEASE AGREEMENT WITH PALOMAR 46 FOR LIBRARY STORAGE AT 2075 CORTE DEL NOGAL-Q 3 PALOMAR 46 FOR LIBRARY STORAGE AT 2075 CORE DEL NOGAL Adopt Resolution No. 5 b -- 9 agreement between the City of Carlsbad and Palomar #46. ITEM EXPLANATION: The Purchasing Department currently leases approximately 2,060 square feet of warehoi storage space at 2075 Code del Nogal for the Library. The leased space is necessary d the lack of adequate storage space in the Library or the Purchasing warehouse for the storage of collections for the new library and for existing lower priority collections. The original lease was initiated in October, 1989 for a term of three years at a rate of $1 per month. Cost of living adjustments increased the rent to $1,725 per month. CommL Services staff renegotiated the lease in 1992 at a rate of $968 per month. Cost of living adjustments increased the rate to the current level of $1,236 per month, Community SE Staff has renogotiated the lease and the new lease reduces the rate to $1,154 per mont the first year. The cost for the second and third year are $1,236 per month and $1,319 month respectively. FISCAL IMPACT The cost of the current lease is $1,236 per month or $14,832 annually. The new lease reduces the rent to $1 ,I 54 or $1 3,848 annually. This will result in first year savings of $! Funds have been included in the Purchasing Department budget for this purpose. which authorizes the Mayor to execute the I( Resolution No. 9b - cj 2. Lease Agreement 4% P- -,1 &+" de. +- '*2': )e" i VP .v > 'L &; .. z I- o 4 2 5 z 3 0 o 4 '.' I - 1 2 3 4 5 6 I €3 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 YI-&I-"-- .. a RESOLUTION NO. 96-9 e A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN EXTENSION OF THE EXISTING LEASE WITH PALOMAR #46 FOR SUITE Q LOCATED AT 2075 CORTE DEL NOGAL STREET, CARLSBAD, CALI FORNl A WHEREAS, the City of Carlsbad, California has determined the need to provic warehouse/storage space for the library; WHEREAS, Community Services Staff has negotiated with the property mana 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 C'w of Car California as follows: 1. 2. That the above recitations are true and correct. That the new Lease Agreement between the City of Carlsbad and Pal #46 attached hereto as Exhibit A is hereby approved. That the Mayor is hereby authorized to sign the lease agreement on of the City. 3. PASSED, APPROVED AND ADOPTED by the City Council of the City of Carl at its regular meeting held on the 9th dayof JANUARY 1996, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None d&!iz v - CIAUDEA. LEWIS, Mayor ATTEST: Yidh) ALETHA L RAUTENKRANZ, C'ty Clerk (SEAL) e a .. *. Southern California Chapter of the % 9 Society of Industrial and Office Realtors,@ Inc. INDUSTRIAL REAL ESTATE LEASE (MULTI-TENANT FACILITY) ARTICLE ONE: BASIC TERMS This Article One contains the Oasic Terms of this Lease between the Landlord and Tenant n Other Articles, Sections and Paragraphs of the Lease referred to in this Article One explain and def Terms and are to be read in conjunction with the Basic Terms. Section 1.01. Date of Lease: smw 28. 1995 Section 1.02. Landlord (include legal entity): PAlxxlwi # 46 Address of Landlord: 3411 A-NAS, STE #11( Section 1.03. Tenant (include legal entity): CITY OF CMUSBAD Address of Tenant: 2075 alRTE DEL NOGAL, SUITE Q CA 97009 Section 1.04. Property: The Property is part of Landlord's multi-tenant real property develc as #46 and described or depicted in Exhibit "A" [the "Project"). The Project includes the land. the buildinl improvements located on the land, and the common areas described in Para raph 4.05(a . The Pro street address, approximate square footage and description) ALVFOXIMAdY 2,060 hWJ3d IDCATED AT: '2075 CDR'IE DEL NOGAC, SUITE ( CARLSBAD, CA 92009 . Section 1.05. Lease Term: 3 years months beginning on WVDfBm ' OCIOBER : Section 1.06. Permitted Uses: (See Article Five) bENKIpAL Q3VERNMwT FlRFOS'Z Section 1.07. Tenant's Guarantor: (If none. SO state) Nh Section 1.08. Brokers: (See Article Fourteen) (If none. so statc) CARLSBAD, CA 92009 * or such other date as is specified in this Lease. and ending on ___ Landlord's Broker: Nfa Tcnant's Broker: NJA Section 1.09. Commission Payable to Landlord's Broker: (See Article Fourteen) $ -IS Section 1.10. Initial Security Deposit: (See Section 3.03) $1565.00 (a-4 HAND) Scction 1.11. Vehicle Parking Spaces Allocated to Tenant: (See Section 4.05) 3 Section 1.12. Rent and Other Charges Payable by Tenant: (a) BASE RENT: CNE ~~P~ m & FIFTY FCuR AN'D xx/loo Dollars (S per month for the first Section 3.02. or [ii] p- 12 months, as provided in Section 3.01. and shall be first day of the 13 month(s) after the Commencement Date. either ( (l . (If [ii) is completed. thcn (i) and Section 3.02 i Section 4.021; (ii) Utilities [See Section 4.03); (iii) fncreased Ins Section 4.04); (iv) Tenant's Initial Pro Rata Share 4.05); (v) Impounds for Tenant's Property Taxes (See S Section 1.14. Landlord's Share of Profit on Assignment or Sublease: [SF Section -- percent ( 100 "/a) of the Profit [the "Landlord's Sham"). Section 1.15. Riders: The following Riders are attached to and made a part of this Lease SECI'IWS 15. 16, 17, 18,& 19 PER m OF CARLSBAD, ALL LEASES APE C;IEOSS NET VI?LITIES AND J and OIfice Realtors? Inc. of the Society of Industrial % (Multi-Tenant I Gross Form) Initial 4 0 1988 Southern California Chapter .- 0 e ., c* c ARTICLJITWO: LEASETERM Section 2.01. Lease of Property For Lease Term. Landlord leases the Property to Tenant and Te. the Property from Landlord for the Lease Term. The Lease Term is for the period stated in Section 1.05 shall begin and end on the dates specified in Section 1.05 above. unless the beginning or end of the Ler changed under any provision of this Lease. The “Commencement Date” shall be the date specified in S above for the beginning of the Lease Term, unless advnnced or delayed under eny provision of this Let Section 2.02. Delay in Commencement. Landlord shall not be liable to Tenant if Landlord does possession of the Property to Tenant on the Commencement Date. Landlord‘s non-delivery of the Proper on that date shall not affect this Lease or the obligations of Tenant under this Lease except that the Con Date shall be delayed until Landlord delivers possession of the Property to Tenant and the Lease Te extended for a period equal to the delay in delivery of possession of the Property to Tenant, plus the nur necessary to end the Lease Ten on the last day of a month, If Landlord does not deliver possession of thf Tenant within sixty [60) days after the Commencement Date, Tenant may elect to cancel this Lease by pi notice to Landlord within ten (10) days after the sixty (60) -day period ends. If Tenant gives such noti. shall be cancelled and neither Landlord nor Tenant shall have any Further obligotions to the other. If Tei give such notice, Tenant’s right to cancel the Lease shall expire and the Lease Term shall commer delivery of possession of the Property to Tenant. If delivery of possession of the Property to Tenan Landlord and Tenant shall, upon such delivery. execute an amendment to this Lease setting fori Commencement Date and expiration date of the Leese. Failure to execute such amendment shall not aff Commencement Date and expiration date of the Lease. Section 2.03. Early Occupancy. If Tenant occupies the Property prior to the Commencement 1 occupancy of the Property shall be subject to all of the provisions of this Lease. Early occupancy of the not advance the expiration date of this Lease. Tenant shall pay Base Rent and all other charges specifiec for the early occupancy period. Section 2.04. Holding Over. Tenant shall vacate the Property upon the expiration or earlier t this Lease. Tenant shall reimburse Landlord for and indemnify Landlord against all damages which L from Tenant’s delay in vacating the Property. If Tenant does not vacate the Property upon the expirt termination of the Lease and Landlord thereafter accepts rent from Tenant, Tenant’s occupancy of the be a “month-to-month” tenancy, subject to all of the terms of this Lease applicable to a month-to-n except that the Base Rent then in effect shall be increased by twenty-five percent (25%). ARTICLE THREE: BASE RENT Section 3.01. Time and Manner of Payment. Upon execution of this Lease, Tenant shall pa Base Rent in the amount stated in Paragraph 1.12(a] above for the first month of the Lease Term. On the second month of the Lease Term and each month thereafter, Tenant shall pay Landlord the Base Rc without offset, deduction or prior demand. The Base Rent shall be payable at LandIord’s address c place as Landlord may designate in writing. Section 3.02. Cost of Living Increases. The Base Rent shall be increased on each de Adjustment Date”) stated in Paragraph 1.12(a) above in accordance with the increase in the United St of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (all items for t Statistical Area in which the Property is located on the basis of 1982-1984 = 100) (the “Index”] as [a) The Base Rent (the “Comparison Base Rent”) in effect immediately before each Rental Adjus be increased by the percentage that the Index has increased from the date (the “Comparison I occurs. The Base Rent shall not be reduced by reason of such computation. bndlord shall notih increase by a written statement which shall include the Index for the applicable Comparison Date, applicable Rental Adjustment Date, the percentage increase between those two Indices, and the nev increase in the Base Rent provided for in this Section 3.02 shall be subject to any minimum or maxi provided for in Paragraph 1.12(a]. (b) Tenant shall pay the new Base Rent from the applicable Rental Adjustment Date unti Adjustment Date. Landlord‘s notice may be given after the applicable Rental Adjustment Date of Tenant shall pay Landlord the accrued rental adjustment for the months elapsed between the eff increase and Landlord‘s notice of such increase within ten (10) days after Landlord‘s notice. components of &he Index are materially changed after the Commencement Date, Landlord shall SI which is published by the Bureau of Labor Statistics or similar agency and which is most nearl) Index in effect on the Commencement Date. The substitute index shall be used to calculate the in Rent unless Tenant objects to such index in writing within fifteen (15) days after receipt of La Tenant objects, Landlord and Tenant shall submit the selection of the substitute index for bin( accordance with the rules and regulations of the American Arbitration Association at its off Property. The costs of arbitration shall be borne equally by Landlord and Tenant. - payment of the Comparison Base Rent began through the month in which the applicable Rental . @ 1988 Southern California Chapter 2 Inin of the Society of Industrial and Ofi3w Resiton? Inc. % (Multi-Tenant Gross Form) .. * m a Section 3.03. Security Deposit; hcreases. (a] Upon the execution of this Lease, Tenant shall deposit with Landlord a cash Security Depos. set forth in Section 1.10 above. Landlord may apply all or part of the Security Deposit to any unpa charges due horn Tenant or to cure any other defaults of Tenant. If Landlord uses any part of the S Tenant shall restorehe Security Deposit to its full amount within ten (10) days after Landlord’s Tenant’s failure to do so shall be a material default under this Lease. No interest shall be paid Deposit. Landlord shall not be required to keep the Security Deposit separate from its other ~CCOUI relationship is created with respect to the Security Deposit. (b) Each time the Base Rent is increased, Tenant shall deposit additional funds with Landlc increase the Security Deposit to an amount which bears the same relationship to the adjusted Base R Security Deposit bore to the initial Base Rent. Section 3.04. Termination: Advance Payments. Upon termination of this Lease und, [Damage or Destruction), Article Eight [Condemnation) or any other termination not resulting from and after Tenant has vacated the Property in the manner required by this Lease, Landlord shall re Tenant (or Tenant’s successor) the unused portion of the Security Deposit. any advance rent I payments made by Tenant to Landlord, and any amounts paid for real property taxes and other rese to any time periods after termination of the Lease. ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT Section 4.01. Additional Rent. All charges payable by Tenant other than Base Rent are C~ Rent.” Unless this Lease provides otherwise, Tenant shall pay all Additional Rent then due with installment of Base Rent. The term “rent” shall mean Base Rent and Additional Rent. Section 4.02. Property Taxes. (a) Real Property Taxes. Landlord shall pay the “Base Real Property Taxes” on the Propert: Term. Base Real Property Taxes are real property taxes applicable to the Property as shown on t most recent tax fiscal year ending prior to the Commencement Date. However, if the structures o not completed by the tax lien date of such tax fiscal year, the Base Real Property Taxes are the t2 first ra bill showing the full assessed value of the Property after completion of the structures. Landlord the amount, if any, by which the real property taxes during the Lease Term exceed the 1 Taxes. Subject to Paragraph 4.02(c]. Tenant shall make such payments within fifteen (15) da: Landlord’s statement showing the amount and computation of such increase. Landlord shall rei] any real property taxes paid by Tenant covering any period of time prior to or after the Lease T (b) Definition of “Real Property Ta~c.” “Real property tax” means: [i) any fee, Iicens business license fee, commercial rental tax, levy. charge, assessment, penalty or tax imposed by ar against the Property: [ii) any tax on the Landlord‘s right to receive, or the receipt of, rent or income or against Landlord’s business of leasing the Property; (iii) any tax or charge for fire protection, road maintenance, refuse or other services provided to the Property by any governmental ag defined by applicable law, or other transfer of a11 or part of Landlord’s interest in the Property; an fee replacing any tax previously included within the definition of real property tax. “Real prop however, include Landlord‘s federal or state income, franchise, inheritance or estate taxes. [c) Joint Assessment. If the Property is not separately assessed, Landlord shall reasonably share of the real property tax payable by Tenant under Paragraph 4.02[a) from the assessor’s v reasonably available information. Tenant shall pay such share to Landlord within fifteen [15) d Landlord’s written statement. imposed upon this transaction or based upon a re-assessment of the Property due to a changl (dl Personal Property Taxes. [i) Tenant shall pay all taxes charged against trade fiures, furnishings. equipment or property belonging to Tenant. Tenant shall try to have personal property taxed separately 1 (ii) If any of Tenant’s personal property is taxed with the Property. Tenant shall pay Li the personal property within fifteen [15) days after Tenant receives a written statement fro] personal property taxes. Section 4.03. Utilities. Tenant shall pay, directly to the appropriate supplier, the cost of light, power, sewer service, telephone, water, refuse disposal and other utilities and semi’ Property. However, if any services or utilities are jointly metered with other property, Lar reasonable determination of Tenant’s proportionate share of the cost of such utilities and semi1 pay such share to Landlord within fifteen (15) days after receipt of Landlord’s written stateme @ 1- Southern California chspter 3 Initie of the Society of Industrial and Oftice Realtors? Inc. q (Multi-Tenant Gross Form) - - e a Section 4.04. *kana, policies. .. (a) Liability Insurance. During the Lease Teem, Tenant shall maintain a policy of commercial gen insurance [sometimes known as bmad form comprehensive general liability insurance) insuring Te liability for bodily injury, property damage (including loss of use of property) and personal injury arisii operation, use or occupancy of the Property. Tenant shall name Landlord as an additional insured under The initial amount of such insurance shall be One Million Dollars ($l,OOO,~O) per occurrence and shall periodic increase based upon inflation. increased liability awards. recommendation of Landlord‘s insurance advisers and other relevant factors. The liability insurance obtained by Tenant under this Para shall (i) be primary and noncontributing; (ii) contain cross-liability endorsements: and (iii) insure Lanl Tenant‘s performance under Section 5.05, if the matters giving rise to the indemnity under Section 5.t the negligence of Tenant. The amount and coverage of such insurance shall not limit Tenant’s liabili Tenant of any other obligation under this Lease. Landlord may also obtain comprehensive public liabi in an amount and with coverage determined by Landlord insuring Landlord against liability a ownership, operation, use or occupancy of the Property. The policy obtained by Landlord shall not bc and shall not provide primary insurance. (b) Property and Rental Income Insurance. During the Lease Term, Landlord shall mainta insurance covering loss of or damage to the Property in the full amount of its replacement value. SUC contain an Inflation Guard Endorsement and shall provide protection against all perils include classification of fire. extended coverage, vandalism, malicious mischief, special extended perils [all r leakage and any other perils which Landlord deems reasonably necessary. Landlord shall have the I flood and earthquake insurance if required by any lender holding a security interest in the Property. I not obtain insurance for Tenant’s fixtures or equipment or building improvements installed by 1 Property. During the Lease Term, Landlord shall also maintain a rental income insurance policy, with I Landlord, in an amount equal to one year’s Base Rent, plus estimated real property taxes and insurai Tenant shall be liable for the payment of any deductible amount under Landlord’s or Tenant’s insL maintained pursuant to this Section 4.04. in an amount not to exceed Ten Thousand Doflars [$lO,OOO not do or permit anything to be done which invalidates any such insurance policies. (c) Papent of premiums. (i) kdlord shall pay the “Base Premiums” toor the insurance policies maintained by t Paragraph 4.04(b). If the Property has been previously fully occupied. the “Base Premiums’’ are premiums paid during or applicable to the last twelve (12) months of such prior occupancy. If th not been previously fully occupied or has been occupied for less than twelve (12) months, the Bast the lowest annual premiums reasonably obtainable for the required insurance for the Prop Commencement Date. (ii] Tenant shall pay Landlord the amount. if any, by which the insurance premiums f maintained by Landlord under Paragraph 4.04(b) have increased over the Base Premiums, increases result from the nature of Tenant’s occupancy, any act or omission of Tenant, the reqi lender referred to in Article Eleven (Protection of Lenders), the increased value of the Property increases. However, if Landlord substantially increases the amount of insurance carried or th~ insured value after the period during which the Base Premiums were calculated, Tenant shall on1 the amount of increased premiums which would have been charged by the insurance carrier il insurance or percentage of insod value had not been substantially increased by Landlord. Thi the amount due from Tenant shall be made only once during the Lease Term. Thereafter, ” obligated to pay the full amount of any additional increases in the insurance premiums, inch resulting from any further increases in the amount of insurance or percentage of insured VI Section 4.05, Tenant shall pay Landlord the increases over the Base Premiums within fifteen receipt by Tenant of a copy of the premium statement or other evidence of the amount due. I policies maintained by Landlord cover improvements or real property other than the Property, also deliver to Tenant a statement of the amount of the premiums applicable to the Prope reasonable detail, how such amount was computed. If the Lease Term expires before the e insurance period, Tenant’s liability shall be pro rated on an annual basis. (d) General Insurance Provisions. [i) Any insurance which Tenant is required to maintain under this Lease shall include a requites the insurance carrier to give Landlord not less than thirty (30) days’ written not cancellation or modification of such coverage. (ii) If Tenant fails to deliver any policy, certificate or renewal to Landlord required under 1 the prescribed time period or if any such policy is cancelled or modified during the Lea! Landlord’s consent, Landlord may obtain such insurance. in which case Tenant shall reimburse cost of such insurance within fifteen (15) days after receipt of a statement that indicates insurance. @ 1988 Southern California Chapter 4 hiHa @ s of the Society of Industrial and Office Realtors? Inc. g (Multi-Tenant Gross Form) ., 9 e a (iii) Tenant shall maintain all insurance required under this Lease with companies hold Policy Rating" of A-12 or batter, as set forth in the most current issue of "Best Key Rating Guide' described in this Section 4.04 may not be available in the future. Tenant acknowledges tha described in this Section 4.04 is for the primary benefit of Landlord. If ot any time during the Lea: is unable to maintain the insurance required under the Lease, Tenant shall nevertheless mail coverage which is customary and commercially reasonable in the insurance industry for T business, as that coverage may change from