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Home My WebLink About1996-01-09; City Council; Resolution 96-9I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 0 RESOLUTION NO. 9 6 - 9 9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN EXTENSION OF THE EXISTING LEASE WITH PALOMAR #46 FOR SUITE Q LOCATED AT 2075 CORTE DEL NOGAL STREET, CARLSBAD, CALIFORNIA WHEREAS, the Clty of Carlsbad, California has determined the need to provide warehouse/storage space for the library; WHEREAS, Community Services Staff has negotiated with the property managh and secured a new three-year lease and a reduction in the rental rate; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlst California as follows: 1. 2. That the above recitations are true and correct. That the new Lease Agreement between the City of Carlsbad and Palorr #46 attached hereto as Exhibit A is hereby approved. That the Mayor is hereby authorized to sign the lease agreement on bet of the City. 3. PASSED, APPROVED AND ADOPTED by the City Council of the City of Carlsbe at its regular meeting held on the 9th day of JANUARY 1996, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None CLAUDEA. LEWIS, Mayor ATTEST: 236.- R L) ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 0 0 Southern California Chapter of the INDUSTRIAL REAL ESTATE LEASE 9 Society of Industrial and Office Realtors,@ Inc. (MULTI-TENANT FACILITY) ARTICLE ONE: BASIC TERMS This Article One contains the Basic Terms of this Lease between the Landlord and Tenant naxr Other Articles, Sections and Paragraphs of the Lease referred to in this Article One explain and definc Terms and are to be read in conjunction with the Basic Terms. Section 1.01. Date of Lease: SEFTENBER 28, 1995 Section 1.02. Landlord (include legal entity]: PALOMAR # 46 Address of Landlord: 54-, Sm #110 CITY OF CARLSWD 2015 WRlE DEL NOGAL, SUITE Q CAFUSBAD, CA 92009 * Section 1.03. Tenant (include legal entity): Address of Tenant: Section 1.04. Property: The Property is part of Landlord's multi-tenant real property developn as P- #46 and described or depicted in Exhibit "A' (the "Project"). The Project includes the land, the buildings a improvements located on the land, and the common areas described in Para raph 4.05(a . The Pro ert PA 93009 street address, approximate square footage and description] APpR0xmTE%y 2 r 060 hABLEFSd LOCATED AT: 2075 KIRTE DEL MXAI.,. SUITE Q CARLSBAD. CA 92009 months beginning on NOVEMBER 1 , Section 1.05. Lease Term: 3 years Section 1.06. Permitted Uses (See Article Five) MUNICIPAL a- ~SJLS- Section 1.07. Tenant's Guarantor: (If none, so state) N/A Section 1.08. Brokers: (See Article Fourteen) (If none, so state) ' or such other date as is specified in this Lease. and ending on ___ CCI'OBER 31. Landlord's Broker: NIA Tenant's Broker: NIA Section 1.09. Commission Payable to Landlord's Broker: (See Article Fourteen) $ -NfL Section 1.10. Scction 1.11. Vehicle Parking Spaces Allocated to Tenant: (See Section 4.05) m Section 1.12. Rent and Other Charges Payable by Tenant: (a] BASE RENT: ONE THOUSAND,^ HUNDRED & FIFTY EWR T+ND N100 DOII~S [$IJ per month for the first month(s) after the Commencement Date, either (i] as Section 3.02, or (ii) -r.F Initial Security Deposit: (See Section 3.03) $1565.00 (ON HAND) - 12 months, as provided in Section 3.01. and shall be incrc first day of the 17 . (If (ii) is completed, then (i) and Section 3.02 are ii Section 1.14. Landlord's Share of Profit on Assignment or Sublease: (See Section 9.05' Section 1.15. Riders: The following Riders are attached to and made a part of this Lease: (If r HUNDRED percent ( 100 %) of the Profit (the "Landlord's Share"). SECTIONS 15, 16, 17, 18,& 19 PER CITY OF m, ALL LEASES ARE m NET WI'IT.,Im AND J I and Office Realtors? Inc. 2 (Multi-Tenant 1 Gross Form) Initial @ @ 1988 Southern California Chapter of the Society of Industrial SO?' - e e ARTICLETWO: LEASETERM Section 2,01, Lease ofmperty For Lease Term. Landlord leases the Property to Tenant and Tenm the Property from Landlord for the Lease Term. The Lease Term is for the period stated in Section 1.05 ab shall begin and end on the dates specified in Section 1.05 above, unless the beginning or end of the Lease changed under any provision of this Lease. The “Commencement Date” shall be the date specified in Sect above for the beginning of the Lease Term, unless advanced or delayed under any provision of this Lease Section 2.02. Delay in Commencement. Landlord shall not be liable to Tenant if Landlord does no possession of the Property to Tenant on the Commencement Date. Landlord’s non-delivery of the Property t on that date shall not affect this Lease or the obligations of Tenant under this Lease except that the Commc Date shall be delayed until Landlord delivers possession of the Property to Tenant and the Lease Term extended for a period equal to the delay in delivery of possession of the Property to Tenant, plus the numbc necessary to end the Lease Term on the last day of a month. If Landlord does not deliver possession of the PI Tenant within sixty (60) days after the Commencement Date, Tenant may elect to cancel this Lease by givin notice to Landlord within ten (10) days after the sixty (60) -day period ends. If Tenant gives such notice, shall be cancelled and neither Landlord nor Tenant shall have any further obligations to the other. If Tenant give such notice, Tenant’s right to cancel the Lease shall expire and the Lease Term shall commence delivery of possession of the Property to Tenant. If delivery of possession of the Property to Tenant is Landlord and Tenant shall, upon such delivery, execute an amendment to this Lease setting forth ti Commencement Date and expiration date of the Lease, Failure to execute such amendment shall not affect 1 Commencement Date and expiration date of the Lease. Section 2.03. Early Occupancy. If Tenant occupies the Property prior to the Commencement Date occupancy of the Property shall be subject to all of the provisions of this Lease. Early occupancy of the Pro1 not advance the expiration date of this Lease. Tenant shall pay Base Rent and all other charges specified in for the early occupancy period. Section 2.04. Holding Over. Tenant shall vacate the Property upon the expiration or earlier term this Leasd. Tenant shall reimburse Landlord for and indemnify Landlord against all damages which Land11 from Tenant’s delay in vacating the Property. If Tenant does not vacate the Property upon the expiration termination of the Lease and Landlord thereafter accepts rent from Tenant, Tenant’s occupancy of the Pro] be a “month-to-month’’ tenancy, subject to all of the terms of this Lease applicable to a month-to-montl except that the Base Rent then in effect shall be increased by twenty-five percent (25%). ARTICLE THREE: BASE RENT Section 3.01. Time and Manner of Payment. Upon execution of this Lease. Tenant shall pay La1 Base Rent in the amount stated in Paragraph 1.12[a) above for the first month of the Lease Term. On the the second month of the Lease Term and each month thereafter, Tenant shall pay Landlord the Base Rent, i without offset, deduction or prior demand. The Base Rent shall be payable at Landlord’s address or at place as Landlord may designate in writing. Section 3.02. Cost of Living Increases. The Base Rent shall be increased on each date [tl Adjustment Date”) stated in Paragraph 1.12(a) above in accordance with the increase in the United States I of Labor, Bureau of Labor Statistics. Consumer Price Index for All Urban Consumers [all items for the gc Statistical Area in which the Property is located on the basis of 1982-1984 = 100) [the “Index”) as folloi (a] The Base Rent [the “Comparison Base Rent”) in effect immediately before each Rental Adjustmen be increased by the percentage that the Index has increased from the date (the “Comparison Date”] payment of the Comparison Base Rent began through the month in which the applicable Rental Adjus occurs. The Base Rent shall not be reduced by reason of such computation. Landlord shall notify Ten, increase by a written statement which shall include the Index for the applicable Comparison Date, the Ir applicable Rental Adjustment Date, the percentage increase between those two Indices, and the new Bas increase in the Base Rent provided for in this Section 3.02 shall be subject to any minimum or maximum provided for in Paragraph i.~?.[a]. Adjustment Date. Landlord’s notice may be given after the applicable Rental Adjustment Date of the ir Tenant shall pay Landlord the accrued rental adjustment for the months elapsed between the effective increase and Landlord‘s notice of such increase within ten (10) days after Landlord’s notice. If th components of the Index are materially changed after the Commencement Date, Landlord shall substitt which is published by the Bureau of Labor Statistics or similar agency and which is most nearly quit Index in effect on the Commencement Date. The substitute index shall be used to calculate the increase Rent unless Tenant objects to such index in writing within fifteen (15) days after receipt of Landlorc Tenant objects, Landlord and Tenant shall submit the selection of the substitute index for binding a accordance with the rules and regulations of the American Arbitration Association at its office cl Property. The costs of arbitration shall be borne equally by Landlord and Tenant. ’ I (b) Tenant shall pay the new Base Rent from the applicable Rental Adjustment Date until the @ 1988 Southern of the Society California of Industrial Chapter 2 hiti & and Office Realtors? Inc. % (Multi-Tenant Gross Form) 0 0 Section 3.03. Security Deposit; Increases. (a) Upon the execution of this Lease, Tenant shall deposit with Landlord a cash Security Deposit ii set forth in Section 1.10 above. Landlord may apply all or part of the Security Deposit to any unpaid charges due from Tenant or to cure any other defaults of Tenant. If Landlord uses any part of the Sect Tenant shall restorehe Security Deposit to its full amount within ten (10) days after Landlord’s wr Tenant’s failure to do so shall be a material default under this Lease. No interest shall be paid on Deposit. Landlord shall not be required to keep the Security Deposit separate from its other accounts relationship is created with respect to the Security Deposit. (b) Each time the Base Rent is increased, Tenant shall deposit additional funds with Landlord increase the Security Deposit to an amount which bears the same relationship to the adjusted Base Renl Security Deposit bore to the initial Base Rent. Section 3.04. Termination: Advance Payments. Upon termination of this Lease under I (Damage or Destruction), Article Eight (Condemnation) or any other termination not resulting from Ter and after Tenant has vacated the Property in the manner required by this Lease, Landlord shall refun Tenant (or Tenant’s successor) the unused portion of the Security Deposit, any advance rent or c payments made by Tenant to Landlord. and any amounts paid for real property taxes and other reserve5 to any