REDINSURANCE
MAYPROOCIWORKEED
SEP14 2021 CLERKOFCOUNCIL
N-2021- 177
Pollte ( G-14Q.wmL-r C0T•-f,
SHOPPING CENTER LEASE- GROSS
1. Basic Provisions (" Basic Provisions").
1. 1 Parties: ThisShoppingCenterLease ("Lease"), datedfor referencepurposesApril 15, 2021, is madeby and between Rio Vista West, LLC, a California Limited Liability Company ("Lessor") and The SantaAna Police Department a division of the City of Santa Ana, a municipal corporation (" Lessee") ( collectively the "Parties", or individually a "Party").
1. 2 Premises: Thatcertainportionof the ShoppingCenter (asdefinedbelow), includingall improvementsthereinor to beprovidedbyLessorunderthe termsof this Lease, commonlyknownbythe street addressof 3750W. McFadden Avenue, SuiteI, locatedin theCity of SantaAna, Countyof Orange, Stateof California, with zip code92704, asoutlinedonExhibit A attachedhereto Premises"), deemedtobeapproximately989rentablesquarefeetoffloorarea. InadditiontoLessee'srights touseandoccupythe Premisesas hereinafter specified, Lesseeshall have non-exclusiverights to usethe Common Areas (as defined in Paragraph2.7 below) ashereinafter specified, butshallnothaveanyrightstotheroof, exteriorwallsorutilityracewaysof thebuildingcontaining thePremises ("Building") or to anyother buildingsin the ShoppingCenter. ThePremisesand theBuildingaresituatedwithin the Shopping CenterknownasRiverviewWestMarketplace. ThePremises, theBuilding, theCommonAreasandall otherbuildingsand improvementswithinsaidShopping Center, togetherwiththelanduponwhichtheyarelocated, arehereincollectivelyreferredto as the "Shopping Center." ( Seealso Paragraph2)
1.3 Term: Twelve ( 12) full calendar months (" Original Term"), commencing on November 1. 2021 Commencement Date") andending October31, 2022 (" Expiration Date"). (See also Paragraph 3)
1. 4 ERF13' POSW5840Wif the Piemi-spsaFeavailable, Lesseemay haveasHexelusivepossess0on of the Premigeq EaFly PossessionDate"). ( See also PaFagFaphs 3. 2 and A)
1. 5 BaseRent: $2,865.00permonth ("BaseRent"), payable onthefirstdayof eachmonthcommencingonNovember 1, 2021. (Seealso Paragraph 4 and Exhibit I) There areprovisions in this Leasefor the BaseRent to beadjusted. SeeExhibit " I".
1. 6 Percentage Rent Rate. N percent rtai n 4of Gress °a-vrsles— r
percentage.— q and the denemiaa. 48r of y, hiph is the
basis, subject to the b'
Shopping
iii) in theevesitInesseepayssepaira4elyfef anyitem(s) deseFibedin Seetian4.2 ( e.g., Lessee paysf Fits own- 14VAGpfeventativemaintenance), Lessee'sShafefor theitem(s) thatLesseepaidseparatelyshallbezefe. in theeventany, ether Imessee(s) in theShopping CenterpayssepaFat815' feFanyitem(s) (e.g., hessee(s) paysfaf its owntrashFaineval), thefefitabisAFR'aof suchotherLessee'sPFORI-kPqShollheR)Auded fromthedenominatorwhendeterminingLessee's Sharefor suohiteffl(s. in theeventthatthat5izp, gfthp PFRmiqPqand.19FtheShoppingCenteFafemodifieddufingthetermaftliis Lease, Lessorshall 18 MPFPhftntS' Association Annual Pues $_ peryear ("MeFellOWS' AssBeiationDues"). Lesseeshallpay
1. 9 Base Rent and Other Monies Paid Upon Execution:
a) Base Rent: $ 2, 865. 00
h) Common Ares Operating E-xperrsesi _
c) Security Deposit: $. 00 (" Security Deposit"). (See also Paragraph 5) d) h4-- a__ ts' Asseeintion Dues: $ ferthe peried
e) OtheFi for
f) Total Due Upon Execution of this Lease: $ 2, 865. 00
1. 10 Agreed Use: Policesubstationandfor nootherusewithoutLessor'spriorwrittenconsent, whichmaybegranted or withheld at Lessor' s sole discretion and subject to the userestrictions attachedExhibit " H". ( Seealso Paragraph6)
1. 11 Agreed Trade Name: Santa Ana Police Substation . ( See also Paragraph 6)
1. 12 Insuring Party. Lessoris the "InsuringParty". (SeealsoParagraph8)
1. 13 Real Estate Brokers: ( See also Paragraph 15 and 25) a) Representation: The following real estate broker ( the " Broker") and brokerage relationships exist in this transaction ( check applicable boxes):
X Williams Real Estate Management. Inc. represents Lessor.
EXHIBIT 1
b) Paymentto Brokers: Uponexecutionanddeliveryof thisLeaseby bothParties, LessorshallpaytotheBrokerfor the brokerageservicesrenderedby the Broker the fee agreedto in the attaehed-separatewritten agreementer if no such agr
1. 15 Attachments. Attachedheretoarethefollowing, allof whichconstitutea partof thisLease: N/ A an addendum X asiteplanmarkedExhibitA, depictingthePremisesandShoppingCenter; X acurrentsetof theSignCriteriafor theShoppingCentermarkedExhibit `B' ; NA a work letter marked Exhibit " C ;
NA a Guarantyof LeasemarkedExhibit " M
X a Lessee Memorandum of Lease Term Commencement marked Exhibit " E" X an Estoppel Certificate marked Exhibit " F"
X a currentsetof RulesandRegulationsfor the ShoppingCentermarkedExhibit " G'; X other (specify): a list of Exclusive Uses. marked Exhibit " H", Exhibit " I"
2. Premises.
2. 1 Letting. Lessorherebyleasesto Lessee, andLesseeherebyleasesfrom Lessor, thePremises, for the tern, atthe rental, and upon all of the terms, covenantsand conditionsset forth in this Lease. While the approximatesquarefootageof the Premisesmay havebeenusedin the marketingof the Premisesfor purposesof comparison, theBaseRentstatedhereinis NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different.
2. 2 Condition. Lessorshall deliverthe Premisesto Lesseein their "as -is, where -is, with all faults and defects srs esszee: reR[: ee' lSfef: alRR1 1[ SR TR!' JSy!! ll. 7S. 1 ....
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occupancyofthePfafflises, (d) it isnetFelyingEmanyPepFesentationastothe, qiFeRfthePrennisp'smadebyBrakersofLessor, and (a) nelth thee, than a et forth in this Lease.
2. 5 LesseeasPrior Owner/Occupant. ThewarrantiesmadebyLessorin Paragraph2 shallbeof noforceor effectif immediatelypriortotheStartDateLesseewastheowneror occupantof thePremises. In suchevent, Lesseeshallberesponsiblefor any necessarycorrective work.
2. 6 VehicleParking. LesseeshallnotuseandshallnotpermititsemployeestouseanyparkingspacesintheShopping Centerexceptfor parkingbyvehiclesthatareno largerthanfull-sizepassengerautomobilesor pick-uptrucks, hereincalled PermittedSizeVehicles." Lesseeshallpermititsemployeestoonlyoccupythoseparkingspaces, if any, asdepictedasemployee parkingspacesontheShoppingCentersiteplan. Lessormayregulatetheloadingandunloadingof vehiclesby adoptingRulesand RegulationsasprovidedinParagraph2.9. NovehiclesotherthanPermittedSizeVehiclesmaybeparkedintheCommonAreawithout thepriorwrittenpermissionof Lessor. In addition: (a) Lesseeshall notpermitor allowanyvehiclesthat belongto or are controlledby LesseeorLessee's employees, suppliers, shippers, contractorsor inviteestobeloaded, unloaded, orparkedinareas otherthanthosedesignatedbyLessorforsuchactivities; (b) Lesseeshallnotserviceorstoreanyvehiclesin theCommonAreas; and c) if Lesseepermitsor allowsanyof theprohibitedactivitiesdescribedinthisParagraph2.6, thenLessorshallhavetheright, without notice, in additiontosuchotherrightsandremediesthatit mayhave, to removeor tow awaythevehicleinvolvedandchargethecost toLessee, whichcostshallbeimmediatelypayableupondemandbyLessor.
2. 7 Common Areas - Definition. Theterm "Common Areas" is definedasall areasandfacilities outsidethe Premises andwithin theexteriorboundaryline of theShoppingCenterandinteriorutility racewaysandinstallationswithin thePremisesthat areprovidedanddesignatedbytheLessorfromtimeto timeforthegeneralnon-exclusiveuseof Lessor, LesseeandotherLesseesof theShoppingCenterandtheirrespectiveemployees, suppliers, shippers, customers, contractorsandinvitees, includingparkingareas, loadingandunloadingareas, trashareas, roadways, walkways, drivewaysandlandscapedareas.
2. 8 Common Areas - Lessee's Rights. Lessorgrantsto Lessee, for the benefitof Lesseeand its employees, suppliers, shippers, contractors, customersand invitees, during the term of this Lease, the non-exclusiveright to use, in commonwith others entitledtosuchuse, theCommonAreasastheyexistfromtimetotime, subjecttoanyrights, powers, andprivilegesreservedby LessorunderthetermshereoforunderthetermsofanyrulesandregulationsorrestrictionsgoverningtheuseoftheShoppingCenter.
UndernocircumstancesshalltherighthereingrantedtousetheCommonAreasbedeemedtoincludetherighttostoreanyproperty, temporarilyorpermanently, intheCommonAreas, nortodisplaymerchandiseorconductsalesintheCommonAreas. Anysuchstorage, displayor salesshallbepermittedonly by theprior writtenconsentof Lessoror Lessor's designatedagent, asexercisedin Lessor's solediscretion, whichconsentmayberevokedatanytime. In theeventthatanyunauthorizedstorageor displaysshalloccur thenLessorshallhavetheright, withoutnotice, inadditiontosuchotherrightsandremediesthatit mayhave, toremovetheproperty andchargethecosttoLessee, whichcostshallbeimmediatelypayableupondemandbyLessor. 2. 9 CommonAreas - RulesandRegulations. Lessoror suchotherperson(s) asLessormayappointshallhavethe exclusivecontrolandmanagementoftheCommonAreasandshallhavetheright, fromtimetotime, toestablish, modify, amendand enforcereasonablerulesandregulations ("RulesandRegulations") forthemanagement, safety, care, andcleanlinessofthegrounds, theparkingandunloadingofvehiclesandthepreservationof goodorder, aswell asfor theconvenienceofotheroccupantsorLessees of theBuildingandtheShoppingCenterandtheirinvitees. Lesseeagreesto abideby andconformtoall suchRulesandRegulations, andshall useits besteffortsto causeits employees, suppliers, shippers, customers, contractorsandinviteesto soabideandconform.
LessorshallnotberesponsibletoLesseeforthenon-compliancewithsaidRulesandRegulationsbyotherLesseesoftheShoppingCenter.