time to time. Landlord makes no &presentation as to such insurance to protect Landlord's or Tenant's interests. Therefore, Tenant shall obtain ony property or liability insurance which Tenant deems necessary to protect Landlord and Tenant. (iv) Unfess prohibited under any applicable insurance policies maintained, Landlord r hereby waive any and all rights of recovery against the other, or against the officers, empl' representatives of the other, for loss of or damage to its property or the property of others unc such loss or damage is covered by any insurance policy in force (whether or not described in t time of such loss or damage. Upon obtaining the required policies of insurance, Landlord and 1 notice to the insurance carriers of this mutual waiver of subrogation. Section 4.05. Common Areas; Use, Maintenance and Costs. (a) Common Areas. As used in this Lease, "Common Areas" shall mean all areas within the I available for the common use of tenants of the Project and which are not leased or held for the Tenant or other tenants, including, but not limited to, parking areas, driveways, sidewalks, load roads, corridors, landscaping and planted areas. Landlord, from time to time, may change the size, and use of any of the Common Areas, convert Common Areas into leaseable areas, construct ad facilities (including parking structures) in the Common Areas. and increase or decrease Common , facilities. Tenant acknowledges that such activities may result in inconvenience to Tenant. Su# changes are permitted if they do not materially affect Tenant's use of the Property. (b) Use of Common Areas. Tenant shall have the nonexclusive right (in common with 0th others to whom Landlord has granted or may grant such rights] to use the Common Areas for the p' subjeqt to such reasonable rules and regulations as Landlord may establish from time to time. Ten, such rules and regulations and shall use its best effort to cause others who use the Common An express or implied permission to abide by Landlord's rules and regulations. At any time, Landlo Common Areas to perform any acts in the Common Areas as, in Landlord's judgment, are desirak Project. Tenant shall not interfere with the rights of Landlord, other tenants or any other person f Common Areas. (c) Specific Provision re: Vehicle Parking. Tenant shall be entitled to use the number c spaces in the Project allocated to Tenant in Section 1.11 of the Lease without paying any additio parking shall not be reserved and shall be limited to vehicles no larger than standard size auto1 utility vehicles. Tenant shall not cause large trucks or other large vehicles to be parked within th adjacent public streets. Temporary parking of large delivery vehicles in the Project may be permittc regulations established by Landlord. Vehicles shall be parked only in striped parking spaces and loading areas or other locations not specifically designated for parking. Handicapped spaces sha those legally permitted to use them. If Tenant parb more vehicles in the parking area than the r Section 1.11 of this Lease, such conduct shall be a material breach of this Lease. In addition ti remedies under the Lease, Tenant shall pay a daily charge determined by +ridlord for each such a1 (dl Maintenance of Common Areas. Landlord shall maintain the Common Areas in goc and repair and shall operate the Project. in Landlord's sole discretion, as a first-class industri property development. Tenant shall pay Tenant's pro rata share (as determined below] of a11 Landlord for the operation and maintenance of the Common Areas. Common Area costs include, to, costs and expenses for the following: gardening and landscaping; utilities, water and sewae nance of signs (other than tenants' signs): premiums for liability, property damage, fire and othr insurance on the Common Areas and worker's compensation insurance; all property taxes and as: or attributable to the Common Areas and all Common Area improvements; all personal propert! attributable to personal property used in connection with the Common Areas; straight-line deprE property owned by Landlord which is consumed in the operation or maintenance of the Corn lease payments paid by Landlord for rented or leased personal property used in the operation or Common Areas; fees for required licenses and permits; repairing, resurfacing, repaving, ma lighting, cleaning, refuse removal, security and similar items; reserves for roof replacement and e: other appropriate reserves; and a reasonable allowance to Landlord for Landlord's supervision of (not to exceed five percent (5%) of the gross rents of the Project for the calendar year). Landlord I of such seMces to be provided by third parties and the cost of such services shall be include costs. Common Area costs shall not include depreciation of real property which forms part of - Tenant acknowledge the insurance markets are rapidly changing and that insurance in the fon @ 1988 Southern of the Society California of Industrial Chapter 9 5 (Multi-Tenant Gmss Form) Initials 4 end Office Realtors? Inc. .. * 0 a (e) Tenant's Sham and Payment. Tenant shall pay Tenant's annual pro rata share of all Comr (prorated for any fractional month) upon written notice from Landlord that such costs are due and I: any event prior to delinquency. Tenant's pro rata share shall be calculated by dividing the square f Property. as set forth in Section 1.04 of the Lease, by the aggregate square foot area of the Project whi held for lease by tenants, as of the date on which the computation is made. Tenant's initial'pro rata shi Paragraph 1.13(b). Any changes in the Common Area costs andlor the aggregate area of the Proiect lea lease during the Lease Term shall be effective on the first day of the month after such change occurs, at Landlord's election, estimate in advance and charge to Tenant as Common Area costs, all real prm which Tenant is liable under Section 4.02 of the Lease, all insurance premiums for which Tenant Section 4.04 of the Lease. all maintenance and repair costs for which Tenant is liable under Section 6. and all other Common Area costs payable by Tenant hereunder. At Landlord's election, such stateme Landlord. Landlord may adjust such estimates at any time based upon Landlord's experience anticipation of costs. Such adjustments shall be effective as of the next rent payment date after n Within sixty (60) days after the end of each calendar year of the Lease Term. Landlord shall del: statement prepared in accordance with generally accepted accounting principles setting forth, in r the Common Area costs paid or incurred by Landlord during the preceding calendar year and Tenanl Upon receipt of such statement, there shall be an adjustment between Landlord and Tenant. wit credit given by Landlord (as the case may be) so that Landlord shall receive the entire amount of' such costs and expenses for such period. Section 4.06. Late Charges. Tenant's failure to pay rent promptly may cause Landlord to inc costs. The exact amount of such costs are impractical or extremely difficult to ascertain. Such costs are not limited to, processing and accounting charges and late charges which may be imposed on ,ground lease, mortgage or trust deed encumbering the Property. Therefore, if Landlord does not payment within ten (IO) days after it becomes due, Tenant shall pay Landlord a late charge eqi (loO/O) of the overdue amount. The parties agree that such late charge represents a fair and reasonat costs Landlord will incur by reason of such late payment. lhere will be a $50.00 charge Section 4.07. Interest on Past Due Obligations. Any amount owed by Tenant to Landlord when due shall bear interest at the rate of fifteen percent (15%) per annum from the due date However, interest shall not be payable on late charges to be paid by Tenant under this Lease. The p 0n:such amounts shall not excuse or cure any default by Tenant under this Lease. If the interest ra' Lease is higher than the rate permitted by law. the interest rate is hereby decreased to the maxi1 rate permitted by law. Section 4.08. Impounds for Insurance Premiums and Real Property Taxes. If reques lessor or lender to whom Landlord has granted a security interest in the Property, or if Tenant is days late in the payment of rent more than once in any consecutive twelve (121 -month period Landlord a sum equal to one-twelfth ('112) of the annual real property taxes and insurance prei Tenant under this Lease. together with each payment of Base Rent. Landlord shall hold SUI non-interest bearing impound account. If unknown. Landlord shall reasonably estimate the amoi taxes and insurance premiums when due. Tenant shall pay any deficiency of funds in the in Landlord upon written request. If Tenant defaults under this Lease, Landlord may apply any fun account to any obligation then due under this Lease. ARTICLE FIVE: USE OF PROPERIY 1.06 above. Common Area casts shall be delivered monthiy, quarterly at at any other periodic intervals to bc non sufficient funds. Section 5.01. Permitted Uses. Tenant may use the Property only for the Permitted Uses Section 5.02. Manner of Use. Tenant shall not cause or permit the Property to be usec constitutes a violation of any law, ordinance, or governmental regulation or order, which anno: the rights of tenants of the Project, or which constitutes a nuisance or waste. Tenant shall ob permits, including a Certificate of Occupancy, required for Tenant's occupancy of the Property take all actions necessary to comply with all applicable statutes, ordinances, rules, regu requirements regulating the use by Tenant of the Property, including the Occupational Safety Hazardous Materials. As used in this Lease. the term "Hazardous h flammable items, explosives, radioactive materials, hazardous or toxic substances, material materials, including any substances defined as or included in the definition of "hazardous sub wastes", "hazardous materials" or "toxic substances" now or subsequently regulated under ar state or local laws or regulations, including without limitation petroleum-based products, P cyanide, DDT, printing inks, acids. pesticides, ammonia compounds and other chemical pro< and similar compounds. and including any different products and materials which are subseq adverse effects on the environment or the health and safety of persons. Tenant shall not Hazardous Material to be generated. produced, brought upon, used, stored, treated or disposl Property by Tenant, its agents, employees, contractors, sublessees or invitees without the pri Landlord. Landlord shall be entitled to take into account such other factors or facts as Lani determine to be relevant in determining whether to grant or withhold consent to Tenant's F respect to Hazardous Material. In no event, however, shall Landlord be quid to consent t of any storage tanks on the Property. Section 5.03. 