time periods after termination of the Lease. ARTICLE FOUR OTHER CHARGES PAYABLE BY TENANT Section 4.01. Additional Rent. All charges payable by Tenant other than Base Rent are callec Rent.” Unless this Lease provides otherwise, Tenant shall pay all Additional Rent then due with the installment of Base Rent. The term “rent” shall mean Base Rent and Additional Rent. Section 4.02. Property Taxes. (a) Real Property Taxes. Landlord shall pay the “Base Real Property Taxes” on the Property du Term. Base Real Property Taxes are real property taxes applicable to the Property as shown on the t, most recent tax fiscal year ending prior to the Commencement Date. However, if the structures on thi not completed by the tax lien date of such tax fiscal year, the Base Real Property Taxes are the taxes first t’ax bill showing the full assessed value of the Property after completion of the structures. Ter Landlord the amount, if any, by which the real property taxes during the Lease Term exceed the Base Taxes. Subject to Paragraph 4.02(c). Tenant shall make such payments within fifteen (15) days ai Landlord’s statement showing the amount and computation of such increase. Landlord shall reimbui any real property taxes paid by Tenant covering any period of time prior to or after the Lease Term. (b) Definition of “Real Property Tax.” “Real property tax” means: (i) any fee, license fei business license fee, commercial rental tax, levy, charge, assessment, penalty or tax imposed by any ta against the Property: (ii) any tax on the Landlord’s right to receive, or the receipt of, rent or income fror or against Landlord’s business of leasing the Property; (iii) any tax or charge for fire protection, stref road maintenance, refuse or other services provided to the Property by any governmental agency imposed upon this transaction or based upon a re-assessment of the Property due to a change of defined by applicable law, or other transfer of all or part of Landlord’s interest in the Property: and (VI fee replacing any tax previously included within the definition of real property tax. “Real property however, include Landlord’s federal or state income, franchise, inheritance or estate taxes. (c) Joint Assessment. If the Property is not separately assessed, Landlord shall reasonably deter share of the real property tax payable by Tenant under Paragraph 4.02(a) from the assessor’s works reasonably available information. Tenant shall pay such share to Landlord within fifteen (151 days i Landlord’s written statement. (dl Personal Property Taxes. (i) Tenant shall pay all taxes charged against trade fuctures, furnishings, equipment or any property belonging to Tenant. Tenant shall try to have personal property taxed separately from (ii) If any of Tenant’s personal property is taxed with the Property, Tenant shall pay Landloi the personal property within fifteen (15) days after Tenant receives a written statement from Lan personal property taxes. Section 4.03. Utilities. Tenant shall pay, directly to the appropriate supplier, the cost of all na light, power, sewer service, telephone, water, refuse disposal and other utilities and services SI Property. However, if any services or utilities are jointly metered with other property, Landlord reasonable determination of Tenant’s proportionate share of the cost of such utilities and services an pay such share to Landlord within fifteen (IS) days after receipt of Landlord’s written statement. and Office Realtors? Inc. % (hfulti-Tenant 3 Gross Form) Initia @ @ 1988 Southern California Chapter of the Society of Industrial 0 a Section 4.04. insurance policies. (a) Liability Insurance. During the Lease Term, Tenant shall maintain a policy of commercial generr insurance (sometimes known as broad form comprehensive general liability insurance) insuring Tenai liability for bodily injury, property damage (including loss of use of property) and personal injury arising operation, use or occupancy of the Property. Tenant shall name Landlord as an additional insured under su The initial amount of such insurance shall be One Million Dollars ($1,000,000) per occurrence and shall be periodic increase based upon inflation, increased liability awards, recommendation of Landlord’s pri insurance advisers and other relevant factors. The liability insurance obtained by Tenant under this Paragra shall (i) be primary and noncontributing; (ii) contain cross-liability endorsements: and (iii) insure Landlo Tenant’s performance under Section 5.05, if the matters giving rise to the indemnity under Section 5.05 ri the negligence of Tenant. The amount and coverage of such insurance shall not limit Tenant’s liability n Tenant of any other obligation under this Lease. Landlord may also obtain comprehensive public liability in an amount and with coverage determined by Landlord insuring Landlord against liability arisii ownership, operation, use or occupancy of the Property. The policy obtained by Landlord shall not be co and shall not provide primary insurance. (b) Property and Rental Income Insurance. During the Lease Term, Landlord shall maintain I insurance covering loss of or damage to the Property in the full amount of its replacement value. Such pc contain an Inflation Guard Endorsement and shall provide protection against all perils included H classification of fire, extended coverage, vandalism, malicious mischief, special extended perils (all risk), leakage and any other perils which Landlord deems reasonably necessary. Landlord shall have the right flood and earthquake insurance if required by any lender holding a security interest in the Property. Land not obtain insurance for Tenant’s fixtures or equipment or building improvements installed by Tena Property. During the Lease Term, Landlord shall also maintain a rental income insurance policy, with loss Landlord, in an amount equal to one year’s Base Rent, plus estimated real property taxes and insurance I Tenant shall be liable for the payment of any deductible amount under Landlord’s or Tenant’s insuranc maintained pursuant to this Section 4.04, in an amount not to exceed Ten Thousand Dollars ($10,000). Te not do or permit anything to be done which invalidates any such insurance policies. (c) Payment of Premiums. (i) Landlord shall pay the “Base Premiums” for the insurance policies maintained by Land11 Paragraph 4.04(b). If the Property has been previously fully occupied, the “Base Premiums” are the premiums paid during or applicable to the last twelve (X?) months of such prior occupancy. If the Pn not been previously fully occupied or has been occupied for less than twelve (1-2) months, the Base Prel the lowest annual premiums reasonably obtainable for the required insurance for the Property Commencement Date. (ii) Tenant shall pay Landlord the amount, if any, by which the insurance premiums for al maintained by Landlord under Paragraph 4.04(b) have increased over the Base Premiums, whe increases result from the nature of Tenant’s occupancy, any act or omission of Tenant, the requirem lender referred to in Article Eleven (Protection of Lenders), the increased value of the Property or gc increases. However, if Landlord substantially increases the amount of insurance carried or the pen insured value after the period during which the Base Premiums were calculated, Tenant shall only pa) the amount of increased premiums which would have been charged by the insurance carrier if the insurance or percentage of insoured value had not been substantially increased by Landlord. This adji the amount due from Tenant shall be made only once during the Lease Term. Thereafter, Tenan obligated to pay the full amount of any additional increases in the insurance premiums, including resulting from any further increases in the amount of insurance or percentage of insured value. Section 4.05, Tenant shall pay Landlord the increases over the Base Premiums within fifteen (15) receipt by Tenant of a copy of the premium statement or other evidence of the amount due. If the policies maintained by Landlord cover improvements or real property other than the Property, Lanc also deliver to Tenant a statement of the amount of the premiums applicable to the Property st reasonable detail, how such amount was computed. If the Lease Term expires before the expirat insurance period, Tenant’s liability shall be pro rated on an annual basis. (d) General Insurance Provisions. (i) Any insurance which Tenant is required to maintain under this Lease shall include a provis requires the insurance carrier to give Landlord not less than thirty (30) days’ written notice pr cancellation or modification of such coverage. (ii) If Tenant fails to deliver any policy, certificate or renewal to Landlord required under this Le the prescribed time period or if any such policy is cancelled or modified during the Lease Ter Landlord’s consent, Landlord may obtain such insurance, in which case Tenant shall reimburse Land1 cost of such insurance within fifteen (15) days after receipt of a statement that indicates the ca insurance. @ 1988 Southern Csllfornia Chapter 4 of the Society of Industrial and Office Realton? Inc. q (Multi-Tenant Gross Foy) 0 0 (iii) Tenant shall maintain all insurance required under this Lease with companies holdin Policy Rating” of A-12 or better, as set forth in the most current issue of “Best Key Rating Guide”. 1 Tenant acknowledge the insurance markets are rapidly changing and that insurance in the form described in this Section 4.04 may not be available in the future. Tenant acknowledges that t described in this Section 4.04 is for the primary benefit of Landlord. If at any time during the Lease ‘ is unable to maintain the insurance required under the Lease, Tenant shall nevertheless mainte coverage which is customary and commercially reasonable in the insurance industry for Ten business, as that coverage may change from time to time. Landlord makes no iepresentation as to th such insurance to protect Landlord’s or Tenant’s interests. Therefore, Tenant shall obtain any su property or liability insurance which Tenant deems necessary to protect Landlord and Tenant. (iv) Unless prohibited under any applicable insurance policies maintained, Landlord and hereby waive any and all rights of recovery against the other, or against the officers, employe representatives of the other, for loss of or damage to its property or the property of others under such loss or damage is covered by any insurance policy in force (whether or not described in this time of such loss or damage. Upon obtaining the required policies of insurance, Landlord and Ten notice to the insurance carriers of this mutual waiver of subrogation. Section 4.05. Common Areas; Use, Maintenance and Costs, (a] Common Areas. As used in this Lease, “Common Areas” shall mean all areas within the Pro] available for the common use of tenants of the Project and which are not leased or held for the ex( Tenant or other tenants, including, but not limited to, parking areas, driveways, sidewalks, loading roads, corridors, landscaping and planted