2. 10 Common Areas - Changes. Lessor shall have the right, in Lessor's sole discretion, from time to time:
a) To makechangesor additionsto the CommonAreas, including, without limitation, changesin the location, size, shapeandnumberof driveways, entrances, parkingspaces, parkingareas, loadingandunloadingareas, ingress, egress, direction of traffic, elevations, landscapedareas, signage, walkwaysandutility raceways; b) To useandclosetemporarilyanyof theCommonAreasfor thepurposeof maintaining, repairingand alteringtheShoppingCenter, solongasreasonableaccessto thePremisesremainsavailable, andto closetemporarilyanyof the CommonAreastowhateverextentisrequiredintheopinionofLessor'scounseltopreventadedicationofortheaccrualof anyrights of anypersonsor of thepublicto anyof theCommonAreas;
c) To designateotherlandoutsidetheboundariesof theShoppingCenterto beapartof theCommonAreasor to be entitled to use the Common Areas on a reciprocal basis; d) To add additional buildings and improvements to the Common Areas; and e) To do and perform such other acts and make such other changesin, to or with respect to the Common Areasand ShoppingCenterasLessormay, in theexerciseof soundbusinessjudgment, deemto be appropriate.
2. 11 Common Areas - Promotional Events; Sidewalk Sales. Lessor reservesthe right, from time to time, in Lessor's solediscretion, to utilize portionsof the CommonAreasfor promotionalevents, which mayinclude, but shallnot be limitedto, entertainment. Lessorfurtherreservestheright, inLessor'ssolediscretion, topermitanyoneormoreLesseesoftheShoppingCenter toconductthedisplayand/orsaleof merchandisefromthesidewalksimmediatelyadjacenttosuchLessees' respectivepremises. 2. 12 CommonAreas - Remodeling. At anytimeduringtheTerm, Lessormayremodelor expand, in anymanner, the existingShoppingCenter, whichworkmayinclude, withoutlimitation, theadditionof shopsand/ornewbuildingsto theShopping Center (collectively, "RemodeledCenter"). If Lessordeemsit necessaryfor constructionpersonnelto enterthe Premisesin orderto constructtheRemodeledCenter, LessorshallgiveLesseenolessthan30dayspriornoticeandLesseeshallallowsuchentry. Lessor shallusereasonableeffortsto completeanyworkaffectingthePremisesin anefficientmannersoasnotto interfereunreasonably with Lessee's business. Lesseeshallnot be entitledto anydamagesfor anyinconvenienceor anydisruptionto Lessee's business causedby suchwork; provided, however, the BaseRentpaid by Lesseefor the periodof the inconvenienceshallbe abatedin proportiontothedegreethatLessee'suseof thePremisesisimpairedasreasonablydeterminedbyLessor.
3. Term.
3. 1 Term. The Commencement Date, Expiration Date and Original Term of this Lease areas specified in Paragraph 1.3. the Pduct of Lessee's business, ifTLesseetot..11yo... .. ball.. occupies he fe ' 6e Gona eRe} iii3 2- EBn.. "' av m oc- puR...- rc} R. S`cT^ p" ^r... v' t^- in.- socx.+x.c E@m2nDatefor an), reason (and fi Fpurposeshepe4l 'eeeupancy" shall iaelude, without limitation, Lessee's emsyonto the, premisagf eS. lSfllEls_ TSJ RRIIIR_._ Al T6TRrJlft6lR. lR T.lf!^ rl fR JIRI lI T.RR7! _ net dPlk,RFFdy4hiii, 1.80 days after the Connueneeffleaf Date, this Tpage shall aummatinAN), tfffflinate unless b. reachedbetweenbesseFandLessee, ia wFifing.
3. 4 LesseeCompliance. Lessor shall not be required to tender possessionof the Premisesto Lesseeuntil Lessee complieswith its obligationto provideevidenceof insurance (Paragraph8.5). Pendingdelivery of suchevidence, Lesseeshall be requiredto perform all of its obligationsunderthis Leasefrom and after the Start Date, includingthe paymentof Rent, notwithstandingLessor's election to withhold possessionpendingreceipt of suchevidenceof insurance.
4. Rent.
4. 1 RentDefined. All monetaryobligationsofLesseetoLessorunderthetermsof thisLease (exceptfortheSecurityDeposit) are deemed to be rent (" Rent")
4. 2 .
a) " Common Areft Opunting Expenses" aFedefined, feF this IneRSe, iIIGHFFedPWPOSOSOf as all eSStS 135' bessapFelatiRgto theewnership, operation, management, Fopairandfeplaeemewtof the ShoppingCenter, meludifig, bilt Ftatlimitedto, the following!
i) The operation, inEepair and maintenanee, neat, elean, good order nn S. RRR. RnASle an S IRn17f:'+. TLR flRTJRl1 x1r- TJ Sn aenlElRRI IN I R1pf0V2kii@R kRanyg enmonth.
b) if Lessepdetpifflninesthat the melhodOfprEwationof any iteii within Genijiien Area OperatingEx inequitable, , Lessor » yr. .».e.....—kt@R" f0. i m— usage ^"other— cquv`.,.___ considerationsAny ___......,.. Area Rxpensesf6Fthesespecific items, notwithstandingthepereemagesetforth in Papagraph1.7. As usedherein, thetefat "Major Lessee" site!! meanaLesseeleasingatleast5,000sqtiaFefeetof Fentableareawithin theShoppingGeatef,
4. 3 Payment. Lesseeshallcausepaymentof Rentto bereceivedby Lessorin lawfulmoneyof theUnitedStates, withoutoffsetor deduction (exceptasspecificallypermittedin thisLease), onor beforethedayonwhichit is due. In theeventthat anyinvoicepreparedbyLessorisinaccuratesuchinaccuracyshallnotconstituteawaiverandLesseeshallbeobligatedtopaythe amountsetforth in this Lease. Rentfor any periodduring theterm hereofwhich is for lessthanonefull calendarmonth shallbe proratedbasedupontheactualnumberof daysof saidmonth. Paymentof Rentshallbemadeto Lessoratits addressstatedhereinor to suchotherpersonsor placeasLessormayfrom timeto timedesignatein writing. Acceptanceof a paymentwhichis lessthanthe amountthendueshallnotbeawaiverof Lessor'srightstothebalanceof suchRent, regardlessof Lessor'sendorsementof anycheck sostating. In theeventthatanycheck, draft, or otherinstrumentof paymentgivenbyLesseeto Lessorisdishonoredfor anyreason, Lesseeagreesto payto Lessorthesumof $25.00in additionto anyLateChargeandLessor, atitsoption, mayrequireall futureRent bepaidbycashier'scheck. Paymentswill beappliedfirsttoaccruedlatechargesandattorney'sfees, secondtoaccruedinterest, thento BaseRentandCommonAreaOperatingExpenses, andanyremainingamounttoanyotheroutstandingchargesorcosts.
6. Use.
6. 1 ( a) AgreedUse; AgreedTrade Name. LesseeshalluseandoccupythePremisesonlyfortheAgreedUse, and for nootheruseor purposewithoutLessor's priorwrittenconsent, andLesseeshalloperateatthePremisesonly undertheAgreed TradeNameandunderno othertradenamewithoutLessor's prior written consent. Lesseeshallnot useor permitthe useof the Premises in a manner that is unlawful, createsdamage, waste or a nuisance, or that disturbs occupantsof or causesdamageto neighboringpremisesorproperties. Otherthanguide, signalandseeing -eyedogs, LesseeshallnotkeeporallowinthePremisesany pets, animals, birds, fish, or reptiles. Lessorshallnot unreasonablywithholdor delayits consentto anywrittenrequestfor a modification of theAgreed Use, or to the Agreed Trade Name, If Lessor electsto withhold consent, Lessor shall within 14 daysafter suchrequestgive written notification of same, which notice shall include an explanationof Lessor's objectionsto the changein the Agreed Use and/ or Agreed Trade Name.
b) ContinuousOperation. Lesseeshall continuously (i) operateand conductthe AgreedUseunderthe AgreedTradeNamewithintheentirePremisesinareputablemannerandinconformitywithindustrystandardsofpracticeprevailingin the field of business ... c)
ViolationsofExclusiveUseRights. LesseeacknowledgesthatLessormaygrant, ormayhavepreviously granted, exclusiveuserightsto otherLesseesof theShoppingCenterandagreesthatamaterialconsiderationto Lessorin entering into this Leaseis Lessee's covenantto limit its useof the Premisesto theAgreedUseunderdie AgreedTradeName assetforth above.
Lessee's violationof exclusiveuserightsgrantedto otherLesseesof theShoppingCenterwill resultin Lessorsufferingirreparable harmand, therefore, in additiontoall otherrightsandremediesavailabletoLessor, Lessormayseekto enjoinLessee'sbreachof such covenantandLesseeshallbeliable for anydamagesincurredor sustainedbyLessorto suchotherLesseeswhoseexclusiveuserights arebreachedbyLessee. In noeventshallLessorbeliabletoLesseeforanyfailureof anyotherLesseesoftheShoppingCenterto operatetheir businesses, or for any lossor damagethat may be occasionedby or throughthe actsor omissionsof otherLesseesor third parties.
d) Other Tenancies. Lessorreservesthe absoluteright to establishproceduresto controlothertenanciesin theShoppingCenter. Regardlessof whetheranyspecificLesseesareshownonanysiteplanattachedhereto, Lesseedoesnotrelyon thatfact, nordoesLessorrepresentthatanyspecificLesseeornumberortypeofLesseesshallor shallnotduringtheTermoccupy anyportionof theShoppingCenter, nordoesLesseerelyonanyotherLesseeoperatingitsbusinessin theShoppingCenteratally particulartimeortimes. Further, noconductbyanyLessee, subLesseeorotheroccupantof, or anycustomerof, or anysupplierto or useof any portion of the ShoppingCentershall constitutean eviction, constructiveor otherwise, of Lesseefrom the Premises, and Lesseeherebywaivesanyandall claimsthatit mightotherwisehaveagainstLessorbyreasonthereof. 6. 2 Hazardous Substances. a)
ReportableUsesRequireConsent. Theterm "HazardousSubstance" asusedin thisLeaseshallmeanany product, substance, or wastewhosepresence, use, manufacture, disposal, transportation, or release, eitherby itself or in combination with othermaterialsexpectedto beonthePremises, is either: (i) potentiallyinjuriousto thepublichealth, safetyor welfare, the environmentor thePremises, (ii) regulatedor monitoredbyanygovernmentalauthority, or (iii) abasisfor potentialliabilityof Lessor toanygovernmentalagencyor third partyunderanyapplicablestatuteor commonlaw theory. HazardousSubstancesshallinclude, butnotbelimitedto, hydrocarbons, petroleum, gasoline, and/or crudeoil or anyproducts, by-productsor fractionsthereof. Lessee shall not engagein any activity in or on the Premiseswhich constitutesa ReportableUse of HazardousSubstanceswithout the expressprior written consentof Lessorand tinnely compliance (at Lessee's expense) with all Applicable Requirements.
ReportableUse" shallmean (i) theinstallationor useof anyaboveor belowgroundstoragetank, (it) thegeneration, possession, storage, use, transportation, or disposalof aHazardousSubstancethatrequiresapermitfrom, or with respectto whicha report, notice, registrationor businessplanis requiredto befiledwith, anygovernmentalauthority, and/or (iii) thepresenceatthePremisesof a HazardousSubstancewith respectto whichanyApplicableRequirementsrequiresthata noticebegivento personsenteringor occupyingthePremisesor neighboringproperties. Notwithstandingtheforegoing, Lesseemayuseanyordinaryandcustomary materialsreasonablyrequiredto beusedinthenormalcourseoftheAgreedUse, ordinaryofficesupplies (copiertoner, liquidpaper, glue, etc.) andcommonhouseholdcleaningmaterials, solong assuchuseis in compliancewith all Applicable Requirements, is not a.