4 @ 1988 Southern California Chapter 6 lnitia of the Society of Industrial 9 and Office Realtors? Inc. (Multi-Tenant Gram Form) - .. e e Section 6.04. Tenant’s Obligations. (a) Except as provided in Article Seven (Damage or Destruction] and Article Eight [Condea - shall keep all portions of the Property (including structural. nonstructural. interior. systems and equ order. condition and repair (including interior repainting and refinishing. as needed). If any portior or any system or equipment in the Property which Tenant is obligated to repair cannot be fully repa Tenant shall promptly replace such portion of the Property or system or equipment in the Proper whether the benefit of such replacement extends beyond the Lease Term; but if the benefit or us replacement extends beyond the Lease Term (as such term may be extended by exercise of any opt life of such replacement shall be prorated over the remaining portion of the Lease Term (as extenc shall be liable only for that portion of the cost which is applicable to the Lease Term (as extendc . Landlord shall hn conditioning system at Tenant’s expense. In addition, Tenant shall, at Tenant’s expense, repair ar ‘Opf, foundation or structural portions of walls caused by Tenant’s acts or omissions. It is the inter and Tenant that, at all times during the Lease Term, Tenant shall maintain the Property in an atti and fully operative condition. [b) Tenant shall fulfill all of Tenant’s obligations under this Section 6.04 at Tenant’s sole e fails to maintain, repair or replace the Property as required by this Section 6.04, Landlord may, u] prior notice to Tenant (except that no notice shall be required in the case of an emergency). enter perform such maintenance or repair (including replacement, as needed) on behalf of Tenant. In I shall reimburse Landlord for all costs incurred in performing such maintenance or repair immediatc e.T , ’ undertake the responsibility for preventive maintenance of the Section 6.05. Alterations, Additions, and Improvements. (a) Tenant shall not make any alterations, additions, or improvements to the Property withou written consent, except for non-structural alterations which do not exceed Ten Thousand Dollars cumulatively over the Lease Term and which are not visible from the outside of any building of wh part. Landlord may require Tenant to provide demolition andlor lien and completion bonds in satisfactory to Landlord. Tenant shall promptly remove any alterations. additions, or improvemei violation of this Paragraph 6.05(a) upon Landlord’s written request. All alterations, additions. a shall be done in a gwd and workmanlike manner. in conformity with all applicable laws and reg contractor approved by Landlord. Upon completion of any such work, Tenant shall provide Landlc plans, copies of all construction contracts. and proof of payment for all labor and materials. (b) Tenant shall pay when due all claims for labor and material furnished to the Property. Landlord at least twenty (20) days’ prior written notice of the commencement of any work on the P of whether Landlord’s consent to such work is required. Landlord may elect to record an non-responsibility on the Property. Property to Landlord, broom clean and in the same condition as received except for ordinary ws Tenant was not otherwise obligated to remedy under any provision of this Lease. However, T obligated to repair any damage which Landlord is required to repair under Article Seven (Damage addition, Landlord may require Tenant to remove any alterations, additions or improvements (w with Landlord’s consent) prior to the expiration of the Lease and to restore the Property to its pri Tenant’s expense. All alterations, additions and improvements which Landlord has not requirec shall become Landlord’s property and shall be surrendered to Landlord upon the expiration or ea material damage to the Property. Tenant shall repair, at Tenant’s expense, any damage to the Pro, removal of any such machinery or equipment. In no event, however, shall Tenant remove ar materials or equipment (which shall be deemed Landlord’s property) without Landlord’s prior v power wiring or power panels; lighting or lighting fixtures: wall coverings; drapes, blind: coverings; carpets or other floor coverings; heaters, air conditioners or any other heating 1 equipment; fencing or security gates: or other similar building operating equipment and decor; ARTICLE SEVEN: DAMAGE OR DESTaUCLlON Section 6.06. Condition upon Termination. Upon the termination of the Lease, Tenant the Lease, except that Tenant may remove any of Tenant’s machinery or equipment which can b Section 7.01. Partial Damage to Property. (a) Tenant shall notify Landlord in writing immediately upon the occurrence of any damag the Property is only partially damaged (Le.. less than fifty percent (50%) of the Property is untenz such damage or less than fifty percent (50%) of Tenant’s operations are materially impaired) received by LandIord from the insurance policies described in Paragraph 4.Wb) are suffic necessary repairs, this Lease shall remain in effect and Landlord shall repair the damage as possible. Landlord may elect (but is not required) to repair any damage to Tenant’s fixt improvements. @I 1988 of Southern the Society California of Industrial Chapter 8 Initial & and Office Realtors? Inc. q (Multi-Tenant Gross Form) .. 0 0 Section 6.04. Tenant’a Obligations. (a) Except as provided in Article Seven (Damage or Destruction) and Article Eight (Condem - shall keep all portions of the Property [including structural. nonstructural. interior, systems and equi order, condition and repair (including interior repainting and refinishing, as needed). If any portion or any system or equipment in the Property which Tenant is obligated to repair cannot be fully repa Tenant shall promptly replace such portion of the Property or system or equipment in the Proped whether the benefit of such replacement extends bcyond the Lease Term; but if the benefit or ust replacement extends beyond the Lease Term [as such term may bo extended by exercise of any opti life of such replacement shall be prorated over the remaining portion of the Lease Term (as extend shall be liable only for that portion of the cost which is applicable to the Lease Term [as extende maintain a preventive maintenance contract providing for the regular inspection and maintenance of air conditioning system by a licensed heating and air conditioning contractor. Landlord shall have written notice to Tenant, to undertake the responsibility for preventive maintenance of the I conditioning system at Tenant’s expense. In addition, Tenant shall. at Tenant’s expense, repair an roof, foundation or structural portions of walls caused by Tenant’s acts or omissions. It is the inten and Tenant that, at all times during the Lease Term, Tenant shall maintain the Property in an attn and fully operative condition. (b) Tenant shall fulfill all of Tenant’s obligations under this Section 6.04 at Tenant’s sole ex fails to maintain, repah or replace the Property as required by this Section 6.04, hdhd may, up1 prior notice to Tenant (except that no notice shall be required in the case of an emergency), enter I perform such maintenance or repair (including replacement. as needed) on behalf of Tenant. In si shall reimburse Landlord for all costs incurred in performing such maintenance or repair immediate1 Section 6.05. Alterations, Additions, and Improvements. (a) Tenant shall not make any alterations, additions, or improvements to the Property without written consent, except for non-structural alterations which do not exceed Ten Thousand Dollars cumulatively over the Lease Term and which am not visible from the outside of any building of whil part. Landlord may require Tenant to provide demolition andlor lien and completion bonds in 1 satisfactory to Landlord. Tenant shall promptly remove any alterations, additions, or improvemer violation of this Paragraph 6.05(a) upon Landlord’s written request. All alterations, additions, ai shall be done in a good and workmanlike manner, in conformity with all applicable laws and reg1 contractor approved by Landlord. Upon completion of any such work, Tenant shall provide Landlo plans, copies of all construction contracts, and proof of payment for all labor and materials. (b) Tenant shall pay when due all claims for labor and material furnished to the Property. Landlord at least twenty (20) days’ prior written notice of the commencement of any work on the Pr of whether Landlord’s consent to such work is required. Landlord may elect to record anc non-responsibility on the Property. Section 6.06. Condition upon Termination. Upon the termination of the Lease, Tenant s’ Property to Landlord, bmom clean and in the same condition as received except for ordinary wei Tenant was not otherwise obligated to remedy under any provision of this Lease. However, Te obligated to repair any damage which Landlordl is required to repair under Article Seven (Damage I addition, Landlord may require Tenant to remove any alterations, additions or improvements (wh with Landlord’s consent) prior to the expiration of the Lease and to restore the Property to its pric shall become Landlord’s property and shall be surrendered to Landlord upon the expiration or ear the Lease, except that Tenant may remove any of Tenant’s machinery or equipment which can be material damage to the Property. Tenant shall repair, at Tenant’s expense, any damage to the Prop removal of any such machinery or equipment. In no event, however, shall Tenant remove an) materials or equipment (which shall be deemed Landlord’s property) without Landlord’s prior wr power wiring or power panels: lighting or lighting fixtures; wall coverings: drapes, blinds coverings; carpets or other floor coverings: heaters, air conditioners or any other heating o equipment: fencing or security gates: or other similar building operating equipment and decoral ARTICLE SEVEN: DAMAGE OR DEsTRUcIlON Tenant’s expense. All alterations, additions and improvements which Landlord has not required Section 7.01. Partial Damage to Property. (a) Tenant shall notie Landlord in writing immediately upon the occurrence of any damagi the Property is only partially damaged (Le., less than fifty percent (50%] of the Property is untena such damage or less than fifty percent (50%) of Tenant’s operations am materially impaired) a received by Landlord from the insurance policies described in Paragraph 4.W(b) are suffici necessary repairs, this Lease shall remain in effect and Landlord shall repair the damage as possible. Landlord may elect (but is not required) to repair any damage to Tenant’s fixtu improvements. @ 1988 Southern California Chapter a Initlah of the Society of Industrial and Office Realton? Inc. q (Multi-Tenant Grass Form) e 0 .. (b) If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of