AGENDA
Garden Grove City Council
Tuesday, September 10, 2024
6:30 PM
Community Meeting Center
11300 Stanford Avenue
Garden Grove, California 92840
Steve Jones
Mayor
Cindy Tran
Mayor Pro Tem – District 3
George S. Brietigam
Council Member – District 1
John R. O’Neill
Council Member – District 2
Joe DoVinh
Council Member – District 4
Stephanie Klopfenstein
Council Member – District 5
Kim B. Nguyen-Penaloza
Council Member – District 6
Meeting Assistance: Any person requiring auxiliary aids and services, due to a disability, to address the City Council, should contact the City Clerk's Office 72 hours prior to the meeting to arrange for accommodations. Phone: (714) 741-5040.
Agenda Item Descriptions: Are intended to give a brief, general description of the item. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda.
Documents/Writings: Any revised or additional documents/writings related to an item on the agenda distributed to all or a majority of the Council Members within 72 hours of a meeting, are made available for public inspection at the same time (1) in the City Clerk's Office at 11222 Acacia Parkway, Garden Grove, CA 92840, during normal business hours; (2) on the City's website as an attachment to the City Council meeting agenda; and (3) at the Council Chamber at the time of the meeting.
Public Comments: Members of the public who attend the meeting in -person and would like to address the City Council are requested to complete a pink speaker card indicating their name and address, and identifying the subject matter they wish to address. This card should be given to the City Clerk before the meeting begins. General comments are made during "Oral Communications" and should be limited to matters under consideration and/or what the City Council has jurisdiction over. Persons wishing to address the City Council regarding a Public Hear ing matter will be called to the podium at the time the matter is being considered.
Manner of Addressing the City Council: After being called by the Mayor, you may approach the podium, it is requested that you state your name for the record, and proceed to address the City Council. All remarks and questions should be addressed to the City Council as a whole and not to individual Council Members or staff members. Any person making impertinent, slanderous, or profane remarks or who becomes boisterous while addressing the City Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council any further during that meeting.
Time Limitation: When any group of persons wishes to address the City Council on the same subject matter, the Mayor may request a spokesperson be chosen to represent the group, so as to avoid unnecessary repetition. At the City Council's discretion, a limit on the total amount of time for public comments during Oral Communications and/or a further limit on the time allotted to each speaker during Oral Communications may be set.
1
PLEASE SILENCE YOUR CELL PHONES DURING THE MEETING.
AGENDA
ROLL CALL: COUNCIL MEMBER BRIETIGAM, COUNCIL MEMBER O'NEILL, COUNCIL MEMBER
DOVINH, COUNCIL MEMBER KLOPFENSTEIN, COUNCIL MEMBER NGUYEN-
PENALOZA, MAYOR PRO TEM TRAN, MAYOR JONES
INVOCATION
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
PRESENTATIONS
1. Community Spotlight in recognition of Don Schlensker and Susie Clisson for being named the 2024-2025 Garden Grove Chamber of Commerce Man and Woman of the Year.
[Item 358/2024]
2. Economic Development Update on Business Resources Available to the Garden Grove Business Community.
[Item 374/2024]
ORAL COMMUNICATIONS (TO BE HELD SIMULTANEOUSLY WITH OTHER
LEGISLATIVE BODIES)
RECESS
CONDUCT OTHER LEGISLATIVE BODIES' BUSINESS
RECONVENE
CONSENT ITEMS (CONSENT ITEMS WILL BE ACTED ON SIMULTANEOUSLY WITH
ONE MOTION UNLESS SEPARATE DISCUSSION AND/OR ACTION IS REQUESTED
BY A COUNCIL MEMBER)
3. Adoption of a Proclamation recognizing Don Schlensker and Susie Clisson for being named the 2024-2025 Garden Grove Chamber of Commerce Man and Woman of the Year. (Action Item)
[Item 363/2024]
4. Adoption of a Proclamation recognizing September 2024 as Alzheimer's Disease Awareness Month. (Action Item)
[Item 371/2024]
5. Adoption of a Proclamation adopting September 15, 2024 through October 15, 2024, as "National Hispanic Heritage Month." (Action Item) [Item 360/2024] 2
6. Adoption of a Resolution amending the City's Conflict of Interest Code pertaining to designated positions and disclosure categories. (Action Item)
[Item 369/2024]
7. Approval of a Purchase and Sale Agreement for the sale of the abandoned Water Well No. 93C located at 12281 W. Garden Grove Boulevard, Garden Grove, Assessor Parcel Number, APN No. 231-422-13. (Sale Amount: $51,000) (Action Item).
[Item 368/2024]
8. Authorization of the issuance of a purchase order to Data Center Interworks, Inc. for ten (10) new Arista Network Switches. (Cost: $67,131.36) (Action Item)
[Item 357/2024]
9. Receive and file warrants. (Action Item)
[Item 361/2024]
10. Approval to waive full reading of ordinances listed. (Action Item)
[Item 373/2024]
ITEMS FOR CONSIDERATION
11. Approval of a Lease Agreement with Farmers and Merchants Bank for office space located at 12966 Euclid Street, Garden Grove. (Action Item)
[Item 366/2024]
ORDINANCES PRESENTED FOR SECOND READING AND ADOPTION
12. Second Reading and Adoption of Ordinance No. 2957 entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE AMENDING SECTION 10.56.110 AND REPEALING SECTION 10.56.115 OF CHAPTER 10.56 OF TITLE 10 OF THE GARDEN GROVE MUNICIPAL CODE PERTAINING TO OVERSIZED VEHICLE PARKING AND RECREATIONAL VEHICLE PARKING. (Action Item)
[Item 362/2024]
MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS, AND CITY MANAGER
ADJOURNMENT
The next Regular Meeting is scheduled for Tuesday, September 24, 2024, at 5:30 p.m. in the Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California, 92840. 3 Item 363/2024
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ana Pulido
Dept:
City Manager Dept: Community Relations
Date: 9/10/2024
Subject: Adoption of a Proclamation recognizing Don Schlensker and Susie Clisson for being named the 2024-2025 Garden Grove Chamber of Commerce Man and Woman of the Year. (Action Item)
OBJECTIVE
For the City Council to adopt a Proclamation celebrating Donald Schlensker and Susie Clisson as the Garden Grove Chamber of Commerce Man and Woman of the Year for 2024-2025.
BACKGROUND/DISCUSSION
Annually, the Garden Grove Chamber of Commerce selects a man and woman who have given volunteer hours for the benefit of the community. Donald and Susie, each long time Garden Grove residents and business owners, are active with local civic organizations and both have been recognized and celebrated at the Chamber’s 117 th annual Chamber Gala Dinner and Awards Ceremony.
FINANCIAL IMPACT
There is no financial impact.
RECOMMENDATION
It is recommended that the City Council:
Adopt a Proclamation celebrating Donald Schlensker and Susie Clisson as the Chamber of Commerce Man and Woman of the Year for 2024-2025.
ATTACHMENT
Proclamation
4 Proclamation
Don Schlensker and Susie Clisson
Garden Grove Chamber of Commerce
2024 Man and Woman of the Year
WHEREAS, The Garden Grove Chamber of Commerce named Don Schlensker and Susie Clisson as the 2024 Garden Grove Man and Woman of the Year for their lifetime of volunteerism in the city of Garden Grove. Their reign began July 1, 2024, and continues through June 30, 2025; and WHEREAS, Don Schlensker, a United States Air Force veteran, operated a construction company in Garden Grove for 43 years. He has been a longtime member of the Kiwanis Club of Garden Grove and has served as treasurer, president, and Kiwanisland president; and WHEREAS, Don is an active member of the Garden Grove Elks Lodge No. 1952.
He has also been involved with various Pacifica High School booster clubs, the Garden Grove Boys and Girls Club, and Garden Grove Strawberry Festival Association; and
WHEREAS, Susie Clisson has been a resident of Garden Grove for over 30 years.
She and her husband John, are proud owners of West County Tire and Automotive Inc. and have served the community for over 45 years. In 2000, she turned her passion for floral preservation into a business venture and founded Sue’s Garden; and
WHEREAS, Susie is an active member of the Garden Grove Chamber of Commerce and the Garden Grove Rotary Club, where she is currently serving on the Women’s Division Committee and as president, respectively. She is also involved with the Leukemia and Lymphoma Society, Meals on Wheels, Northeast Garden Grove Little League, and Ocean Animal Research Response Alliance.
NOW, THEREFORE, WE, the Garden Grove City Council, do hereby proclaim Don Schlensker and Susie Clisson as the 2024 Garden Grove Chamber of Commerce Man and Woman of the Year and deeply commend their achievements and unsurpassed spirit of community.
September 10, 2024
5 Item 371/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Teresa Pomeroy
Dept:
City Manager Dept: City Clerk
Date: 9/10/2024
Subject: Adoption of a Proclamation recognizing September 2024 as Alzheimer's Disease Awareness Month. (Action Item)
OBJECTIVE
For the City Council to consider adoption of a Proclamation recognizing September 2024 as Alzheimer’s Awareness Month in Garden Grove.
BACKGROUND/DISCUSSION
City staff was contacted by Alzheimer’s Orange County requesting to submit a Proclamation for City Council consideration for the purpose of raising awareness of the impact to individuals with Alzheimer’s disease. Since 1982, Alzheimer’s Orange County has been the center for Alzheimer’s resources for those suffering from Alzheimer’s or dementia. With more than 164,000 people in Orange County affected by dementia or mild cognitive impairment, Alzheimer’s Orange County’s mission is to serve Orange County peo ple with memory loss, frail seniors, and those that support them.
FINANCIAL IMPACT
There is no financial impact.
RECOMMENDATION
It is recommended that the City Council:
Adopt a Proclamation recognizing September 2024 as Alzheimer’s Disease Awareness Month in Garden Grove.
ATTACHMENT(S)
1. Proclamation
6 PROCLAMATION
WORLD ALZHEIMER’S AWARENESS MONTH
SEPTEMBER 2024
WHEREAS, Alzheimer’s disease was first diagnosed in 1906 as a progressive neurodegenerative brain disorder; and
WHEREAS, the 2024 theme for raising global awareness in order to mitigate the stigma of dementia and Alzheimer’s disease is: “Time to act on dementia, Time to act on Alzheimer’s”; and
WHEREAS, Alzheimer’s disease is the most common cause of dementia that tragically robs individuals of their moments and leads to progressive mental and physical impairments, and every 66 seconds someone in the U.S. receives an Alzheimer’s diagnosis; and
WHEREAS, more than 164,000 residents in Orange County and over 6 million Americans are currently living with Alzheimer’s disease, the third leading cause of death in Orange County and the sixth leading cause of death in the nation; and WHEREAS, the global cost of Alzheimer’s disease is over $6 billion, and by 2050, the disease is expected to cost over $1 trillion in the United States alone; and WHEREAS, Caregivers and family members often are impacted by and experience emotional and financial difficulties taking care of loved ones with Alzheimer’s; and
WHEREAS, since 1982, the mission of Alzheimer's Orange County is to provide hands-on care and support, information, referrals, education and resources for families in Orange County and surrounding areas; and WHEREAS, the Nation, the State of California and the City of Garden Grove observe World Alzheimer’s Month during the month of September, and World Alzheimer’s Day on September 21st.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, does hereby proclaim the month of September 2024, as World Alzheimer’s Awareness Month in the City of Garden Grove.
September 10, 2024
7 Item 360/2024
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Teresa Pomeroy
Dept:
City Manager Dept: City Clerk
Date: 9/10/2024
Subject: Adoption of a Proclamation adopting September 15, 2024 through October 15, 2024, as "National Hispanic Heritage Month." (Action Item)
OBJECTIVE
For the City Council to adopt a Proclamation recognizing September 15, 2024 through October 15, 2024, as National Hispanic Heritage Month.
BACKGROUND/DISCUSSION
At the September 11, 2018 City Council meeting, Council Member Nguyen -Penaloza introduced a Proclamation declaring National Hispanic Heritage Month, which was adopted unanimously by the City Council. Since the first adoption of a Proclamation celebrating National Hispanic Heritage Month by the City Council in 2018, a proclamation has been brought back every year to continue to celebrate and memorialize Hispanic heritage.
FINANCIAL IMPACT
There is no financial impact.
RECOMMENDATION
It is recommended that the City Council:
Adopt a Proclamation recognizing September 15, 2024 – October 15, 2024, as Hispanic Heritage Month.
ATTACHMENT
Proclamation
8 Proclamation
National Hispanic Heritage Month
WHEREAS, September 15, 2024 to October 15, 2024, is recognized nationally as Hispanic Heritage Month;
WHEREAS, The 2024 Hispanic Heritage Month observance theme is “Pioneros del cambio: Dando forma al future juntos” – “Pioneers of Change:
Shaping the Future Together;
WHEREAS, with the latest 2020 Census there are more than 13 million people of Hispanic Heritage in California, and more than 64,000 people in Garden Grove;
WHEREAS, the Latino/Latina community is a resilient and integral part of Garden Grove, with residents and business owners alike who are members of a proud heritage;
WHEREAS, Latinas/Latinos have made innumerable contributions to the Garden Grove community in business, law, politics, education, community service, the arts, government service and other fields and it is essential for the City to recognize and celebrate Hispanic Heritage Month; and
WHEREAS, the day of September 15 is significant because it is the anniversary of independence for Latin American countries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico and Chile celebrate their independence days on September 16 and 18 respectively.
NOW, THEREFORE BE IT PROCLAIMED that the City Council of the City of Garden Grove does hereby celebrate and recognize September 15, through October 15, 2024 to be Hispanic Heritage Month.
September 10, 2024
9 Item 369/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Teresa Pomeroy
Dept:
City Manager Dept: City Clerk
Date: 9/10/2024
Subject: Adoption of a Resolution amending the City's Conflict of Interest Code pertaining to designated positions and disclosure categories. (Action Item)
OBJECTIVE
For the City Council to rescind Resolution No. 9822 -23 and adopt the amended Resolution pertaining to the City’s Conflict of Interest Code for designated positions.
BACKGROUND/DISCUSSION
The City Council adopted a Conflict of Interest Code on April 14, 1997, which incorporated the Model Conflict of Interest Code established by the California Fair Political Practices Commission. The code requires biennial review on even-numbered years. A reorganization prompted amending the Conflict of Interest Code, which was adopted under Resolution No. 9822-23. The attachment is an updated Resolution recommended to be adopted which reflects changes to the Salary Schedule.
FINANCIAL IMPACT
There is no financial impact.
RECOMMENDATION
It is recommended that the City Council:
Rescind Resolution No. 9822-23; and
Adopt the attached Resolution amending the City’s Conflict of Interest Code pertaining to designated positions and disclosure categories.
ATTACHMENT
Resolution
10 GARDEN GROVE CITY COUNCIL
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE
AMENDING THE CONFLICT OF INTEREST CODE OF THE CITY OF GARDEN GROVE
PERTAINING TO DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES AND RESCINDING RESOLUTION NO. 9775-22
WHEREAS, pursuant to the provisions of the Political Reform Act and Government Code Section 87300, et seq., the City adopted a Conflict of Interest Code on April 14, 1997, incorporating the Model Conflict of Interest Code promulgated by the California Fair Political Practices Commission, Title 2 California Code of Regulations, Section 18730, by adoption of Resolution No. 7951-97;
WHEREAS, amendments by the Fair Political Practices Commission (FPPC) to the model conflict of interest code are automatically applicable to the City by virtue of the City’s adoption of the model conflict of interest code; and
WHEREAS, it is necessary to update the list of designated positions and disclosure categories pertaining to officials and employees subject to the City’s Conflict of Interest Code.
NOW, THEREFORE, BE IT RESOLVED as follows:
Section 1. The City of Garden Grove does hereby adopt the list of designated employees and disclosure categories pursuant to Exhibits “A” and “B” attached herein and made a part hereof by this reference. Said Exhibits shall replace Exhibits “A” and “B” of Resolution No. 7951-97 pertaining to the designated officials and employees and the disclosure categories of the City’s Conflict of Interest Code. A copy of the Model Code, FPPC Regulation 18730 as last amended by the Fair Political Practices Commission and effective June 11, 2021, is attached for reference as Exhibit “C.”
Section 2. Resolution No. 9775-22 is hereby repealed.
11 EXHIBIT “A”
CONFLICT OF INTEREST CODE FILINGS
DESIGNATED OFFICERS AND EMPLOYEES
DEPARTMENT/POSITIONS
CATEGORY
CITY ATTORNEY*
Assistant City Attorney 1 & 2
Deputy City Attorney 1 & 2
CITY MANAGER*
Assistant City Manager/Deputy City Manager 1 & 2
City Clerk 3,4, & 5
Deputy City Clerk 6
Principal Administrative Analyst 6
Senior Administrative Analyst 6
Senior Program Specialist 6
COMMUNITY DEVELOPMENT
Community Development Director 1 & 2
Deputy Director/Building Official 1, 2, 3, 4, & 5
Deputy Building Official 2, 3, 4, & 5
Building Inspector 4 & 5
Code Enforcement Supervisor 2, 3, 4, & 5
Permit Center Supervisor 2, 3, 4, & 5
Plan Check Engineer 2, 3, 4, & 5
Planning Services Manager 2, 3, 4, & 5
Project Planner 2, 3, 4, & 5
Senior Administrative Analyst 2, 3, 4, & 5
Senior Planner 2, 3, 4, & 5
Senior Program Specialist 2, 3, 4, & 5
Senior Project Planner 2, 3, 4, & 5
Senior Building Inspector 3, 4, & 5
Supervising Building Inspector 2, 3, 4, & 5
12 COMMUNITY SERVICES
Community Services Director
1 & 2
Community Services Deputy Director 1 & 2
Division Manager 5
Community Services Supervisor 6
Senior Program Specialist 2, 3, 4, & 5
ECONOMIC DEVELOPMENT & HOUSING
Economic Development & Housing Director
1 & 2
Deputy Director 1 & 2
Division Manager 2, 3, 4, & 5
Housing Supervisor 2, 3, 4, & 5
Project Planner 2, 3, 4, & 5
Senior Administrative Analyst 2, 3, 4, & 5
Senior Project Planner 2, 3, 4, & 5
Senior Real Property Agent 2, 3, 4, & 5
FINANCE
Finance Director 1 & 2
Finance Deputy Director 1 & 2
Accounting Supervisor 5
Senior Accountant 5
Business Tax Supervisor 3, 4 & 5
Division Manager 3, 4 & 5
Payroll Supervisor 5
Principal Administrative Analyst 3, 4 & 5
Senior Administrative Analyst 3, 4 & 5
Senior Program Specialist 3, 4, & 5
Utilities Revenue Supervisor 3, 4 & 5
HUMAN RESOURCES
Human Resources Director 1 & 2
Human Resources Deputy Director 1 & 2
Principal Human Resource Analyst 6
INFORMATION TECHNOLOGY
Information Technology Director 1 & 2
Information Technology Deputy Director 1 & 2
Cybersecurity Officer 6
Network Administrator 5
Senior Administrative Analyst 5
Senior Information Technology Analyst 5
13 POLICE
Police Chief 1 & 2
Police Captain 6
Public Safety Fiscal Analyst 3, 4 & 5
Emergency Operations Manager 3, 4 & 5
PUBLIC WORKS
Public Works Director 1 & 2
Public Works Deputy Director 1 & 2
Assistant Engineer 3, 4 & 5
Associate Engineer 4 & 5
City Engineer 3, 4 & 5
Construction Inspector 4 & 5
Custodial Supervisor 4 & 5
Division Manager 4 & 5
Environmental Services Manager 3, 4 & 5
Principal Administrative Analyst 3, 4 &5
Project Engineer 4 & 5
Public Works Foreman 4 & 5
Public Works Supervisor 4 & 5
Senior Administrative Analyst 2, 3, 4 & 5
Senior Civil Engineer 3, 4 & 5
Senior Program Specialist 2, 3, 4 & 5
Traffic Engineer 3, 4 & 5
COMMISSIONS/BOARDS
Downtown Commission Members 2, 3, 4 & 6
Housing Authority Board Members 2, 3, 4 & 6
*Council Members, City Manager, City Attorney, City Treasurer, Planning Commissioners, and other public officials who manage public investments are required to file Statements of Economic Interests pursuant to Government Code Section 87200 et seq.; therefore, they are not included as designated positions in this Exhibit. **Consultants, as defined below, shall disclose pursuant to categories 1 & 2 subject to the following limitations: The City Manager may determine in writing that a particular consultant, although meeting the definition below, is hired to perform a range of duties that are limited in scope and thus is not required to comply with the disclosure requirements described herein. Such determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The determination of the City Manager is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. Nothing herein excuses any such consultant from any other provision of the Conflict of Interest Code.
“Consultants” are defined pursuant to FPPC Regulation 18700.3 (a) as follows:
14 “Consultant” means an individual who, pursuant to a contract with a state or local government agency:
(A) Makes a governmental decision whether to:
1. Approve a rate, rule, or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;
4. Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract that requires agency approval;
5. Grant agency approval to a contract that requires agency approval and to which the agency is a party, or to the specifications for such a contract;
6. Grant agency approval to a plan, design, report, study, or similar item;
7. Adopt, or grant agency approval of, policies, standards, or guidelines for the agency, or for any subdivision thereof; or
(B) Serves in a staff capacity with the agency and in that capacity participates in making a governmental decision as defined in Regulation 18702.2 or performs the same or substantially all the same duties for the agency that would otherwise be performed by an individual holding a position specified in the agency's Conflict of Interest Code under Government Code Section 87302.
15 EXHIBIT “B”
DISCLOSURE CATEGORIES
CATEGORY 1:
All investments, business positions, and sources of income.
CATEGORY 2:
All interests in real property within the City or within 500 feet of the City’s boundaries.
CATEGORY 3:
All investments, business positions, and sources of income subject to the regulatory, permit, or licensing authority of the designated official’s commission or employee’s department.
CATEGORY 4:
Investments in business entities, business positions, and sources of income, which engage in land development, construction or the acquisition or sale of real property.
CATEGORY 5:
Investments in business entities, business positions, and sources of income of the type, which provide services, supplies, materials, machinery, or equipment utilized by the City.
CATEGORY 6:
Investments in business entities, business positions, and sources of income of the type which provide services, supplies, materials, machinery, or equipment utilized by the designated official’s commission or employee’s department. 16 1
(Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations)
§ 18730. Provisions of Conflict of Interest Codes.
(a) Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Section 87300 or the amendment of a conflict of interest code within the meaning of Section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Section 87100, and to other state or local laws pertaining to conflicts of interest.
(b) The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows:
(1) Section 1. Definitions.
The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (Regulations 18110, et seq.),
and any amendments to the Act or
regulations, are incorporated by reference into this conflict of interest code. (2) Section 2. Designated Employees. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or EXHIBIT "C"
17 2
participate in the making of decisions which may foreseeably have a material effect on economic interests.
(3) Section 3. Disclosure Categories.
This code does not establish any disclosure obligation for those designated employees who are also specified in Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Sections 87200, et seq.
In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Section 87200; and (C) The filing officer is the same for both agencies. [FN1] Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in the employee's statement of economic interests those economic interests the employee has which are of the kind described in the disclosure categories to which the employee is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee's disclosure categories are the kinds of economic interests which the employee foreseeably can affect materially through the conduct of the employee's office. 18 3
(4) Section 4. Statements of Economic Interests: Place of Filing.
The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code. [FN2] (5) Section 5. Statements of Economic Interests: Time of Filing. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April
1. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following the person's return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that the person is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of the person's military status.
(D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office.
(5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. 19 4
Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided the person did not make or participate in the making of, or use the person's position to influence any decision and did not receive or become entitled to receive any form of payment as a result of the person's appointment. Such persons shall not file either an assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation the person did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. (6) Section 6. Contents of and Period Covered by Statements of Economic Interests. (A) Contents of Initial Statements.
Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code.
(B) Contents of Assuming Office Statements.
Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 20 5
months prior to the date of assuming office or the date of being appointed or nominated, respectively.
(C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to Regulation 18754. (D) Contents of Leaving Office Statements.
Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.
(7) Section 7. Manner of Reporting.
Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information:
(A) Investment and Real Property Disclosure.
When an investment or an interest in real property [FN3] is required to be reported, [FN4] the statement shall contain the following:
1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;
3. The address or other precise location of the real property; 21 6
4. A statement whether the fair market value of the investment or interest in real property equals or exceeds $2,000, exceeds $10,000, exceeds $100,000, or exceeds $1,000,000. (B) Personal Income Disclosure. When personal income is required to be reported, [FN5] the statement shall contain:
1. The name and address of each source of income aggregating $500 or more in value, or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source;
2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was $1,000 or less, greater than $1,000, greater than $10,000, or greater than $100,000;
3. A description of the consideration, if any, for which the income was received;
4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received;
5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported, [FN6] the statement shall contain:
1. The name, address, and a general description of the business activity of the business entity;
2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than $10,000. 22 7
(D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which the employee is a director, officer, partner, trustee, employee, or in which the employee holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.
(8) Section 8. Prohibition on Receipt of Honoraria.
(A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on the member's or employee's statement of economic interests. (B) This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. (C) Subdivisions (a), (b), and (c) of Section 89501 shall apply to the prohibitions in this section.
(D) This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Section 89506. (8.1) Section 8.1. Prohibition on Receipt of Gifts in Excess of $590. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $590 in a calendar 23 8
year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on the member's or employee's statement of economic interests.
(B) This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. (C) Subdivisions (e), (f), and (g) of Section 89503 shall apply to the prohibitions in this section.
(8.2) Section 8.2. Loans to Public Officials.
(A) No elected officer of a state or local government agency shall, from the date of the election to office through the date that the officer vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer's agency has direction and control.
(B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official's agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of the election to office through the date that the officer vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. 24 9
This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while the official holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer or candidate for elective office.
2. Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
3. Loans from a person which, in the aggregate, do not exceed $500 at any given time.
4. Loans made, or offered in writing, before January 1, 1998. 25 10
(8.3) Section 8.3. Loan Terms.
(A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of the officer's election to office through the date the officer vacates office, receive a personal loan of $500 or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected officer.
2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code.
(8.4) Section 8.4. Personal Loans.
(A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances:
1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.
26 11
2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of $100 or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than $250 during the previous 12 months.
(B) This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer or a candidate for elective office.
2. A loan that would otherwise not be a gift as defined in this title.
3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due.
4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action.
Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.
5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code.
(9) Section 9. Disqualification.
27 12
No designated employee shall make, participate in making, or in any way attempt to use the employee's official position to influence the making of any governmental decision which the employee knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of the official's immediate family or on:
(A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more;
(B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $590 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made.
(9.3) Section 9.3. Legally Required Participation.
No designated employee shall be prevented from making or participating in the making of any decision to the extent the employee's participation is legally required for the decision to be made.
The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make the employees' participation legally required for purposes of this section. 28 13
(9.5) Section 9.5. Disqualification of State Officers and Employees.
In addition to the general disqualification provisions of section 9, no state administrative official shall make, participate in making, or use the official's position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of the official's immediate family has, within 12 months prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1,000 or more. (10) Section 10. Disclosure of Disqualifying Interest.
When a designated employee determines that the employee should not make a governmental decision because the employee has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. (11) Section 11. Assistance of the Commission and Counsel.
Any designated employee who is unsure of the duties under this code may request assistance from the Fair Political Practices Commission pursuant to Section 83114 and Regulations 18329 and 18329.5 or from the attorney for the employee's agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. (12) Section 12. Violations.
This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political 29 14
Reform Act, Sections 81000-91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Section 87100 or 87450 has occurred may be set aside as void pursuant to Section 91003.
___________________
1 Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Section 81004. 2 See Section 81010 and Regulation 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater.
30 15
5 A designated employee's income includes the employee's community property interest in the income of the employee's spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer.
Credits
NOTE: Authority cited: Section 83112, Government Code. Reference: Sections 87103(e), 87300-87302, 89501, 89502 and 89503, Government Code.
HISTORY
1. New section filed 4-2-80 as an emergency; effective upon filing (Register 80, No. 14).
Certificate of Compliance included.
2. Editorial correction (Register 80, No. 29).
3. Amendment of subsection (b) filed 1-9-81; effective thirtieth day thereafter (Register 81, No. 2).
4. Amendment of subsection (b)(7)(B)1. filed 1-26-83; effective thirtieth day thereafter (Register 83, No. 5).
5. Amendment of subsection (b)(7)(A) filed 11-10-83; effective thirtieth day thereafter (Register 83, No. 46).
6. Amendment filed 4-13-87; operative 5-13-87 (Register 87, No. 16).
7. Amendment of subsection (b) filed 10-21-88; operative 11-20-88 (Register 88, No. 46). 31 16
8. Amendment of subsections (b)(8)(A) and (b)(8)(B) and numerous editorial changes filed 8-28- 90; operative 9-27-90 (Reg. 90, No. 42).
9. Amendment of subsections (b)(3), (b)(8) and renumbering of following subsections and amendment of NOTE filed 8-7-92; operative 9-7-92 (Register 92, No. 32).
10. Amendment of subsection (b)(5.5) and new subsections (b)(5.5)(A)-(A)(2) filed 2-4-93; operative 2-4-93 (Register 93, No. 6).
11. Change without regulatory effect adopting Conflict of Interest Code for California Mental Health Planning Council filed 11-22-93 pursuant to title 1, section 100, California Code of Regulations (Register 93, No. 48). Approved by Fair Political Practices Commission 9-21-93.
12. Change without regulatory effect redesignating Conflict of Interest Code for California Mental Health Planning Council as chapter 62, section 55100 filed 1-4-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 1).
13. Editorial correction adding HISTORY 11 and 12 and deleting duplicate section number (Register 94, No. 17).
14. Amendment of subsection (b)(8), designation of subsection (b)(8)(A), new subsection (b)(8)(B), and amendment of subsections (b)(8.1)-(b)(8.1)(B), (b)(9)(E) and NOTE filed 3-14- 95; operative 3-14-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 11).
15. Editorial correction inserting inadvertently omitted language in footnote 4 (Register 96, No. 13).
16. Amendment of subsections (b)(8)(A)-(B) and (b)(8.1)(A), repealer of subsection (b)(8.1)(B), and amendment of subsection (b)(12) filed 10-23-96; operative 10-23-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 43). 32 17
17. Amendment of subsections (b)(8.1) and (9)(E) filed 4-9-97; operative 4-9-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15).
18. Amendment of subsections (b)(7)(B)5., new subsections (b)(8.2)-(b)(8.4)(C) and amendment of NOTE filed 8-24-98; operative 8-24-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 35).
19. Editorial correction of subsection (a) (Register 98, No. 47).
20. Amendment of subsections (b)(8.1), (b)(8.1)(A) and (b)(9)(E) filed 5-11-99; operative 5-11- 99 pursuant to Government Code section 11343.4(d) (Register 99, No. 20).
21. Amendment of subsections (b)(8.1)-(b)(8.1)(A) and (b)(9)(E) filed 12-6-2000; operative 1-1- 2001 pursuant to the 1974 version of Government Code section 11380.2 and Title 2, California Code of Regulations, section 18312(d) and (e) (Register 2000, No. 49).
22. Amendment of subsections (b)(3) and (b)(10) filed 1-10-2001; operative 2-1-2001.
Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No. 2).
23. Amendment of subsections (b)(7)(A)4., (b)(7)(B)1.-2., (b)(8.2)(E)3., (b)(9)(A)-(C) and footnote 4. filed 2-13-2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No. 7).
24. Amendment of subsections (b)(8.1)-(b)(8.1)(A) filed 1-16-2003; operative 1-1-2003.
Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of 33 18
Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2003, No. 3).
25. Editorial correction of HISTORY 24 (Register 2003, No. 12).
26. Editorial correction removing extraneous phrase in subsection (b)(9.5)(B) (Register 2004, No. 33).
27. Amendment of subsections (b)(2)-(3), (b)(3)(C), (b)(6)(C), (b)(8.1)-(b)(8.1)(A), (b)(9)(E) and (b)(11)-(12) filed 1-4-2005; operative 1-1-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 1).
28. Amendment of subsection (b)(7)(A)4. filed 10-11-2005; operative 11-10-2005 (Register 2005, No. 41).
29. Amendment of subsections (a), (b)(1), (b)(3), (b)(8.1), (b)(8.1)(A) and (b)(9)(E) filed 12-18- 2006; operative 1-1-2007. Submitted to OAL pursuant to Fair Political Practices Commission v.
Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2006, No. 51).
30. Amendment of subsections (b)(8.1)-(b)(8.1)(A) and (b)(9)(E) filed 10-31-2008; operative 11- 30-2008. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2008, No. 44).
34 19
31. Amendment of section heading and section filed 11-15-2010; operative 12-15-2010.
Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2010, No. 47).
32. Amendment of section heading and subsections (a)-(b)(1), (b)(3)-(4), (b)(5)(C), (b)(8.1)- (b)(8.1)(A) and (b)(9)(E) and amendment of footnote 1 filed 1-8-2013; operative 2-7-2013.
Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2013, No. 2).
33. Amendment of subsections (b)(8.1)-(b)(8.1)(A), (b)(8.2)(E)3. and (b)(9)(E) filed 12-15-2014; operative 1-1-2015 pursuant to section 18312(e)(1)(A), title 2, California Code of Regulations.
Submitted to OAL for filing and printing pursuant to Fair Political Practices Commission v.
Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2014, No. 51).
34. Redesignation of portions of subsection (b)(8)(A) as new subsections (b)(8)(B)-(D), amendment of subsections (b)(8.1)-(b)(8.1)(A), redesignation of portions of subsection (b)(8.1)(A) as new subsections (b)(8.1)(B)-(C) and amendment of subsection (b)(9)(E) filed 12- 1-2016; operative 12-31-2016 pursuant to Cal. Code Regs. tit. 2, section 18312(e). Submitted to 35 20
OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2016, No. 49).
35. Amendment of subsections (b)(8.1)-(b)(8.1)(A) and (b)(9)(E) filed 12-12-2018; operative 1- 11-2019 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing and printing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2018, No. 50).
36. Amendment of subsections (b)(8.1)-(8.1)(A) filed 12-23-2020; operative 1-1-2021 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2020, No. 52).
37. Amendment of subsections (b)(3)(C), (b)(5)(C), (b)(5.5), (b)(5.5)(A)(2), (b)(7)(D), (b)(8)(A), (b)(8.1)(A), (b)(8.2)(A), (b)(8.2)(C)-(D), (b)(8.3)(A), (b)(9), (b)(9.3), (b)(9.5), (b)(10) and (b)(11) and footnote 5 filed 5-12-2021; operative 6-11-2021 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate 36 21
District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2021, No. 20).
38. Amendment of subsections (b)(8.1)-(b)(8.1)(A) and (b)(9)(E) filed 12-20-2022; operative 1- 19-2023 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2022, No. 51).
37 Item 368/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 9/10/2024
Subject: Approval of a Purchase and Sale Agreement for the sale of the abandoned Water Well No. 93C located at 12281 W. Garden Grove Boulevard, Garden Grove, Assessor Parcel Number, APN No. 231-422-13. (Sale Amount: $51,000) (Action Item)
OBJECTIVE
For City Council to consider approval of a Purchase and Sale Agreement by and between the City of Garden Grove (the “City”) and Carlos Jimenez (the “Buyer”) for the sale of the abandoned Water Well No. 93C located at 12281 West Garden Grove Boulevard, Gard en Grove, Assessor Parcel Number, APN No. 231-422-13 (the “Site”), in the amount of $51,000.
BACKGROUND
The City’s Public Works Water Division determined that Water Well No. 93C is no longer in use, is no longer needed, and has been abandoned and capped. Since abandonment, the Site has experienced trespassing, vandalism, and numerous debris clean-ups. On July 25, 2023, the City Council declared the Site as “Exempt Surplus Property” pursuant to State of California Surplus Land Act. On August 10, 2023, the Department of Housing and Community Development confirmed that pursuant to the Surplus Land Act, the Site qualified as “Exempt Surplus Land” under Government Code section 54221, subdivision (f)(1)(B) (see attached letter).
DISCUSSION
The Site has been surveyed and appraised at $51,000. It contains an active , below grade City waterline. An easement will be reserved to allow the City access for future maintenance of the waterline and the capped well.
Under Government Code section 37350, the City is autho rized to dispose of real property.
The disposition will benefit the City by relieving the City of maintenance and security liabilities associated with the abandoned water well.
Approval of the Purchase and Sale Agreement will facilitate the opening of escrow, execution of all necessary documents, and the transfer of payment to the City and title to the Buyer.
38 Item 368/2024
FINANCIAL IMPACT
There is no impact to the General Fund. The proceeds from sale of the Site will generate $51,000 in revenue to the City’s Water Division.
RECOMMENDATION
It is recommended that the City Council:
Approve the Purchase and Sale Agreement for the sale of the former Water Well No. 93C Site located at 12281 West Garden Grove Boulevard, Garden Grove, Assessor Parcel Number, APN No. 231-422-13, for $51,000; and
Authorize the City Manager, or designee, to execute the Purchase and Sale Agreement, accept the water line easement, and any other documents necessary to effectuate the transaction, on behalf of the City.
By: Paul Guerrero, Senior Real Property Agent
ATTACHMENT(S)
1. Purchase and Sale Agreement
2. Water Line Easement
3. HCD Letter
39 APN: 231-422-13
PROJECT: Water Well Site No. 93 Parcel Sale
REAL ESTATE PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT (“Agreement”) is entered into this day of September , 2024 (“Agreement Date”) by and between the City of Garden Grove, a California municipal corporation ("Seller"), and the undersigned buyer (s) Carlos Jimenez, ("Buyer") for acquisition by Buyer of certain real property described below.
IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS:
1. Agreement to Sell and Purchase Property. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the cons ideration set forth in this Agreement, that certain real property (“Property” ) situated at 12281 Garden Grove Boulevard (APN 231 -422-13) in the City of Garden Grove, County of Orange, State of California, and legally described in Exhibit “A” attached heret o and incorporated herein by reference.
2. Purchase Price/Settlement Price. The total purchase price, payable in cash through escrow, shall be the sum of Fifty-One Thousand Dollars ($ 51,000.00) (the “Purchase Price”). Consideration for this Agreement includes the grant of easement and conditions described in Section 3(D) below and Exhibit “D.”
3. Conveyance of Title . Seller agrees to convey by Grant Deed to Buyer marketable fee simple title to the Property free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases and taxes EXCEPT:
A. Real property taxes for the then current tax year, which are a lien not yet due and payable.
B. All title exceptions set forth in the Preliminary Title Report obtained pursuant to Section 4.1 below.
C. Easements or rights -of-way over the Property for public or quasi -public utility and/or public street purposes.
D. Covenants, Conditions, and Restrictions relating construction over easement as further described in the separate Easement Deed attached hereto as Exhibit “D.”
4. Title Report and Title Insurance Policy.
4.1 Preliminary Title Report. Seller agrees to obtain and provide Buyer with a Preliminary Title Report issued by First American Title Company on the property over, under, across and/or upon which the Property lies, together with legible copies 40 of all documents, whether recorded or unrecorded, evidencing exceptions to title referred to therein within ten (10) calendar days of the Agreement Date. Seller agrees to pay all costs of said Preliminary Title Report.
4.2 Title Insurance Policy. Escrow Agent shall, following recording of deed to Buyer, provide Buyer with a standard owner's CLTA (or extended coverage ALTA, at the request of Buyer) policy of title insurance in the amount of the Purchase Price, issued by First American Title Insurance Company, showing fee simple title to the Property vested in Buyer subject only to the exceptions set forth in Paragraph 3 above and the printed exceptions and stipulations in the policy. Seller agrees to pay the premium charged for the standard owner's CLTA policy, and Buyer shall pay the additional cost for an extended coverage ALTA policy if Buyer elects to receive such a policy and for any other additional costs, including the costs of any endorsements and additional coverage.
5. Escrow. Seller agrees to open an escrow in accordance with this Agreement at __________ [Name, address ] ("Escrow Agent") . This Agreement constitutes the joint escrow instructions of Buyer and Seller, and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest possible time.
5.1 Grant Deed. Seller shall execute and deliver a Grant Deed (the “Grant Deed”) to the Escrow Agent at least three (3) days prior to the close of escrow. Buyer agrees to deposit the Purchase Price/Settlement Price and Easement Deed as described in Section 2 above upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments or funds as may be necessary to complete this transaction.
5.2 Insurance. Insurance policies for fire or casualty are not to be transferred, and Seller will cancel its own policies after close of escrow.
5.3 Escrow Account. All funds received in this escrow shall be deposited with other escrow funds in a general insured escrow account(s) and may be transferred to any other escrow trust account in any State or National Bank doing business in the State of California . All disbursements shall be made by check or by wire from the account.
6. Tax Adjustment Procedure.
ESCROW AGENT IS AUTHORIZED AND IS INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE:
6.1 Delinquent Taxes. Pay and charge Seller for any unpaid delinquent property taxes and/or penalties and interest thereon, and for any delinquent assessments or bonds against the Property.
41 6.2 Proration. Taxes and/or assessments shall be pro-rated as of the date of the close of escrow.
7. Escrow Agent Authorization.
ESCROW AGENT IS AUTHORIZED TO, AND SHALL:
7.1 Escrow Fees, Charges and Costs . Seller agrees to pay all of the usual fees, charges and costs which arise in this escrow.
7.2 Disbursement. Disburse funds and deliver the Grant Deed when conditions of this escrow have been fulfilled by Buyer and Seller.
7.3 Close of Escrow . The term “close of escrow ,” if and where written in these instructions, shall mean the date the Grant Dee d, Easement Deed, and other necessary instruments of conveyance are recorded in the office of the Orange County R ecorder. Recordation of instruments delivered through this escrow is authorized, if necessary or proper in the issuance of the policy of title insurance.
7.4 Time Limits. All time limits within which any matter specified is to be performed may be extended by mutual agreement of the parties. Any amendment of, or supplement to, any instructions must be in writing.
7.5 Time of the Essence . TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE.
If this escrow is not in condition to close within 45 days from date of these instructions, any party who then shall have fully complied with its instructions may, in writin g, demand the return of its money or property; but if neither party complied, no demand for return shall be recognized until five (5) days after Escrow Agent shall have mailed copies of demand to all other parties at the respective addresses shown in these escrow instructions, and if any objections are raised within the five (5) day period, Escrow Agent is authorized to hold all papers and documents until instructed by a court of competent jurisdiction or by mutual instructions. If no demands are made, Escrow Agent shall proceed with closing of this escrow on or before 75 days from the execution of this Agreement.
7.6 Escrow Agent Responsibility. The responsibility of the Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 18, 19, 26, and 27 and to its liability under any policy of title insurance issued in regard to this escrow.
8. Buyer’s Conditions Precedent to Close of Escrow . The obligation of the Buyer to complete the purchase of the Property is subject to the satisfaction of the following conditions:
42 8.1 Buyer shall have received and approved the Preliminary Title Report and all the exceptions set forth therein. Buyer shall deliver notice of approval or disapproval to Seller within seven (7) calendar days after receipt of the Preliminary Title Report.