ReportableUse, anddoesnotexposethePremisesor neighboringpropertyto anymeaningfulrisk of contaminationor damageor exposeLessortoanyliabilitytherefor. In addition, Lessormayconditionitsconsentto anyReportableUseuponreceivingsuch additionalassurancesasLessorreasonablydeemsnecessaryto protectitself, thepublic, thePremisesand/or theenvironmentagainst damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expirationortermination) of protectivemodifications (suchasconcreteencasements) and/or increasingtheSecurityDeposit. b) Duty to Inform Lessor. if Lesseeknows, or hasreasonablecauseto believe, that a HazardousSubstancehascome to belocatedin, on, underor aboutthePremises, otherthanaspreviouslyconsentedto by Lessor, Lesseeshallimmediatelygive writtennoticeof suchfacttoLessor, andprovideLessorwith acopyof anyreport, notice, claimor otherdocumentationwhichit has concerning the presence of such Hazardous Substance.
c) LesseeRemediation. Lesseeshall not causeor permit any Hazardous Substanceto be spilled or releasedin, on, under, or aboutthePremises (includingthroughtheplumbingor sanitarysewersystem) andshallpromptly, at Lessee's expense, complywithall ApplicableRequirementsandtakeall investigatoryand/or remedialactionreasonablyrecommended, whetheror not formallyorderedor required, for thecleanupof anycontaminationof, andfor themaintenance, securityand/or monitoringof the Premisesor neighboringproperties, thatwascausedor materiallycontributedto by Lessee, or pertainingto or involvingany HazardousSubstancebroughtontothePremisesduringthetermof thisLease, byor forLessee, oranythirdparty. d) LesseeIndemnification. Lesseeshallindemnify, defendandholdLessor, itsagents, employees, lendersandground lessor, if any, harmlessfromandagainstanyandalllossofrentsand/ordamages, liabilities, judgments, claims, expenses, penalties, andattorneys' andconsultants' feesarisingoutof or involvinganyHazardousSubstancebroughtontothePremisesbyorforLessee, or any third party (provided, however, that Lesseeshall haveno liability underthis Leasewith respectto undergroundmigration of anyHazardousSubstanceunderthePremisesfromareasoutsideof theShoppingCenternotcausedor contributedto by Lessee).
Lessee's obligationsshallinclude, but not belimitedto, the effectsof anycontaminationor injuryto person, propertyor the environmentcreatedor sufferedby Lessee, andthe costof investigation, removal, renediation, restorationand/or abatement, andshall survivethe expirationor terminationof this Lease. No termination, cancellationor releaseagreemententeredinto by Lessorand LesseeshallreleaseLesseefromitsobligationsunderthisLeasewithrespecttoHazardousSubstances, unlessspecificallysoagreed by Lessor in writing at the time of such agreement.
e) Lessor Indemnification. Exceptasotherwiseprovided in paragraph8.7, Lessorand its successorsandassignsshall indemnify, defend, reimburseandhold Lessee, its employeesandlenders, harmlessfrom andagainstany and all environmental damages, includingthecostof remediation, whicharesufferedasadirectresultof HazardousSubstancesonthePremisespriorto Lesseetaking possessionor which arecausedby the grossnegligenceor willful misconductof Lessor, its agentsor employees.
Lessor's obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restorationand/or abatement, andshall survive the expiration or termination of this Lease. f) Investigationsand Remediation. Lessor shall retain the responsibilityand pay for any investigationsor remediationmeasuresrequired by governmental entities having jurisdiction with respectto the existenceof HazardousSubstanceson thePremisesprior to Lesseetaking possession, unlesssuchremediationmeasureis requiredasa resultof Lessee's useof thePremises including "Alterations", asdefinedin paragraph7.3(a) below), in whicheventLesseeshallberesponsibleforsuchpayment. Lessee shallcooperatefully in anysuchactivitiesattherequestof Lessor, includingallowingLessorandLessor'sagentsto havereasonable accessto the Premisesat reasonabletimes in order to carry out Lessor's investigativeand remedialresponsibilities. g) LessorTerminationOption. If aHazardousSubstanceCondition (seeParagraph9.1(e)) occursduringthetermof this Lease, unlessLesseeis legally responsibletherefor (in which caseLesseeshall make the investigation and remediation thereof required by the Applicable Requirementsand this Leaseshall continue in fall force and effect, but subject to Lessor's rights under Paragraph6.2(d) and Paragraph13), Lessormay, at Lessor's option, either (i) investigateand remediatesuchHazardousSubstance Condition, if required, assoonasreasonablypossibleatLessor's expense, in which eventthis Leaseshallcontinuein full forceand effect, or (d) if theestimatedcostto remediatesuchconditionexceeds12timesthethenmonthlyBaseRentor $100,000, whicheveris greater, give written notice to Lessee, within 30 days after receiptby Lessor of knowledge of the occurrenceof suchHazardous SubstanceCondition, of Lessor'sdesireto terminatethisLeaseasof thedate60 daysfollowing thedateof suchnotice. In theevent Lessorelectsto give aterminationnotice, Lesseemay, within 10daysthereafter, givewritten noticetoLessorof Lessee's commitment to pay the amount by which the cost of the remediationof suchHazardousSubstanceCondition exceedsan amount equal to 12times thethenmonthlyBaseRentor $100,000, whicheveris greater. LesseeshallprovideLessorwithsaidfiordsor satisfactoryassurance thereofwithin 30 daysfollowing suchcommitment. In suchevent, this Leaseshall continuein full force andeffect, and Lessorshall proceedto makesuchremediationassoonasreasonablypossibleaftertherequiredfundsareavailable. If Lesseedoesnotgivesuch noticeandprovidetherequiredfundsor assurancethereofwithinthetimeprovided, thisLeaseshallterminateasof thedatespecified in Lessor' s notice of termination.
6. 3 Lessee's Compliance with Applicable Requirements. Exceptasotherwiseprovidedin this Lease, Lesseeshall, at Lessee's soleexpense, fully, diligentlyandin a timelymanner, complywithall ApplicableRequirements, therequirementsof any applicablefire insuranceunderwriter or rating bureau, andthe recommendationsof Lessor's engineersand/or consultantswhich relate in any manner to such Requirements, without regard to whether said Requirementsare now in effect or become effective after the StartDate. Lesseeshall, within10daysafterreceiptof Lessor'swrittenrequest, provideLessorwithcopiesof all permitsandother documents, andotherinformationevidencingLessee'scompliancewithanyApplicableRequirementsspecifiedby Lessor, andshall immediatelyuponreceipt, notifyLessorin writing (withcopiesof anydocumentsinvolved) of anythreatenedor actualclaim, notice, citation, warning, complaintor reportpertainingto or involvingthefailureof Lesseeor thePremisesto complywith anyApplicable Requirements. Likewise, Lesseeshallimmediatelygivewrittennoticeto Lessorof: (i) anywaterdamageto thePremisesandany suspectedseepage, pooling, dampnessor otherconditionconducivetotheproductionof mold; or (ii) anymustinessor otherodorsthat might indicate the presenceof mold in the Premises.
6. 4 Inspection; Compliance. Lessor and Lessor's "Lender" ( as defined in Paragraph 29) and consultants shall have the rightto enterintoPremisesatanytime, in thecaseof anemergency, andotherwiseatreasonabletimesafterreasonablenotice, for the purposeof inspectingtheconditionof thePremisesandforverifyingcompliancebyLesseewiththisLease. Thecostofanysuchinspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous SubstanceCondition ( see Paragraph9.1) is found to exist or be imminent. In such case, Lesseeshall upon requestreimburseLessor for the cost of such inspection, solongassuchinspectionis reasonablyrelatedtotheviolationor contamination. In addition, Lesseeshallprovidecopies of all relevant material safety datasheets (MSDS) to Lessor within 10 days of the receipt of written requesttherefor.
7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.
7. 1 Lessee' s Obligations.
a) In General. Subject to the provisions of Paragraph2.2 ( Condition), 2.3 ( Compliance), 6.3 ( Lessee's Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 ( Damage or Destruction), and 14 (Condemnation), Lesseeshall, at Lessee's sole expense, keepthe Premises, Utility Installations (intendedfor Lessee's exclusiveuse, no matterwhere located), andAlterationsingoodorder, conditionandrepair (whetheror nottheportionof thePremisesrequiringrepairs, orthe meansof repairingthe same, arereasonablyor readily accessibleto Lessee, andwhetheror not the needfor suchrepairsoccursasa resultof Lessee's use, anyprioruse, theelementsor the age of such portion of thePremises), including, butnotlimitedto, all equipmentor facilities, suchasplumbing, HVACequipment, electrical, lightingfacilities, boilers, pressurevessels, fixtures, interior walls, interiorsurfacesof exteriorwalls, ceilings, floors, windows, doors, plateglass, andskylightsbutexcludinganyitemswhich aretheresponsibilityof Lessorpursuantto Paragraph7.2. Lessee, in keepingthePremisesin goodorder, conditionandrepair, shall exerciseand performgood maintenancepractices, specificallyincludingthe procurementandmaintenanceof the servicecontracts requiredbyParagraph7.1(b) below. Lessee'sobligationsshallincluderestorations, replacementsorrenewalswhennecessarytokeep thePremisesandall improvementsthereonor apartthereofin goodorder, conditionandstateof repair. b) Service Contracts. Lesseeshall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, incustomaryformandsubstancefor, andwithcontractorsspecializingandexperiencedinthemaintenanceofthefollowing equipmentandimprovements, if any, if andwheninstalledonthePremises: (i) HVACequipment, (ii) boilerandpressurevessels, and iii) clarifiersandgreaseinterceptors. Lessorreservestheright, uponnoticeto Lessee, to procureandmaintainanyor all of suchservice contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof. c) Failureto Perform. If Lesseefailsto performLessee's obligationsunderthisParagraph7.1, Lessormay enteruponthePremisesafter10days' priorwrittennoticetoLessee (exceptin thecaseof anemergency, in whichcasenonoticeshall berequired), performsuchobligationsonLessee's behalf, andput thePremisesin goodorder, conditionandrepair, andLesseeshall promptly pay to Lessor a sum equal to the cost thereof. d) Replacement. Subject to Lessee's indemnification of Lessor as set forth in Paragraph 8.7 below, and withoutrelievingLesseeof liabilityresultingfromLessee's failureto exerciseandperformgoodmaintenancepractices, if anitem describedinParagraph7.1(b) cannotberepairedotherthanatacostwhichisinexcessof 50% ofthecostofreplacingsuchitem, then suchitemmaybereplacedbyLessor, andthecostthereofshallbeproratedbetweenthePartiesandLesseeshallonlybeobligatedto pay, eachmonthduringtheremainderofthetermofthisLease, onthedateonwhichBaseRentisdue, anamountequaltotheproduct of multiplying the cost of such replacementby a fraction, the numerator of which is one, andthe denominator of which is 144 (i.e. 1/144thof thecostpermonth). LesseeshallpayInterestontheunamortizedbalancebutmayprepayitsobligationatanytime7. 2 Lessor's Obligations. Subject to the provisions of Paragraphs2.2 ( Condition), 2.3 (Compliance), 4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), and-sabjeot-to reimbursement PaFagfapk " ', Lessor shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm and/or smoke detectionsystems, fire hydrants, parking lots, walkways, parkways, driveways, landscaping, fences, signsandutility systems serving the Common Areas and all pails thereof,
E*pe..^,....._,...ant to n^..^, itaph4.2. Lessorshallnot be obligatedto paintthe interiorsurfacesof exteriorwalls nor shallLessorbe obligatedto maintain, repairorreplacewindows, doorsorplateglassof thePremisesall of whichshallbeperformedbyLesseeat Lessee'ssoleexpense. Lesseeexpresslywaivesthe benefitof anystatutenow or hereafterin effectto the extentit is inconsistentwith the terms of this Lease.