cause of the damage is not covered by the insurance policies which Landlord maintains under P; Landlord may elect either to (i) repair the damage as soon as reasonably possible, in which case remain in full force and effect, or (ii) terminate this Lease as of tha date the damage occurred. Land Tenant within thirty (30) days after receipt of notice of the occurrence of the damage whether k repair the damage or terminate the Lease. If Landlord elects to repair the damage, Tenant shall F “deductible amount” [if any] under Landlord’s insurance policies and, if the damage was due to an a Tenant, or Tenant’s employees, agents, contractors or invitees. the difference between the actual c any insurance proceeds received by Landlord. If Landlord elects to terminate this Lease, Ten continue this Lease in full force and effect, in which case Tenant shall repair any damage to the building in which the Property is located. Tenant shall pny the cost of such repairs, except that completion of such repairs, Landlord shall deliver to Tenant any insurance proceeds received by damage repaired by Tenant. Tenant shall give Landlord written notice of such election within tt receiving Landlord‘s termination notice. (c) If the damage to the Property occurs during the last six [6) manths of the Lease Term and require more than thirty (30) days to repair, either Landlord or Tenant may elect to terminate this L the damage occurred, regardless of the sufficiency of any insurance proceeds. The party electing Lease shall give written notification to the other party of such election within thirty (30) days after Landlord of the occurrence of the damage. Section 7.02. Substantial or Total Destruction. If the Property is substantially or totall] cause whatsoever (Le., the damage to the Property is greater than partial damage as described in regardless of whether Landlord receives any insurance proceeds, this Lease shall terminate i destruction occurred. Notwithstanding the preceding sentence, if the Property can be rebuilt wit after the date of destruction, Landlord may elect to rebuild the Property at Landlord’s own expe this Lease shall remain in full force and effect. Landlord shall notify Tenant of such election wit1 after Tenant’s notice of the occurrence of total or substantial destruction. If Landlord sa elects, Lan the Property at Landlord’s sole expense, except that if the destruction was caused by an act or o Tenant shall pay Landlord the difference between the actual cost of rebuilding and any insurancr by Landlord. Section 7.03. Temporary Reduction of Rent. If the Property is destroyed or damage Tenant repairs or restores the Property pursuant to the provisions of this Article Seven, any rent period of such damage, repair andor restoration shall be reduced according to the degree, if any use of the Property is impaired. However, the reduction shall not exceed the sum of one year’s pa insurance premiums and real property taxes. Except for such possible reduction in Base Rent, ii and real property taxes, Tenant shall not be entitled to any compensation, reduction, or rg Section 7.04. Waiver. Tenant waives the protection of any statute. code or judicial deci tenant the right to terminate a lease in the event of the substantial or total destruction of the lea: agrees that the provisions of Section 7.02 above shall govern the rights and obligations of Landlo event of any substantial or total destruction to the Property. ARTICLE EIGHT: CONDEMNATION If all or any portion of the Property is taken under the power of eminent domain or sold un power (all of which are called “Condemnation”). this Lease shall terminate as to the part taken 01 condemning authority takes title or possession. whichever occurs first. If more than twenty perct area of the building in which the Property is located, or which is located on the Property, is take Tenant may terminate this Lease as of the date the condemning authority takes title or poss written notice to the other within ten (10) days after receipt of written notice of such taking (or i notice, within ten (10) days after the condemning authority takes title or possession). If neither terminates this Lease, this Lease shall remain in effect as to the portion of the Property not taken Rent and Additional Rent shall be reduced in proportion to the reduction in the floor area Condemnation award or payment shall be distributed in the following order: (a) first, to any grol or beneficiary under a deed of trust encumbering the Property, the amount of its interest in the to Tenant, only the amount of any award specifically designated for loss of or damage to Ten removable personal property; and (c) third, to Landlord, the remainder of such award, whethe reduction in the value of the leasehold, the taking of the fee. or otherwise. If this Lease is not shall repair any damage to the Property caused by the Condemnation. except that Landlord shi repair any damage for which Tenant has been reimbursed by the condemning authority. If t be or make such repair at Landlord‘s expense. * Landlord 85 a result at any damage. destruction, repair, or restoration of or to the Property. . received by Landlord are not sufficient to pay for such repair. Landlord shall have the right t @ 1988 Southern of the Society California of Industrial Chapter 9 Initials 4 and Office Realtors? Inc. % (Multi-Tenant Gross Form) 0 ,. L ARTICLE “E: ASSIGNMENT AND SUBLETIWG Section 9-01. Landlord’s consent Requid. No portion of the Property or of Tenant’s interest ir may be acquired by any other person or entity, whether by sale, assignment, mortgage, sublease, transfei of law, or act of Tenant. without Landlord’s prior written consent, except as provided in Section Landlord has &be right to grant or withhold its consent as provided in Section 9.05 below. Any attemF without consent shall be void and shall constitute a nonarable breach of this Lease. If Tenant is a parb cumulative transfer of more than twenty percent (20”/0) of the partnership interests shall require Landlor IfTenant is a corporation, any change in the ownership of a controlling interest of the voting stock of the shall require Landlord’s consent. Section 9.02. Tenant Affiliate. Tenant may assign this Lease or sublease the Property, WithoU consent. to any corporation which controls, is controlled by or is under common control with Tena corporation resulting from the merger of or consolidation with Tenant C‘Tenant’s Affiliate”). In su Tenant‘s Affiliate shall assume in writing all of Tenant’s obligations under this Lease. Section 9.03. NO Release of Tenant. No transfer permitted by this Article Nine, whether wit Landlord’s consent, shall release Tenant or change Tenant’s primary liability to pay the rent and to perf obligations of Tenant under this Lease. Landlord’s acceptance of rent from any other person is not a \ provision of this Article Nine. Consent to one transfer is not a consent to any Qubsequent transfe’ transferee defaults under this Lease, Landlord may proceed directly against Tenant without purst against the transferee. Landlord may consent to subsequent assignments or modifications of this Leas transferee, without notifying Tenant or obtaining its consent. Such action shall not relieve Tenant’s I this Lease. Section 9.04. Offer to Terminate. If Tenant desires to assign the Lease or sublease the Prc shall have the right to offer, in writing, to terminate the Lease as of a date specified in the offer. If Lani writing to accept the offer to terminate within twenty (20) days after notice of the offer, the Lease shall t the date specified and all the terms and provisions of the Lease governing termination shall apply. If not so elect, the Lease shall continue in effect until otherwise terminated and the provisions of Sec respect to any proposed transfer shall continue to flpply, Section 9.05. Landlord‘s Consent. (a) Tenant‘s request for consent to any transfer described in Section 9.01 shall set forth in writin the proposed transfer, including the name, business and financial condition of the prospective trans details of the proposed transfer (e.g., the term of and the rent and security deposit payable undei assignment or sublease). and any other information Landlord deems relevant. Landlord shall ha withhold consent, if reasonable, or to grant consent, based on the following factors: (i) the business i assignee or subtenant and the proposed use of the Property; (ii) the net worth and financial re proposed assignee or subtenant; (iii) Tenant’s compliance with all of its obligations under the Leas other facton as Landlord may reasonably deem relevant. If Landlord objects to a proposed assignmen of the net worth andlor financial reputation of the proposed assignee, Tenant may nonetheless su assign), all or a portion of the Property to the proposed transferee, but only on the other terms c transfer. (b] If Tenant assigns or subleases, the following shall apply: (i) Tenant shall pay to Landlord as Additional Rent under the Lease the Landlord’s Share (I 1.14) of the Profit (defined below) on such transaction as and when received by Tenant, unless written notice to Tenant and the assignee or subtenant that Landlord’s Share shall be paid by subtenant to Landlord directly. The “Profit” means (A) all amounts paid to Tenant for sucl sublease, including “key” money, monthly rent in excess of the monthly rent payable under t fees and other consideration paid for the assignment or sublease, including fees under any colla less (B) costs and expenses directly incurred by Tenant in connection with the execution ani such assignment or sublease for real estate broker’s commissions and costs of renovation o tenant improvements required under such assignment or sublease. Tenant is entitled to recovc expenses before Tenant is obligated to pay the Landlord’s Share to Landlord. The Profit in the I of less than all the Property is the rent allocable to the subleased space as a percentage on a squz (ii) Tenant shall provide Landlord a written statement certifying all amounts to b assignment or sublease of the Property within thirty (30) days after the transaction documentat Landlord may inspect Tenant’s books and records to verify the accuracy of such statement. 