Failure of Buyer to disapprove the Preliminary Title Report within seven days shall be deemed approval of the Preliminary Title Report.
8.2 Seller shall deliver through escrow an executed and recordable Grant Deed sufficient to convey fee title to the Buyer as set forth in Section 5.1.
8.3 Seller shall deliver through escrow a duly executed Non -Foreign Transferor Declaration.
8.4 Seller shall deliver through escrow such funds and documents as are necessary to comply with Seller’s obligations under this Agreement.
8.5 Seller is not in default of any of its obligations under the Terms of this Agreement.
8.6 Escrow Agent has committed to deliver to Buyer a title insurance policy as required by Section 4 hereof.
9. Seller’s Conditions Precedent to Close of Escrow . The obligation of Seller to complete the sale of the Property is subject to the satisfaction of the following conditions:
9.1 The Buyer is not in default of any of its obligations under the terms of this Agreement.
9.2 The Buyer shall have deposited with the Escrow Agent immediately available funds in the amount of the Purchase Price and Settlement Price and the Buyer’s costs described herein.
9.3 The Buyer shall deliver through escrow an executed and recordable Easement Deed conveying the water line easements and conditions as set forth in Section 5.1.
10. Failure of Conditions Precedent to Closing . In the event any of the con ditions set forth in Sections 8 and 9, above, are not timely satisfied or waived, for any reason other than the default of Buyer or Seller under this Agreement:
10.1 This Agreement, the Escrow, and the rights and obligations of Buyer and Seller shall terminate.
10.2 In such event, Seller, Buyer, and Escrow Agent shall promptly return all documents and funds which are held by them on the date of said termination to the party who delivered or deposited them hereunder (reduced by, in the case of the party otherwise entitled to such funds, the amount of any cancellation fees required to be paid by such party under Section 11 below).
43 11. Cancellation Fees and Expenses. In the event Escrow terminates because of the notice or failure to satisfy any condition for a reason other than the default of Buyer or Seller under this Agreement, the cancellation charges required to be paid by and to Escrow Agent and the Title Company shall be borne wholly by Seller, and all other charges shall be borne by the party incurring them. In the event Escrow terminates because of the default of Buyer or of Seller, the defaulting party shall be responsible for all cancellation charges require d to be paid by and to Escrow Agent and Title Company.
12. Permission to Enter on Premises. Seller hereby grants to Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to close of escrow for the purpose of making any inspections deemed necessary at the discretion of the Buyer.
13. Warranties, Representations and Covenants of Seller . Seller hereby warrants, represents and/or covenants to Buyer that:
13.1 Pending Claims . To the best of Seller’s knowledge, there are no actions, suits, claims, legal proceedings, or any other proceedings affecting the Property or any portion thereof, at law, or in equity before any court or governmental entity, domestic or foreign.
13.2 Encroachments. To the best of Seller’s knowledge, there are no encroachments onto the Property by improvements on any adjoining property, nor do any buildings or improvements located on the Property encroach on other properties.
13.3 Condition of Property . Seller shall maintain the Property in good condition and state of repair and maintenance.
13.4 Seller’s Title. Until the close of escrow, Seller shall not do anything which would impair Seller’s title to any of the real property.
13.5 Conflict with Other Obligation . To the best of Seller’s knowledge, neither the execution of this Agreement nor the performance of the obligations herein will conflict with, or breach any of the provisions of any bond, note, evidence of indebtedness, contract, lease, covenants, conditions and restriction, or other agreement or instrument to which Seller or Seller’s Property may be bound.
13.6 Change of Situation. Until the close of escrow, Seller shall, upon learning of any fact or condition which would cause any of the warranties and representations in this Section not to be true as of the close of escrow, immediately give written notice of such fact or condition to Buyer.
13.7 Authority. Seller is the owner of and has the full right, power, and authority to sell, convey, and transfer the Property to Buyer as provided herein and to carry out Seller’s obligations hereunder.
44 13.8 Bankruptcy . Neither Seller nor any related entity is the subject of a bankruptcy proceeding and permission of a bankruptcy court is not necessary for Seller to be able to transfer the Property as provided herein.
13.9 Representations and Warranties Survive Close of Escrow . All of the Representations and Warranties of Seller set forth herein shall survive the Close of Escrow.
14. Warranties, Representations and Covenants of Buyer . Buyer hereby warrants, represents and/or covenants to Seller that:
14.1 Authorization. Buyer represents and warrants that its entry into this Agreement has been duly authorized by all requisite action on the part of Buyer and each person signing this Agreement as or on behalf of Buyer is duly authorized to do so. Buyer further represents that it has full right and authority to enter i nto this Agreement and consummate the transactions described herein. The execution, consent or acknowledgment of no other person or entity is necessary in order to validate the execution of this Agreement by Buyer or permit the consummation of the transactions described herein.
14.2 Conflicting Obligations . Buyer represents and warrants that its entry into this Agreement and the performance of its obligations hereunder does not contravene or constitute breach of any agreement, contract or indenture to whic h Buyer is a party or by which Buyer or its assets are bound.
14.3 Representations and Warranties Survive Close of Escrow. All of the Representations and Warranties of Buyer set forth herein shall survive the Close of Escrow.
15. Hazardous Waste/Hazardous Substances; "As-Is" Sale. Buyer acknowledges that it has had the opportunity to test and inspect the Property and is accepting the Property in an “as- is” condition. Buyer shall be responsible for any and all Hazardous Substances or Hazardous Wastes on the Property. As used herein, the terms “Hazardous Substances” and “Hazardous Wastes” shall have the same meaning as under any federal and/or state law or regulation.
16. Compliance with Environmental Laws. To the best of Seller’s knowledge, the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state and local laws pertaining to air and water quality, hazardous waste, waste disposal and other environmental matters, including , but not limited to, the Clean Water Act, Clean Air Act, Federal Water Pollution Control Act, Sold Waste Disposal Act, Resource Conservation Recovery Act and Comprehensive Environmental Response, Compensation and Liability Act, and the rules, regulations and ordinances of the City of Garden Grove, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, and the 45 Environmental Protection Agency. Seller has not received any notices of violation of any such laws and regulations.
17. Broker’s Commission. Seller has not engaged the services of any agent, finder or broker in connection with the transaction which is the subject of this Agreement, and it is not liable for any real estate commissions, broker’s fees or finder’s fees which may accrue by means of the sale of the Property.
18. Waiver, Consent and Remedies . Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder , as appropriate, and any breach thereof by Buyer or Seller shall be deemed a material default hereunder. The parties may specifically and expressly waive any portion of this Agreement or any breach thereof through a written amendment signed by both parties, but no such waiver shall constitute a further or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other. Except as otherwise specified herein, either party hereto may pursue any one or more of its rights, options or remedies hereunder or may seek damages or specific performance in the event of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or not stated in this Agreement.
19. Attorney’s Fees. In the event any declaratory or other legal or equitable action is instituted between Seller, Buyer and/or Escrow Agent in connection with this Agreement, then as between Buyer and Seller, the prevailing party shall be entitled to recover from the losing party all of its costs and expenses, including court costs and reasonable attorney’s fees, and all fees, costs and expenses incurred on any appeal or in collection of any judgment.
20. Notices. Any notice, request, demand, consent, approval or other communication required or permitted hereunder or by law shall be validly given or made only if in writing and delivered in person to an officer or duly authorized representative of the other party o r deposited in the United States mail, duly certified or registered (return receipt requested), postage prepaid, and addressed to the party for whom intended, as follows:
If to Buyer: Carlos Jimenez
12372 El Rancho Place
Garden Grove, CA 92840
46 If to Seller: City of Garden Grove
Attention: Real Property Officer
11222 Acacia Parkway
Garden Grove, CA 92840
Any party may from time to time, by written notice to the other, designate a different address, which shall be substituted for that specified above. If any notice or other document is sent by mail as aforesaid, the same shall be deemed fully delivered and received forty - eight (48) hours after mailing as provided above.
21. Default. Failure or delay by either party to perform any covenant, condition or provision of this Agreement within the time provided herein constitutes default under this Agreement. The injured party shall give written notice of default to the party in default, specifying the nature of such default. The defaulting party shall immediately commence to cure such default and shall diligently complete such cure within fifteen (15) days from the date of the notice o r such longer period if the nature of the default is suc h that more than fifteen (15) days is required to cure such default. The injured party shall have the right to terminate this Agreement by written notice to the other party in the event of a default, which is not cured within the time set forth herein.
22. Entire Agreement . This Agreement and its exhibits constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and the final, complete and exclusive expression of the terms and conditions thereof. All prior agreements, representations, negotiations and understanding of the parties hereto, oral or written, express or implied, are hereby superseded.
23. Captions. The captions used herein are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions hereof.
24. Governing Law. This Agreement and the exhibits attached hereto have been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California.
25. Severability. In the event that any term, covenant, condition or provision of this Agreement shall be held by a court of competent jurisdiction to be invalid or against public policy, the remaining provisions shall continue in full force and effect.
26. Amendments. No addition to or modification of any provision contained in this Agreement shall be effective unless fully set forth in writing by Buyer and Seller.
27. Binding Upon Successors. The terms and conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereof.
47 28. Counterparts. This Agreement may be executed in counterparts, each of which when executed shall, regardless of the date of its execution and delivery, be deemed an original, and all counterparts together shall constitute one and the same instrument.
29. Legal Advice. Each party represents and warrants to the other the following: they hav e carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise.
30. Cooperation. Each party agrees to cooperate with the other in the closing of thi s transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth herein above.
“Seller” “Buyer”
CITY OF GARDEN GROVE Carlos Jimenez
By: By:
Lisa Kim, City Manager Carlos Jimenez
Attest: By:
By:
Teresa Pomeroy, City Clerk
APPROVED AS TO FORM:
By:
Omar Sandoval, City Attorney
Exhibit List
Exhibit A -- Legal Description of Property
Exhibit B -- Form of Grant Deed
48 Exhibit C -- Affidavit of Non-foreign Taxpayer Status Exhibit D -- Easement Deed for Water Line Easement
49 ACCEPTANCE BY ESCROW HOLDER:
______________________ hereby acknowledges that it has received a fully executed counterpart of the foregoing Agreement for Acquisition of Real Property and Escrow Instructions and agrees to act as Escrow Holder thereunder and to be bound by and perform the terms thereof as such terms apply to Escrow Holder. By agreeing to act as Escrow Holder hereunder, Escrow Holder expressly agrees to undertake and be responsible for all withholding obligations imposed pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended and the regulations thereunder and California Revenue and Taxation Code §18662 and shall defend, indemnify and hold Buyer harmless in connection with such obligations.
Date: [Insert Name of Title Company]
By:
Name:
Its:
50 EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
APN: 231-422-13
Real property in the City of Garden Grove, County of Orange, State of California, described as follows:
Lot 21 of Tract No. 1655, in the City of Garden Grove, County of Orange, State of California, as shown on a map recorded in Book 49, Page 3, Miscellaneous Maps, in the Office of the County Recorder of said County.
Excepting therefrom that portion as described in that certain Final Order of Condemnation recorded August 10, 1976 in Book 11845, Page 1830 as Instrument No. 13638 of Official Records.
51 EXHIBIT “B”
FORM OF GRANT DEED
RECORDING REQUESTED BY
WHEN RECORDED RETURN TO:
City Clerk
CITY OF GARDEN GROVE
11222 Acacia Parkway
Garden Grove, CA 92840
SPACE ABOVE THIS LINE FOR RECORDER'S USE
Exempt from recording changes under Government Code §§ 6103 & 27383
GRANT DEED
APN: 231-422-13
This transfer is exempt from Documentary Transfer Tax pursuant to Revenue & Taxation Code § 11922.
THE UNDERSIGNED SELLER(S) DECLARE(S):
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
CITY OF GARDEN GROVE, a municipal corporation,
hereby GRANT(S) to:
CARLOS JIMENEZ, a married man, as his sole and separate property,
the real property in Orange County, California, more particularly set forth on Exhibit A attached hereto and incorporated herein by this reference.
IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of the date set forth below.
Dated: September _____, 2024
CITY OF GARDEN GROVE
A municipal corporation
By: Lisa L. Kim
Its: City Manager
[ATTACH NOTARY ACKNOWLEDGMENT]
52 EXHIBIT “A” TO GRANT DEED
LEGAL DESCRIPTION OF PROPERTY
APN: 231-422-13
Real property in the City of Garden Grove, County of Orange, State of California, described as follows:
Lot 21 of Tract No. 1655, in the City of Garden Grove, County of Orange, State of California, as shown on a map recorded in Book 49, Page 3, Miscellaneous Maps, in the Office of the County Recorder of said County.
Excepting therefrom that portion as described in that certain Final Order of Condemnation recorded August 10, 1976 in Book 11845, Page 1830 as Instrument No. 13638 of Official Records.
53 EXHIBIT C
DO NOT RECORD. TRANSFEREE (BUYER)
DO NOT SEND MUST RETAIN FOR
TO IRS. SIX YEARS AFTER
THE TRANSACTION.
CERTIFICATION OF NON-FOREIGN
STATUS BY TRANSFEROR
1. Section 1445 of the Internal Revenue Code provides that a transferee (Buyer) of a U. S. real property interest must withhold tax if the transferor (Seller) is a foreign person.
2. In order to inform each transferee that withholding of tax is not required upon disposition of a U. S. real property interest by
(hereinafter referred to as "the Transferor"), the
undersigned hereby certifies, and declares by means of this certification, the following on behalf of the Transferor:
A. The one item marked below is true and correct:
(I) The Transferor is not a foreign individual, foreign corporation, foreign partnership, foreign trust, or foreign estate (as these terms are defined in the Internal Revenue Code and Income Tax Regulations).
(II) The Transferor is a corporation incorporated under the laws of a foreign jurisdiction but has elected to be treated as a U. S. corporation under Section 897(i) of the Internal Revenue Code, AND HAS ATTACHED TO THIS CERTIFICATE A
TRUE AND GENUINE COPY OF THE
ACKNOWLEDGMENT OF SUCH ELECTION ISSUED BY
THE IRS.
B. The Transferor's social security number is __________.
C. The Transferor's address is
.
1. The Transferor understands that this certificate may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained in this certification may be punished by fine or imprisonment (or both).
54 4. The Transferor understands that each transferee is relying on this certificate in determining whether withholding is required and each transferee may face liabilities if any statement in this certificate is false.
5. The Transferor hereby indemnifies each transferee, and agrees to defend and hold each transferee harmless, from any liability, cost, damage, or expense which such transferee may incur as a result of:
A. the Transferor's failure to pay any U. S. Federal income tax which the Transferor is required to pay under applicable U. S. law, or
B. any false or misleading statement contained herein.
Under penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete; I further declare that I have authority to sign this document on behalf of the Transferor.
EXECUTED in County, State of
on .
Transferor:
By:
Title:
55 EXHIBIT D
WATER LINE EASEMENT
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City Clerk
City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840
The Above Space For Recorder’s Use Only
APNS: 231-422-13 & 231-422-14
THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11922 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTIONS 6103 AND 27383 OF THE CALIFORNIA GOVERNMENT CODE.
GRANT OF EASEMENT
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CARLOS JIMENEZ (“Grantor”), does hereby GRANTS to CITY OF GARDEN GROVE, a California municipal corporation (“Grantee”), a perpetual non-exclusive easement and right-of-way over, through and under that certain real property situated in the City of Garden Grove, County of Orange, State of California, as more particularly described in EXHIBIT “A” and depicted in EXHIBIT “B” ("Easement Area") both attached hereto and made a part hereof, and incorporated herein, to erect, construct, install, change the size of, improve, reconstruct, relocate, repair, maintain, rehabilitate, inspect, operate and use (1) a water line consisting of, by way of example, but not limitation, pipes, pipelines, vaults, and other components and other facilities, equipment, and fixtures used in the transmission of potable water and all appurtenances thereto (collectively, "Easement Area Improvements").
THIS GRANT, together with the right to enter upon and to pass and repass over, along and under said Easement Area, grants a right of way to deposit tools, machines, implements, and other materials thereon, by Grantee and by any contractor, its agents and employees, engaged by Grantee, whenever necessary for the purpose above set forth.
THIS GRANT reserves unto Grantor only such ingress, egress, landscaping, and walkway rights as will not interfere with or prohibit the free and complete use and enjoyment by Grantee, its successors and assigns, of the rights or Easements hereby granted. In no event shall Grantor (i) use the Easement Area in any manner which interferes in any material way or is inconsistent with the rights granted hereunder, or (ii) erect or permit to be erected within the Easement Area a permanent structure or building, including, but not limited to, block wall or other structures that require a building permit, or any structure not requiring a building permit but which may threaten the structural integrity or capacity of any Easement Area Improvements located within the Easement Area. Grantor further 56 agrees to construct and maintain a 20-foot gate facing Garden Grove Boulevard over the Easement Area for Grantee access to the Easement Area.
THIS GRANT is made by Grantor under the full understanding and condition that Grantee, by acceptance of this grant, has the right, upon at least seven (7) days prior written notice to Grantor to permanently remove all things thereon that interfere with the purpose for which said Easement Area has been granted and Grantor agrees that any structure placed upon, or tree, plant or shrub planted on, along, or adjacent to said Easement Area which injures or interferes with the Easement Area Improvements or the Easement Area’s use, operation or maintenance, repair, enlargement, reconstruction, refurbishment, inspection, rehabilitation or replacement thereof shall be removed by Grantor at its sole expense.
THIS GRANT is made by Grantor under the full understanding and condition that Grantee, by acceptance of this grant, shall promptly repair at Grantee's sole costs, or, at Grantee’s option, pay for the reasonable cost to repair any physical damage caused by Grantee, its contractors, agents, or employees to the Easement Area, including restoring and repairing the surface of the Easement Area and any surface improvements located upon or adjacent to the Easement Area which may have been removed, relocated, altered, damaged, or destroyed as a result of the Grantee's use of the Easement Area. Grantee shall be obligated at its sole cost to maintain the Easement Area Improvements, facilities and associated appurtenances that Grantee has installed or maintains in the Easement Area, but otherwise Grantor shall maintain the Easement Area.
THIS GRANT shall be binding upon and shall inure to the benefit of Grantee and Grantor and their respective successors and assigns. It is understood by Grantor that upon completion of construction of the Easement Area Improvements Grantee will transfer and assign this grant to the City of Fountain Valley.
GRANTOR:
By: _____________________________________________
Name: Carlos Jimenez
Dated: ___________________________________________
GRANTEE:
CITY OF GARDEN GROVE
By:
Name: Lisa L. Kim_
Its: City Manager
Dated: _____
[ATTACH NOTARY ACKNOWLEDGMENT]
57 CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant of Easement dated ________________, 2024, from CARLOS JIMENEZ to the CITY OF GARDEN GROVE, a California municipal corporation, by the within instrument, the provisions of which are incorporated by this reference as though fully set forth in this Certification, is hereby accepted by the undersigned officer(s) on behalf of the City of Garden Grove pursuant to authority conferred by the City Council on ______ __, 2024 and the City of Garden Grove consents to recordation thereof by its duly authorized officer.
Dated: ___________________ By: ____________________________ Name: Teresa Pomeroy_________________________
Its: City Clerk____
58 EXHIBIT A TO EASEMENT DEED
[Attached]
59 60
61 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM., Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 10, 2023
Paul Guerrero, Real Property Agent
City of Garden Grove
Attention: Real Property Division
11222 Acacia Parkway,
Garden Grove, CA 92840
Dear Mr. Guerrero:
RE: HCD’s Review of City of Garden Grove’s Resolution No. 9816-23 Declaring 12281 W. Garden Grove Blvd as “Exempt Surplus Land”
Thank you for notifying the California Department of Housing and Community Development (HCD) of the City of Garden Grove’s (City) determination of 12281 W. Garden Grove Blvd, Garden Grove, CA, APN 231-422-13 (Property), as “exempt surplus land.” HCD reviewed Resolution No 9816-23 pursuant to Section 400 of the Surplus Land Act Guidelines. As explained below, HCD finds t hat the Subject Property qualifies as “exempt surplus land” under Government Code section 54221, subdivision (f)(1)(B).
Analysis
According to the Resolution, the Property is approximately 1,810 square feet in size and the City intends to sell and convey the Property to the adjacent property owner.
Conclusion
Based on the documentation provided, HCD finds that the Propert y qualifies as “exempt surplus land” under Government Code section 54221, subdivision (f)(1) (B). The City is permitted to proceed with the sale of the Property as described in the Resolution.
If you have any questions or need additional technical assistance, please contact Helen Morales, Housing Policy Specialist, at [email protected].
Sincerely,
Laur
a Nunn
Senior Manager, Housing Accountability Unit
Housing Policy Development
62 Item 357/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Anand Rao
Dept:
City Manager Dept: Information Technology
Date: 9/10/2024
Subject: Authorization of the issuance of a purchase order to Data Center Interworks, Inc., for ten (10) new Arista Network Switches. (Cost: $67,131.36) (Action Item)
OBJECTIVE
For City Council to authorize issuance of a purchase order with Data Center Interworks, Inc. for the purchase of ten (10) new Arista Network Switches.
BACKGROUND
Many of the City’s network switches are past their useful life. Replacing existing switches with modern networking technology and support services will enable improved security and reliability of the City network infrastructure.
DISCUSSION
IFB No. S-1334 was issued on July 23, 2024 for Arista Network Switches. Eleven proposals were received and opened on August 22, 2024. All proposals were reviewed and all proposals were found to be responsive. The lowest three bids are as follows:
Bidders for IFB No. S-1334
Data Center Interworks, Inc. $67,131.36
Thomas Gallaway Corporation $68,645.27
vPrime Tech Inc. $69,842.79
The lowest responsive bid was from Data Center Interworks, Inc. In accordance with the bid agreement, the City may, at its sole discretion, elect to exercise an option for additional Arista Network Switches up to one (1) year after delivery and acceptance of the original licenses provided the contractor agrees to furnish the unit at the original bid price or lower.
63 Item 357/2024
FINANCIAL IMPACT
The cost to procure ten (10) new Arista Network Switches is $67,131.36. This amount has been budgeted in the Information Technology Internal Service Fund for Fiscal Year 2024-
25. No additional appropriation is necessary.
RECOMMENDATION
It is recommended that the City Council:
Authorize the Finance Director to issue a purchase order to Data Center Interworks, Inc. in the amount not to exceed $67,131.36 to purchase Arista Network Switches.
By: Maria Veronica M. Enciso, Sr. Administrative Analyst
ATTACHMENTS
1. Bid Tabulation
2. Data Center Interworks, Inc.
64 Item Description
Data Center
Interworks,
Inc.
Thomas
Gallaway
Corporation
vPrime
Tech Inc Axelliant LLC
Data
Hardware
Depot
AVI SPL,
LLC
Software
Information
Resource Corp
Tech Network
Supply LLC Gigakom
Hypertec
USA Inc
Radian
Solutions LLC
1 Arista 720DP 48x1G PoE
4x10G SFP Switch $35,813.30 $36,887.60 $37,260.50 $37,615.50 $37,700.00 $37,954.90 $38,872.40 $38,663.00 $38,736.80 $39,262.20 $45,462.70 2 Cloud Vision as-a-Service -
subscription license (1
month) - switch $21,517.20 $21,780.00 $22,384.80 $22,341.60 $22,320.00 $22,798.80 $22,341.60 $23,223.60 $23,270.40 $22,924.80 $27,309.60 3 Arista A-Care Next Business
Day - extended service
agreement - 1 month - $6,667.20 $6,750.00 $6,937.20 $6,926.40 $7,200.00 $7,066.80 $6,922.80 $7,200.00 $7,210.80 $7,102.80 $8,463.60 4 Sales Tax (8.75%) $3,133.66 $3,227.67 $3,260.29 $3,291.36 $3,298.75 $3,321.05 $3,401.34 $3,383.01 $3,389.47 $3,435.44 $3,977.99 Total Bid Amount $67,131.36 $68,645.27 $69,842.79 $70,174.86 $70,518.75 $71,141.55 $71,538.14 $72,469.61 $72,607.47 $72,725.24 $85,213.89 Bid Results
IFB S-1334
Network Switches
65 66
67 68
69 70
71 72
73 74
75 76
77 78
79 80
81 82
83 84
85 86
87 88
89 90
91 92
93 94
95 96
97 98
99 100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
Item 361/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: 9/10/2024
Subject: Receive and file warrants. (Action Item)
OBJECTIVE
For the City Council to receive and file the warrants.
BACKGROUND/DISCUSSION
Attached are the warrants recommended to be received and filed.
FINANCIAL IMPACT
Items listed in the warrants are budgeted.
RECOMMENDATION
It is recommended that the City Council:
Receive and file the warrants.
ATTACHMENT(S)
1. Warrants - 06262024
2. Warrants - 07012024
3. Warrants - 07032024
4. Warrants - 07102024
5. Warrants - 07172024
6. Warrants - 07242024
7. Warrants 08162024PR
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
City of Garden Grove
Certificate of Warrants
Register Date:
Aug 22, 2024
This is to certify the demands covered by EFT numbers 00044093 through 00044766 and check numbers 00185909 through 00185925 inclusive as listed on this register and have been verified by the Finance Division as properly issued and bear all proper signatures.
Note:
Finance Director
Patricia Song
Finance Director
186
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 2
PY - Payroll
Check Type: CHK
Check Vendor # Vendor Name Issue Date Check Amount
00185909 E00977 BELAIR, DIANE 08/22/2024 $2,260.54 00185910 E05262 FLORES, JAVIER 08/22/2024 $2,196.71 00185911 E05110 BARAJAS, GEMMA A 08/22/2024 $565.16 00185912 E05245 HUYNH, KAYLEE M 08/22/2024 $344.40 00185913 E05244 HUYNH, MYA C. 08/22/2024 $309.57 00185914 E05242 LICONA, MARCOS DE JESUS 08/22/2024 $456.62 00185915 E04936 NGUYEN, BRENDAN L 08/22/2024 $67.38 00185916 E05124 NGUYEN, KAYLA H 08/22/2024 $897.16 00185917 E05236 NGUYEN, RYAN Q 08/22/2024 $496.91 00185918 E05144 NGUYEN, VALARIE K 08/22/2024 $741.21 00185919 E05120 NGUYEN, VICKY 08/22/2024 $112.45 00185920 E05105 RODRIGUEZ, ROGER 08/22/2024 $745.61 00185921 E05232 ROPATI-IUTA, ELISA 08/22/2024 $371.48 00185922 E05149 VAZQUEZ, ELOISA E 08/22/2024 $406.31 00185923 E05227 VILLEGAS, JOSEPH A 08/22/2024 $715.98 00185924 E04444 JULIENNE, PATRICK R 08/22/2024 $3,543.39 00185925 E03529 ROCHA, MICHAEL F 08/22/2024 $3,394.11 CHK - Total $17,624.99
Check Type: EFT
Check Vendor # Vendor Name Issue Date Check Amount
00044093 E03973 AVILA, VERONICA 08/22/2024 $2,901.21 00044094 E04755 BRIETIGAM III, GEORGE S 08/22/2024 $532.25 00044095 E02788 DAVIS, JEFFREY P 08/22/2024 $2,105.61 00044096 E05080 DOVINH, JOSEPH T 08/22/2024 $602.69 00044097 E04994 GREENUP, BREANNA C 08/22/2024 $1,102.66 00044098 E00803 GRIMM, PAMELA M 08/22/2024 $2,258.58 00044099 E04131 HERREN, NOELLE N 08/22/2024 $2,871.69 00044100 E03612 JONES, STEVEN R 08/22/2024 $189.95 00044101 E04442 KIM, LISA L 08/22/2024 $6,415.52 00044102 E04536 KLOPFENSTEIN, STEPHANIE L 08/22/2024 $461.33 00044103 E05072 LOPEZ, CARLOS 08/22/2024 $1,660.23 00044104 E02787 MORAN, MARIE L 08/22/2024 $3,144.05 Server Name: cognos.ggcity.org User Name: victoriac
187
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 3
Check Vendor # Vendor Name Issue Date Check Amount
00044105 E04537 NGUYEN, KIM B 08/22/2024 $600.23 00044106 E04534 ONEILL, JOHN R 08/22/2024 $639.36 00044107 E04528 PARK, SHAWN S 08/22/2024 $2,788.93 00044108 E06945 POMEROY, TERESA L 08/22/2024 $4,358.57 00044109 E01964 PULIDO, ANA E 08/22/2024 $5,072.35 00044110 E05057 SATO, MICHI L 08/22/2024 $2,891.08 00044111 E05259 SERRATO RODRIGUEZ, DIANA 08/22/2024 $1,809.81 00044112 E03715 THAI, KRISTY H 08/22/2024 $2,677.70 00044113 E05079 TRAN, CINDY NGOC 08/22/2024 $727.62 00044114 E03983 VASQUEZ, LIZABETH C 08/22/2024 $3,131.09 00044115 E04971 VITAL, ANDREA 08/22/2024 $2,019.59 00044116 E05192 WEST, MATTHEW S 08/22/2024 $7,425.75 00044117 E04944 ANDERSON CAMBA, ASHLEIGH R 08/22/2024 $2,722.77 00044118 E04764 BRADLEY, JANNA K 08/22/2024 $3,835.52 00044119 E03766 CERDA, MARY C 08/22/2024 $2,334.02 00044120 E04673 HART, BRANDI M 08/22/2024 $1,637.14 00044121 E04363 KWAN, LIANE Y 08/22/2024 $4,019.83 00044122 E01985 LEE, JANY H 08/22/2024 $5,219.59 00044123 E03420 PROCTOR, SHERRILL A 08/22/2024 $2,613.86 00044124 E05078 SANCHEZ, GIOVANNI P 08/22/2024 $2,481.93 00044125 E04417 STEPHENSON, CAITLYN M 08/22/2024 $2,972.96 00044126 E02115 STOVER, LAURA J 08/22/2024 $7,215.27 00044127 E04390 AMBRIZ, STEPHANIE 08/22/2024 $1,492.32 00044128 E04445 BROWN, KAREN J 08/22/2024 $991.33 00044129 E03313 BUI, AI N 08/22/2024 $813.59 00044130 E05183 CANTU, JANICE 08/22/2024 $1,902.83 00044131 E05068 CASTELLON, ALVARO A 08/22/2024 $5,151.27 00044132 E04961 CHAO, VICTORIA 08/22/2024 $1,809.12 00044133 E03686 CHAVEZ, JAIME F 08/22/2024 $1,702.41 00044134 E03760 CHUNG, JANET J 08/22/2024 $2,598.34 00044135 E05094 CORTEZ, ELIZABETH M. 08/22/2024 $2,325.02 00044136 E04957 CURTSEIT, MARIA 08/22/2024 $2,186.71 00044137 E04960 FUKAZAWA, KEISUKE 08/22/2024 $2,386.70 00044138 E05055 GAMINO, LINDA M 08/22/2024 $1,412.84 00044139 E03877 GOMEZ, STEVEN E 08/22/2024 $2,469.80 Server Name: cognos.ggcity.org User Name: victoriac
188
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 4
Check Vendor # Vendor Name Issue Date Check Amount
00044140 E03016 HERNANDEZ, GARY F 08/22/2024 $1,700.89 00044141 E04569 HOFFMAN, CORINNE L 08/22/2024 $2,574.75 00044142 E05167 LOFFLER, SARAH N 08/22/2024 $1,585.36 00044143 E00057 MANALANSAN, NEAL M 08/22/2024 $2,395.78 00044144 E01668 MAY, ROBERT W 08/22/2024 $1,797.81 00044145 E01393 MENDEZ, ANGELA M 08/22/2024 $2,263.55 00044146 E03628 MENDOZA, CHRISTI C 08/22/2024 $2,617.84 00044147 E05261 MENDOZA, MARELLA L F 08/22/2024 $1,795.42 00044148 E04958 NGO, TINA 08/22/2024 $2,570.70 00044149 E02429 PHAM, ANH 08/22/2024 $1,931.91 00044150 E03610 RAMIREZ, EVA 08/22/2024 $2,303.90 00044151 E04973 RAMOS, NANCY 08/22/2024 $3,891.90 00044152 E05097 RODRIGUEZ, SEBASTIAN 08/22/2024 $2,335.50 00044153 E03539 SEGAWA, SANDRA E 08/22/2024 $4,225.41 00044154 E04780 SONG, YUAN 08/22/2024 $5,814.16 00044155 E03085 VICTORIA, PAUL E 08/22/2024 $1,553.17 00044156 E04859 VO, MY TRA 08/22/2024 $3,256.99 00044157 E03433 WESTON, RETA J 08/22/2024 $1,439.31 00044158 E04674 WHITTAKER DEGEN, HELEN E 08/22/2024 $760.85 00044159 E04527 YOO, MEENA 08/22/2024 $2,666.60 00044160 E04493 ANDREWS, STEVEN F 08/22/2024 $2,879.57 00044161 E00845 CHANG, TERENCE S 08/22/2024 $3,181.19 00044162 E05091 ENCISO, MARIA VERONICA M 08/22/2024 $2,343.26 00044163 E03498 ESPINOZA, VERNA L 08/22/2024 $2,562.21 00044164 E04523 GALLO, CESAR 08/22/2024 $3,669.84 00044165 E04415 GOLD, ANNA L 08/22/2024 $2,373.71 00044166 E04713 HINGCO, ERNIE E 08/22/2024 $2,174.66 00044167 E02617 KLOESS, GEOFFREY A 08/22/2024 $4,891.27 00044168 E05238 LE, JEFFREY D 08/22/2024 $864.45 00044169 E03571 MORAGRAAN, RACHOT 08/22/2024 $4,278.45 00044170 E05071 OCHOA, NICOLAS E 08/22/2024 $2,672.47 00044171 E01277 PROFFITT, NOEL J 08/22/2024 $3,654.99 00044172 E01901 RAO, ANAND V 08/22/2024 $6,753.59 00044173 E05073 SEYMOUR, DAVID M 08/22/2024 $1,069.66 00044174 E04395 SWANSON, MATTHEW T 08/22/2024 $1,965.19 Server Name: cognos.ggcity.org User Name: victoriac