7. 3 Utility Installations; Trade Fixtures; Alterations. a) Definitions. The term " Utility Installations" refers to all floor and window coverings, air and/or vacuum lines, powerpanels, electricaldistribution, securityandfire protectionsystems, communicationcabling, lightingfixtures, FNAC equipment, plumbing, andfencingin oronthePremises. Theterm "TradeFixtures" shallmeanLessee'smachineryandequipment thatcanberemovedwithoutdoingmaterialdamageto thePremises. Theterm "Alterations" shallmeananymodificationof the improvements, otherthanUtility Installationsor TradeFixtures, whetherbyadditionor deletion. "LesseeOwnedAlterationsand/or Utility Installations" aredefinedasAlterationsand/or Utility InstallationsmadebyLesseethatarenotyetownedby Lessorpursuantto Paragraph 7. 4( a). b) Consent. Lesseeshall not make any Alterations or Utility Installations to the Premiseswithout Lessor's prior written consent. Lesseemay, however, makenon-structuralAlterations andUtility Installationsto the interior of the Premises excludingtheroof) withoutsuchconsentbut uponnoticeto Lessor, aslongastheyarenotvisiblefrom theoutside, donotinvolve puncturing, relocatingor removingtheroofor anyexistingwalls, will notaffecttheelectrical, plumbing, HVAC, and/or life safety systems, andthe cumulativecostthereofduringthis Leaseasextendeddoesnot exceeda sumequalto 3 month'sBaseRentin the aggregateor asumequalto onemonth'sBaseRentin anyoneyear. Notwithstandingtheforegoing, Lesseeshallnotmakeor permit anyroofpenetrationsand/or installanythingontheroofwithoutthepriorwrittenapprovalofLessor. Lessormay, asapreconditionto grantingsuchapproval, requireLesseeto utilizea contractorchosenand/or approvedby Lessor. Any Alterationsor Utility InstallationsthatLesseeshalldesireto makeandwhichrequiretheconsentof theLessorshallbepresentedto Lessorin writtenform with detailedplans. Consentshallbe deemedconditioneduponLessee's: (i) acquiringall applicablegovernmentalpermits, (ii) furnishingLessorwith copiesof boththepermitsandtheplansandspecificationsprior to commencementof thework, and (iii) compliancewith all conditionsof saidpermitsandotherApplicableRequirementsin a promptandexpeditiousmanner. Any Alterationsor Utility Installationsshall be performedin a workmanlikemannerwith good and sufficientmaterials. Lesseeshall promptly upon completion furnish Lessor with as -built plans and specifications. For work which costs an amount in excessof one month's BaseRent, Lessormaycondition its consentuponLesseeproviding a lien and completionbondin anamountequalto 150% of theestimatedcostof suchAlterationorUtility Installationand/or uponLessee's postinganadditionalSecurityDepositwith Lessor. c) Liens; Bonds. Lesseeshall pay, when due, all claims for labor or materials furnished or allegedto have beenfurnishedtoor forLesseeator for useonthePremises, whichclaimsareor maybesecuredbyanymechanic'sormaterialman's lien againstthePremisesor anyinteresttherein. LesseeshallgiveLessornotlessthan10days' noticepriortothecommencementof anywork in, onor aboutthePremises, andLessorshallhavetherightto postnoticesof non -responsibility. If Lesseeshallcontestthe validity of anysuchlien, claimor demand, thenLesseeshall, at its soleexpensedefendandprotectitself, Lessorandthe Premises againstthe sameandshall payandsatisfyanysuchadversejudgment that may berenderedthereonbeforethe enforcementthereof. If Lessor shall require, Lesseeshall furnish a. surety bond in an amount equal to 150% of the amountof such contestedlien, claim or demand, indemnifyingLessoragainstliabilityfor thesame. If Lessorelectsto participatein anysuchaction, LesseeshallpayLessor'sattorneys' fees and costs.
7. 4 Ownership; Removal; Surrender; and Restoration.
a) Ownership. Subjectto Lessor'sright to requireremovalor electownershipashereinafterprovided, all Alterations andUtility InstallationsmadebyLesseeshallbethepropertyof Lessee, butconsidereda partof thePremises. Lessormay, atany time, electin writing to betheownerof all or anyspecifiedpartof the LesseeOwnedAlterationsandUtility Installations. Unless otherwiseinstructedperParagraph7.4(b) hereof, all LesseeOwnedAlterationsandUtility Installationsshall, at the expirationor terminationof thisLease, becomethe propertyof Lessorandbesurrenderedby Lesseewith the Premises. b) Removal. BydeliverytoLesseeof writtennoticefromLessornotearlierthan90andnotlaterthan30dayspriorto theendof thetermof thisLease, LessormayrequirethatanyorallLesseeOwnedAlterationsorUtilityInstallationsberemovedby theexpirationor terminationof thisLease. Lessormayrequiretheremovalat anytimeof all or anypartof anyLesseeOwned Alterations or Utility Installations madewithout the required consent. c) Surrender; Restoration. LesseeshallsurrenderthePremisesbytheExpirationDateor anyearlierterminationdate, withall of theimprovements, partsandsurfacesthereofbroomcleanandfreeof debris, andin goodoperatingorder, conditionand stateof repair, ordinarywearandtearexcepted. "Ordinarywearandtear" shallnotincludeanydamageor deteriorationthatwould havebeenpreventedby good maintenancepractice. Notwithstandingthe foregoing, if this Leaseis for 12monthsor less, thenLessee shallsurrenderthePremisesin thesameconditionasdeliveredtoLesseeontheStartDatewithNOallowancefor ordinarywearand tear. Lesseeshall repair any damageoccasionedby the installation, maintenanceor removal of Trade Fixtures, LesseeOwned Alterationsand/orUtilityInstallations, furnishings, andequipmentaswellastheremovalof anystoragetankinstalledbyor for Lessee, LesseeshallalsocompletelyremovefromthePremisesanyandallHazardousSubstancesbroughtontothePremisesbyorfor Lessee, or any third party (exceptHazardousSubstanceswhich were depositedvia undergroundmigration from areasoutside of the Premises), evenif suchremovalwouldrequireLesseeto performor payfor workthatexceedsstatutoryrequirements. TradeFixtures shallremainthepropertyof Lesseeandshallbe removedby Lessee. Any personalpropertyof Lesseenot removedon or beforethe ExpirationDateor anyearlierterminationdateshallbedeemedto havebeenabandonedbyLesseeandmaybedisposedof or retained by LessorasLessormay desire. The failure by Lesseeto timely vacatethe Premisespursuantto this Paragraph7.4(c) without the expresswrittenconsentofLessorshallconstituteaholdoverundertheprovisionsof 26below.
8. Insurance; Indemnity.
8. 1 Paymentof Premiums. Thecostof thepremiumsfor the insurancepoliciesrequiredto becarriedby Lessor pursuant to Paragraphs8.2(b), 8.3(a) and 8.3(b), shall be a Common Area Operating Expense. r^- of extending boyend, the term of this Lease Shall be 13FOratedto nnfleidp " A'611the endin,. eta-.. n„ 4^ o
8. 2 Liability Insurance.
a)
Carriedby Lessee. Lesseeshallobtainandkeepin forceaCommercialGeneralLiabilitypolicy ofinsuranceorproofofself-insuranceprotectingLesseeandLessorasanadditionalinsuredagainstclaimsforbodilyinjury, personal injuryandpropertydamagebaseduponor arisingout of theownership, use, occupancyor maintenanceof thePremisesandall areas appurtenantthereto. Such insuranceshall be on an occurrencebasisproviding single limit coveragein an amount not less than 1,000,000peroccurrencewithanannualaggregateof notlessthan $2,000,000. LesseeshalladdLessorasanadditionalinsuredbymeans of an endorsement at least as broad as the Insurance Service Organization' s " Additional Insured -Managers or Lessors of Premises" Endorsement. Thepolicy shallnot containanyintra-insuredexclusionsasbetweeninsuredpersonsor organizations, but shallincludecoveragefor liabilityassumedunderthisLeaseasan "insuredcontract" for theperformanceof Lessee's indemnity obligationsunderthisLease. Thelimitsof saidinsuranceshallnotlimittheliabilityof LesseenorrelieveLesseeof anyobligation hereunder. Lesseeshallprovideanendorsementonits liability policy(ies) whichprovidesthatitsinsuranceshallbeprimarytoandnot contributorywithanysimilarinsurancecarriedbyLessor, whoseinsuranceshallbeconsideredexcessinsuranceonly. b) Carried by Lessor. Lessor shall maintain liability insuranceas describedin Paragraph8.2(a), in additionto, and not in lieu of, the insurancerequiredto bemaintainedby Lessee. Lesseeshallnot benamedasanadditional insured therein.
8. 3 Property Insurance - Building, Improvements and Rental Value. a) Buildingand Improvements. Lessorshallobtainandkeepin forcea policy or policiesof insurancein the nameof Lessor, with losspayableto Lessor, anyground -lessor, andto anyLenderinsuringlossor damageto the Premises. The amountof suchinsuranceshall be equal to the full insurable replacementcost of the Premises, asthe sameshall exist from time to time, or the amountrequiredby anyLender, but in no eventmorethanthe commerciallyreasonableandavailable insurablevaluethereof. LesseeOwnedAlterationsandUtility Installations, TradeFixtures, andLessee'spersonalpropertyshallbe insuredby Lesseenotby Lessor. If thecoverageis availableandcommerciallyappropriate, suchpolicyor policiesshallinsure againstallrisksofdirectphysicallossordamage (excepttheperilsoffloodand/orearthquakeunlessrequiredbyaLender), including coveragefor debrisremovalandtheenforcementof anyApplicableRequirementsrequiringtheupgrading, demolition, reconstruction or replacementof anyportion of the Premisesasthe resultof a coveredloss. Saidpolicy or policiesshallalso containan agreed valuationprovisionin lieuof anycoinsuranceclause, waiverof subrogation, andinflationguardprotectioncausinganincreaseinthe annualproperty insurancecoverageamount by a factor of not lessthan the adjustedU. S. Departmentof Labor ConsumerPrice Index for All Urban Consumersfor the city nearestto where die Premisesarelocated. b) Rental Value. Lessorshallalsoobtainandkeepin forceapolicy or policiesin thenameof Lessor withlosspayabletoLessorandanyLender, insuringthelossofthefull Rentfor oneyearwithanextendedperiodof indemnityfor au 10 additional180days ("RentalValueInsurance"). Saidinsuranceshallcontainanagreedvaluationprovisionin lieuof any coinsuranceclause, andtheamountofcoverageshallbeadjustedamorallytoreflecttheprojectedRentotherwisepayablebyLessee, for the next 12month period. c)
AdjacentPremises. Lesseeshallpayfor anyincreasein thepremiumsfor thepropertyinsurance of theBuildingandfor theCommonAreasor otherbuildingsin theShoppingCenterif saidincreaseis causedby Lessee's acts, omissions, use ............. arc of the Promises
8. 4 Lessee's Property; Business Interruption Insurance; Worker' sCompensation Insurance. a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personalproperty, TradeFixtures, andLesseeOwnedAlterationsandUtility Installations. Suchinsuranceshallbefull replacement costcoveragewithadeductibleofnottoexceed $1,000peroccurrence. TheproceedsfromanysuchinsuranceshallbeusedbyLessee forthereplacementof personalproperty, TradeFixturesandLesseeOwnedAlterationsandUtility Installations. 1anig'.11#9As "vill renablArgeI-eggeefi31- giFeator indireetlessof earningsattfibutableteallVeMseanarnaulyinsuredagainst by prudentlesseesin thehughiegs41 asseeor attributableta preventionef aeaessto the Pfemisaqasaresult b) Business Interruption. Lessee shall ebtain and maintain loss ef innome and AsoFftexpeme ftatififflGein SUGhtunatiatasasa berequiredb, AppliatibleRequirements, Suchp4ey shallincludea Waiverof Subregafiew endorsement. Lesseeshall provideLesseewith a copy of sasheadersementalengwith the eeFtifieateof mskuanee-er- tha r ....... ionInsurance. LesseeshollobtainandniainZiriWeFlief'sCompensation, eliey requiredby Paragraph8.5.
d) No Representation of Adequate Coverage. Lessor makes no representation that the limits or formsof coverageof insurancespecifiedhereinareadequateto coverLessee's property, businessoperationsor obligationsunderthis Lease.