areas. Landlord, from time to time, may change the size, lo and use of any of the Common Areas, convert Common Areas into leaseable areas, construct addit facilities (including parking structures) in the Common Areas, and increase or decrease Common Are facilities. Tenant acknowledges that such activities may result in inconvenience to Tenant, Such changes are permitted if they do not materially affect Tenant’s use of the Property. (b) Use of Common Areas. Tenant shall have the nonexclusive right (in common with other tc others to whom Landlord has granted or may grant such rights] to use the Common Areas for the purpc subject to such reasonable rules and regulations as Landlord may establish from time to time. Tenant such rules and regulations and shall use its best effort to cause others who use the Common Areas express or implied permission to abide by Landlord’s rules and regulations. At any time, Landlord I Common Areas to perform any acts in the Common Areas as, in Landlord’s judgment, are desirable tc Project. Tenant shall not interfere with the rights of Landlord, other tenants or any other person entit Common Areas. (c) Specific Provision re: Vehicle Parking. Tenant shall be entitled to use the number of vf spaces in the Project allocated to Tenant in Section 1.11 of the Lease without paying any additional parking shall not be reserved and shall be limited to vehicles no larger than standard size automobl utility vehicles. Tenant shall not cause large trucks or other large vehicles to be parked within the Prc adjacent public streets. Temporary parking of large delivery vehicles in the Project may be permitted by regulations established by Landlord. Vehicles shall be parked only in striped parking spaces and not loading areas or other locations not specifically designated for parking. Handicapped spaces shall on those legally permitted to use them. If Tenant parks more vehicles in the parking area than the numb Section 1.11 of this Lease, such conduct shall be a material breach of this Lease. In addition to Lai remedies under the Lease, Tenant shall pay a daily charge determined by Landlord for each such additi (d) Maintenance of Common Areas. Landlord shall maintain the Common Areas in good or and repair and shall operate the Project, in Landlord’s sole discretion, as a first-class industriallco property development. Tenant shall pay Tenant’s pro rata share (as determined below) of all cost Landlord for the operation and maintenance of the Common Areas. Common Area costs include, but E to, costs and expenses for the following: gardening and landscaping; utilities, water and sewage ch nance of signs (other than tenants’ signs); premiums for liability, property damage, fire and other tyI insurance on the Common Areas and worker’s compensation insurance: all property taxes and assessm or attributable to the Common Areas and all Common Area improvements: all personal property taxe attributable to personal property used in connection with the Common Areas; straight-line depreciatic property owned by Landlord which is consumed in the operation or maintenance of the Common A lease payments paid by Landlord for rented or leased personal property used in the operation or main Common Areas: fees for required licenses and permits: repairing, resurfacing, repaving. maintain lighting, cleaning, refuse removal, security and similar items: reserves for roof replacement and exterio other appropriate reserves; and a reasonable allowance to Landlord for Landlord’s supervision of the C [not to exceed five percent (5%) of the gross rents of the Project for the calendar year). Landlord may c of such services to be provided by third parties and the cost of such services shall be included in 1 costs. Common Area costs shall not include depreciation of real property which forms part of the CI @ 1988 Southern California Chapter 5 Initials of the Society of Industrial 3 and Office Realtors? Inc. (Multi-Tenant Gross Form] e e (e) Tenant’s Share and Payment. Tenant shall pay Tenant’s annual pro rata share of all Comma (prorated for any fractional month) upon written notice from Landlord that such costs are due and pa] any event prior to delinquency. Tenant’s pro rata share shall be calculated by dividing the square foa Property, as set forth in Section 1.04 of the Lease, by the aggregate square foot area of the Project whick held for lease by tenants, as of the date on which the computation is made. Tenant’s initial pro rata shan Paragraph 1.13(b). Any changes in the Common Area costs andlor the aggregate area of the Project lease lease during the Lease Term shall be effective on the first day of the month after such change occurs. Li at Landlord’s election, estimate in advance and charge to Tenant as Common Area costs, all real propi which Tenant is liable under Section 4.02 of the Lease, all insurance premiums for which Tenant is Section 4.04 of the Lease, all maintenance and repair costs for which Tenant is liable under Section 6.04 and all other Common Area costs payable by Tenant hereunder. At Landlord’s election, such statements Common Area casts shall be delivered monthly. quarterly or at any other periodic intervals to be d Landlord. Landlord may adjust such estimates at any time based upon Landlords experience an anticipation of costs. Such adjustments shall be effective as of the next rent payment date after noti, Within sixty (60) days after the end of each calendar year of the Lease Term, Landlord shall delivei statement prepared in accordance with generally accepted accounting principles setting forth, in reasc the Common Area costs paid or incurred by Landlord during the preceding calendar year and Tenant’s F Upon receipt of such statement, there shall be an adjustment between Landlord and Tenant. with p credit given by Landlord [as the case may be) so that Landlord shall receive the entire amount of Ter such costs and expenses for such period. Section 4.06. Late Charges. Tenant’s failure to pay rent promptly may cause Landlord to incur costs. The exact amount of such costs are impractical or extremely difficult to ascertain. Such costs ma are not limited to, processing and accounting charges and late charges which may be imposed on La .ground lease, mortgage or trust deed encumbering the Property. Therefore, if Landlord does not rei payment within ten (IO] days after it becomes due, Tenant shall pay Landlord a late charge equal (10%) of the overdue amount. The parties agree that such late charge represents a fair and reasonable i costs Landlord will incur by reason of such late payment. There will be a $50.00 Charge as6 Section 4.07. Interest on Past Due Obligations. Any amount owed by Tenant to Landlord wh when due shall bear interest at the rate of fifteen percent (15%) per annum from the due date of However, interest shall not be payable on late charges to be paid by Tenant under this Lease. The payrr on’such amounts shall not excuse or cure any default by Tenant under this Lease. If the interest rate SI Lease is higher than the rate permitted by law, the interest rate is hereby decreased to the maximum rate permitted by law. Section 4.08. Impounds for Insurance Premiums and Real Property Taxes. If requested I lessor or lender to whom Landlord has granted a security interest in the Property, or if Tenant is mort days late in the payment of rent more than once in any consecutive twelve (12) -month period, Te Landlord a sum equal to one-twelfth (I/iz) of the annual real property taxes and insurance premiui Tenant under this Lease, together with each payment of Base Rent. Landlord shall hold such non-interest bearing impound account. If unknown, Landlord shall reasonably estimate the amount c taxes and insurance premiums when due. Tenant shall pay any deficiency of funds in the impot Landlord upon written request. If Tenant defaults under this Lease, Landlord may apply any funds i account to any obligation then due under this Lease. ARTICLE FIVE: USE OF PROPERTY 1.06 above. non sufficient funds. Section 5.01. Permitted Uses. Tenant may use the Property only for the Permitted Uses set f Section 5.02. Manner of Use. Tenant shall not cause or permit the Property to be used in ; constitutes a violation of any law, ordinance, or governmental regulation or order, which annoys or the rights of tenants of the Project, or which constitutes a nuisance or waste. Tenant shall obtain permits, including a Certificate of Occupancy, required for Tenant’s occupancy of the Property and take all actions necessary to comply with all applicable statutes, ordinances, rules, regulatio requirements regulating the use by Tenant of the Property, including the Occupational Safety and ’ Section 5.03. Hazardous Materials. As used in this Lease, the term “Hazardous Materi flammable items, explosives, radioactive materials, hazardous or toxic substances, material or H materials, including any substances defined as or included in the definition of “hazardous substancl wastes”, “hazardous materials” or ”toxic substances” now or subsequently regulated under any apt state or local laws or regulations, including without limitation petroleum-based products, paints cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products and similar compounds, and including any different products and materials which are subsequent1 adverse effects on the environment or the health and safety of persons. Tenant shall not caw Hazardous Material to be generated, produced, brought upon, used, stored, treated or disposed of Property by Tenant, its agents, employees, contractors, sublessees or invitees without the prior WI Landlord. Landlord shall be entitled to take into account such other factors or facts as Landlord determine to be relevant in determining whether to grant or withhold consent to Tenant’s propos respect to Hazardous Material. In no event, however, shall Landlord be required to cons of any storage tanks on the Property. @ 1988 Southern California Chapter 6 Initial of the Society of Industrial m’ and Office Realtorsm Inc. 2 (Multi-Tenant Gross Form) 0 0 . Section 6.04. Tenant’s Obligations. (a) Except as provided in Article Seven (Damage or Destruction) and Article Eight (Condemnat shall keep all portions of the Property (including structural, nonstructural, interior, systems and equiprr order, condition and repair (including interior repainting and refinishing, as needed). If any portion of or any system or equipment in the Property which Tenant is obligated to repair cannot be fully repairec Tenant shall promptly replace such portion of the Property or system or equipment in the Property, whether the benefit of such replacement extends beyond the Lease Term; but if the benefit or useful replacement extends beyond the Lease Term (as such term may be extended by exercise of any option: life of such replacement shall be prorated over the remaining portion of the Lease Term (as extended) shall be liable only for that portion of the cost which is applicable to the Lease Term (as extended). T. , ’ undertake the responsibility for