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HomeMy WebLinkAbout1993-10-26; City Council; Resolution 93-296b I\ # @ 0 ’# 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9 3 - 2 9 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A LEASE AGREEMENT WITH PLAZA PASEO REAL, SHOPPING CENTER FOR THE LIBRARY BRANCH WHEREAS, lease negotiations have been undertaken with both the of the Plaza de la Costa Shopping Center at 7750 El Camino Real, Carlsbad, Ca and the owners of the Plaza Paseo Real Shopping Center located at 6949 El ( Real, Carlsbad, California for use by the Library Branch; and WHEREAS, the lowest offer received for this lease was submitted b Paseo Real Shopping Center; and WHEREAS, the California Library Services Act (CLSA) State Grant I has sufficient unappropriated funds; NOW THEREFORE, be it resolved by the City Council of Cz California as follows: 1. The above recitations are true and correct. 2. An additional $4,800 for property rental and $11,500 for re11 expenses is appropriated from the CLSA available fund balanc 3. The Lease Agreement between the City of Carlsbad and the B Administration as Trustee for the Police and Fire Dep; Retirement Fund and the Board of Administration as Trustee Federated City Employees Retirement Fund, as owners of thl Paseo Real Shopping Center, attached hereto, is hereby appra 4. The Mayor is hereby authorized to sign the Lease on behalf City. I1 e c I1 0 e 1 PASSED, APPROVED AND ADOFTED by the City Council of the 2 Carlsbad, California, at its regular meeting held on the 26th 3 Of OCTOBER , 1993, by the following vote, to wit: 4 5 AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, 6 7 a 9 10 NOES: None ABSENT: None 'CLAUDE A. LEWIS, Edayor 11 12 ATTEST: (SEAL) 15 ALETHA L. RAUTENKRANZ, City Clerk' 14 aecd,/h 13 16 17 18 19 1 2o !I 21 22 23 24 25 I 26 27 28 e 0 ORIGI r PLAZA PASEO REAL SHOPPING CENTER LEASE BY AND BETWEEN THE BOARD OF ADMINISTRATION as trustee for the POLICE AND FIRE DEPARTMENT RETIREMENT FUND and THE BOARD OF ADMINISTRATION, . as trustee for the FEDERATED CITY EMPLOYEES RETIREMENT mTND AS LANDLORD AND CITY OF CARLSBAD AS TENANT 1 . 0 .. PLAZA PASEO REAL SHOPPING CENTER LEASE THIS LEASE is entered into as of the day of 199-, by and between THE BOARD OF ADMINISTRATION AS TRUSTEE FOR THE POLICE AND FIRE DEPARTMENT RETIREMENT FUND and THE BOARD OF ADMINISTRATION AS TRUSTEE FOR THE FEDERATED CITY EMPLOYEES RETIREMENT FUND ("Landlord") and CITY OF CARLSBAD ("Tenant"). ARTICLE I LEASE OF PREMISES 1.1 PREMISES. Landlord hereby leases to Tenant and Tenant hereby hires from Landlord, subject to all of the terms and conditions hereinafter set forth, that certain retail/comercial space (hereinafter referred to as the "Premises") located in the shopping center complex known as Plaza Paseo Real (the "Shopping Center") which is situated in Carlsbad, California on that certain real property described in the attached Exhibit "A". ' Shopping Center consists of multiple retail/comercial buildings (the "Shopping Center Buildings") and certain landscape, parking, sidewalk and driveway areas for use in corn with all tenants in the Shopping Center (the "Common Area"), as more particularly descri on the attached Exhibit "A". 1.2 DESCRIPTION OF PREMISES. The Premises is located within the are delineated by crosshatching on the attached Exhibit "B". Prior to the commencement of Lease Term, and at one time during the Lease Tern, at Landlord's or Tenant's option, Landlord's architect shall determine and certify in writing to the Tenant and the Landlord actual leasable square feet contained in the Shopping Center Buildings and the Premises, which determination and certification shall be conclusive, and thereupon Tenant's Fixed Minimum Rent (as defrned in Section 3.3) shall be adjusted accordingly. 1.3 DECLARATION. The Premises is subject to (and Tenant is bound by) a certai Declaration and Reservation of Access and Reciprocal Parking Easements recorded May 1990 as Instrument No. 90-249319 in the Official Records of San Diego County, Calif01 (the "CC&Rs") . 2 0 .. - ARTICLE II BASIC LEASE PROVISIONS 2.1 Project Name: Plaza Paseo Real 2.2 Tenant’s Trade Name: CITY OF CARLSBAD 2.3 Premises Address 6949 El Camino Real, Suite 200 (AKA C10) Carlsbad. CA 92009 2.4 Leasable Area of Premises: 5.6 13 square feet (subject to adjustment under Section 1.2 above). 2.5 Leasable Area of the Shopping Center Buildings: 146,762 square feet (subject to adjustment under Section 1.2 above). 2.6 Percentage Rent Rate: NIA % (See also Section 3.3.2 below.) 2.7 Initial Monthly Impound: $ None (See also Section 3.6.2 below.) 2.8 Initial Fixed Minimum Rent (Annual): $54.108.00 * ($9.64 per gross leasable squ foot of the Premises) (See also Section 3.3.1 below.) 2.9 Initial Fixed Minimum Rent (Monthly): $4.509.00 * ($a per gross leasable squa foot of the Premises) (See also Section 3.3.1 below.) 2.10 Basic Rent Adjustment: See Attached Addendum. 2.11 Lease Term: Five (5) years (See also Section 3.1 below.) 2.12 Target Date for Completion of Landlord’s Work December 1. 1993. 2.13 Target Commencement Date: January 1. 1994 (This date represents a good faith estimate by ‘Landlord and Tenant of date the Lease Term will commence.) (See also Section 3.1 below.) pursuant to Section 3.1.2.) Section 3.1.2.) 2.14 Security Deposit: $ 0 (See also Section 3.4 below.) 2.15 Use of Premises: City Library and for no other purposes. (See also Section 5.1 below.) Actual Commencement Date: (To be inserted by Landlord Expiration Date: (To be inserted by Landlord pursuant to * See Addendum, Section 14. 3 0 e 2.16 Initial Contribution to Promotional Fund: $ None (See also Section 3.7 below.) 2.17 Monthly Contribution to Promotional Fund: $ None per gross rentable square fo of the Premises (See also Section 3.7 below.) 2.18 Addresses for Payment and Notices: r ~~ Landlord: Emily P. Searls, Asset Manager NBS Realty Advisors 601 California Street, Suite 1400 San Francisco, CA 94108 with a copy to: (415) 781-2363 Linda M. Webber Coast Commercial Properties 4010 Barranca Pkwy., #260 Imine, CA 92714 (714) 857-3557 I T _I - i Tenant: CITY OF CARLSBAD 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: Claude A. Lewis, Mayor (619) 438-0218 with a copy to: Mr. Ralph Anderson CITY OF CARLSBAD 405 Oak Avenue Carlsbad, CA 92008 I 1 2.19 Brokers: CB Commercial Real Estate Group. Inc. 2.20 Lease Addendum: Any addendum which is attached hereto forms a part of this Le; and is incorporated herein by this reference. 2.21 THE FIRST MONTHLY INSTALLMENT OF FIXED MINIMUM RENT PAYAB UNDER THIS LEASE AND THE SECURITY DEPOSIT TO BE PAID UNDER THIS LEASE SHALL BE PAID BY TENANT TO LANDLORD AT THE TIME THIS LEASE EXECUTED BY TENANT. 4 0 e 2.22 . Exhibits: The exhibits listed below are incorporated in this Lease and are to be construed as part hereof: "A" Shopping Center Site Plan "B" Location of the Premises "C" Tenant Improvement Agreement "D" Landlord's Sign Criteria "E Rules and Regulations "F" Estoppel Certificate * Addendum THIS LEASE SHALL NOT BECOME EFFECTIVE UNTIL EXECUTED BY LANDLOR AND TENANT AND THE SUBMISSION OF THIS FORM OF LEASE TO TENANT B'I LANDLORD, OR LANDLORD'S AGENT, DOES NOT CONSTITUTE AN OFFER TO LEASE. NO EMPLOYEE OR AGENT OF LANDLORD OR ANY PERSON WITH WHOM TENANT MAY HAVE NEGOTIATED THIS LEASE HAS ANY AUTHORITY MODIFY THE TERMS HEREOF OR TO MAKE ANY AGREEMENTS, REPRESENTATIONS, OR PROMISES UNLESS THE SAME ARE CONTAINED HERE OR ADDED HERETO IN WRITING. 5 . 0 0 ARTICLE III TERM AND RENT b 3.1 TERM. 3.1.1 Commencement Date. The term of this Lease (the "Lease Term") shall be for the period set forth in Section 2.11 above, and shall commence as provided below: 3.1.1.1 The Lease Term shall commence on (? - the date that Tenant opens for business. 3.1.1.2 In the event Tenant is not open for business within sixty (1 days after the Target Commencement Date (unless the failure to open for business within time requirement was caused by strikes, material shortages, acts of God or Landlord, in w event the deadline will be extended for one day of each day of delay caused by such occurrence), Landlord, at its option, may cancel the Lease. In such event, Landlord shall over possession of the Premises. 3.1.2 Xotice to Tenant. The actual date of commencement of the Lease Term (the "Commencement Date"), shall be inserted in Section 2-13 of the Basic Lease Provisions promptly upon such commencement and written notice of such commencemer shall be delivered to Tenant by Landlord. The date of expiration of this Lease, (the "Expiration Date)", shall be determined by computing the length of the Lease Term prov at Section 2.22 of the Basic Lease Provisions from the Commencement Date, and shall b inserted in Section 2.13 of the Basic Lease Provisions at the same time as the Commenc Date is inserted. 3.2 PAYMENT OF RENT. Tenant hereby covenants and agrees to pay to Landlorc in the form of: 3.2.1 "Fixed Minimum Rent"; all as hereinafter provided. All sums due to Landlord or third parties under this Lease be deemed "Rent" for the purpose of enforcing this Lease. The payment of all Rent hereinafter set forth shall begin on the Commencement Date. Rent shall be paid in Un States currency at the office of Landlord in advance, without demand and without any reduction, abatement, counterclaim or setoff. Time is of the essence in the payment 0; Rent payable hereunder. 3.3 RENT. Tenant shall pay Landlord Rent as follows: 6 - 0 0 3.3.1 Fixed Minimum Rent. An annual Fixed Minimum Rent in the amount set forth in Section 2.8 above, payable in twelve (12) equal monthly installments in the amount set forth in Section 2.9 above, each payable in advance on the first day of each month throughout the Lease Term. Should the Lease Term commence on a day other than the fir? day of a month, the first monthly installment of Fixed Minimum Rent shall be prorated on basis of a thirty (30) day month. month. Common Area Expenses as defined in Secfion 3.6.1. 3.3.4 Adiustment of Fixed Minimum Rent. Fixed M increased, but in no event decreased, at the expiration of each year ustment Date”) 01 Section 3.3.1 until the next Adjustment Date. 3.3.4.1 The adjusted Fixed Minimum all be determined on each Adjustment Date by multiplying the Fixed Minimum by a fraction, the denominator f Labor, Bureau of Labor, Bureau ( Labor Statistics, Revised Consumer Price itan Area, all terms (1967=100) (the CPI index figure for the month immediat- U.S. Department of Labor‘s dex then in use and in the event said Index is discontinued, then the most different from the bas 1967=100, figures used for calculating the adjustment shal a supplied by the Bureau. If the described Index shall not 11 Index is published by the Department of Labor, another Indl as authoritative shall be substituted by Landlord. tenants, concessionaires and any other person in or from the Premises 3.3.5.1 All sales made in, or upon orders placed at, or completed by de kw-7 7 0 a or from or upon orders placed at the Premises; 3.3.5.5 Sales made by means of mechanical or other Premises. Each sale, charge or business transaction upon installment charge or contract is made. customers which were previously included in gross sales ntage Rent due hereunder. Tenant shall i~ one or more recording cash registers o all sales including credit card sales in, on from the Premises shall be recorded ch cash register tapes shall be retained as par the required records. Landlord a all reasonable times for the purpose of examinin records. . Tenant shall prepare and deliver to Landlord within twentj each calendar month at the place where rent is then required . In addition, Tenant shall further prepare and deliver to Landlord on 01 ieth (30th) day following the end of each calendar year during the Lease 8 0 0 gross sales made during the preceding calendar year or fraction thereof. herein above specified, any statement of gross sales required hereunder, (i) charge Tenant an report; or (ii) treat Tenant’s failure as a material breach of any other remedy allowed by law. In the alternative case in which Landlord ch written sales and tax returns, which in any way pt conducted by Landlord or by any authorized percent (2%) of the amount shown by Tenant’s, statement fc ord shall be entitled to declare Same to be a breach of this Leas Tenant’s obligation hereunder. If Tenant fails to pay Rent or other ch otherwise defaults with respect to any provision of this Lease, Land1 or any portion of said deposit for the payment of any Rent or in an amount sufficient to restore said del Lease and LandIord terminate this Lease. Landlord shall not be requi om its general accounts. If Tenant performs all of Tenant3 3.5 UTILITIES. Tenant shall be solely responsible for and shall promptly pay all electric and shone attributable to the Premises at the rates charged by the supply utili companies. 9 0 0 3.6 COMMON AREA 4GWEN-B. 3.6.1 Defition of Common Area. The Term "Common Area," as used in this Lease means all areas within the exterior boundaries of the Shopping Center now or later made available for the general use of Landlord and other persons entitled to occupy space the Shopping Center Buildings, and includes the exterior surfaces and roofs of the Shoppin Center Buildings. Without limiting this definition, Landlord may include in the Comon Area those portions of the Shopping Center presently or later sold or leased to purchasers tenants, as the case may be, until the commencement of construction of the building(s) thereon, at which time there shall be withdrawn from the Common Area those areas not sc forth by such owner or lessee for common use. Common Area shall not include (i) any improvements installed by a tenant outside of its premises, whether with or without Landlord's knowledge or consent, or (ii) any areas or facilities that could be considered a Common Area except that the areas or facilities are included in the description of a premi leased to a tenant. d1 ac I Lease means: (i) all costs and expenses incurred by Landlord in (w) operating, managing policing, insuring, repairing and maintaining the Common Area, Shopping Center, and, applicable, the security offices, management offices, merchant association offices, & a services (the "Common Facilities"), (x) insuring the Common Facilities and the mmon s and systems, water lines a es not exclusively serving the pren nter. Common Area Expenses shall , painting, lighting, cleaning, trash removal, related to the quirem y federal, state or local governmental agency; expense! related to the Common on and overhead in an amount equal to fifteen percent (15%) 10 e 0 manner: Landlord, on the first day of each calendar month, an amount estimated by Tenant's initial Monthly Impound under this Lease is set forth in Section Impound may be adjusted periodically by Landlord based on reasonable anticipated Common Area Expenses. 