8. 5 InsurancePolicies. Insurancerequiredhereinshallbebycompaniesmaintainingduringthepolicyterma "General PolicyholdersRating" ofatleastA- VII, assetforthinthemostcurrentissueof "Best'sInsuranceGuide", orsuchotherratingasmay berequiredbyaLender. Lesseeshallnotdoorpermittobedoneanythingwhichinvalidatestherequiredinsurancepolicies. Lessee shall, priorto theStartDate, delivertoLessorcertifiedcopiesof policiesof suchinsuranceorcertificateswith copiesof therequired endorsementsevidencingthe existenceand amountsof the requiredinsurance. No suchpolicy shall be cancelableor subjectto modificationexceptafter30dayspriorwrittennoticetoLessor. Lesseeshall, atleast10dayspriortotheexpirationofsuchpolicies, furnishLessorwithevidenceof renewalsor "insurancebinders" evidencingrenewalthereof, orLessormayordersuchinsuranceand chargethecostthereofto Lessee, whichamountshallbepayablebyLesseeto Lessorupondemand. Suchpoliciesshallbefor aterm of at leastoneyear, or thelengthof theremainingtermof thisLease, whicheveris less. If eitherParty -shallfail to procureand maintaintheinsurancerequiredtobecarriedbyit, theotherPartymay, butshallnotberequiredto, procureandmaintainthesame.
8. 6 Waiverof Subrogation. Withoutaffectinganyotherrightsorremedies, LesseeandLessoreachherebyreleaseand relievetheother, andwaivetheirentirerighttorecoverdamagesagainsttheother, forlossofordamagetoitspropertyarisingoutof or incidenttotheperilsrequiredto beinsuredagainstherein. Theeffectof suchreleasesandwaiversisnotlimitedbythearnountof insurancecarriedor required, or by anydeductiblesapplicablehereto. ThePartiesagreeto havetheirrespectivepropertydamage insurancecarrierswaiveanyrighttosubrogationthatsuchcompaniesmayhaveagainstLessororLessee, asthecasemaybe, solong asthe insuranceis not invalidated thereby.
8. 7 Indemnity. Exceptfor Lessor'sgrossnegligenceorwillful misconduct, Lesseeshallindemnify, protect, defendand holdharmlessthePremises, Lessorandits agents, Lessor's masteror groundlessor, propertymanager, partnersandLenders, fromand againstanyandall claims, lossof rentsand/or damages, liens, judgments, penalties, attorneys' andconsultants' fees, expensesand/or liabilitiesarisingoutof, involving, or in connectionwith, theuseand/or occupancyof thePremisesby Lessee. If anyactionor proceedingis broughtagainstLessorby reasonof anyof the foregoing matters, Lesseeshall uponnoticedefendthe sameatLessee's expenseby counselreasonablysatisfactory to Lessor and Lessor shall cooperatewith Lesseein suchdefense. Lessor neednot have first paid any suchclaim in orderto bedefendedor indemnified.
8. 8 Exemptionof Lessorandits Agentsfrom Liability. Notwithstandingthe negligenceor breachof this Lease by Lessoror itsagents, neitherLessornoritsagentsshallbeliableunderanycircumstancesfor: (i) injuryordamagetothepersonor goods, wares, merchandiseorotherpropertyof Lessee, Lessee'semployees, contractors, invitees, customers, oranyotherpersoninor aboutthePremises, whethersuchdamageor injury iscausedbyor resultsfromfire, steam, electricity, gas, wateror rain, indoorair quality, thepresenceof mold or from the breakage, leakage, obstructionor otherdefectsof pipes, fire sprinklers, wires, appliances, plumbing, HVACorlightingfixtures, orfromanyothercause, whetherthesaidinjuryordamageresultsfromconditionsarisingupon thePremisesoruponotherportionsofthebuildingof whichthePremisesareapart, orfromothersourcesorplaces, (ii) anydamages arisingfromanyactorneglectofanyotherLesseeofLessororfromthefailureofLessororitsagentstoenforcetheprovisionsofany otherleasein the ShoppingCenter, or (iii) injuryto Lessee's businessor for anylossof incomeor profit therefrom. Instead, it is intendedthatLessee's solerecoursein theeventof suchdamagesor injurybetofile aclaimontheinsurancepolicy(ies) thatLesseeis required to maintain pursuant to the provisions of Paragraph8. m
Damage or Destruction.
9A Definitions.
a) " Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, otherthanLesseeOwnedAlterationsandUtility Installations, whichcanreasonablyberepairedin 6monthsorlessfromthe dateof thedamageor destruction, andthecostthereofdoesnotexceedasumequalto6month'sBaseRent. LessorshallnotifyLessee in writing within 30 daysfrom the dateof the damageor destructionasto whether or not the damageis Partial or Total. b) " Premises Total Destruction" shall mean damage or destruction to the improvements on the Premises, otherthanLesseeOwnedAlterationsandUtility InstallationsandTradeFixtures, whichcannotreasonablyberepairedin 6 monthsor lessfrom the dateof the damageor destructionand/or the costthereof exceedsa sum equalto 6 month's BaseRent. Lessor shall notify Lessee in writing within 30 days from the date of the damageor destruction as to whether or not the damage is Partial or Total.
c) " Insured Loss" shall mean damage or destruction to improvements on the Premises, other than LesseeOwnedAlterationsandUtility InstallationsandTradeFixtures, whichwascausedby aneventrequiredto becoveredby the insurancedescribedin Paragraph8.3(a), irrespectiveof anydeductibleamountsor coveragelimits involved. d) " ReplacementCost" shallmeanthecostto repairor rebuildtheimprovementsownedby Lessor atthetimeoftheoccurrenceto theirconditionexistingimmediatelypriorthereto, includingdemolition, debrisremovalandupgrading required by the operationof Applicable Requirements, and without deductionfor depreciation. e) " HazardousSubstanceCondition" shall meanthe occurrenceor discoveryof a condition involving the presenceof, or a contamination by, a HazardousSubstance, in, on, or under the Premisesor Common Areas which requires restoration.
9. 2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repairsuchdamage (butnotLessee's TradeFixturesorLesseeOwnedAlterationsandUtility Installations) assoon asreasonablypossibleandthis Leaseshallcontinuein full forceandeffect. Notwithstandingtheforegoing, if therequiredinsurance wasnot in forceor theinsuranceproceedsarenotsufficientto affectsuchrepair, theInsuringPartyshallpromptlycontributethe shortagein proceedsasandwhenrequiredtocompletesaidrepairs. In theevent, however, suchshortagewasdueto thefactthat, by reasonof theuniquenatureof theimprovements, full ReplacementCostinsurancecoveragewasnotcommerciallyreasonableand available, Lessorshallhaveno obligationto payfor theshortagein insuranceproceedsor to fully restoretheuniqueaspectsof the PremisesunlessLesseeprovidesLessorwiththefundsto coversame, or adequateassurancethereof, within10daysfollowingreceipt ofwrittennoticeof suchshortageandrequesttherefor. If Lessorreceivessaidfindsoradequateassurancethereofwithinsaid10day period, thepartyresponsiblefor makingtherepairsshall completethemassoonasreasonablypossibleandthis Leaseshallremainin full force andeffect. If suchfundsor assurancearenotreceived, Lessormayneverthelesselectbywritten noticeto Lesseewithin 10 daysthereafterto: (i) makesuchrestorationandrepairasiscommerciallyreasonablewithLessorpayinganyshortageinproceeds, in which case this Lease shall remain in fill force and effect, or ( ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitledto reimbursementof any fundscontributedby Lesseeto repairanysuch danageor destruction. PremisesPartialDamagedue to flood or earthquakeshallbe subjectto Paragraph9.3, notwithstandingthattheremaybesomeinsurancecoverage, butthenet proceedsofanysuchinsuranceshallbemadeavailablefor therepairsif madeby eitherParty.
9. 3 Partial Damage - Uninsured Loss. If aPremises Partial Damage that is not auInsured Loss occurs, unlesscaused byagrosslynegligentor willful actof Lessee (inwhicheventLesseeshallmaketherepairsatLessee's expense), Lessormayeither:
i) repair suchdamageas soon as reasonablypossibleat Lessor's expense, in which event this Leaseshall continue in full force and effect, or (ii) terminatethis Leaseby giving writtennoticeto Lesseewithin 30 daysafter receiptby Lessorof knowledgeof the occurrenceofsuchdamage. Suchterminationshallbeeffective60daysfollowingthedateof suchnotice. In theeventLessorelectsto terminatethisLease, Lesseeshallhavetheright within 10 daysafterreceiptof theterminationnoticeto givewritten noticeto Lessor of Lessee'scommitmentto payfor therepairof suchdamagewithoutreimbursementfromLessor. LesseeshallprovideLessorwith saidfunds or satisfactoryassurancethereofwithin 30 days aftermaking suchcommitment. Iu sucheventthis Leaseshall continuein full force andeffect, andLessorshallproceedto makesuchrepairsassoonasreasonablypossibleafterthe required furidsaremade available to Lessor. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.
9. 4 Total Destruction. Notwithstanding any other provision hereof, if a PremisesTotal Destruction occurs, this Lease shallterminate60 daysfollowing suchDestruction. If the damageor destructionwascausedby the grossnegligenceor willful misconductof Lessee, Lessorshallhavetherightto recoverLessor'sdamagesfrom Lessee, exceptasprovidedin Paragraph8.6.
9. 5 Damage Near End of Term. If at any time during the last 12 months of this Leasethere is damagefor which the costto repairexceedsone month's BaseRent, whetheror not anhnsuredLoss, Lessormayterminatethis Leaseeffective asof the date of occurrenceof such damageby giving a written termination notice to Lesseewithin 90 days after the dateof occurrenceof such damage. Notwithstanding the foregoing, if Lesseeat that time has an exercisable option to extend this Leaseand the damageis an InsuredLoss, thenLesseemaypreservethisLeaseby, (a) exercisingsuchoptionand (b) providingLessorwith anyshortagein insuranceproceeds (or adequateassurancethereof) neededto makethe repairson or before the earlier of ( i) the datewhich is 10 days afterLessee'sreceiptof Lessor's writtennoticepurportingto terminatethis Lease, or (ii) the dayprior to thedateuponwhich such 12 optionexpires. If LesseedulyexercisessuchoptionduringsuchperiodandprovidesLessorwithfunds (or adequateassurancethereof) to cover anyshortagein insuranceproceeds, Lessorshall, atLessor's commerciallyreasonableexpense, repairsuchdamageassoonas reasonablypossibleandthisLeaseshallcontinuein full forceandeffect. If Lesseefailsto exercisesuchoptionandprovidesuchfunds or assuranceduring suchperiod, or if the damageis not anInsured Loss, then this Leaseshall terminate on the date specified in the termination notice and Lessee' s option shall be extinguished.