preventive maintenance of the hea conditioning system at Tenant’s expense. In addition, Tenant shall, at Tenant’s expense, repair any d ropf, foundation or structural portions of walls caused by Tenant’s acts or omissions. It is the intentior and Tenant that, at all times during the Lease Term, Tenant shall maintain the Property in an attracti and hlly operative condition. (b) Tenant shall fulfill all of Tenant’s obligations under this Section 6.04 at Tenant’s sole exper fails to maintain, repair or replace the Property as required by this Section 6.04. Landlord may, upon I prior notice to Tenant (except that no notice shall be required in the case of an emergency), enter the perform such maintenance or repair (including replacement, as needed) on behalf of Tenant. In such shall reimburse Landlord for all costs incurred in performing such maintenance or repair immediately u Section 6.05. Alterations, Additions, and Improvements. (a) Tenant shall not make any alterations, additions, or improvements to the Property without Lar writien consent, except for non-structural alterations which do not exceed Ten Thousand Dollars ($IC cumulatively over the Lease Term and which are not visible from the outside of any building of which ti part. Landlord may require Tenant to provide demolition and/or lien and completion bonds in form satisfactory to Landlord. Tenant shall promptly remove any alterations, additions, or improvements CI violation of this Paragraph 6.05(a) upon Landlord’s written request. All alterations, additions. and ii shall be done in a good and workmanlike manner, in conformity with all applicable laws and regulatic contractor approved by Landlord. Upon completion of any such work, Tenant shall provide Landlord w plans, copies of all construction contracts, and proof of payment for all labor and materials. (b) Tenant shall pay when due all claims for labor and material furnished to the Property. Ten: Landlord at least twenty (20) days’ prior written notice of the commencement of any work on the Proper of whether Landlord’s consent to such work is required. Landlord may elect to record and PO non-responsibility on the Property. Property to Landlord, broom clean and in the same condition as received except for ordinary wear ar Tenant was not otherwise obligated to remedy under any provision of this Lease. However, Tenant obligated to repair any damage which Landlord is required to repair under Article Seven (Damage or Dc addition, Landlord may require Tenant to remove any alterations. additions or improvements (whethei with Landlord’s consent) prior to the expiration of the Lease and to restore the Property to its prior co’ Tenant’s expense. All alterations, additions and improvements which Landlord has not required Ten; shall become Landlord’s property and shall be surrendered to Landlord upon the expiration or earlier t the Lease, except that Tenant may remove any of Tenant’s machinery or equipment which can be rem material damage to the Property. Tenant shall repair, at Tenant’s expense, any damage to the Property removal of any such machinery or equipment. In no event, however, shall Tenant remove any of materials or equipment (which shall be deemed Landlord’s property) without Landlord’s prior written power wiring or power panels; lighting or lighting fixtures; wall coverings; drapes, blinds or c coverings; carpets or other floor coverings; heaters, air conditioners or any other heating or air equipment; fencing or security gates; or other similar building operating equipment and decorations. ARTICLE SEVEN: DAMAGE OR DESTRUCTION Section 6.06. Condition upon Termination. Upon the termination of the Lease, Tenant shall Section 7.01. Partial Damage to Property. (a) Tenant shall notify Landlord in writing immediately upon the occurrence of any damage to tt the Property is only partially damaged (i.e., less than fifty percent (50%) of the Property is untenantable such damage or less than fifty percent (50%) of Tenant’s operations are materially impaired) and if received by Landlord from the insurance policies described in Paragraph 4.04(b) are sufficient tc necessary repairs, this Lease shall remain in effect and Landlord shall repair the damage as soon possible. Lendlord may elect [but is not required) to repair any damage to Tenant’s fixtures, e improvements. @ 1988 Southern of the Society California of Industrial Chapter 8 Initial & and Office Realtors? Inc. % (Multi-Tenant Gmss Form) , e e Section 6.04. Tenant’s Obligations. (a) Except as provided in Article Seven (Damage or Destruction) and Article Eight (Condemnat shall keep all portions of the Property (including structural, nonstructural, interior, systems and equipm order, condition and repair (including interior repainting and refinishing, as needed). If any portion of or any system or equipment in the Property which Tenant is obligated to repair cannot be fully repairec Tenant shall promptly replace such portion of the Property or system or equipment in the Property, 1 whether the benefit of such replacement extends beyond the Lease Term; but if the benefit or useful replacement extends beyond the Lease Term (as such term may be extended by exercise of any option! life of such replacement shall be prorated over the remaining portion of the Lease Term (as extended) shall be liable only for that portion of the cost which is applicable to the Lease Term (as extended). maintain a preventive maintenance contract providing for the regular inspection and maintenance of the air conditioning system by a licensed heating and air conditioning contractor. Landlord shall have thc written notice to Tenant, to undertake the responsibility for preventive maintenance of the hea conditioning system at Tenant’s expense. In addition, Tenant shall, at Tenant’s expense, repair any d roof, foundation or structural portions of walls caused by Tenant’s acts or omissions. It is the intention and fully operative condition. (b) Tenant shall fulfill all of Tenant’s obligations under this Section 6.04 d Tenant’s sole expen fails to maintain, repair or replace the Property as required by this Section 6.04, Landlord may, upon i prior notice to Tenant (except that no notice shall be required in the case of an emergency), enter the perform such maintenance or repair (including replacement, as needed) on behalf of Tenant. In such shall reimburse Landlord for all costs incurred in performing such maintenance or repair immediately u and Tenant that, at all times during the Lease Term, Tenant shall maintain the Property in an attracti Section 6.05. Alterations, Additions, and Improvements, (a) Tenant shall not make any alterations, additions, or improvements to the Property without Lar written consent, except for non-structural alterations which do not exceed Ten Thousand Dollars ($I( cumulatively over the Lease Term and which are not visible from the outside of any building of which tl part. Landlord may require Tenant to provide demolition and/or lien and completion bonds in form satisfactory to Landlord. Tenant shall promptly remove any alterations, additions, or improvements c violation of this Paragraph 6.05(a) upon Landlord’s written request. All alterations, additions. and i shall be done in a good and workmanlike manner, in conformity with all applicable laws and regulati contractor approved by Landlord. Upon completion of any such work, Tenant shall provide Landlord w plans, copies of all construction contracts, and proof of payment for all labor and materials. (b) Tenant shall pay when due all claims for labor and material furnished to the Property. Tent Landlord at least twenty (20) days’ prior written notice of the commencement of any work on the Proper of whether Landlord’s consent to such work is required. Landlord may elect to record and pa non-responsibility on the Property. Section 6.06. Condition upon Termination. Upon the termination of the Lease, Tenant shall Property to Landlord, broom clean and in the same condition as received except for ordinary wear ar Tenant was not otherwise obligated to remedy under any provision of this Lease. However, Tenant obligated to repair any damage which Landlord is required to repair under Article Seven (Damage or DI addition, Landlord may require Tenant to remove any alterations, additions or improvements (whethe with Landlord’s consent) prior to the expiration of the Lease and to restore the Property to its prior co Tenant‘s expense. All alterations, additions and improvements which Landlord has not required Ten] shall become Landlord’s property and shall be surrendered to Landlord upon the expiration or earlier t the Lease, except that Tenant may remove any of Tenant’s machinery or equipment which can be rem material damage to the Property. Tenant shall repair, at Tenant’s expense, any damage to the Property removal of any such machinery or equipment. In no event, however, shall Tenant remove any of materials or equipment [which shall be deemed Landlord’s property) without Landlord’s prior writter power wiring or power panels: lighting or lighting fixtures: wall coverings: drapes, blinds or c coverings; carpets or other floor coverings: heaters, air conditioners or any other heating or air equipment; fencing or security gates: or other similar building operating equipment and decorations ARTICLE SEVEN: DAMAGE OR DESTRUCI‘ION Section 7.01. Partial Damage to Property. (a) Tenant shall notify Landlord in writing immediately upon the occurrence of any damage to ti the Property is only partially damaged (i.e., less than fifty percent (50%) of the Property is untenantebk such damage or less than fifty percent (50%) of Tenant’s operations are materially impaired) and 11 received by Landlord from the insurance policies described in Paragraph 4.04(b) are sufficient t necessary repairs, this Lease shall remain in effect and Landlord shall repair the damage as soon possible. Landlord may elect (but is not required) to repair any damage to Tenant’s fixtures. t improvements. 