189
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 5
Check Vendor # Vendor Name Issue Date Check Amount
00044175 E01674 VALENZUELA, ANTHONY 08/22/2024 $1,759.64 00044176 E00809 VICTORIA, ROD T 08/22/2024 $4,312.75 00044177 E03725 ABU HAMDIYYAH, AMEENAH 08/22/2024 $2,233.13 00044178 E05215 ANDUJO, ADRIAN S 08/22/2024 $2,176.08 00044179 E02996 ASHLEIGH, JULIE A 08/22/2024 $2,400.50 00044180 E05194 AVILA, RAFAEL B 08/22/2024 $2,591.93 00044181 E05208 BROWN, ANDRE P 08/22/2024 $2,449.45 00044182 E05199 BROWN, MIKAELA B 08/22/2024 $678.14 00044183 E03601 CHUNG, CHRISTOPHER 08/22/2024 $3,548.17 00044184 E00128 CRAMER, RITA M 08/22/2024 $2,712.00 00044185 E04394 DAHLHEIMER, BRYSON T 08/22/2024 $0.00 00044186 E04879 DAKE, RYAN J 08/22/2024 $2,809.91 00044187 E04578 DENT, DAVID A 08/22/2024 $4,764.19 00044188 E05216 HERNANDEZ, ZACHARY L 08/22/2024 $2,431.32 00044189 E03410 HODSON, AARON J 08/22/2024 $2,393.69 00044190 E04716 KASKLA, PRIIT J 08/22/2024 $2,582.75 00044191 E04959 LE, KENNETH H 08/22/2024 $1,910.67 00044192 E04490 LY, HUONG Q 08/22/2024 $2,587.99 00044193 E04194 MARTINEZ, MARIA L 08/22/2024 $3,167.76 00044194 E05188 MERCADO RODRIGUEZ, MONICA 08/22/2024 $3,696.02 00044195 E03044 MOORE, JUDITH A 08/22/2024 $2,501.95 00044196 E04635 NGUYEN, PHU T 08/22/2024 $4,339.80 00044197 E02842 PARRA, MARIA C 08/22/2024 $4,051.32 00044198 E05249 PLASCENCIA, AMANDA C 08/22/2024 $2,204.57 00044199 E05172 QUENTAL, RYAN 08/22/2024 $2,331.35 00044200 E04992 ROBLES, ALFONSO 08/22/2024 $2,783.17 00044201 E04862 TRAN, JAKE P 08/22/2024 $2,203.36 00044202 E05209 TRAN, KAREN 08/22/2024 $643.36 00044203 E05048 TUONG, NGHIA T 08/22/2024 $2,352.60 00044204 E05053 VU, VINNY X 08/22/2024 $2,652.25 00044205 E05150 WETZEL, NIKI 08/22/2024 $5,327.92 00044206 E03643 ALVARADO, YOLANDA A 08/22/2024 $2,133.97 00044207 E04771 BAILOR, REBECCA J 08/22/2024 $920.80 00044208 E04988 BAUTISTA, BRENDA 08/22/2024 $2,301.28 00044209 E04262 BEARD, ALEX C 08/22/2024 $1,800.40 Server Name: cognos.ggcity.org User Name: victoriac
190
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 6
Check Vendor # Vendor Name Issue Date Check Amount
00044210 E04929 BENITEZ, LIZBETH 08/22/2024 $46.32 00044211 E05125 BUI, RUBY 08/22/2024 $628.75 00044212 E02658 CAMARENA, RACHEL M 08/22/2024 $2,398.74 00044213 E01588 CAMARENA, RENE 08/22/2024 $2,457.73 00044214 E05247 CAO, CALVIN 08/22/2024 $109.49 00044215 E01902 CASILLAS, VICTORIA M 08/22/2024 $2,203.13 00044216 E05101 CASTANEDA, LILIANA 08/22/2024 $618.02 00044217 E05121 CASTRO PEREZ, ANDREA 08/22/2024 $366.47 00044218 E05058 CATAQUIZ, CHARLIZE N 08/22/2024 $432.48 00044219 E03304 CHUMACERO, DEANNA M 08/22/2024 $1,679.64 00044220 E04611 CROSS, AMANDA D 08/22/2024 $2,217.16 00044221 E04814 DE ROSAS, VICTOR 08/22/2024 $625.24 00044222 E04653 DIAZ, GABRIELA 08/22/2024 $1,142.28 00044223 E05013 DINH, TIFFANY 08/22/2024 $1,071.28 00044224 E05107 DO, HUY T 08/22/2024 $779.70 00044225 E05222 DO, LOC T 08/22/2024 $709.20 00044226 E05228 DUONG, KYLA T 08/22/2024 $278.61 00044227 E05160 DUONG, KYLE K 08/22/2024 $694.95 00044228 E05090 ESCARENO, MELISSA 08/22/2024 $254.94 00044229 E05158 FABIAN, SHARON J 08/22/2024 $342.57 00044230 E05015 FALETOI, TERRY U 08/22/2024 $788.55 00044231 E05127 FLORES, ERIKA 08/22/2024 $600.12 00044232 E02120 FRAUSTO, LUIZ F 08/22/2024 $378.95 00044233 E04679 FREEMAN, MARK C 08/22/2024 $4,365.23 00044234 E05233 GALEANA, EVALYN J 08/22/2024 $517.96 00044235 E05185 GARCIA, KATY 08/22/2024 $727.12 00044236 E04253 GARCIA, VANESSA L 08/22/2024 $0.00 00044237 E03337 GODDARD, JENNIFER DANIELLE 08/22/2024 $2,971.23 00044238 E05225 GONZALEZ, ETHAN Z 08/22/2024 $595.40 00044239 E05133 GONZALEZ, NADIA V 08/22/2024 $940.17 00044240 E00940 GRANT, JACOB R 08/22/2024 $2,243.49 00044241 E04967 HASHEMI, SETAREH 08/22/2024 $580.70 00044242 E05248 HERNANDEZ, CESAR 08/22/2024 $563.22 00044243 E05152 HERNANDEZ, CLARISSA 08/22/2024 $724.98 00044244 E05221 HUANG, WENDY Y 08/22/2024 $702.41 Server Name: cognos.ggcity.org User Name: victoriac
191
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 7
Check Vendor # Vendor Name Issue Date Check Amount
00044245 E05147 LE, WILSON D 08/22/2024 $643.07 00044246 E05032 LEE, JASON J 08/22/2024 $311.39 00044247 E05138 LOPEZ, ELIZABETH A 08/22/2024 $872.12 00044248 E03603 MA AE, ELAINE M 08/22/2024 $3,263.48 00044249 E05014 MARIN, AMANDA T 08/22/2024 $657.38 00044250 E05140 MARTINEZ, ERICK 08/22/2024 $628.96 00044251 E05148 MAZARIEGOS, ALEXA X 08/22/2024 $547.21 00044252 E01552 MEDINA, JESUS 08/22/2024 $1,774.14 00044253 E00455 MEDINA, JUAN 08/22/2024 $2,558.92 00044254 E05186 MELVIN, ALEXIS 08/22/2024 $662.39 00044255 E02808 MONTANCHEZ, JOHN A 08/22/2024 $6,557.57 00044256 E05128 NAEA, IRIEANNA M 08/22/2024 $713.29 00044257 E05235 NAVA, AARON I 08/22/2024 $223.20 00044258 E05126 NGO, Y N 08/22/2024 $600.12 00044259 E04947 NGUYEN, ALEXANDER H 08/22/2024 $728.95 00044260 E05220 NGUYEN, JASON H 08/22/2024 $722.75 00044261 E05108 NGUYEN, JORDAN V 08/22/2024 $913.79 00044262 E05052 NGUYEN, RYAN N 08/22/2024 $673.95 00044263 E05237 NGUYEN, YVONNE N 08/22/2024 $619.87 00044264 E04391 NICHOLAS, NOEL N 08/22/2024 $1,553.21 00044265 E04931 NODAL, NATALIE 08/22/2024 $585.81 00044266 E00785 OCADIZ HERNANDEZ, GABRIELA 08/22/2024 $3,201.39 00044267 E04965 ORDUNO, SAMANTHA 08/22/2024 $405.73 00044268 E05164 PARCELL, SAMANTHA M 08/22/2024 $127.47 00044269 E03361 PELAYO, JANET E 08/22/2024 $4,572.26 00044270 E05137 PHAN, BRYAN L 08/22/2024 $741.21 00044271 E04777 PHAN, EDOUARD T 08/22/2024 $567.05 00044272 E03893 PICKRELL, ARIELLE 08/22/2024 $2,031.01 00044273 E05116 PRADO, ALEXA 08/22/2024 $678.88 00044274 E05224 RAMIREZ, JOCELYN 08/22/2024 $612.39 00044275 E05230 RAMOS, ARIEL ELIZABETH 08/22/2024 $702.62 00044276 E05130 REYNOLDS, SARABETH A 08/22/2024 $422.25 00044277 E02754 REYNOSO, SUGEIRY 08/22/2024 $2,778.46 00044278 E05103 RODRIGUEZ, MATTHEW S 08/22/2024 $478.01 00044279 E03362 ROMERO, MARINA Y 08/22/2024 $2,215.87 Server Name: cognos.ggcity.org User Name: victoriac
192
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 8
Check Vendor # Vendor Name Issue Date Check Amount
00044280 E04684 ROSALES, MARIA D 08/22/2024 $129.74 00044281 E04614 ROSAS, TANYA 08/22/2024 $555.40 00044282 E01893 SAUCEDO, DANA MARIE 08/22/2024 $2,640.05 00044283 E00925 SCHLUMPBERGER, EMERON J 08/22/2024 $1,209.39 00044284 E04926 SERNA, SAMANTHA M 08/22/2024 $742.48 00044285 E04795 SIEVE, MYCHAELLA J 08/22/2024 $672.77 00044286 E05153 SODERSTROM, LOGAN K 08/22/2024 $612.39 00044287 E05151 SORIANO, KIMBERLY A 08/22/2024 $876.32 00044288 E05250 TEJEDA, ANDREA 08/22/2024 $456.62 00044289 E05131 TRAN, NGOC DIEM 08/22/2024 $602.17 00044290 E05030 TRIGGS, MARY SHANNON 08/22/2024 $961.77 00044291 E01396 VALDIVIA, CLAUDIA 08/22/2024 $2,194.96 00044292 E00015 VAN SICKLE, JEFFREY 08/22/2024 $2,767.34 00044293 E05243 VAN WINKLE, OLIVIA 08/22/2024 $654.96 00044294 E04687 VARGAS, SAMANTHA B 08/22/2024 $686.41 00044295 E05022 VERA VALDEZ, JULIANNE IRENE I 08/22/2024 $883.09 00044296 E05231 VOGEL, KATIE L 08/22/2024 $711.13 00044297 E04274 WILMES, DAVID M 08/22/2024 $797.56 00044298 E05070 XOOL VARGAS, RUDY G 08/22/2024 $199.17 00044299 E05076 XU, CHARLIE 08/22/2024 $517.84 00044300 E05226 ZUNIGA, MIA 08/22/2024 $722.07 00044301 E05175 AGUILAR, JENNIFER 08/22/2024 $748.89 00044302 E03819 ALAMILLO, MARCOS R 08/22/2024 $4,348.74 00044303 E03712 ALARCON, CLAUDIA 08/22/2024 $3,907.29 00044304 E03616 ALCARAZ, MARIA A 08/22/2024 $2,890.70 00044305 E04431 ALMEIDA, NICHOLAS A 08/22/2024 $4,367.60 00044306 E04873 ALVARADO, MADELINE M 08/22/2024 $2,796.62 00044307 E04080 ALVAREZ BROWN, RICHARD A 08/22/2024 $3,570.38 00044308 E05028 AMAYA, JOSE J 08/22/2024 $4,241.15 00044309 E03011 ANDERSON, BOBBY B 08/22/2024 $4,630.79 00044310 E05206 ANGSAVOTAI-LIGAYA, AMY O 08/22/2024 $1,860.79 00044311 E05040 ARCHULETA, ANDREW M 08/22/2024 $2,211.96 00044312 E05251 ARELLANO JR, JORGE 08/22/2024 $2,453.20 00044313 E01234 ARELLANO, PEDRO R 08/22/2024 $4,434.92 00044314 E04875 ARROYO, SANDRA M 08/22/2024 $2,726.40 Server Name: cognos.ggcity.org User Name: victoriac
193
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 9
Check Vendor # Vendor Name Issue Date Check Amount
00044315 E04497 ASHBAUGH, TIMOTHY R 08/22/2024 $3,366.81 00044316 E03397 ASHBY, PAUL W 08/22/2024 $3,733.04 00044317 E04719 ATWOOD, MARIA S 08/22/2024 $2,272.06 00044318 E04613 AVALOS JR, FRANCISCO 08/22/2024 $2,903.24 00044319 E04033 AVALOS, KATHERINE MARIE 08/22/2024 $3,331.70 00044320 E04550 BAEK, SHARON S 08/22/2024 $2,903.14 00044321 E05062 BAEZ, JASMIN 08/22/2024 $1,919.24 00044322 E04209 BAINTO, JUDY A 08/22/2024 $844.39 00044323 E04778 BAKER, COLLIN E 08/22/2024 $3,132.16 00044324 E03005 BANKSON, JOHN F 08/22/2024 $8,008.09 00044325 E04645 BARRAZA, RENE 08/22/2024 $5,488.83 00044326 E05041 BARRIOS-ROA, JAYDE D. 08/22/2024 $2,491.57 00044327 E05253 BEDARD, CHRISTIE L 08/22/2024 $1,700.45 00044328 E04432 BEHZAD, JOSHUA K 08/22/2024 $3,409.74 00044329 E04951 BELLO, ANGELICA 08/22/2024 $2,120.95 00044330 E03006 BELTHIUS, LISA A 08/22/2024 $209.78 00044331 E04976 BELTHIUS, TYLER E 08/22/2024 $818.87 00044332 E04753 BERENGER, BEAU A 08/22/2024 $4,586.68 00044333 E03296 BERESFORD, EVAN S 08/22/2024 $4,266.78 00044334 E01604 BERLETH, RYAN S 08/22/2024 $2,328.95 00044335 E03443 BLUM, JAMES A 08/22/2024 $3,280.38 00044336 E03363 BOWEN, GENA M 08/22/2024 $2,149.24 00044337 E04767 BOWMAN, TROY F 08/22/2024 $3,397.18 00044338 E04963 BOYENS III, ROBERT 08/22/2024 $3,210.33 00044339 E00946 BRAME, KAREN D 08/22/2024 $2,242.88 00044340 E04803 BRANTNER, BRITTANEE N 08/22/2024 $1,810.30 00044341 E05083 BRITTON, CODY W 08/22/2024 $2,472.21 00044342 E03380 BROWN, JEFFREY A 08/22/2024 $5,920.14 00044343 E03968 BRUNICK, CARISSA L 08/22/2024 $2,096.71 00044344 E05074 BUJANONDA, CHANON 08/22/2024 $3,304.48 00044345 E02031 BURILLO, RICHARD O 08/22/2024 $5,919.06 00044346 E03972 BUSTILLOS, RYAN V 08/22/2024 $4,983.54 00044347 E05077 CAGLE, RONALD L 08/22/2024 $1,534.65 00044348 E03964 CAMARA, DANIEL A 08/22/2024 $2,953.21 00044349 E04074 CAMPOS, JESENIA 08/22/2024 $2,380.81 Server Name: cognos.ggcity.org User Name: victoriac
194
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 10
Check Vendor # Vendor Name Issue Date Check Amount
00044350 E03739 CAPPS, THOMAS A 08/22/2024 $5,680.28 00044351 E05002 CARBALLO, MILTON A 08/22/2024 $2,661.43 00044352 E02372 CENTENO, JUAN C 08/22/2024 $5,154.23 00044353 E05252 CHACON JR, JOSE A 08/22/2024 $2,460.36 00044354 E03607 CHANG, DAVID Y H 08/22/2024 $6,573.17 00044355 E03481 CHAURAN HAIRGROVE, TAMMY L 08/22/2024 $2,881.58 00044356 E04498 CHEATHAM, JEROME L 08/22/2024 $3,297.40 00044357 E03423 CHOWDHURY, JACINTA F 08/22/2024 $2,109.89 00044358 E04414 CHUNG, RANDY G 08/22/2024 $199.86 00044359 E00003 CIBOSKY, COURTNEY P 08/22/2024 $17,581.43 00044360 E04832 CORTEZ JR, DARRYL B 08/22/2024 $2,691.81 00044361 E04666 CORTEZ, JULIO C 08/22/2024 $3,489.21 00044362 E01796 COULTER, GARY L 08/22/2024 $3,727.30 00044363 E04555 CRUZ, REYNA 08/22/2024 $2,180.22 00044364 E01364 DALTON, BRIAN D 08/22/2024 $4,269.43 00044365 E04874 DANG, JOHN 08/22/2024 $3,713.10 00044366 E00126 DANIELEY III, CHARLIE H 08/22/2024 $1,541.23 00044367 E04503 DAVILA, ISAAC 08/22/2024 $3,017.51 00044368 E04731 DE PADUA, TANNER C 08/22/2024 $4,032.98 00044369 E03691 DELGADO JR, JUAN L 08/22/2024 $5,674.88 00044370 E03395 DIX, JENNIFER A 08/22/2024 $2,937.97 00044371 E05088 DOAN, THOMMY 08/22/2024 $2,504.99 00044372 E02313 DOSCHER, RONALD A 08/22/2024 $3,491.63 00044373 E04586 DOVEAS, CHRISTOPHER C 08/22/2024 $70.25 00044374 E04281 DRISCOLL, RUSSELL B 08/22/2024 $2,160.04 00044375 E04844 DUARTE, TAYLOR M 08/22/2024 $3,948.44 00044376 E04720 DUDLEY, BROC D 08/22/2024 $12,435.28 00044377 E03625 EARLE, CHRISTOPHER M 08/22/2024 $3,668.46 00044378 E03740 EL FARRA, AMIR A 08/22/2024 $5,193.38 00044379 E03927 ELHAMI, MICHAEL K 08/22/2024 $3,576.46 00044380 E03933 ELIZONDO, BENJAMIN M 08/22/2024 $3,555.17 00044381 E04016 ELIZONDO, FLOR DE LIS 08/22/2024 $2,471.88 00044382 E01598 ELSOUSOU, HELENA 08/22/2024 $4,776.23 00044383 E02708 ENRIQUEZ, JOHN G 08/22/2024 $951.09 00044384 E05174 ESCOBAR, MARIANA 08/22/2024 $462.08 Server Name: cognos.ggcity.org User Name: victoriac
195
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 11
Check Vendor # Vendor Name Issue Date Check Amount
00044385 E04334 ESCOBEDO, JOSHUA N 08/22/2024 $3,615.07 00044386 E02724 ESTLOW, STEPHEN C 08/22/2024 $3,356.50 00044387 E04358 ESTRADA MONSANTO, MICHELLE N 08/22/2024 $3,339.02 00044388 E04748 FAJARDO, JESUS 08/22/2024 $3,028.27 00044389 E04303 FERREIRA JR, HECTOR 08/22/2024 $3,444.16 00044390 E01663 FERRIN, KORY C 08/22/2024 $5,129.38 00044391 E03976 FIGUEREDO, GEORGE R 08/22/2024 $3,790.68 00044392 E04774 FLINN, PATRICIA C 08/22/2024 $3,156.36 00044393 E02887 FOSTER, VICTORIA M 08/22/2024 $1,549.42 00044394 E02963 FRANKS, JAMES D 08/22/2024 $3,095.84 00044395 E04747 FRESENIUS, ROBERT D 08/22/2024 $3,204.76 00044396 E00903 FRUTOS, VERONICA 08/22/2024 $1,971.59 00044397 E05205 GAMINO, ANGEL 08/22/2024 $860.75 00044398 E04729 GARCIA, JOSEPH A 08/22/2024 $2,574.87 00044399 E03086 GARCIA, PETE 08/22/2024 $4,481.43 00044400 E03659 GARNER, AMANDA B 08/22/2024 $2,168.07 00044401 E04351 GERDIN, MICHAEL E 08/22/2024 $3,434.43 00044402 E04542 GIFFORD, ROBERT J 08/22/2024 $3,257.53 00044403 E04658 GIRGENTI, BRIAN C 08/22/2024 $4,386.83 00044404 E04401 GLEASON, SEAN M 08/22/2024 $3,916.04 00044405 E04917 GOMEZ, JESUS 08/22/2024 $5,508.84 00044406 E04863 GONZALEZ JR, GONZALO 08/22/2024 $2,857.16 00044407 E05003 HA, DANNY 08/22/2024 $3,866.86 00044408 E04732 HADDEN, TRAVIS J 08/22/2024 $2,956.07 00044409 E04787 HALEY, KYLE N 08/22/2024 $3,543.88 00044410 E03527 HALLER, TROY 08/22/2024 $4,854.70 00044411 E03402 HEINE, STEVEN H 08/22/2024 $4,896.78 00044412 E05157 HERNANDEZ CALLEROS, SAIRA 08/22/2024 $2,823.04 00044413 E04872 HERNANDEZ, KRISTINA L 08/22/2024 $2,014.11 00044414 E02469 HERRERA, JOSE D 08/22/2024 $4,097.75 00044415 E04244 HINGCO, PINKY C 08/22/2024 $3,129.44 00044416 E03713 HOLLOWAY, WILLIAM T 08/22/2024 $5,130.36 00044417 E04739 HOWARD, JASON A 08/22/2024 $4,066.74 00044418 E04654 HURLEY, KIRK P 08/22/2024 $4,641.50 00044419 E04089 HUTCHINS, DONALD J 08/22/2024 $3,935.81 Server Name: cognos.ggcity.org User Name: victoriac
196
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 12
Check Vendor # Vendor Name Issue Date Check Amount
00044420 E03815 HUYNH, AI KELLY 08/22/2024 $2,733.61 00044421 E03559 HUYNH, THI A 08/22/2024 $3,653.13 00044422 E04915 ITURRALDE, JENNIFER L 08/22/2024 $3,207.14 00044423 E04583 JENSEN, MICHAEL J 08/22/2024 $5,805.29 00044424 E02935 JENSEN, NICKOLAS K 08/22/2024 $4,271.59 00044425 E04587 JIMENEZ JR, EFRAIN A 08/22/2024 $7,238.18 00044426 E04781 JIMENEZ TAVAREZ, SERGIO J 08/22/2024 $2,642.74 00044427 E04655 JOHNSON, CODY M 08/22/2024 $3,205.34 00044428 E03368 JOHNSON, JASON L 08/22/2024 $4,466.39 00044429 E03831 JORDAN, GERALD F 08/22/2024 $3,299.62 00044430 E04610 JORDAN, VICTORIA A 08/22/2024 $2,496.31 00044431 E04460 KAISER, GEORGE R 08/22/2024 $611.30 00044432 E04559 KELLEY, KRISTOFER D 08/22/2024 $3,506.06 00044433 E04353 KEUILIAN, SHELBY 08/22/2024 $2,492.92 00044434 E04663 KIM, CHAD B 08/22/2024 $2,802.18 00044435 E05257 KIM, HANBI 08/22/2024 $2,447.02 00044436 E04538 KIMBERLY, ALLYSON L 08/22/2024 $1,232.63 00044437 E05254 KIMMEY, ELIZABETH J 08/22/2024 $791.74 00044438 E03932 KIVLER, ROBERT J 08/22/2024 $3,570.79 00044439 E03389 KOLANO, JOSEPH L 08/22/2024 $3,037.84 00044440 E03294 KOVACS, LEA K 08/22/2024 $3,729.19 00044441 E05000 KOVACS, TIMOTHY M 08/22/2024 $3,028.91 00044442 E04669 KOVACS, TIMOTHY P 08/22/2024 $6,070.53 00044443 E03484 KUNKEL, PETER M 08/22/2024 $4,025.71 00044444 E04857 LANG, MICHAEL J 08/22/2024 $4,039.57 00044445 E03511 LAZENBY, NICHOLAS A 08/22/2024 $4,422.21 00044446 E04877 LE, BAO TINH THI 08/22/2024 $2,187.38 00044447 E04021 LEE, RAPHAEL M 08/22/2024 $5,397.92 00044448 E03488 LEYVA, ERICK 08/22/2024 $4,647.03 00044449 E04541 LINK, DEREK M 08/22/2024 $4,099.05 00044450 E00030 LOERA JR, RAFAEL 08/22/2024 $15,163.09 00044451 E05033 LOFFLER, CHARLES H 08/22/2024 $5,609.80 00044452 E05214 LOPEZ, KORINA Y 08/22/2024 $1,517.83 00044453 E05256 LOPEZ, VICTORIA A 08/22/2024 $1,610.50 00044454 E05066 LORD, MARK A 08/22/2024 $4,229.80 Server Name: cognos.ggcity.org User Name: victoriac
197
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 13
Check Vendor # Vendor Name Issue Date Check Amount
00044455 E04581 LOWEN, BRADLEY A 08/22/2024 $3,294.48 00044456 E04761 LUCATERO, JESSE A 08/22/2024 $3,624.68 00044457 E00027 LUKAS, STEVEN W 08/22/2024 $2,498.78 00044458 E04048 LUX, ROBERT D 08/22/2024 $3,146.58 00044459 E03663 LUX, RYAN M 08/22/2024 $3,756.82 00044460 E04772 LY, LINDALINH THU 08/22/2024 $2,081.59 00044461 E04661 MACHUCA, ROBERTO 08/22/2024 $4,427.58 00044462 E04532 MANIACI, GIANLUCA F 08/22/2024 $3,824.20 00044463 E04435 MARCHAND, MATTHEW P 08/22/2024 $4,806.03 00044464 E01359 MARTINEZ JR, MARIO 08/22/2024 $5,422.27 00044465 E04974 MARTINEZ, JUANITA PATRICIA 08/22/2024 $3,472.63 00044466 E02792 MATA, RAQUEL D 08/22/2024 $1,108.25 00044467 E04656 MAZON, JORGE L 08/22/2024 $2,697.80 00044468 E02796 MCFARLANE, MARIA C 08/22/2024 $3,053.54 00044469 E06761 MEEKS, REBECCA S 08/22/2024 $4,319.48 00044470 E03826 MEERS, BRYAN J 08/22/2024 $6,626.79 00044471 E02655 MENDOZA CAMPOS, MELISSA 08/22/2024 $232.50 00044472 E03965 MIHALIK, DANNY J 08/22/2024 $4,808.98 00044473 E04804 MONTECINOS, LAUREN MARIE 08/22/2024 $3,224.12 00044474 E04865 MORIN, LINDA M 08/22/2024 $3,393.70 00044475 E04352 MORSE, JEREMY N 08/22/2024 $5,518.66 00044476 E01940 MORTON, NATHAN D 08/22/2024 $3,569.65 00044477 E04454 MOSER, MICHAEL A 08/22/2024 $1,978.09 00044478 E03929 MURILLO JR, RAUL 08/22/2024 $4,764.77 00044479 E04626 MURO, JASON M 08/22/2024 $4,815.80 00044480 E04577 MUSCHETTO, PATRICK J 08/22/2024 $2,826.40 00044481 E03422 NADOLSKI, THOMAS R 08/22/2024 $2,933.17 00044482 E05084 NAKANO HITZKE, SARAH V 08/22/2024 $2,747.92 00044483 E04111 NEELY, JACOB J 08/22/2024 $2,655.20 00044484 E05191 NGO, ALLISON B 08/22/2024 $1,714.47 00044485 E05111 NGUYEN, HAU D 08/22/2024 $822.51 00044486 E02813 NGUYEN, TRINA T 08/22/2024 $2,224.75 00044487 E04540 NIKOLIC, ADAM C 08/22/2024 $8,887.32 00044488 E05146 NIZ, IXA N 08/22/2024 $7,709.02 00044489 E05054 NUNEZ, BREANNE S 08/22/2024 $2,767.49 Server Name: cognos.ggcity.org User Name: victoriac
198
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 14
Check Vendor # Vendor Name Issue Date Check Amount
00044490 E03350 OLIVO, JOSHUA T 08/22/2024 $4,600.24 00044491 E04035 ORTIZ, STEVEN TRUJILLO 08/22/2024 $3,142.48 00044492 E03427 PANELLA, JOSEPH N 08/22/2024 $2,940.72 00044493 E04910 PAQUA, BRANDON J 08/22/2024 $3,214.34 00044494 E01948 PARK, BRANDY J 08/22/2024 $3,044.59 00044495 E02995 PAYAN, CRISTINA V 08/22/2024 $3,350.84 00044496 E00824 PAYAN, LUIS A 08/22/2024 $5,305.80 00044497 E05200 PAZ, JUAN 08/22/2024 $4,414.54 00044498 E04843 PEREZ, EMMANUEL 08/22/2024 $3,211.22 00044499 E00145 PERKINS, JASON S 08/22/2024 $5,781.23 00044500 E04429 PHAM, PHILLIP H 08/22/2024 $3,375.26 00044501 E05195 PINEDA, MARGO S 08/22/2024 $2,581.77 00044502 E06938 PLUARD, DOUGLAS A 08/22/2024 $5,929.88 00044503 E03299 POLOPEK, COREY T 08/22/2024 $3,177.47 00044504 E05173 PONCE, GALILEA 08/22/2024 $787.97 00044505 E05050 QUANG, DENNIS 08/22/2024 $3,900.68 00044506 E04788 QUIROZ, LUIS A 08/22/2024 $2,919.85 00044507 E05100 RAABE, MATTHEW A 08/22/2024 $2,604.22 00044508 E03967 RAMIREZ OROZCO, SINDY 08/22/2024 $4,309.18 00044509 E04955 RAMIREZ, KAYLYN C 08/22/2024 $2,676.23 00044510 E03390 RAMIREZ, LUIS F 08/22/2024 $4,217.67 00044511 E05021 RAMIREZ, TERRA M 08/22/2024 $3,625.19 00044512 E04914 RAMOS, RODOLFO B 08/22/2024 $2,102.05 00044513 E03217 RANEY, JOHN E 08/22/2024 $5,620.91 00044514 E04941 RASMUSSEN, TRENTON L 08/22/2024 $3,525.74 00044515 E04659 REED, THOMAS S 08/22/2024 $3,410.08 00044516 E03486 REYES, RON A 08/22/2024 $4,222.74 00044517 E04911 RICHARDS, BRYANT D 08/22/2024 $2,920.21 00044518 E04437 RICHMOND, RYAN R 08/22/2024 $3,538.94 00044519 E05229 ROBINSON, IVANA M 08/22/2024 $2,628.53 00044520 E04860 ROCHA, RUDY A 08/22/2024 $2,517.39 00044521 E04738 RODRIGUEZ, DANIEL 08/22/2024 $3,403.75 00044522 E04082 RODRIGUEZ, JENNIFER M 08/22/2024 $3,213.44 00044523 E05001 RODRIGUEZ, RYAN ELIJAH 08/22/2024 $5,511.56 00044524 E04438 ROGERS, CHRISTIN E 08/22/2024 $3,354.06 Server Name: cognos.ggcity.org User Name: victoriac
199
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 15
Check Vendor # Vendor Name Issue Date Check Amount
00044525 E04385 ROJAS, ASHLEY C 08/22/2024 $2,188.22 00044526 E04507 ROMBOUGH, JENNIFER V 08/22/2024 $2,392.38 00044527 E04552 RUZIECKI, ERIC T 08/22/2024 $3,985.84 00044528 E02845 SALAZAR, SEAN M 08/22/2024 $3,921.14 00044529 E04845 SALGADO JR., ALFREDO 08/22/2024 $2,507.00 00044530 E03297 SAMOFF, TANYA L 08/22/2024 $2,810.53 00044531 E02646 SANTANA, LINO G 08/22/2024 $7,487.43 00044532 E05086 SEELY, BRITTANY L 08/22/2024 $1,227.04 00044533 E03035 SEYMOUR, SUSAN A I 08/22/2024 $3,185.49 00044534 E04282 SHELGREN, CHRISTOPHER M 08/22/2024 $5,650.22 00044535 E04616 SHIPLEY, AARON T 08/22/2024 $14,323.53 00044536 E02937 SHORROW, NICOLE D 08/22/2024 $3,710.33 00044537 E04864 SILVA, LEVI JOENIEL 08/22/2024 $2,571.01 00044538 E04576 SIMONS, SHAYLEN L 08/22/2024 $2,978.78 00044539 E05203 SMITH, JAVON 08/22/2024 $6,160.27 00044540 E02587 SOSEBEE, DANNY J 08/22/2024 $3,400.72 00044541 E03563 SPELLMAN, MARSHA D 08/22/2024 $3,484.47 00044542 E04500 STAAL, GAREY D 08/22/2024 $4,064.04 00044543 E03218 STARNES, CHARLES W 08/22/2024 $6,227.88 00044544 E03761 STEPHENSON III, ROBERT M 08/22/2024 $5,227.76 00044545 E04584 STROUD, BRIAN T 08/22/2024 $4,444.71 00044546 E02979 TESSIER, PAUL M 08/22/2024 $3,868.07 00044547 E04449 TRAN, SPENCER T 08/22/2024 $2,507.39 00044548 E05145 VACCARO, CHRISTIAN L 08/22/2024 $557.18 00044549 E02982 VAICARO, VINCENTE J 08/22/2024 $6,585.07 00044550 E03053 VALENCIA, EDGAR 08/22/2024 $4,146.46 00044551 E04667 VAUGHN, CALEB I 08/22/2024 $3,417.42 00044552 E04977 VAZQUEZ, BRIAN M 08/22/2024 $843.47 00044553 E04434 VELLANOWETH, KIMBRA S 08/22/2024 $2,519.69 00044554 E04903 VIGIL, DANIEL C 08/22/2024 $2,928.94 00044555 E03022 VU, TUONG-VAN NGUYEN 08/22/2024 $2,607.01 00044556 E04730 VU, TYLER D 08/22/2024 $2,929.60 00044557 E01905 WAINWRIGHT, JONATHAN B 08/22/2024 $4,378.41 00044558 E03220 WARDLE, DENNIS 08/22/2024 $3,861.25 00044559 E03213 WARDLE, SANTA 08/22/2024 $1,978.86 Server Name: cognos.ggcity.org User Name: victoriac
200
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 16
Check Vendor # Vendor Name Issue Date Check Amount
00044560 E04758 WEYKER, CHRYSTAL L 08/22/2024 $426.15 00044561 E04006 WILLIAMS, RICHARD L 08/22/2024 $785.00 00044562 E03305 WIMMER, ROYCE C 08/22/2024 $4,745.22 00044563 E04762 WREN, DANIELLE E 08/22/2024 $3,090.73 00044564 E04763 WRIGHT, SARAH A 08/22/2024 $0.00 00044565 E04856 XU, DUO 08/22/2024 $1,693.35 00044566 E03543 YELENSKY, SHANNON M 08/22/2024 $2,171.95 00044567 E04156 YERGLER, JOHN J 08/22/2024 $5,476.92 00044568 E04722 YNIGUEZ, COLE A 08/22/2024 $3,652.42 00044569 E09942 YOUNG, DAVID C 08/22/2024 $780.02 00044570 E01978 ZMIJA, ADAM D 08/22/2024 $4,446.06 00044571 E04517 AGUIRRE, ALFRED J 08/22/2024 $3,620.54 00044572 E01626 AGUIRRE, ANSELMO 08/22/2024 $2,171.87 00044573 E05207 AN, TONY W 08/22/2024 $3,473.21 00044574 E04631 ANDREI, IOAN 08/22/2024 $1,313.09 00044575 E04678 BABINSKI IV, SYLVESTER A 08/22/2024 $2,534.92 00044576 E04336 BECERRA, RODOLPHO M 08/22/2024 $2,457.74 00044577 E04972 BECERRA-SAMANIEGO JR, GABRIEL 08/22/2024 $1,630.47 00044578 E05210 BERNAL, JASON 08/22/2024 $1,112.29 00044579 E01255 BOS, MICHAEL C 08/22/2024 $2,372.07 00044580 E05162 CAISEROS, CHRISTIAN 08/22/2024 $990.38 00044581 E01584 CANDELARIA, DANIEL J 08/22/2024 $4,627.98 00044582 E04300 CANO, EDGAR A 08/22/2024 $3,157.57 00044583 E03828 CANTRELL, JEFFREY G 08/22/2024 $2,717.83 00044584 E05217 CARRILLO HERNANDEZ, ERWIN R 08/22/2024 $114.52 00044585 E03811 CARRISOZA, ALBERT J 08/22/2024 $2,707.23 00044586 E00916 CARTER, PHILLIP J 08/22/2024 $3,677.78 00044587 E04869 CHAVEZ, DAMIAN JESUS 08/22/2024 $842.04 00044588 E04551 CONTRERAS, GABRIELA R 08/22/2024 $2,778.86 00044589 E03518 COTTON, JULIE T 08/22/2024 $1,975.02 00044590 E03807 DE LA ROSA, VINCENT L 08/22/2024 $3,433.62 00044591 E05170 DELGADO REYES, JORGE A 08/22/2024 $1,496.22 00044592 E03736 DIBAJ, KAMYAR 08/22/2024 $3,604.23 00044593 E05122 DORADO, ANTHONY 08/22/2024 $1,005.11 00044594 E02515 DUVALL, RICK L 08/22/2024 $2,737.21 Server Name: cognos.ggcity.org User Name: victoriac
201
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 17
Check Vendor # Vendor Name Issue Date Check Amount
00044595 E04514 ESPINOZA, ERIC M 08/22/2024 $2,244.61 00044596 E03733 ESPINOZA, JULIA 08/22/2024 $1,404.81 00044597 E03405 FERNANDEZ, CECELIA A 08/22/2024 $1,378.93 00044598 E04990 FLORES, MITCHELL C 08/22/2024 $1,968.57 00044599 E05064 FOX, LUCAS 08/22/2024 $524.34 00044600 E05037 GAINES, JEFFREY S 08/22/2024 $996.47 00044601 E05010 GALVAN, EDGAR 08/22/2024 $1,060.74 00044602 E04754 GARCIA, ALICIA R 08/22/2024 $1,707.75 00044603 E04677 GIROUARD, CASEY G 08/22/2024 $1,764.01 00044604 E05156 GOMEZ HERNANDEZ, RICARDO 08/22/2024 $1,057.95 00044605 E04629 GOMEZ, DIANA 08/22/2024 $1,240.56 00044606 E03341 GONZALEZ, JORGE 08/22/2024 $1,356.41 00044607 E03400 GREENE, MICHAEL R 08/22/2024 $0.00 00044608 E03685 GUZMAN, JESSE 08/22/2024 $529.50 00044609 E04299 HANSEN, AARON R 08/22/2024 $2,146.28 00044610 E03523 HARO, GLORIA A 08/22/2024 $1,345.88 00044611 E03759 HERNANDEZ, HERMILO 08/22/2024 $2,958.16 00044612 E04622 HOFER, ALICIA M 08/22/2024 $2,274.35 00044613 E04347 HSIEH, NICOLAS C 08/22/2024 $4,703.48 00044614 E03588 HUYNH, HUY HOA 08/22/2024 $2,559.78 00044615 E04831 ILFELD, MATTHEW D 08/22/2024 $1,920.26 00044616 E01907 JACOT, ROSEMARIE 08/22/2024 $2,363.36 00044617 E04296 JOHNSON, ERIC W 08/22/2024 $2,172.87 00044618 E04979 JURADO, MICHAEL 08/22/2024 $1,462.87 00044619 E04470 KAYLOR, BRENT 08/22/2024 $2,731.84 00044620 E04728 KHALIL, MARK M 08/22/2024 $2,538.65 00044621 E03534 KIM, SAMUEL K 08/22/2024 $4,868.18 00044622 E04382 KWIATKOWSKI, BRYAN D 08/22/2024 $2,061.23 00044623 E04769 LAMAS, LEONEL A 08/22/2024 $2,370.72 00044624 E03813 LEWIS, SHAN L 08/22/2024 $3,529.26 00044625 E03301 LEYVA, RAUL 08/22/2024 $4,219.66 00044626 E05065 LOMELI, JONATHAN 08/22/2024 $1,913.01 00044627 E05202 LONDONO, MARTIN A 08/22/2024 $2,841.04 00044628 E05155 LOPEZ, MOISES 08/22/2024 $1,108.46 00044629 E05198 MALDONADO, RICARDO 08/22/2024 $2,023.41 Server Name: cognos.ggcity.org User Name: victoriac
202
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 18
Check Vendor # Vendor Name Issue Date Check Amount
00044630 E05006 MARQUEZ, STEVEN ADAM 08/22/2024 $1,914.46 00044631 E04665 MEJIA, DIEGO A 08/22/2024 $2,266.13 00044632 E03493 MENDEZ, RIGOBERTO 08/22/2024 $2,251.54 00044633 E04998 MENDOZA, LAURA 08/22/2024 $1,113.70 00044634 E04724 MOORE, DOUGLAS A 08/22/2024 $3,127.28 00044635 E04827 MORELAND, ANDREW J 08/22/2024 $1,776.29 00044636 E04222 MOSS, DANIEL C 08/22/2024 $496.98 00044637 E01243 MURRAY JR, WILLIAM E 08/22/2024 $7,308.38 00044638 E04634 NAVARRO, JUAN C 08/22/2024 $3,355.95 00044639 E04969 ORNELLAS, MICHAEL 08/22/2024 $3,571.82 00044640 E03378 ORTIZ, STEVEN T 08/22/2024 $2,624.78 00044641 E04999 ORTUNO, ANIBAL 08/22/2024 $2,309.36 00044642 E03754 PINKSTON, RICHARD L 08/22/2024 $2,645.00 00044643 E05112 POE, HEIDI L 08/22/2024 $3,295.42 00044644 E04567 POWELL, AUSTIN H 08/22/2024 $2,970.59 00044645 E03799 QUIROZ, ROLANDO 08/22/2024 $2,949.80 00044646 E05201 RAMIREZ, DANIEL A 08/22/2024 $1,306.07 00044647 E05258 RAMIREZ, GREGORY A 08/22/2024 $2,414.77 00044648 E04572 REED, MELVIN P 08/22/2024 $2,199.05 00044649 E02058 REYES, DELFRADO C 08/22/2024 $1,402.34 00044650 E04295 ROBLES, RAFAEL 08/22/2024 $2,280.52 00044651 E04563 RODRIGUEZ, ADRIANNA M 08/22/2024 $1,434.42 00044652 E05004 RUELAS, SERGIO 08/22/2024 $2,461.18 00044653 E04289 SALDIVAR, RICARDO 08/22/2024 $1,955.43 00044654 E05067 SANCHEZ, MARTIN 08/22/2024 $635.74 00044655 E05166 SEVELU, FAASEGA J 08/22/2024 $1,057.95 00044656 E04836 SOTO, WILLIAM A 08/22/2024 $2,765.86 00044657 E05089 STAIR, DEAN T 08/22/2024 $853.33 00044658 E03091 SUDDUTH, STEPHEN D 08/22/2024 $2,868.53 00044659 E01625 TAPIA, LUIS A 08/22/2024 $3,250.55 00044660 E04756 TARIN, ALEXIS P 08/22/2024 $2,333.85 00044661 E03239 TAUANU U, STEVE J 08/22/2024 $586.67 00044662 E05154 TELLO, ALEJANDRO 08/22/2024 $768.09 00044663 E04773 THURMAN JR, EDWIN O 08/22/2024 $1,184.57 00044664 E08679 THURMAN, RODERICK 08/22/2024 $2,028.04 Server Name: cognos.ggcity.org User Name: victoriac
203
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 19
Check Vendor # Vendor Name Issue Date Check Amount
00044665 E04825 TRUJILLO, JOSEPH E 08/22/2024 $1,847.61 00044666 E02482 UPHUS, MARK P 08/22/2024 $4,813.97 00044667 E03681 VASQUEZ, JOSE A 08/22/2024 $3,858.47 00044668 E05136 VASQUEZ, PEDRO 08/22/2024 $1,995.30 00044669 E05134 VEGA, ERIC J 08/22/2024 $990.38 00044670 E03727 VERGARA NEAL, ANA G 08/22/2024 $3,362.79 00044671 E05093 VIRAMONTES, ALEXANDRA 08/22/2024 $3,023.27 00044672 E01580 VU, DAI C 08/22/2024 $5,279.88 00044673 E04362 VU, KHANG L 08/22/2024 $3,096.01 00044674 E05023 YNIGUEZ, KARISSA N 08/22/2024 $2,601.34 00044675 E03436 ZIEGLER, RICK S 08/22/2024 $302.72 00044676 E03917 ALLEN, CHRISTOPHER L 08/22/2024 $0.00 00044677 E04163 AMBRIZ GARCIA, EDWARD D 08/22/2024 $1,941.05 00044678 E05098 BARNESE, VINCENZO A 08/22/2024 $2,759.81 00044679 E04063 BERGER, JAN 08/22/2024 $4,253.52 00044680 E00651 BERMUDEZ, ROBERT P 08/22/2024 $3,756.66 00044681 E03495 BLAS, VICTOR T 08/22/2024 $2,809.70 00044682 E00070 CANNON, TIM P 08/22/2024 $3,947.71 00044683 E04365 DAN, CARINA M 08/22/2024 $2,665.32 00044684 E04440 DAVIS, RYAN H 08/22/2024 $1,785.53 00044685 E03145 DE LA ROSA, FRANK X 08/22/2024 $2,842.85 00044686 E03051 DIEMERT, RONALD W 08/22/2024 $2,718.97 00044687 E02718 ESCOBAR, CHRIS N 08/22/2024 $4,665.90 00044688 E03688 GLENN, JEREMY J 08/22/2024 $193.72 00044689 E01618 GOMEZ, JOSE 08/22/2024 $2,447.64 00044690 E02701 GONZALEZ, ALEJANDRO 08/22/2024 $4,731.09 00044691 E03763 GRIFFIN, LARRY 08/22/2024 $1,546.61 00044692 E04828 GUERRERO, MICHAEL V 08/22/2024 $4,155.08 00044693 E04018 HAENDIGES, ROBERT A 08/22/2024 $2,349.42 00044694 E03575 HART, RYAN S 08/22/2024 $3,737.46 00044695 E03399 HOWENSTEIN, FRANK D 08/22/2024 $2,685.14 00044696 E03406 HUY, EDWARD A 08/22/2024 $2,575.22 00044697 E03446 JIMENEZ, VIDAL 08/22/2024 $2,015.87 00044698 E04782 JIN, LIYAN 08/22/2024 $2,925.68 00044699 E03254 KIRZHNER, ALLEN G 08/22/2024 $3,061.42 Server Name: cognos.ggcity.org User Name: victoriac
204
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 20
Check Vendor # Vendor Name Issue Date Check Amount
00044700 E05115 KOUTSOYANOPULOS, ALDOCHRIS V 08/22/2024 $1,888.03 00044701 E02852 LADNEY, MARK W 08/22/2024 $2,922.86 00044702 E03988 LI, REBECCA PIK KWAN 08/22/2024 $4,520.68 00044703 E02063 MA AE, DAVID 08/22/2024 $2,337.63 00044704 E05168 MACIAS, DANIEL 08/22/2024 $2,308.88 00044705 E03249 MANSON, RAQUEL K 08/22/2024 $3,120.79 00044706 E04837 MARTINEZ, ALFREDO 08/22/2024 $2,234.56 00044707 E02124 MEISLAHN, TYLER 08/22/2024 $2,220.91 00044708 E04403 MONTGOMERY, JESSE K 08/22/2024 $2,722.64 00044709 E03590 MOYA JR, STEVEN J 08/22/2024 $2,573.94 00044710 E03519 MURAD, BASIL G 08/22/2024 $3,086.55 00044711 E03144 NATLAND, KIRK L 08/22/2024 $33.86 00044712 E04291 NGUYEN, DUC TRUNG 08/22/2024 $2,436.14 00044713 E04904 NGUYEN, LISA 08/22/2024 $2,128.22 00044714 E03221 NICOLAE, CORNELIU 08/22/2024 $3,755.03 00044715 E04210 NUNES, BRANDON S 08/22/2024 $2,104.39 00044716 E03923 ORNELAS, ANDREW I 08/22/2024 $2,747.75 00044717 E03582 ORTEGA, DAVID A 08/22/2024 $2,942.20 00044718 E03578 PASILLAS, CELESTINO J 08/22/2024 $3,174.79 00044719 E03170 PEARSON, WILLIAM F 08/22/2024 $2,722.16 00044720 E04805 POLIDORI, JESSICA J 08/22/2024 $2,674.76 00044721 E02500 PORRAS, STEPHEN 08/22/2024 $3,681.69 00044722 E05031 RAMIREZ, AACIN 08/22/2024 $1,989.49 00044723 E07590 RUITENSCHILD, LES A 08/22/2024 $3,625.37 00044724 E03926 RUIZ, JONATHAN 08/22/2024 $3,060.03 00044725 E05165 SANCHEZ, ALLEN J 08/22/2024 $1,052.96 00044726 E07690 SANTOS, ALEXIS 08/22/2024 $2,217.51 00044727 E07692 SARMIENTO, ADRIAN M 08/22/2024 $2,825.68 00044728 E04956 SON, TOMMY T 08/22/2024 $2,308.79 00044729 E04301 TALAMANTES JR, ALBERT 08/22/2024 $2,371.27 00044730 E04121 TRAN, MINH K 08/22/2024 $3,290.37 00044731 E08881 VALENZUELA, ALEJANDRO N 08/22/2024 $6,150.40 00044732 E01882 VIRAMONTES, JESSE 08/22/2024 $0.00 00044733 E04195 WOLLAND, RONALD J 08/22/2024 $2,536.62 00044734 E09940 YERGENSEN, VICTOR K 08/22/2024 $2,402.90 Server Name: cognos.ggcity.org User Name: victoriac
205
CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Aug 22, 2024
Report Generated on Aug 21, 2024 4:36:17 PM Page 21
Check Vendor # Vendor Name Issue Date Check Amount
00044735 E05169 ZAMORA, JOEL D 08/22/2024 $2,007.05 00044736 E09954 ZAVALA, JOHN 08/22/2024 $2,982.69 00044737 E05212 AREGUINI, SARA 08/22/2024 $702.93 00044738 E05099 BECK, CRAIG A 08/22/2024 $2,231.97 00044739 E00740 BLODGETT, GREG 08/22/2024 $7,033.25 00044740 E01338 CARRENO, SHAUNA J 08/22/2024 $2,122.11 00044741 E03808 CHENG, ALANA R 08/22/2024 $3,341.25 00044742 E03353 COVARRUBIAS, MONICA 08/22/2024 $3,919.37 00044743 E03697 GUERRERO, PAUL 08/22/2024 $4,052.46 00044744 E04750 HO, VY D 08/22/2024 $2,014.49 00044745 E04968 HONG, SEUNGBUM 08/22/2024 $2,284.81 00044746 E02612 KLOESS, VILMA C 08/22/2024 $3,286.45 00044747 E01949 LE, IVY 08/22/2024 $2,518.08 00044748 E05092 LE, LINH D 08/22/2024 $2,448.21 00044749 E01280 LE, TAMMY 08/22/2024 $1,709.45 00044750 E03617 LEE, GRACE E 08/22/2024 $3,334.89 00044751 E05159 LUNA-REYNOSA, URSULA 08/22/2024 $7,348.44 00044752 E05180 MEDINA, MELANIE 08/22/2024 $1,544.41 00044753 E02895 MOURE, SVETLANA 08/22/2024 $2,653.06 00044754 E05181 NGUYEN, DAVID 08/22/2024 $1,568.07 00044755 E03255 NGUYEN, PHUONG VIEN T 08/22/2024 $2,307.32 00044756 E02560 NGUYEN, QUANG 08/22/2024 $2,810.39 00044757 E01286 NGUYEN, TINA T 08/22/2024 $2,116.04 00044758 E03541 PHI, THYANA T 08/22/2024 $3,244.01 00044759 E05106 ROMERO, ALEX 08/22/2024 $2,030.87 00044760 E05211 SURJONO, FRUMENTIUS C 08/22/2024 $696.84 00044761 E04408 THRONE, TIMOTHY E 08/22/2024 $2,490.46 00044762 E02543 TO, TANYA L 08/22/2024 $1,746.36 00044763 E01971 TRAN, CUONG K 08/22/2024 $2,293.16 00044764 E02056 TRUONG, ELAINE 08/22/2024 $1,882.34 00044765 E02562 VO, THANH-NGUYEN 08/22/2024 $2,136.35 00044766 E05104 YANG, DANA DAEUN 08/22/2024 $2,316.63 EFT - Total $1,843,078.63
Overall - Total $1,860,703.62
Server Name: cognos.ggcity.org User Name: victoriac
206
Item 366/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 9/10/2024
Subject: Approval of a Lease Agreement with Farmers and Merchants Bank for office space located at 12966 Euclid Street, Garden Grove. (Action Item)
OBJECTIVE
For City Council to consider a lease agreement (the “Agreement”), by and between the City of Garden Grove (the “City” of “Lessor”) and Farmers and Merchant s (F&M) Bank (the “Lessee”), for the property commonly referred to as 12966 Euclid Street, Suite No. 150, Garden Grove (the “Premises”).