9. 6 Damageto ShoppingCenter. In theeventof anydamageor destructionto otherportionsof theBuildingortoany other buildings in the Shopping Center, whether insuredor uninsured ( andwhether or not there is also damage or destruction to thePremises), which cannotreasonablyberepairedin 12monthsor lessfromthedateof thedamageor destruction, Lessormay either (i) repairsuchdamageor destructionassoonasreasonablypossiblewithoutexpensetoLessee, in whicheventthisLeaseshall continuein full forceandeffect, or (ii) terminatethisLeasebygivingwrittennoticetoLesseewithin90daysafterreceiptby Lessor ofknowledgeoftheoccurrenceofsuchdamageordestruction. Suchterminationshallbeeffective60daysfollowingthedateofsuchnotice.
9. 7 Abatement of Rent; Lessee' s Remedies.
a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous SubstanceConditionforwhichLesseeisnotresponsibleunderthisLease, theBaseRentpayablebyLesseefortheperiodrequiredfor therepair, remediationor restorationof suchdamageshallbeabatedin proportionto thedegreetowhich Lessee's useof thePremises is impaired, but notto exceedthe proceedsactuallyreceivedby Lessorfrom theRentalValueInsurance. All otherobligationsof Lesseehereundershall be performedby Lessee, andLessorshall haveno liability for any suchdamage, destruction, remediation, repairor restorationexceptasprovidedherein.
b) Termination; AdvancePayments. Uponterminationof this Leasepursuantto Paragraph6.2(g) or Paragraph9, anequitableadjustmentshallbemadeconcerningadvanceBaseRentandanyotheradvancepaymentsmadebyLessee to Lessor. Lessorshall, in addition, returnto Lesseesomuchof Lessee's SecurityDeposit ashasnot been, or is not thenrequiredto be, usedby Lessor.
10. Real Property Taxes.
10. 1 Definition. As usedherein, the term "Real Property Taxes" shall includeany form of assessment; real estate, general, special, ordinaryor extraordinary, or rentallevy ortax (otherthaninheritance, personalincomeor estatetaxes); improvement bond; and/or licensefeeimposeduponor leviedagainstanylegalor equitableinterestof Lessorin theShoppingCenter, Lessor'sright to otherincometherefrom, and/or Lessor's businessof leasing, by anyauthorityhavingthe director indirectpowerto taxandwhere thefundsaregeneratedwith referenceto theShoppingCenteraddressandwheretheproceedssogeneratedareto beappliedbythe city, countyorotherlocaltaxingauthorityof ajurisdictionwithinwhichtheShoppingCenterislocated. Theterm "RealProperty Taxes" shallalsoincludeanytax, fee, levy, assessmentorcharge, oranyincreasetherein: (i) imposedbyreasonof eventsoccurring during the term of this Lease, including but not limited to, a changein the ownershipof the ShoppingCenter, (ii) a changein the improvementsthereon, and/or (iii) leviedor assessedonmachineryor equipmentprovidedby Lessorto Lesseepursuantto thisLease.
In calculatingRealPropertyTaxesfor anycalendaryear, theRealPropertyTaxesfor anyreal estatetax yearshallbeincludedin the calculationof RealPropertyTaxesfor suchcalendaryearbaseduponthenumberof dayswhichsuchcalendaryearandtaxyearhavein common.
10. 2 Payment of Taxes. Exceptas otherwiseprovidedin Paragraph10.3, Lessorshall pay the Real PropertyTaxes applicable to the Shopping Center,
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10. 3 Additional Improvements. NotwithstandingParagraph10.2 hereof, Lesseeshall, however, pay to Lessor at the time GammenFe a OperatingExpensesarepa bie ; indexParagraph4. 2, the entiretyof anyincreasein RealPropertyTaxesif assessedsolelyby reasonof Alterations, TradeFixturesor Utility InstallationsplaceduponthePremisesby Lesseeor atLessee's request, orbyreasonof anyalterationsorimprovementstothePremisesmadebyLessorsubsequenttotheexecutionofthisLeasebythe Parties.
10. 4 joint Assessment. ifthe Building is notseparatelyassessed, RealPeopertyTaxesallaeatedto theBuildine shallhe nm_.,T.tcm« a prrrsa.. vrt..:'.,. n.. rm. spa. m. o.f. m+a an,,. lfLVn.+ a. 1s+ Z. aa.. 4sRr.. estlA' E J'JAar. elsifl. erf lRRTrrllfaTSlRlnn lf' ReeEelR!!
10. 5 Personal Property Taxes. Lesseeshall pay prior to delinquencyall taxesassessedagainstand levieduponLessee OwnedAlterationsandUtility Installations, TradeFixtures, furnishings, equipmentandall personalpropertyof Lesseecontainedin thePremises. Whenpossible, Lesseeshallcauseits LesseeOwnedAlterationsandUtility Installations, TradeFixtures, furnishings, equipmentandall otherpersonalpropertyto be assessedandbilled separatelyfrom therealpropertyof Lessor. If anyof Lessee's said propertyshallbeassessedwithLessor'srealproperty, LesseeshallpayLessorthetaxesattributableto Lessee'spropertywithin10 daysafterreceiptof awrittenstatementsettingforththetaxesapplicableto Lessee'sproperty. 13 it. Utilities and Services. Lesseeshallpayfor all water, gas, heat, light, power, telephone, trash -disposalandotherutilities and servicessupplied to the Premises, together with any taxesthereon. utilities and ^^ se-'^^^ _. e •^ r
if atanytimeinLessor'ssolejudgment, LessordeterminesthatLesseeisusingadisproportionateamountof water, electricityorother commonlymeteredutilities, or that Lesseeis generatingsuchalargevolume of trashasto requireanincreasein the size of the trash receptacleand/oranincreaseinthenumberoftimespermonththatit isemptied, thenLessormayincreaseLessee'sBaseRentbyall amountequaltosuchincreasedcosts. ThereshallbenoabatementofRentandLessorshallnotbeliableinanyrespectwhatsoeverfor the inadequacy, stoppage, interruptionor discontinuanceof any utility or servicedueto riot, strike, labordispute, breakdown, accident, repairor othercausebeyondLessor'sreasonablecontrolor in cooperationwith governmentalrequestor directions.
12. Assignment and Subletting.
12. 1 Lessor' s Consent Required.
a)
Lesseeshallnotvoluntarilyor by operationof lawassign, transfer, mortgageor encumber (collectively, assignor assignment"), licenseor subletall or anypartof Lessee's interestin thisLeaseor in thePremiseswithoutLessor'spriorwritten consent. b) UnlessLesseeis a corporationandits stockispublicly tradedona nationalstockexchange, achangein the controlofLesseeshallconstituteanassignmentrequiringconsent. Thetransfer, onacumulativebasis, of25% ormoreofthevoting control of Lesseeshall constitutea changein control for this purpose. c)
TheinvolvementofLesseeoritsassetsinanytransaction, orseriesof transactionsbywayofmerger, sale, acquisition, financing, transfer, leveragedbuy-out or otherwise, which resultsor will result in a reduction of the Net Worth of Lessee by an amountgreaterthan 25% of suchNet Worth as it was representedat the time of the execution of this Leaseor at the time of the mostrecentassignmenttowhichLessorhasconsented, orasit existsimmediatelypriortosaidtransactionortransactionsconstituting suchreduction, whicheverwasor is greater, shallbe consideredanassignmentof thisLeaseto whichLessormaywithholdits consent. "Net Worthof Lessee" shallmeanthenetworthof Lessee (includinganyguarantors) establishedundergenerallyaccepted accounting principles.
d) An assignmentor sublettingwithoutconsentshall, atLessor's option, beaDefaultcurableafternoticeper Paragraph13.1(c), or a non -curableBreachwithout the necessityof any notice and graceperiod. If Lessorelectsto treatsuch unapprovedassignmentor sublettingasanon -curableBreach, Lessormay either: (i) terminatethis Lease, or (ii) upon30 dayswritten notice, increasethe monthly BaseRent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, all fixed andnon -fixed rentaladjustmentsscheduledduringtheremainderof theLeasetermshallbeincreasedto 110% of the scheduled adjusted rent.
e) Lessee's remedyfor anybreachof Paragraph12.1 by Lessorshallbe limitedto compensatorydamagesand/ or injunctive relief. 0 Lessormayreasonablywithholdconsentto a proposedassignmentor sublettingif Lesseeis in Defaultatthe time consent is requested. g) Notwithstandingtheforegoing, allowingademinimisportionof thePremises, i.e. 20 squarefeetor less, to beusedbyathirdpartyvendorinconnectionwiththeinstallationofavendingmachineorpayphoneshallriotconstituteasubletting. 12. 2 Terms and ConditionsApplicable to Assignmentand Subletting. a) Regardlessof Lessor's consent, no assignmentor subletting shall: (i) be effective without the express writtenassumptionby suchassigneeorsublesseeof theobligationsof LesseeunderthisLease, (ii) releaseLesseeof anyobligations hereunder, or (iii) altertheliabilityof LesseeforthepaymentofRentorfortheperformanceof anyotherobligationstobeperformed by Lessee.
b) LessormayacceptRentor performanceofLessee'sobligationsfromanypersonotherthanLesseepending approvalor disapprovalof anassignment. Neithera delayin theapprovalor disapprovalof suchassignmentnor theacceptanceof Rent or performance shall constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or Breach. c) Lessor's consentto any assignmentor sublettingshall not constitutea consentto any subsequent assignment or subletting.
d) In the eventof any Defaultor Breachby Lessee, LessormayproceeddirgctlyagainstLessee, any Guarantorsor anyoneelseresponsiblefor the performanceof Lessee's obligationsunderthis Lease, includinganyassigneeor sublessee, withoutfirst exhaustingLessor's remediesagainstanyotherpersonor entityresponsiblethereforeto Lessor, or any security held by Lessor.