0 Tenant shall promptly furnish to Landlord copies of all the transaction documentation. all certified by Tenant to be complete, true and correct, Landlord’s receipt of Landlord’s Share sha to any further assignment or subletting. The breach of Tenant’s obligation under this Paragrap1 material default of the Lease. Section 9.06. No Merger. No merger shall result from Tenant’s sublease of the Property Nine, Tenant’s surrender of this Lease or the termination of this hse in any other manner. I Landlord may terminate any or at1 subtenancies or succeed to the interest of Tenant as sublandlo subtenancies. & @ 1988 Southern Califomla Chapter 10 Initials of the Society of IndusMal 9 and Office Realtors? Inc. wulti-Tenant Gross Form) e 0 ARTICLE TEN: DEFAULTS REMEDIES Section 10.01. Covenants and Conditions. Tenant’s performance of each of Tenant’s oblip upon such performance. Time is of the essence in the performance of all covenants and conditio 7- Lease is a condition as well as a covenant. Tenant’s right to continue in possession of the PropeI Section 10.02. DefauIb. Tenant shall be in material default under this Lease: (a) If Tenant abandons the Property or if Tenant’s vacation of the Property results in the CE (b) If Tenant fails to pay rent or any other charge when due: [c) g Tenant fails to pertarm any of Tenant’s nan-monetary obligations under this Lease for (30) days after written notice from Landlord: provided that if more than thirty (30) days are requirec performance, Tenant shall not be in default if Tenant commences such performance within the thid and thereafter diligently pursues its completion. However, Landlord shall not be required to g Tenant’s failure to perform constitutes a non-curable breach of this Lease. The notice required by intended to satisfy any and all notice requirements imposed by law on Landlord and is not in ad1 requirement. (dl (i] If Tenant makes a general assignment or general arrangement for the benefit of credit( for adjudication of banhptcy or for reorganization or reanangernent is filed by or against dismissed within thirty (30) days; (iii) if a trustee or receiver is appointed to take possession of Tenant’s assets located at the Property or of Tenant’s interest in this Lease and possession is not within thirty (30) days; or (iv) if substantially all of Tenant’s assets located at the Property or of ‘ this Lease is subjected to attachment, execution or other judicial seizure which is not discharge( days. If a court of competent jurisdiction determines that any of the acts described in this subpar default under this Lease, and a trustee is appointed to take possession (or if Tenant remains a de and such trustee or Tenant transfers Tenant’s interest hereunder, then Landlord shall receive, as P excess, if any, of the rent (or any other consideration) paid in connection with such assignment c rent payable by Tenant under this Lease. (e) If any guarantor of the Lease revokes or otherwise terminates, or purports to revoke or o any guaranty of all or any portion of Tenant’s obligations under the Lease. Unless otherwise exp guaranty of the Lease is revocable. Seetion 10.03. Remedies. On the occurrence of any material default by Tenant, Landlor thereafter, with or without notice or demand and without limiting Landlord in the exercise of B which Landlord may have: [a) Terminate Tenant’s right to possession of the Property by any lawful means, in which c terminate and Tenant shall immediately surrender possession of the Property to Landlord. In si shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s ( the worth at the time of the award of the unpaid Base Rent, Additional Rent and other charges 1 earned at the time of the termination; (ii) the worth at the time of the award of the amount by wh Rent, Additional Rent and other charges which Landlord would have earned after termination 1 award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonai worth at the time of the award of the amount by which the unpaid Base Rent, Additional Rer which Tenant would have paid for the balance of the Lease term after the time of award exceed: rental loss that Tenant proves Landlord could have reasonably avoided; and (iv) any other a compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform i the Lease or which in the ordinary course of things would be likely to result therefrom, includin any costs or expenses Landlord incurs in maintaining or preserving the Property after such recovering possession of the Property, expenses of reletting, including necessary renovation Property, Landlord’s reasonable attorneys’ fees incurred in connection therewith, and any rea paid or payable. As used in subparts (i) and (ii) above, the “worth at the time of the award” is cc interest on unpaid amounts at the rate of fifteen percent (15%) per annum, or such lesser amour maximum lawful rate. As used in subpart (iii) above, the “worth at the time of the awa discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at tk plus one percent (1%). If Tenant has abandoned the Property, Landlord shall have the 01 possession of the Property and recovering from Tenant the amount specified in this Paragi pmceeding under Paragraph 10.03(b): (b) Maintain Tenant’s right to possession, in which case this Lease shall continue in I Tenant has abandoned the Property. In such event, Landlord shall be entitled to enforce all of remedies under this Lease, including the right to recover the rent as it becomes due; Pursue any other remedy now or hereafter available to Landlord under the laws or juc state in which the Property is located. insurance described in Section 4.04; (c) @ 1988 Southern of the Society California of Industrial Chapter g 11 (Multi-Tenant Gross Form) Initial 4 and Office Realtors? Inc. I 0 0 -* Section 10.04. Repayment of “Free” Rent. If this Lease provides for a postponement of any i Rent”. Tenant shall be credited wlth having paid all of the Abated Rent on the expiration of the Leas Tenant has fully. faithfully, and punctually performed all of Tenant‘s obligations hereunder. includin Of alf rent [other than the Abated Rent) and all other monetary obligations and the surrender of the I physical condition required by this Lease. Tenant acknowledges that its right to receive credit for the absolutely conditioned upon Tenant’s full, Faithful and punctual performance of its obligations und Tenant defaults and does not cure within any applicable grace period, the Abated Rent shall imme due and payable in full and this Lease shall be enforced as if there were no such rent abdemer concession. In such case Abated Rent shall be calculated based on the full initial rent payable und Section 10.05. Automatic Termination. Notwithstanding any other term or provision hereof the Lease shall terminate on the occurrence of any act which affirms the Landlord’s intention to tern as provided in Section 10.03 hereof, including the filing of an unlawful detainer action against T termination, Landlord’s damages for default shall include all costs and fees, including reasonable att Landlord incurs in connection with the filing, commencement, pursuing andlor defending of an bankruptcy court or other court with respect to the Lease; the obtaining of relief from any sta) restraining any action to evict Tenant; or the pursuing of any action with respect to Landlord’s right the Property. All such damages suffered (apart from Base Rent and other rent payable hereunder] pecuniary damages which must be reimbursed to Landlord prior to assumption of the Lease bl successor to Tenant in any bankruptcy or other proceeding. Section 10.06. Cumulative Remedies. Landlord’s exercise of any right or remedy shall no payments, a period of “free” rent or other rent concession, such postponed rent or “free” rent is calif exercising any other right or remedy. ARTICLE ELEVEN! PROTECTION OF LENDERS Section 11.01. Subordination. Landlord shall have the right to subordinate this Lease to a deed of trust or mortgage encumbering the Property, any advances made on the security thereof a modifications, consolidations, replacements or extensions thereof, whenever made or record cooperate with Landlord and any lender which is acquiring a security interest in the Property or ’ shall execute such further documents and assurances as such lender may require, provided that Te under this Lease shall not be increased in any material way (the performance of ministerial acts shr material). and Tenant shall not be deprived of its rights under this Lease. Tenant’s right to quiet Property during the Lease Term shall not be disturbed if Tenant pays the rent and perform obligations under this Lease and is not otherwise in default. If any ground lessor, beneficiary or m have this Lease prior to the lien of its ground lease. deed of trust or mortgage and gives written Tenant, this Lease shall be deemed prior to such ground lease, deed of trust or mortgage whether t prior or subsequent to the date of said ground lease, deed of trust or mortgage or the date of rec Section 11.02. Attornment. If Landlord’s interest in the Property is acquired by any gi eficiary under a deed of trust. mortgagee, or purchaser at a foreclosure sale, Tenant shall attorn to i successor to Landlord’s interest in the Property and recognize such transferee or successor as La Lease. Tenant waives the protection of any statute or rule of law which gives or purports to give 7 terminate this Lease or surrender possession of the Property upon the transfer of Landlord‘s inte Section 11.03. Signing of Documents. Tenant shall sign and deliver any instrument or do or appropriate to evidence any such attornment or subordination or agreement to do so. If Ter within ten (10) days after written request, Tenant hereby makes, constitutes and irrevocably app any transferee or successor of Landlord, the attorney-in-fact of Tenant to execute and deliver any : document. Section 11.04. Estoppel Certificates. (a) Upon Landlord’s written request, Tenant shall execute. acknowledge and deliver to statement certifying: (i) that none of the terms or provisions of this Lease have been changed (a changed, stating how they have been changed): (ii) that this base has not been cancelled or tern date of payment of the Base Rent and other charges and the time period covered by such paymen is not in default under this Lease (or, if Landlord is claimed to be in default, stating why): representations or information with respect to Tenant or the Lease as Landlord may reasonably n prospective purchaser or encumbrancer of the Property may require. Tenant shall deliver such ste within ten (10) days after Landlord’s request. Landlord may give any such statement by Tenan purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may rely conc statement as true and correct. (b] If Tenant does not deliver such statement to Landlord &thin such ten (10) -day perioc prospective purchaser or encumbrancer, may conclusively presume and rely upon the followi terms and provisions of this Lease have not been changed except as otherwise represented by Li Lease has not been cancelled or terminated except as otherwise represented by Landlord; (iii) th month’s Base Rent or other charges have been paid in advance: and (iv) that Landlord is not Lease. In such event, Tenant shall be estopped from denying the truth of such facts. 