3.6.3.1 From and after the commencement of the Term, Tenant rds fiscal year, Land year (as the case may year, the amount of Ten2 share of the Common Area Expenses for said calendar o year and the Monthly Impound payments made by Tenant during that year. If 's share of the Common AI Expenses exceeds Tenant's prior Monthly Impound deficiency within ten (10) days after receipt of the Impound payments for the calendar or fiscal year Impound payments owed by Tenant. following: Area Expense item ("Responsib er Store"), Tenant's share of the portion of such spe Common Area Expense item commencement of calendar year or fiscal year (as the case may be), or at or fiscal quarter (but in no event less than eighty percer ble area of the Shopping Center Buildings) less the leasable area (i) Real Property Taxes assessed against the land in the 11 0 0 > the Shopping Center other than the Shopping Center Buildings. not allocated in Section 3.6.3.3(a), above, Tenant's share shall be an amount determined by Shopping Center Buildings leased and occupied by tenants as of encement of the of the Shopping Center Buildings). 3.7 ADVERTISING AND PROMOTION RJND. rd may, from time to time advertising and sales promotions for the benefit of to be known as the Promoti for advertising, promotion and puk administrative expenses), at such 3.7.1 Monthly Contribution. % of the amounts paid into the Promotion Fun , or Landlord may choose to provide promotiona administrative services in lieu o etary contribution. The amount of Tenant's pap1 into the Promotion Fund shall equal to the annual increase in increase be less than ent (4%) of the prior year's payment into the Promotion Ft shall be carried fo Should Landlord elect to have a "Grand Opening" 12 .e 0 ARTICLE IV CONSTRUCTION OF PREMISES 4.1 LANDLORD AND TENANT OBLIGATIONS. Subject to delay as provided herein, Landlord shall, at its own cost and expense, develop the Premises in accordance witl plans and specifications prepared by Landlord or Landlords architect, incorporating in SUC~ construction all items of work to be performed by Landlord as described in Exhibit "C" attached hereto ("Landlord's Work"), as soon as practical after all final drawings and specifications for the improvements of the Premises have been adopted and approved as provided in Exhibit "C". Any work to be performed by Tenant as specified in Exhibit 'IC any permits, fees, or applications for such work, or any work in addition to any of the item listed in Exhibit "C" shall be performed or obtained by the Tenant at its sole cost and expense (collectively "Tenant's Work). Any equipment or work other than those items lis in Exhibit "C" requested by Tenant to be installed in or constructed on the Premises by Landlord shall be paid for by Tenant prior to commencement of construction or installatior such additional items. 4.2 POSSESSION. Upon taking Dossession. and subiect to a punch list of items tc corrected within thirtv (30) days after possession, Tenant will accept the Premises in thc condition & which it may then be and waives any right to obiect to the condition of the Premises, appurtenances thereto and improvements thereon as of the date of acceptance. Landlord shall not be liable under this Lease to Tenant for any latent or patent defects i~ the Premises, the Shopping Center Building in which the Premises is located, or the Shop1 Center. However, if such latent or patent defects Drevent Tenant from occupving the Premises, Tenant shall have the right to terminate this Lease. 4.3 "SUBSTANTIAL COMPLETION". DELETED 4.4 CONSTRUCTION ACTIVITIES. DELETED 4.5 DELAY IN POSSESSION. Landlord shall not be liable for failure to deliver possession of the Premises to Tenant on the Target Commencement Date set forth in Section 2.13-above; provided, however, that if Landlord fails to deliver possession of the Premises on or before the expiration of three (3) months from the date specified in Section 2.13 above, either party may terminate this Lease by giving thirty (30) days' writ notice to the other party. Thereafter, neither party shall have any further liability to the ( in connection with this Lease. Landlord shall not be deemed to be in default with respec the performance of any of its construction obligations herein if such default is due to an! strike, lockout, civil commotion or invasion, rebellion, hostilities, sabotage, govementa regulations or controls, inability to obtain materials, services or financing, inclement we2 acts of God, delay on the part of Tenant or other causes beyond the control of Landlord. ARTICLE V COVENANTS OF TENANT 5.1 USE OF PREMISES BY TENANT. 5.1.1 Tenant shall occupy and use the Premises only for those uses set forth in 13 0 e Section 2.25 above and for no other purpose or purposes without the prior written consent c Landlord. 5.1.2 Negative Covenants. Tenant shall not: 5.1.2.1 Use or permit the Premises to be used for any purpose other than st forth in Section 2.15 above. 5.1.2.2 Conduct or permit to be conducted in the Premises any fire sale, auction, bankruptcy sale, second-hand sale, going-out-of-business sale or other promotions sales, except for periodic sales in the normal course of business and Friends of the Libra: - sales. 5.1.2.3 Allow any activity to be conducted on the Premises or store any material on the Premises which will cause a cancellation or increase in the premiums or violate the terms of any insurance policy maintamed by or for the benefit of Landlord or tl Shopping Center. 5.1.2.4 Use or allow the Premises to be used for sleeping quarters, dwellir rooms or for any unlawful purpose or permit any cooking on the Premises without Landlo prior written consent. 5.1.2.5 Solicit business, distribute advertising, obstruct, place any merchandise, vending or amusement machines on, or, otherwise use in the conduct of its business, any part of the Common Area of the Shopping Center, including the sidewalks i front of or adjacent to the Premises. 5.1.2.6 Commit or allow to be committed any waste, damage or nuisance any portion of the Premises, or interfere with any other tenant's use of the Common Area Shopping Center. 5.1.2.7 Handle, store, manufacture, treat, release, use or permit the use of Hazardous Substances (as defined below) on or in the Premises, or discharge any Hazard1 Substances onto the land or any Surface water or ground water at or near the Premises, el in compliance with applicable Environmental Laws (as defined below). Tenant shall con with the applicable provisions of the Safe Drinking Water and Toxic Enforcement Act of 1986. California Health and Safety Code Section 25249.6 et seq. Tenant shall immediat advise Landlord in writing of (a) any and all governmental agency regulatory proceeding: enforcement actions instituted or threatened which presently require or could require investigation, mitigation, clean-up, alteration or abatement of conditions at the Remises, (b) all claims made or threatened by any party against Tenant or the Premises relating to damage, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Substance. "Hazardous Substances" shall mean any substance which is (i) designated, defined, classified or regulated as a hazardous substance, hazardous mate1 hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect or as hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude any fraction thereof and all petroleum products, (iii) PCBs, (iv) asbestos, (v) flammable, explosive, toxic or otherwise or (ix) a reproductive toxicant. Environmental Law(s) shal 14 e 0 . mean the comprehensive Environmental Response, Compensation and Liability Act of 1980 42 U.S.C. Sections 9601, et seq., the Resource Conservation and Recovery Act of 1979, 42 U.S.C. Sections 6901 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Sectio 1801 et seq., the Clear Water Act, 33 U.S.C. Sections 1251 et seq., as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said laws and a other federal, state or local law, statute, rule, regulation, ordinance, decree, order, permit license, approval or authorization which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or release or threatened release into the environment of Hazardous Substances or pertaining to the protection of human health and safety of the environment. 5.1.2.8 Erect or install any exterior signs or window or door signs, adverti media or window or door lettering or placards; install any exterior lighting or plumbing fuctures, shades or awnings; make any exterior decoration or painting; build any fences, w barricades or other obstructions; or, install any radio, television, phonograph, antennae, 101 speakers, sound amplifiers, flashing or revolving lights, or similar devices on the roof, exterior walls or in the windows of the Premises, or make any changes to the store front without Landlord's prior written consent. Any signs, lights, advertising material, loud speakers or anything installed by Tenant on the Premises which may be seen, heard, or experienced outside the Premises must be designed or approved by Landlord. Tenant agr to utilize Landlord's designated Shopping Center sign contractor for the fabrication and installation of Tenant's signs. Tenant shall not display, paint or place, or cause to be displayed, painted or placed any handbills, bumper stickers, or other advertising devices ( any vehicles parked in the Common Area of the Shopping Center, nor shall Tenant distri or cause to be distributed in the Shopping Center any handbills or other advertising devic 5.1.3 Affimative Covenants. Tenant shall: 5.1.3.1 Comply at its sole cost and expense with all laws, ordinances, cc orders, rules and regulations (state, federal, municipal or promulgated by other agencies bodies having or claiming jurisdiction) affecting or requiring improvements or modifkati to the Premises, including, without limitation (a) all laws, ordinances, codes, orders, rule regulations dealing with environmental protection, pollution or Hazardous Substances; a the requirements of the Americans with Disabilities Act ("ADA"). 5.1.3.2 Warehouse, store and/or stock in the Premises only such goods, and merchandise as Tenant intends to offer or sale at retail at, in, from or upon the Pre~ Tenant shall use for ofice, clerical or other non-selling purposes only such space in the Premises as is from time to time reasonably required for Tenant's business in the Premi as 1s reasonably determined by Landlord for such ty 15 0 0 . herein provided; said further ed to be in lieu only of Percentage Rent as to conduct its busin parties of the damage that Landlord would incur for lost Rent, costs and ot 5.1.3.5 Keep the Premises, entrances thereto, walkways adjacent thereto, loading platforms, service areas, garbage and refuse storage arm free from obstruction an clean and neat, and arrange for the prompt and frequent pickup of rubbish at .such interval Landlord may direct. 5.2 REPAIRS. 5.2.1 Acceptance of Premises. Tenant agrees that its acceptance of the Prernisc (as evidenced by Tenant's entry into possession thereof') shall constitute conclusive proof the Premises is, as of the Commencement Date, in a tenantable and good condition and m Tenant hereby waives the right to make repairs at Landlord's expense under the provision Section 1941 and 1942 of the Civil Code of California Tenant hereby waives its rights, any, under the provisions of Section 1932, Subdivision 2 and Section 1933, Subdivision d the Civil Code of California. 5.2.2 Maintenance by Tenant. Tenant shall, at Tenant's sole cost and expensc keep the Premises and every part thereof in good and sanitary order, condition and repai (except as hereinafter provided with respect to Landlord's obligations) including, withou? limitation, the maintenance, replacement and repair of any storefront, doors, window easements, glazing, plumbing, pipes, electrical wiring and conduits. Any work of repair maintenance performed by or on account of Tenant by persons other than Landlord shal performed by contractors reasonably approved by Landlord. Tenant shall, upon the exp or sooner tennination of this Lease, surrender the Premises to Landlord in good conditil broom clean, ordinary wear and tear and damage from causes beyond the reasonable ca of Tenant excepted. Any damage to adjacent premises caused by Tenant's use of the Premises shall be repaired at the sole cost and expense of Tenant. 5.2.3 Maintenance bv Landlord. Notwithstanding the provisions of Section above, Landlord shall, repair and maintain the HVAC system (and contract for regular professional HVAC maintenance), and the exterior walls, roof and structural porlions c Shopping Center Buildings, unless such maintenance and repairs are caused in part or whole by the act, neglect, fault or omission of any duty by Tenant, its agents, servants 16 0 0 . employees, or invitees, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for thirty (30) days after writter notice of the need for such repairs or maintenance is given to Landlord by Tenant lor such louver - period as is reasonably reauired provided Landlord commences reoairs within such 30 dav period and diligentlv prosecutes such repairs to completion. There shall be no withholding of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Shopping Center Buildings or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant waives the right to make repairs at Landlords expense under any law, statutes or ordinances now or hereafter in effect. 5.2.4 Notice to Landlord. Tenant shall promptly notify Landlord in writing of the need for any repairs to be performed by Landlord at Tenant’s expense and Landlord shall have the right to enter the Premises at any time upon reasonable notice with such personnel and equipment as may be deemed necessary by Landlord to make such repairs. Unless Landlord is nevligent, - in no event shall Landlord be liable to Tenant, for any loss, damage (including water damage), theft, or destruction of or to any merchandise, fixtures, money or other property belonging to any person occasioned by acts of Landlord or its agentsor employees while making such repairs. In no event shall Tenant be entitled to any withholding of rent during periods of such repair. 5.2.5 ReDairs for Tenant. In the event Tenant fails or refuses to perform any repairs required of it hereunder, or to make any payment in connection therewith, in addition to all other remedies available hereunder, at law or in equity, for Tenant‘s default, Landlord may, but shall not be obligated to, enter the Premises with personnel and equipment and perform such repairs on behalf of and at the expense of Tenant, or make such payment for such repairs on behalf of Tenant and charge Tenant for such payments made plus interest at the maximum legal rate allowed by law. 5.3 ALTERATIONS. 5.3.1 Alterations. Tenant shall not make or cause to be made any alterations, additions or improvements or install or cause to be installed any trade fixtures, exterior sign: floor covering, interior lighting, plumbing fixtures, shades or awnings or make any changes 1 the store front of the Premises without Landlord’s prior written consent. Tenant shall presen Landlord with plans and specifications for such work, construction means and methods, the identity of the contractor to be employed and the time for performance of such work concurrently with the request for approval. If required by Landlord, Tenant shall also provic security for the lien free completion of such work in the form of a bond or other security satisfactory to Landlord. 