BACKGROUND
On November 30, 2023, the City acquired a five-story office building located at 12966 Euclid Street (the “Property”) from LT Properties Company. The office building is approximately 64,402 square feet. The office building was originally constructed in 1985, with an onsite surface parking lot. Currently, the building has eight (8) unoccupied office suites, including the Premises. Upon execution of the Agreement, the building will be at 82% occupancy.
DISCUSSION
The Lessee is seeking a new branch office to replace an existing facility located at 10422 Garden Grove Boulevard. This branch has served the Garden Grove communi ty since 1955.
The Lessee is interested in leasing the Premises, estimated at 5,332 rentable square feet 1, for a term of eleven (11) years , scheduled to expire on September 10, 2034. Staff has negotiated and finalized the attached Agreement which contains the following salient points:
Premises: Suite No. 150, 12966 Euclid Street, Garden Grove, CA 92840. Lease Term: Eleven (11) years, commencing on delivery date, ending last day of the 132nd full calendar month.
Base Rent: $2.50 per square foot per month, starting from the commencement date.
1 Final rentable square footage for the Premises will be measured and calculated after the demising wall is installed pursuant to BOMA (Building Owners and Managers Association) Office Standard. 207
Item 366/2024
Annual Rent Adjustment: Fixed the first year with potential adjustments outlined in Paragraph 50 of the Agreement.
Operating Expenses: Lessee will cover 8.28% of the building’s operating expenses.
Estimated first-year expenses are $11,530.00.
Parking: Total of 16 spaces; 14 unreserved spaces at no cost and 2 reserved spaces at $125.00 each per month.
Brokerage: City’s leasing agent is CBRE (City professional agreement) and Lessee has no representative.
Security Deposit: Lessee will pay $17,392.63.
Rent Abatement: Twelve (12) months.
FINANCIAL IMPACT
After the 12 month rent abatement period, the estimated gross annual rental income is $162,960, including the two reserved parking spaces. With three percent ( 3%) annual increase per the Agreement, approximately $1,863,762 will be generated over the entire lease term. Additionally, Lessee will contribute 8.28% of the building’s operating expenses annually, equivalently to approximately $11,530.
RECOMMENDATION
It is recommended that the City Council:
Approve the Lease Agreement for the Premises; and
Authorize the City Manager to execute the Agreement, including any minor modifications or amendments as appropriate, and any other pertinent documents necessary to effectuate and/or implement the Agreement on behalf of the City.
By: Paul Guerrero, Senior Real Property Agent
ATTACHMENTS
1. F&M Lease Agreement
2. Lease Amendment
208
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page1of18
1. BasicProvisions ("BasicProvisions").
1.1 ParƟes. This Lease("Lease"), datedforreference purposesonly September 5, 2024 ,ismade byand between The City of Garden Grove ("Lessor")and Farmers and Merchants Bank of Long Beach ("Lessee"), (collecƟvelythe"ParƟes", or individuallya "Party").
1.2(a) Premises: Thatcertain PorƟonofthe Project(as definedbelow),commonly knownas (streetaddress,suite, city,state): 12966 Euclid Street, Suite 150, Garden Grove, CA 92840 ("Premises"). ThePremises arelocatedin theCounty of Orange ,and consistof approximately 5,332 rentablesquare feetandapproximately useable squarefeet. In addiƟon toLessee's rightstouse andoccupy thePremises as hereinaŌer specified,Lessee shallhavenon-exclusive rightsto theCommon Areas(as defined inParagraph2.7below)as hereinaŌer specified, butshallnot have anyrights tothe roof,theexterior walls,the areaabove thedroppedceilings, orthe uƟlityracewaysof thebuilding containingthePremises ("Building")or toany otherbuildings inthe Project. The Premises,the Building,the CommonAreas,the landupon whichtheyare located,along withallother buildingsand improvements thereon,are herein collecƟvely referredtoas the"Project." The Projectconsistsof approximately 64,402 rentablesquarefeet. (See alsoParagraph2)
1.2(b) Parking: 14 unreservedand 2 reservedvehicle parkingspaces atamonthly costof $125.00 perunreserved space and $125.00 perreserved space. (See Paragraph2.6)
1.3 Term: Eleven (11) yearsand Zero (0) months("Original Term")commencing on the Lessor Delivery Date as further defined in Section 59 of the ADDENDUM ("CommencementDate") andending on the last day of the 132nd full calendar month following the Commencement Date ("ExpiraƟonDate"). (See alsoParagraph3)
1.4 Early Possession: IfthePremises areavailable Lesseemay havenon-exclusivepossession ofthe Premisescommencing ("EarlyPossession Date"). (Seealso Paragraphs3.2and 3.3)
1.5 Base Rent: $2.50 per rentable square foot ("RSF") per month("BaseRent"), payableon the first (1st) dayof eachmonth commencing upon the Commencement Date, subject to rent abatement further defined in Paragraph 50 . (See alsoParagraph 4)
Ifthis boxis checked,thereare provisionsin thisLease fortheBase Rentto beadjusted. SeeParagraph 50 .
1.6 Lessee's Shareof OperaƟngExpense Increase. Eight and twenty-eight hundredths percent ( 8.28 %)("Lessee's Share"). Inthe eventthatthe sizeof thePremises and/ortheProject are modified duringtheterm ofthis Lease,Lessorshall recalculateLessee's Shareto reflectsuch modificaƟon.
1.7 Base Rentand OtherMonies PaidUpon ExecuƟon:
1.8 Agreed Use: The Premises may be used for financial and banking and trust services only . (Seealso Paragraph6)
1.9 Base Year;Insuring Party. TheBaseYearis 2025 . Lessoris the"Insuring Party".(See alsoParagraphs4.2 and8)
1.10 Real EstateBrokers. (Seealso Paragraphs15and 25)
agency relaƟonships inthis Leasewiththe followingreal estatebrokers("Broker(s)")and/ortheir agents("Agent(s)"):
STANDARDMULTI-TENANTOFFICE LEASE-GROSS
(a) Base Rent: $13,330.00 for theperiod of the 13th month following the Commencement Date . (b) SecurityDeposit: $17,392.63 ("SecurityDeposit"). (Seealso Paragraph5) (c) Parking: N/A for theperiod N/A .
(d) Other: for .
(e) TotalDueUpon ExecuƟon ofthis Lease: $30,722.63 .
(a) RepresentaƟon: Each Partyacknowledgesreceiving aDisclosure RegardingReal EstateAgencyRelaƟonship, confirmsand consentstothe following Lessor'sBrokerage Firm CBRE, Inc. License No. 00409987 Isthe brokerof(check one): theLessor;or both theLessee and Lessor(dual agent).
Lessor'sAgent Peter Wells and Taylor Friend LicenseNo. 01718361 and 01885394 is(check one): the Lessor'sAgent (salespersonor brokerassociate);or both theLessee's Agentandthe Lessor'sAgent (dualagent).
Lessee'sBrokerage Firm None License No. Isthe brokerof(check one): theLessee;or both theLessee andLessor(dual agent).
Lessee'sAgent None LicenseNo. is (checkone): theLessee's Agent(salesperson orbrokerassociate); or boththe Lessee's Agentand theLessor's Agent(dualagent).
(b) Paymentto Brokers. Upon execuƟon anddelivery ofthisLease byboth ParƟes,Lessorshall payto theBrokersthe brokeragefee agreedto ina separate wriƩen agreement(or ifthere isnosuch agreement,the sumof or %of thetotalBase Rent)for thebrokerageservicesrendered bythe Brokers.
1.11 Guarantor. The obligaƟons oftheLessee underthis Leaseare tobeguaranteed by ("Guarantor"). (SeealsoParagraph 37)
1.12 Business Hoursforthe Building: 8:00 a.m.to 6:00 p.m., MondaysthroughFridays (exceptBuilding Holidays)and ---- a.m.to ---- p.m.on Saturdays(except BuildingHolidays). "BuildingHolidays" shallmeanthe datesof observaƟonof NewYear'sDay,President'sDay,MemorialDay, IndependenceDay,LaborDay,ThanksgivingDay,Christmas Day,and other holidays as determined by Lessor . 209
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page2of18
1.13 Lessor SuppliedServices. Notwithstanding theprovisionsof Paragraph11.1, LessorisNOT obligatedto providethefollowing withinthe Premises:
Janitorialservices
Electricity(ThePremisesshallbeseparatelymeteredforsuiteelectricity,tobepaidbyLessee) Other(specify):
1.14 AƩachments. AƩachedhereto arethe following,allof which consƟtute apartof thisLease:
anAddendum consisƟngof Paragraphs 52 through 73 ;
aplot plan depicƟng thePremises;
acurrent setof theRulesand RegulaƟons;
aWork LeƩer;
ajanitorial schedule;
other(specify): Paragraph 50: Rent Adjustments, Paragraph 51: Option to Extend, Addendum consisting of Paragraphs 52 to 73, Rules and Regulations, Commencement Date Memorandum .
2. Premises.
2.1 Leƫng. Lessor herebyleases toLessee,and Lesseehereby leasesfromLessor,thePremises, fortheterm, atthe rental,and uponallof theterms, covenantsand condiƟonsset forthinthis Lease. Whilethe approximatesquarefootageofthe Premisesmay havebeenused inthe markeƟngofthe Premisesfor purposesof comparison,the BaseRentstated hereinis NOT Ɵed tosquarefootageandis notsubjectto adjustmentshould theactualsize bedetermined tobe different. NOTE: Lesseeisadvised toverify theactual sizepriorto execuƟngthis Lease.
2.2 CondiƟon. Lessor shalldeliverthe Premisesto Lesseein aclean condiƟon onthe Commencement Dateor theEarly PossessionDate,whichever firstoccurs ("StartDate"), andwarrants thatthe exisƟng electrical,plumbing, firesprinkler, lighƟng, heaƟng, venƟlaƟng andair condiƟoningsystems("HVAC"), andall otheritems whichthe Lessoris obligatedtoconstruct pursuantto theWork LeƩer aƩachedhereto, ifany,otherthanthose constructedby Lessee,shallbe ingood operaƟng condiƟonon saiddate, thatthestructural elementsof theroof,bearingwallsand foundaƟonof theUnitshall befree ofmaterialdefects, andthat thePremises donot containhazardous levelsof anymoldor fungi defined astoxic underapplicablestate orfederallaw. Lessor alsowarrants, thatunlessotherwise specifiedin wriƟng, Lessoris unawareof (i)anyrecorded NoƟcesof Default affecƟng thePremise;(ii) anydelinquent amountsdueunder anyloan securedbythe Premises;and (iii)any bankruptcyproceeding affecƟngthe Premises.
2.3 Compliance. Lessor warrantsthat tothebest ofits knowledgetheimprovements onthe Premisesandthe CommonAreas complywith thebuildingcodes, applicablelaws, covenantsor restricƟonsofrecord, regulaƟons,and ordinances("Applicable Requirements")thatwere in effect atthe Ɵme thateach improvement, or porƟon thereof,was constructed. Said warrantydoes notapply totheuse towhich Lesseewillput thePremises, modificaƟonswhichmay berequired bythe Americanswith DisabiliƟesAct oranysimilar lawsas aresult ofLessee'suse (seeParagraph49),orto any AlteraƟons or UƟlity InstallaƟons (as defined inParagraph
7.3(a))made orto bemadeby Lessee. NOTE:Lessee isresponsiblefor determiningwhether ornotthe zoningand otherApplicableRequirements areappropriate forLessee's intendeduse, andacknowledgesthat pastuses ofthe Premisesmayno longerbe allowed. If thePremises donotcomply withsaid warranty,Lessor shall,except asotherwise provided,promptly aŌer receiptof wriƩen noƟce fromLessee seƫng forthwith specificitythenature andextent ofsuchnon-compliance, recƟfythe same. IftheApplicable Requirementsare hereaŌerchanged soasto requireduring thetermof thisLease the construcƟonof an addiƟon toor an alteraƟonof thePremises, the remediaƟonof anyHazardous Substance,or thereinforcementor otherphysical modificaƟonofthe Premises("Capital Expenditure"), Lessorand Lesseeshall allocatethecost ofsuch workas follows:
(a) Subject toParagraph 2.3(c)below,if suchCapital Expenditures are requiredasa resultof the specificand uniqueuse ofthePremises byLessee as comparedwith usesby tenantsingeneral, Lesseeshall befully responsibleforthe costthereof,provided,however,that ifsuch CapitalExpenditureis requiredduring thelast 2years ofthisLease andthe costthereof exceeds6months' BaseRent, Lesseemayinstead terminatethis LeaseunlessLessor noƟfiesLessee, in wriƟng, within10 days aŌer receiptofLessee's terminaƟon noƟce thatLessor haselectedto paythe differencebetweenthe actualcost thereofandthe amountequal to6 months'Base Rent. IfLesseeelects terminaƟon,Lessee shallimmediately ceasetheuse ofthe Premiseswhichrequires suchCapital Expenditureanddeliver toLessor wriƩen noƟce specifying a terminaƟondateat least90 days thereaŌer .Such terminaƟon dateshall, however,inno eventbe earlierthanthe lastday thatLessee couldlegally uƟlizethe Premiseswithoutcommencing suchCapital Expenditure. (b) Ifsuch CapitalExpenditure isnotthe resultof the specific anduniqueuse ofthe PremisesbyLessee (suchas, governmentallymandatedseismic modificaƟons),then Lessorshall payforsuch CapitalExpenditure andLessee shallonlybe obligatedto pay,eachmonth duringthe remainderofthe termof thisLease orany extensionthereof,onthedate thaton whichthe BaseRentis due,an amountequalto 1/144thof the porƟonof suchcosts reasonably aƩributable tothe Premises. Lesseeshall payIntereston thebalance butmay prepayits obligaƟon atany Ɵme. If,however,such CapitalExpenditureis requiredduring thelast 2years ofthis Leaseor ifLessorreasonably determinesthat itis noteconomicallyfeasible topay itssharethereof, Lessorshall havethe opƟon toterminate thisLease upon 90days prior wriƩen noƟcetoLessee unlessLessee noƟfiesLessor,in wriƟng,within 10days aŌerreceiptof Lessor's terminaƟon noƟcethatLessee willpay forsuch CapitalExpenditure. If Lessordoesnot electto terminate,and failstotender itsshare ofanysuch CapitalExpenditure, Lesseemayadvance suchfunds anddeduct same,with Interest,from Rent unƟlLessor's shareof suchcosts havebeenfully paid. IfLesseeis unableto financeLessor'sshare, orif thebalance oftheRent due andpayable forthe remainderofthis Leaseis not sufficient tofullyreimburse Lesseeon an offsetbasis, Lesseeshall havetheright toterminate thisLease upon30 days wriƩen noƟceto Lessor.If,however,suchCapitalExpenditureisrequiredduringthelast2yearsofthisLeaseorifLessoror Lesseereasonablydeterminethatitisnoteconomicallyfeasibletopaytheirsharethereof,LessororLesseeshallhavethe optiontoterminatethisLeaseupon90dayspriorwrittennoticeunlessthenon-terminatingpartynotifiestheother,in writing,within10daysafterreceiptoftheterminationnoticethattheywillpayforsuchCapitalExpenditure. (c) Notwithstandingthe above,the provisionsconcerningCapital Expendituresare intendedto applyonlyto non-voluntary,unexpected, andnew ApplicableRequirements. If theCapitalExpenditures areinstead triggeredby Lesseeasa resultof anactualor proposedchange inuse,change inintensity ofuse, or modificaƟonto thePremises then,andin thatevent, Lesseeshall either:(i)immediately ceasesuch changeduseor intensityof useand/ortakesuchother stepsas maybe necessaryto eliminatetherequirement forsuch CapitalExpenditure, or(ii)complete suchCapital Expenditureatits ownexpense. Lesseeshall nothave any rightto terminatethis Lease.
2.4 Acknowledgements. Lessee acknowledgesthat: (a)it hasbeen givenanopportunity toinspect andmeasurethe Premises,(b) Lesseehas beenadvisedby Lessorand/or Brokersto saƟsfyitselfwith respectto thesize and condiƟonof thePremises (includingbutnot limitedto theelectrical,HVAC and fire sprinkler systems,security,environmental aspects,andcompliance withApplicable Requirements),and theirsuitabilityfor Lessee'sintended use,(c)Lessee hasmade such 210
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page3of18
invesƟgaƟonas itdeems necessarywithreference tosuch maƩersand assumesallresponsibility thereforas thesamerelate toits occupancyofthe Premises,(d) itis notrelying onany representaƟonasto thesize ofthe Premisesmadeby Brokersor Lessor,(e)the squarefootage ofthePremises wasnot materialto Lessee's decisionto leasethe Premisesandpay theRent statedherein, and(f)neither Lessor,Lessor's agents,norBrokershavemade anyoralor wriƩen representaƟons or warranƟeswith respectto said maƩersother thanas setforth inthisLease. In addiƟon,Lessoracknowledges that:(i) Brokershavemade no representaƟons, promisesor warranƟesconcerning Lessee'sabilityto honorthe Leaseor suitabilitytooccupy thePremises, and(ii)it isLessor's soleresponsibilityto invesƟgatethe financialcapability and/orsuitability ofallproposed tenants.
2.5 Lessee asPrior Owner/Occupant. The warranƟesmade byLessor inParagraph2 shallbe ofnoforce or effect ifimmediatelyprior tothe StartDate, Lessee wasthe owneror occupantofthe Premises. Insuch event,Lesseeshall beresponsible foranynecessary correcƟvework.
2.6 Vehicle Parking. Solongas Lesseeis notin default,andsubject tothe Rulesand RegulaƟons aƩachedhereto, andasestablished byLessor from Ɵme to Ɵme,Lessee shallbe enƟtledtorent anduse thenumber ofparkingspaces specifiedin Paragraph1.2(b)at therental rateapplicablefrom Ɵmeto Ɵmefor monthly parkingas setby Lessorand/orits licensee.
(a) If Lesseecommits, permitsorallows anyof theprohibited acƟviƟesdescribedin theLease ortherules thenin effect,thenLessor shallhave theright, without noƟce, in addiƟon tosuchother rightsand remediesthat itmayhave, toremove ortowaway thevehicle involvedandcharge thecost toLessee, whichcost shallbe immediatelypayable upondemandby Lessor.
(b) Themonthly rentper parkingspace specified inParagraph 1.2(b)issubject tochange upon30 daysprior wriƩen noƟceto Lessee. The rentfor the parkingis payableone monthinadvance priorto the first dayofeach calendarmonth.
2.7 Common Areas- DefiniƟon. Theterm"Common Areas"is definedasall areasand faciliƟesoutsidethe Premisesand withinthe exteriorboundaryline of theProject andinterior uƟlityracewaysand installaƟonswithin thePremises thatareprovided anddesignated bytheLessor from Ɵme to Ɵmefor thegeneral non-exclusiveuse ofLessor,Lesseeandother tenantsof theProject andtheir respecƟve employees,suppliers, shippers,customers,contractors andinvitees, including parkingareas, loadingand unloadingareas,trash areas,roofs, roadways,walkways, drivewaysandlandscaped areas.
2.8 Common Areas- Lessee'sRights. Lessorgrants toLessee, forthe benefit ofLessee anditsemployees, suppliers,shippers, contractors,customers and invitees,during theterm ofthisLease, thenon-exclusive rightto use,incommon withothers enƟtledtosuch use,the CommonAreasas theyexist from Ɵme to Ɵme, subjectto anyrights, powers,andprivileges reservedby Lessorunder thetermshereof orunder thetermsof anyrules and regulaƟonsor restricƟonsgoverning the useof theProject. Underno circumstancesshall theright hereingrantedto usethe CommonAreasbe deemedto includetheright tostore anyproperty,temporarily orpermanently, inthe CommonAreas. Anysuch storageshall be permiƩedonly bythe prior wriƩenconsent ofLessor orLessor'sdesignated agent,which consent maybe revokedat any Ɵme. Inthe eventthat anyunauthorizedstorageshalloccur,thenLessorshall havethe right,without noƟce, in addiƟon tosuch otherrights andremedies thatit mayhave,to removethe propertyand chargethecost toLessee, whichcostshall beimmediately payableupondemand byLessor.
2.9 Common Areas- Rulesand RegulaƟons. Lessor orsuch otherperson(s)as Lessormay appointshallhave theexclusive controland managementofthe CommonAreas andshall havetheright, from Ɵme to Ɵme, toadopt,modify,amendand enforcereasonablerules and regulaƟons ("Rulesand RegulaƟons") forthe management,safety,care,and cleanlinessofthe grounds,the parkingand unloadingofvehicles andthe preservaƟonofgood order,as wellasfor theconvenience of otheroccupants ortenants oftheBuilding andthe Projectand theirinvitees. TheLessee agreestoabide byand conformtoall suchRules and RegulaƟons, andshall useits best efforts tocauseits employees,suppliers, shippers,customers, contractorsandinvitees toso abideandconform. Lessor shallnotbe responsibleto Lessee forthe noncompliancewith saidRulesand RegulaƟonsby othertenants oftheProject.
2.10 Common Areas-Changes. Lessor shallhavethe right,in Lessor'ssole discreƟon, from Ɵme to Ɵme:
(a) Tomakechanges totheCommon Areas,including, without limitaƟon, changesinthe locaƟon,size, shapeandnumber ofthe lobbies,windows, stairways,air shaŌs,elevators, escalators,restrooms,driveways, entrances,parking spaces,parking areas,loadingand unloadingareas, ingress,egress, direcƟon of traffic,landscaped areas,walkways and uƟlityraceways;
(b) Toclose temporarilyany oftheCommon Areasfor maintenancepurposesso longas reasonableaccess tothePremises remainsavailable; (c) Todesignate otherland outsidetheboundaries ofthe Projectto beapart ofthe CommonAreas; (d) Toadd addiƟonalbuildings andimprovementsto theCommon Areas; (e) TousetheCommon Areaswhile engagedin making addiƟonalimprovements, repairsor alteraƟonstothe Project,or any porƟonthereof; and (f) Todoandperform suchother actsandmake suchother changesin,to orwith respectto theCommonAreas andProject asLessormay,inthe exerciseof soundbusiness judgment,deemto beappropriate.
3. Term.
3.1 Term. The CommencementDate, ExpiraƟonDateand OriginalTermofthisLease areas specifiedinParagraph 1.3.
3.2 Early Possession. Anyprovision herein granƟngLessee EarlyPossession ofthePremises issubject toand condiƟoned uponthe Premisesbeing availablefor suchpossession priorto theCommencement Date. Any grantof EarlyPossessiononly conveysa non-exclusiverightto occupythe Premises. If Lesseetotally or parƟallyoccupies thePremises priortothe CommencementDate, the obligaƟon topayBase Rentshall beabatedfor theperiod ofsuchEarly Possession. Allother termsof thisLease (includingbutnot limitedto the obligaƟons topayLessee's Shareof theOperaƟngExpense Increase)shall bein effect duringsuch period. Any suchEarly Possessionshall not affectthe ExpiraƟonDate.
3.3 Delay InPossession. Lessor agreestouse commerciallyreasonable effortstodeliver exclusivepossession ofthePremises toLessee bythe CommencementDate. If, despitesaid efforts, Lessoris unableto deliverpossessionby suchdate, Lessorshallnot besubject toanyliability therefor,nor shallsuch failure affect thevalidity ofthisLease orchange the ExpiraƟon Date. Lessee shallnot, however,beobligated topay Rentorperform itsother obligaƟons unƟl Lessor deliverspossession ofthe Premisesandany periodof rentabatement thatLesseewould otherwisehave enjoyedshallrun fromthe dateofdelivery ofpossession and conƟnuefor aperiod equaltowhat Lesseewould otherwisehave enjoyedunderthe termshereof,butminusany daysof delaycausedby theacts oromissions of Lessee. Ifpossession isnotdelivered within60 days aŌer theCommencementDate, asthe samemaybe extendedunder thetermsof anyWork LeƩerexecuted by ParƟes,Lessee may,at its opƟon,by noƟcein wriƟngwithin 10days aŌer theend ofsuch60 dayperiod, cancelthisLease, inwhich eventthe ParƟesshallbe dischargedfrom all obligaƟons hereunder. If such wriƩen noƟceis notreceivedby Lessorwithin said10day period,Lessee's righttocancel shallterminate. If possessionof thePremises isnotdelivered within120 days aŌer theCommencementDate, thisLease shallterminateunless otheragreements arereachedbetween Lessorand Lessee,in wriƟng.
3.4 Lessee Compliance. Lessorshall notberequired todeliver possessionofthe Premisesto Lessee unƟlLessee complieswith its obligaƟon toprovide evidenceof insurance(Paragraph 8.5). Pending deliveryof suchevidence, Lesseeshallbe requiredto performallof its obligaƟons underthisLease fromand aŌerthe StartDate, includingthe paymentofRent, notwithstandingLessor's elecƟonto withholdpossessionpending receiptof suchevidenceof insurance. Further,ifLessee isrequired toperform anyother condiƟons priorto orconcurrent withtheStart Date,the StartDateshall occurbut Lessormayelect towithhold possession unƟl such condiƟonsare saƟsfied.
4. Rent.
211
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page4of18
4.1 Rent Defined. Allmonetary obligaƟonsofLessee toLessor undertheterms ofthis Lease(exceptfor theSecurity Deposit)are deemedtobe rent("Rent").
4.2 OperaƟng ExpenseIncrease. Lessee shallpayto Lessorduring thetermhereof,in addiƟon totheBase Rent,Lessee's Shareof theamountby whichall OperaƟngExpenses foreach ComparisonYearexceedstheamount ofall OperaƟngExpensesfor theBase Year,suchexcess being hereinaŌer referredtoas the "OperaƟngExpense Increase",in accordancewiththe followingprovisions:
(a) "Base Year"is as specifiedin Paragraph1.9.
(b) "Comparison Year" is defined aseachcalendar yearduring thetermof thisLease subsequentto theBaseYear;provided,however,Lesseeshallhave no obligaƟon topay ashareof the OperaƟng ExpenseIncrease applicabletothe first12 monthsofthe LeaseTerm(otherthansuch asare mandatedby a governmentalauthority,asto whichgovernmentmandated expensesLessee shallpay Lessee'sShare,notwithstanding theyoccur duringthe first twelve(12) months).
Lessee'sShare ofthe OperaƟngExpenseIncrease forthe firstand lastComparisonYearsofthe LeaseTermshall beprorated accordingtothat porƟonof such ComparisonYearasto whichLesseeis responsiblefor ashare ofsuchincrease. (c) Thefollowing costs relaƟng totheownership and operaƟon ofthe Project,calculatedas ifthe Projectwasat least95% occupied,are defined as "OperaƟngExpenses":
(i) Costs relaƟng tothe operaƟon,repair,andmaintenancein neat,clean, safe,goodorder and condiƟon, butnotthe replacement(see subparagraph(g)), ofthe following:
(aa) The CommonAreas, includingtheirsurfaces, coverings, decoraƟve items,carpets,drapes andwindow coverings,andincluding parking areas,loading andunloading areas,trashareas, roadways,sidewalks, walkways,stairways, parkways,driveways,landscaped areas,striping, bumpers, irrigaƟon systems,Common Area lighƟng faciliƟes,buildingexteriors androofs, fencesand gates; (bb) All heaƟng,air condiƟoning,plumbing, electrical systems,life safetyequipment,communicaƟon systemsand otherequipmentused in commonby,orfor the benefitof,tenantsor occupantsof theProject,including elevatorsand escalators,tenantdirectories, fire detecƟon systemsincludingsprinkler systemmaintenance andrepair.
(cc) Allotherareas andimprovements thatarewithin theexterior boundariesofthe Projectbut outsideof thePremisesand/or anyother spaceoccupied bya tenant.
(ii) Thecostof trashdisposal, janitorialand securityservices,pest controlservices, andthecosts ofany environmental inspecƟons; (iii) The costofany otherservice tobeprovided byLessor thatis elsewhereinthis Leasestated tobean "OperaƟngExpense"; (iv) The costofthe premiumsfor theinsurance policiesmaintainedby Lessorpursuant toparagraph8 andany deducƟble porƟonof aninsured loss concerningthe Buildingor theCommonAreas;
(v) Theamount oftheReal PropertyTaxespayablebyLessor pursuantto paragraph10; (vi) The costofwater,sewer,gas, electricity,and otherpubliclymandated servicesnot separatelymetered; (vii) Labor,salaries, andapplicablefringe benefitsand costs,materials, suppliesandtools, usedin maintainingand/orcleaning theProject and accounƟngand managementfees aƩributabletothe operaƟonof theProject; (viii) The costof anycapitalimprovement tothe Buildingorthe Projectnot coveredunder theprovisionsof Paragraph2.3 provided;however,that Lessorshall allocatethe costofany suchcapital improvement overa12 yearperiod andLesseeshall notbe requiredtopay morethan Lessee'sShare of1/144thof thecost ofsuch CapitalExpenditurein anygiven month;
(ix) The costto replaceequipment orimprovementsthat havea usefullifefor accounƟngpurposes of5years orless. (x) Reservesset asidefor maintenance,repairand/or replacementof CommonAreaimprovements andequipment. (d) Anyitem of OperaƟng Expensethatis specifically aƩributable tothePremises, theBuilding orto anyotherbuilding inthe Projectorto the operaƟon, repairand maintenancethereof, shallbeallocated enƟrelyto suchPremises, Building,orother building. However,anysuch itemthat isnot specifically aƩributableto theBuilding orto anyotherbuilding orto the operaƟon, repairandmaintenance thereof,shall beequitablyallocated byLessor toallbuildings inthe Project. (e) The inclusionofthe improvements, faciliƟes andservices setforthin Subparagraph4.2(c) shallnotbe deemedto imposean obligaƟon uponLessor to eitherhave saidimprovements or faciliƟesor toprovide thoseservices unlesstheProject alreadyhas thesame,Lessor alreadyprovides theservices,or Lessorhas agreedelsewhere inthis Leasetoprovide thesame orsome ofthem. (f) Lessee's Shareof OperaƟng ExpenseIncrease ispayablemonthly onthe samedayas theBase Rentis duehereunder. Theamount ofsuchpayments shallbe basedon Lessor's esƟmateof the OperaƟng Expenses. Within90 60 days aŌer wriƩen request(but notmorethan onceeach year)Lessor shalldeliverto Lesseea reasonablydetailed statementshowingLessee's Shareof theactual CommonArea OperaƟng Expensesfor theprecedingyear. If Lessee'spaymentsduring suchYearexceedLessee's Share,Lesseeshall creditthe amountof suchover-paymentagainst Lessee'sfuture payments. If Lessee'spayments duringsuchYearwere lessthan Lessee'sShare, Lesseeshallpay toLessor theamount ofthe deficiency within10 days aŌerdelivery byLessor toLesseeof saidstatement. Lessor andLessee shallforthwith adjustbetween thembycash paymentany balancedetermined toexistwith respectto that porƟonof thelast ComparisonYearfor whichLessee is responsibleas to OperaƟng ExpenseIncreases,notwithstanding thatthe Leaseterm mayhaveterminated beforethe endofsuch ComparisonYear. (g) OperaƟng Expensesshall notinclude thecostsof replacementfor equipmentorcapital componentssuch astheroof, foundaƟons,exterior wallsor a CommonArea capitalimprovement, suchasthe parkinglot paving,elevators, fencesthathave auseful lifefor accounƟng purposesof 5yearsor more. (h) OperaƟngExpenses shallnot includeanyexpenses paidby anytenantdirectly tothird parƟes,or astowhich Lessoris otherwisereimbursedby any thirdparty,othertenant, orbyinsurance proceeds.
4.3 Payment. Lessee shallcause paymentofRent tobe receivedbyLessor inlawful moneyofthe UnitedStates onor beforetheday onwhich itisdue, without offset or deducƟon (exceptas specifically permiƩedin thisLease). Allmonetary amountsshall beroundedto thenearest wholedollar. Inthe eventthat any invoiceprepared byLessor isinaccuratesuch inaccuracyshall not consƟtute awaiverand Lesseeshall beobligatedto paythe amountsetforth inthis Lease. Rentfor anyperiod duringthe termhereofwhich isfor lessthan onefullcalendar monthshall beproratedbased uponthe actualnumberof daysof saidmonth. Paymentof Rentshall bemade toLessorat itsaddress statedherein ortosuch otherpersons orplaceas Lessormay from Ɵmeto Ɵmedesignate in wriƟng. Acceptanceof a paymentwhich isless thantheamount thendue shallnot beawaiver ofLessor's rightstothe balanceof suchRent,regardless ofLessor's endorsementof anycheck so staƟng. In theeventthat anycheck, draŌ,or otherinstrumentof paymentgiven byLesseeto Lessoris dishonoredforany reason,Lessee agreesto paytoLessor thesum of$25 in addiƟonto anyLate Chargeand Lessor,atits opƟon,may requireallfuture Rentbe paidbycashier's check. Paymentswill beapplied first toaccrued latecharges and aƩorney's fees,secondto accruedinterest, thento BaseRentand CommonArea OperaƟngExpenses,and anyremaining amounttoany other outstandingcharges orcosts.
5. SecurityDeposit. Lesseeshall depositwith Lessorupon execuƟon hereofthe SecurityDeposit assecurityfor Lessee'sfaithful performanceofits obligaƟons underthis Lease. IfLesseefails topay Rent,or otherwiseDefaultsunder thisLease, Lessormayuse, applyor retainallor any porƟon ofsaid SecurityDepositfor the paymentof anyamount alreadydueLessor,forRents whichwill beduein thefuture, and/orto reimburseor compensateLessorfor anyliability,expense,loss or damagewhich Lessormay sufferorincur byreason thereof. IfLessoruses orapplies allorany porƟonof theSecurityDeposit, Lesseeshall within10 days aŌer wriƩenrequest therefordeposit monieswithLessor sufficientto restoresaid SecurityDepositto thefull amountrequiredby thisLease. If theBaseRent increases 212
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page5of18
duringthe termof thisLease,Lessee shall,upon wriƩenrequest fromLessor,deposit addiƟonalmonies withLessorso thatthe totalamountof theSecurity Deposit shallat all Ɵmes bearthesame proporƟonto theincreased BaseRentas the iniƟal SecurityDepositbore tothe iniƟalBaseRent. Should theAgreed Usebeamended toaccommodate amaterial changeinthe businessof Lesseeor toaccommodatea sublesseeor assignee,Lessorshall havethe righttoincrease theSecurity Deposit tothe extentnecessary, inLessor'sreasonable judgment,to accountfor anyincreasedwear andtear thatthePremises may suffer asaresult thereof. Ifa changein controlof Lesseeoccurs duringthisLease andfollowing suchchange the financial condiƟon ofLessee is,inLessor's reasonablejudgment, significantlyreduced,Lessee shalldeposit such addiƟonal monieswithLessor asshall be sufficient tocausethe SecurityDeposit tobeat acommercially reasonablelevelbased onsuch changein financial condiƟon. Lessor shallnotbe requiredto keepthe SecurityDepositseparate fromits generalaccounts. Within60 90days aŌerthe expiraƟon or terminaƟonof thisLease, Lessorshallreturn that porƟon ofthe SecurityDepositnot usedor appliedbyLessor. Lessor shallupon wriƩen requestprovide Lesseewith an accounƟng showinghow that porƟonof theSecurity Depositthat wasnotreturned wasapplied. Nopart ofthe SecurityDepositshall beconsidered tobe heldin trust,to bearinterest ortobe prepaymentfor anymonies tobepaid byLessee underthisLease. THE SECURITYDEPOSITSHALL NOTBE USEDBY LESSEEINLIEU OF PAYMENTOF THELAST MONTH'SRENT.
6. Use.
6.1 Use. Lessee shalluse andoccupythe Premisesonly fortheAgreed Use,or anyotherlegal usewhich isreasonably comparablethereto,and forno other purpose. Lesseeshall notuseor permitthe useof thePremisesin amanner thatisunlawful, createsdamage, wasteora nuisance,or thatdisturbs occupantsofor causesdamage toneighboring premisesor properƟes. Other thanguide, signalandseeing eyedogs, Lesseeshallnot keepor allowinthe Premisesany pets,animals, birds, fish, or repƟles. Lessorshall notunreasonably withholdor delayitsconsent toany wriƩenrequestfor a modificaƟon oftheAgreed Use,so longas thesamewill notimpair thestructural integrityofthe improvementsof theBuilding, willnotadversely affectthe mechanical,electrical,HVAC,andother systemsofthe Building, and/orwill not affect theexteriorappearance ofthe Building. IfLessorelects towithhold consent,Lessorshall within7 days aŌersuch requestgive wriƩen noƟficaƟonof same,which noƟceshallinclude an explanaƟon ofLessor's objecƟonstothe changein theAgreedUse.
6.2 Hazardous Substances.
(a) Reportable UsesRequire Consent. The term"Hazardous Substance"as usedinthis Leaseshall meananyproduct, substance,or wastewhose presence,use, manufacture,disposal, transportaƟon,orrelease, eitherby itselfor incombinaƟonwith othermaterials expectedtobe onthe Premises,iseither: (i) potenƟallyinjurious tothe publichealth,safety orwelfare, theenvironment orthePremises, (ii)regulated ormonitoredby anygovernmental authority,or(iii) abasis for potenƟal liabilityof Lessortoany governmentalagency orthird partyunderany applicablestatute orcommonlaw theory. HazardousSubstancesshall include,but notbe limitedto, hydrocarbons,petroleum,gasoline, and/orcrude oilor anyproducts,byproducts or fracƟons thereof. Lessee shallnot engageinany acƟvityin oron thePremises which consƟtutes aReportableUse ofHazardous Substanceswithout theexpressprior wriƩenconsent ofLessorand Ɵmelycompliance (atLessee's expense)with allApplicable Requirements. "Reportable Use"shall mean(i) the installaƟonor useof anyaboveor belowground storagetank,(ii) the generaƟon, possession,storage,use, transportaƟon, ordisposalof aHazardous Substancethat requiresapermit from,or withrespectto whicha report, noƟce, registraƟon or businessplan isrequired tobe filed with,any governmentalauthority,and/or(iii)the presenceat thePremisesof aHazardous Substancewithrespect towhich any ApplicableRequirements requiresthat a noƟcebe givento personsentering oroccupyingthe Premisesor neighboring properƟes. Notwithstandingthe foregoing, Lesseemay useany ordinaryandcustomary materialsreasonably requiredto beusedin thenormal courseofthe AgreedUse suchasordinary officesupplies (copier toner,liquid paper,glue, etc.)andcommon householdcleaning materials,so longassuch useis incompliancewith allApplicable Requirements,isnot aReportable Use,and doesnot exposethePremises orneighboring propertyto anymeaningfulrisk of contaminaƟon ordamageor exposeLessor toanyliability therefor. In addiƟon,Lessor may condiƟon itsconsentto anyReportable Useupon receivingsuch addiƟonal assurancesas Lessorreasonablydeems necessaryto protectitself,the public,the Premisesand/or theenvironmentagainst damage, contaminaƟon, injuryand/or liability,including,but notlimited to,the installaƟon (andremoval onor beforeLease expiraƟonor terminaƟon)of protecƟve modificaƟons(such asconcrete encasements)and/orincreasing theSecurity Deposit. (b) Dutyto InformLessor. IfLessee knows,or hasreasonablecause tobelieve, thata HazardousSubstancehas cometo belocatedin, on,under or aboutthe Premises,other thanaspreviously consentedto byLessor,Lesseeshallimmediately give wriƩen noƟceofsuch factto Lessor,andprovide Lessorwith a copyof anyreport, noƟce,claimor other documentaƟon whichit hasconcerningthe presenceof suchHazardousSubstance. (c) Lessee RemediaƟon. Lessee shallnotcause orpermit anyHazardous Substancetobe spilledor releasedin,on, under,or aboutthePremises (includingthrough theplumbing orsanitarysewer system)and shallpromptly,atLessee'sexpense, complywith allApplicableRequirements andtake all invesƟgatory and/orremedial acƟonreasonably recommended,whetheror notformally orderedor required,forthe cleanupof any contaminaƟonof,andfor themaintenance, securityand/or monitoringof thePremisesor neighboring properƟes, thatwas causedormaterially contributedto byLessee,or pertainingto orinvolvingany HazardousSubstance broughtonto thePremisesduring theterm ofthis Lease,byor forLessee, oranythird party. (d) Lessee IndemnificaƟon. Lessee shallindemnify,defend andhold Lessor,itsagents, employees,lenders andground lessor,ifany,harmlessfrom and againstany andall lossofrents and/ordamages, liabiliƟes,judgments, claims,expenses,penalƟes, and aƩorneys' andconsultants'fees arisingout oforinvolving any HazardousSubstance broughtonto thePremisesby orfor Lessee,or anythirdparty (provided,however,thatLesseeshall haveno liabilityunderthis Leasewith respectto underground migraƟon ofanyHazardous Substanceunder thePremises fromareasoutside ofthe Projectnotcaused orcontributed tobyLessee). Lessee's obligaƟonsshall include,but notbelimited to,the effectsof any contaminaƟonor injuryto person,propertyor theenvironment createdor suffered byLessee, and thecost of invesƟgaƟon, removal, remediaƟon, restoraƟon and/orabatement, andshall survivethe expiraƟon or terminaƟon ofthisLease. No terminaƟon, cancellaƟonor releaseagreement enteredintoby Lessorand Lesseeshall releaseLesseefrom itsobligaƟons underthisLease withrespect toHazardousSubstances, unless specifically soagreed byLessorin wriƟngat the Ɵme ofsuchagreement. (e) Lessor IndemnificaƟon. Except asotherwise providedin paragraph8.7,Lessor andits successorsandassigns shallindemnify, defend,reimburseand holdLessee, itsemployees andlenders,harmless fromand againstany andallenvironmental damages,including thecostof remediaƟon,which resultfrom HazardousSubstances whichexisted onthePremises priorto Lessee'soccupancy orwhichare causedby thegrossnegligence orwillful misconductofLessor,its agentsor employees. Lessor's obligaƟons,as andwhen requiredby theApplicableRequirements, shallinclude, butnotbe limitedto,thecostof invesƟgaƟon, removal, remediaƟon, restoraƟonand/or abatement,andshall survivethe expiraƟonor terminaƟonofthis Lease. (f) InvesƟgaƟons and RemediaƟons. Lessorshall retaintheresponsibility andpay forany invesƟgaƟons or remediaƟon measuresrequired by governmental enƟƟes having jurisdicƟon withrespectto theexistence ofHazardous Substancesonthe Premisesprior toLessee'soccupancy, unlesssuch remediaƟon measureis requiredas aresultof Lessee'suse (including "AlteraƟons", as definedin paragraph7.3(a) below)ofthe Premises,in whicheventLessee shallbe responsiblefor suchpayment. Lesseeshall cooperatefully inany such acƟviƟesat therequest ofLessor,including allowingLessor andLessor'sagents tohave reasonableaccess tothe Premisesatreasonable Ɵmesin orderto carryoutLessor's invesƟgaƟveand remedial responsibiliƟes. (g) Lessor T erminaƟonOpƟon. If aHazardousSubstance CondiƟon(see Paragraph9.1(e))occurs duringthe termofthis Lease,unless Lesseeis legally responsibletherefor(inwhich caseLesseeshall makethe invesƟgaƟonand remediaƟonthereofrequired bythe ApplicableRequirementsand thisLease shall conƟnue infull forceand effect,butsubject toLessor's rightsunder Paragraph6.2(d)and Paragraph13), Lessormay,at Lessor's opƟon, either(i) invesƟgate andremediate such HazardousSubstance CondiƟon,if required,assoon asreasonably possibleat Lessor'sexpense,in whichevent thisLeaseshall conƟnuein fullforceand effect,or (ii)if the esƟmated costto remediatesuch condiƟon exceeds12 Ɵmesthe thenmonthlyBase Rentor $100,000,whicheveris greater,give wriƩen noƟceto Lessee,within 213
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page6of18
30days aŌerreceipt byLessorof knowledgeof theoccurrence ofsuchHazardous Substance CondiƟon, ofLessor'sdesire toterminate thisLeaseas ofthe date60 daysfollowing thedate ofsuch noƟce. In theevent Lessorelectsto givea terminaƟon noƟce,Lessee may,within 10days thereaŌer ,give wriƩen noƟceto Lessorof Lessee'scommitment topay theamountby whichthe costof the remediaƟonof suchHazardous Substance CondiƟonexceeds anamount equalto12 Ɵmesthe then monthlyBase Rentor $100,000,whicheveris greater. Lesseeshall provideLessorwith saidfunds or saƟsfactoryassurance thereofwithin 30daysfollowing such commitment. Insuch event,thisLease shall conƟnue infull forceand effect, andLessor shallproceedto makesuch remediaƟonassoon asreasonably possible aŌer therequired fundsare available. If Lesseedoes notgive such noƟceand providethe requiredfundsor assurancethereof withinthe Ɵme provided,this Leaseshall terminateas ofthe date specifiedin Lessor's noƟce of terminaƟon.