12 Inltlal & 0 1988 Southern California Chapter of the Sodety of Industrial 9 and Office Realton? Inc. (Multi-Tenant Gross Form) - 0 0 Section 11.05. Tenant’s Fhm1~5al Condition. Within ten (IO) days after written request Tenant shall deliver to Landlord such financial statements as Landlord reasonably requires to verify Tenant or any assignee, subtenant. or guarantor of Tenant. In addition, Tenant shall deliver to any If by Landlord any financial statements required by such lender to facilitate the financing or ref Property. Tenant represents and warrants to Landlord that each such financial statement is a t~ statement as of the date of such statement. All financial statements shall be confidential and shall the purposes set forth in this Lease. ARTICLE TWELVE: LEGU COSTS Legal keedhgs. If Tenant or Landlord shall be in breach or default undei party [the “Defaulting Party“) shall reimburse the other pm (the “Nondefaulting Party“) upon dem or expenses that the Nondefaulting Party incurs in connection with any breach or default of the under this Lease, whether or not suit is commenced or judgment entered. Such costs shall inch costs incurred for the negotiation of a settlement, enforcement of rights or otherwise. Furthermore, breach of or to enforce the provisions of this Leaw is commenced, the court in such action shall awa whose favor a judgment is entered, a reasonable sum as attorneys’ fees and costs. The losing par shall pay such attorneys’ fees and costs. Tenant shall also indemnify Landlord against and hold L claim or action (a) instituted by Tenant against any third party, or by any third party against Tenan any person holding any interest under or using the Property by license of or agreement wit1 foreclosure of any lien for labor or material furnished to or for Tenant or such other person; [c) othc of or resulting from any act or transaction of Tenant or such other person; or [d) necessary to F interest under this Lease in a bankruptcy proceeding. or other proceeding under Title 11 of the UI as amended. Tenant shall defend Landlord against any such claim or action at Tenant’s expe reasonably acceptable to Landlord or, at Landlord’s election, Tenant shall reimburse Landlord for costs Landlord incurs in any such claim or action. Section 12.02. Landlord’s Consent. Tenant shall pay Landlord’s reasonable attorneys’ connection with Tenant’s request for Landlord’s consent under Article Nine (Assignment and connection with any other act which Tenant proposes to do and which requires Landlord’s cons1 I, Section 12.01 from all costs, expenses, demands and liability Landlord may incur if Landlord becomes or is ma ARTICLE THIRTEEN: MISCELIANEOUS PROVISIONS Section 13.01. Nom-Discrimination. Tenant promises. and it is a condition to the continur that there will be no discrimination against, or segregation of, any person or group of persons on color, sex, creed, national origin or ancestry in the leasing, subleasing, transferring, occupancy, te Property or any portion thereof. Section 13.02. Landlord‘s LiabilitJr; Certain Duties. (a) As used in this Lease. the term “Landlord“ means only the current owner or owners of Property or Project or the leasehold estate under a ground lease of the Property or Project at thf Each Landlord is obligated to perform the obligations of Landlord under this Lease only dur Landlord owns such interest or title. Any Landlord who transfers its title or interest is relieved ( respect to the obligations of Landlord under this Lease to be performed on or after the date of trans Landlord shall deliver to its transferee all funds that Tenant previously paid if such funds have nc under the terms of this Lease. (b) Tenant shall give written notice of any failure by Landlord to perform any of its obligatio1 to Landlord and to any ground lessor, mortgagee or beneficiary under any deed of trust encumt whose name and address have been furnished to Tenant in writing. Landlord shall not be in defau unless Landlord (or such ground lessor, mortgagee or beneficiary) fails to cure such non-perforn (30) days after receipt of Tenant’s notice. However, if such non-performance reasonably requires m days to cure, Landlord shall not be in default if such cure is commenced within such thirty (3 thereafter diligently pursued to completion. (c) Notwithstanding any term or provision herein to the contrary, the liability of Landlord f neither the Landlord nor its partners, shareholders, officers or other principals shall have any pers this Lease. Section 13.03. Severability. A determination by a court of competent jurisdiction that 81 Lease or any part thereof is illegal or unenforceable shall not cancel or invalidate the remainder c this Lease. which shall remain in full force and effect. Section 13.04. Interpretation. The captions of the Articles or Sections of this Lease are to reading this Lease and am not a part of the terms or provisions of this Lease. Whenever required b Lease, the singular shall include the plural and the plural shall include the singular. The mascl neuter genders shall each include the other. In any provision relating to the conduct, acts or omis term “Tenant” shall include Tenant’s agents, employees, contractors, invitees, successors c Property with Tenant’s expressed or implied permission. of its duties and obligations under this Lease is limited to Landlord’s interest in the Property a & @ 1988 Southern California Chapter 13 Initial of the Society of IndusMal and Office Realtors? Inc. % (Multi-Tenant Gross Form) 0 e .. -1 t Section 13.05. Incarporation of Prior Agreements Modifications. This Lease is the I between the parties pertaining to the lease of the Property and no other agreemente am effective. All this Lease shall be in writing and signed by all parties. Any other attempted amendment shall be 3 Section 13.06. Nda?~. All notices required or permitted under this Lease shall be in miti personally delivered or sent by certified mail. return receipt requested. postage prepaid. Notices to delivered to the address specified in Section 1.03 above, except that upon Tenant's taking possession he Ropefly shall be Tenant's address for notice purposes. Notices to Landlord shall be deliverel sp=ified in Section 1.02 above. All notices shall be effective upon delivery. Either party may c address upon written notice to the other party. Section 13.07. Waivers. All waivers must be in writing and signed by the waiving party. Lai enforce any provision of this Lease or its acceptance of rent shall not be a waiver and shall not preve enforcing that provision or any other provision of this Lease in the future. No statement on a pay Tenant or in a letter accompanying a payment check shall be binding on Landlord. Landlord may notice to Tenant, negotiate such check without being bound to the conditions of such statement. Section 13.08. NO Recordation. Tenant shall not record this Lease without prior writ) Landlord. However, either Landlord or Tenant may require that a "Short Form" memorandum of tl by both parties be recorded. The party requiring such recording shall pay all transfer taxes and Section 13.09. Binding Effect; Choice of Law. This Lease binds any party who legally acq interest in this Lease from Landlord or Tenant. However, Landlord shall have no obligation to - unless the rights or interests of Tenant's successor are acquired in accordance with the terms of th of the state in which the Property is located shall govern this Lease. , Section 13.10. Corporate Authority: Partnership Authority. If Tenant is a corpor signing this Lease on behalf of Tenant represents and warrants that he has full authority to do so binds the corporation. Within thirty (30) days after this Lease is signed, Tenant shall deliver to I copy of a resolution of Tenant's Board of Directors authorizing the execution of this Lease or 0th authority reasonably acceptable to Landlord. If Tenant is a partnership, each person or entity si6 Tenant represents and warrants that he or it is a general partner of the partnership, that he or it I sign for the partnership and that this Lease binds the partnership and all general partners of the shall give written notice to Landlord of any general partner's withdrawal or addition. Within t this ~aasa is signed. Tenant shall deliver to Landlord a copy of Tenant's recorded statemel certificate of limited partnership. Section 13.11. Joint and Several Liability. All parties signing this Lease as Tenant severally liable for all obligations of Tenant. Section 13.12. Fo- Majeure. If Landlord cannot perform any of its obligations di Landlord's control, the time provided for performing such obligations shall be extended by a pe the duration of such events. Events beyond Landlord's control include, but are not limited to. a commotion. labor disputes, strikes, fire, flood or other casualty, shortages of labor or material, gc or restriction and weather conditions. Section 13.13. hecution of Lease. This Lease may be executed in counterparts and. documents are executed, the counterparts shall constitute a single binding instrument. Land1 Lease to Tenant shall not be deemed to be an offer to lease and shall not be binding upon eithe and delivered by both parti9s. Section 13.14. Survival. All representations and warranties of Landlord and Ten1 termination of this he. Section 14.01. Broker's Fee. When this Laase is signed by and delivered to both Landlord shall pay a real estate commission to Landlord's Broker named in Section 1.08 above the written agreement between Landlord and Landlords Broker, or the sum stated in Section ission to Tenant's Brok Nothing contained in this I y party other than Landlord's Broh @ 1988 Southern California Chapter of the Society of Industrial and Office Realtom? Inc. -- - 0 e c SECTION 15: This Rental Schedule is attached to and made par that certain real estate Lease (the "Lease") dated, SEPTEMBEF 1995, between PALOMAR #46 as Landlord, and CITY OF CARLSBAD Tenant, covering property commonly known as 2075 CORTE DEL NC SUITE Q, CARLSBAD, CA. 92009. The terms used in this Section I have the same definitions as set forth in the Lease. RENTAL SCHEDULE TOTAL RENT DATE BASE RENT 11/01/95-10/31/96 31154.00 S1154.00 91236.00 91236 .OO 11/01/96-10/31/97 11/01/97-10/31/98 3131Q. 00 9131Q.00 Per City of Carlsbad, All leases are net utilities and janitorial. Initial & - , 0 e -1 .- Scclinn 14.03. : .. 