0 1988 of Southern the Society California of Industrial Chapter 8 Initials & and Office Realtors? Inc. 9 (Multi-Tenant Gross Form) 0 0 (b) If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of rt cause of the damage is not covered by the insurance policies which Landlord maintains under Para Landlord may elect either to (i) repair the damage as soon as reasonably possible, in which case tk remain in full force and effect, or (ii) terminate this Lease as of the date the damage occurred. Landlo Tenant within thirty (30) days after receipt of notice of the occurrence of the damage whether Lanc repair the damage or terminate the Lease. If Landlord elects to repair the damage, Tenant shall pay “deductible amount” (if any) under Landlord’s insurance policies and, if the damage was due to an act Tenant, or Tenant’s employees, agents, contractors or invitees, the difference between the actual cos1 any insurance proceeds received by Landlord. If Landlord elects to terminate this Lease, Tenant continue this Lease in full force and effect, in which case Tenant shall repair any damage to the Prc building in which the Property is located. Tenant shall pay the cost of such repairs, except that up completion of such repairs, Landlord shall deliver to Tenant any insurance proceeds received by La damage repaired by Tenant. Tenant shall give Landlord written notice of such election within ten receiving Landlord’s termination notice. (c) If the damage to the Property occurs during the last six (6) months of the Lease Term and su( require more than thirty (30) days to repair. either Landlord or Tenant may elect to terminate this Leas the damage occurred, regardless of the sufficiency of any insurance proceeds. The party electing to Lease shall give written notification to the other party of such election within thirty (30) days after Tei Landlord of the occurrence of the damage. Section 7.02. Substantial or Total Destruction. If the Property is substantially or totally de cause whatsoever (i.e., the damage to the Property is greater than partial damage as described in Sec regardless of whether Landlord receives any insurance proceeds, this Lease shall terminate as c destruction occurred. Notwithstanding the preceding sentence, if the Property can be rebuilt within after the date of destruction, Landlord may elect to rebuild the Property at Landlord’s own expense this Lease shall remain in full force and effect. Landlord shall notify Tenant of such election within after Tenant’s notice of the occurrence of total or substantial destruction. If Landlord so elects, Landlo the Property at Landlord’s sole expense, except that if the destruction was caused by an act or omis Tenant shall pay Landlord the difference between the actual cost of rebuilding and any insurance prc by Landlord. Section 7.03. Temporary Reduction of Rent. If the Property is destroyed or damaged ai Tenant repairs or restores the Property pursuant to the provisions of this Article Seven, any rent pay period of such damage, repair andlor restoration shall be reduced according to the degree, if any, to use of the Property is impaired. However, the reduction shall not exceed the sum of one year’s payme insurance premiums and real property taxes. Except for such possible reduction in Base Rent, insur and real property taxes, Tenant shall not be entitled to any compensation, reduction, or reimE Landlord as a result of any damage, destruction, repair, or restoration of or to the Property. Section 7.04. Waiver. Tenant waives the protection of any statute, code or judicial decision tenant the right to terminate a lease in the event of the substantial or total destruction of the leased p agrees that the provisions of Section 7.02 above shall govern the rights and obligations of Landlord an event of any substantial or total destruction to the Property. ARTICLE EIGHT: CONDEMNATION If all or any portion of the Property is taken under the power of eminent domain or sold under tl power (all of which are called “Condemnation”), this Lease shall terminate as to the part taken or sold condemning authority takes title or possession, whichever occurs first. If more than twenty percent (2 area of the building in which the Property is located, or which is located on the Property, is taken, eit Tenant may terminate this Lease as of the date the condemning authority takes title or possessio1 written notice to the other within ten (10) days after receipt of written notice of such taking (or in the notice, within ten (10) days after the condemning authority takes title or possession). If neither Land terminates this Lease, this Lease shall remain in effect as to the portion of the Property not taken, exct Rent and Additional Rent shall be reduced in proportion to the reduction in the floor area of thc Condemnation award or payment shall be distributed in the following order: (a) first, to any ground 1g or beneficiary under a deed of trust encumbering the Property, the amount of its interest in the Prop to Tenant, only the amount of any award specifically designated for loss of or damage to Tenant’s removable personal property; and (c) third, to Landlord, the remainder of such award, whether as CI reduction in the value of the leasehold, the taking of the fee, or otherwise. If this Lease is not termi shall repair any damage to the Property caused by the Condemnation, except that Landlord shall no repair any damage for which Tenant has been reimbursed by the condemning authority. If the sev received by Landlord are not sufficient to pay for such repair, Landlord shall have the right to eithc Lease or make such repair at Landlord’s expense. . @ 1988 Southern of the Society California of Industrial Chapter %XU 9 Initials & and Office Realtors? hc. 2 (Multi-Tenant Gross Form) e 0 1 ARTICLE NINE: ASSIGNMENT AND SUBLEITJNG Section 9.01, Landlord’s Consent Required. No portion of the Property or of Tenant’s interest in th may be acquired by any other person or entity, whether by sale. assignment, mortgage, sublease, transfer. o of law, or act of Tenant, without Landlord’s prior written consent, except as provided in Section 9.02 Landlord has the right to grant or withhold its consent as provided in Section 9.05 below. Any attempted without consent shall be void and shall constitute a non-curable breach of this Lease. If Tenant is a partner? cumulative transfer of more than twenty percent (20%~) of the partnership interests shall require Londlord’s If Tenant is a corporation, any change in the ownership of a controlling interest of the voting stock of the COT shall require Landlord’s consent. Section 9.02. Tenant Affiliate. Tenant may assign this Lease or sublease the Property. without LI consent. to any corporation which controls. is controlled by or is under common control with Tenant, c corporation resulting from the merger of or consolidation with Tenant Y‘Tenant’s Affiliate”). In SuCh t Tenant’s Affiliate shall assume in writing all of Tenant’s obligations under this Lease. Section 9.03. No Release of Tenant. No transfer permitted by this Article Nine, whether with 01 Landlord’s consent, shall release Tenant or change Tenant’s primary liability to pay the rent and to perforn obligations of Tenant under this Lease. Landlord’s acceptance of rent from any other person is not a wail provision of this Article Nine. Consent to one transfer is not a consent to any subsequent transfer. If transferee defaults under this Lease, Landlord may proceed directly against Tenant without pursuing against the transferee. Landlord may consent to subsequent assignments or modifications of this Lease 6) transferee, without notifying Tenant or obtaining its consent. Such action shall not relieve Tenant’s liabi this Lease. Section 9.04. Offer to Terminate. If Tenant desires to assign the Lease or subIease the Propert shall have the right to offer, in writing, to terminate the Lease as of a date specified in the offer. If Landlorc writing to accept the offer to terminate within twenty (20) days after notice of the offer, the Lease shall term the date specified and all the terms and provisions of the Lease governing termination shall apply. If Lani not so elect, the Lease shall continue in effect until otherwise terminated and the provisions of Section respect to any proposed transfer shall continue to apply. Section 9.05. Landlord’s Consent. (a) Tenant’s request for consent to any transfer described in Section 9.01 shall set forth in writing thc the proposed transfer, including the name, business and financial condition of the prospective transferee details of the proposed transfer (e.g.. the term of and the rent and security deposit payable under any assignment or sublease], and any other information Landlord deems relevant. Landlord shall have tt withhold consent, if reasonable, or to grant consent, based on the following factors: (i] the business of thc assignee or subtenant and the proposed use of the Property; (ii) the net worth and financial repute’ proposed assignee or subtenant; (iii] Tenant’s compliance with all of its obligations under the Lease; an other factors as Landlord may reasonably deem relevant. If Landlord objects to a proposed assignment soli of the net worth andlor financial reputation of the proposed assignee, Tenant may nonetheless sublea assign], all or a portion of the Property to the proposed transferee, but only on the other terms of th transfer. (b) If Tenant assigns or subleases, the following shall apply: (i) Tenant shall pay to Landlord as Additional Rent under the Lease the Landlord‘s Share [statec 1.14) of the Profit [defined below] on such transaction as and when received by Tenant, unless Lan written notice to Tenant and the assignee or subtenant that Landlord’s Share shall be paid by the subtenant to Landlord directly. The “Profit” means (A] all amounts paid to Tenant for such as sublease. including “key” money, monthly rent in excess of the monthly rent payable under the LI fees and other consideration paid for the assignment or sublease, including fees under any collateral less (E) costs and expenses directly incurred by Tenant in connection with the execution and per such assignment or sublease for real estate broker’s commissions and costs of renovation or cor tenant improvements required under such assignment or sublease. Tenant is entitled to recover SUI expenses before Tenant is obligated to pay the Landlord’s Share to Landlord. The Profit in the case ( of less than all the Property is the rent allocable to the subleased space as a percentage on a square fo (ii] Tenant shall provide Landlord a written statement certifying all amounts to be pai assignment or sublease of the Property within thirty (30) days aRer the transaction documentation i Landlord may inspect Tenant’s books and records to verify the accuracy of such statement. On WT Tenant shall promptly furnish to Landlord copies of all the transaction documentation, all of w1 certified by Tenant to be complete, true and correct. Landlord’s receipt of Landlord’s Share shall no! to any further assignment or subletting. The breach of Tenant’s obligation under this Paragraph 9.0: material default of the Lease. Section 9.06. No Merger. No merger shall result from Tenant’s sublease of the Property unde Nine, Tenant’s surrender of this Lease or the termination of this Lease in any other manner. In an] Landlord may terminate any or all subtenancies or succeed to the interest of Tenant as sublandlord un subtenancies. K @ 1988 Southern California Chapter 10 Initials of the Society of Industrial and Office Realtors? Inc. q (Multi-Tenant Gross Form) e e ARTICLE TEN: DEFAULTS; REMEDIES Section 10.01. Covenants and Conditions. Tenant’s performance of each of Tenant’s obligati Lease is a condition as well as a covenant. Tenant’s right to continue in possession of the Property upon such performance. Time is of the essence in the performance of all covenants and conditions. Section 10.02. Defaults. Tenant shall be in material default under this Lease: (a) If Tenant abandons the Property or if Tenant’s vacation of the Property results in the canc (b) If Tenant fails to pay rent or any other charge when due: (c) If Tenant fails to perform any of Tenant’s non-monetary obligations under this Lease for a i [30) days after written notice from Landlord; provided that if more than thirty (30) days 0re required to performance, Tenant shall not be in default if Tenant commences such performance within the thirty ( and thereafter diligently pursues its completion. However, Landlord shall not be required to give Tenant’s failure to perform constitutes a non-curable breach of this Lease. The notice required by th intended to satisfy any and all notice requirements imposed by law on Landlord and is not in additi requirement. (d) (i) If Tenant makes a general assignment or general arrangement for the benefit of creditors; for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Ten dismissed within thirty (30) days: (iii) if a trustee or receiver is appointed to take possession of sub Tenant’s assets located at the Property or of Tenant’s interest in this Lease and possession is not res! within thirty (30) days; or (iv) if substantially all of Tenant’s assets located at the Property or of Teni this Lease is subjected to attachment, execution or other judicial seizure which is not discharged wi days. If a court of competent jurisdiction determines that any of the acts described in this subparagr, default under this Lease, and a trustee is appointed to take possession (or if Tenant remains a debtol and such trustee or Tenant transfers Tenant’s interest hereunder, then Landlord shall receive, as Addi excess, if any, of the rent (or any other consideration) paid in connection with such assignment or su rent payable by Tenant under this Lease. (e) If any guarantor of the Lease revokes or otherwise terminates, or purports to revoke or other any guaranty of all or any portion of Tenant’s obligations under the Lease. Unless otherwise express guaranty of the Lease is revocable. Section 10.03. Remedies. On the occurrence of any material default by Tenant, Landlord m thereafter, with or without notice or demand and without limiting Landlord in the exercise of any I which Landlord may have: terminate and Tenant shall immediately surrender possession of the Property to Landlord. In such c shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s defau the worth at the time of the award of the unpaid Base Rent, Additional Rent and other charges whic earned at the time of the termination; (ii) the worth at the time of the award of the amount by which t Rent, Additional Rent and other charges which Landlord would have earned after termination until award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably a worth at the time of the award of the amount by which the unpaid Base Rent, Additional Rent anc which Tenant would have paid for the balance of the Lease term after the time of award exceeds the rental loss that Tenant proves Landlord could have reasonably avoided; and (iv) any other amou compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its ob the Lease or which in the ordinary course of things would be likely to result therefrom, including, bu any costs or expenses Landlord incurs in maintaining or preserving the Property after such defa recovering possession of the Property, expenses of reletting. including necessary renovation or a Property, Landlord’s reasonable attorneys’ fees incurred in connection therewith, and any real est paid or payable. As used in subparts (i) and (ii) above, the “worth at the time of the award” is compu interest on unpaid amounts at the rate of fifteen percent (15%) per annum, or such lesser amount as I maximum lawful rate. As used in subpart (iii) above, the “worth at the time of the award” i discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the tin plus one percent (1%). If Tenant has abandoned the Property, Landlord shall have the option possession of the Property and recovering from Tenant the amount specified in this Paragraph proceeding under Paragraph 10.03(b); (b) Maintain Tenant’s right to possession, in which case this Lease shall continue in effect Tenant has abandoned the Property. In such event, Landlord shall be entitled to enforce all of Land1 remedies under this Lease, including the right to recover the rent as it becomes due: state in which the Property is located. insurance described in Section 4.04; (a) Terminate Tenant’s right to possession of the Property by any lawful means, in which case (c) Pursue any other remedy now or hereafter available to Landlord under the laws or judicial (Multi-Tenant 11 Gross Form) Initial E @ 1988 Southern California Chapter of the Society of IndusMal 9 and Office Realtors? Inc. # 0 0 Section 10.04. Repayment of “Free” Rent. If this Lease provides for a postponement of any mo payments, a period of “free” rent or other rent concession, such postponed rent or “free” rent is called t Rent”, Tenant shall be credited with having paid a11 of the Abated Rent on the expiration of the Lease 7 Tenant has fully, faithfully, and punctually performed all of Tenant’s obligations hereunder, including t of ail rent (other than the Abated Rent) and all other monetary obligations and the surrender of the Pro physical condition required by this Lease. Tenant acknowledges that its right to receive credit for the Ab absolutely conditioned upon Tenant’s full, faithful and punctual performance of its obligations under tl Tenant defaults and does not cure within any applicable grace period, the Abated Rent shall immedia! concession. In such case Abated Rent shall be calculated based on the full initial rent payable under t Section 10.05. Automatic Termination. Notwithstanding any other term or provision hereof to the Lease shall terminate on the occurrence of any act which affirms the Landlord’s intention to termini as provided in Section 10.03 hereof, including the filing of an unlawful detainer action against Tent termination, Landlord’s damages for default shall include all costs and fees, including reasonable attorn Landlord incurs in connection with the filing, commencement, pursuing andlor defending of any a bankruptcy court or other court with respect to the Lease; the obtaining of relief from any stay ir restraining any action to evict Tenant: or the pursuing of any action with respect to Landlord’s right to 1 the Property. All such damages suffered [apart from Base Rent and other rent payable hereunder) shr pecuniary damages which must be reimbursed to Landlord prior to assumption of the Lease by Tt successor to Tenant in any bankruptcy or other proceeding. Section 10.06. Cumulative Remedies. Landlord’s exercise of any right or remedy shall not pr exercising any other right or remedy. ARTICLE ELEVEN: PROTECIlON ‘OF LENDERS Section 11.01. Subordination. Landlord shall have the right to subordinate this Lease to any deed of trust or mortgage encumbering the Property, any advances made on the security thereof and i modifications, consolidations, replacements or extensions thereof, whenever made or recorded. cooperate with Landlord and any lender which is acquiring a security interest in the Property or the shall execute such further documents and assurances as such lender may require, provided that Tenanl under this Lease shall not be increased in any material way (the performance of ministerial acts shall r material), and Tenant shall not be deprived of its rights under this Lease. Tenant’s right to quiet pos Property during the Lease Term shall not be disturbed if Tenant pays the rent and performs a1 obligations under this Lease and is not otherwise in default. If any ground lessor, beneficiary or mort@ have this Lease prior to the lien of its ground lease, deed of trust or mortgage and gives written no1 Tenant, this Lease shall be deemed prior to such ground lease, deed of trust or mortgage whether this I prior or subsequent to the date of said ground lease, deed of trust or mortgage or the date of record’ Section 11.02. Attornment. If Landlord’s interest in the Property is acquired by any groun eficiary under a deed of trust, mortgagee, or purchaser at a foreclosure sale, Tenant shall attorn to the t successor to Landlord’s interest in the Property and recognize such transferee or successor as Land11 Lease. Tenant waives the protection of any statute or rule of law which gives or purports to give Tena terminate this Lease or surrender possession of the Property upon the transfer of Landlord’s interest Section 11.03. Signing of Documents. Tenant shall sign and deliver any instrument or docum or appropriate to evidence any such attornment or subordination or agreement to do so. If Tenant within ten (10) days after written request, Tenant hereby makes, constitutes and irrevocably appoinl any transferee or successor of Landlord, the attorney-in-fact of Tenant to execute and deliver any suck document. due and payable in full and this Lease shall be enforced as if there were no such rent ab~tement o Section 11.04. Estoppel Certificates. (a) Upon Landlord’s written request, Tenant shall execute, acknowledge and deliver to Lanc statement certifying: (i) that none of the terms or provisions of this Lease have been changed (or if changed. stating how they have been changed): [ii) that this Lease has not been cancelled or terminat date of payment of the Base Rent and other charges and the time period covered by such payment; (it is not in default under this Lease (or, if Landlord is claimed to be in default, stating why); and representations or information with respect to Tenant or the Lease as Lendlord may reasonably reque prospective purchaser or encumbrancer of the Property may require. Tenant shall deliver such statem within ten (10) days after Landlord’s request. Landlord may give any such statement by Tenant to I purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may rely conclush statement as true and correct. (b) If Tenant does not deliver such statement to Landlord &thin such ten (10) -day period, La1 prospective purchaser or encumbrancer, may conclusively presume and rely upon the following f; terms and provisions of this Lease have not been changed except as otherwise represented by Landlc Lease has not been cancelled or terminated except as otherwise represented by Landlord (iii) that nc month’s Base Rent or other charges have been paid in advance: and (iv) that Landlord is not in d Lease. In such event, Tenant shall be estopped from denying the truth of such facts. 