6.3 Lessee's Compliance with ApplicableRequirements. Exceptas otherwiseprovided inthisLease, Lesseeshall, atLessee'ssole expense,fully,diligentlyand ina Ɵmelymanner,materiallycomplywith allApplicable Requirements,the requirementsofany applicable fire insuranceunderwriteror raƟngbureau, andthe recommendaƟonsof Lessor'sengineers and/orconsultantswhich relatein anymanner tothePremises, withoutregard towhethersaid ApplicableRequirements are nowin effector become effecƟve aŌer theStart Date. Lesseeshall,within 10days aŌerreceiptof Lessor's wriƩen request,provideLessor withcopies ofall permits andother documents,and other informaƟonevidencing Lessee'scompliance withany ApplicableRequirements specified byLessor,andshallimmediately upon receipt, noƟfy Lessorin wriƟng(withcopies ofany documentsinvolved) ofanythreatened oractual claim, noƟce, citaƟon, warning,complaint orreportpertaining to orinvolving thefailure ofLesseeor thePremises tocomply withanyApplicable Requirements. Likewise,Lesseeshall immediatelygive wriƩen noƟceto Lessorof: (i) anywater damageto thePremisesand anysuspected seepage,pooling, dampnessorother condiƟonconducive tothe producƟon ofmold; or(ii)any musƟnessor otherodors thatmight indicatethepresence ofmold inthe Premises.
6.4 InspecƟon; Compliance. Lessorand Lessor's"Lender"(as definedin Paragraph30)and consultantsauthorized byLessorshall havethe rightto enterinto Premisesat any Ɵme, inthecase ofan emergency,and otherwiseatreasonable Ɵmes, aŌer reasonable noƟce,for thepurpose of inspecƟngand/or tesƟngthe condiƟonof thePremises and/orforverifying complianceby Lesseewith thisLease. Thecost ofanysuch inspecƟonsshall bepaidby Lessor,unless a violaƟon of ApplicableRequirements, ora HazardousSubstance CondiƟon (seeParagraph9.1(e))is foundtoexist orbe imminent,orthe inspecƟonis requestedorordered bya governmentalauthority. In suchcase,Lessee shallupon requestreimburse Lessorforthe costof such inspecƟon,so longas such inspecƟonis reasonablyrelated to the violaƟon or contaminaƟon. In addiƟon, Lesseeshall providecopies ofallrelevant materialsafety datasheets(MSDS) toLessor within10days ofthe receiptof wriƩenrequest therefor. Lesseeacknowledges that anyfailure onits parttoallow such inspecƟons or tesƟngwill exposeLessor torisksand potenƟallycause Lessor toincur costsnot contemplatedbythis Lease,the extentof whichwillbe extremely difficult toascertain. Accordingly,should theLesseefail toallow such inspecƟons and/or tesƟng ina Ɵmelyfashionthe BaseRentshallbe automaƟcallyincreased,without anyrequirement for noƟceto Lessee,by anamountequal to10% ofthe then exisƟng BaseRent or$100,whichever isgreater forthe remaindertothe Lease. The ParƟesagree thatsuch increaseinBase Rentrepresents fairand reasonable compensaƟonfor the addiƟonal risk/coststhatLessor willincur byreason ofLessee'sfailure toallow such inspecƟonand/or tesƟng. Suchincreasein BaseRentshall inno event consƟtute awaiverof Lessee'sDefault orBreach withrespectto suchfailure norpreventthe exerciseof anyofthe otherrights andremedies granted hereunder.
7. Maintenance;Repairs; UƟlity InstallaƟons;TradeFixturesand AlteraƟons.
7.1 Lessee's ObligaƟons. NotwithstandingLessor's obligaƟontokeep thePremises ingood condiƟon andrepair,Lesseeshallbe responsiblefor paymentof thecost thereofto Lessoras addiƟonal rentfor that porƟon ofthecost ofany maintenanceandrepair ofthe Premises,orany equipment(wherever located)that servesonly Lesseeor thePremises,to theextent suchcost is aƩributableto abuseor misuse. In addiƟon,Lessee ratherthanthe Lessorshall beresponsible forthe costof painƟng,repairing orreplacingwall coverings,and torepair orreplaceany similarimprovements withinthePremises. Lessor may,atits opƟon,upon reasonable noƟce, electto haveLesseeperform any parƟcular suchmaintenance orrepairsthe costof whichisotherwise Lessee'sresponsibility hereunder."
7.2 Lessor's ObligaƟons. Subjectto theprovisionsof Paragraphs2.2 (CondiƟon),2.3(Compliance), 4.2 (OperaƟng Expenses),6(Use), 7.1(Lessee's ObligaƟons),9 (Damageor DestrucƟon)and14 (CondemnaƟon), Lessor,subjectto reimbursementpursuantto Paragraph4.2, shallkeepin goodorder, condiƟonand repairthe foundaƟons,exterior walls,structural condiƟon ofinterior bearingwalls, exteriorroof, fire sprinklersystem, firealarmand/or smoke detecƟon systems, fire hydrants,and theCommon Areas.
7.3 UƟlity InstallaƟons;TradeFixtures; AlteraƟons.
(a) DefiniƟons. The term"UƟlity InstallaƟons" refersto all floor andwindowcoverings, airlines, vacuumlines,power panels,electrical distribuƟon, securityand fire protecƟon systems, communicaƟoncabling, lighƟng fixtures, HVACequipment, andplumbingin oron thePremises. Theterm "TradeFixtures"shall meanLessee's machineryand equipmentthatcan beremoved withoutdoing materialdamageto thePremises. Theterm "AlteraƟons"shall meanany modificaƟon ofthe improvements,other than UƟlity InstallaƟons orTradeFixtures,whether by addiƟonor deleƟon. "LesseeOwned AlteraƟons and/or UƟlity InstallaƟons"are definedas AlteraƟonsand/or UƟlity InstallaƟonsmade byLessee thatare notyetowned byLessor pursuanttoParagraph7.4(a). (b) Consent. Lesseeshall notmakeany AlteraƟonsor UƟlity InstallaƟonsto thePremises withoutLessor's prior wriƩenconsent. Lessee may,however, makenon-structural AlteraƟonsor UƟlity InstallaƟonsto theinterior ofthe Premises(excludingthe roof)without suchconsentbut upon noƟce toLessor,as longas theyare notvisible fromtheoutside, donot involvepuncturing, relocaƟngorremoving theroof, ceilings, floorsor any exisƟng walls,willnot affectthe electrical, plumbing,HVAC, and/orlife safetysystems,do nottrigger therequirement for addiƟonal modificaƟons and/orimprovements tothePremises resulƟngfrom ApplicableRequirements, suchas compliancewithTitle 24,and the cumulaƟve costthereofduring thisLease asextendeddoes notexceed$25,000 $2000.
Notwithstandingthe foregoing,Lessee shallnotmake orpermit anyroof penetraƟonsand/orinstall anythingon theroofwithout theprior wriƩenapprovalof Lessor.
Lessormay,asa precondiƟonto granƟng suchapproval, requireLessee to uƟlizea contractorchosen and/orapprovedby Lessor. Any AlteraƟonsor UƟlity InstallaƟonsthat Lesseeshall desiretomake andwhich requirethe consentofthe Lessorshall bepresentedto Lessorin wriƩenformwith detailedplans. Consent shallbe deemed condiƟoned uponLessee's: (i)acquiring allapplicable governmentalpermits,(ii) furnishing Lessor withcopiesof boththe permitsandthe plansand specificaƟonsprior tocommencement ofthework, and(iii) compliancewith all condiƟonsof saidpermits andotherApplicable Requirementsin apromptand expediƟousmanner. Any AlteraƟonsor UƟlity InstallaƟonsshall beperformed inaworkmanlike mannerwith goodand sufficient materials. Lesseeshallpromptly upon compleƟon furnishLessor withas-builtplans and specificaƟons. For workwhichcosts anamount inexcessof onemonth's BaseRent,Lessor may condiƟon its consentupon Lesseeproviding alienand compleƟonbond inan amountequalto 150%of the esƟmatedcost ofsuch AlteraƟonor UƟlity InstallaƟonand/or upon Lessee's posƟng an addiƟonal SecurityDepositwith Lessor. (c) Liens;Bonds. Lessee shallpay,when due,all claimsfor laborormaterials furnishedor allegedtohave beenfurnished toorfor Lesseeat orfor useon thePremises, whichclaims areormay besecured byany mechanic'sormaterialmen's lienagainst thePremisesor anyinterest therein. Lessee shallgive Lessornot lessthan 10days noƟcepriorto thecommencement ofany workin,on orabout thePremises,and Lessorshall havetheright topost noƟcesof non-responsibility. If Lesseeshall contestthe validityofany suchlien, claimor demand,thenLessee shall,at itssoleexpense defendand protectitself,Lessor andthe Premisesagainst the sameand shallpay and saƟsfyany suchadverse judgmentthat mayberendered thereonbefore theenforcementthereof. If Lessorshallrequire, Lesseeshall furnish asurety bondin anamountequal to150% ofthe amountofsuch contestedlien, claimordemand, indemnifyingLessor againstliabilityfor thesame. If Lessorelects to parƟcipate inany such acƟon,Lessee shallpay Lessor's aƩorneys' feesandcosts. 214
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page7of18
7.4 Ownership; Removal;Surrender; and RestoraƟon.
(a) Ownership. Subject toLessor'sright torequire removalor electownershipas hereinaŌerprovided, all AlteraƟonsand UƟlity InstallaƟons madeby Lesseeshall bethe propertyofLessee, butconsidered apart ofthePremises. Lessor may,atany Ɵme,elect in wriƟngto bethe ownerof allorany specifiedpart of theLessee Owned AlteraƟons and UƟlity InstallaƟons. Unless otherwiseinstructed perparagraph7.4(b) hereof,all LesseeOwned AlteraƟons and UƟlity InstallaƟons shall,at the expiraƟon or terminaƟonof thisLease, becomethe propertyofLessor andbe surrenderedbyLessee withthe Premises. (b) Removal. Bydelivery toLesseeof wriƩen noƟce fromLessor notearlierthan 90and notlaterthan 30days priortothe endof theterm ofthisLease, notlaterthan180dayspriortotheendofthetermofthisLease. Lessormayrequire thatany orallLessee Owned AlteraƟons or UƟlity InstallaƟonsbe removedby the expiraƟonor terminaƟonof thisLease. Lessormay requirethe removalatany Ɵmeof allorany partof anyLessee Owned AlteraƟons or UƟlity InstallaƟonsmade withouttherequired consent.
(c) Surrender; RestoraƟon. Lessee shallsurrenderthe Premisesby the ExpiraƟon Dateorany earlier terminaƟon date,withall ofthe improvements, partsand surfacesthereof cleanandfree ofdebris, andin good operaƟngorder, condiƟonand stateofrepair,ordinarywear andtearexcepted. "Ordinary wearand tear"shall notinclude anydamageor deterioraƟonthat wouldhave beenpreventedby goodmaintenance pracƟce. Notwithstanding theforegoing andtheprovisions ofParagraph7.1(a),if theLesseeoccupies thePremises for12 monthsorless, thenLessee shallsurrenderthe Premisesin thesame condiƟon asdelivered toLessee onthe StartDate withNOallowance forordinary wearand tear. Lessee shallrepair anydamageoccasioned bythe installaƟon,maintenanceor removalof Trade Fixtures,Lessee owned AlteraƟons and/or UƟlity InstallaƟons, furnishings,and equipmentas wellasthe removalof anystoragetank installedby orforLessee. Lessee shallalso removefrom thePremisesany andall HazardousSubstances broughtontothe Premisesby orforLessee, orany thirdparty(except HazardousSubstances whichwere depositedvia underground migraƟonfrom areasoutside ofthe Premises)tothe levelspecified inApplicableRequirements. TradeFixturesshallremain theproperty ofLessee andshallbe removedby Lessee. Anypersonalproperty ofLessee notremovedon orbefore the ExpiraƟonDate orany earlier terminaƟon date shallbe deemedto havebeenabandoned byLessee andmay bedisposedof orretained byLessoras Lessormay desire. The failureby Lesseeto Ɵmelyvacatethe Premisespursuant tothis Paragraph7.4(c)without theexpress wriƩenconsent ofLessorshall consƟtutea holdoverunderthe provisionsof Paragraph26below.
8. Insurance;Indemnity.
8.1 Insurance Premiums. Thecost ofthepremiums forthe insurancepoliciesmaintained byLessor pursuanttoparagraph 8are includedas OperaƟng Expenses(see paragraph4.2 (c)(iv)). Said costsshall includeincreases inthepremiums resulƟngfrom addiƟonalcoveragerelated torequirements oftheholder ofa mortgageor deedof trustcoveringthe Premises,Building and/orProject, increased valuaƟonof thePremises, Buildingand/orProject, and/ora generalpremiumrate increase. Saidcosts shallnot,however,includeany premiumincreases resulƟngfromthe natureof theoccupancyof anyother tenantofthe Building. Ifthe Project wasnot insuredfor the enƟretyof theBase Year,then thebasepremium shallbe thelowestannual premiumreasonably obtainableforthe requiredinsurance asof theStart Date,assuming themostnominal usepossible ofthe Buildingand/orProject. In noevent,however,shallLessee beresponsiblefor any porƟon ofthe premiumcost aƩributableto liabilityinsurancecoverage inexcess of$2,000,000 procuredunderParagraph8.2(b).
8.2 Liability Insurance.
(a) Carried byLessee. Lesseeshall obtainand keepin forceaCommercial GeneralLiability policyofinsurance protecƟngLessee andLessoras an addiƟonalinsured againstclaims forbodilyinjury,personalinjury andproperty damagebasedupon orarising outofthe ownership,use, occupancyormaintenance of thePremises andall areasappurtenantthereto. Such insuranceshall beonan occurrencebasis providingsinglelimit coveragein anamountnot lessthan $1,000,000 peroccurrence withan annualaggregateof notless than$2,000,000. Lesseeshall addLessor asan addiƟonal insuredby meansofan endorsementat leastas broad asthe InsuranceService OrganizaƟon's "AddiƟonalInsured-Managers orLessors ofPremises" Endorsementandcoverage shallalso beextendedto includedamage causedby heat,smoke orfumesfrom a hosƟle fire. Thepolicyshall notcontain anyintra-insuredexclusions asbetween insuredpersonsor organizaƟons,but shall includecoverage forliability assumedunderthis Leaseas an"insured contract"forthe performanceof Lessee'sindemnity obligaƟons underthis Lease. The limitsof saidinsurance shallnot, however,limitthe liabilityof Lesseenor relieveLesseeof any obligaƟon hereunder. Lessee shallprovide anendorsementon itsliability policy(ies)which providesthat itsinsuranceshall beprimary toand notcontributorywith anysimilar insurancecarriedby Lessor,whose insuranceshallbe considered excessinsurance only.
(b) Carriedby Lessor. Lessorshallmaintain liabilityinsurance asdescribedin Paragraph8.2(a), in addiƟon to,andnot inlieu of,theinsurance requiredto bemaintained byLessee. Lesseeshall notbe namedas an addiƟonalinsured therein.
8.3 Property Insurance- Building,Improvements andRentalValue. (a) Building andImprovements. Lessorshall obtainand keepin forceapolicy orpolicies ofinsurancein thename ofLessor,with losspayable toLessor, anyground-lessor,andto anyLenderinsuring lossor damageto theBuildingand/or Project. Theamountof suchinsurance shallbeequal tothe fullinsurable replacementcost ofthe Buildingand/orProject, asthe sameshall existfrom Ɵme to Ɵme, ortheamount requiredby anyLender,but inno eventmore thanthe commerciallyreasonable andavailable insurablevaluethereof. Lessee Owned AlteraƟons and UƟlity InstallaƟons, TradeFixtures, andLessee'spersonal propertyshall beinsured byLessee notbyLessor. If thecoverage isavailableand commerciallyappropriate, suchpolicyor policiesshall insureagainstall risksof directphysical loss ordamage (exceptthe perilsof flood and/orearthquake unlessrequired byaLender), includingcoverage fordebrisremoval andthe enforcementofany Applicable Requirementsrequiring theupgrading, demoliƟon, reconstrucƟonor replacementof any porƟon ofthePremises asthe resultofa coveredloss. Saidpolicy orpolicies shallalso containan agreed valuaƟonprovision inlieu ofany coinsuranceclause,waiver ofsubrogaƟon, and inflaƟonguard protecƟoncausing anincreasein the annualproperty insurancecoverage amountbya factorof notless thantheadjusted U.S.Department ofLaborConsumer PriceIndex forAllUrban Consumersfor the citynearest towhere thePremisesare located. Ifsuch insurancecoveragehas a deducƟble clause,the deducƟble amountshall notexceed$5,000 peroccurrence. (b) RentalValue. Lessor shallalsoobtain andkeep inforcea policyor policiesin thenameof Lessorwith losspayableto Lessorand anyLender,insuring theloss ofthe fullRentfor oneyear withan extendedperiodof indemnityfor an addiƟonal180 days("Rental Valueinsurance"). Saidinsurance shallcontain an agreed valuaƟon provisionin lieuofany coinsuranceclause, andthe amountofcoverage shallbe adjustedannuallyto reflectthe projectedRentotherwise payableby Lessee,for thenext 12monthperiod.
(c) AdjacentPremises. Lessee shallpayfor anyincrease inthe premiumsforthe propertyinsurance oftheBuilding andfor theCommonAreas orother buildingsin theProject ifsaidincrease iscaused byLessee's acts,omissions,use oroccupancy ofthePremises. (d) Lessee'sImprovements. Since Lessoristhe InsuringParty,Lessorshallnot berequired toinsure LesseeOwned AlteraƟons and UƟlity InstallaƟons unlessthe itemin quesƟonhasbecome theproperty ofLessor undertheterms ofthis Lease.
8.4 Lessee's Property;Business InterrupƟonInsurance; Worker's CompensaƟon Insurance. (a) Property Damage. Lesseeshallobtain andmaintain insurancecoverage onallof Lessee'spersonal property,TradeFixtures, andLessee Owned AlteraƟonsand UƟlity InstallaƟons. Suchinsurance shallbe fullreplacement costcoveragewith a deducƟble ofnotto exceed$1,000 peroccurrence. Theproceeds fromany suchinsurance shallbeused byLessee forthe replacementofpersonal property,TradeFixturesandLessee Owned AlteraƟons and UƟlity InstallaƟons. (b) Worker's CompensaƟon Insurance. Lesseeshallobtain andmaintain Worker's CompensaƟonInsurance insuch amountas mayberequired by ApplicableRequirements. Such policyshallinclude a'Waiver of SubrogaƟon' endorsement. Lessee shallprovide Lessorwitha copyof suchendorsementalong with the cerƟficate ofinsurance orcopyof thepolicy requiredby paragraph8.5. 215
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page8of18
(c) Business InterrupƟon. Lessee shallobtainand maintainloss ofincome andextraexpense insurancein amountsaswill reimburseLessee fordirector indirectloss ofearnings aƩributabletoall perilscommonly insuredagainst byprudentlessees inthe businessofLessee or aƩributable to prevenƟonof accessto the Premisesas aresult ofsuchperils.
(d) No RepresentaƟon ofAdequate Coverage. Lessor makesno representaƟonthatthe limitsor formsof coverageofinsurance specifiedherein are adequateto coverLessee's property,business operaƟons or obligaƟons underthis Lease.
8.5 Insurance Policies. Insurancerequired hereinshallbe bycompanies maintainingduringthe policyterm a"GeneralPolicyholders RaƟng"of atleast A-,VII, asset forthin themostcurrent issueof "Best'sInsurance Guide",orsuch other raƟng asmaybe requiredby aLender. Lesseeshall notdo orpermitto bedone anythingwhich invalidatesthe requiredinsurancepolicies. Lessee shall,prior totheStart Date,deliver toLessor cerƟfied copiesof policiesofsuch insuranceor cerƟficateswith copiesof therequiredendorsements evidencingthe existenceand amountsofthe requiredinsurance. Nosuch policyshall becancelableor subject to modificaƟon except aŌer 10daysprior wriƩen noƟce toLessor. Lesseeshall, atleast 30daysprior tothe expiraƟonofsuch policies,furnish Lessorwith evidenceof renewalsor "insurancebinders" evidencingrenewalthereof, orLessor mayincrease hisliabilityinsurance coverageand chargethecost thereofto Lessee,which amountshall bepayable byLesseeto Lessorupon demand. Suchpoliciesshall befor atermof atleast oneyear,or thelength ofthe remainingtermof thisLease, whicheveris less. IfeitherParty shallfail toprocure andmaintainthe insurancerequired tobecarried byit, theotherParty may,but shallnot berequiredto,procure andmaintain thesame.
8.6 Waiver of SubrogaƟon. Without affecƟnganyother rightsor remedies,Lesseeand Lessoreach herebyreleaseand relievethe other,and waivetheir enƟre rightto recoverdamages againsttheother,forloss ofor damagetoits propertyarising outofor incidentto theperilsrequired tobe insuredagainst herein. The effectof suchreleases andwaiversis notlimited bythe amountofinsurance carriedor required,orby any deducƟbles applicablehereto. The ParƟes agreeto have their respecƟve propertydamage insurancecarrierswaive anyright to subrogaƟon thatsuchcompanies mayhave againstLessoror Lessee,as thecasemay be,so longas theinsurance isnotinvalidated thereby.
8.7 Indemnity. Except forLessor's grossnegligenceor willfulmisconduct, Lesseeshallindemnify,protect,defend andholdharmless thePremises, Lessorand itsagents, Lessor'smaster orgroundlessor,partnersand Lenders,from andagainstany andall claims,lossof rentsand/or damages,liens,judgments, penalƟes, aƩorneys'and consultants'fees, expensesand/or liabiliƟes arisingout of,involving, orinconnecƟon with,a Breachofthe Leaseby Lesseeand/orthe useand/or occupancyof thePremises and/orProjectby Lesseeand/or byLessee's employees,contractorsor invitees. Ifany acƟon orproceeding isbroughtagainst Lessorby reasonof anyof theforegoing maƩers, Lesseeshall upon noƟce defendthesame atLessee's expensebycounsel reasonably saƟsfactory toLessorand Lessorshall cooperatewith Lesseein suchdefense. Lessorneed nothave firstpaidany suchclaim inorderto bedefended or indemnified.
8.8 ExempƟon ofLessor andits AgentsfromLiability. Notwithstanding thenegligenceor breachof thisLeaseby Lessoror itsagents, neitherLessornor its agentsshall beliable underanycircumstances for:(i) injuryor damagetothe personor goods,wares,merchandise orother propertyofLessee, Lessee'semployees, contractors,invitees, customers,or anyotherperson inor aboutthe Premises,whethersuch damageor injuryiscaused byor resultsfrom fire, steam,electricity,gas, wateror rain,indoor airquality,the presenceof moldor fromthebreakage, leakage, obstrucƟon orotherdefects ofpipes, firesprinklers,wires, appliances,plumbing, HVACor lighƟng fixtures, orfromany othercause, whetherthe saidinjuryor damageresults from condiƟonsarising uponthe Premisesorupon other porƟons ofthe Building,or fromother sourcesorplaces, (ii)any damagesarising fromanyact orneglect ofanyother tenantof Lessororfrom thefailure ofLessor oritsagents to enforcethe provisionsof anyotherlease inthe Project,or (iii)injuryto Lessee'sbusiness orforany lossof incomeor profit therefrom. Instead,it isintendedthat Lessee'ssole recoursein theeventof suchdamages orinjury beto file aclaim ontheinsurance policy(ies)that Lesseeisrequired tomaintain pursuantto the provisionsof paragraph8.
8.9 Failure toProvide Insurance. Lesseeacknowledgesthat anyfailure onitspart toobtain ormaintainthe insurancerequired hereinwill exposeLessorto risksand potenƟallycause Lessortoincur costsnot contemplatedby thisLease,the extentof whichwillbe extremely difficult toascertain. Accordingly,for anymonth or porƟon thereofthat Lesseedoesnot maintainthe requiredinsurance and/ordoesnot provideLessor withtherequired bindersor cerƟficatesevidencingthe existenceof therequired insurance,theBase Rentshall be automaƟcally increased,withoutany requirementfor noƟcetoLessee, byan amountequalto 10%of the then exisƟng BaseRent or$100,whichever isgreater. The parƟesagreethat suchincrease inBaseRent representsfair andreasonable compensaƟon forthe addiƟonalrisk/costs thatLessor willincurby reasonof Lessee'sfailure tomaintainthe requiredinsurance. Suchincrease inBase Rentshallin noevent consƟtutea waiverof Lessee'sDefault orBreachwith respectto thefailure tomaintainsuch insurance,prevent theexerciseof anyof theotherrights andremedies granted hereunder,nor relieveLessee ofits obligaƟon tomaintain theinsurance specifiedinthis Lease.
9. Damageor DestrucƟon.
9.1 DefiniƟons.
(a) "Premises ParƟalDamage" shallmeandamage or destrucƟon tothe improvementsonthe Premises,other thanLesseeOwned AlteraƟonsand UƟlity InstallaƟons,which canreasonably berepairedin 3months orless fromthedate ofthe damageor destrucƟon, andthe costthereofdoes notexceed asum equalto6 month'sBase Rent. Lessorshall noƟfy Lesseein wriƟngwithin 30daysfrom thedate ofthedamage or destrucƟon astowhether ornot thedamage is ParƟalor Total. (b) "PremisesTotal DestrucƟon"shall meandamageor destrucƟonto theimprovementson thePremises, otherthan LesseeOwned AlteraƟons and UƟlity InstallaƟons andTradeFixtures,whichcannot reasonablybe repairedin 3monthsor lessfrom thedateof thedamage or destrucƟonand/or thecost thereof exceedsa sumequal to6month's BaseRent. Lessor shall noƟfyLessee in wriƟng within30days fromthe dateofthe damageor destrucƟonas towhetheror notthe damageis ParƟalor Total.
(c) "InsuredLoss" shallmean damageor destrucƟon toimprovements onthe Premises,otherthan LesseeOwned AlteraƟonsand UƟlity InstallaƟonsand TradeFixtures, whichwas causedbyan eventrequired tobe coveredbythe insurancedescribed inParagraph8.3(a), irrespecƟveof any deducƟbleamounts or coveragelimits involved.
(d) "ReplacementCost" shallmean thecostto repairor rebuildtheimprovements ownedby Lessorat the Ɵmeof theoccurrence totheir condiƟon exisƟngimmediately priorthereto, including demoliƟon,debris removaland upgradingrequired bythe operaƟon ofApplicable Requirements,andwithout deducƟon for depreciaƟon.
(e) "Hazardous Substance CondiƟon"shall meanthe occurrenceor discoveryofa condiƟoninvolving thepresenceof,ora contaminaƟonby,a HazardousSubstance, in,on, orunderthe Premiseswhich requires restoraƟon.
9.2 ParƟal Damage- InsuredLoss. Ifa Premises ParƟal Damagethatis anInsured Lossoccurs,then Lessorshall, atLessor's expense,repairsuch damage(but notLessee's TradeFixtures orLesseeOwned AlteraƟonsand UƟlity InstallaƟons) assoonas reasonablypossible andthisLease shall conƟnue infullforce and effect; provided,however,thatLessee shall,atLessor's elecƟon,make therepair ofanydamage ordestrucƟon thetotalcost torepair ofwhichis $5,000or less,and, insuch event,Lessor shallmake anyapplicableinsurance proceedsavailable toLessee onareasonable basisfor thatpurpose. Notwithstandingthe foregoing,ifthe required insurancewas notin forceorthe insuranceproceeds arenot sufficientto effect suchrepair,theInsuringParty shallpromptly contributetheshortage inproceeds as andwhen requiredto completesaidrepairs. In theevent, however,suchshortage wasdue tothefact that,by reasonofthe uniquenature ofthe improvements,full replacementcost insurancecoveragewasnotcommercially reasonableand available,Lessor shallhaveno obligaƟonto payforthe shortagein insuranceproceedsor tofully restorethe uniqueaspectsof thePremises unlessLessee providesLessorwith thefunds tocoversame, oradequate assurancethereof,within 10days 216
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page9of18
followingreceipt of wriƩen noƟceofsuch shortageand requesttherefor. IfLessor receivessaid fundsoradequate assurancethereof withinsaid10 dayperiod, the partyresponsible formaking therepairsshall completethem assoon asreasonablypossible andthis Leaseshallremain infull forceand effect. If suchfunds or assuranceare notreceived, Lessormaynevertheless electby wriƩen noƟce toLesseewithin 10days thereaŌerto: (i)make such restoraƟonand repairas is commerciallyreasonable withLessor payinganyshortage inproceeds, inwhich casethisLease shallremain infullforce and effect, or(ii)have thisLease terminate30 days thereaŌer. Lessee shallnotbe enƟtledto reimbursementof anyfundscontributed byLessee torepairany suchdamage or destrucƟon. Premises ParƟal Damage dueto floodor earthquakeshallbe subjectto Paragraph9.3, notwithstandingthatthere maybe someinsurancecoverage, butthe netproceedsof anysuch insurance shallbe madeavailable fortherepairs ifmade byeither Party.
9.3 ParƟal Damage- UninsuredLoss. Ifa Premises ParƟal Damagethatis notan InsuredLossoccurs,unlesscaused bya negligentorwillful actof Lessee(in whichevent Lesseeshall maketherepairs atLessee's expense),Lessor mayeither: (i)repair suchdamageas soonas reasonablypossibleat Lessor'sexpense (subject toreimbursement pursuantto Paragraph4.2),in whichevent thisLease shall conƟnuein fullforce and effect,or (ii)terminate thisLeaseby giving wriƩen noƟceto Lesseewithin 30days aŌerreceiptby Lessorof knowledgeof theoccurrenceof suchdamage. SuchterminaƟon shallbe effecƟve60days followingthe dateof such noƟce. Inthe eventLessorelects toterminate thisLease, Lesseeshallhave theright within10days aŌerreceipt ofthe terminaƟon noƟceto give wriƩen noƟceto Lessorof Lessee'scommitment topayfor therepair ofsuch damagewithoutreimbursement fromLessor. Lesseeshall provideLessor withsaidfunds or saƟsfactory assurancethereof within30 days aŌermaking suchcommitment. In sucheventthis Leaseshall conƟnueinfull forceand effect,andLessor shallproceed tomake suchrepairs assoon asreasonablypossible aŌerthe requiredfunds areavailable. IfLessee doesnotmake therequired commitment,thisLease shallterminate asof thedate specifiedin the terminaƟon noƟce.
9.4 Total DestrucƟon. Notwithstandingany otherprovisionhereof,ifa PremisesTotalDestrucƟon occurs,this Leaseshallterminate 60days followingsuch DestrucƟon. Ifthe damageor destrucƟon wascaused bythe grossnegligenceor willfulmisconduct ofLessee,Lessor shallhave therightto recoverLessor's damages fromLessee, exceptas providedinParagraph 8.6.
9.5 Damage NearEnd ofTerm. Ifat any Ɵme duringthelast 6months ofthisLease thereis damagefor whichthecost torepair exceedsonemonth's Base Rent,whether ornot anInsuredLoss, Lessormay terminatethis Lease effecƟve60 daysfollowing thedateof occurrenceof suchdamageby givinga wriƩen terminaƟon noƟce toLessee within30days aŌerthe dateof occurrenceofsuch damage. Notwithstandingtheforegoing, ifLessee atthat Ɵme hasan exercisable opƟonto extendthis Leaseorto purchasethe Premises,then Lesseemaypreserve thisLease by,(a)exercising such opƟon and(b)providing Lessorwith anyshortage ininsurance proceeds(or adequateassurancethereof) neededto makethe repairsonor beforethe earlierof(i) thedate whichis10 days aŌer Lessee'sreceipt of Lessor's wriƩen noƟce purporƟng toterminatethis Lease,or (ii)the daypriorto thedate uponwhichsuch opƟonexpires. IfLessee dulyexercises such opƟon during suchperiod andprovides Lessorwithfunds (oradequate assurancethereof) tocoverany shortagein insuranceproceeds,Lessor shall,at Lessor'scommercially reasonableexpense, repairsuch damageassoon asreasonably possibleand thisLeaseshall conƟnuein fullforceand effect. IfLesseefails toexercise such opƟon and providesuch fundsor assuranceduringsuch period,then thisLease shallterminateon thedate specifiedinthe terminaƟon noƟce andLessee's opƟon shallbe exƟnguished.
9.6 Abatement ofRent; Lessee'sRemedies.
(a) Abatement. In theeventof Premises ParƟal Damageor PremisesTotalDestrucƟon ora HazardousSubstance CondiƟon forwhich Lesseeisnot responsibleunder thisLease, theRentpayable byLessee forthe periodrequiredfor therepair,remediaƟonor restoraƟon ofsuch damageshallbe abatedin proporƟonto thedegree towhichLessee's useof thePremises isimpaired,but notto exceedtheproceeds receivedfrom theRentalValueinsurance. Allother obligaƟonsof Lesseehereunder shallbeperformed byLessee, andLessor shallhaveno liabilityfor anysuchdamage, destrucƟon, remediaƟon, repairor restoraƟon exceptas providedherein.
(b) Remedies. IfLessor isobligatedto repairor restorethePremises anddoes notcommence, ina substanƟal andmeaningful way,suchrepair or restoraƟonwithin 90days aŌersuch obligaƟon shallaccrue, Lesseemay,atany Ɵme priorto thecommencementof suchrepair or restoraƟon,give wriƩen noƟce to Lessorand toany Lendersofwhich Lesseehas actual noƟce, ofLessee's elecƟon toterminate thisLeaseon adate notlessthan 60days followingthe givingofsuch noƟce. IfLessee givessuch noƟce andsuch repairor restoraƟonisnot commencedwithin 30days thereaŌer ,thisLease shallterminateas ofthe date specified insaid noƟce. Ifthe repairor restoraƟoniscommenced withinsuch 30days,this Leaseshall conƟnueinfull forceand effect. "Commence" shallmean eitherthe uncondiƟonal authorizaƟon ofthe preparaƟonofthe requiredplans, orthe beginningofthe actualwork onthePremises, whichever first occurs.
9.7 TerminaƟon;AdvancePayments. Upon terminaƟonofthis Leasepursuant toParagraph6.2(g) orParagraph9,anequitable adjustmentshall bemade concerningadvance BaseRent andanyother advancepayments madeby LesseetoLessor. Lessor shall,in addiƟon, returnto Lesseesomuch ofLessee's Security Depositas hasnot been,oris notthen requiredto be,usedby Lessor.
10. Real PropertyTaxes.
10.1 DefiniƟons. Asused herein,the term"RealProperty Taxes"shall includeanyform ofassessment; realestate,general, special,ordinary orextraordinary,or rentallevy ortax (otherthaninheritance, personalincome orestatetaxes);improvementbond; and/orlicense feeimposedupon orlevied againstanylegal or equitableinterest ofLessor intheProject, Lessor'sright toother incometherefrom,and/or Lessor'sbusiness ofleasing, by anyauthority havingthedirect orindirect powerto taxand wherethefunds aregenerated withreferencetotheProject address. "RealPropertyTaxes" shallalso includeanytax, fee,levy,assessmentor charge,or anyincrease therein:(i)imposed byreason ofevents occurringduringthe termof thisLease,including butnot limitedto,a changein theownership ofthe Project,(ii) achange intheimprovements thereon,and/or (iii)levied orassessed on machineryor equipmentprovidedby Lessorto Lesseepursuantto thisLease.
10.2 Payment ofTaxes. Exceptas otherwiseprovidedin Paragraph10.3, Lessorshallpay theReal PropertyTaxesapplicable tothe Project,and saidpayments shallbe includedin the calculaƟonof OperaƟngExpenses inaccordance withtheprovisions ofParagraph 4.2.
10.3 AddiƟonal Improvements. OperaƟng Expensesshall notincludeReal PropertyTaxes specifiedinthe taxassessor's recordsandwork sheetsas being causedby addiƟonalimprovements placeduponthe Projectby otherlessees orbyLessor forthe exclusiveenjoymentof suchother lessees. Notwithstanding Paragraph10.2 hereof,Lessee shall,however,pay toLessor atthe Ɵme OperaƟngExpenses arepayable underParagraph4.2, the enƟrety ofanyincrease inReal PropertyTaxesifassessed solelybyreason of AlteraƟons, TradeFixtures or UƟlity InstallaƟons placedupon thePremisesby Lesseeor atLessee'srequest orby reason ofany alteraƟonsor improvementstothe Premisesmade byLessor subsequenttothe execuƟonof thisLeaseby the ParƟes.
10.4 Joint Assessment. If theBuilding isnotseparately assessed,Real PropertyTaxesallocated tothe Buildingshallbe anequitable proporƟonof theReal PropertyTaxesforall oftheland andimprovements includedwithin thetaxparcel assessed,such proporƟontobe determinedby Lessorfromthe respecƟve valuaƟonsassigned inthe assessor'sworksheets orsuch other informaƟon asmaybe reasonablyavailable. Lessor'sreasonable determinaƟonthereof,ingoodfaith, shallbe conclusive.
10.5 Personal PropertyTaxes. Lesseeshall paypriorto delinquency all taxesassessedagainst andlevied uponLesseeOwned AlteraƟonsand UƟlity InstallaƟons,TradeFixtures,furnishings, equipmentandall personalproperty ofLessee containedinthe Premises. Whenpossible,Lessee shallcause itsLessee Owned AlteraƟons and UƟlity InstallaƟons,TradeFixtures, furnishings,equipment andall otherpersonalproperty tobe assessedandbilled separatelyfrom thereal propertyof Lessor. Ifanyof Lessee'ssaid propertyshall beassessedwith Lessor'sreal property,Lesseeshall payLessor thetaxes aƩributable toLessee's property within10 days aŌer receiptofa wriƩenstatement seƫngforth thetaxesapplicable toLessee's property. 217
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page10of18
11. UƟliƟes andServices.
11.1 Services ProvidedbyLessor. Lessor shallprovide heaƟng, venƟlaƟon,air condiƟoning, reasonableamounts ofelectricity fornormal lighƟng and office machines,water forreasonable andnormaldrinking andlavatory usein connecƟonwithan office,and replacementlightbulbs and/or fluorescent tubesandballasts forstandard overhead fixtures. Lessorshall alsoprovide janitorialservices tothePremises andCommon Areas5 Ɵmes perweek, excludingBuildingHolidays, or pursuantto the aƩached janitorialschedule,if any. Lessorshall not,however,be requiredto providejanitorialservices tokitchens orstorageareas includedwithin thePremises.
11.2 Services ExclusivetoLessee. Notwithstanding theprovisionsof paragraph11.1, Lesseeshallpay forall water,gas,light, power,telephone andother uƟliƟesand servicesspecially orexclusivelysupplied and/ormetered exclusivelyto thePremisesor toLessee, togetherwithany taxesthereon. Notwithstandingthe provisionsof Paragraph4.2(vi), ifaservice isdeleted byParagraph1.13andsuch serviceis notseparatelymetered tothe Premises,Lesseeshall payat Lessor's opƟon, eitherLessee's Shareor areasonable proporƟon tobe determinedby Lessorofall chargesfor suchjointlymetered service.