e)
Eachrequestfor consentto anassignmentor sublettingshallbein writing, accompaniedby information relevantto Lessor's determinationasto the financialandoperationalresponsibilityandappropriatenessof theproposedassigneeor sublessee, includingbutmotlimitedto theintendeduseand/or requiredmodificationof thePremises, if any, togetherwith afeeof 1,000.00 asconsiderationfor Lessor's consideringandprocessingsaidrequest. Lesseeagreesto provideLessorwith suchotheror additionalinformationand/or documentationasmaybereasonablyrequested. (SeealsoParagraph35) 14 f) Anyassigneeof, orsublesseeunder, thisLeaseshall, byreasonofacceptingsuchassignment, enteringinto suchsublease, or enteringintopossessionof thePremisesor anyportionthereof, bedeemedto haveassumedandagreedto conform andcomplywitheachandeveryterm, covenant, conditionandobligationhereinto beobservedor performedbyLesseeduringthe termof saidassignmentor sublease, otherthansuchobligationsasarecontraryto or inconsistentwith provisionsof anassignmentor subleaseto which Lessorhasspecificallyconsentedto in writing. g) Lessor's consentto anyassignmentor sublettingshallnottransfertotheassigneeor sublesseeanyOption grantedto theoriginalLesseebythisLeaseunlesssuchtransferisspecificallyconsentedto byLessorinwriting. 12. 3 AdditionalTermsandConditionsApplicableto Subletting. Thefollowingtermsandconditionsshallapplyto any subletting by Lesseeof all or any part of the Premisesand shall be deemedto be included in all subleasesunder this Lease whetheror not expresslyincorporatedtherein:
a) LesseeherebyassignsandtransferstoLessorall of Lessee's interestin all Rentpayableonanysublease, andLessormay collect such Rent and apply sametoward Lessee's obligationsunder this Lease; provided, however, that until a Breach shall occur in theperformanceof Lessee's obligations, Lesseemay collect said Rent. In the event that the amount collected by Lessor exceeds Lessee's then outstandingobligations any suchexcessshall be refundedto Lessee. Lessor shallnot, by reasonof theforegoingor anyassignmentof suchsublease, nor by reasonof thecollectionof Rent, bedeemedliable tothe sublesseefor anyfailure of Lesseeto performandcomply with anyof Lessee's obligationsto suchsublessee. Lessee herebyirrevocablyauthorizesanddirectsanysuchsublessee, upon receiptof awritten noticefrom LessorstatingthataBreach existsin the performanceof Lessee's obligations underthis Lease, to payto Lessorall Rentdueandto becomedueunderthe sublease. Sublesseeshallrely uponanysuchnoticefrom Lessorandshallpay all Rentsto Lessorwithout anyobligationor right to inquireastowhethersuchBreachexists, notwithstandinganyclaimfrom Lesseeto thecontrary. b) In the event of a Breachby Lessee, Lessormay, at its option, requiresublesseeto attornto Lessor, in which event Lessor shall undertake the obligations of the sublessor under such subleasefrom the time of the exercise of said option to the expirationof suchsublease; provided, however, Lessorshallnotbeliablefor anyprepaidrentsor securitydepositpaidby such sublesseeto such sublessoror for any prior Defaults or Breachesof suchsublessor. c) Any matter requiring the consentof the sublessorundera subleaseshall also requirethe consentof Lessor. d) No sublesseeshallfurtherassignor subletall or anypartof thePremiseswithoutLessor's prior writtenconsent.
U. Default; Breach; Remedies.
13A Default; Breach. A " Default" is definedasafailureby theLesseeto complywith or performanyof theterms, covenants, conditions or Rules and Regulations under this Lease. A " Breach" is defined as the occurrenceof one or more of the followingDefaults, andthefailureof LesseetocuresuchDefaultwithinanyapplicablegraceperiod: a) The vacating or abandonment of the Premises. Lessee shall be deemed to have vacated the Premises if Lesseeceasesto continuouslyoperateits businessin thePremisesfor aperiodof 5 consecutivedays. b) Thefailureof Lesseeto makeanypaymentof Rentor anySecurityDepositrequiredtobemadebyLessee hereunder, whethertoLessororto athirdparty, whendue, toprovidereasonableevidenceof insuranceorsuretybond, orto fulfill any obligationunderthis Leasewhich endangersor threatenslife or property, wheresuchfailurecontinuesfor a periodof 5 days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY
DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR' S RIGHTS, INCLUDING LESSOR' S RIGHT TO RECOVER POSSESSION OF THE PREMISES.
c) The failure of Lesseeto allow Lessor and/or its agentsaccessto the Premisesor the commissionof waste, actor actsconstitutingpublic or privatenuisance, and/or an illegal activity onthe Premisesby Lessee, wheresuchactionscontinuefor a period of 5 daysfollowing written notice to Lessee.
d) The failure by Lesseeto provide ( i) reasonablewritten evidence of compliance with Applicable Requirements, (ii) theservicecontracts, (iii) therescissionof an unauthorizedassignmentor subletting, (iv) anEstoppelCertificate orfinancialstatements, (v) a requestedsubordination, (vi) evidenceconcerninganyguarantyand/orGuarantor, (vii) any documentrequestedtinderParagraph40, (viii) materialdatasafetysheets (MSDS), or (ix) anyotherdocumentationor information whichLessormayreasonablyrequireof, Lesseeunderthetermsofthis Lease, whereanysuchfailurecontinuesforaperiodof 10 daysfollowing written noticeto Lessee.
e)
A Defaultby Lesseeasto theterms, covenants, conditionsor provisionsof this Lease, or of therules adopted under Paragraph2.9 hereof, other than those described in subparagraphs13.1(a), (b), (c) or (d), above, where such Default continuesfor a periodof 30 daysafter written notice; provided, however, that if the natureof Lessee's Default is suchthat morethan 30 daysare reasonablyrequiredfor its cure, then it shall not be deemedto be a Breach if Lesseecommencessuchcure within said 30 clayperiod andthereafterdiligently prosecutessuchcureto completion. f) Theoccurrenceof anyof thefollowing events: (i) themakingof anygeneralarrangementorassignmentfor thebenefitof creditors; (ii) becominga "debtor" asdefinedin 11U.S.C. § 101or anysuccessorstatutethereto (unless, in thecaseof a petitionfiled againstLessee, thesameis dismissedwithin60 days); (iii) theappointmentofatrusteeor receiverto takepossessionof 15 substantiallyall of Lessee'sassetslocatedatthePremisesor of Lessee's interestin thisLease, wherepossessionis notrestoredto Lesseewithin30days; or (iv) theattachment, executionor otherjudicialseizureof substantiallyall of Lessee's assetslocatedatthe Premisesor of Lessee's interestin thisLease, wheresuchseizureis notdischargedwithin30clays; provided, however, in theevent thatanyprovisionof thissubparagraphis contraryto anyapplicablelaw, suchprovisionshall beof no forceor effect, andnot affect thevalidity of theremaining provisions.
g) Thediscoverythatanyfinancialstatementof Lesseeor of anyGuarantorgiventoLessorwasmateriallyfalse. h) If theperformanceof Lessee'sobligationsunderthisLeaseis guaranteed: (i) thedeathof a Guarantor, (ii) theterminationor attemptedterminationof aGuarantor's liability with respectto this Leaseotherthan in accordancewith the express termsof suchguaranty, (iii) aGuarantor'sbecominginsolventorthesubjectof abankruptcyfiling, (iv) aGuarantor'srefusaltohonor the guaranty, or (v) a Guarantor's breachof its guarantyobligation on au anticipatorybasis, and Lessee's failure, within 30 days following written noticeof anysuchevent, to providewritten alternativeassuranceor security, which, whencoupledwith thethen existing resourcesof Lessee, equals or exceedsthe combined financial resourcesof Lesseeand the Guarantors that existed at the time of execution of this Lease.
13. 2 Remedies. If Lesseefails to perform any of its affirmative dutiesor obligations, within 10days after written notice orin caseof anemergency, withoutnotice), Lessormay, atitsoption, performsuchdutyor obligationonLessee'sbehalf, including butnot limitedto theobtainingof reasonablyrequiredbonds, insurancepolicies, or governmentallicenses, permitsor approvals.
Lesseeshallpayto Lessoranamountequalto thecostsandexpensesincurredby Lessorin suchperformanceuponreceiptof an invoicetherefor. In theeventof aBreach, Lessormay, with or withoutfurthernoticeor demand, andwithoutlimitingLessorin the exerciseof anyright or remedywhich Lessormayhaveby reasonof suchBreach:
a) Terminate Lessee's right to possessionof the Premisesby any lawful means, in which casethis Leaseshall terminate andLesseeshall immediately surrenderpossessionto Lessor. In such eventLessor shall beentitled to recover from Lessee:
i) theunpaidRentwhichhadbeenearnedatthetimeof termination; (ii) theworthatthetimeof awardof theamountbywhichthe unpaid Rent which would have been earnedafter termination until the time of award exceedsthe amount of such rental loss that Lesseeprovescouldhavebeenreasonablyavoided; (iii) theworthatthetimeof awardof theamountbywhichthe unpaidRentfor thebalanceofthetermafterthetimeofawardexceedstheamountofsuchrentallossthatLesseeprovescouldbereasonablyavoided; and (iv) anyotheramountnecessarytocompensateLessorforallthedetrimentproximatelycausedbytheLessee'sfailuretoperform itsobligationsunderthisLeaseor whichin theordinarycourseof thingswouldbelikely to resulttherefrom, includingbutnotlimited to the cost of recoveringpossessionof the Premises, expensesof re -letting, includingnecessaryrenovationand alterationof the Premises, reasonableattorneys' fees, andthatportionof anyLeasingcommissionpaid by Lessor in connectionwith this Lease applicableto the unexpiredtermof this Lease. Theworthat thetime of awardof theamountreferredto in provision (iii) of the immediatelyprecedingsentenceshallbecomputedbydiscountingsuchamountatthediscountrateof theFederalReserveBankof the DistrictwithinwhichtinePremisesarelocatedatthetimeofawardplusonepercent. EffortsbyLessortomitigatedamagescausedby Lessee's Breachof this Leaseshall not waiveLessor's right to recoverany damagesto which Lessoris otherwiseentitled. If terminationof this Leaseis obtainedthrough the provisional remedyof unlawful detainer, Lessor shall have the right to recoverin suchproceedinganyunpaidRentanddamagesasarerecoverabletherein, orLessormayreservetherightto recoverall or anypart thereofin aseparatesuit. If anoticeandgraceperiodrequiredunderParagraph13.1wasnotpreviouslygiven, anoticetopayrentor quit, or to performor quitgiventoLesseeundertheunlawfuldetainerstatuteshallalsoconstitutethenoticerequiredby Paragraph
13.1. Insuchcase, theapplicablegraceperiodrequiredbyParagraph13.1andtheunlawfuldetainerstatuteshallrunconcurrently, and thefailureof LesseetocuretheDefaultwithin thegreaterof thetwosuchgraceperiodsshallconstitutebothanunlawfuldetainerand aBreachof thisLeaseentitlingLessortotheremediesprovidedforin thisLeaseand/or bysaidstatute. b) Continue the LeaseandLessee's right to possessionandrecover the Rent asit becomesdue, in which event Lesseemay sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to re -let, and/or the appointment of a receivertoprotecttheLessor'sinterests, shallnotconstituteaterminationof theLessee's righttopossession. c) Pursueanyotherremedynowor hereafteravailableunderthelawsorjudicial decisionsofthestatewherein thePremisesarelocated. Theexpirationorterminationof thisLeaseand/or theterminationof Lessee'srightto possessionshallnot relieveLesseefromliabilityunderanyindemnityprovisionsof thisLeaseastomattersoccurringor accruingduringthetermhereof orby reasonof Lessee's occupancyof thePremises.
13. 3 InducementRecapture. Anyagreementforfreeorabatedrentorothercharges, orforthegivingorpayingbyLessorto or for Lesseeof anycashor otherbonus, inducementor considerationfor Lessee's enteringinto this Lease, all of which concessionsare hereinafterreferredto as "Inducement Provisions", shall be deemedconditionedupon Lessee's full and faithful performanceof all of theterms, covenantsandconditionsof thisLease. UponBreachof thisLeasebyLessee, anysuchInducement ProvisionshallautomaticallybedeemeddeletedfromthisLeaseandof nofurtherforceor effect, andanyrent, othercharge, bonus, inducementorconsiderationtheretoforeabated, givenorpaidbyLessorundersuchanInducementProvisionshallbeimmediatelyclue andpayablebyLesseetoLessor, subjecttothetimely, subsequentcureof saidBreachbyLessee. TheacceptancebyLessorof rentor thecureoftheBreachwhichinitiatedtheoperationof thisparagraphshallnotbedeemedawaiverbyLessoroftheprovisionsofthis paragraphunlessspecifically so statedin writing by Lessor atthe time of suchacceptance. 16 13. 4 Late Charges. LesseeherebyacknowledgesthatlatepaymentbyLesseeof Rentwill causeLessorto incurcosts notcontemplatedby thisLease, theexactamountof whichwill beextremelydifficultto ascertain. Suchcostsinclude, butarenot limitedto, processingandaccountingcharges, andlatechargeswhichmaybeimposeduponLessorbyanyLender. Accordingly, if anyRentshallnotbereceivedby Lessorwithin 5 daysaftersuchamountshallbedue, then, withoutanyrequirementfor noticeto Lessee, Lesseeshall immediately pay to Lessora one-time late chargeequal to 10% of each suchoverdueamount or $100, whichever isgreater. ThepartiesherebyagreethatsuchlatechargerepresentsafairandreasonableestimateofthecostsLessorwill incurby reasonof suchlate payment. Acceptanceof suchlatechargeby Lessor shallin no eventconstituteawaiver of Lessee's Default or Breachwithrespectto suchoverdueamount, norpreventtheexerciseof anyoftheotherrightsandremediesgrantedhereunder. In the eventthat a late chargeis payable hereunder, whetheror not collected, for 3 consecutive installments of Base Rent, then notwithstandinganyprovisionofthisLeasetothecontrary, BaseRentshall, atLessor'soption, becomedueandpayablequarterlyinadvance.