5.3.2 Removal of Alterations by Tenant. All alterations, decorations, additions and improvements made by Tenant, or made by Landlord on Tenant‘s behalf by agreement under this Lease (collectively, “Alterations”), shall remain the property of Landlord during t 17 0 0 Lease Term and any extension of renewal thereof. No Alterations shall be removed from thc Premises without Landlord's prior written consent. During the Lease Term, Tenant shall not remove any of its trade fixtures or other personal property without the immediate replacemel thereof with comparable fmtures. or property. Upon expiration of this Lease, or any renewal term thereof, at Landlord's option, Tenant shall remove all Alterations, and restore the Premises as provided in Section 13.1 hereof. If Tenant fails to remove such Alterations and restore the Premises, then upon the expiration of this Lease, or any renewal thereof, and up Tenant's removal from the Premises, all such Alterations shall become the property of Landlord and Tenant shall reimburse Landlord for the cost of removal and/or storage of suc Alterations. 5.3.3 Liens. Tenant shall keep the Premises-free from any kinds of liens, encumbrances, charges or pledges arising out of work performed or materials furnished Tenant and shall promptly pay all contractors, materialmen, laborers, suppliers and vendors used by Tenant to improve the Premises, so as to minimize the possibility of a lien attache thereto. Should any such lien be made or filed, Tenant shall bond against or discharge the same within ten (10) days after written request by Landlord. 5.3.4 Indemnity. Tenant shall indemnify, defend and hold Landlord, the Premis8 and the Shopping Center and every part thereof free and harmless from and against'any ar all liability, damage, claims, demands, suits, actions or expense (including attorneys' fees) arising out of any work done on or about the Premises by Tenant, its employees, representatives, successors, contractors, subcontractors, materialmen and assigns. 5.4 SIGNS, AWNINGS AND CANOPIES. See Addendum, !kction 15 5.4.1 Landlord's Consent. Tenant shall not place or suffer to be placed or maintained on the roof or on any exterior door, wall or windows (or within 48 inches of i windows) of the Premises any sign, awning or canopy, or advertising matter on the glass any window or door of the Premises without Landlord's prior written consent. Tenant fu agrees to maintain such sign, awning, canopy, decoration, lettering or advertising matter , may be approved in good condition and repair at all times. 5.4.2 Sim Criteria. See Addendum -, -+ T- thereafter be rnaintaind by Tenant at its own expense. Landlord may do so and Tenant shall reimb does not conform to Landlord's " " - 18 a 0 5.5 PARKING. Tenant and its employees shall park their vehicles only in those portic of the Common Area from time to time designated for such purpose by Landlord, Further, Landlord shall have the right to adopt and implement such parking programs as may be necessary to alleviate parking problems during peak tmffk periods, including requiring the use of offsite parking for employees. Tenant shall furnish Landlord with a list of its employees and the license numbers of their vehicles within fifteen (15) days after Tenant opens for business in the Premises. Tenant shall be responsible for ensuring that its employees comply with all the provision so this section and such other parking rules and regulations as may be adopted and implemented by Landlord from time to time, including not limited to systems of validation, shuttle transportation or any other programs which m; be deemed necessary or appropriate by Landlord to control, regulate or assist parking by customers of the Shopping Center. ARTICLE VI CONTROL OF SHOPPING CENTER 6.1.1 The new Premises shall be substantially the Same in size, in that condition by Landlord at its cost. 6.1.2 The physical relocation of the Premises shall mplished by Landlor1 its cost. 6.1.3 The physical relocation of the Pre all take place on a weekend an as not been completed in that time, re location commences to the time it is completed. directories, advertis lord shall not have the right to relocated the Premises more than tu 19 a 0 of which shall be the total number of gro uare feet in the Premises before relocation. / 6.2 PARKING AND COMMON AREA. 6.2.1 Maintenance and Use of Common Area. The manner in which the Corn Area shall be maintained shall be solely determined by Landlord. Landlord shall have the right in its sole discret‘on to allow any purchaser or tenant to maintain any portion of the Common Area &provided such purchaser or tenant shall maintain the Common Area an equal or better standard as the remainder of the Common Area in the Shopping Center. any owner or tenant of any portion of the Shopping Center maintains any portion of the Common Area, Landlord shall not have any responsibility for the maintenance of that pon of the Common Area. 6.2.2 Rules and Reeulations. The use and ,occupancy of the Premises by Tern shall include the right to use the Common Area (except those portions of the Common A on which have been constructed or placed permanent or temporary kiosks, displays, carts stands and those areas used in the maintenance or operation of the Shopping Center) in common with Landlord and other tenants of the Shopping Center and their employees, ag customers and invitees, subject to such reasonable, nondiscriminatory rules and regulatio concerning the use of the Common Area as may be established by Landlord from time tc time. Written notice of such rules and regulations and amendments and supplements the: if any, shall be given to Tenant thirty (30) days prior to their effective date. Tenant agre promptly comply with all such rules and regulations upon receipt of written notice from Landlord. Landlord’s current rules and regulations are attached as Exhibit “E”. In the of a conflict between the terms of this Lease and the Rules and Regulations. the ter this Lease shall povern. 6.2.3 Control of and Changes to Common Area. Landlord shall have the sol exclusive control of the Common Area, as well as the right to make reasonable changes Common Area. Landlord‘s rights shall include, but not be limited to, the right to (a) re! the use of .the Common Area by unauthorized persons; (b) cause Tenant to remove or n persons from any unauthorized use of the Common Area if they are using the Common by reason of Tenant‘s presence in the Shopping Center; (c) utilize from time to time an: portion of the Common Area for promotional, entertainment and related matters; (d) pla permanent or temporary kiosks, displays, carts and stands in the Common Area and to Same to tenants; (e) temporarily close any portion of the Common Area for repairs, . improvements or alterations, to discourage noncustomer use, to prevent dedication or 2 easement by prescription, or for any other reason deemed sufficient in Landlord’s judgr (f) reasonably change the shape and size of the Common Area; (g) add, eliminate or cl the location of improvements to the Common Area, including, without limitation, builc 20 4 0 0 lighting, parking areas, roadways and curb cuts; and (h) construct buildings on the Common Area. Landlord may determine the nature, size and extent of the Common Area and whethe portions of the same shall be surface, underground or multiple-deck. 6.3 DEVELOPMENT OF SHOPPING CENTER BY LANDLORD. It is expressly understood and agreed that Landlord may at its sole option (but shall not be obligated to), a without Tenant's consent, and without liability to Tenant: 6.3.1 Develop undeveloped portions of the Shopping Center; 6.3.2 increase the size of the Shopping Center by additions of contiguous property decrease the size of the Shopping Center or increase, decrease or otherwise modify the Shopping Center Buildings, Common Area, parking layout, ingress or egress to and from tl Shopping Center; in any of which events, Landlord shall deliver to Tenant a revised Exhibit "A" which shall be substituted in and automatically become part of this Lease. 6.3.3 Build additional stories on any of the Shopping Center Buildings and constr doubledeck subterranean, or elevated parking facilities. Landlord makes no warranty or representation whatever regarding the names or character of businesses to be conducted or size or location of any space to be occupied by any tenant of the Shopping Center. The Shopping Center Buildings use designations, if any, set forth on Exhibit "A" are for convenience only, and is not to be construed as a representation that the Shopping Center Buildings will be put to such use; and Tenant does not rely on any such representation in entering into this Lease. 6.4 RIGHT OF ACCESS. 6.4.1 Easement RiPhts. Tenant hereby grants to Landlord such licenses or easements in, under or over the Premises or any portion or portions thereof as shall be reasonably required for the installation or maintenance. of mains, conduits, pipes or other facilities to serve the Shopping Center or any part thereof. 6.4.2 Access Rights. Landlord and its agents shall have free access to the Pren during all reasonable hours for the purpose of examining the same and to ascertain if Te is in compliance with the terms of this Lease, to exhibit the same to prospective purchas tenants pursuant to this Lease and to post such notices as may be desirable or necessary Landlord's sole judgment. ARTICLE VII TAXES AND ASSESSMENTS 21 . 0 8 expiration or earlier termination of the Term. subdivision thereof in whic dlord on account of Rent payable t en (10) days after Tenant’s receipt of the tax bill therefor from Landlord. . Tenant shall pay, before delinquency, all te. If at any time during the Lease Term any of the foregoing are ARTICLE VICI INSURANCE 8.1 INSURANCE TO BE MAINTAINED BY TENANT. At all times during the Le Term, Tenant, at its sole cost and expense, shall maintain in full force and effect self insurance and Dooled coverage or coverave with insurance companies licensed to do business in the State of California and otherwise satisfactory to Landlord one or more po evidencing the following coverage: 8.1.1 Comprehensive general liability insurance or its equivalent including premises/operations, contractual liability, independent contractors, personal injury, products/cornpleted operations and, if applicable, liquor liability insurance with respect tc Premises and the business operated by Tenant and subtenants and concessionaires of TeI in the Premises, of which the combined single limit of general liability shall not be less $1,OOO,OOO per Occurrence for bodily injury and property damage. 8.1.2 “All risk“ coverage insurance covering all trade fmtures, merchandise ani personal property in or upon the Premises in amounts not less than one hundred percen (100%) of the replacement value thereof, providing protection against any peril include within the classification of “Fire and Extended Coverage”, including sprinkler damage, vandalism and malicious mischief. 22 @ 1) 8.1.3 Plate glass insurance on the Premises. The above policies shall name Landlord, and any person, firms, or corporatic designated by Landlord as additional insureds. Said entities shall not, by reason of their inclusion under said policies, incur liability for payment of any premium. The policies sha contain a clause that insurer will not cancel or change such coverage without first giving Landlord thirty (30) days' prior written notice. All insurance required hereunder shall be issued by an insurance company having not less than a financing rating of Class B7 as ratc in the most current available "Best's Key Rating Guide'' and a copy of the policy or certifi of insurance shall be delivered to Landlord prior to Tenant's occupancy of the Premises. f public liability, property damage and other casualty policies shall be written as primary policies, not contributing with and not in excess of coverage which Landlord may carry. 8.2 INSURANCE TO BE MAINTAINED BY LANDLORD. At all times during the Lease Term, Landlord shall maintain "all risk" coverage insurance on the Shopping Cente Buildings with (if appropriate) a replacement cost endorsement and an agreed or stipulate1 amount endorsement, rental loss insurance or any other insurance coverages deemed nece: by Landlord or Landlord's lender (collectively, "Landlord Carried Insurance"), which ma) obtained through a blanket policy or other form of pooled insurance coverage covering nc only the Shopping Center, but other property owned by Landlord or its affiliates. Landlo Carried Insurance shall be in an amount equal to at least ninety percent (90%) of the replacement value of the Shopping Center Buildings (exclusive of foundation and excava costs). .f 8.3 WAIVER OF SUBROGATION. Tenant hereby waives any right of recovery a: Landlord, its successors, assigns, directors, agents and representatives in connection with loss or damage caused to Tenant's property and covered by any property insurance polic, Tenant. Tenant hereby waives on behalf of its carriers any right of subrogation it may 1 against Landlord and shall notify its carrier of the waiver contained herein. :.. -~ ARTICLE IX INDEMNIFICATION 9.1 INDEMNIFICATION BY TENANT. Tenant hereby agrees to indemnify, 1 and hold Landlord harmless from and against any and all claims, demands, actions, dm liability and expense (including reasonable attorneys' fees and costs of investigation wit respect to any claims, demand or action) in connection with loss of life, personal injq and/or damage to property arising from or connected with the conduct or management business conducted by Tenant on the Premises, or the occupancy or use by Tenant of t Premises or any part thereof, or from any breach or default on the part of the Tenant i performance of any covenant or agreement on the part of Tenant to be performed purs' this Lease (including without limitation the covenants regarding Hazardous Substances forth in Section 5.2.2.7), or from violations of or noncompliance with any government requirements or insurance requirements, or from any acts or omissions of Tenant or ax person on the Premises by license or invitation of Tenant or occupying the Premises c part thereof under Tenant. In case Landlord shall be made a party to any litigation commenced by or against Tenant, Tenant shall accept any tender of defense by Land1 23 @ $ shall, notwithstanding any allegations of negligence or misconduct on the part of Landlord, i agents .or emp€oyees, defend Landlord and protect and hold Landlord harmless and pay all costs, expenses and reasonable attorneys' fees incurred or paid by Landlord in connection w such litigation; provided, however, Tenant shall not be liable for any such injury or damage the extent and in the proportion such injury or damage is ultimately determined to be attributable to the negligence or misconduct of Landlord, its agents or employees. -This indemnification shall survive the expiration or earlier termination of this Lease. 