11.3 Hours ofService. Saidservices and uƟliƟesshall beprovided during Ɵmesset forthin Paragraph1.12. UƟliƟesand servicesrequired atother Ɵmes shall besubject toadvance requestandreimbursement byLessee toLessor ofthecost thereof.
11.4 Excess UsagebyLessee. Lessee shallnotmake connecƟonto the uƟliƟesexcept byor through exisƟngoutlets andshall notinstall orusemachinery or equipmentin orabout thePremisesthat usesexcess water, lighƟng orpower,or sufferor permitanyact thatcauses extraburdenupon the uƟliƟes orservices, includingbut notlimited tosecurityand trashservices, overstandard officeusagefor theProject. Lessorshall requireLessee toreimburseLessor forany excess expensesor coststhat mayariseout ofa breachof thissubparagraphby Lessee. Lessormay,in itssole discreƟon,installat Lessee'sexpense supplementalequipment and/orseparate meteringapplicable toLessee'sexcess usageor loading.
11.5 InterrupƟons. Thereshall beno abatementofrent andLessor shallnotbe liablein anyrespectwhatsoever forthe inadequacy,stoppage, interrupƟonor disconƟnuanceof any uƟlity orservicedue toriot, strike,labor dispute,breakdown,accident, repairor othercausebeyond Lessor'sreasonable controlorin cooperaƟonwith governmentalrequest or direcƟons.
11.6 Within fiŌeendaysof Lessor's wriƩen request,Lesseeagrees todeliver toLessorsuch informaƟon,documents and/or authorizaƟonas Lessorneeds in orderfor Lessorto complywithnew or exisƟng ApplicableRequirements relaƟngtocommercial buildingenergy usage, raƟngs, and/orthe reporƟngthereof.
12. Assignment and Subleƫng.
12.1 Lessor's ConsentRequired.
(a) Lessee shallnot voluntarilyorby operaƟonof lawassign, transfer,mortgageor encumber(collecƟvely, "assignorassignment") orsublet allorany partof Lessee'sinterest inthisLease orin thePremises withoutLessor'sprior wriƩenconsent. (b) UnlessLessee isa corporaƟonandits stockis publiclytradedon a naƟonal stockexchange, achangein thecontrol ofLesseeshall consƟtutean assignmentrequiring consent. Thetransfer,on a cumulaƟve basis,of 25%ormore ofthe voƟngcontrolof Lesseeshall consƟtuteachange incontrol forthis purpose. (c) Theinvolvement ofLessee oritsassets inany transacƟon,or seriesof transacƟons (byway ofmerger,sale, acquisiƟon, financing, transfer,leveraged buyoutor otherwise), whether ornota formalassignment or hypothecaƟon ofthisLease orLessee's assetsoccurs,which resultsor willresultin a reducƟon ofthe NetWorthofLessee byanamount greaterthan 25%of suchNetWorth asit wasrepresentedat the Ɵme ofthe execuƟon ofthis Leaseor atthe Ɵme ofthe most recentassignment towhich Lessorhasconsented, oras itexists immediatelypriorto said transacƟon or transacƟons consƟtuƟng such reducƟon, whicheverwasor is greater,shall beconsidered anassignmentof thisLease towhich Lessormaywithhold itsconsent. "NetWorth ofLessee" shallmeanthe networth ofLessee (excludingany guarantors)established undergenerallyaccepted accounƟngprinciples. (d) Anassignment or subleƫng withoutconsentshall, atLessor's opƟon,bea Defaultcurable aŌer noƟce perParagraph13.1(d), ora non-curableBreach withoutthe necessityof any noƟceand graceperiod. If Lessorelectsto treatsuch unapprovedassignmentor subleƫngas anon-curableBreach, Lessormay either:
(i)terminate thisLease, or(ii)upon 30days wriƩen noƟce, increasethemonthly BaseRent to110%of theBase Rentthenin effect. Further,in theeventof such Breachand rentaladjustment, (i)thepurchase priceof any opƟon topurchasethe Premisesheld byLesseeshall besubject tosimilaradjustment to110% ofthe price previouslyin effect,and (ii)all fixed andnon-fixed rentaladjustments scheduledduringthe remainderof theLeaseterm shallbe increasedto110% ofthe scheduled adjustedrent.
(e) Lessee's remedyforany breachof Paragraph12.1 byLessorshall belimited tocompensatorydamages and/or injuncƟve relief. (f) Lessor mayreasonablywithhold consentto aproposedassignment or subleƫng ifLesseeis inDefault atthe Ɵmeconsentis requested. (g) Notwithstanding theforegoing, allowinga deminimis porƟon ofthe Premises,i.e.20 squarefeet orless,to beused bya thirdpartyvendor in connecƟonwith the installaƟon ofavending machineor payphoneshall not consƟtutea subleƫng.
12.2 Termsand CondiƟonsApplicable toAssignment and Subleƫng. (a) Regardless ofLessor's consent,noassignment or subleƫng shall: (i)be effecƟvewithoutthe express wriƩen assumpƟon bysuch assigneeor sublesseeof the obligaƟons ofLesseeunder thisLease, (ii)release Lesseeofany obligaƟonshereunder,or(iii)alter theprimary liabilityofLessee forthe paymentof Rentor forthe performanceofany other obligaƟons tobe performedbyLessee. (b) Lessormay acceptRent orperformanceof Lessee's obligaƟons fromanyperson otherthan Lesseepending approvalordisapproval ofan assignment.
Neithera delayin theapprovalor disapprovalof suchassignment northeacceptance ofRent orperformanceshall consƟtutea waiverorestoppel ofLessor's rightto exerciseits remediesfor Lessee'sDefaultor Breach.
(c) Lessor'sconsent toany assignmentor subleƫng shallnot consƟtutea consenttoany subsequentassignment or subleƫng. (d) Inthe eventof anyDefaultor Breachby Lessee,Lessormay proceeddirectly againstLessee, anyGuarantorsor anyoneelse responsibleforthe performanceof Lessee's obligaƟons underthisLease, includingany assigneeor sublessee, without first exhausƟngLessor's remediesagainstany otherperson or enƟtyresponsible thereforto Lessor,orany securityheld byLessor. (e) Each requestforconsent toan assignmentor subleƫngshallbe in wriƟng, accompaniedbyinformaƟon relevantto Lessor's determinaƟonas tothe financialand operaƟonalresponsibility andappropriatenessof theproposed assigneeor sublessee,includingbut notlimited totheintended useand/or required modificaƟonof thePremises, ifany,together witha feeof $500as consideraƟon forLessor's consideringandprocessing saidrequest. Lesseeagrees toprovide Lessor withsuch otheror addiƟonal informaƟonand/or documentaƟonas maybe reasonablyrequested.(See alsoParagraph36) (f) Any assigneeof,or sublesseeunder,thisLeaseshall, byreason of accepƟngsuch assignment,entering intosuch sublease,orentering intopossession ofthe Premisesor any porƟonthereof,bedeemed tohave assumedandagreed toconform andcomplywith eachand everyterm,covenant, condiƟonand obligaƟon hereinto beobserved orperformedby Lesseeduring theterm ofsaidassignment orsublease, otherthansuch obligaƟonsas arecontraryto orinconsistent with provisionsof anassignment orsubleaseto whichLessor has specifically consentedtoin wriƟng. (g) Lessor's consentto anyassignment or subleƫngshall nottransfer totheassignee orsublessee any OpƟongranted tothe originalLessee bythisLease unlesssuch transferis specificallyconsentedto byLessor in wriƟng. (SeeParagraph39.2)
12.3 AddiƟonal Termsand CondiƟons Applicableto Subleƫng. The followingterms and condiƟonsshall applyto any subleƫngby Lesseeof allor anypartof 218
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page11of18
thePremises andshall bedeemedincluded inall subleasesunder thisLeasewhether ornot expresslyincorporatedtherein:
(a) Lessee herebyassigns andtransfersto Lessorall ofLessee's interestinall Rentpayable onanysublease, andLessor maycollectsuch Rentand apply sametoward Lessee's obligaƟons underthisLease; provided,however,that unƟl aBreachshall occurin theperformanceof Lessee's obligaƟons, Lesseemaycollect saidRent. In theeventthat theamount collectedby LessorexceedsLessee's thenoutstanding obligaƟonsanysuch excessshall berefundedto Lessee. Lessorshall not,by reasonof theforegoingor anyassignment ofsuch sublease,norby reasonof the collecƟonof Rent,be deemedliableto thesublessee forany failureofLessee toperform andcomply withanyof Lessee's obligaƟons tosuch sublessee. Lessee herebyirrevocably authorizesanddirects anysuch sublessee,uponreceipt ofa wriƩen noƟce fromLessor staƟngthata Breachexists inthe performanceofLessee's obligaƟonsunder thisLease,to payto LessorallRent dueand tobecome due underthe sublease. Sublesseeshallrely uponany such noƟce fromLessorand shallpay allRentsto Lessorwithout any obligaƟonor rightto inquireas towhether suchBreach exists,notwithstanding anyclaimfrom Lesseeto thecontrary. (b) Inthe eventof aBreachby Lessee,Lessor may,atits opƟon,require sublesseeto aƩorntoLessor,inwhich eventLessorshall undertakethe obligaƟonsof thesublessor undersuchsublease fromthe Ɵmeof theexerciseof said opƟon tothe expiraƟon ofsuch sublease;provided,however,Lessorshall notbe liablefor anyprepaid rentsorsecurity depositpaid bysuch sublesseetosuch sublessoror foranyprior Defaultsor Breachesofsuch sublessor. (c) Any maƩer requiringthe consentofthe sublessorunder asublease shallalsorequire theconsent ofLessor. (d) Nosublessee shallfurther assignorsublet allor anypartof thePremises withoutLessor's prior wriƩenconsent. (e) Lessor shalldelivera copyof any noƟce ofDefaultor Breachby Lesseetothe sublessee,who shallhavethe rightto curethe DefaultofLessee within thegrace period,if any, specifiedin such noƟce. The sublesseeshallhave aright ofreimbursementand offsetfrom andagainstLessee forany suchDefaults curedby thesublessee.
13. Default; Breach;Remedies.
13.1 Default; Breach. A "Default"is definedasa failureby theLesseeto complywith orperformany ofthe terms,covenants, condiƟonsorRules and RegulaƟonsunder thisLease. A"Breach" is defined asthe occurrenceofone ormore ofthefollowing Defaults,and thefailureof Lesseeto curesuch Defaultwithin anyapplicable graceperiod:
(a) The abandonmentof thePremises;the vacaƟngof thePremises priortothe expiraƟonor terminaƟonofthis Leasewithout providingacommercially reasonablelevel ofsecurity,orwherethe coverageof theproperty insurancedescribedin Paragraph8.3 isjeopardizedas aresult thereof,orwithout providing reasonableassurances tominimize potenƟalvandalism;or failureto deliverto Lessorexclusivepossession ofthe enƟrePremisesin accordanceherewith priortothe expiraƟonor terminaƟonof thisLease.
(b) Thefailure ofLessee tomakeany paymentof Rentorany SecurityDeposit requiredto bemadeby Lesseehereunder,whethertoLessor orto athird party,when due,to providereasonableevidence ofinsurance orsurety bond,orto fulfillany obligaƟonunderthis Leasewhich endangersorthreatens lifeor property,where suchfailure conƟnuesfora periodof 3business daysfollowing wriƩen noƟceto Lessee. THE ACCEPTANCEBY LESSOROFA PARTIALPAYMENTOF
RENTOR SECURITYDEPOSIT SHALLNOTCONSTITUTE AWAIVER OFANY OFLESSOR'SRIGHTS, INCLUDINGLESSOR'S RIGHTTORECOVER POSSESSIONOF THE PREMISES.
(c) Thefailure ofLessee toallowLessor and/orits agentsaccess tothePremises orthe commissionofwaste, actor acts consƟtuƟngpublic orprivate nuisance,and/or anillegal acƟvityonthe Premisesby Lessee,where such acƟons conƟnue fora periodof3 businessdays following wriƩen noƟce toLessee. In the eventthat Lesseecommits waste,anuisance oran illegal acƟvity asecond Ɵme then,the Lessormayelect totreat suchconductas anon-curable Breachrather thana Default.
(d) Thefailure byLessee toprovide(i) reasonable wriƩen evidenceofcompliance withApplicable Requirements,(ii) theservicecontracts, (iii)the rescissionof anunauthorized assignmentor subleƫng, (iv)an Estoppel CerƟficate or financialstatements, (v)a requested subordinaƟon,(vi) evidenceconcerning any guarantyand/or Guarantor,(vii) anydocumentrequested underParagraph 41,(viii) materialsafetydata sheets(MSDS), or(ix)any other documentaƟon or informaƟonwhich Lessormay reasonablyrequireof Lesseeunder theterms ofthisLease, whereany suchfailure conƟnues fora periodof10 daysfollowing wriƩen noƟceto Lessee.
(e) A DefaultbyLessee asto theterms, covenants, condiƟonsor provisionsof thisLease,or ofthe rulesadoptedunder Paragraph2.9 hereof,other than thosedescribed insubparagraphs 13.1(a),(b)or (c),above, wheresuch Default conƟnuesfor aperiod of30days aŌer wriƩen noƟce;provided,however,thatif the natureof Lessee'sDefault issuchthat morethan 30days arereasonablyrequired forits cure,thenit shallnot bedeemedto bea Breachif Lesseecommencessuch curewithin said30 dayperiodand thereaŌerdiligently prosecutessuch cureto compleƟon. (f) The occurrenceofany ofthe followingevents: (i)the makingofany generalarrangement orassignment forthe benefit ofcreditors; (ii)becominga "debtor"as definedin 11U.S.C.§ 101or anysuccessor statutethereto(unless, inthe caseofa peƟƟon filed againstLessee,the sameis dismissedwithin 60days);(iii) theappointment ofa trusteeorreceiver totakepossessionof substanƟallyallof Lessee'sassets locatedatthe Premisesor ofLessee'sinterest inthis Lease,where possessionis notrestored toLesseewithin 30days; or(iv) the aƩachment, execuƟon orother judicialseizureof substanƟallyall ofLessee'sassets locatedat the Premisesor ofLessee's interestinthis Lease,where suchseizure isnotdischarged within30 days;provided,however,inthe eventthatany provisionof this subparagraphis contraryto anyapplicablelaw,suchprovision shallbe ofnoforce or effect, andnot affect thevalidity oftheremaining provisions. (g) The discoverythat any financial statementofLessee orof anyGuarantorgiven toLessor wasmateriallyfalse. (h) Ifthe performanceofLessee's obligaƟonsunder thisLease isguaranteed: (i)the deathofa Guarantor,(ii) the terminaƟonof aGuarantor's liability withrespect tothis Leaseotherthan inaccordance withthe termsofsuch guaranty,(iii) aGuarantor'sbecoming insolventor thesubjectof abankruptcy filing,(iv) a Guarantor'srefusal tohonor theguaranty,or (v)a Guarantor'sbreach ofitsguaranty obligaƟonon an anƟcipatorybasis, andLessee's failure,within60 daysfollowing wriƩen noƟce ofany suchevent,to provide wriƩen alternaƟveassurance orsecurity,which, whencoupled withthethen exisƟngresources ofLessee,equals or exceedsthe combined financial resourcesofLessee andthe Guarantorsthat existedatthe Ɵmeof execuƟonofthis Lease.
13.2 Remedies. IfLessee failstoperform anyof its affirmaƟve duƟesor obligaƟons, within10 days aŌer wriƩen noƟce(or incaseof anemergency,without noƟce),Lessor may,at its opƟon,perform suchduty or obligaƟon onLessee'sbehalf,includingbut notlimitedto theobtaining ofreasonablyrequired bonds, insurancepolicies, orgovernmental licenses,permitsor approvals. Lesseeshall paytoLessor anamount equalto115% ofthe costsandexpenses incurredby Lessor insuch performanceupon receiptofan invoicetherefor. In theeventof aBreach, Lessormay,with orwithout further noƟceor demand,and without limiƟng Lessor inthe exerciseof anyrightor remedywhich Lessormay havebyreason ofsuch Breach:
(a) TerminateLessee'sright topossessionof thePremises byany lawfulmeans,in whichcase thisLeaseshall terminateand Lesseeshallimmediately surrenderpossession toLessor. Insuch eventLessor shallbe enƟtledtorecover fromLessee: (i)the unpaidRent whichhadbeen earnedat the Ɵme of terminaƟon; (ii)the worthat the Ɵmeof awardof theamount bywhichthe unpaidrent whichwouldhave beenearned aŌer terminaƟon unƟl the Ɵme ofaward exceedsthe amountof suchrental lossthatthe Lesseeproves couldhave beenreasonablyavoided; (iii)the worthatthe Ɵmeof awardofthe amountby whichthe unpaidrentfor thebalance ofthe term aŌerthe Ɵmeof awardexceedstheamountof suchrental lossthatthe Lesseeproves couldbereasonably avoided;and (iv)any otheramount necessaryto compensateLessor forallthe detrimentproximately causedby theLessee'sfailure toperform its obligaƟonsunder thisLease orwhichin theordinary courseof thingswould belikelyto resulttherefrom, includingbut notlimitedto thecost ofrecoveringpossession ofthe Premises,expensesof releƫng,including 219
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page12of18
necessary renovaƟon and alteraƟon ofthePremises, reasonable aƩorneys' fees,and that porƟonof anyleasing commissionpaidby Lessorin connecƟonwiththis Leaseapplicable tothe unexpiredtermof thisLease. The worthatthe Ɵmeof awardofthe amountreferredtoinprovision (iii)of theimmediately preceding sentenceshall becomputed by discounƟngsuch amountat thediscount rateofthe FederalReserve Bankofthe Districtwithin whichthePremises arelocated atthe Ɵmeof awardplus onepercent. Effortsby Lessorto miƟgatedamagescaused byLessee's Breachofthis Leaseshall notwaiveLessor's rightto recoverany damagesto whichLessor isotherwise enƟtled. If terminaƟonof thisLease isobtainedthrough theprovisional remedyofunlawful detainer,Lessor shallhavethe rightto recover insuch proceedingany unpaidRentand damagesas arerecoverable therein,orLessor mayreserve therightto recoverall oranypart thereofin aseparate suit. If a noƟceand graceperiod requiredunderParagraph13.1was notpreviously given,a noƟce topay rentorquit, orto performorquit givento Lesseeunder theunlawful detainerstatute shallalso consƟtutethe noƟce requiredby Paragraph13.1. Insuch case,the applicablegraceperiod requiredby Paragraph13.1and theunlawful detainerstatute shallrun concurrently,andthe failureof Lesseeto curetheDefault withinthe greaterofthe twosuch graceperiodsshall consƟtuteboth anunlawful detainerand aBreach ofthisLease enƟtlingLessor tothe remediesprovidedfor inthis Leaseand/orby saidstatute. (b) ConƟnuethe Leaseand Lessee'srightto possessionand recovertheRent asit becomesdue, inwhichevent Lesseemay subletorassign, subjectonly toreasonable limitaƟons. Actsofmaintenance, effortsto relet,and/or theappointmentof areceiver toprotectthe Lessor'sinterests, shallnot consƟtute a terminaƟonof theLessee's righttopossession.
(c) Pursueany otherremedy nowor hereaŌer availableunder thelaws orjudicialdecisions ofthe statewhereinthe Premisesare located. The expiraƟon or terminaƟon ofthis Leaseand/orthe terminaƟonof Lessee'sright topossessionshall notrelieve Lesseefromliability underany indemnityprovisionsof thisLease asto maƩersoccurring oraccruingduring theterm hereofor byreasonof Lessee'soccupancy ofthePremises.
13.3 Inducement Recapture. Any agreementfor freeorabated rentor othercharges,the costof tenantimprovementsfor Lesseepaid foror performedby Lessor,or forthe givingorpaying byLessor toor forLesseeof anycash orotherbonus, inducementor consideraƟonforLessee's enteringinto thisLease, allofwhich concessionsare hereinaŌerreferredtoas"Inducement Provisions,"shall bedeemed condiƟoneduponLessee's fulland faithfulperformanceof allof theterms, covenantsand condiƟonsof thisLease. UponBreach ofthis LeasebyLessee, anysuch InducementProvisionshall automaƟcallybe deemeddeletedfrom thisLease andof nofurther forceor effect, andany rent,other charge,bonus,inducement or consideraƟon theretoforeabated,given orpaid byLessorunder suchan InducementProvision shallbe immediatelydueand payableby Lesseeto Lessor,notwithstandingany subsequentcure ofsaidBreach byLessee. Theacceptance by Lessorof rentor thecureof theBreach which iniƟated the operaƟonof thisparagraph shallnotbe deemeda waiverbyLessor ofthe provisionsof thisparagraph unless specifically sostated in wriƟngby Lessorat the Ɵme ofsuchacceptance.
13.4 Late Charges. Lessee herebyacknowledges thatlatepayment byLessee ofRentwill causeLessor toincurcosts notcontemplated bythis Lease,theexact amountof whichwill beextremely difficult toascertain. Such costsinclude,but arenot limitedto,processing and accounƟng charges,andlate chargeswhich maybe imposedupon Lessorby anyLender. Accordingly,if anyRent shallnotbe receivedby Lessorwithin5 days aŌer suchamountshall bedue, then,without any requirementfor noƟceto Lessee,Lesseeshall immediatelypay toLessor aone-Ɵmelate chargeequal to10%of eachsuch overdueamountor $100,whichever is greater. The parƟes herebyagreethat suchlate chargerepresents afairand reasonable esƟmate ofthecosts Lessorwill incurbyreason ofsuch latepayment.
Acceptanceof suchlate chargebyLessor shallin noevent consƟtuteawaiver ofLessee's DefaultorBreach withrespect tosuchoverdue amount,nor preventthe exerciseof anyof theotherrights andremedies grantedhereunder. Inthe eventthat alatecharge ispayable hereunder,whetheror notcollected, for3 consecuƟve installmentsof BaseRent, thennotwithstandingany provisionof thisLease tothecontrary,BaseRent shall,atLessor's opƟon,become dueandpayable quarterlyin advance.
13.5 Interest. Anymonetary paymentdue Lessorhereunder,other thanlate charges,notreceived byLessor,whendueshall bearinterest fromthe 31stday aŌerit wasdue. Theinterest ("Interest")charged shallbe computedatthe rateof 10%perannum butshall notexceedthe maximumrate allowedby law. Interest is payablein addiƟonto the potenƟallate chargeprovided forin Paragraph13.4.
13.6 Breach byLessor.
(a) NoƟce ofBreach. Lessorshall notbe deemedin breachofthis Leaseunless Lessorfailswithin areasonable Ɵmetoperform an obligaƟon requiredto beperformed byLessor. Forpurposes ofthis Paragraph,a reasonable Ɵmeshall inno eventbeless than30 days aŌerreceipt byLessor,andany Lenderwhosename andaddress shallhave beenfurnishedto Lesseein wriƟngfor suchpurpose,of wriƩen noƟce specifyingwhereinsuch obligaƟonof Lessorhasnot beenperformed; provided,however,thatif thenatureof Lessor's obligaƟon issuch thatmorethan 30days arereasonablyrequired forits performance,thenLessor shallnot bein breachif performanceis commencedwithinsuch 30day periodand thereaŌerdiligentlypursued tocompleƟon. (b) Performanceby Lesseeon BehalfofLessor. In theeventthat neitherLessor norLender curessaidbreach within30 days aŌerreceipt ofsaid noƟce, orif havingcommenced saidcurethey donot diligentlypursue itto compleƟon, thenLessee mayelectto curesaid breachatLessee's expenseand offsetfrom Rent theactual andreasonable costtoperform suchcure, provided,however,thatsuch offset shallnot exceedanamount equalto thegreaterof onemonth's BaseRent or theSecurity Deposit,reserving Lessee'srightto seekreimbursement fromLessor foranysuch expensein excessofsuch offset. Lesseeshalldocument thecost ofsaid cureand supplysaid documentaƟontoLessor.
14. CondemnaƟon. If thePremisesor any porƟon thereofaretakenunderthe powerof eminentdomainor soldunder thethreatof theexercise ofsaidpower (collecƟvely "CondemnaƟon"), thisLease shallterminateas tothe parttaken asofthe datethe condemningauthoritytakes Ɵtleor possession,whichever first occurs.
Ifmore than10% oftherentable floorarea ofthe Premises,ormore than25% ofLessee'sReserved ParkingSpaces, ifany,are takenby CondemnaƟon,Lessee may,at Lessee's opƟon, tobe exercisedin wriƟng within10 days aŌer Lessorshallhave givenLessee wriƩen noƟceof suchtaking (orinthe absenceof such noƟce, within10 days aŌer thecondemning authorityshallhave takenpossession) terminatethis Leaseasof thedate thecondemningauthority takessuch possession. If Lesseedoes notterminate thisLease inaccordancewith theforegoing, thisLease shallremainin fullforce and effectas tothe porƟonofthe Premisesremaining, exceptthat the BaseRent shallbe reducedin proporƟon tothe reducƟonin uƟlityofthe Premisescaused bysuch CondemnaƟon. CondemnaƟon awardsand/orpayments shallbe theproperty ofLessor,whethersuchaward shallbe madeas compensaƟonfor diminuƟon invalue oftheleasehold, thevalue ofthepart taken,or forseverance damages;provided, however,that Lesseeshallbe enƟtledto any compensaƟon paidbythe condemnorfor Lessee's relocaƟonexpenses, lossof businessgoodwill and/orTradeFixtures,without regardtowhether ornot thisLease isterminatedpursuant tothe provisionsofthis Paragraph. All AlteraƟonsand UƟlity InstallaƟons madeto thePremises byLessee,for purposesof CondemnaƟononly,shallbeconsidered theproperty oftheLessee andLessee shallbe enƟtled toany andall compensaƟonwhich ispayable therefor. In theevent thatthis Leaseisnot terminatedby reasonofthe CondemnaƟon,Lessor shallrepairany damageto the Premisescaused bysuch CondemnaƟon.
15. Brokerage Fees.
15.1 AddiƟonalCommission. In addiƟontothe paymentsowed pursuantto Paragraph1.10above, Lessoragrees that: (a) ifLessee exercisesany OpƟon, (b)if Lesseeor anyone affiliated withLesseeacquires fromLessor anyrights tothePremises orother premisesownedby Lessorand locatedwithinthe Project,(c) ifLessee remainsin possessionof thePremises,with theconsent ofLessor, aŌerthe expiraƟon ofthis Lease,or(d) ifBase Rentisincreased, whetherby agreementor operaƟonof an escalaƟon clauseherein,then, Lessorshall payBrokersafeein accordancewith thefeeschedule ofthe Brokersin effect atthe Ɵmethe Leasewas executed. Theprovisions ofthisparagraph areintended tosupersede theprovisionsof anyearlier agreementtothe contrary. 220
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page13of18
15.2 AssumpƟon of ObligaƟons. Anybuyer ortransfereeof Lessor'sinterest inthisLease shallbe deemedtohave assumedLessor's obligaƟonhereunder.
Brokersshall bethird party beneficiariesof theprovisions ofParagraphs 1.10,15,22 and31. IfLessor failsto paytoBrokersanyamounts dueas andforbrokerage feespertaining tothis Leasewhendue, thensuch amountsshall accrueInterest. In addiƟon, ifLessorfails topay anyamountsto Lessee'sBroker whendue, Lessee's Brokermay send wriƩen noƟcetoLessor andLessee ofsuch failureandif Lessorfails topaysuch amountswithin 10days aŌer said noƟce, Lesseeshall paysaid moniesto itsBrokerand offsetsuch amountsagainst Rent. In addiƟon,Lessee's Brokershall bedeemedto bea thirdparty beneficiary ofany commissionagreement enteredinto byand/or betweenLessorand Lessor'sBrokerforthe limitedpurposeof collecƟngany brokeragefeeowed.
15.3 RepresentaƟonsand IndemniƟesof Broker RelaƟonships. Lesseeand Lessoreach representandwarrant tothe otherthatit hashad nodealingswith any person, firm, broker,agent or finder(other thanthe Brokersand Agents,ifany) in connecƟon withthisLease, andthat nooneother thansaid namedBrokersand Agentsis enƟtledto anycommissionor finder'sfeein connecƟon herewith. Lessee andLessor doeachhereby agreeto indemnify,protect,defend andhold theother harmlessfrom andagainst liabilityfor compensaƟon orcharges whichmay beclaimedby anysuch unnamedbroker,finder orother similarpartyby reasonof any dealingsor acƟonsof theindemnifyingParty,includingany costs,expenses, aƩorneys'feesreasonably incurredwith respectthereto.
16. Estoppel CerƟficates.
(a) Each Party(as "RespondingParty")shall within10 days aŌer wriƩen noƟcefrom theother Party(the"RequesƟng Party")execute, acknowledgeand deliverto the RequesƟng Partyastatement in wriƟng inform similartothe thenmost current"Estoppel CerƟficate" formpublished byAIRCRE, plussuch addiƟonal informaƟon, confirmaƟon and/orstatements asmaybe reasonablyrequested bythe RequesƟngParty. (b) Ifthe RespondingParty shallfailto executeor delivertheEstoppel CerƟficatewithin such10 dayperiod,the RequesƟngParty mayexecutean Estoppel CerƟficate staƟngthat: (i)theLease isin fullforce and effectwithout modificaƟonexcept asmaybe representedby the RequesƟngParty,(ii)there areno uncureddefaults inthe RequesƟngParty'sperformance, and(iii) ifLessor isthe RequesƟng Party,not morethanone month'srent hasbeenpaid inadvance.
ProspecƟvepurchasers andencumbrancers mayrelyupon the RequesƟng Party'sEstoppel CerƟficate,andthe RespondingParty shallbeestopped fromdenying the truthof thefacts containedinsaid CerƟficate. In addiƟon, Lesseeacknowledgesthat anyfailure onitspart toprovide suchanEstoppel CerƟficatewill exposeLessor torisks and potenƟally causeLessorto incurcosts notcontemplated bythisLease, theextent ofwhichwill beextremely difficulttoascertain. Accordingly,shouldthe Lesseefail toexecute and/ordelivera requestedEstoppel CerƟficatein a Ɵmelyfashion themonthly BaseRentshall be automaƟcally increased,withoutany requirementfor noƟceto Lessee,byan amountequal to10% ofthethen exisƟngBase Rentor$100, whicheveris greaterforremainder ofthe Lease. The ParƟes agreethat suchincrease inBaseRent representsfair andreasonable compensaƟonforthe addiƟonalrisk/costs thatLessorwill incurby reasonofLessee's failureto providethe Estoppel CerƟficate. Suchincrease inBase Rentshall innoevent consƟtutea waiverofLessee's Defaultor Breachwithrespect tothe failureto provide theEstoppel CerƟficatenor preventtheexercise ofany ofthe otherrightsand remediesgranted hereunder. (c) IfLessor desiresto finance, refinance,or sellthe Premises,or anypartthereof,Lesseeand allGuarantorsshall within10 days aŌer wriƩen noƟce fromLessor deliverto any potenƟallender orpurchaser designatedby Lessorsuch financial statementsas maybereasonably requiredby suchlenderor purchaser, includingbut notlimited toLessee's financial statementsfor thepast 3years. Allsuch financialstatementsshall bereceived byLessorand suchlender orpurchaser in confidenceand shallbe usedonlyfor thepurposes hereinset forth.
17. DefiniƟon ofLessor. Theterm "Lessor"as usedhereinshall meanthe owneror ownersatthe Ɵmein quesƟonofthe fee Ɵtle tothePremises, or,if thisis a sublease,of theLessee's interestinthe priorlease. In theeventof atransfer ofLessor's Ɵtle orinterest inthePremises orthis Lease,Lessor shalldeliverto the transfereeor assignee(in cashorby credit)any unusedSecurity Depositheldby Lessor. Uponsuchtransfer orassignment anddeliveryof theSecurity Deposit,as aforesaid,the priorLessor shallberelieved ofall liabilitywith respecttothe obligaƟonsand/or covenantsunderthis Lease thereaŌer tobeperformed bythe Lessor.
Subjectto theforegoing, the obligaƟonsand/or covenantsin thisLease tobeperformed bythe Lessorshallbe bindingonly upontheLessor ashereinabove defined.
18. Severability. The invalidityofany provisionof thisLease,as determinedby acourt ofcompetent jurisdicƟon, shallin noway affect thevalidity ofanyother provisionhereof.
19. Days. Unless otherwise specificallyindicated tothe contrary,theword "days"as usedin thisLeaseshall meanand refertocalendar days.
20. LimitaƟon onLiability. The obligaƟons ofLessor underthisLease shallnot consƟtutepersonal obligaƟonsofLessor,orits partners,members,directors, officers orshareholders, andLessee shalllookto theProject, andto nootherassets ofLessor,forthe saƟsfacƟon ofany liabilityofLessor withrespect tothis Lease,andshall notseek recourseagainst Lessor'spartners,members, directors, officers orshareholders, oranyof theirpersonal assetsforsuch saƟsfacƟon.
21. Time ofEssence. Timeis ofthe essencewithrespect tothe performanceof all obligaƟonsto beperformed orobservedby the ParƟes underthisLease.
22. No Prioror OtherAgreements;Broker Disclaimer. ThisLeasecontains allagreements betweenthe ParƟeswithrespect toany maƩer menƟonedherein, andno otherprior orcontemporaneous agreementorunderstanding shallbe effecƟve. LessorandLessee eachrepresents andwarrantsto theBrokersthatithas made,and isrelying solelyupon, itsown invesƟgaƟon asto thenature, quality,characterand financialresponsibility oftheother Partyto thisLeaseand asto theuse, nature, qualityand characterof thePremises. Brokershave noresponsibility withrespectthereto orwith respecttoany defaultor breachhereofby eitherParty.
23. NoƟces.
23.1 NoƟce Requirements. All noƟcesrequired or permiƩedby thisLease orapplicablelaw shallbe in wriƟngand maybe deliveredin person(byhand orby courier)or maybe sentbyregular, cerƟfiedor registeredmail orU.S.PostalServiceExpress Mail,withpostage prepaid,or byfacsimiletransmission, orby email,and shallbe deemed sufficiently givenifserved ina manner specified inthisParagraph23. Theaddressesnoted adjacentto aParty'ssignature onthis Leaseshall bethat Party'saddress fordelivery ormailingof noƟces. EitherParty mayby wriƩen noƟceto theotherspecify a different addressfor noƟce, exceptthat uponLessee's takingpossession ofthe Premises,thePremises shall consƟtute Lessee'saddress for noƟce. Acopy ofall noƟces toLessor shallbeconcurrently transmiƩedto such partyor parƟesat suchaddressesas Lessormay from Ɵme to Ɵme hereaŌer designatein wriƟng.
23.2 Date of NoƟce. Any noƟce sentbyregistered or cerƟfied mail,returnreceipt requested,shall bedeemedgiven onthe dateof deliveryshownon the receiptcard, orif nodeliverydate isshown, thepostmark thereon. If sentby regularmailthe noƟceshall bedeemedgiven 72hours aŌerthe sameisaddressed as requiredherein andmailed withpostageprepaid. NoƟces deliveredby UnitedStatesExpress Mailor overnightcourierthat guaranteesnext daydeliveryshall be deemedgiven 24hours aŌerdeliveryof thesame tothe PostalServiceor courier. NoƟcesdeliveredby hand,or transmiƩedbyfacsimile transmissionor byemail shallbe deemeddelivered uponactualreceipt. If noƟceis receivedona Saturday,Sunday orlegalholiday,itshall bedeemedreceived onthe nextbusiness day.
23.3 OpƟons. Notwithstandingthe foregoing,in ordertoexercise any OpƟons (seeparagraph39), the NoƟce mustbesent by CerƟfied Mail(return receipt requested),Express Mail(signature required),courier(signature required)or someother methodologythatprovides areceipt establishingthedate the noƟce was receivedby theLessor.
24. Waivers.
221
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page14of18
(a) No waiverby Lessorofthe Defaultor Breachof anyterm,covenant or condiƟon hereofbyLessee, shallbe deemedawaiver ofany otherterm, covenantor condiƟonhereof,orofany subsequentDefault orBreach byLesseeof thesame orofany otherterm, covenantor condiƟon hereof. Lessor'sconsent to, orapproval of,any actshallnot bedeemed torender unnecessarytheobtaining ofLessor's consentto,or approvalof,anysubsequentor similaract byLessee, orbe construedas thebasis ofanestoppel toenforce theprovision orprovisionsof thisLease requiringsuchconsent. (b) Theacceptance ofRent byLessorshall notbe awaiverof anyDefault orBreach byLessee. Anypayment byLesseemay beaccepted byLessoron accountof moniesor damagesdueLessor,notwithstandingany qualifyingstatements or condiƟonsmade byLessee in connecƟontherewith, whichsuch statements and/or condiƟons shallbe ofnoforce or effect whatsoeverunless specificallyagreedto in wriƟng byLessorat orbefore the Ɵmeof depositof suchpayment. (c) THEPARTIESAGREETHATTHETERMSOF THISLEASE SHALLGOVERN WITHREGARDTOALLMATTERS RELATEDTHERETOAND HEREBYWAIVE THE PROVISIONSOF ANYPRESENT ORFUTURESTATUTETOTHE EXTENTTHATSUCHSTATUTEIS INCONSISTENTWITH THISLEASE.
25. Disclosures Regardingthe Natureofa RealEstate Agency RelaƟonship. (a) When enteringinto adiscussionwith areal estateagent regardingareal estate transacƟon, aLessoror Lesseeshould fromtheoutset understand whattype ofagency relaƟonshipor representaƟon ithas withthe agentoragents inthe transacƟon. Lessor andLessee acknowledgebeingadvised bythe Brokersin this transacƟon, asfollows:
(i) Lessor'sAgent. A Lessor'sagent undera lisƟng agreementwith theLessoracts asthe agentforthe Lessoronly. A Lessor'sagentor subagent hasthe following affirmaƟve obligaƟons: TotheLessor: A fiduciarydutyof utmostcare, integrity,honesty,and loyaltyin dealingswiththe Lessor. Tothe Lesseeand theLessor: (a) Diligentexerciseof reasonableskills andcare inperformanceof theagent's duƟes. (b) Aduty ofhonestand fairdealing andgood faith. (c) Aduty to discloseall factsknown totheagent materially affecƟng thevalue ordesirabilityof theproperty thatarenot knownto,orwithinthe diligent aƩenƟon and observaƟonof,the ParƟes. Anagent isnot obligatedto revealtoeither Partyany confidenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe affirmaƟve duƟes setforth above.
(ii) Lessee'sAgent. Anagent canagree toactas agentfor theLesseeonly. In these situaƟons,the agentis notthe Lessor'sagent,even ifby agreementthe agentmay receive compensaƟonfor servicesrendered, eitherin fullorin partfrom theLessor. Anagent acƟngonlyfor aLessee hasthe following affirmaƟve obligaƟons. TotheLessee: A fiduciary dutyof utmostcare,integrity,honesty,and loyaltyindealings withthe Lessee. TotheLessee andthe Lessor: (a) Diligentexercise ofreasonable skillsandcare inperformance ofthe agent's duƟes. (b)A dutyofhonest andfair dealingandgood faith. (c)A dutytodisclose allfacts knownto theagent materially affecƟngthe valueor desirabilityof thepropertythat arenot knownto,or withinthe diligent aƩenƟonand observaƟonof,the ParƟes.
Anagent isnot obligatedtoreveal toeither Partyany confidenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe affirmaƟve duƟesset forth above.
(iii) Agent RepresenƟngBothLessor andLessee. Areal estateagent, either acƟng directlyorthrough oneor moreassociatelicensees, canlegally be theagent ofboth theLessorand theLessee ina transacƟon,butonly withthe knowledgeandconsent ofboth theLessorand theLessee. In adualagency situaƟon, theagent hasthe following affirmaƟve obligaƟons toboth theLessor andtheLessee: (a)A fiduciarydutyof utmostcare, integrity,honestyand loyaltyin thedealings witheither Lessoror theLessee. (b)Other duƟesto theLessorand theLessee asstatedabove insubparagraphs (i)or(ii). In represenƟngboth LessorandLessee, the agentmay not,without theexpresspermission ofthe respecƟveParty,disclosetothe otherParty confidenƟal informaƟon,including, butnot limitedto,facts relaƟng toeither Lessee'sor Lessor's financial posiƟon, moƟvaƟons,bargaining posiƟon,or otherpersonal informaƟon thatmay impactrent,including Lessor'swillingness to accepta rentless thanthe lisƟng rentor Lessee'swillingness topayrent greaterthan therentoffered. The above duƟesof theagent ina realestate transacƟon do notrelieve aLessor orLesseefrom theresponsibility toprotect theirowninterests. Lessor andLesseeshould carefullyread allagreementsto assurethat they adequatelyexpress theirunderstanding ofthe transacƟon. A realestateagentisa person qualified toadviseabout realestate. Iflegal ortax adviceis desired,consult acompetent professional. BothLessorand Lesseeshould stronglyconsider obtainingtaxadvice froma competentprofessionalbecause thefederal andstatetax consequencesof a transacƟon canbecomplex andsubject tochange. (b) Brokershave noresponsibility withrespectto anydefault orbreachhereof byeither Party. The ParƟesagree thatno lawsuitorother legal proceedinginvolving anybreach ofduty,error oromission relaƟngto thisLeasemay bebrought againstBrokermore thanone year aŌerthe StartDate andthat the liability(including courtcosts and aƩorneys'fees), ofany Brokerwith respecttoany suchlawsuit and/orlegalproceeding shallnot exceedthefee receivedby such Brokerpursuant tothis Lease;provided,however,thatthe foregoing limitaƟon oneachBroker'sliabilityshall notbeapplicable toany grossnegligenceor willful misconductof suchBroker.
(c) Lessorand Lesseeagree to idenƟfyto Brokersas "ConfidenƟal"any communicaƟonor informaƟon givenBrokersthatisconsidered bysuch Partyto be confidenƟal.
26. No RightToHoldover. Lessee hasno righttoretain possessionof thePremises oranypart thereofbeyond the expiraƟonor terminaƟonof thisLease. Ator priorto the expiraƟon or terminaƟonof thisLease Lesseeshall deliverexclusivepossession ofthe PremisestoLessor. For purposesofthis provisionand Paragraph
13.1(a),exclusive possessionshall meanthatLessee shallhave vacatedthe Premises,removedall ofits personalpropertytherefrom andthat thePremiseshave been returnedin the condiƟon specifiedinthis Lease. Inthe eventthatLessee doesnot deliverexclusivepossession toLessor as specifiedabove, thenLessor's damages duringany holdoverperiod shallbecomputed atthe amountof theRent(as definedin Paragraph4.1)due duringthe lastfullmonth beforethe expiraƟonor terminaƟonof thisLease (disregardinganytemporary abatementof Rentthat mayhavebeen in effect), butwithBase Rentbeing 150%ofthe BaseRent payable duringsuch lastfull month. Nothing containedherein shallbe construedasconsent byLessor toanyholding overby Lessee.