9 [Multi-Tenant 12 Grass Form) Initials & @ 1988 Southern California Chapter of the Society of Industrial and Office Realtors? Inc. 0 e Section 11.05. Tenant’s Financial Condition. Within ten (IO) days after written request fro Tenant shall deliver to Landlord such financial statements as Landlord reasonably requires to verify the Tenant or any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall deliver to any lende by Landlord any financial statements required by such lender to facilitate the financing or refinai Property. Tenant represents and warrants to Landlord that each such financial statement is a true i statement as of the date of such statement. All financial statements shall be confidential and shall be u the purposes set forth in this Lease. ARTICLE TWELVE: LEGAL COSTS Section 12.01 Legal Proceedings. If Tenant or Landlord shall be in breach or default under thi party [the “Defaulting Party”) shall reimburse the other pa$y [the “Nondefaulting Party”) upon demand or expenses that the Nondefaulting Party incurs in connection with any breach or default of the Def under this Lease, whether or not suit is commenced or judgment entered. Such costs shall include 11 costs incurred for the negotiation of a settlement, enforcement of rights or otherwise. Furthermore, if a breach of or to enforce the provisions of this Leas is commenced, the court in such action shall award ti whose favor a judgment is entered, a reasonable sum as attorneys’ fees and costs. The losing party ir shall pay such attorneys’ fees and costs. Tenant shall also indemnify Landlord against and hold Land1 from all costs, expenses, demands and liability Landlord may incur if Landlord becomes or is made a claim or action [a) instituted by Tenant against any third party, or by any third party against Tenant, or any person holding any interest under or using the Property by license of or agreement with Te foreclosure of any lien for labor or material furnished to or for Tenant or such other person: (c) otherwi! of or resulting from any act or transaction of Tenant or such other person: or [d) necessary to protei interest under this Lease in a bankruptcy proceeding, or other proceeding under Title 11 of the United as amended. Tenant shall defend Landlord against any such claim or action at Tenant’s expense I reasonably acceptable to Landlord or, at Landlord’s election, Tenant shall reimburse Landlord for any costs Landlord incurs in any such claim or action. Section 12.02. Landlord’s Consent. Tenant shall pay Landlord’s reasonable attorneys’ fees connection with Tenant’s request for Landlord’s consent under Micle Nine (Assignment and Sublc connection with any other act which Tenant proposes to do and which requires Landlord‘s consent. ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS Section 13.01. Non-Discrimination. Tenant promises, and it is a condition to the continuance I that there will be no discrimination against, or segregation of, any person or group of persons on the I color, sex, creed, national origin or ancestry in the leasing, subleasing, transferring, occupancy, tenure Property or any portion thereof. Section 13.02. Landlord’s Liability; Certain Duties. [a] As used in this Lease, the term “Landlord” means only the current owner or owners of the ft Pmperty or Project or the leasehold estate under a ground lease of the Property or Project at the time Each Landlord is obligated to perform the obligations of Landlord under this Lease only during tk Landlord owns such interest or title. Any Landlord who transfers its title or interest is relieved of all respect to the obligations of Landlord under this Lease to be performed on or after the date of transfer. H Landlord shall deliver to its transferee all funds that Tenant previously paid if such funds have not yet under the terms of this Lease. (b) Tenant shall give written notice of any failure by Landlord to perform any of its obligations unc to Landlord and to any ground lessor, mortgagee or beneficiary under any deed of trust encumbering whose name and address have been furnished to Tenant in writing. Landlord shall not be in default unc unless Landlord (or such ground lessor, mortgagee or beneficiary) fails to cure such non-performancs (30) days after receipt of Tenant’s notice. However, if such non-performance reasonably requires more tt days to cure, Landlord shall not be in default if such cure is commenced within such thirty (30) -da thereafter diligently pursued to completion. (c) Notwithstanding any term or provision herein to the contrary, the liability of Landlord for the of its duties and obligations under this Lease is limited to Landlord’s interest in the Property and the neither the Landlord nor its partners, shareholders, officers or other principals shall have any personal 11 this Lease. Section 13.03. Severability. A determination by a court of competent jurisdiction that any pro Lease or any part thereof is illegal or unenforceable shall not cancel or invalidate the remainder of such this Lease, which shall remain in full force and effect. Section 13.04. Interpretation. The captions of the Articles or Sections of this Lease are to assist reading this Lease and are not a part of the terms or provisions of this Lease. Whenever required by the c Lease, the singular shall include the plural and the plural shall include the singular. The masculine, neuter genders shall each include the other. In any provision relating to the conduct, acts or omissions I term ”Tenant” shall include Tenant’s agents, employees, contractors, invitees, successors or othe Pmperty with Tenant’s expressed or implied permission. & @ 1988 Southern California Chapter 13 Initial of the Society of Industrial XW and Office Realtors? Inc. 2 (Multi-Tenant Gross Form) 0 0 Section 13.05. Incorporation of Prior Agreements; Modifications. This Lease is the on1 between the parties pertaining to the lease of the Property and no other agreements are effective. All an this Lease shall be in writing and signed by all parties. Any other attempted amendment shall be voi Section 13.06. Notices. All notices required or permitted under this Lease shall be in writing personally delivered or sent by certified mail, return receipt requested, postage prepaid. Notices to Te delivered to the address specified in Section 1.03 above, except that upon Tenant’s taking possession of the Property shall be Tenant’s address for notice purposes. Notices to Landlord shall be debueced t specified in Section 1.02 above. All notices shall be effective upon delivery. Either party may cha address upon written notice to the other party. Section 13.07. Waivers. All waivers must be in writing and signed by the waiving party. Landlc enforce any provision of this Lease or its acceptance of rent shall not be a waiver and shall not prevent enforcing that provision or any other provision of this Lease in the future. No statement on a payme Tenant or in a letter accompanying a payment check shall be binding on Landlord. Landlord may, w notice to Tenant, negotiate such check without being bound to the conditions of such statement. Section 13.08. No Recordation. Tenant shall not record this Lease without prior written Landlord. However, either Landlord or Tenant may require that a “Short Farm” memorandum of this X by both parties be recorded. The party requiring such recording shall pay all transfer taxes and reci Section 13.09. Binding Effect; Choice of Law. This Lease binds any party who legally acquiri interest in this Lease from Landlord or Tenant. However, Landlord shall have no obligation to Ten unless the rights or interests of Tenant’s successor are acquired in accordance with the terms of this I of the state in which the Property is located shall govern this Lease. , Section 13.10. Corporate Authority; Partnership Authority. If Tenant is a corporatioi signing this Lease on behalf of Tenant represents and warrants that he has full authority to do so and binds the corporation. Within thirty (30) days after this Lease is signed, Tenant shall deliver to Land copy of a resolution of Tenant’s Board of Directors authorizing the execution of this Lease or other ei authority reasonably acceptable to Landlord. If Tenant is a partnership, each person or entity signin Tenant represents and warrants that he or it is a general partner of the partnership, that he or it has sign for the partnership and that this Lease binds the partnership and all general partners of the part shall give written notice to Landlord of any general partner’s withdrawal or addition. Within thirtj this Lease is signed, Tenant shall deliver to Landlord a copy of Tenant’s recorded statement 01 certificate of limited partnership. Section 13.11. Joint and Several Liability. All parties signing this Lease as Tenant she1 severally liable for all obligations of Tenant. Section 13.12. Force Majeure. If Landlord cannot perform any of its obligations due to Landlord’s control, the time provided for performing such obligations shall be extended by a period the duration of such events. Events beyond Landlord‘s control include, but are not limited to, acts c commotion, labor disputes, strikes, fire, flood or other casualty, shortages of labor or material, goverI or restriction and weather conditions. Section 13.13. Execution of Lease. This Lease may be executed in counterparts and, whei documents are executed. the counterparts shall constitute a single binding instrument. Landlord’s Lease to Tenant shall not be deemed to be an offer to lease and shall not be binding upon either par and delivered by both partigs. Section 13.14. SUrvivd. All representations and warranties of Landlord and Tenant s termination of this Lease. Section 14.01. Broker’s Fee. When this Lease is signed by and delivered to both Land Landlord shall pay a real estate commission to Landlord’s Broker named in Section 1.08 above, if ai enant’s Broker is nam ssion to Tenant’s Broker if F othing contained in this Lease obligation on Landlord to pay a commissio party other than Landlord’s Broker. @ 1988 Southern California Chapter of the Society of Industrial and Office Realtors? Inc. 0 0 SECTION 15: This Rental Schedule is attached to and made part that certain real estate Lease (the "Lease") dated, SEPTEMBER > 1995, between PALOMAR #46 as Landlord, and CITY OF CAHLSBAD Tenant, cover~ng property commonly known as 2075 CORTE DEL NOGf SUITE Q, CARLSBAD, CA. 92009. The terms used in this Section sh, have the same deflnltlons as set forth in the Lease. RENTAL SCHEDULE , DATE BASE RENT TOTAL RENT $1 154.00 11/01/95-10/31/96 91 154.00 91236.00 $1236.00 11/01/96-10/31/97 11/01/97-10/31/98 91319.00 $1319.00 Per City of Carlsbad, All leases are net utilities and janitorial. Initial & L e 0 0 Landlord exclusively; or 0 both Landlord and Tenant. ADDITIONAL PROVISIONS MAY DE Sm FORTH IN A RIDER OR RIDERS ATTACHED HERETO 0 BLANK SPACE BELOW. IF NO ADDtTIONAL PROVISONS ARE INSERTED. PLEASE DRAW A LINE THRO SPACE OELOW. Landlord and Tenant have signed this Lcose at the place and on tlic dotcs specified adjacent to thci below and have initialled dl Riders which arc allached to or incorporoted by reference in this Laase. “LANDLORD” PATDlAR # 46 Signed on , 19- Bt ’ By: ad executive Vice President By: Its: Tilliam H. Pdair “rnM Signed on , 19- CITY OF m at its: Mayor ..