0 Landlord exclusively; or 0 both Landlord and Tenant. ADDITIONAL PROVISIONS MAY DO SEX FORTI4 IN A RIDER OR RIDERS ATTACHED HE- ULANK SPACE DRLOW. IF NO ADDITlONAL PROWSONS ARE INSERTED. PLEASE DRAW A LMET) SPACE DELOW. landlord and Tonnnt have signed lhis Lenso al the plece and on the dntcs specified adjacent to balow md have iniljajled all Riders which arc attached to or incorporotcd by relerence in this Loa "LANDLORD" signed on ,19- PAKMiU? # 46 ,t -. BPmiam H. mir lu: Executive Vice President By: Itr: 'TENAM" Signed on , 19- at lh -Mavor --. By: It% PI ANY REAL ESTATE TRANSACITON. IT IS RECOMMENDED TIM7 YOU CONSU SIONAL, SUCH AS A CIVIL ENGINEER. INDUSTRIAL HYGIENIST OR OI3-1ER PERSON V I4AZARDOUS MATBKIALS AND UNDERCROUM) STORAGE TANKS. EVALUATPJC TtiE CONDITION OF THE PROPERTY. INCLUDING TIIE rossrmx PRESI THIS PRINTED FORM LEASE HAS BEN DRAFED BY LEGAL COUNSEL AT TI41 REPRESWATION OK RECOMMENDATION IS MADE BY THE SOUTl.IIiHII( CALIPORh SOClFTY OF INDUSTRIAL AND OFFICE REALTORS," INC.. ITS LEGAL COUNSEL, THE R NAMED HEREIN. OR TIiEIR EMPLOYEES OR AGENTS. AS TO TllE LEGAL SUPPICIENI TAX CONSEQUENCES OF THIS LEASE OR OF THIS TRANSACX'ION. LANDLORD A RFIAtN LEGAL COUNSEL TO ADVISE THEM ON SUCH MATERS AND SHOULD WLY SUCH LEGAL COUNSEL. 8 1- Southern cllilanir ch.p!sr 1s IniUJ SOUTI-IERN CALIFORNIA CHAPTER 01: TIIE SOCIETY OF INDUSTKIAL AND omcE 4 - ol tho Sacidy ot lndurtrid 9 and Office Rmltm? !ne - (MultCTenrnt (;ma Pam) .. 0 0 .- STANDARD LEASE ATTACHMENT FOR REPAIRS AND/REPLACEMENT This Lease Attachment refers to that certain Lease dated SEp: 1995 by and between PA;= #46 as Landlord and mw CIF mn as Tenant for the premises known as 2075 a= DEL m, mite mm, CA 92009 The following paragraphs are hereby incorporated ~nta aforementioned lease and made a part thereof: PARAGRAPH t 168 OUTSIDE STORAGE. Lessee hereby permission to Lessor to tow away and store. at Lessee's ex all automobiles or motor vehicles belonging to Lessee c 6 employees or customers, which remain in the common parkingcar more than 40 consecutive hours. No automobiles or motor ve shall be parked and left unattended in any part of the comma or service yard not striped or designated for parking. , shall not store in the parking, service or common arc materials, supplies, equipment or machinery outside the pre whether in the open or in tanka, bin or other container dr and shall not otherwise obntruct parking, service or areas. PARAGRAPH t 17. REPAIRS AND/OR REPLACEMENT. Lessee sh, its sale cost, keep and maintain the Leased Premis, appurtenances and every part thereof (excepting wall anc or Lessee's agents or invitees), including but not limi windowu and skylights. doors and store front, floors, car ceilings, interior walls and interior surfaces of exterio of the Leased premises, in good and sanitary order, con repair or replacement. Lessee shall, at its sole cost. k maintain all utilities, fixtures, hot water heater s and mec equipment used by Lessee in good order, condition and rep shall repair or replace any asphalt paving damaged by L agents or inviteea. which Landlord agrees to repair unless damage is caused by PARAGRAPH t ia GLASS. Lessor shall replace, at the of the Lessee, any and all plate and other glass damaged 01 from any cause whatsoever in and about the leased prem: Lessee may, at its option, replace such glass at its provided Lessee receives approval from Lessor to perfc repair. LESSOR: p- 146 BY William H. Adair, Executive Vice President e 0 -. -I cITiOFcAI7LsBAD VI WIT MDRESSt .- 2075 UXTJ3 DEL NOGAG, SUEX Q cART.IsBAD, CA 92009 QUALITY AND/OR SIZE HEIGHT, LMGTII, Fpc. ITM: X STANDARD IMPROVEMENTS ONLY. STANDARD IMPROVEMENTS PLUS TIiOSE SHOWN BELOW. PARTITIONS : CEILINGS: -R COVERING: PLUMBING: LIGHTS t SWITCHES: WALL ELEC. OVPLISTS: PHONE OOTLETS: A/C OR VENT FAU: A& HOOK-UP: WATER HEATER: PAINTING : OTHER; UNLESS QLllERWISE STATED, TliE IMPROVEXENTS LISTED MOVE WILL DE FINAL. ANY ADDITIONS WILL BE PAID FOR BY TENANT. EXIIIBIT" " IuF.f20~S -94 Initials- .- . 0 0 - RULES AND REGULATIONS (SUPPLEMENTAL TO LEASE PROVISIONS) PAILMAR #46 1. No sign, placecard, picture, advertisement, name or r! shall be inscribed, displayed, printed or affixed on or to an: of the outside or inside of Building without the written CC of Landlord first. Landlord shall have the right to remot. such sign, placecard, picture, advertisement, name or I without notice to and at the expense of Tenant. All approved signs or lettering on doors shall be printed, pa affixed 01- inscribed at the expense of Terlant by a person ap of by Landlord. Tenant shall not place anything or allow an to be placed near the glass of any window, door, partition c which may appear unsightly from outside the Premises as dete by Landlord. Landlord, however, may require a Standard Bu windou covering at all exterior windows. Tenant shall not w prior written consent of Landlord cause or otherwise sunscrc windou. 2. The sidewalks, exits, entrances, truck doors, man doc front doors shall not be obstructed by any of the Tenants, I by them for any purpose other than for entrances and ex11 their respective Premises. All loading and unloading st restricted to designatrd areas only. 3. Tenant shall not alter any lock or install any additional locks or any bolts on any doors or windows Premises without prior written consent from the Landlord. 4. The toilet rooms, urinals, wash bowls and other a~ shall not be used for any purpose other than that for whi were constructed and no foreign substance of any kind whz shall be thrown therein and the expense of any breakage, c or damage resulting from the violation of this rule shall t by the Tenant who, or whose employees or invitee shall hava it. 5. Tenant shall not in any way deface the Premises or , thereof. 6. Tenant shall not use, keep or permit to be used or k foul or noxious gas or substance in the Premises, or p suffer the Premises to be occupied or used in a manner o or objectionable to the Landlord or other occupants of the by reason of noise, odors, and/or vibrations. or interfer way with other Lessees or those having business therein, T: any animals or birds be brought in or kept in or about the or in the Building. 7. Lessee shall not use or keep in the Premisea o Building any kerosene. gasoline or inflammable or combusti or material, or use any method of heating or air condition than that supplied by Landlord. 8. Landlord reserves the right to exclude or expel Premises any person who, in the judgement of the La in any manner do any act in violation of any of these Regulations. 9. . No vending machines or newspaper distribution machi description shall be installed, maintained or operated premises without the written consent of the Landlord. e- .-- , intoxicated or under the influence of liquor or druga, or -- *. . RULES AND mnaS ( ktinued) 0 A. 10. Landlord shall have the. right, to exercise without 110t:i without liability to Landlord to ch_ange the name and street b of the Building of which the Premider are a part. 11. Tenant shall not disturb, solicit, canvas any occupant Building and shall ccroperate to prevent ume. 12. Without the written consent of Landlord, Tenant shall the name of the building in connection with or in promor advertising the business of Tenant except a5 Tenant's addr 13. All garbage and refuse shall be placed by Ten containere. 14, No aerial or antenna shall be erected on the roof or e walls of the Leaard Premises, or on the grounda, without instance, the written consent of Landlord first being ob Any aerial or antenna so installed without such written shall be subject to removal by Landlord at any time without 15. No loud speakers, televisions, phonographs, radios c devises shall be used in a manner so as to be heard OR seen of the leased Premises without the prior written con Landlord. 16. The outside areas immediately adjoining the Leased shall be kept clean and free from dirt and rubbish by Te' thu satisfaction of the Landlord, and Tenant shall not I permit any obstruction or materials in such areas. No storage shall be allowed including without limitation, the of motor vehicl-s. trucka, boats. trailers. pallets. dl equipment of ny kind cr nature, without the permission in from Landlord. 17. Tenant shall use at Tenant's cost such pest exter contractor as Landlord may direct and at such intervals as may require. 18. Tenant shall not burn any trash or garbage of any ki about the Leased Premises or the Project. 19. No residential uses, including, without limit generality of the foregoing, residing, sleeping or coo permitted on tho Premises or anywhere on the Project. 20. No animals of any type, including, without limi. generality of tho foregoing. pets. guard dogs, exotic reptiles or birds, are permitted on the Premises or anywhc Project. ' 21. Landlord reserved the right, by written notica to T re8cind. alter, add or waive any rule or regulation at preacriLEtd for the building when, in Landlord's judomi?! necessary, desirable or proper for the beat interas: Building and its Tenants. Page 2 of 2 Ini4 ---- .--. ......... -_---._ _.-. . __. .... .. .............. .. * - ---- - ..... .- . ;.: .. ... !I! ....... .. ..... !: ..--.- .- . i : ........ .. . ,-*.- - _.-. - .. .. .._. - . ..- .. --. -. .-. -- -- . .-.-. . ----..-ihi .. I --A .-----.-,-. .--- QL-- - .. d...... ... .:,: I * .. hm~ cmmub~d -.. i i i ' 6- ._I . ....... ,..I__ ......... 0 PALOMAR %46 rCI t -e P SIGN CRITERIA I. 1. SIGN CRITERIA Thim criteria establishes tho uniform policies for a Tenant sign indentificafion vithin tho PALOMAR AIRPO BUSINESS PARK. This critoria has been established t the purpooe of maintaining tho overall apprarance th6 Park. Conformancr uiAL bo rtrictly enforced. A sign installed that does not conform to the aign critari unless agraed upon by the Landlord, will be brought conformity at the expense of the Tenant. A. General Requirements 1, A drawing of the size and shape of the appro sign ie attached. Lettering and installation ahall paid for by tho .Tenant. design prior to the inatallation of the sign. tenant oignr ana thm mathod of attachment to the building. 2. Landlord shall approve all copy and/or 1 3. Landlord ohall direct tho placement of 4. Tenant shall be re6pOnSible for th fulfill8 of all requirembnts of thi8 criteria. E. General Specifications 1. The sign's dhnsions ohall be 12' high 2. Tenant mhall bo allowed one aign regard 3. All sign lottaring shall bo whito in cc 4. No electrical or audible mign's shall be allowe 5. Upon expiration of lease, tenant shall r( sign insert only. 6. Except am provided herein, no advert placards, banners, pennants, names, insignia, trademl Of other deecriptive material shall be affixed or mint upon any automated machfna. glaoa pano8 of the bUill landscaped ar088, street., or parking areas. 4 feet wide. of size of occupancy. No other Color mhall bo a maximum of 4' in height. -ordl a Initial. &c. (B) . .( - I c -4 0 I) L 1 ? TENANT INFORMATION 1. Your new mailing address is: PAIL)MAR #46 2075 CR!Z DEL NOGAC, SUIT CARISBAD, CA 92009 2. If you are new in the area you must go to City Hall fo for your business license. The address is: 1200 Elm Ave. Carlsbad, CA 619-434-2882 e 3. Utilities prbviding service are: Pacific Telephone 619-811-3411 San Diego Gas & Ele 1816 Oceanside Blvd Oceanside, Ca 239-7511 / 436-2401 ' 4. The nearest Post Office is: 2772 Roosevelt Stre Carlsbad, CA 729-2456 5. Please address rental payments to:P- #46 Gildred Development 550 West 'C" St. S San Diego, Ca 9210