27. CumulaƟve Remedies. Noremedyor elecƟonhereunder shallbedeemed exclusivebut shall,wherever possible,be cumulaƟve withall otherremediesat lawor inequity.
28. Covenants and CondiƟons; ConstrucƟonofAgreement. All provisionsofthis Leaseto beobserved orperformedby Lesseeare bothcovenantsand condiƟons.
Inconstruing thisLease, allheadingsand Ɵtlesare forthe convenienceofthe ParƟesonly andshallnot beconsidered apartof thisLease. Whenever requiredbythe context,the singularshall includetheplural andvice versa. ThisLeaseshall notbe construedasif preparedby oneofthe ParƟes,but ratheraccording toitsfair meaningas awhole, asifboth ParƟeshad preparedit.
29. Binding Effect;Choice ofLaw. ThisLease shallbebinding uponthe ParƟes,their personalrepresentaƟves,successors andassigns andbegoverned bythe laws ofthe Statein whichthePremises arelocated. Any liƟgaƟonbetweenthe ParƟeshereto concerningthisLease shallbe iniƟatedinthe countyin whichthe Premises arelocated. Signatures tothisLease accomplishedby meansof electronicsignatureor similartechnology shallbelegal andbinding.
30. SubordinaƟon; AƩornment;Non-Disturbance.
30.1 SubordinaƟon. ThisLease andany OpƟongrantedhereby shallbe subjectandsubordinate toany groundlease,mortgage, deedof trust,or other hypothecaƟonor securitydevice (collecƟvely,"SecurityDevice"), nowor hereaŌerplaced uponthePremises, toany andalladvances madeon thesecuritythereof, andto allrenewals, modificaƟons,andextensions thereof. Lesseeagrees thattheholders ofany suchSecurityDevices (inthis Leasetogetherreferredtoas "Lender") 222
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page15of18
shallhave noliability or obligaƟonto performany ofthe obligaƟonsofLessor underthis Lease. Any Lendermay electtohave thisLease and/orany OpƟongranted herebysuperior tothe lienofits SecurityDevice bygiving wriƩen noƟcethereof toLessee, whereuponthisLease andsuch OpƟonsshallbe deemedprior tosuch SecurityDevice, notwithstandingthe relaƟvedatesof the documentaƟon or recordaƟon thereof.
30.2 AƩornment. Inthe eventthat Lessortransfers Ɵtle tothe Premises,orthe Premisesare acquiredbyanother uponthe foreclosureor terminaƟonofa SecurityDevice towhich thisLeaseis subordinated(i) Lesseeshall, subjecttothe non-disturbanceprovisions ofParagraph30.3, aƩornto suchnewowner,andupon request,enter intoa newlease,containing allof theterms andprovisionsof thisLease, withsuchnew ownerfor theremainderof theterm hereof,or,atthe elecƟon ofthe newowner,thisLeasewill automaƟcallybecome anew leasebetweenLessee andsuch newowner,and (ii)Lessor shall thereaŌerbe relievedof anyfurther obligaƟonshereunder andsuch newownershall assumeall ofLessor's obligaƟons,exceptthat suchnew ownershallnot: (a)be liableforany actor omissionof any priorlessor orwith respecttoevents occurringprior to acquisiƟon ofownership;(b) besubject toany offsets ordefenses whichLesseemight haveagainst anyprior lessor, (c)be boundbyprepayment ofmore thanone month'srent,or (d)be liableforthe returnof anysecuritydeposit paidto anyprior lessorwhichwas notpaid or creditedto suchnew owner.
30.3 Non-Disturbance. Withrespect toSecurity Devicesenteredinto byLessor aŌerthe execuƟon ofthis Lease,Lessee's subordinaƟon ofthis Leaseshall be subjectto receivinga commerciallyreasonablenon-disturbance agreement(a "Non-DisturbanceAgreement") fromtheLender whichNon-Disturbance Agreement providesthat Lessee'spossession ofthePremises, andthis Lease,including any opƟonsto extendthe termhereof,will notbe disturbedsolong asLessee isnot in Breachhereof and aƩorns totherecord ownerof thePremises. Further,within 60days aŌertheexecuƟon ofthis Lease,Lessorshall, ifrequested byLessee, useits commerciallyreasonable effortsto obtainaNon-Disturbance Agreementfrom theholder ofanypre-exisƟng SecurityDevice whichissecured bythe Premises. In the eventthat Lessoris unabletoprovide theNon-Disturbance Agreementwithin said60days, thenLessee may,atLessee's opƟon,directly contactLenderand aƩempt to negoƟate forthe execuƟonanddelivery ofa Non-DisturbanceAgreement.
30.4 Self-ExecuƟng. Theagreements containedin thisParagraph30 shallbe effecƟvewithoutthe execuƟonof anyfurtherdocuments; provided,however,that, upon wriƩen requestfrom Lessorora Lenderin connecƟonwith asale, financing or refinancing ofthePremises, Lesseeand Lessorshallexecute suchfurther wriƟngs asmay bereasonably requiredtoseparately documentany subordinaƟon, aƩornment and/orNon-DisturbanceAgreement providedfor herein.
31. AƩorneys' Fees. IfanyParty orBrokerbringsan acƟonorproceeding involvingthe Premiseswhether foundedintort, contractor equity,orto declarerights hereunder,the PrevailingParty (as hereaŌer defined) inany suchproceeding, acƟon,orappeal thereon,shall be enƟtledto reasonable aƩorneys' fees. Such feesmay beawarded inthe samesuitor recoveredin aseparate suit,whetheror notsuch acƟonorproceeding ispursued todecisionor judgment. Theterm, "Prevailing Party"shall include,without limitaƟon,aParty orBrokerwho substanƟally obtainsor defeatstherelief sought,as thecasemay be,whether bycompromise, seƩlement,judgment, orthe abandonmentbythe otherParty orBroker ofits claimordefense. The aƩorneys'feesaward shallnot becomputedin accordancewith anycourt feeschedule, butshallbe suchas tofully reimburseall aƩorneys' feesreasonably incurred. In addiƟon,Lessor shallbe enƟtled to aƩorneys' fees,costs and expensesincurred inthe preparaƟonandservice of noƟces ofDefault and consultaƟonsin connecƟontherewith, whetherornot alegal acƟonissubsequently commencedin connecƟonwith suchDefaultor resulƟngBreach ($200is areasonableminimum peroccurrence forsuchservices and consultaƟon).
32. Lessor's Access;Showing Premises;Repairs. Lessorand Lessor'sagentsshall havethe rightto enterthePremises atany Ɵme,inthe caseof anemergency,and otherwiseat reasonable Ɵmes aŌerreasonableprior noƟcefor thepurpose ofshowingthe sameto prospecƟvepurchasers,lenders, ortenants, andmakingsuch alteraƟons,repairs, improvementsor addiƟonstothe Premisesas Lessormay deemnecessaryor desirableand the erecƟng,using andmaintaining of uƟliƟes, services,pipes andconduits throughthePremises and/orother premisesas longasthere isno materialadverse effect onLessee's useofthe Premises. Allsuch acƟviƟesshall bewithout abatementofrent orliability toLessee.
33. AucƟons. Lessee shallnotconduct, norpermit tobeconducted, any aucƟon uponthe PremiseswithoutLessor's prior wriƩen consent. Lessor shallnot be obligatedto exerciseany standardofreasonableness indetermining whetherto permitan aucƟon.
34. Signs. Lessor mayplaceon thePremises ordinary"ForSale" signsat any Ɵme andordinary"For Lease"signs duringthelast 6months oftheterm hereof. Lessor maynot placeany signonthe exteriorof theBuilding thatcoversany ofthe windowsofthe Premises. Exceptforordinary "ForSublease" signswhich maybeplaced onlyon thePremises, Lesseeshallnot placeany signupon theProjectwithout Lessor'sprior wriƩenconsent. Allsigns mustcomplywith allApplicable Requirements.
35. TerminaƟon; Merger. Unless specificallystated otherwisein wriƟngbyLessor,thevoluntary orother surrenderofthis Leaseby Lessee,themutual terminaƟon or cancellaƟon hereof,or a terminaƟonhereof byLessor forBreach byLessee,shall automaƟcallyterminate anysubleaseor lesserestate inthePremises; provided, however,that Lessormay electto conƟnue anyone orall exisƟngsubtenancies. Lessor'sfailure within10days followingany sucheventto electto thecontrary by wriƩen noƟce tothe holderofany suchlesser interest,shall consƟtuteLessor's elecƟon tohave suchevent consƟtute the terminaƟon ofsuchinterest.
36. Consents. All requestsforconsent shallbe in wriƟng. Exceptas otherwiseprovided herein,whereverin thisLease theconsentof aParty isrequiredto anact by orfor theother Party,suchconsent shallnot beunreasonably withheldordelayed. Lessor's actualreasonablecosts andexpenses (includingbutnot limitedto architects', aƩorneys', engineers'and otherconsultants'fees) incurredin the consideraƟon of,orresponse to,a requestbyLessee forany Lessorconsent,including butnot limitedto consentstoan assignment,a subleƫngor thepresenceor useof aHazardousSubstance, shallbe paidbyLessee uponreceipt ofan invoiceand supporƟng documentaƟon therefor. Lessor'sconsentto anyact, assignmentor subleƫngshallnot consƟtutean acknowledgmentthatno Defaultor BreachbyLessee ofthis Leaseexists, norshallsuch consentbe deemeda waiverofany then exisƟng DefaultorBreach, exceptas maybeotherwise specificallystated in wriƟng by Lessorat the Ɵme ofsuchconsent. The failureto specifyhereinany parƟcular condiƟon toLessor'sconsent shallnot precludethe imposiƟon byLessor atthe Ɵmeof consentof suchfurther orother condiƟons asare thenreasonable withreferenceto the parƟcular maƩerforwhich consentis beinggiven. Inthe eventthat either Partydisagrees withany determinaƟonmadeby theother hereunderand reasonablyrequeststhe reasonsfor such determinaƟon,the determiningparty shallfurnish itsreasons in wriƟng andinreasonable detailwithin 10business daysfollowingsuch request.
37. Guarantor.
37.1 ExecuƟon. TheGuarantors,ifany,shalleachexecute aguaranty intheform mostrecently publishedbyAIR CRE.
37.2 Default. Itshall consƟtutea Defaultofthe Lesseeif anyGuarantorfails orrefuses, uponrequestto provide: (a)evidence ofthe execuƟon ofthe guaranty, includingthe authorityof thepartysigning onGuarantor's behalfto obligateGuarantor,and inthe caseofa corporateGuarantor,a cerƟfiedcopy ofa resoluƟonof its boardof directorsauthorizing themakingof suchguaranty,(b)current financialstatements,(c) anEstoppel CerƟficate,or(d) wriƩen confirmaƟon thattheguaranty is sƟllin effect.
38. Quiet Possession. Subjecttopayment byLessee oftheRent andperformance ofall ofthecovenants, condiƟonsand provisionsonLessee's partto beobserved andperformed underthis Lease,Lesseeshall havequiet possessionand quietenjoymentof thePremises duringtheterm hereof.
39. OpƟons. If Lesseeisgranted any OpƟon, as definedbelow,thenthe followingprovisions shallapply. 223
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page16of18
39.1 DefiniƟon. "OpƟon"shall mean: (a)theright toextend orreducethe termof orrenewthis Leaseor toextend orreducethe termof orrenewany lease thatLessee hason otherpropertyof Lessor;(b) theright of firstrefusal or first offertolease eitherthe Premisesorother propertyof Lessor;(c) therightto purchase, theright of first offertopurchase orthe rightof firstrefusalto purchasethe Premisesorother propertyof Lessor.
39.2 OpƟonsPersonal ToOriginal Lessee. Any OpƟongranted toLessee inthisLease ispersonal totheoriginal Lessee,and cannotbeassigned orexercisedby anyoneother thansaid originalLesseeand onlywhile theoriginal Lesseeisin fullpossession ofthePremises and,if requestedbyLessor,withLessee cerƟfyingthat Lesseehas no intenƟon of thereaŌerassigning or subleƫng.
39.3 MulƟple OpƟons. In theeventthat Lesseehas any mulƟple OpƟonstoextend orrenew thisLease,a later OpƟon cannotbeexercised unlessthe prior OpƟonshave beenvalidly exercised.
39.4 Effect ofDefaulton OpƟons.
(a) Lessee shallhave norightto exercisean OpƟon: (i)duringthe periodcommencing withthegiving ofany noƟceofDefault and conƟnuing unƟlsaid Defaultis cured,(ii) duringtheperiod of Ɵme anyRent isunpaid(without regardto whethernoƟcethereof isgiven Lessee),(iii)during the Ɵme Lesseeis inBreachof thisLease, or(iv) intheevent thatLessee hasbeen given3or more noƟces ofseparateDefault, whetheror nottheDefaults arecured, duringthe 12monthperiod immediatelypreceding theexercise ofthe OpƟon.
(b) Theperiod of Ɵme withinwhichan OpƟonmay beexercisedshall notbe extendedor enlargedbyreason ofLessee's inabilitytoexercise an OpƟon becauseof theprovisions ofParagraph39.4(a).
(c) An OpƟon shallterminate andbeof nofurther forceor effect,notwithstandingLessee's dueand Ɵmelyexerciseof the OpƟon, if, aŌersuch exercise andprior tothe commencement ofthe extendedterm or compleƟon ofthepurchase, (i)Lessee failstopay Rentfor aperiodof 30days aŌersuch Rentbecomesdue (withoutany necessityof Lessortogive noƟcethereof), or(ii) ifLesseecommits aBreach ofthisLease.
40. Security Measures. Lesseeherebyacknowledges thatthe Rentpayableto Lessorhereunder doesnot includethecost ofguard serviceorother security measures,and thatLessor shallhaveno obligaƟonwhatsoever toprovide same. Lessee assumesall responsibility forthe protecƟonof thePremises,Lessee, its agentsand inviteesand theirpropertyfrom theacts ofthird parƟes. In theevent, however,thatLessor shouldelect toprovidesecurity services,then thecost thereof shallbe an OperaƟng Expense.
41. ReservaƟons.
(a) Lessor reservesthe right:(i)to grant,without theconsent orjoinderof Lessee,such easements,rightsand dedicaƟonsthat Lessordeemsnecessary, (ii)to causethe recordaƟonofparcel mapsand restricƟons,(iii) tocreateand/or installnew uƟlityraceways,so longas sucheasements,rights, dedicaƟons,maps, restricƟons,and uƟlityracewaysdonotunreasonably interferewith theuse ofthePremises byLessee. Lessormay also:change thename,address or Ɵtle ofthe Buildingor Projectupon atleast90 daysprior wriƩen noƟce; provideandinstall, atLessee's expense,Buildingstandard graphicson thedoorof thePremises andsuch porƟonsof theCommon AreasasLessor shallreasonably deemappropriate; granttoany lesseethe exclusiverightto conductany businessaslong assuch exclusive rightdoes not conflict withanyrights expresslygiven herein;and toplacesuch signs, noƟces ordisplaysas Lessorreasonably deemsnecessaryor advisable upon the roof,exterior ofthe Buildingorthe Projector onsigns intheCommon Areas. Lesseeagreesto signany documentsreasonablyrequested byLessor to effectuate such rights. The obstrucƟon ofLessee'sview,air,or lightby anystructureerected inthe vicinityofthe Building,whether byLessoror third parƟes, shallin noway affect thisLease orimpose anyliabilityupon Lessor.
(b) Lessoralso reservesthe righttomove Lesseeto otherspaceof comparablesize inthe BuildingorProject. Lessor mustprovideat least73045 days prior wriƩen noƟceof suchmove,and thenew spacemust containimprovementsof comparablequality tothosecontained withinthe Premises. Lessor shallpay the reasonableout ofpocket coststhatLessee incurswith regardto such relocaƟon,including theexpenses ofmovingand necessary staƟonary revisioncosts. Inno event,however,shallLessor berequiredto payan amountin excessoftwo monthsBase Rent. Lesseemaynot berelocated morethanonce duringthe termofthis Lease.
(c) Lesseeshall not: (i)usea representaƟon(photographic orotherwise) oftheBuilding orProject ortheirname(s) in connecƟon withLessee'sbusiness; or(ii) sufferor permitanyone,except inemergency,togo upontheroof ofthe Building.
42. Performance UnderProtest. Ifat any Ɵme adisputeshall ariseas toany amountorsum ofmoney tobepaid byone Partytothe otherunder theprovisions hereof,the Partyagainst whomthe obligaƟon topay themoney isassertedshall havethe righttomake payment"under protest"andsuch paymentshall notbe regardedas avoluntary paymentandthere shallsurvive theright onthepart ofsaid Partyto insƟtute suitfor recoveryofsuch sum. Ifit shallbeadjudged thatthere wasno legal obligaƟon onthepart ofsaid Partyto paysuchsum orany partthereof,said Partyshall be enƟtledto recoversuch sumor somuchthereof asit wasnot legallyrequired topay. AParty whodoes not iniƟate suitforthe recoveryof sumspaid"under protest"within 6monthsshall bedeemed tohave waiveditsright to protestsuch payment.
43. Authority; MulƟple ParƟes; ExecuƟon.
(a) If eitherParty heretoisa corporaƟon,trust, limitedliability company,partnership,or similar enƟty,eachindividual execuƟng thisLease onbehalfof such enƟty representsand warrantsthathe orshe isduly authorizedtoexecute anddeliver thisLeaseon itsbehalf. EachParty shall,within 30days aŌerrequest, deliverto theother Party saƟsfactoryevidence ofsuch authority. (b) Ifthis Leaseis executedbymore thanone personor enƟty as"Lessee", eachsuch personorenƟty shallbe jointlyandseverally liablehereunder. Itis agreedthat anyone ofthenamed Lesseesshall beempowered toexecuteany amendmentto thisLease,or otherdocument ancillarytheretoand bindall ofthe namedLessees, andLessor mayrelyon thesame asif allofthe namedLessees hadexecutedsuch document. (c) ThisLease maybe executedbythe ParƟesin counterparts,each ofwhichshall bedeemed anoriginaland allof whichtogethershall consƟtuteone andthe sameinstrument.
44. Conflict. Any conflictbetweenthe printedprovisions ofthisLease andthe typewriƩenor handwriƩenprovisionsshall becontrolled bythe typewriƩen or handwriƩenprovisions.
45. Offer. PreparaƟon ofthisLease byeither partyortheir agentand submission of sametothe otherParty shallnotbe deemedan offertolease tothe other Party. ThisLease isnotintended tobe binding unƟl executedanddelivered byall ParƟeshereto.
46. Amendments. This Leasemaybe modifiedonly in wriƟng,signed bythe ParƟesin interestatthe Ɵmeof the modificaƟon. Aslong astheydo notmaterially changeLessee's obligaƟonshereunder,Lesseeagreesto makesuch reasonablenon-monetary modificaƟonstothis Leaseas maybereasonably requiredby aLender in connecƟon withthe obtainingofnormal financingor refinancingof thePremises.
47. Waiver ofJury Trial. THE PARTIESHEREBY WAIVETHEIRRESPECTIVE RIGHTSTOTRIALBYJURYINANY ACTIONOR PROCEEDINGINVOLVINGTHE PROPERTY 224
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page17of18
ORARISING OUTOF THISAGREEMENT.
48. ArbitraƟon ofDisputes. AnAddendum requiringthe ArbitraƟonofall disputesbetween theParƟes and/orBrokersarising outof thisLease is isnot aƩachedto thisLease.
49. Accessibility; Americanswith DisabiliƟesAct.
(a) The Premises:
havenot undergonean inspecƟonbya CerƟfiedAccess Specialist(CASp). Note:A CerƟfiedAccess Specialist(CASp)can inspectthe subjectpremisesand determinewhether thesubject premisescomplywith allof theapplicable construcƟon-relatedaccessibilitystandards understate law.Althoughstate lawdoes not requirea CASp inspecƟon ofthesubject premises,the commercialproperty ownerorlessor maynot prohibitthelessee ortenant fromobtaininga CASp inspecƟon of thesubject premisesfor theoccupancyor potenƟaloccupancy ofthe lesseeortenant, ifrequested bythelessee ortenant. The parƟesshall mutuallyagree onthe arrangementsfor the Ɵme andmannerof theCASp inspecƟon,the paymentofthe feefor theCASpinspecƟon, andthe costofmaking anyrepairs necessaryto correct violaƟons of construcƟon-related accessibilitystandardswithin thepremises. haveundergone an inspecƟon bya CerƟfied AccessSpecialist (CASp)and itwasdetermined thatthe Premisesmetall applicable construcƟon-related accessibility standardspursuant toCalifornia CivilCode§55.51 etseq. Lessee acknowledgesthatit receiveda copyofthe inspecƟon report atleast48 hoursprior to execuƟng this Leaseand agreesto keepsuchreport confidenƟal.
haveundergone an inspecƟon bya CerƟfied AccessSpecialist (CASp)and itwasdetermined thatthe Premisesdidnot meetall applicable construcƟon-related accessibilitystandards pursuantto CaliforniaCivilCode §55.51et seq. Lesseeacknowledgesthat itreceived acopyof the inspecƟon reportatleast 48hours priorto execuƟngthis Leaseand agreestokeep suchreport confidenƟalexcept asnecessaryto completerepairs and correcƟonsof violaƟonsof construcƟonrelated accessibilitystandards.
Inthe eventthat thePremiseshave beenissued an inspecƟon reportbya CASpthe Lessorshallprovide acopy ofthedisability access inspecƟon cerƟficateto Lessee within7 daysof the execuƟonof thisLease.
(b) Sincecompliance withthe Americanswith DisabiliƟes Act(ADA) andotherstate andlocal accessibilitystatutes aredependentupon Lessee's specific useof thePremises, Lessormakesno warrantyor representaƟonas towhetheror notthe Premisescomplywith ADAor anysimilar legislaƟon. In theevent that Lessee'suse ofthe Premisesrequires modificaƟons or addiƟons tothe Premisesinorder tobe incompliancewith ADAor otheraccessibilitystatutes, Lesseeagrees to makeany suchnecessary modificaƟonsand/or addiƟons atLessee's expense.
LESSORAND LESSEEHAVE CAREFULLYREADAND REVIEWEDTHIS LEASEAND EACHTERMAND PROVISIONCONTAINED HEREIN,ANDBYTHEEXECUTION OFTHIS LEASESHOW THEIRINFORMED ANDVOLUNTARYCONSENT THERETO. THEPARTIESHEREBYAGREETHAT,ATTHE TIMETHISLEASE ISEXECUTED, THETERMSOF THISLEASE ARECOMMERCIALLY REASONABLEANDEFFECTUATETHEINTENT ANDPURPOSE OFLESSORAND LESSEEWITH RESPECTTOTHE PREMISES.
ATTENTION: NOREPRESENTATIONORRECOMMENDATIONIS MADEBYAIRCRE ORBYANY BROKERAS TOTHELEGAL SUFFICIENCY,LEGAL EFFECT,ORTAX CONSEQUENCESOF THISLEASE ORTHETRANSACTION TOWHICH ITRELATES. THEPARTIESAREURGED TO:
1. SEEKADVICE OFCOUNSELAS TOTHE LEGALANDTAXCONSEQUENCESOF THISLEASE.
2. RETAINAPPROPRIATECONSULTANTSTOREVIEW ANDINVESTIGATETHECONDITIONOF THEPREMISES. SAID INVESTIGATIONSHOULDINCLUDE BUTNOT BE LIMITEDTO:THEPOSSIBLE PRESENCEOFHAZARDOUS SUBSTANCES,THE ZONINGAND SIZEOFTHE PREMISES,THE STRUCTURALINTEGRITY,THE CONDITIONOF
THEROOF ANDOPERATING SYSTEMS,COMPLIANCEWITH THEAMERICANS WITHDISABILITIES ACTANDTHE SUITABILITYOF THEPREMISESFOR LESSEE'S INTENDEDUSE.
WARNING: IFTHE PREMISESARELOCATEDINA STATEOTHER THANCALIFORNIA, CERTAINPROVISIONSOF THELEASEMAYNEEDTO BEREVISEDTOCOMPLYWITH THELAWS OFTHE STATEINWHICH THEPREMISES ARELOCATED.
The parƟes heretohave executedthisLease atthe placeand onthedates specifiedabove theirrespecƟvesignatures.
Executedat:
On:
ByLESSOR:
The City of Garden Grove
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address:
Executedat:
On:
ByLESSEE:
Farmers and Merchants Bank of Long Beach
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address:
225
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFG-21.30,Revised10-22-2020 Page18of18
FederalID No.: FederalID No.:
BROKER
CBRE, Inc.
AƩn: Peter Wells and Taylor Friend
Title: First Vice President
Address: 3501 Jamboree Road, Suite 100 Newport
Beach, CA 92660
Phone: 949-413-5234 and 714-566-5998
Fax:
Email: [email protected] and
[email protected]
FederalID No.:
BrokerDRE License#:
AgentDRE License#: 01718361 and 01885394
BROKER
None
AƩn: None
Title:
Address:
Phone:
Fax:
Email:
FederalID No.:
BrokerDRE License#:
AgentDRE License#:
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 226
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM RA-8.00,Revised10-13-2022 Page1of2
RENTADJUSTMENT(S)
(ORIGINALTERM)
STANDARDLEASEADDENDUM
Dated: September 5, 2024
ByandBetween
Lessor: The City of Garden Grove
Lessee: Farmers and Merchants Bank of Long Beach
PropertyAddress: 12966 Euclid Street, Suite 150, Garden Grove, CA 92840 (streetaddress, city,state, zip)
Paragraph: 50
Themonthly BaseRent duringtheOriginal Termof theLease shallbeincreased byusing themethod(s)selected below(check method(s)tobe usedand fillin appropriately):
I. Consumer PriceIndex.
a. The monthlyBaseRentshallbe increasedon and every months thereaŌer duringtheOriginal Term("CPI Increase Date(s)")commensurate withthe increaseinthe CPI(as herein defined) determinedasfollows: the monthlyBaseRent scheduledfor the firstmonth ofthe Original Termshall be mulƟplied bya fracƟon thedenominator ofwhich istheBase CPI(as herein defined),and thenumerator ofwhichis theComparison CPI(as herein defined). Theamount socalculatedshall consƟtutethe newBase Rent unƟlthe nextCPI IncreaseDate,but inno eventshallany suchnew BaseRent belessthan the BaseRent forthe monthimmediatelypreceding theapplicable CPIIncrease Date. b. Theterm "CPI"shallmean theConsumer PriceIndexof theBureau ofLabor StaƟsƟcs ofthe U.S.Department ofLaborfor (selectone): CPIW (UrbanWage Earnersand ClericalWorkers)or CPI U(AllUrban Consumers),for (fillinUrban Area): or theareain whichthe Premisesis located,All Items(1982-1984 =100). Theterm "ComparisonCPI" shallmeanthe CPIof thecalendarmonth whichis 2fullmonths priorto theapplicable Original TermCPI IncreaseDate. Theterm "BaseCPI" shallmean theCPIof thecalendar monthwhichis 2full monthspriorto theCommencement Dateof theOriginalTerm. c. Ifthe compilaƟonand/or publicaƟon ofthe CPIistransferred toanother governmentaldepartment, bureauoragency oris disconƟnued,theninstead theindex mostnearly thesameas theCPI shallbe usedtocalculate theBase Rentincreaseshereunder. If the ParƟescannot agreeon such alternaƟve index,thenthe maƩershall be submiƩed fordecisionto theAmerican ArbitraƟon AssociaƟon inaccordancewith thethen rulesofsaid associaƟonand thedecisionof thearbitrators shallbe bindingupon the parƟes,with thecost ofsuch arbitraƟonbeingpaid equallyby the ParƟes.
II. Fixed Percentage. Themonthly BaseRentshall beincreased on the anniversary of the Commencement Date andevery 12 months thereaŌerduring theOriginal Term("PercentageIncrease Date(s)")by three percent ( 3 %)ofthe monthlyBase Rent scheduledto bepaid forthemonth immediatelypreceding theapplicable PercentageIncreaseDate.
III. FixedRentalAdjustment(s) ("FRA").
Themonthly BaseRent shallbeincreased tothe followingamounts onthedates setforth below:
On (fill inFRA AdjustmentDate(s)): Thenew BaseRent shallbe:
BROKER'SFEE: For eachadjustmentin BaseRent specifiedabove, theBrokersshall bepaid aBrokerageFee inaccordance withparagraph15 ofthe Leaseor if applicable,paragraph 9of theSublease.
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] 227
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM RA-8.00,Revised10-13-2022 Page2of2
NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 228
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OE-7.02,Revised01-13-2023 Page1of2
OPTION(S)TOEXTEND TERM
STANDARDLEASEADDENDUM
Dated: September 5, 2024
ByandBetween
Lessor: The City of Garden Grove
Lessee: Farmers and Merchants Bank of Long Beach
PropertyAddress: 12966 Euclid Street, Suite 150, Garden Grove, CA 92840 (streetaddress, city,state, zip)
Paragraph: 51 OPTION(S) TOEXTEND TERM. Subject tothe terms, condiƟons andprovisionsof Paragraph39, LessorgrantsLessee two (2) opƟon(s)to extendthe termofthe Lease("Extension OpƟon(s)"),with eachExtension OpƟon beingfor atermof sixty (60) months,commencing when theprior termexpires ("OpƟonTerm(s)"). Inorder toexercise anExtension OpƟon, Lesseemust give wriƩen noƟce ofsuch elecƟontoLessor andLessor mustreceive such noƟce atleast nine (9) but notmorethan monthspriorto thedate thattheapplicable OpƟonTermwouldcommence, Ɵme beingof the essence. If Ɵmely andproper noƟficaƟon ofthe exerciseof anExtension OpƟon isnot givenbyLessee and/orreceived byLessor,such Extension OpƟon shall automaƟcallyexpire. Except as specifically modified, theterms, condiƟonsand provisionsofthe Leaseshall applyduring OpƟon Termsbut theamountof Rentduring OpƟonTermsshallbe establishedbyusing themethod(s) selectedbelow (checkmethod(s)to beused and fillin appropriately):
I. Consumer PriceIndex.
(a) Duringthe OpƟonTerm(s)whichstart(s) on ,the monthlyBaseRent shallbe increasedon and every months thereaŌerduring such OpƟon Term(s)("OpƟonTermCPIIncrease Date(s)")commensurate withtheincrease inthe OpƟonTermCPI (asherein defined)determinedas follows: themonthly BaseRentscheduled forthe monthimmediately precedingthe first occurringOpƟon TermCPIIncrease Dateshall be mulƟpliedby a fracƟon the denominatorof whichis the OpƟonTermBaseCPI (asherein defined),andthe numeratorof whichisthe OpƟonTermComparison CPI(as herein defined). The amountso calculatedshall consƟtutethenew BaseRent unƟlthe next OpƟonTermCPIIncrease Dateduringthe applicable OpƟon Term,butin noevent shallany suchnew BaseRent belessthan theBase Rentfor themonthimmediately precedingthe applicable OpƟonTermCPIIncrease Date. (b) Theterm"OpƟon TermCPI" shallmeanthe ConsumerPrice Indexofthe Bureauof Labor StaƟsƟcs oftheU.S. Department of Laborfor(select one):
CPIW (UrbanWageEarnersandClerical Workers)or CPIU(All UrbanConsumers), for(fillin UrbanArea): or thearea inwhich thePremises is located,All Items(1982-1984 =100). Theterm "OpƟonTermComparison CPI"shall meanthe CPIofthe calendarmonth whichis2 fullmonths priorto theapplicable OpƟonTermCPIIncrease Date. The term"OpƟon TermBase CPI"shallmean theCPI ofthecalendar monthwhich is2full monthsprior to(select one):
CommencementDate ofthe OriginalTerm, start ofthe applicable OpƟonTerm,or (fillin month) . (c) If compilaƟon and/or publicaƟon oftheCPI istransferredtoanothergovernmental department,bureau oragencyor is disconƟnued, theninstead the indexmost nearlythe sameasthe CPIshall beused tocalculatethe BaseRent increaseshereunder. Ifthe ParƟescannotagree onsuch alternaƟveindex, thenthe maƩershall be submiƩed fordecisionto theAmerican ArbitraƟon AssociaƟon inaccordancewith thethen rulesofsaid associaƟonand thedecisionof thearbitrators shallbe bindingupon the parƟes,with thecost ofsuch arbitraƟonbeingpaid equallyby the ParƟes.
II. Fixed Percentage. Duringthe OpƟon Term(s)which start(s)on , themonthly BaseRentshall beincreased on andevery months thereaŌerduring such OpƟon Term(s)("OpƟonTermPercentageIncrease Date(s)")by percent ( %)of themonthly BaseRent scheduled to bepaidfor themonth immediatelypreceding theapplicable OpƟon TermPercentage IncreaseDate.
III. FairMarket Value.
(a) Duringthe OpƟonTerm(s)whichstart(s) on the day following the Expiration Date ,theamount ofRentshallbethe amountforecastedtobe thefairmarket rentalvalue ofthe Premisesduringsuch OpƟonTermestablishedpursuantto theprocedures, terms, assumpƟons and condiƟonsset forthherein ("FairMarketValue"); provided,however,regardlessof suchFairMarket Value,Base Rentduringan OpƟonTermshallnotbe lessthan the BaseRent scheduled as ofwhenthe priorterm expires. StarƟngasof Lessee'sexercise oftheapplicable Extension OpƟon (butnotearlier thansix (6)months before startof theapplicable OpƟonTerm),the ParƟesshall forthirty (30)days("NegoƟaƟon Period") aƩempt toagreeupon theFair MarketValue. Ifduring the NegoƟaƟonPeriod the ParƟes donotagree onthe FairMarket Value,thenthe FairMarket Valueshallbe establishedpursuant totheprocedures setforth herein, whichshall bebinding.
(b) EachPartyshall, within fiŌeen (15)days aŌertheend ofthe NegoƟaƟonPeriod,in wriƟngsubmit totheother Partysuch Party's determinaƟon oftheFair MarketValue("SubmiƩedValue(s)"). Ifa Partyfails to Ɵmely providea SubmiƩed Value,then theotherParty's SubmiƩedValueshallbethe FairMarket Value. If both ParƟes Ɵmelyprovide SubmiƩedValues,then eachParty shall,within fiŌeen(15)days aŌerboth ParƟeshaveexchanged SubmiƩedValues,in wriƟng noƟfy the otherParty ofsuch Party'sselectedvaluator whoshall meetthe qualificaƟonssetforth herein("Advocate Valuator(s)"). Lessor andLessee mayselectan Advocate Valuatorwho isfavorabletosuchParty's posiƟonand may,prior toor aŌer appointmentof anAdvocateValuator,consultwith suchParty'sAdvocate Valuator. Ifa Partyfails to Ɵmely andproperlyprovide noƟceof suchParty's chosenAdvocateValuator,thenthe otherParty's SubmiƩed Valueshall betheFair MarketValue. (c) Ifboth ParƟes Ɵmely andproperlydesignate AdvocateValuators,thensuchAdvocate Valuatorsshall, within fiŌeen(15) days aŌer their selecƟon, choosea third(3rd) neutralvaluator whoshallmeet the qualificaƟons setforth herein("NeutralValuator"). The NeutralValuatorshall beengaged jointlybyLessor andLessee.
IfAdvocate Valuatorsfail toagreeupon and Ɵmely appointa NeutralValuator,then thePresident ofAIRCRE shallappoint suchNeutralValuatorwithin fiŌeen (15) 229
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OE-7.02,Revised01-13-2023 Page2of2
days aŌer requestby eitherParty. Ifthe Presidentof AIRCREdoes not Ɵmely appointtheNeutral Valuator,then eitherPartymay filean appropriatelegal acƟonfora judgewith competent jurisdicƟon overthe ParƟes toappoint theNeutral Valuator. (d) TheAdvocateValuatorsandthe NeutralValuator("Valuator(s)")shallbe dulylicensed realestatebrokers orsalespersons ingoodstanding inthe statein whichthe Premisesis located,shallhave been acƟve overthe five(5)year periodbefore theirappointmentin theleasing of properƟessimilar tothe Premiseswithin thegeneral realestatemarketofthe Premises. TheNeutral Valuatorshall addiƟonally notbe relatedtoor affiliatedwith eitherPartyor AdvocateValuator,andshall nothave previouslyrepresented inareal estate transacƟon aParty oranyonerelated toor affiliatedwitha Party. All maƩersto bedetermined bythe Valuatorsshall bedecided bya majorityvoteof theValuators,witheach Valuatorhavingone (1)vote. TheValuators may,as theValuatorsdetermine, holdhearings andrequire briefs,including marketdata and addiƟonal informaƟon.
(e) Withinthirty (30)days aŌer selecƟonof theNeutral Valuator,the Valuatorsshall first determinethe FairMarketValueestablishedby takingintoaccount theterms, assumpƟons and condiƟonssetforth herein("Valuators'MarketValue"), thendecidewhich Party's SubmiƩed Valueiscloser inmonetary amounttothe Valuators'Market Value("Selected MarketValue"),then providethe ParƟesa copyofthe Valuators'Market Valueand finally noƟfythe ParƟesofthe SelectedMarket Value. TheSelected MarketValueshall bethe FairMarket Value. The Valuatorsshall havenoright todecide aSelectedMarket Valuewhich isa compromiseto(or modificaƟonof) the SubmiƩed Values. The decisionof theValuatorsshallbebinding uponthe ParƟes. The Partywhose SubmiƩedValueis notthe SelectedMarket Valueshall, withinten (10)days aŌer theValuatorsdecidethe SelectedMarketValue,paythe feesandcosts ofall three(3)Valuators. (f) Ifthe FairMarketValue hasnot beenestablished beforethestart ofthe applicable OpƟonTerm, thenLessee shall conƟnueto payto Lessorrent inthe amountpayable forthe monthimmediatelypreceding thestart ofsuch OpƟonTermand Lessor'sacceptance ofsuchrent shallnot waive,adversely affect orprejudice the ParƟes' rightto completeestablishmentof theFair MarketValueorLessor'sright tocollect thefullamount ofthe FairMarketValueoncethe FairMarket Valueis established. Lesseeshall, withinten(10) days aŌer establishmentof theFairMarket Value,pay toLessorany deficiencyin rentthendue forthe OpƟonTerm.
Followingestablishment ofFair MarketValue,the ParƟesshall, withinten (10)days aŌer requestby eitherParty,sign anamendment tothisLease to confirm theFair MarketValueandthe expiraƟondateof thisLease, butthe ParƟes'failureto requestor tosignsuch anamendment shallnot affect establishmentof theFair Market Valueor extensionof theLeaseterm.
(g) The Valuators,indeciding theValuators'MarketValue,shalltakeinto accountrent rates,rentabatements, periodicrent increases,realproperty taxes, insurancepremiums andother operaƟngexpenses,tenant improvementand otherapplicable allowances,buildingservices, lengthof leasetermand otherfactors professionalreal estatebrokers and/orappraiserscustomarily considerin determiningfair marketrentof propertyin anarm'slength transacƟonby ready,willingand able parƟes forspace ofcomparable locaƟon, size,age, condiƟon,quality,parking,visibility,view,signageand accessibilityifthe Premiseswere marketedina normal andcustomary mannerfor areasonablelength of Ɵme onthe openmarketto beleased toatenant with financial strengthandcredit worthinesscomparable to Lesseeand guarantors(if any)ofthis Lease(as ofLessee's exerciseofthe Extension OpƟon) foraterm comparableto thelengthof theapplicable OpƟonTermand usedfor theAgreed Use(orother reasonablycomparable uses). TheValuators,in decidingthe Valuators'MarketValue, shallnot considerasa comparable transacƟonany ofthe following: a sublease,lease assignment,lease renewalorextension; leasewith atenantthat hasequity,isrelatedto or affiliated withthe landlord;or alease ofspacethat wassubject toa rightof first refusal,right of first offer ,expansion opƟon orotherencumbrances. The Valuators,in decidingthe Valuators'Market Value,shall reducetheFair MarketValue onaccount of AlteraƟonsand improvementsmade byLesseeto theextent thecostthereof waspaid solely byLessee (inexcess ofanyapplicable improvementallowance, abatedrent inlieuof improvementallowance orother consideraƟon providedby LessorforLessee's improvementof thePremises), shallnotreduce theFair MarketValueonaccountof anyreal estatebrokeragecommission savingsby Lessor,andshall notreduce the FairMarket Valueon accountofdeferred maintenanceor repairof thePremisesfor whichLessee wasresponsibleunder theLease butdidnot perform.
IV. FixedRental Adjustment(s)("FRA").
Themonthly BaseRent shallbeincreased tothe followingamounts onthedates setforth below:
On (fill inFRA AdjustmentDate(s)): Thenew BaseRent shallbe:
V. ConƟnuaƟonof OriginalTermAdjustments.
Themonthly BaseRent duringthe OpƟon Term(s)which start(s)on shall beincreased inaccordancewith thesame formulaprovidedin theLease tobe usedto calculateincreases intheBase Rentduring theOriginal Termofthe Lease.
BROKER'SFEE: For eachadjustmentin BaseRent specifiedabove, theBrokersshall bepaid aBrokerageFee inaccordance withparagraph15 ofthe Leaseor if applicable,paragraph 9of theSublease.
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 230
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFGRR-2.02,Revised10-22-2020 Page1 of2
RULESANDREGULATIONSFOR
STANDARDOFFICE LEASE
Date: September 5, 2024
ByandBetween
Lessor: The City of Garden Grove
Lessee: Farmers and Merchants Bank of Long Beach
PropertyAddress: 12966 Euclid Street, Suite 150, Garden Grove, CA 92840 (streetaddress, city,state, zip)
GENERALRULES
1. Lesseeshall not suffer orpermitthe obstrucƟonof anyCommonAreas, includingdriveways, walkwaysandstairways.
2. Lessorreserves theright torefuseaccess toany personsLessorin goodfaith judgestobe athreat tothe safetyand reputaƟon ofthe Projectandits occupants.
3. Lesseeshall notmake orpermitany noiseor odorsthatannoy orinterfere withotherlessees orpersons havingbusiness withintheProject.
4. Lesseeshall notkeep animalsorbirds withinthe Project,andshall notbring bicycles,motorcyclesor othervehicles intoareas notdesignatedas authorizedfor same.
5. Lesseeshall notmake, sufferorpermit liƩerexcept inappropriatereceptacles forthat purpose.
6. Lesseeshall notalter anylockor installnew or addiƟonallocks orbolts.
7. Lesseeshall beresponsible fortheinappropriate useof anytoiletrooms, plumbingor other uƟliƟes. Noforeign substancesof anykindare tobe insertedtherein.