--. By: x** IN ANY REAL ESTATE TRANSACI‘ION. IT IS RECOMMENDED THAT YOU CONSULT W SIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON WI’lTI EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE POSSIDLE PRESENCE HAZARDOUS MATEKIALS AND UNDERGROUND STORAGE TANKS. THIS PRINTED FORM LEASE HAS BEEN DRAITED BY LEGAL COUNSEL AT THE DIM SOUTHERN CALIVORNIA CI-IAPTER OF TllE SOCIETY OF INDUSTRIAL AND OFFICE EA1 REPRESENTATION OR RECOMMENDATION IS MADE BY THE SOUTI4liHN CALIFORNIA CI SOCIETY OF INDUSTRIAL AND OFFICE mALTORS? INC.. ITS LEGAL COUNSEL. THE REAL E NAMED HEREIN. OR TIiElR EMPLOYEES OR AGENTS. AS TO TllE LEGAL SUFFICIENCY. LE TAX CONSEQUENCES 01; THIS LEASE OR OF THIS TRANSACTION. LANDLORD A RFTAIN LEGAL COUNSEL TO ADVISE THEM ON SUCH MAmRS AN0 SHOULD RELY SUCH LEGAL COUNSEL. @ 1988 Southern Calilornli hiptar 15 lnttial @ of tho Socioly ol Industrial 9 ond Office ReelloraF Inc. (Multi-Tenant Cmss Farm) 0 0 STANDARD LEASE ATTACHMENT REPAIRS AND/REPLACEMENT FOR ,I This Lease Attachment refers to that certain Lease dated Sm 1995 by and between PA;= #46 as Landlord and (7- rARTBAl7 as Tenant for the premises known as 2075 CORTE DEL IOSAL, Suite Q -BAD, CA 92009 The following paragraphs are hereby incorporated into aforementioned lease and made a part thereof: PARAGRAPH P 16. OUTSIDE STORAGE. Lessee hereby gra permission to Lessor to tow away and store, at Lessee's expen all automobiles or motor vehicles belonging to Lessee or 9 employees or customers, which remain in the common parking'area more than 40 consecutive hours. No automobiles or motor vehic shall be parked and left unattended in any part of the common i or service yard not striped or designated for parking. Le2 materials, supplies, equipment or machinery outside the premir whether in the open or in tanks, bin or other container devic and shall not otherwise obstruct parking, service or cor areas. , shall not store in the parking, service or common area PARAGRAPH X 17. REPAIRS AND/OR REPLACEMENT. Lessee shall its sole cost, keep and maintain the Leased Premises appurtenances and every part thereof (excepting wall and r( which Landlord agrees to repair unless damage is caused by Le: or Lessee's agents or invitees), including but not limited windows and skylights, doors and store front, floors, carpet. ceilings, interior walls and interior surfaces of exterior w. of the Leased premises, in good and sanitary order, condit repair or replacement. Lessee shall, at its sole cost, keep maintain all utilities, fixtures, hot water heater s and mechan equipment used by Lessee in good order, condition and repair shall repair or replace any asphalt paving damaged by Less agents or invitees. PARAGRAPH # 18 GLASS. Lessor shall replace, at the exp of the Lessee, any and all plate and other glass damaged or Lr from any cause whatsoever in and about the leased premises Lessee may, at its option, replace such glass at its exp provided Lessee receives approval from Lessor to perform repair. LESSOR: PALOMAR #46 BY William H. Adair, Executive Vice President 0 0 TENANT: CrryOFCARLsBAD u5 UNIT ADDRESS: 2075 CCRJE DEL NoGAt, SUITE Q CARLSEW, CA 92009 QUALITY AND/OR SIZE HEIGHT, LENGTH, ETC. ITEM: X STANDARD IMPROVEMENTS ONLY. STANDARD IMPROVEMENTS PLUS TIiOSE SHOWN BELOW. PARTITIONS : CEILINGS: FLOOR COVERING: PLUMBING: LIGHTS: SWITCHES : WALL ELEC. OUTLETS: PHONE OUTLETS: A/C OR VENT FAN: A/C HOOK-UP: WATER HEATER: PAINTING: mER: UNLESS OTIIERWISE STATED, THE IMPROVEMENTS LISTED AJlOVE WILL DE FINAL. ANY ADDITIONS WILL BE PAID FOR BY TENANT. EXiiIBIT" " IMPROVEMENTS Initia @ s Initials 0 e 6 RULES AND REGULATIONS (SUPPLEMENTAL TO LEASE PROVISIONS) PAKMAR #46 1. No sign, placecard, picture, advertisement, name or not shall be inscribed, displayed, printed or affixed on or to any p of the outside or inside of Building without the written cons of Landlord first. Landlord shall have the right to remove such sign, placecard, picture, advertisement, name or not without notice to and at the expense of Tenant. All approved signs or lettering on doors shall be printed, paint affixed or inscribed at the expense of Tenant by a person apprc of by Landlord. Tenant shall not place anything or allow anytl to be placed near the glass of any window, door, partition or \ which may appear unsightly from outside the Premises as determ: by Landlord. Landlord, however, may require a Standard Buil< window covering at all exterior windows. Tenant shall not wit1 prior written consent of Landlord cause or otherwise sunscreen window. 2. The sidewalks, exits, entrances, truck doors, man doors front doors shall not be obstructed by any of the Tenants, or by them for any purpose other than for entrances and exits their respective Premises. All loading and unloading shal: restricted to designated areas only. 3. Tenant shall not alter any lock or install any new additional locks or any bolts on any doors or windows of Premises without prior written consent from the Landlord. 4. The toilet rooms, urinals, wash bowls and other appar shall not be used for any purpose other than that for which were constructed and no foreign substance of any kind whatso shall be thrown therein and the expense of any breakage, stor or damage resulting from the violation of this rule shall be 1 by the Tenant who. or whose employees or invitee shall have ci it. 5. Tenant shall not in any way deface the Premises or any thereof. 6. Tenant shall not use, keep or permit to be used or keep foul or noxious gas or substance in the Premises, or perm: suffer the Premises to be occupied or used in a manner offel or objectionable to the Landlord or other occupants of the Bui by reason of noise, 0dor.s. and/or vibrations, or interfere i way with other Lessees or those having business therein, nor any animals or birds be brought in or kept in or about the Pre or in the Building. 7. Lessee shall not use or keep in the Premises or i~ Building any kerosene, gasoline or inflammable or combustible or material, or use any method of heating or air conditioning than that supplied by Landlord. 8. Landlord reserves the right to exclude or expel frc Premises any person who, in the judgement of the Landlc intoxicated or under the influence of liquor or drugs, or who in any manner do any act in violation of any of these Rull Regulations. 9. . No vending machines or newspaper distribution machines description shall be installed, maintained or operated upc premises without the written consent of the Landlord. .~. e Rm xa RM;uLATIoNs ( Continued) e 10. Landlord shall have the. right, to exercise without noxice without liability to Landlord to ch2nge the name and street add of the Building of which the Premiaea are a part. 11. Tenant shall not disturb, solicit, canvas any occupant of Building and shall cooperate to prevent same. 12. Without the written consent of Landlord, Tenant shall no1 the name of the Building in connection with or in promotin advertising the business of Tenant except as Tenant's address 13. All garbage and refuse ahall be placed by Tenanl containers. 14. No aerial or antenna shall be erected on the roof or extt walls of the Leased Premises, or on the grounds, without in instance, the written consent of Landlord first being obta. Any aerial or antenna so installed without such written coi ahall be subject to removal by Landlord at any time without no' 15. No loud speakers, televisions, phonographs, radios or I devises shall be used in a manner so as to be heard or seer1 ou of the leased Premises without the prior written consen Landlord. 16. The outside areas immediately adjoining the Leased Pre shall be kept clean and free from dirt and rubbish by Tenan the satisfaction of the Landlord, and Tenant shall not plat permit any obatruction or materials in such areas. No ext storage shall be allowed including without limitation, the st of motor vehicles, trucks, boats, trailers. pallets. drum: equipment of ny kind ur nature, without the permission in wr from Landlord. 17. Tenant shall use at Tenant's cost such pest extermin contractor as Landlord may direct and at such intervals as Lan may require. 18. Tenant shall nut burn any trash or garbage of any kind about the Leased Premises or the Project. 19. No residential uses. including, without limiting generality of the foregoing, residing, sleeping or cookin permitted on the Premises or anywhere on the Project. 20. No animals of any type, including, without limitins generality of the foregoing, pets, guard dogs, exotic aril reptiles or birds, are permitted on the Premises or anywhere ( Project . 21. Landlord reserved the right, by written notice to Tennr rescind, alter, add or waive any rule or regulation at an) prescribed for the building when, in Landlord's judgment., necessary, desirable or proper for the best interest o Building and its Tenants. , Ini' 4 Fage 2 of 2 ----I.--. ........ -__-__.. .... , ... , .....- .. ............... , - _I--.. ..... ... .... ...... ;.: I'i .-*.. ... a. .. .I ' .. ...... ........ I* .. _-.- ._ - '. . .. , ...... :'a:. - --. -. ....... . ...... .... .. ... --- ......... --- -- -_-..- jtti .--- - - ---._ .I -..------- ... e. ........ ' LT~NT ' ... :.* ..... '. ~~~~~~~~~ i:j li .......................... I c Q PALOMAR #46 -0 SIGN CRITERIA 1. SIGN CRITERIA This criteria establishes the uniform policies for all Tenant sign indent if ication within the PALOMAR AIRPORT BUSINESS PARK. This criteria ham been established for the purpose ot maintaining the overall appearance of the Park. Conformance will be strictly enforced. Any sign installed that doee not conform to the sign criteria, unless agreed upon by the Landlord, will be brought to conformity at the expense of the Tenant. A. General Requirements 1, A drawing of the size and shape of the approved sign is' attached. Lettering and installation shall be paid for by tho .Tenant. 2, Lundlord 6hP&& 8ppUWQ 011 Copy 8nd(OZ b9C design prior to the installation of the sign. tenant signs and the method of attachment to the building. of all requirements of this criteria. 3. Landlord shall direct the placement of all 4. Tenant shall be responsible for the fulfillment -_ E. General Specifications 1. The sign's dimensions shall be 12' high bj 2. Tenant shall be allowed one oign regardlesi 3. All sign lattering shall be white in color 4. No electrical or audible sign's ohall be allowed. 5. Upon expiration of lease, tenant shall removc sign insert only. 6. Except as provided herein. no advertisinc placards, banners, pennants, names, insignia, trademarks or other descriptive material shall be affixed or maintainec upon any automated machine, glass panes of the building landscaped areae, streets, or parking areas. 4 feet wide. of size of occupancy. No other color shall be a maximum of 4. in height. Landllbrd' s Initials ,k, (B) . .,.- 0 e . TENANT INFORMATION 1. Your new mailing address is: PALOMAR #46 2075 Q)RTE DEL YOSAT.,, SUITE Q CARISBAD, CA 92009 2. If you are new in the area you must go to City Hall to app for your business license. The address is: 1200 Elm Ave. Carlsbad, CA 619-434-2882 0 3. Utilities providing service are: Pacific Telephone 619-811-3411 San Diego Gas & Electr! 1816 Oceanside Blvd Oceanside, Ca 239-7511 / 436-2401 ' 4. The nearest Post Office is: 2772 Roosevelt Street Carlsbad, CA 729-2456 5. Please address rental payments to:PALOMAR #46 Gildred Development comp, 550 West "C" St. Ste 1E San Diego, Ca 92101-35(