9.2 WAIVER AND RELEASE. Except to the extent caused by the neelipence or misconduct of Landlord, or breach of any other brovision of this Lease by Landlord, Tenant agrees and this Lease is made upon the express condition that Landlord shall not be liable, responsible, or in any way accountable, to Tenant, for any loss, theft, destruction or damage (including but not limited to any damage caused by rain storm or other water damage) to any goods, wares, merchandise, fixtures ::r ::ther property stored, kept, maintai or displayed in, on or about the Premises, or in, on <+.: mut any other facilities which Ten may have use of in conjunction with this Lease, nor . ..I injury to or death of any person o persons who may at any time be using, occupying or visiting the Premises or thereabouts. ARTICLE X DAMAGE AND DESTRUCTION; EMINENT DOMAIN 10.1 NOTICE BY TENANT. Tenant shall give immediate notice to Landlord in cw fire, accident or other casualty in the Premises or in the Shopping Center Building in whi the Premises is located or of any damage or defects in the Premises, the Shopping Center Building in which the Premises is located or any fixtures or equipment therein. 10.2 DAMAGE AND DESTRUCTION. In the event the Premises are damaged by f or other peril covered by Landlord Carried Insurance, Landlord agrees to forthwith repab same, and this Lease shall remain in full force and effect, except that Tenant shall be ent to a proportionate reduction of the Fixed Minimum Rent from the date of damage and w : such repairs are being .made, such proportionate reduction to be based upon the extent to which the damage and making of such repairs shall reasonably interfere with the busines canied on by the Tenant in the Premises; provided, however, if the damage is due to the or neglect of Tenant or its employees, there shall be no abatement of rent. In the event Premises are damaged as a result of any cause not covered by Landlord Carried Insurant then Landlord shall have the option: (1) to repair or restore such damage, in which eve] Lease shall continue in full force and effect, but the Fixed Minimum Rent shall be proportionately reduced as provided above; or (2) give notice to Tenant at any time witl sixty (60) days after such damage, terminating this Lease as of the date specified in suc notice, which date shall be no more than thirty (30) days after the giving of such notice the event of giving such notice, this Lease shall expire and all interest of the Tenant in Premises shall terminate on the date so specified in such notice and the Fixed Minimw reduced in proportion to the extent, if any, such damage interfered with the business ca on by Tenant in the Premises, shall be paid up to the date of such termination. Notwithstanding anything to the contrary contained in this Section, Landlord shall not 1 any obligation whatsoever to repair, reconstruct or restore the Premises if the damage c during the last twenty-four (24) months of the Lease Term or any extension thereof. Landlord shall not be required to repair any injury or damage by fue or other cause, o 24 0 0 make any repairs or replacements of any leasehold improvements, furtures, or other persona! property of Tenant. J0.3 EMINENT DOMAIN. Lf there is any taking of all or any part of the Premises or the Shopping Center or any interest therein because of the exercise of the power of eminent domain, whether by condemnation proceedings or otherwise, or any transfer of any part of Premises or any interest therein made in avoidance of the exercise of the power of eminent domain (all of the foregoing being hereinafter referred to as “taking”), the rights and obligations of Landlord and Tenant with respect to such taking shall be as follows: 10.3.1 Total Taking. If there is a taking of 50% or more of the leasable xea of f Premises, this Lease shall terminate as of the date of such taking. 10.3.2 Partial Taking. If less than 50% of the leasable area of the Remises shall taken, Tenant or Landlord shall have the option to terminate this Lease. The terminatin party shall give written notice to the other of its election no later than ninety (90) days a the date Landlord receives notice that possession or title to the portion of the Premises or Shopping Center taken has vested in the condemnor. 10.3.3 Effective Date. If this Lease is terminated in accordance with the provisio of this Section 10.3, such termination shall become effective as of the date physical possession of the particular portion is taken or immediate possession is ordered. The part shall then be released from all further liability hereunder. If this Lease is not terminated provided in this Section 10.3, Landlord shall restore the remainder of the improvements occupied by Tenant so far as is practicable to a complete unit of like qualify, character, a condition as that which existed immediately prior to the taking. 10.3.4 Rent Adiustment. If this Lease is not terminated as provided in this Section 10.3, the Fixed Minimum Rent for the remainder of the Lease Term shall be red by the proportion which the number of square feet of leasable area of the Premises taker bears to the total leasable area of the Premises immediately before the taking. 10.3.5 Award. The entire award or compensation in such proceedings, whether total or partial taking or for diminution in the value of the leasehold or for the fee, shall belong to and be the property of Landlord and Tenant hereby assigns to Landlord all of Tenant’s interest in any award. Tenant expressly waives the provisions of California Cc Civil Procedure Section 1265.130, as amended from time to time. 25 e 0 '. ARTICLE XI ASSIGNMENT AND SUBLETTING 11.1 NO ASSIGNMENT WITHOUT CONSENT. Tenant shall not directly or indirect] voluntarily or by operation of law, sell, assign, encumber, pledge or otherwise transfer or hypothecate its interest in or rights with respect to the Premises or Tenant's leasehold estate hereunder (collectively, "Assignment"), or permit all or any portion of the Premises to be occupied by anyone other than Tenant or sublet all or any portion of the Premises or transf any portion of its interest in or rights with respect to Tenant's leasehold estate hereunder (collectively, "Sublease") without Landlord's prior consent. 11.2 NOTICE OF INTENT TO ASSIGN. If Tenant desires at any time to enter into : Assignment of this Lease or a Sublease of all or any portion of the Premises, Tenant shall first give notice to Landlord of its desire to do so, which notice shall contain (a) the name and address of the proposed assignee, subtenant or occupant, (b) the nature of the propose assignee's, subtenant's or occupant's business to be carried on in the Premises, (c) a statem of the proposed assignee's, subtenant's, or occupant's experience and success in operating : a business, (d) the terms and provisions of the proposed Assignment or Sublease and (e) s financial information as a Landlord may reasonably request concerning the proposed assit subtenant or occupant, including a financial statement showing the proposed assignee's, subtenant's, or occupant's income and net worth, and (f) a check payable to Landlord for ~ as a processing fee. 11.3 LANDLORD RESPONSE TO REQUEST TO ASSIGN. At any time within tf (30) days afier Landlord's receipt of the notice specified in Section 11.2, Landlord may b notice to Tenant elect to (a) terminate this Lease as to that portion of the Premises that i: specified in Tenant's notice, with a proportionate abatement in the Rent, (b) consent to tf Sublease or Assignment, or (c) disapprove the Sublease or Assignment; provided, howev that if Landlord elects not to exercise the option set forth in (a) Landlord shall not unreasonably withhold its consent to the Assignment or Sublease. As a condition for g~ its consent to any Assignment or Sublease, however, Landlord shall require that Tenant to pay to Landlord one hundred percent (100%) of the amount by which all sums payab Tenant in connection with such Assignment or Sublease exceed Rent payable by Tenant Landlord hereunder (or a proportionate amount of such Rent representing the portion of Premises subject to a Sublease if less than the entire Premises is subject to a Sublease). Landlord consents to the Sublease or Assignment within such thirty (30) day period, Te may thereafter within ninety (90) days after Landlord's consent, but not later than the expiration of such ninety (90) days, enter into such Assignment or Sublease upon the tc and conditions set forth in the notice furnished by Tenant to Landlord pursuant to Section 11.2. 11.4 TENANT TO REMAIN LIABLE. No consent- by Landlord to any Assignme Sublease by Tenant shall relieve Tenant of any obligation to be performed by Tenant 1 this Lease, whether arising before or after the Assignment or Sublease. The consent b Landlord to any Assignment or Sublease shall not relieve Tenant from the obligation 1 Landlord's express consent to any other Assignment or Sublease. Any Assignment or Sublease that fails to comply with the requirements of this Artick XI shall be void an option of Landlord, shall constitute an Event of Default by Tenant (as defined in 26 0 0 Section 12.1) under this Lease. The acceptance of Rent by Landlord from a proposed assignee or sublease shall not constitute the consent to such Assignment or Sublease by Landlord. 11.5 OTHER TRANSFERS. Any sale or other transfer, including by consolidation, merger or reorganization, of a majority of the voting stock of Tenant, if Tenant is a corporation, or any sale or other transfer of a majority of the partnership interests in Tenant, if Tenant is a partnership, shall be an Assignment for purposes of this Lease. As used in th ,"&on 21.3, the tern "Tenant" also shall mean any entity that has guaranteed Tenant's obligations under this Lease. 11.6 ASSIGNEE TO ASSUME ALL LEASE OBLIGATIONS. Any assignee of Tenan interest in this Lease shall assume all obligations of Tenant under this Lease and shall be a remain liable jointly and severally with Tenant for the payment of Rent, and for the performance of all the provisions of this Lease. No assignment shall be binding on Landlc unless the assignee or Tenant shall deliver to Landlord a counterpart of the Assignment an an instrument in recordable form that contains a covenant of assumption by the assignee satisfactory in substance and form to Landlord, consistent with the requirement of this Sectiun ZZ.6, but the failure or refusal of the assignee to execute such instrument of assumption shall not release or discharge the assignee from its liability as set forth above. 11.7 ATTORNEYS' FEES. DELETED ARTICLE XII LANDLORDAiWTENANTDEFAULT 12.1 TENANT DEFAULT. The following shall be deemed to be events of default ("Events of Default") by Tenant under this Lease: 12.1.1 Failure to Pav Re& Tenant shall-fail, neglect or refuse to pay any " ."_ ." installment of Fixed Minimum Rent, Additional Rent, Percentage Rent or any other char including, without limitation, late charges, required to be paid by Tenant hereunder at th time and in the amount as herein provided, or pay any monies agreed by it to be paid promptly when and as the Same shall become due and payable under the terms hereof ar such default shall continue for a period of more than three (3) days after notice thereof i writing given to Tenant by Landlord. Landlord's notice pursuant to this Section shall t deemed notice under Section 1 16 1.2 of the .&lifornia Code of Civil Procedure and no additional notice shall be required under that statute. 12.1.2 Failure to Perform Covenants. Tenant shall fail, neglect or refuse to and perform any of the other c.ovenants, conditions, stipulations or agreements herein contained and covenanted and agreed to be kept and performed by Tenant and such del shall continue for a period of more than fifteen (15) days after notice thereof in writing to Tenant by Landlord; provided, however, that if the cause for giving such notice invc the making of repairs or other matters reasonably requiring a longer period of time tha period of such notice, Tenant shall be deemed to have complied with such notice if Te has commenced and is diligently prosecuting compliance therewith. 21 a 0 12.1.3 Attachment, BankruDtcv. Receivership. Any attachment of levy of executic or similar seizure of the Premises or Tenant’s merchandise, fixtures or other property at the Premises or any foreclosure, repossession, or sale under any chattel mortgage, security agreement or conditional sales contract covering Tenant’s merchandise, fixtures or other property at the Premises; or the filing of any petition by or against Tenant under any chaptt of the Bankruptcy Act, or the adjudication of Tenant as a bankrupt or insolvent; or the appointment of a receiver or trustee to take possession of all or substantially all of the asse of Tenant or a general assignment by Tenant for the benefit of creditors; or any other actio taken or suffered by Tenant under any state or federal insolvency or bankruptcy act and th~ continuation thereof for more than twenty (20) days. 12.1.4 Abandonment. Abandonment of the Premises for a continuous period in excess of thirty (30) business days. Tenant waives any right to notice Tenant may have ul Section 1951.3 of the Civil Code of the State of California or any successor code section, terns of this Section 12.1.4 being deemed such notice to Tenant as required by said Section 1951.3 or any successor code section. 12.2 LANDLORD REMEDIES. Landlord shall have the following remedies upon an Event of Default. These remedies are not exclusive; they are cumulative in addition to ar remedies now or later allowed by law: 12.2.1 Termination. If an Event of Default occurs, Landlord shall have right, after any applicable notice period, to immediately terminate this Lease, and at any 1 thereafter recover possession of the Premises or any part thereof and expel and remove Tenant and any other person occupying the Premises, by any lawful means, and again repossess and enjoy the Premises without prejudice to any of the remedies that Landlord have under this Lease, or at law or equity by reason of Tenant’s default or of such termination. 12.2.2 Continuation After Default. Even though Tenant has breached t Lease and/or abandoned the Premises, this Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right to possession under Section 12.2.1, and Land’ may enforce.al1 of its rights and remedies under this Lease, including (but without limit; the right to recover Rent as it becomes due, and Landlord, without terminating this b may exercise all of the rights and remedies of a landlord under Section 1951.4 of the Ci Code of the State of California or any successor code section. Acts of maintenance, preservation or efforts to lease the Premises or the appointment of a receiver upon appl! of Landlord to protect Landlord’s interest under this Lease shall not constitute an electic terminate Tenant‘s right to possession. 