8. Lesseeshall notdeface thewalls, parƟƟons orother surfacesofthe Premisesor Project.
9. Lesseeshall not suffer orpermitanything inor aroundthePremises orBuilding thatcausesexcessive vibraƟonor floorloading inanypart ofthe Project.
10. Furniture, significantfreight andequipment shallbemoved intoor outofthe buildingonly withtheLessor's knowledgeand consent,and subjecttosuch reasonable limitaƟons, techniquesand Ɵming,asmay bedesignated byLessor. Lesseeshall beresponsible foranydamage tothe OfficeBuildingProject arisingfrom anysuch acƟvity.
11. Lessee shallnot employany serviceorcontractor forservices orworkto beperformed intheBuilding, exceptas approvedby Lessor.
12. Lessor reservesthe rightto closeandlock theBuilding onSaturdays, Sundaysand BuildingHolidays, andon otherdays betweenthehours of 6:00 P.M.and 8:00 A.M. ofthefollowing day. IfLessee usesthePremises duringsuch periods,Lesseeshall beresponsible forsecurelylocking anydoors itmay haveopened forentry.
13. Lessee shallreturn allkeysatthe terminaƟon ofits tenancyandshall beresponsible forthecost ofreplacing anykeysthatarelost.
14. No windowcoverings, shadesor awningsshallbe installedor usedbyLessee.
15. No Lessee,employee orinvitee shallgoupon theroof oftheBuilding.
16. Lessee shallnot sufferor permitsmokingor carryingof lightedcigarsor cigareƩesin areasreasonablydesignated byLessor orby applicablegovernmental agenciesas non-smokingareas.
17. Lessee shallnot useany methodof heaƟng orair condiƟoningotherthan asprovided byLessor.
18. Lessee shallnot install,maintain oroperateany vendingmachines uponthePremises withoutLessor's wriƩenconsent.
19. The Premisesshall notbe usedforlodging ormanufacturing, cookingorfood preparaƟon.
20. Lessee shallcomply withall safety, fire protecƟon and evacuaƟon regulaƟonsestablishedby Lessoror anyapplicablegovernmental agency.
21. Lessor reservesthe rightto waiveanyone ofthese rulesor regulaƟons, and/oras toanyparƟcular Lessee,and anysuch waivershallnot consƟtutea waiverof anyother ruleor regulaƟonorany subsequent applicaƟon thereofto suchLessee.
22. Lessee assumesall risksfrom theŌorvandalism andagrees tokeepits Premiseslocked asmaybe required.
23. Lessor reservesthe rightto makesuchother reasonablerules and regulaƟonsas itmay from Ɵmeto Ɵmedeem necessaryfor theappropriate operaƟon and safetyof theProject anditsoccupants. Lessee agreesto abidebythese andsuch rulesand regulaƟons.
PARKINGRULES
1. Parkingareas shallbe usedonlyfor parkingby vehiclesnolonger thanfull size,passengerautomobiles hereincalled "PermiƩedSize Vehicles."Vehiclesother than PermiƩed SizeVehicles arehereinreferred toas "OversizedVehicles."
2. Lessee shallnot permitorallow anyvehicles thatbelongto orare controlledbyLessee orLessee's employees,suppliers, shippers,customers,or inviteesto be loaded,unloaded, orparked inareasother thanthose designatedby Lessorforsuch acƟviƟes.
3. Parking sƟckers or idenƟficaƟon devicesshallbe theproperty ofLessorand bereturned toLessorby theholder thereofupon terminaƟonofthe holder'sparking privileges. Lesseewill paysuchreplacement chargeas isreasonably establishedbyLessor forthe lossofsuch devices.
4. Lessorreserves theright torefusethe saleof monthly idenƟficaƟondevices toany personor enƟty thatwillfully refusesto complywiththe applicablerules, regulaƟons,laws and/oragreements.
5. Lessorreserves theright torelocateall ora partofparking spacesfrom floorto floor,withinone floor ,and/or toreasonablyadjacent offsite locaƟon(s), andto reasonablyallocate thembetween compactandstandard sizespaces, aslong asthesame complieswith applicablelaws,ordinances and regulaƟons.
6. Usersof theparking areawillobey allposted signsandpark onlyin theareasdesignated forvehicle parking.
7. Unlessotherwise instructed,every personusingthe parkingarea isrequiredto parkand lockhisown vehicle. Lessorwill notberesponsible forany damageto vehicles,injury topersons orlossof property,all ofwhich risksareassumed bythe partyusingthe parkingarea.
8. ValidaƟon,if established,will bepermissibleonly bysuch methodormethods asLessor and/oritslicensee mayestablish atratesgenerallyapplicableto visitor 231
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM OFGRR-2.02,Revised10-22-2020 Page2 of2
parking.
9. Themaintenance, washing,waxing orcleaningof vehiclesin theparkingstructure orCommon Areasisprohibited.
10. Lessee shallbe responsiblefor seeingthatall ofits employees,agentsand inviteescomply withtheapplicable parkingrules, regulaƟons,laws andagreements.
11. Lessorreserves theright tomodifythese rulesand/or adoptsuchother reasonableand non-discriminatoryrulesand regulaƟonsas itmay deemnecessaryfor theproper operaƟonof theparkingarea.
12. Suchparking useas ishereinprovided isintended merelyasa licenseonly andnobailment isintended orshall becreatedhereby.
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 232
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM CDM-2.02,Revised10-22-2020 Page1of2
EXHIBIT–FORREFERENCE(TobecompletedfollowingtheCommencementDate)
COMMENCEMENTDATEMEMORANDUM
Date: September 5, 2024
ByandBetween
Lessor: The City of Garden Grove
Lessee: Farmers and Merchants Bank of Long Beach
PropertyAddress: 12966 Euclid Street, Suite 150, Garden Grove, CA 92840 (streetaddress, city,state, zip)
THISMEMORANDUM, madeas of September 5, 2024 by andbetween The City of Garden Grove ("Lessor") and Farmers and Merchants Bank of Long Beach ("Lessee").
Recitals:
Lessorand Lesseeare parƟestothat certainLease, datedfor referencepurposes September 5, 2024 (the"Lease") forcertainpremises (the "Premises")commonly knownas (streetaddress,city,state,zip) 12966 Euclid Street, Suite 150, Garden Grove, CA 92840 .
Lesseeis nowin possessionofthe Premisesand theTermoftheLease hascommenced.
Lessorand Lesseedesire toenterinto thisMemorandum confirmingthe CommencementDate,the ExpiraƟonDate andother maƩers underthe Lease.
NOW,THEREFORE, Lessorand Lesseeagreeas follows:
1. Theactual CommencementDate is N .
2. Theactual ExpiraƟonDate is N .
3. TheBase Rentshall beadjustedon thedates indicatedasfollows: (strike ifnot applicable)
4. Other: (strikeif notapplicable)
5. Capitalizedterms not defined hereinshallhave thesame meaningasset forthin theLease. Signaturesto thisMemorandum accomplishedbymeans of electronicsignature orsimilar technologyshallbe legaland binding.
INWITNESS WHEREOF,the parƟesheretohave causedthis Agreementto beexecutedas ofthe dateandyear firstabove wriƩen.
ByLessor
The City of Garden Grove
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address:
FederalID No.:
ByLessee
Farmers and Merchants Bank of Long Beach
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address:
FederalID No.:
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] 233
________ ________
________ ________
INITIALS INITIALS
©2017AIRCRE. AllRightsReserved. LastEdited:9/4/202410:12PM CDM-2.02,Revised10-22-2020 Page2of2
NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 234
1 ADDENDUM TO STANDARD MULTI-LESSEE OFFICE LEASE - GROSS
September 4, 2024
THIS ADDENDUM TO STANDARD MULT I-LESSEE OFFICE LEASE - GROSS ("Addendum") is made and entered into by and among The City of Garden Grove ("Lessor"), and Farmers and Merchants Bank of Long Beach, a California corporation (" Lessee"), as of the date set forth above (the "Effective Date") and on the first page of that certain Standard Multi-Lessee Office Lease – Gross lease form (the " AIR Form") between Lessor and Lessee to which this Addendum is attached and incorporated. The terms, covenants and conditions set forth herein are intended to and shall have the same force and effect as if set forth at length in the body of the AIR Form. Paragraph number references in this A ddendum are intended to track the corresponding paragraph numbers of the AIR Form, except as ot herwise noted. To the extent the provisions of this Addendum are inconsistent with any provi sions of the AIR Form, the provisions of this Addendum shall supersede and control. As used herein the term "Lease" shall mean, collectively, the AIR Form and this Addendum.
52. Effect of governmental authority of Lessor.
No approval or consent given hereunder by Lessor as a Party to this Lease shall be deemed an approval as to compliance or conformance with applicab le governmental codes, laws, rules, or regulations, nor shall any such act be interpreted to constitute an exercise of Lessor’s regulatory authority.
53. Taxes.
Lessor is a municipality subject to assessme nts but exempt from property taxation.
However, Revenue and Taxation Code 107 and 107.6 create a possessory tax assessed upon Lessees based on the leasehold interest in Lessor’s property. Lessor will endeavor to have all tax bills delivered to Lessor and subject to Paragraph 10.3, Lessor will pay all tax bills assessed upon Lessee’s leasehold interest. The initial assessment for the year 2025 shall be considered the Base Year for purposes of Paragraphs 4.2 and 10.3. In the event that the County Assessor delivers the tax bill to Lessee, Lessee agrees to remit the tax bill to Lessor for payment by Lessor.
54. Lessor Liability Insurance Coverage.
Lessor maintains a program of self-insurance for the first $2,000,000 of liability, including auto liability, per occurrence and carries excess policies fo r liability above the self- insurance.
55. Rent Abatement
Notwithstanding anything to the contrary contained in the L ease, Lessee shall not be obligated to pay any Base Rent for the first twelve (12) months of the Lease Term ("Initial Rent Abatement"). In addition to the Initial Rent Ab atement, Lessee shall be entitled to 235
2 abate or otherwise offset Base Rent for the pe riod after the first (12) months of the Lease Term to the extent of Lessee's Work Abatement, as defined and further set forth in the Work Letter Agreement attached hereto as Exhibit A and incorporated by this reference.
56. Rentable Square Feet of the Premises and the Project.
Within sixty (60) days of completion of the Demising Wall set forth in the Work Letter Agreement below, Lessor shall measure the rentable square footage of the Premises using the BOMA 2017 Office Standard, and the Base Rent and Lessee's share of Estimated Operating Expenses under Paragraphs 1.5 and 1.6, respectively, of the AIR Form shall be adjusted if necessary. Any adjustments to th e Base Rent and Lessee's share of Estimated Operating Expenses under this provision shal l be set forth in the Commencement Date Memorandum attached to the AIR Form. The Commencement Date Memorandum shall also include a table showing the Base Rent increases for the entire Lease Term based upon the Base Rent amount in such Commencement Date Memorandum. Lessor and Lessee acknowledge and agree that the Ba se Rent stated in the Lease is intended to be based on the square footage of th e Premises and is subject to adju stment should the actual size be determined to be different as set forth herein.
Prior to completing Lessor's Work set forth below, Lessor shall confirm (or adjust if necessary) the rentable square footage of the Project using the BOMA 2017 Office Standard, and Lessee's share of Estimated Operating Expenses under Paragraph 1.6 of the AIR Form shall be adjusted if necessary. A ny adjustment to Lessee's share of Estimated Operating Expenses under this provision shal l be set forth in the Commencement Date Memorandum attached to the AIR Form.
57. Common Areas – Changes.
In the event Lessor performs any of the actions under Paragraph 2.10 of the AIR Form, Lessor shall provide Lessee with at least twenty four (24) ho urs' prior written notice, and no such action shall unreasonably interfere with Lessee's use or access to the Premises.
58. Lessor's Work.
Lessor, at its sole cost and expense, shall co mplete the work set forth on the Work Letter Agreement attached hereto as Exhibit A ("Lessor's Work").
59. Lessor Delivery Date; Early Possession.
The "Lessor Delivery Date" shall be the earlier of the following: (a) the date of completion of Lessor's Work described in the Work Letter Agreement; or (b) four (4) months following the Effective Date. In the event Lessor fails to complete Lessor's Work and deliver the Premises upon the Lessor Delivery Date and otherwise under the terms required herein, Lessee may terminate this Lease by providing written notice to Lessor. Notwithstanding anything contained in the Lease to the contrary, following the Effective Date, Lessee shall 236
3 be entitled to Early Possession of the Premis es, and Lessee shall not be required to pay Base Rent or its Share of Operating Expenses during any portion of its Early Possession.
60. Operating Expenses.
Notwithstanding anything to th e contrary contained in th e AIR Form, the Operating Expenses shall not include any of the following:
(a) Expenses for services provided by Le ssor for the exclusive benefit of another lessee or lessees that is not of fered to Lessee or that is directly reimbursable by such other lessee or lessees;
(b) All costs, fees, and disbursements rela ting to activities for the solicitation, negotiation, and execution of leases fo r space in the Project (including but not limited to advertising costs, leasing commissions, court and dispute resolution proceeding costs of disputes, and attorneys' fees therefor);
(c) The cost of lessee improvements, build -out allowances, marketing costs, brokerage commissions, moving expe nses, assumption of rent under existing leases, costs of alterations to or payment of allowance for, or the decorating or the redecorating of space in the Project leased to other lessees and other concessions incurred in c onnection with leasing space in the Building and costs incurred in connecti on with the selling or change of ownership of the Building, including brokerage commissions, consultants', attorneys', and accountants' fees, closi ng costs, title in surance premiums, transfer taxes and interest charges;
(d) Capital improvements or expenditures except: (A) as expressly set forth in Paragraph 2.3 of the AIR Form, and (B) capital improvements necessary to maintain the structural integrity and functionality of the Building or Project; provided, however, that in the event Lessor demolishes or remodels all or a substantial portion of the existing Building, Lessee shall not be obligated to pay any share of such expenditures;
(e) The costs associated with the operation of the business of the ownership or entity which constitutes "Lessor," in cluding costs of selling, syndicating, financing, or mortgaging any of Lessor's interest in the Project;
(f) Rentals payable under any ground or underlying lease, if any;
(g) Depreciation, interest, and principal payments on mortgages, and other debt costs;
(h) Repairs or other work required due to fire or other casualty to the extent of insurance proceeds actually received by Lessor or that would have been 237
4 received by Lessor to the extent Lessor carried insurance required pursuant to this Lease;
(i) Payments to affiliates of Lessor to the extent such payments exceed fair market charges;
(j) Costs incurred by Lessor due to the vi olation by Lessor of the terms and conditions of any lease of space in the Building, Lessor's negligence or willful misconduct, or Lessor's inde mnification of any Lessee of the Building pursuant to the provisions of such Lessee's lease;
(k) Wages, salaries, fringe benefits, an d other compensation of executives or principals of Lessor above the level of building manager, and that portion of wage and salary costs and contract payments paid to Lessor's employees to the extent the work of such employees is not allocable to the Project, and any fee charged by Lessor for supervision of its own employees;
(l) Costs or expenses incurred by Lessor in the initial design, construction or development of the Building or the Project and any correction of defects in design or construction of the Building, including replacement of defective equipment;
(m) Costs of renovating or otherwise improving, decorating, painting or redecorating space for lessees, existing or prospective, or other occupants of the Building and the Project;
(n) Lessor's general corporate overhead and administrative expenses;
(o) Reserves set aside for maintenance, repair and/or replacement of Common Area improvements and equipment, except to the extent actually allocated and expended by Lessor for such purposes.
(p) Costs associated with th e monitoring, testing, removal, or remediation of Hazardous Materials in, about, or from th e Building or Project (other than ordinary removal costs for Hazardous Materials found in construction materials and supplies used in the or dinary operation and maintenance of the Building);
(q) Fines, costs, late charges, liquidated damages, penalties, tax penalties, or related interest charges imposed on Lessor or Lessor's property or Building manager;
(r) Costs and expenses for janitorial serv ices except in connection with the Common Area; and
238
5 (s) Any other expenses which, in accordance with generally accepted accounting principles, consistently a pplied, would not normally be treated as Operating Expenses by lessors of comparable buildings.
61. Operating Expenses – Budget and Audit.
On or before October 1 of each calendar year of the Lease Term, Lessor shall provide to Lessee a line-item and otherwise reasonably detailed budget of all projected Operating Expenses for the following calendar year.
Lessee shall have forty five (45) days fo llowing receipt of Lesso r's statement under Paragraph 4.2(f) of the AIR Form showing Lessee's Share of the actual Common Area Operating Expenses for the preceding year (the " Reconciliation Statement") to review and approve such charges. In the event Lessee does not approve the Reconciliation Statement, Lessee may give notice to Lessor of Lessee's intent to audit Lessor’s books and records in connection with the Operating Ex penses. Lessor shall promptly make the applicable records available to Lessee for the audit duri ng normal business hours in its offices or that of its management company in the City in which the Project is located and shall reasonably cooperate with Lessee or its representatives. Lessee shall have the right to: (i) make copies of any or all Lessor’s records if an on-site visit to Lessor’s office is required by Lessor; and (ii) hire any professional internal or third-party auditor that shall also have access to Lessor’s records for purposes of the audit. All the information obtained by Lessee and/or its auditor in connection with such audit, as well as any compromise, settlement, or adjustment reached between Lessor and Lessee as a result thereof, shall be held in strict confidence and, except as may be required pursuant to law, court order, or litigation, shall not be di sclosed to any third party, direc tly or indirectly, by Lessee or its auditor, other than to Lessee's attorneys, accountants or other such parties that are reasonably necessary. Lessor may require Le ssee's auditor to execute a separate confidentiality agreement affi rming the foregoing prior to the auditor conducting such audit.
62. Parking.
The two (2) reserved guest parking spaces spec ified in Paragraph 1.2(b) of the AIR Form shall be located immediately in front of the entry of the Premises. Additionally, Lessor will provide visitor-only parking for the Premises in the parking row nearest the entrance of the Building. A depiction of the reserved guest parking spaces and visitor-only parking spaces is attached hereto as Exhibit B and incorporated by this reference.
63. Building Access.
Lessee shall have full access to Premises twen ty four (24) hours per day, three hundred sixty five (365) days per year.
239
6 64. Premises Partial Damage.
In the event of any Premises Partial Damage th at is not caused by the gross negligence or intentional misconduct of Lessee a nd has not been fully repaired or restored within three (3) months from the date of damage or destruction, Lessee shall have the right to terminate the Lease by providing written notice to Lessor.
65. Sublet/Assignment.
Lessor’s consent to any sublet or assignment pursuant to Paragraph 12 of the AIR Form shall not be unreasonably withheld, conditioned or delayed.
66. Governing Body Approvals.
The execution of the Lease is subject to the approval of Lessee’s Board of Directors, and notification to the Federal Reserve Bank and California Department of Business Oversight.
The execution of the Lease is further subject to the approval of Lessor’s City Council.
67. Interruptions.
Notwithstanding anything to the contrary cont ained in the AIR Form, in the event of any discontinuance of any utility or service that is not caused by Lessee and not remedied by Lessor within twenty (20) days, Lessee shal l have the right to terminate the Lease by providing written notice to Lessor. Additionally, in the event any HV AC services to the Premises are interrupted, discontinued or otherwise not functioning properly for more than seventy two (72) hours, Lessee shall not be required to pay Ba se Rent for as long as such interruption, discontinuance or improper functioning continues.
68. Capital Expenditures Affecting Lessee's Use.
Lessor and Lessee acknowledge and agree that Lessee's Agreed Use is heavily regulated by federal and other applicable laws, and a ny disruption to Lessee's ability to use and occupy the Premises and otherwise hold it open for business may expose Lessee to significant fines, penalties or other disciplinary proceedings. Accordingly, in no event shall Lessor perform any Capital Expenditure that will cause Lessee to close its business to the public. Additionally, in the event Lessor intends to perform a Capital Expenditure otherwise permitted under the Lease that will ad versely change, modify, prohibit, inhibit, prevent or otherwise affect Lessee's access the Premises or otherwise adversely affect Lessee's use and occupancy of the Premises, then Lessor shall provide at least thirty (30) days' prior written notice to Lessee before beginning the construction or installation of such Capital Expenditure. Any such Capital Expenditure shall, if possible, be performed during non-business hours.
69. Signage.
The following signage for Lessee's benefit shall be installed on the Premises:
240
7 (a) directory signage in the interior of the Building at Lessor's sole costs and expense;
(b) a sign approved by Lessor on the front door ar ea of the Premises, at Lessor's sole cost and expense;
(c) one (1) eyebrow sign along the outside of the Building in a mutually agreeable location at Lessee's sole cost and expense; and
(d) a top or prominent position on a physical mo nument sign located on the corner of the Project near the intersection of Euclid Street and Garden Grove Boulevard, which shall be at Lessee’s sole cost. The monument sign shall contain spaces for three (3) tenant displays.
Upon completion of the installation of the mo nument sign, Lessor, at its sole cost and expense, shall take over responsibility fo r its maintenance and operation, except for Lessee’s display/sign copy. Lessee shall not pay rent for its sign display during the Original Term and shall only be required to pay fifty percent (50%) of fair market rental value for its sign display during any Option Term.
If Lessor and the City of Garden Grove (in its governmental capacity and not in its capacity as Lessor hereunder) approve a digital monume nt sign to replace the physical monument sign, Lessor and Lessee shall agree on the term s of Lessee's exposure on such signage, which such exposure shall incl ude at minimum, the maximum exposure available for an individual lessee or occupant of the Building.
70. Relocation.
Notwithstanding anything to the contrary contained in the Lease, any relocation of Lessee by Lessor under the terms of the Lease shall be to space that is on the ground floor of the Building, immediately faces the public street a nd is otherwise of comparable size and layout as the existing Premises. No such relo cation shall interfere with Lessee's signage permitted under the Lease, including without limitation, the eyebrow sign along the outside of the Building. Lessee's reasonable relocation expenses under this provision shall include without limitation, and Lessor shall be responsible for, any costs or expenses incurred by Lessee in relocating the tenant improveme nts, furniture, fixtures and equipment (collectively, the "FF&E") used in the Premises as of the date Lessee opens for business to the public, or in purchasing replacemen t FF&E if any of Lessee's FF&E cannot be reasonably relocated or moved to the relocated Premises. Prior to the Lessor Delivery Date, Lessee shall submit to Lessor a copy of Lessee's budget for the FF&E (the " FF&E Budget") as of the Lessor Delive ry Date for purposes of in forming Lessor of Lessor's potential costs in relocating or moving Lessee under this provision. In determining Lessee's reasonable relocation expenses, each line item of the FF&E Budget shall be determinative as to such item in the relocation unless Lesso r can independently verify error in any such line item, or otherwise provides an alterna tive cost proposal th at accomplishes full replacement of the FF&E in the new space as set forth hereunder without prejudicing Lessee's rights hereunder.
241
8 Lessee shall have the right to terminate this Lease effective one hundred twenty (120) days from the date Lessor provides Lessee with the original notification of intent to relocate if:
(a) the square footage of the Substitute Prem ises differs from the Premises by more than five percent (5%), whether larger or smaller; or (b) Lessee reasonably determines that the relocated Premises are not suitable for the conduct of Lessee's business.
71. Exclusive Use.
During the Term of this Lease (including any extensions thereto), Lessor shall not hereafter lease or license any space in the Building or Project to a lessee, tenant, licensee or occupant whose primary business is financial a nd banking and trust services (a "Competing Use") or permit any person, lessee, tenant, licensee or other occupant to use any portion of the Building or Project for a Competing Use. If Lessor violates the terms of this paragraph (an "Exclusive Use Violation"), and the Exclusive Use Violation continues for thirty (30) days after written notice from Lessee, then Base Rent shall be reduced to twenty five percent (25%) of the Base Rent otherwise due for each month or portion thereof during which such Exclusive Use Violation continues (" Reduced Rent"). If such Exclusive Use Violation continues for three (3) months or more, then Lessee shall have the right, upon written notice to Lessor, in addition to its other remedies available at law or in equity, to terminate this Lease at any time thereafter prior to the cure of such Exclusive Use Violation. Upon any termination provided in this paragraph, a ll Rent and other charges payable by Lessee hereunder shall be prorated through such date of termination and the Security Deposit shall be returned to Lessee as otherwise provided in the Lease.
72. Inducement Recapture. Notwithstanding anything to the contrary contained in the Lease, any rent, other charge, bonus, inducement or considerat ion abated under this Lease that is due and payable to Lessor under the terms of Paragraph 13.3 of the AIR Form by virtue of Lessee's Breach shall be amortized based on a straight-line amortization of such consideration over the full Lease Term (including any then applicable Option Terms).
73. Removal at End of Term. Notwithstanding a nything to the contrary contained in the Lease, and unless Lessor otherwise notifies Lessee in writing, Lessee agrees to remove from the Premises at the end of the Term any Trade Fixtures, Alterations and other equipment that is specific to the Agreed Use and cannot be reasonably used by a subsequent lessee of the Premises, including the bank vault.
[Signature Page Follows]
242
9 IN WITNESS WHEREOF, Lessor and Lessee have executed this Addendum as of the date specified above.
LESSOR:
THE CITY OF GARDEN GROVE
LESSEE:
FARMERS AND MERCHANTS BANK OF
LONG BEACH, a California corporation
B y :
N a m e :
Title:
B y :
N a m e :
Title:
B y :
N a m e :
Title:
B y :
N a m e :
Title:
243
10 EXHIBIT A
WORK LETTER AGREEMENT
The purpose of this Work Letter Agreement is to delineate the respons ibilities of Lessor and Lessee with respect to design and constructi on of the Project, Building and Premises under that certain Standard Multi-Tenant Office L ease – Gross dated September ___, 2024 and the Addendum thereto to which this Work Letter Agreement is attached (collectively, the "Lease") for the Premises commonly known as 12966 Euclid St reet, Suite 150, Garden Grove, California (the "Premises"). Any capitalized terms used in this Work Letter Agreement but not defined herein shall have the meanings ascribed to them in the Lease.
I. Lessor's Work.
A. Scope of Lessor's Work. As of the Commencement Date, Lessor shall furnish the Premises to Lessee with the following work complete ("Lessor's Work"):
1. Open Interior. Except as expressly provided herein, Lessor shall deliver the Premises to Lessee with an ope n interior, with no pa rtition walls, and the Premises shall be free and clear of any e quipment, personal property and improvements, including without limitation, any drop ceiling, ceiling grid, ceiling tiles, registers and light fixtures. The floor of the Premises shall be free of all carpet and shall be a concrete slab on grade for general occupancy. Lessor shall remove any existing telephone and data lines to the Premises. The Premises shall include an NFPA-UL hazard fire sprinkler system, complete with upright heads and plugs at th e fire protection lines of the Premises. Upon delivery, the perimeter walls shall be sande d, smooth-finished a nd non-textured The Premises shall be delivered in broom-clean condition, free of all debris and improvements.
2. Windows. Lessor shall make any repa irs or installations necessary to ensure the windows in the Premises are in good condition and do not otherwise leak.
Lessor shall replace any window glazing that is pealing, contains graffiti or other evidence of vandalism, or is otherwise in poor condition.
3. Utilities. Lessor shall delegate electrical sources between the Premises and any other adjacent space in the Building that does not constitute a portion of the Premises, including without limitation, th e Building space adjacent to the Demising Wall.
4. HV AC. Lessor shall provide h eating, ventilating and air conditioning ("HV AC") ducts from the Building's primary HV AC duct to the entry of the Premises for Lessee's use. Notwithstanding an ything to the contrary contained herein, Lessor shall deliver the Premises to Lessee with all existing HV AC ducts.
5. Environmental Report. Lessor sh all order and obtain, from a qualified organization reasonably approved by Lessee, an environmental investigation and report for the Premises showing any existing Hazardous Substances on the Premises, 244
11 including without limitation, any asbestos. Prior to the Commencement Date, Lessor shall take all remedial action required for the cl eanup of any Hazardous Substance (including without limitation, asbestos) shown or disclosed on such report.
6. Roof. Lessor shall perform any ne cessary repairs or upgrades to ensure the roof of the Building is in good condition.
7. Common Area Restrooms. Lessor shall upgrade and repair the two (2) existing Common Area restrooms in the ground floor lobby of the Building so that such restrooms are in good working order. Such restrooms shall fully comply with the Americans with Disabilities Act of 1990, as th e same may be amended from time to time ("ADA").
8. Parking Area. Lessor shall repair and upgrade the parking area in the Project. Such repair and upgrade shall includ e slurrying and restriping the parking area, removing, correcting or otherwise remedying hazar ds in the parking area (including tree roots or overgrown trees in or adjacent to the parking area), removing and replacing mature or overgrown trees located in or adjacent to the parking area, and installing appropriate lighting for the parking area. Lessor's im provements to the parking area under this provision shall fully comply with the ADA.
B. Building Warranties. Lessor represents and warrants that the Building and all Building systems are in good working orde r for a period of one (1) year from the Commencement Date.
C. Completion of Lessor's Work. Within thirty (30) days of the Lessor Delivery Date and Lessor's delivery of the Premises to Lessee, Lessee shall provide a punchlist of any items of Lessor's Work not completed by Lessor as required hereunder, and Lessor shall promptly (and in no event more than thirty (30) days from receipt of Lessee's punch list) complete and/or rectify such items.
II. Lessee's Work. Lessee shall complete the work set forth in this Section II ("Lessee's Work").
A. Lessee's Interior Work. Lessee's Work shall include the work reasonably necessary to construct and outfit the interior of the Premises and facilitate the use of the Premises for general banking and trust purposes ("Lessee's Interior Work"), as generally (but not exclusively) depicted on Exhibit A- 1, attached hereto and incorporated by this reference. Lessee shall pay for the costs of construction of Lessee's Interior Work. Lessee's Interior Work shall be undertaken under the terms set forth in this Work Letter, and for the avoidance of doubt, shall not be governed or restricted by the terms set forth in Paragraph 7 of the AIR Form. All design and construction of Lessee's Interior Work shall comply with all applicable statutes, ordinances, regulations, laws and codes of the City of Garden Grove and, as applicable, those of the County of Orange, State of California, the federal government and all other duly constituted au thorities exercising jurisdiction over the Premises and/or the Project.
245
12 B. Lessee's Exterior Work. Lessee shall complete the following Work to the exterior and Common Areas of the Build ing and/or Project (collectively, " Lessee's Exterior Work"):
1. Building Entry. Lessee shall updat e the exterior entry of the Building pursuant to the depiction attached hereto as Exhibit A-2 and incorporated by this reference. The Building entry shall be comp leted according to the general design of the Building, as determined by Lessee in its reasonable discretion. Lessee shall be responsible for costs related to ADA requirements resulting from any modifications to the entry of the Building.
2. Demising Wall. Lessee shall construct a demising wall (the "Demising Wall") separating the Premises from the adjacent space that will not constitute a portion of the Premises in the location de picted on Exhibit A-3 attached hereto and incorporated by this reference.
3. Fire Sprinklers and Alarm. Lessee sh all delegate any fire sprinkler system between the Premises and any other ad jacent space in the Bu ilding that will not constitute a portion of the Premises. Lessor shall cooperate with Lessee in connection with Lessee's delegation of such fire sprinkler systems, including without limitation, by providing Lessee access to all other portions of the Building reasonably necessary to complete the fire sprinkler delegation in this provision.
4. Entrances and Landscaping. Lesse e shall replace all existing carpeting in the entrance and lobby areas of the Building with new carpeting. The ground floor Common Areas and path of travel to the Premises shall fully comply with the ADA.
Lessee shall remove, remodel and/or replace the landscape planter currently located at the front entry of the Building so that the Building entry is fully visible. Lessee shall trim, reduce and otherwise modify the existing landscaping in the Project so that the Building is reasonably visible and such la ndscaping is not overgrown and does not block or impede the entry to the Building.
5. Exterior Lighting. Lessee shall install appropriate lighting illuminating the ATM area near the entrance of the Premises. Such lighting shall comply with all federal, state and local laws required in connection with proper illumination for an ATM area.
III. Lessee’s Work Abatement.
Lessor and Lessee acknowledge and agree th at for the cost of Lessee's Exterior Work performed under this Work Letter Agreement (including actual costs of professionals used in evaluating or performi ng Lessee's Exterior Work), Lessee shall be entitled to abatement of Base Rent under the Lease for the cost of such work incurred by Lessee (the " Lessee’s Work Abatement"). The Lessee’s Work Abatement shall be in addition to and not in lieu of the Initial Rent Abatement set forth in the Lease. The Lessee’s 246
13 Work Abatement shall not exceed Two Hundred Thousand Dollars ($200,000.00) without the prior written approval by Lessor. Upon completion of Lessee's Exterior Work, Lessee shall submit the Lessee’s Work Abatement amount to Lessor, and Lessor and Lessee shall execute an amendment to the Lease setting fo rth the abated Base Rent pursuant to the Lessee’s Work Abatement.
IV. Completion of Lessee's Plans Specifications.
A. Selection and Approval of Design Consultant. Lessee shall retain a planner ("Planner"), for the preparation of plans and specifications for Lessee's Work. The Planner shall not be paid or otherwise compensated by Lessor.
B. Lessee's Interior Work. Within sixty (60) days following the Effective Date of the Lease, Lessee shall cause the Planner to prepare and deliver to Lessor a copy of the working drawings showing Lessee's Interior Work.
C. Lessee's Exterior Work. Prior to commencing Lessee's Exterior Work, Lessee shall submit any plans, specifications , proposals or plans in connection with performing Lessee's Exterior Work for Lessor' s review and approval (collectively, the "Working Drawings"). Within ten (10) days of Lessor's receipt of the Working Drawings, Lessor shall return to Lessee one (1) set of the Working Drawings with Lessor's required modifications and/or approval. Lessor shall not unreasonably withhold, condition or delay its approval of the Working Drawings. If Lessee, upon receipt of the Working Drawings bearing Lessor's approval with required modi fications, wishes to take exception or otherwise object thereto, Lessee may do so in wr iting to Lessor within ten (10) days from the date of return by Lessor. Lessor shall then review and approve such Working Drawings within ten (10) days of receiving Lessee's objections or requested modifications thereto. If Lessor does not approve the Working Drawings as objected to and/or modified by Lessee, then Lessor and Lessee shall follow the fore going procedures for approving the Working Drawings until the same are finally approved by Lessor and Lessee; provided, however, that if Lessor and Lessee cannot agree on the Working Drawings within sixty (60) days of Lessee first submitting the Working Drawings to Lessor, then Lessee shall have the right to terminate this Lease by providing written notice to Lessor thereof.
V. Construction of Lessor's Work and Lessee's Work.
A. Prior to Commencement of Construction.
1. General Contractor. Promptly upon selection thereof, the parties shall designate to the other in writing the names and addresses of the general contractor (each, a "General Contractor", and together, the "General Contractors") for such party's work hereunder, and all major subcontractors to be used by such party for the construction and installation of such party's respective work hereunder. The General Contractor and all such major subcontractors for each party shall be properly licensed and insured contractors.
Lessee shall not be required to provide any payment or performance bonds in connection with Lessee’s Work.
247
14 2. Representatives. Lessor hereby designates
1, as its construction representative (" Lessor's Representative ") and Lessee hereby designates Trinity Investme nts GP, Christine Walker-Bowman as its construction representative (" Lessee's Representative"). Either Lessor or Lessee may designated successor construction representati ves by written notice to the other party, delivered according to the terms for delivering notices set forth in the Lease. Lessor's Representative, Lessee's Representative, the Planner and the General Contractor shall meet and/or otherwise communicate as often as is ne cessary in order to comply with this Work Letter Agreement and provide for the expedi tious construction of Lessor's Work and Lessee's Work.
3. Compliance; Cooperation. Lessor's Work and Lessee's Work shall comply in all respects with applicable federal, state, city and count y statutes, ordinances, regulations, laws and codes, including without limitation, the ADA. All required building, sign and other permits in connection with the construction and completion of Lessor's Work and Lessee's Work shall be obtained and paid for by the party required to perform such work hereunder in a timely fashion when due. Lessor and Lessee hereby acknowledge and agree that neither Lessor, Lessee, the Genera l Contractors nor any subcontractors shall in the construction of Lessor's Work or Lessee' s Work, as applicable , do anything that jeopardizes the labor relations of others in the Project. Le ssor and Lessee shall work in harmony with and shall not unrea sonably interfere with any labor employed by the other, or by any of the contractors, employees or agents of the other, with respect to the performance of Lessor's Work and Lessee's Wo rk by the applicable party. Lessor shall reasonably cooperate with Le ssee's completion of Lessee' s Work, including without limitation, the operation of the Building and the orderly scheduling of maintenance and repairs in effort to avoid or minimize any interference therewith.
B. Required Insurance.
1. General Insurance. Prior to commencement of any construction of Lessor's Work or Lessee's Work, the responsible party shall furnish to the other evidence that the applicable General Contractor and all subcontractors have and will maintain throughout the construction process at least the following insurance:
(i) Workers' Compensation, as required by state law, and including Employer's Liability Insurance, with a limit of not le ss than One Million Dollars ($1,000,000.00), and any insurance required by any Employee Benefit Acts or other statutes applicable where the work is to be performed as will protect the General Contractors and subcontractors from any and all liability under the aforementioned acts or statutes.
(ii) Broad Form Comprehensive Ge neral Liability Insurance (including Contractor's Protec tive Liability) with a minimu m combined single limit of liability of Two Million Dollars ($2,000,000.00). In addition to the foregoing, each party
1 NOTE TO LESSOR: Please identify construction representative. 248
15 shall provide the other with Comprehensiv e Automobile Liability Insurance with a minimum combined single limit of liabili ty of One Million Dollars ($1,000,000.00) and which shall insure against all loss in conn ection with the ownership, maintenance and operation of automotive equipment that is owned, hired or non-owned. All such insurance shall insure against any and all claims fo r bodily injury, incl uding death resulting therefrom, and damage to or destruction of property of any kind whatsoever and to whomsoever belonging, and arising from the General Co ntractors' operations under the contract and whether such operations are performed by the General Contractors, subcontractors or any of their sub-subcontract ors, or by anyone dir ectly or indirectly employed by any of them.
2. Builder's Risk Insurance. Each party shall insure such party's work and the components thereof prior to completion of such party's work.
3. Certificates. Certificates of Insurance in compliance with this Work Letter Agreement shall be provided by each pa rty to the other prior to commencement of any construction activity by the applicable Gene ral Contractor or othe rs with regard to Lessor's Work and Lessee's Work, as applicable. No reduction in the amounts or limits of liability or cancellation of such insurance coverage sha ll be undertaken without prior written notice to the other part y hereto at least fifteen (15) days before such reduction, cancellation or modification.
C. Commencement of Construction.
1. Lessor and Lessee agree to proceed with their respective construction diligently, and to complete their work in strict accordance with this Work Letter Agreement and the Lease.
2. Prior to the undertaking of any construction work that deviates from the this Work Letter Agreement, or the undertaking of any material modifications whatsoever to the Building and/or utilities or other work not expressly set forth herein, the written approval of the other party hereto shall be obtained by the party making such change.
3. Each party hereto shall be fully responsible for the operations and activities of such party's General Contractor and all subcontractors employed or utilized by such General Contractor, and other individuals and or contractors employed by such party in the completion of such party's work hereunde r. Any such contractor and/or individual shall repair any damage to any work caused by it or its work.
4. Lessor and its General Contractor shall be responsible for compliance with all applicable union and othe r agency benefits pl ans with regard to construction of Lessor's Work. Lessee shall have no liability or responsibility whatsoever with regard to such matters.
249
16 5. Each party hereto shall be resp onsible for enforcement of all warranties from such party's General Contract or and other parties regarding such party's work. Notwithstanding any contrary provision of the Lease or this Work Letter Agreement, neither party hereto shall be required to remedy or correct any situation arising as a result of any matter covered by the warranties of the other party.
D. Payment of Construction Costs. Except as expressly provided herein, each party shall be responsible for payment of all costs, charges and expenses of such party's work, including, without limitation, all fees and charges of such party's General Contractor.
E. Certificate of Acceptance. Upon the completion of Lessee's Work, Lessor shall inspect the Premises and shall issue a Certificate of Acceptance of the Premises. 250
17 Exhibit A-1
Depiction of Lessee's Interior Work
251
18 Exhibit A-2
Depiction of Building Entry
[Attached hereto]
252
19 Exhibit A-3
Depiction of Demising Wall
[Attached hereto]
253
20 EXHIBIT B
PARKING DEPICTION
[Attached hereto]
254
Item 362/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 9/10/2024
Subject: Second Reading and Adoption of Ordinance No. 2957 entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE AMENDING SECTION 10.56.110 AND REPEALING SECTION 10.56.115 OF CHAPTER 10.56 OF TITLE 10 OF THE GARDEN GROVE MUNICIPAL CODE
PERTAINING TO OVERSIZED VEHICLE PARKING AND RECREATIONAL VEHICLE PARKING. (Action Item)
Attached for second reading is Ordinance No. 2957 recommended for adoption.
ATTACHMENT(S)
1. Ordinance No. 2957
255
ORDINANCE NO. 2957
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE AMENDING SECTION 10.56.110 AND REPEALING SECTION 10.56.115 OF CHAPTER 10.56 OF TITLE 10 OF THE GARDEN GROVE MUNICIPAL CODE
PERTAINING TO OVERSIZED VEHICLE AND RECREATIONAL VEHICLE PARKING
CITY ATTORNEY SUMMARY
This Ordinance revises Section 10.56.110 of the Garden Grove Municipal Code pertaining to wide vehicles and trailers and combines it with Section 10.56.115 relating to recreational vehicles into a revised Section
10.56.110 pertaining to oversized vehicles to better mitigate traffic hazards for pedestrian and vehicula r safety and to eliminate any possible confusion between the current commercial and recreational vehicle regulations.
WHEREAS, the parking of oversized vehi cles, including recreational vehicles, on public rights-of-way raise a number of public safety concerns, including the obstruction of access to roadways during emergency response, reduction of visibility at intersections, increased opportunities for vehicular thefts and the creation of unsafe environments for persons dwelling within and around them; and
WHEREAS, the City would like to mitigate the public safety concerns associated with the parking of oversized vehicles on the City’s rights-of-way.
NOW, THEREFORE, THE CITY COUNCI L OF THE CITY OF GARDEN GROVE HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Section 10.56.110 of Chapter 10.56 of Title 10 of the Garden Grove Municipal Code is hereby amended in its entirety to read as follows:
§ 10.56.110 Oversized Vehicle Parking.
A. Definitions. Unless otherwise specifically provided, the words and phrases used in this section shall have the following meanings:
1. An “Oversized Vehicle” means the following:
a. Any vehicle with a length in excess of 22 feet and/or width in excess of 80 inches. For purposes of determining the width of an automobile, measurements will be taken from the widest point of the vehicle in its present condition at the time of the inspection; or
b. A Recreational Vehicle; or
c. A Trailer.
256
Garden Grove City Council
Ordinance No. 2957