12.2.3 . Damages Uwn Termination. Should Landlord terminate this I pursuant to the provisions of Section 12.2.1, Landlord shall have all the rights and remf of a landlord provided by Section 195 1.2 of the Civil Code of the State of California c successor code section, i.e, Landlord may recover from Tenant: (a) the worth at the award of the unpaid Rent and other amounts which had been earned at the time of termination; (b) the worth at the time of award of the amount by which the unpaid Re1 which would have been earned after termination until the time of award exceeds the a* of such Rent loss that Tenant proves could have been reasonably avoided; (c) the won 28 0 time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such Rent loss that Tenant proves could be reasonably avoided; and (d) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom. The "worth at the time of award" of the amounts referred to in (a) and (b) shall be computed with interest at the m rate. The "worth at the time of award" of the amount referred to in (c) shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1 %). 12.3 REMOVAL OF PERSONS AND PROPERTY. In the event of any reentry, Landlord may remove all persons from the Premises and all property and any signs located or about the Premises and place such property in storage in a public warehouse at the cost and risk of Tenant. Except in the case of Landlord's willful misconduct, Tenant hereby waives all claims or demands for damages that may be caused by Landlord in reentering a7 taking possession of the Premises as herein above provided and all claims or demands for damages which may result from the destruction of or injury to the Premises and all claims demands for damages or loss of property belonging to Tenant or to any other person or fir that may be in or about the Premises at the time of such reentry. 12.4 OTHER RIGHTS. Nothing contained in this Lease shall limit Landlord to the remedies set forth in Section 12.2, and upon Tenant's default Landlord shall be entitled to exercise any right or remedy then provided by law or in equity, including, but without limitation, the right to obtain injunctive relief and the right to recover all damages caused Tenant's default in the performance of any of its obligations under this Lease. 12.5 COMPUTATION OF DAMAGES. average yearly Percentage Rent the ation of this Lease, and that the provisions st ion of any damages to 12.6 LATE PAYMENT. If Tenant fails to pay the Fixed Minimum Rent within fivr days after the same has become due, both Tenant and Landlord agree that Landlord will additional expenses consisting of extra collection efforts, handling costs, and potential impairment of credit on loans for which may be secured by this Lease. Both parties ag; that should Tenant so fail to pay its Rent, Landlord is entitled to compensation for detri caused by the failure, but that it is extremely difficult and impractical to ascertain the e: of the detriment. The parties therefore agree that should Tenant fail to pay any Rent dc hereunder within five (5) days after the same becomes due, Landlord shall be entitled tr recover from Tenant six percent (6%) of the amount past due as liquidated damages. S past due amounts shall also bear interest at the maximum rate allowed by law from the due until paid. Tenant further agrees to pay Landlord any costs incurred by Landlord i collection of such past due Rent, including but not limited to fees of an attorney and/or 29 @ 0 collection agency. Nothing herein contained shall limit any other remedy of Landlord unde this Lease. Landlord shall also have the right to require Tenant to pay any past due sums t cashier's check or money order. Further, should Tenant fail to pay Rent or any other charg due hereunder in the time periods set forth herein two (2) or more times during any calend; year of the Lease Term, Landlord may require Tenant to thereafter pay Fixed Minimum Re in quarterly installments in advance for the balance of the Lease Term. 12.7 CURE OF TENANT DEFAULT. 12.8 LANDLORD DEFAULT. Landlord shall in no event be charged with default in performance of any of its obligations hereunder unless and until Landlord shall have failec commence to perform such obligations within thirty (30) days (or such additional time as reasonably required to correct any such default) after written notice by Tenant to Landlon properly specifying wherein Landlord has failed to perform any such obligation. Upon th occurrence of an event of default on the part of Landlord (and after notice and any applic cure period), Tenant shall have the right to bring suit for the collection of any amounts fc which Landlord may be in default or the performance of any obligation of Landlord. In satisfying axiy judgment against Landlord, Tenant shall look solely to Landlord's interest the Shopping Center for recovery, including proceeds of sale of the Shopping Center. Landlord shall not be personally liable for any such judgment. ARTICLE XIII MISCELLANEOUS 13.1 HOLDING OVER, SURRENDER OF PREMISES, 13.1.1 Surrender. At the expiration or earlier termination of the Lease, Tenant shall surrender the Premises in the same condition as the Premises were in upon delivery of possession thereto under this Lease, reasonable wear and tear excepted, and surrender all keys for the Premises to Landlord at the place then futed for payment of R and shall inform Landlord of all combinations on locks, safes and vaults, if any, in the Premises. .No act or conduct of Landlord, except a written acknowledgment of acceptar surrender signed by Landlord, shall be deemed to be or constitute an acceptance of the surrender of the Premises by Tenant prior to the expiration of the Lease Term. 13.1.2 hold in^ Over. In the event the Tenant shall hold over the Pren after the expiration of the Lease Term the consent of the Landlord, either express or in . such holding over shall be construed to be only a tenancy from month-to-month, subjec covenants, conditions and obligations hereof and the Tenant hereby agree to a to La one hundred twenty-five percent (125%) of the Fixed Minimum Rent such additio~ period as Tenant shall occupy the Premises. L p y AW 30 a 0 13.1.3 Removal of Alterations. If prior to the expiration or earlier termination of this Lease or within fifteen (15) days thereafter, Landlord elects by written notice to Tenant to require the removal of any additions, improvements, fvrtures and trade * fatures made by or on behalf of Tenant, Tenant shall promptly remove the additions, improvements, fixtures, trade futures and installations which, were designated in said notice and shall repair any damage occasioned by such removal; and in default thereof Landlord may effect said removals and repairs at Tenant’s expense. The covenants of Tenant contain herein shall survive the expiration or termination of the Lease Term. 13.2 ESTOPPEL CERTIFICATES AND SUBORDINATION. 13.2.1 Priority: Ouiet Eniovment. This Lease at the option of Landlord c its lender shall, without need for further action by Landlord or Tenant, in all respects be deemed junior and subordinate to any lien or encumbrance now or hereafter affecting the Shopping Center, including without limitation any ground leases, mortgages, deeds of trust, major tenant leases, easement agreements, declaration of restrictions, or other matters now hereafter of record. In the event of any conflict between the terms of this Lease and the terms of any such lien or encumbrance, the provisions of the lien or encumbrance shall prevail. Subject to the foregoing, and upon payment by Tenant of all Rent herein providec and upon the observation and performance of all the covenants, terms and conditions on Tenant‘s part to be observed and performed, Tenant shall quietly hold and enjoy the Premi for the Lease Term without hindrance or interruption by Landlord or any other person lawfully or equitably claiming by, through or under Landlord, subject nevertheless to the terms and conditions of this Lease. 13.2.2 Estomel Certificate. Within ten (10) days after Landlord‘s written request, or in the event of any sale, financing, assignment or hypothecation of the Premise and/or the land thereunder by Landlord, Tenant agrees to deliver in a certificate (“Estoppe Certificate”) in the form of the attached Exhibit “F (amended as necessaw to reflect t correct facts as of the date of such Estomel Certificate1 to any proposed mortgagee or purchaser, or to Landlord. Failure by Tenant to timely execute the Estoppel Certificate SI be considered a material default by Tenant under this Lease. 13.2.3 Subordination APreement. Upon request, and without charge therefore, Tenant shall promptly execute and deliver to the holder of any mortgage that is lien or encumbrance! on the Shopping Center an instrument acknowledging any assignmer Landlord of Landlord‘s rights under this Lease to any such holder in connection with suc: mortgage. At the request of the holder of any such mortgage, Tenant shall execute an agreement (“Subordination Agreement“) attorning to and recognizing such holder as Lane hereunder, provided that the Subordination Agreement shall contain a nondisturbance provision as described above. Tenant‘s failure to execute the Subordination Agreement \I ten (10) days after written demand by Landlord shall constitute a material default by Ten hereunder. Upon such attornment, this Lease shall continue in full force and effect as a lease between Tenant and such holder as if Tenant and such holder had originally been t parties to this Lease. 13.2.4 Notice to Mortcaeees. Tenant agrees to give any mortgages and/ trust deed holders, by registered mail, a copy of any notice of default served upon Land; 31 e e provided that prior to such notice Tenant has been notified in writing (by way of notice of assignment of lease, or otherwise) of the addresses such mortgagees and/or trust deed holde Tenant further agrees that if Landlord shall have failed to cure such default within the time provided for in this Lease, then the mortgagees and/or trust deed holders shall have the rig1 to COmence such cure within thirty (30) days and diligently pursue the remedies necessq to cure such default (including but not limited to commencement of foreclosure proceeding if necessary to effect such cure), in which.event this Lease shall not be terminated while s1 remedies are being so diligently pursued. 13.2.5 Lease Amendments. DELETED 13.2.6 Financial Statements. DELETED 13.2.7 Sale bv Landlord. If during the Lease Term Landlord sells its intc in the Premises, or this Lease, or all or any portion of the Shopping Center, upon such conveyance Landlord shall be unconditionally absolved and released of all obligations of Landlord accruing hereunder from the date of such sale or transfer, but not from any obligations which arose prior to that date. 13.2.8 - Recordation. This Lease, or a short form thereof, shall not be recorded without the prior written consent of Landlord. 13.3 ATTORNEYS’ FEES. In the event any action or proceeding shall be brought tc enforce or interpret this Lease, including without limitation unlawful detainer of the Rem or for the recovery of any Rent due, or because of the breach of any covenant herein contained on the part of Tenant to be kept or performed, the prevailing party shall be en1 to recover all its costs and expenses, including, without limitation, reasonable attorneys‘ f and. expert witness fees. 13.4 NOTICES. Whenever under this Lease a provision is made for any demand, nc or declaration of any kind, or where it is deemed desirable or necessary by either party t give or serve any such notice, demand or declaration to the other, it shall be in writing, delivered personally or by certified mail with postage prepaid addressed to Tenant or to Landlord at the address set forth at Section 2.17 above. Either party may, by like notice any time and from time to time designate a different address to which notices shall be s Notices delivered by mail shall be deemed delivered upon receipt or refusal to accept delivery. 13.5 ADVERTISING OF TENANT. With the exception of national or regional advertising, Tenant agrees to refer to the Shopping Center by the.name “PIaza Paseo Rt designating the location of the Premises in all local newspaper or other advertising, stat other printed material and in all other references to location, and to include the address identity of its business activity in the Premises in all advertisements made by Tenant fc operation at the Shopping Center. 13.6 INTERPRETATION. As used in this Lease and whenever required by the c( thereof, each number, both singular and plural, shall include all numbers, and each gen shall include all genders. Landlord and Tenant as used in this Lease or in any other 32 0 0 instrument referred to in or made part of its Lease shall likewise include both the singular an( the plural, a corporation, co-partnership, individual or person acting in any judiciary capacity, executor, administrator, trustee, or in any other representative capacity. All covenants herein contained on the part of Tenant shall be joint and several. 13.7 SUCCESSORS. All of the terms hereof shall apply to, run in favor and shall be binding upon and inure to the benefit of, as the case may require, the parties hereto, and alsc their respective heirs, executors, administrators, personal representatives and assigns and successors in interest, subject at all times nevertheless to the provisions of Section 3-20 of th Lease relating to restrictions upon assignment or subletting this Lease or the Premises. 13.8 WAIVER OF DEFAULT. One or more waivers of the breach of any covenant, term or condition of this Lease by either party shall not be construed by the other party as a waiver of a subsequent breach of the same or any other covenant, term or condition. The consent or approval or either party of any act by the other party of a nature requiring consel or approval shall not be deemed to waive or render unnecessary consent to or approval of a: subsequent act. Failure of either Dartv to declare any default immediately upon the occurrence thereof, or delay in taking any action in connection therewith, shall not waive SI default. 13.9 NO PARTNERSHIP. Nothing contained in this Lease shall be deemed or constru by the parties or by any third party to state the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between Landlord and Ten; it being expressly understood and agreed that neither the method of computation of Rent nc any .other provisions contained in this Lease nor any act or acts of the parties thereto shall deemed to create any relationship between Landlord and Tenant other than the relationship a landlord and tenant. 13.10 APPLICABLE STATE LAW. The laws of the State of California shall govern th validity, construction, performance and enforcement of this Lease. 13.11 BROKER’S COMMISSION. Each of the parties represents and warrants that exc as is set forth in Section 2.18 above it has engaged no broker or finder in connection witl the execution of this Lease and each of the parties agree to indemnify the other against an hold it harmless from, all liabilities arising from any such claim (including, without limitti the cost of attorneys’ fees in connection therewith). 13.12 NO OPTION. The submission of this Lease for examination does not constitute reservation of or option for the Premises and this Lease shall become effective only upon execution and delivery thereof by Landlord and Tenant. 13.13 ENTIRE AGREEMENT. It is understood that there are no oral agreements bet the parties affecting this Lease and this Lease supersedes and cancels any and all previou negotiations, arrangements, brochures, agreements, representations and understandings, if ’ between the parties hereto. 13.14 CORPORATE RESOLUTIONS. Lf a corporation executes this Lease as a Ten Tenant shall promptly furnish Landlord certified corporate resolutions attesting to the 33 0 e authority of the officers to execute this Lease on behalf of such corporation. 13.15 .-DELAYING CAUSES. If Landlord or Tenant is delayed in the performance of ar of its obligations under this Lease because of acts of the other ~arty, acts of God or the elements, war, riot, lockout, labor dispute, shortages of labor or materials, delays in transportation, or any other causes beyond the reasonable control of Landlord (financial inability excepted), then such performance shall be excused for the period of the delay and the period for such performance shall be extended for a period equivalent to the period of such delay, except that the foregoing shall in no way affect Tenant's obligation to pay Rent the length of the term of this Lease. 13.16 SUBTENANCIES. The voluntary or other surrender of this Lease by Tenant or a cancellation of this Lease shall not without Landlord's prior written consent result in a mer but shall, at Landlord's option, terminate all existing subtenancies or operate as an assignm to Landlord of all of Tenant's interest in such subtenancies. IN WITNESS WHEREOF, Landlord and Tenant have executed or caused to be executed t Lease as of the date fust written above. LANDLORD: THE BOARD OF ADMINISTRATION as trustee for the POLICE AND FIRE DEPARTMENT RETIREMENT FUND By: Edward F. Overton, Secretary THE BOARD OF ADMINISTRATION as trustee for the FEDERATED CITY EMPLOYEES RETIREMENT FUND By: Edward F. Overton, Secretary TENANT: Its: Mayor By: h!Su Its: City Clerk ALETHA L. KAUTENKRANZ 34 e 0 . EXHIBIT "A" SHOPPING CENTER PLAN 7 f PLAZA PASEO REAL 35 0 0 - EXHIBIT "Bl' LOCATION OF THE PREMISES FUTURE POST OFFIC \ f .PLAZA PASEO REAL 36 9 EXHIBIT "C" TENANT IMPROVEMENTS 1. Construction of the Premises. Landlord shall complete, at its own expense, the work designated herein as "Landlord's Work." All other work of any characte whether performed by Landlord or Tenant, shall be at Tenant's sole cost and expense, including without limitation, the work designated below as Tenant's Work. All work to be performed by either party (a) shall be done in accordance with plans and specifications to 1 approved by Landlord and in accordance with all applicable building codes and regulations governing said construction and (b) shall become the property of Landlord and upon installation; provided, however, installation by Tenant of Tenant's furniture, fixtures and equipment used solely for its business operations and its benefit shall be and remain the property of Tenant. of the Lease, Tenant shall have prepared by a licensed architect plans and specifications f Tenant's Work. Copy of plan attached. 3. Landlord's Optional Work. Landlord shall perform for Tenant all such work as described in Article I. below, and Tenant shall perfom the work as describe Article II below. Any changes in the work described in this Exhibit "C" or the approved plans and specifications required by any governmental authority shall be at Landlord's sole cost and expense. business in the Premises, upon receipt of notice from Landlord, Tenant may enter the Premises to perform Tenant's Work; provided, however, such activity on the part of Tena shall be done only in such manner so as not to interfere with Landlord's construction and Landlord shall not be liable to Tenant for damages to or loss of such furniture, fmtures 01 equipment. Tenant's indemnification of Landlord as set forth in the Lease shall apply to i activities of Tenant, its agents, employees, subcontractors and invitees with respect to the Premises and the Shopping Center during the construction period as herein described. 2. Plans and Specifications. At Landlord's expense, upon execut 4. Early Entry. In order to expedite the commencement of Tenant's that Tenant's business will be r as possible. If required to do so ' I. LANDLORD'S WORK. A. STRUCTURE. 1. Frame, etc.: The building may be of steel frame, reinfor concrete masonry block or wood studs as bearing wall or any combination thereof with construction designed in accordance with governing building codes. such other material or materials as selected by Imdlord's architect or agent. shall be no less than nine feet-and shall otherwise be governed by structural design. 2. Exterior Walls: The exterior walls shall be of masonry 3. Ceiling Heights: Clear height between floor slab and ce 4. Floor Construction: Floors shall be concrete slab on gr 5. Roof: The roof shall be composition built up, tile or as 37 e e otherwise specified by Landlords architect or agent. premises shall be of wood or metal stud covered with plaster board or plywood or masonry walls. Fie walls between leased premises shall be as required by code. Toilet room walls shall be carried to finished ceiling. 6. Demising Partitions: Demising partitions between leased 7. Exits: Exits shall be in accordance with applicable codes. 8. Dimensions; Frontage Dimension: Interior stores shall be measured from center line to center line of demising walls. Exterior stores shall be rneasur from center line of demising walls to outside face of exterior walls. Depth shall be measux from outside face of exterior walls. hollow metal construction; interior door frames shall be wood construction, or as otherwise specified by Landlord's architect or agent. 10. Doors: Interior doors shall be wood, hollow core. Exterior service doors shall be hollow metal. 9. Door Frames: E3terior rear service door frames shall be 11. Parapets, etc.: Landlord reserves the right to provide a 12' 1. Ceilings: Suspended acoustical tile ceiling. 2. Walls: All walls shall be plaster board, plywood or mason 3. Sprinkler System: A fire sprinkler system based on a neutral strip between stores, centered on the line defrning lease property. B. INTERIOR FINISHES. painted and ready for Tenant's decor. standard grid and to code for the attached plan. C. SANITARY FACILITIES. 1. Two (2) public restrooms and one (1) employee restroom E attached plan. D. UTILITIES. 1. Water and Sewer: Landlord will furnish water and sewe service as required for attached plan. 2. Electricity: Landlord will furnish electrical service to Te1 space to provide improvements per the attached plan. 3. WAC: Landlord will furnish Tenant with air conditionir the rate of one ton for every 400 square feet of ground floor space. HVAC distribution : meet requirements of attached plan. II. ADDITIONAL LANDLORD'S WORK. and electrical wiring and telephone conduit for Tenant. including fire corridor if required except as set forth in Section I.A.6 above. one hour fire ceilings in fire comdor if required. A. ELECTRICAL FIXTURES AND EQUIPMENT: All electric fi . B. WALLS: All interior partitions and curtain walls within the Prem C. COVES AND CEILINGS: All special coves and ceilings, includ D. F'LOOR COVERINGS: All floor coverings. E. COFFEE BAR: Per attached plan. F. SEWER: All sewer service charges or privilege fees shall be pai G. PERMITS: All required permits for construction of attached ph H. WATER: All water meter fees, meter hook up fees or privilege : Landlord. 38 e a shall be paid by Landlord. of the Premises without the prior written approval of Landlord. governmental code or ordinance not covered herein, including but not limited to frre exits a corridors. (designated as “Shopping Center Sign Contractor”), Tenant must follow the sign criteria as adopted from time to time by Landlord. additional Tenant’s air conditioning and equipment requirement to be installed by Landlord Landlord’s expense. Electrical run for Tenant sign to be installed by Landlord at Landlord expense. I. ROOF: Tenant’s and/or Tenant’s contractor shall not penetrate the rol J. OTHER: Any other work required by Tenant or required by K. TENANT’S SIGN: As per Landlord’s architect or sign contractor L. ROOF platform, roof opening and/or roof equipment screens for M. DESIGN and construction of Tenant’s storefront. IIX. TENANT RESPONSIBILITY service in the Premises from telephone room or panel. Tenant shall be responsible for making all arrangements for telephone service to the Premises. A. TELEPHONE: All conduit, wire and installation charges for teleph B. ELECTRIC: Tenant to apply for meter and pay for service. C. FURNITURE AND FIXTURES: All store fixtures, cases, wood paneling, graphics, cornices, platforms, etc. D. SHOW WINDOW BACKGROUND, FLOORS, ETC.: All show windows, finish floors, show window backgrounds, show window lighting fixtures, and sh window doors. E. ALARM SYSTEMS, ETC.: All alarm systems or other protective devices for fire or theft. F. Approval of any roof-installed equipment must be received in wr from Landlord, and Landlords roofer shall make final installation around all projections i roof to insure overall roof guarantee. ANY IMPROVEMENTS DONE BY TENANT SHALL MEET ALL GOVERNMENTAL CODES AND REQUIREMENTS AND BE COMPLETED BY LICENSED AND INSURED CONTRACTORS AND TRADESMEN OR THE CITY’S C FORCES. .. 39 a a EXHIBIT "D" SIGN CRITERIA The purpose of the attached criteria is to establish sign standards necessary to balance maximum tenant identification within an overall harmony of design for the project. The criteria has been designed to give tenants flexibility in personalizing their own.identity and to allow for creativity in sign design. However, since deviations from the criteria would be an injustice to all other tenants who comply, conformance to the criteria will be strictly enforced. In the interest of the center, any installed non-conforming or unapproved signs shall be brought into conformance at the expense of the tenant. A. GENERAL REQUIREMENTS 1. Each tenant shall submit or cause to be submitted to the Owner for approval before fabrication at least two copies of detailed drawings indicating the location, size, layout, design and color of the proposed signs, including all lettering and/or graphics. 2. All signs shall be revicwed by the Owner and his designated Sign Contractor for conformance with this criteria and overall design. quality. Approval or disapproval of sign submittal based on aesthetics of a design shall remain the sole right of the Owner. Owner shall provide tenant with written approval .of tenant's signage for tenant to submit to the City of Carlsbad for tenant's sign permit. 3. Prior to installation all permits for signs and their installation required by the City of Carlsbad shall be obtained by the tenant or tenant's representative. This sign criteria is to be more restrictive than the City of Carlsbad Sign Ordinance (21.18.20 C.M.C.). Conformance to this criteria does not excuse compliance with all applicable City of Carlsbad Ordinances and standards. 4. Tenant shall be responsible for the fulfillment of all requirements and specifications. 5. All signs shall be constructed and installed at tenant's expense. B. GENERAL SPECIFICATIONS 1. Tenant shall be responsible for the installation and maintenance of. all signs. 2. Wording of signs shall not include the product sold except as part of the tenant name or insignia. Any tenant lo'gos or insignias shall be considered part of the maximum sign areas under Section C. Sign Types. '3, Tenant's sign contractor shall repair any damage to any-work caused by his actions. Incomplete repairs become the responsibility of the tenant. 4. No temporary, animated, flashing, audible, off-premise or vehicle signs are permitted. 5. No exposed lamps or tubing will be permitted.' 6. No exposed raceways, crossover, conduits. conductors, transformers, etc.. will be permitted. 7. Tenant's contractor shall completely install and connect sign display and primary wiring at sign location stipulated by the Owner. All signs are to be connected to an assigned J-box 40 . PASEO REAL 0 SIGN CRITERIA 0 PAGE' 2 provided by the Owner, which is connected and controlled at the Owner's house panel for uniform control of hours of illumination. 8. All penetrations of exterior .fascia are to be sealed watertight, in color and finish to match existing exterior. 9. Internal illumination for channel letters to be 30 mili-amp neon installation, with a low glare background color, labeled in accordance with the "National Board of Fire Underwriters Specifications. " 10. Internal illumination of ."Howensigns" (Type A, B, C, 6: E Signs) to be V.H.O. "Daylite" fluorescent tubes. For all signs along Alga Road, El Camino Real and Dove Lane except Type E signs on the rear elevation of Buildings A and B which shall be non-illuminated illumination will consist of H.O. "Cool White" fluorescent tubes for reduced illumination and glare. 11. No labels or other identification will be permitted on the exposed surface of the sign except those required by local ordinances. 12. The tenant shall be fully responsible for the operations of his sign contractor and shall indemnify, defend and hold harmless the Owner and his agents from damages or liabilities resulting from his contractor's work. I 13. Registered trademarks, herein referred to as 'Registered Corporate Identity", pertains to corporate logos and logotypes that have been registered and are on file with the UNITED STATES PATENT AND TRADEMARK OFFICE in Washington D.C. C. SIGN TYPES 1 . MONUMENT SIGH " Sian Typ- Single face low-level sign wall at 'corner of Alga Road and El Camino Real as shown on Page 1 of 6. The decorative- treated wall will tie-in with the architecture of the project buildings. The wall will incorporate three (3) internally illuminated tenant sign panels. Sign panels will be fabricated from moulded fiberglass to resemble ceramic tile. These "tile" backgrounds will be opaque, with only the respective sign copy to be halo illuminated around semi-opaque colored letters. Registered corporate identity logotypes only will be permitted on these signs, or if tenant does not have such a logotype, tenant must choose from the "Approved Letterstyles" shown on page 3 of 6. Semi-opaque letter color shall be Rohm & Haas. Red Plex P2203 unless tenant's registered corporate identity includes a color specification, in which case such specification shall be allowed. SApn-TvDe B; Single face, low-level sign wall at both -sides of the main entrance at Alga Road and at the southwest corner of El Camino Real and Dove Lane as shown on Page 1 of 6. The decorative-treated walls will tie-in with the architecture of the project buildings. Each sign will incorporate three (.3) 'internally illuminated tenant sign panels as shown. Sign panels to be fabricated from moulded fiberglass to resemble ceramic tile. These "tile' backgrounds will be opaque, with copy halo illuminated around semi-opaque colored letters . Registered corporate identity logotypes only will be permitted on these signs, or if tenant does not have such a logotype, tenant must choose from the "Approved Letterstyles" shown on page 3 of 6. Semi-opaque letter color shall be Rohm & Kaas. Red Plex 82283 unless tenant's registered corporate identity includes a color specification, in which case such specification shall be allowed. Siqn Type 0-1: Single - faced, low-level directional sign, . 41 PLAZA PASEO REAL PAGE 3 SIGN CRIT~ 0 placed in center ,island Of secondary entrance off Alga Road as shown on Page 6 of 6. Three (3) equal size panels with typical identification for each as shown on Page 2 of 6. These panels to be internally illuminated as per item B.10 above, 2.: .".. QI.EES-TX~!4&~GX? " Sign Type. C: Single face, low level directional signs. Internally illuminated individual tenant sign panels with directional arrows. Typical letterstyle and colors for all sign panels as shown on Page 2 of 6. Located where indicated on Page 6 of 6. Sisn TvPe C-1: Single face, exterior illuminated, surface- mounted directory as shown on Page 2 of 6. Removable plaques with vinyl die cut graphics. Located at pedestrian plazas as shown on Page 6 of 6. 3. TENANT BUILDING SI-ENS !3_ign--Tvpe Q: Internally illuminated individual pan channel letters for "in-line" tenants with thirty- six (36) feet or more of shop lineal frontage as shown on Page 3 of 6. Letter,s will have translucent Plexiglas faces for direct illumination. Maximum letter height - 16". Maximum sign length not to exceed 60% of respective shop lineal frontage. No stacking shall be allowed. See Page 6 of 6 for locations. Siqn Tyee D-1: Internally illuminated individual pan channel letters for tower parapet locations and areas with at least five (5) feet of blank vertical fascia area over the highest point of an awning or surface break. See Page 6 of 6 for locations. A maximum letter height of (22)" will be allowed while maintaining a minimum of (2) feet of clearance, to either side, between any corner, angle, obstruction, or change in the flat wall surface and a minimum of one (1) foot from the bottom of the sign to the top of an awning or surface break. Stacked copy (2 lines) may be permitted at these locations if both lines of copy do not exceed 3'0" in total height including a six inch (6") minimum space between lines. Type D and Dl signs will have (5)'' deep anodized bronze returns (Dupont 42863-D) and (3/4") bronze trim cap edges. Letterstyles for signs must be selected from "Approved Letterstyles" list as shown on page 3 of 6, unless tenant graphics are part of a registe.red corporate identity program. Letter color shall be Rohm and Haas Red Plex C2283 unless tenant's registered corporate ' identity includes a color specification, in which case such specification shall be allowed.. Siqn Type E: Single face, internally illuminated cabinet sign for "in-line" tenants with less than thirty-six (36) feet of shop lineal frontage. Surface-mounted to building fascia at closest proximity to respective shop entrance as shown on Page 6 of 6. Sign is fabricated from fiberglass with a dimensional, moulded border and simulated ceramic tile background. Sign background is opaque with illuminated outline around semi-opaque letters. Typical color of letters: Red #2283, unless part of registered Corporate identity program. Letterstyle for signs must be selected from the "Approved Letterstyles" shown on page 3 of 6, unless tenant graphics are part of a registered corporate identity program. Sign Size: 6" deep X 22" high X 12'0" long. Tenants in buildings A and B on Alga Road will be allowed (1) additional sign type "E" on the rear elevation facing Alga Road. This sign to be typical in all ways to Sign Type "E" on the storefront elevation except that such signs shall not be illuminated. Siqn Type F: Only double face sandblasted wood arcade sign and attachment bracket, as shown on Page 3 of 6. Placed perpendicular to storefront of "in -linen tenants, at close 42 * PLAZA PASE*AL SIGN CRITER Page 4 0 proximity to respective shop entrance. Generic descriptions of service provided or business name only, to appear on this sign, in Letterstyle: Belwe Bold Condensed, as shown on Page 3 of 6. Colors used on this sign are open to tenant, subject to Landlord approval. " sign -.- Type GL Non-illuminated letters on awnings for rear of upper level tenant spaces in. buildings C Q D, as shown on Page 5 of 6. Letterstyle shall be Belwe Medium with twelve inches (12") clear on each end of copy. Letter color: white. Generic description of service provided 02 business name only to appear, on awning signs. Marks3 Buildinq: Internally illuminated channel letters identifying the name of market in size, area, and location as shown on Page 4 of 6. In addition, four (4) Type E signs identifying services prqvided by the market in locations shown on Page 4' of 6. Letterstyle and color of market tenant identification signs per tenant's registered corporate identity program. """ Theater Buildinq; ""."_ (Excludinrr Bujl&ixFL Internally illuminated channel letters identifying the name of the theater in size, area, and' locations as shown on Pages 4 of 6 and 6 of 6. Letterstyle and color of theater identification signs per tenant's registered carparate identity program. Internally illuminated theater marque signs identifying the films presently showing at the theater in Size, area and locations shown on Page 4 of 6 and 6 of 6. The marque signs shall use H.O. (Cool White) fluorescent tubes for reduced illumination and glare. " Pad Buildinus A &a Each buildlng shall be allowed one (1) Type D-1 sign facing El Camino Real and two (2) Type D signs on two (2) other elevations as shown on 'Page 6 of 6.' Letterstyle, lettersize, color and other specifications to conform to same restrictions as per Types D and D-1 om this page and on Page 3 of 6. Maximum copy length shall not exceed twenty four (24) feet. 4. ALL OTHER SIGNS: _._."." Traffic Sians: As shown on Page 2 of 5 at various locations as necessary or per code. Addressins: Each building within the project will be addressed by means of ( 12) It high numerals, fabricated from aluminum and painted Kawneer #26 Light Bronze. One (1) Set of numerals for each elevation which faces onto a public street or parking lot, to be placed onto building fascia. Typical letterstyle: HELVETICA MEDIUM. SIGN CONTRACTOR: JOHN HOWENSTINE, INC. 3188 HJn Airway Avenue Costa Mesa, CA 92626 714/557-4064 8/30/89 43 1 e cn z CJ v) t- z Lu 5 3 z 0 'z E 4 U (3 0 E a z a v) 111 z z 4 A a L I I n A-," 7 i - 13 f' iL 2 e .' \-y q 1- Is 0 - c I 0 r I 5 l- .I 111 rx 4' 3 $ cn a N U E 44 )r 0 cn z 0 tn 4 4 z 0 i- 0 w K - - - n z 4 K a 0 CT 0. z (3 cn I - - &t t p 4 r?i &\ i 54 1- L' "\>. 3 -,- - * 6.- f y <- r;, b. 3+ 3' h rc. i v. "(. $3- a <- L ea: hd iE 3- >f g:: k e ;$ 5.J i fJ sp $- (4- 6;t tj-& 1 < 1 i" 1"' ;39:- $.Y -1 ij t & :: . & i; - ki) IB i: : ig I:; 1 ~ ;j ! >. K E W 0 2 d U v) c W 0 u 5 - 2 0 w I- 2 3 0 H J -I st si La 05 Zl !2: zs r ci b c I V rl \ 2 s jI -I 11 4 !1 $i! z 0 I d Q a ;:I 1. :x s "Et ,,e Pya< @j ;-I$ $* !L 1- 1% 3 its ti I:,. 'tt \ .-.- [I ;. 1: lPZf Am L U ;sf 3 4 . 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I Y) 0 n - c I i I- 2 z w l- v) a i z 2 a 48 e 4D .. 49 * 0 EXHIBIT "E" RULES & REGULATIONS Landlord hereby establishes the following rules and regulations for the safety care and cleanliness of (i) the store areas (hereinafter referred to as the "demised premises": of all tenants of the Shopping Center (hereinafter referred to as the "tenant"), (ii) the Corn Area; and (iii) the Shopping Center in general, and for the preservation of good order: A. FOR THE COMMON AREAS 1. All floor areas of the demised premises (including vestibules, entranc' and air returns), doors, fixtures, windows, and plate glass shall be in a clean, safe and goo( condition. 2. Tenant shall provide for removal of all construction debris, packing : delivery materials during tenant improver- -1s and fmturization. During normal course of business, all trash, refuse, and waste mart.. .s shall be stored in adequate containers and regularly removed from the demised premises. These containers shall not be visible to the general public and shall not constitute a health or fire hazard, or a nuisance to any other tenant. In the event that any tenant shall fail to remedy such a health or fire hazard, or nuisance, within five (5) days after written notice by Landlord, Landlord may remedy and, correct such health or fire hazard or nuisance at the expense of the tenant involved. 3. No portion of the demised premises shall be used for lodging purpo! 4. The sidewalks, entrances, passages, courts, stairways, corridors and 1 of the Shopping Center shall not be obstructed or used for any purpose other than ingress egress. The roof of the demised premises shall not be used for the storage of any propert' and access to roof area shall be strictly limited to Landlord's personnel only. No tenant a no employees of any tenant shall go upon the roof of the Building without the prior writt consent of Landlord. 5. No public telephone, newsstand, shoeshine stand, refreshment, vend or other coin operated machine shall be installed or placed on the sidewalk or walkway a adjacent to the demised premises or on the Common Areas without Landlord's prior writt approval in each instance. thereof, for conducting therein a second-hand store, auction, distress or fire sale or bankr sale, or "going-out-of-business" sale or "lost our lease" sale, without Landlord's prior wri consent. 7. No portion of the demised premises shall be used for the storage o merchandise, materials or other properties, other than those reasonably necessary for the operation of tenant's business. Landlord may, from time to time, inspect the demised premises to insure compliance with the foregoing provisions. 8. Tenant shall not store, use or permit to be used in, or about the Premises any toxic or hazardous substances including, but not limited to, radioactive materials, asbestos or polychlorinated biphenyls. Tenant shall comply, at its expense, w federal, state and local statutes or regulations concerning environmental conditions, emi: pollutants and controls. 9. Tenant shall not black out or otherwise obstruct the windows of t? demised premises without Landlord's prior written consent. Tenant shall not place or s1 to be placed or maintained on the roof or any exterior door, wall or window (or within inches of any windows) of the demised premises any sign, awning or canopy or adverti 6. No person or persons shall use the demised premises, or any part 50 0 0 matter on the glass of any window or door of the demised premises without Landlords prio written consent. 10. No awnings or other projections shall be attached to the outside walls , the Shopping Center Buildings without the prior written consent of Landlord. No hanging planters, television sets or other objects shall be attached to or suspended from ceilings without the prior written consent of Landlord. No curtains, drapes, blinds, shades or scree1 shall be attached to or hung in, or used in connection with, any window or door of the Shopping Center Buildings without the prior written consent of Landlord. 11. No signs, advertisements or notices shall be exhibited, painted or affixed by any tenant on any part of, or so as to be seen from the outside of, the demised premises or the Shopping Center Buildings without the prior written consent of Landlord. the event of the violation of the foregoing by any tenant, Landlord may remove same with any liability, and may charge the expense incurred in such removal to the tenant violating rule. 12. The wash room partitions, mirrors, wash basins and other plumbing fixtures shall not be used for any purpose other than those for which they were constructel and no sweepings, rubbish, rags or other substances shall be thrown therein. All costs incurred to correct damage resulting from any misuse of the fmtures by a tenant or such tenant’s servants, employees, agents, visitors or licensees shall be promptly reimbursed to Landlord by such tenant upon demand. 13. No tenant shall mark, paint, drill into, or in any way deface any pax the demised premises or the Shopping Center Buildings without the prior written consent Landlord. No boring, cutting or stringing of wires shall be permitted except with the pric written consent of Landlord and as Landlord may direct. 14. No tenant shall cause or permit any unusual or objectionable odors escape from the demised premises. 15. No tenant shall make, or permit to be made any unseernly or disturl noises, sounds or vibrations or disturb or interfere with occupants of this or neighboring buildings or premises or those having business with them, whether by the use of any mu: instrument, radio, phonograph, unusual noise, or in any other way. 16. No tenant shall throw or permit to be thrown anythmg out of doors down the passageways. 17. If a tenant provides its customers with the use of shopping carts an baskets, such tenant shall be responsible for causing said carts and/or baskets to be storec only in areas designated by Landlord. If such tenant fails to routinely collect and store I carts as necessary, Landlord may assume the responsibility of same and my bill the ten; involved on an estimated monthly basis for such service. premises, or bring or keep anydung therein, which shall in any way increase the rate of insurance on the Shopping Center Buildings or on the property kept therein, or obstruct interfere with the rights of other tenants, or in any way injure or annoy them, or conflicl the regulations of the Fire Department or the fire laws, or with any insurance policy up( Shopping Center Buildings or any part thereof, or with any rules and ordinances establj by the local health authority or other governmental authority. 19. No additional locks or bolts of any kind shall be placed upon any doors or windows by any tenant, nor shall any changes be made in existing locks or mechanisms thereof without prior written consent of Landlord. 18. No tenant shall do or permit anything to be done to the demised 20. Landlord shall have the right to prohibit any advertising by any tt 51 c 0 a which, in Landlords opinion, tends to impair the reputation of the Shopping Center and up written notice from Landlord any tenant shall refrain from or discontinue such advertising. 21. All equipment of any electrical or mechanical nature shall be placed tenants in their premises in settings approved by Landlord, to absorb or prevent any vibrati noise or annoyance. 22. No air conditioning unit or any other similar apparatus shall be instal or used by any tenant without the prior written consent of Landlord. 23. Landlord will direct electricians as to where and how telephone or telegraph wires are to be introduced. No boring or cutting for wires or stringing of wire r be allowed without the prior written consent of Landlord. The location of telephones, call boxes and other equipment affixed to the premises shall be subject to the approval of Landlord. B. FOR THE COMMON AREA 1. All tenants and their authorized representatives and invitees shall us( any roadway or walkway only for ingress and egress to and from the stores in the Shoppil Center. Use of the Common Area shall be in an orderly manner in accordance with directional or other signs or guides. Roadways shall not be used at a speed in excess of 1 (10) miles per hour and shall not be used for parking or stopping, except for the immedia loading or unloading of passengers. Walkways shall be used only for pedestrian travel. 2. Tenants and their authorized representatives and invitees shall not u the parking areas for anytlung but parking motor vehicles. All motor vehicles shall be pe in an orderly manner within the painted lines defining the individual parking places. D~I peak periods of business activity, Landlord may impose any and all controls Landlord dec necessary to operate the parking lot, including but not limited to the length of time for parking use. 3. No person shall use any utility area or truck loading area reserved use in conducting business. except for the specific purpose for which permission to use t areas has been given. 4. No employee shall use any area for motor vehicle parking except t area specifically designated for employee parking. Employees may only utilize said em1 parking during the employee’s scheduled hours. No tenant shall designate an area for employee parking except the area designated in writing by Landlord. 5. Without the prior written consent of Landlord, Tenant shall not in7 cateringlfood vending vehicles in or about the Shopping Center Buildings or the parking of the Shopping Center. 6. Without the prior written consent of Landlord, no person shall use of the Common Area for: (a) Vending, peddling or soliciting orders for sale or distributic any merchandise, device, service, periodical, book, pamphlet, or other matter; 0) Exhibiting any non-professional sign, placard, banner, notic other written material; (c) Distributing any circular, booklet, handbill, placard or othe material; (a) Soliciting membership in any organization, group, or assa or soliciting contributions for any purposes; (e) Parading, patrolling, picketing, demonstrating, or engaging conduct that might interfere with the use of the Common Area or be detrimental to an) the business establishments in the Shopping Center; 52 e e (f) Using the Common Area for any purpose when none of the (g) Discarding any paper, glass, or extraneous matter of any kind, (h) Except for normal and customary sound devices for Tenant’s business establishments in the Shopping Center is open for business; except in designated receptacIes; drive-through facilities, using sound-making device that is grossly annoying or unpleasant tc the general public; or material or other improvement or property within the Shopping Center. The above listing of specific prohibitions is not intended to be exclusive, but intended to indicate the manner in which the right to use the Common Area solely as a me, of access and convenience in shopping at the business establishments in the Shopping Cent is limited and controlled by Landlord. day of , 199-. (i) Damaging any sign, light standard, or furture, landscaping Tenant acknowledges receipt of these rules and regulations as of this TENANT: BY: 53 e e EXHIBIT "F TENANT'S OFFSET AND ESTOPPEL CERTIFICATE TO: Re: Lease dated , by and between ; as Landlord, and , as Tenant, covering premises commonly known as , in the City of , county of , State of Gentlemen: The undersigned Tenant certifies and represents to , its attorneys and representatives, in respect to the above-described lease (the "Lease") as follo 1. Tenant is in full and complete possession of the premises covered b! the Lease (the "Premises"), which consist of approximately square feet. Tenant accepts and hereby ratifies the method of computation and determination of the square footage of the Premises provided in the Lease and waives any right it may have to disclai or dispute such computation and determination. 2. All space and improvements covered by the Lease have been compb and furnished, in accordance with the provisions of the Lease and to the satisfaction of the Tenant, and Tenant has fully accepted the Premises. 3. The Landlord named in the Lease, and its successor in interest, if a~ (collectively called "Landlord"); has satisfied all commitments, arrangements or understandings made to induce Tenant to enter into the Lease, and Landlord is not in any respect in default in the performance of the terms and provisions of the Lease, nor is ther now any fact or condition which with notice or lapse of time, or both, would become suc default. 4. Tenant is not in any respect in default under the terms and provisio the Lease, nor is there any fact or condition which with notice, the passage of time, or bc would ripen into a default. 5. Tenant has not assigned, transferred or hypothecated its interest unr .. the Lease, except as follows: 6. The Lease, a copy of which is attached hereto, with each page of t Lease initialed by the undersigned, is for a total term of L) years commencing , and ending , has not been in any r modified, altered or amended, and contains the entire agreement between Landlord and Tenant, except as follows: (List and attach initialed copies of all amendments and modifications or ' "None.") 54 e e 7. There are no offsets or credits against rentals payable under the Lease and neither Tenant nor any predecessor of Tenant has made any payment to Landlord as a security deposit or advance or prepaid rent, except as follows: ~- 8. Tenant (a) does not have any right to renew or extend the term of the Lease, (b) does not have any option or preferential right to purchase all or any part of the Premises or all or any part of the property of which the Premises are a part, and (c) does nc have any right, title or interest with respect to the Premises other than as Tenant under the Lease. There are no understandings, contracts, agreements or commitments of any kind whatsoever in respect of the Lease or the Premises, except as expressly provided in the Lea or in any amendment or supplement to the Lease set forth in paragraph 6 above. 9. As of the date hereof, the minimum annual rent under the Lease is DOLLARS ($ ), subject to escalation in accordance with the terms and provisions of the Lease, and said amount is being paid by Tenant in monthly payments of DOLLARS ($ ). Tenant is current in the payment of rent to Landlord. 10. Tenant waives any and all claims it might have which arise out of ax acts of omissions of Landlord or Landlord's predecessors arising prior to the date of this Certificate, including, without limitation, the charging, computation and allocation of all cc and expenses which are reimbursable by Tenant, and hereby certifies that such costs .and expenses have been properly charged, computed and allocated. 11. The Lease is in full force and effect, and Tenant has no defenses, setoffs or counterclaims against Landlord arising out of the Lease or the operation or maintenance of the property of which the Premises are a part or in any way relating therei arising out of any other transaction between Tenant and Landlord. 12. Tenant has not filed nor been .the subject of a filing of a petition ur the federal bankruptcy law or any insolvency laws or any laws for composition of indebtedness or for the reorganization of debtors, nor has Tenant made a general assignm for the benefit of creditors, and Tenant is not insolvent in any sense. 13. Tenant has received no notice of a prior sale, transfer, assignment, hypothecation or pledge of the Lease or of the rents secured therein. 55 a a 14. Tenant will not terminate its Lease for any default on the part of the Landlord without first giving notice to: specifying the default in reasonable detail, and affording a reasonable opportunity to make performance for the Landlord. DATED: 9 19- TENANT BY Its: 56 i .- 0 e ADDENDUM ADDENDUM TO THAT CERTAIN PLAZA PASEO REAL SHOPPING CENTER LEAS: BY AND BETWEEN THE BOARD OF ADMINISTRATION, AS THE TRUSTEE FOR THE POLICE AND FIRE DEPARTMENT RETIREMENT FUND, AND THE BOARD 0 ADMINISTRATION, AS TRUSTEE, FEDERATED CITY EMPLOYEES RETIREMENT FUND, AS LANDLORD, AND CITY OF CARLSBAD, AS TENANT, FOR THE PROPERTY LOCATED AT 6949 EL CAMINO REAL, SUITE 200, CITY OF CARLSBP COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. Section 14. Base Rent Base Rent in Sections 2.8 and 2.9 shall commence upon Tenant's opening fi business. All corresponding dates shall be adjusted according to the date th Tenant opens for business. Rent Schedule January 1, 1994 - December 3 1, 1995 $4,509.00 per month, grc January 1, 1996 - December 3 1, 1997 $5,000.00 per month, grc January 1, 1998 - December 3 1, 1998 $5,500.00 per month, grc TENANT SHALL BE ABLE TO CANCEL THIS LEASE ANY TIME PRIOR TO THE EXPIRATION OF THIS LEASE UPON THE OPES OF THE NEW CITY LIBRARY ON THE PROPERTY ADJACENT I PLAZA PASEO REAL SHOPPING CENTER WITHOUT ANY FURTHER LIABILITY BY GIVING LANDLORD NINETY (90) DA7 WRITTEN NOTICE. Section 15. Signas Tenant shall place a permanent sign above the front door of the premises Landlord's sign criteria attached as Exhibit "D". In addition, Tenant shall diligently pursue with the City of Carlsbad, signage above the blue awnin facing (east) the Vons' parking lot and a monument sign at the NWC of C and El Camino Real. Said signage shall be vacated at the expiration of tf tenancy with the sign rights remaining with the existing premises. All sit costs shall be at, the expense of Landlord. Section 16. Moving Allowance Landlord shall contribute a maximum of ten thousand dollars ($lO,OOO.oC tenant for the specific costs of relocating the La Costa Branch Library to leased premises. 57 c a- a * "CONSULT YOUR ATTORNEY/ADVISOR - This document has been prepared for appro1 by your attorney. No representation or recommendation is made by CB COMMERCIAL REAL ESTATE GROUP, INC, of the agents or employees as to the legal sufficiency, legal effect, or tax consequences of this document or the transaction to which it relates. These a questions for your attorney. In any real estate transaction it is recommended that you consult with a professional, such a civil engineer, industrial hygienist or other person with experience in evaluation the condition of the property, including the possi le resence of asbestos, hazardous materials underground storage tanks. (fl Landlords Initials Tenant's 'tials 58 .. 0 ,- - Table of Contents ARTICLE I LEASE OF PREMISES 1.1 Premises 1.2 Description of Premises 1.3 Declaration ARTICLE II BASIC LEASE PROVISIONS 2.1 Project Name 2.2 Tenant's Trade Name 2.3 Premises Address 2.4 Leasable Area of Premises 2.5 Leasable Area of the Shopping Center Buildings- 2.6 Percentage Rent Rate 2.7 Initial Monthly Impound 2.8 Initial Fixed Minimum Rent (Annual) 2.9 Initial Fixed Minimum Rent (Monthly) 2.10 Basic Rent Adjustment 2.11 Lease Term 2.12 Target Date for Completion of Landlord ' s Work 2.13 Target Commencement Date 2.14 Security Deposit 2.15 Use of Premises 2.16 Initial Contribution to Promotion Fund 2.17 Monthly Contribution to Promotional Fund 2.18 Addresses for Payment and Notices 2.19 Brokers 2.20 Lease Addendum 2.21 First Installment of Rent 2.22 Exhibits 3.1 Term ARTICLE III TERM AND RENT 3.1.1 Commencement Date 3.1.2 Notice to Tenant 3.2 Payment of Rent 3.3 Rent 3.3.1 Fixed Minimum Rent 3.3.2 Percentage Rent 3.3.3 Additional Rent 3.3.4 Adjustment of Fixed Minimum Rent 3.3.5 Gross Receipts and Records 3.3.6 Exclusions 3.3.7 Books and Records 3.3.8 Statements 3.3.9 Audit Rights 3.4 Security Deposit 3.5 Utilities 3.6 Common Area Expense 3.6.1 Definition of Common Area i Pae " L L 1 c 1 - c- a I 0 3.6.2 Common Area Expenses 3.6.3 Proration of Common Area Expenses 3.7 Advertising and Promotion Fund 3.7.1 Monthly Contribution 3.7.2 Initial Contribution 3.7.3 Committee ARTICLE Ev CONST.RUCTION OF PREMISES 4.1 Landlord and Tenant Obligations 4.2 Possession 4.3 “Substantial Completion” 4.4 Construction Activities 4.5 Delay in Possession ARTICLE V COVENANTS OF TENANT 5.1 Use of Premises by Tenant 5.1.1 Premises Usage 5.1.2 Negative Covenants 5.1.3 Affirmative Covenants 5.2.1 Acceptance of Premises 5.2.2 Maintenance by Tenant 5.2.3 Maintenance by Landlord 5.2.4 Notice to Landlord 5.2.5 Repairs for Tenant 5.3.1 Alterations 5.3.2 Removal of Alterations by Tenant 5.3.3 Liens 5.3.4 Indemnity 5.4.1 Landlord ’ s Consent 5.4.2 Sign Criteria 5.4.3 Revised Criteria 5.2 Repairs 5.3 Alterations 5.4 Signs, Awnings and Canopies 5.5 . Parking ARTICLE VI CONTROL OF SHOPPING CENTER 6.1 Relocation of Premises 6.2 Parking and Common Area 6.2.1 Maintenance and Use of Common Area 6.2.2 Rules and Regulations 6.2.3 Control of and Changes to Common Area 6.3 Development of Shopping Center by Landlord 6.4 Right of Access 6.4.1 Easement Rights 6.4.2 Access Rights ARTICLE VII TAXES AND ASSESSMENTS 7.1 Real Property Taxes 7.2 Taxes on Rent 7.3 Personal Property Taxes ARTICLE VIII INSURANCE .. 11 10 10 12 12 12 12 13 13 13 13 13 13 12 If 1: 1‘ l! 1( 1( 1( lr 1‘ 1’ 1’ 1’ 1’ 1 1 1 1 1 1 1 1 1 * 1 1 1 A - .- a a . r C’ . 8.1 Insurance to be Maintained by Tenant 8.2 Insurance to be Maintained by Landlord 8.3 Waiver of Subrogation . ARTICLE IX INDEMNIFICATION 9.1 Indemnification by Tenant 9.2 Waiver and Release 10.1 Notice by Tenant 10.2 Damage and Destruction 10.3 Eminent Domain ARTICLE X DAMAGE AND DESTRUCTION; EMINENT DOMAIN 10.3.1 Total Taking 10.3.2 Partial Taking 10.3.3 Effective Date 10.3.4 Rent Adjustment 10.3.5 Award ARTICLE XI ASSIGNMENT AND SUBLETTING 11.1 No Assignment Without Consent 11.2 Notice of Went to Assign 1 1.3 Landlord Response to Request to Assign 11.4 Tenant to Remain Liable 11.5 Other Transfers 11.6 Assignee to Assume All Lease Obligations 1 1.7 Attorneys ’ Fees 12.1 Tenant Default ARTICLE XII LANDLORD AND TENANT DEFAULT 12.1.1 Failure to Pay Rent 12.1.2 Failure to Perform Covenants 12.1.3 Attachment, Bankruptcy, Receivership 12.1.4 Abandonment 12.2 Landlord Remedies 12.2.1 Termination 12.2.2 Continuation After Default 12.2.3 Damages Upon Termination 12.3 . Removal of Persons and Property 12.4 Other Rights 12.5 Computation of Damages 12.6 Late Payment 12.7 Cure of Tenant Default 12.8 Landlord Default ARTICLE XIII MISCELLANEOUS 13.1 Holding Over, Surrender of Premises 1 3.1.1 Surrender 13.1.2 Holding Over 13.1.3 Removal of Alterations 13.2 Estoppel Certificates and Subordination 13.2.1 Priority; Quiet Enjoyment 13.2.2 Estoppel Certificate 13.2.3 Subordination Agreement ... iii 22 23 23 23 23 24 24 24 24 25 25 25 25 25 25 2t 2f 2f 2f 2t 2: 2: 2’ 2’ 2 2 2 2 2 2 2 2 2 2 2 2 n 1 c 1 rll*c *rc a a c‘ 4 q 13.2.4 Notice to Mortgagees 13.2.5 Lease Amendments 13.2.6 Financial Statements 13.2.7 Sale by Landlord 13.2.8 Recordation 13.3 Attorneys ’ Fees 13.4 Notices 13.5 Advertising of Tenant 13.6 Interpretation 13.7 Successors 13.8 Waiver of Default 13.9 No Partnership 13.10 Applicable State Law 1 3.1 1 Broker ’ s Commission 13.12 No Option 13.13 Entire Agreement 13.14 Corporate Resolutions 13.15 Delaying Causes 13.16 Subtenancies EXHIBIT “A” SHOPPING CENTER PLAN EXHIBIT “B” LOCATION OF THE PREMISES EXHIBIT “C“ TENANT IMPROVEMENTS EXHIBIT ’ID“ SIGN CRITERIA EXHIBIT “E’ RULES & REGULATIONS EXHIBIT “F” TENANT’S OFFSET AND ESTOPPEL CERTIFICATE ADDENDUM - iv 31 32 32 32 32 32 32 3; 3; 3: 3: 3: 3: 3 3: 3: 3: 31 31 3 3 3 4 5 5 4 -