13. 5 Interest. Any monetarypaymentdueLessorhereunder, otherthanlatecharges, not receivedby Lessor, whendue shallbearinterestfromthe31stdayafterit wasdue. Theinterest ("Interest") chargedshallbecomputedattherateof 10% perannum butshallnotexceedthemaximumrateallowedby law. Interestis payablein additionto thepotentiallatechargeprovidedfor inParagraph 13. 4.
13. 6 Breach by Lessor.
a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonabletime to perform an obligation required to be performed by Lessor. For purposesof this Paragraph, a reasonabletime shall in noeventbelessthan30daysafterreceiptbyLessor, andanyLenderwhosenameandaddressshallhavebeenfurnishedLesseein writingfor suchpurpose, of writtennoticespecifyingwhereinsuchobligationof Lessorhasnot beenperformed; provided, however, thatif thenatureof Lessor's obligationis suchthatmorethan30daysarereasonablyrequiredfor itsperformance, thenLessorshall not be in breachif performanceis commencedwithin such30 day periodandthereafterdiligently pursuedto completion. Underno circumstancesshall Lesseehavethe right to terminate the Lease asa result of Lessor's breach or alleged breach of the Lease. b) Performance by Lessee on Behalf of Lessor. In the eventthat neither Lessor nor Lender cures said breach within30 daysafterreceiptof saidnotice, or if havingcommencedsaidcuretheydonot diligentlypursueit to completion, then Lesseemay upon 30 daysprior written notice to Lessor, electto cure said breachat Lessee's expense, andshould Lessor fail or refuse to reimburseLesseefor theactual, itemized, third -partycostof suchcurewithin 30daysfollowingLessor's receiptof Lessee's itemizedinvoicefor same, LesseemayoffsetfromBaseRenttheactualandreasonablecosttoperformsuchcure, providedhowever, thatsuchoffsetshallnotexceedanamountequalto thegreaterof onemonth'sBaseRentor theSecurityDeposit, reservingLessee's right to reimbursement from Lessor for any such expensein excessof such offset.
14. Condemnation. If thePremisesor anyportionthereofaretakenunderthepowerof eminentdomainor soldunderthethreat of the exerciseof saidpower (collectively "Condemnation"), this Leaseshallterminateasto the part takenasof thedatethe condemningauthoritytakestitle or possession, whicheverfirstoccurs. If morethan10% of theBoorareaof thePremisesis takenby Condemnation, Lesseemay, at Lessee's option, to beexercisedin writing within 20 daysafterLessorshallhavegivenLesseewritten noticeof suchtaking (or in theabsenceof suchnotice, within20daysafterthecondemningauthorityshallhavetakenpossession) terminate this Leaseas of the date the condemningauthority takes such possession. If Lesseedoes not terminate this Leasein accordancewiththeforegoing, thisLeaseshallremaininfull forceandeffectasto theportionof thePremisesremaining, exceptthat theBaseRentshallbe reducedin proportionto the reductionRentableAreaof thePremisescausedby suchCondemnation.
Condemnationawardsand/or paymentsshall be the property of Lessor, whethersuch awardshall be madeas compensationfor diminutionin valueof theleasehold, thevalueof theparttaken, or for severancedamages; provided, however, thatLesseeshallbe entitledto anycompensationpaidby thecondemnerfor Lessee'srelocationexpenses, lossof businessgoodwilland/or TradeFixtures, withoutregardto whetheror notthisLeaseis terminatedpursuanttotheprovisionsof thisParagraph. All AlterationsandUtility Installationsmadeto thePremisesbyLessee, for purposesof Condemnationonly, shallbeconsideredthepropertyof theLesseeand Lesseeshallbeentitledtoanyandallcompensationwhichispayabletherefor. In theeventthatthisLeaseisnotterminatedbyreason of the Condemnation, Lessorshall repairany dmnageto the Premisescausedby suchCondemnationto the extentof the CondemnationAwardactuallyreceivedbyLessor, if any.
15. Brokerage.
15. 1 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the otherthatit hashadnodealingswith anyperson, firm, brokeror finder (otherthantheBrokers, if any) in connectionwith thisLease, andthatno oneotherthansaidnamedBrokers is entitledto anycommissionor finder's fee in connectionherewith. LesseeandLessor doeachherebyagreeto indemnify, protect, defendandholdtheotherharmlessfromandagainstliabilityfor compensationor charges whichmaybe claimedby anysuchunnamedbroker, finderor othersimilarpartyby reasonof anydealingsor actionsof the indemnifyingParty, includinganycosts, expenses, attorneys' feesreasonablyincurredwith respectthereto.
16. Estoppel Certificates.
17 a) Lessee (as "RespondingParty") shallwithin 10daysafterwrittennoticefrom Lessor (the "RequestingParty") execute, acknowledgeanddelivertotheRequestingPartyanestoppelstatementor certificatein writingin theformdesignatedby Lessor (or Lessor's Lenderor purchaser), plus suchadditionalinformation, confirmationand/or statementsasmay be reasonably requestedby the RequestingParty.
b) If the RespondingParty shall fail to executeor deliver theEstoppelCertificatewithin such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in Hill force and effect without modification except asmayberepresentedbytheRequestingParty, (ii) therearenouncureddefaultsin theRequestingParty'sperformance, and (iii) not morethanonemonth'srenthasbeenpaidin advance. ProspectivepurchasersandencumbrancesmayrelyupontheRequestingParty's EstoppelCertificate, andtheRespondingPartyshallbeestoppedfrom denyingthetruthof thefactscontainedin saidCertificate. h) addition, Lesseeacknowledgesthat any failure on its part to providesuchanEstoppelCertificatewill exposeLessorto risks and potentiallycauseLessorto incurcostsnot contemplatedby this Lease, the extentof whichwill beextremelydifficult to ascertain.
Accordingly, shouldLesseefail to executeand/or delivera requestedEstoppelCertificatein a timely fashionthemonthlyBaseRent shallbeautomaticallyincreased, withoutanyrequirementfor noticeto Lessee, by anamountequalto 10% of thethenexistingBase Rent or $ 100, whichever is greaterfor remainderof the Lease. The Parties agreethat suchincreasein Base Rent representsfair and reasonablecompensationfor the additionalrisk/coststhatLessorwill incur by reasonof Lessee's failureto providethe Estoppel Certificate. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to providetheEstoppelCertificatenorpreventtheexerciseof anyof theotherrightsandremediesgrantedhereunder. c) If Lessordesiresto finance, refinance, or sell the Premises, or anypartthereof, Lesseeandall Guarantorsshall within 10daysafterwrittennoticefromLessordeliverto anypotentiallenderor purchaserdesignatedby Lessorsuchfinancial statementsasmay be reasonablyrequiredby suchlenderor purchaser, includingbut not limited to Lessee's financialstatementsfor thepast3years. All suchfinancialstatementsshallbereceivedbyLessorandsuchlenderor purchaserin confidenceandshallbeused only for the purposesherein set forth.
17. Definitionof Lessor. The term "Lessor" as usedhereinshallmeanthe owneror ownersatthe time in questionof thefee title tothePremises, or, if thisis a sublease, of theLessee's interestin theprior lease. In the eventof atransferof Lessor's title or interestin thePremisesor thisLease, Lessorshalldeliverto thetransfereeor assignee (in cashor by credit) anyunused SecurityDepositheldbyLessor. Uponsuchtransferor assignmentanddeliveryof theSecurityDeposit, asaforesaid, thepriorLessor shallbe relievedof all liability with respectto theobligationsand/or covenantsunderthis Leasethereafterto be performedby the Lessor. Subjectto theforegoing, theobligationsand/or covenantsin thisLeasetobeperformedbytheLessorshallbebindingonlyupon the Lessor as hereinabove defined.
18. Severability. Theinvalidityof anyprovisionof thisLease, asdeterminedby a courtof competentjurisdiction, shallin no way affect the validity of any other provision hereof.
19. Days. Unlessotherwisespecifically indicatedto the contrary, the word "days" asusedin this Leaseshall meanand refer to calendar days.
20. Limitation on Liability. Theobligationsof LessorunderthisLeaseshallnot constitutepersonalobligationsof Lessor, or its partners, members, directors, officers or shareholders, and Lesseeshall look to the Premises, and to no other assetsof Lessor, for thesatisfactionof anyliability of Lessorwith respectto thisLease, andshallnot seekrecourseagainstLessor's partners, members, directors, officers or shareholders, or any of their personalassetsfor suchsatisfaction.
21. Time of Essence. Timeis of theessencewithrespectto theperformanceof all obligationsto beperformedor observedbythe Parties under this Lease.
22. No Prior or Other Agreements. This Leasecontainsall agreementsbetweenthe Partieswith respectto any matter mentionedherein, andnootherpriororcontemporaneousagreementorunderstandingshallbeeffective.
23. Notices.
23. 1 NoticeRequirements. All noticesrequiredor permittedbythisLeaseor applicablelawshallbein writing andmay be delivered in person (by hmid or by courier) or may be sent by regular, certified or registeredmail or U.S. Postal Service Express Mail, with postageprepaid, or by facsimiletransmission, andshallbedeemedsufficientlygivenif servedin amannerspecifiedin this Paragraph23. TheaddressesnotedadjacenttoaParty's signatureonthisLeaseshallbethatParty's addressfor deliveryor mailingof notices. EitherPartymayby writtennoticeto theotherspecifya differentaddressfor notice, exceptthatuponLessee's taking possessionof the Premises, the Premisesshall constituteLessee's addressfor notice. A copy of all noticesto Lessor shall be concurrentlytransmittedtosuchpartyor partiesatsuchaddressesasLessormayfromtimetotimehereafterdesignatein writing. 18 m
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solediscretion of aparty, the party shall haveno obligation to adhereto a standardof reasonableness. Lessor's actualreasonablecosts and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or responseto, arequestbyLesseeforanyLessorconsent, includingbutnotlimitedto consentsto anassignment, asublettingor the presenceor useof a HazardousSubstance, shallbe paidby Lesseeuponreceiptof all invoiceandsupportingdocumentation therefor. Lessor's consentto anyact, assignmentor sublettingshall not constitutean acknowledgmentthat no Defaultor Breachby Lesseeof this Leaseexists, nor shallsuchconsentbedeemeda waiverof anythen -existingDefaultor Breach, exceptasmaybe otherwisespecificallystatedin writing byLessorat thetimeof suchconsent. Thefailure tospecifyhereinanyparticularconditionto Lessor's consentshall not precludethe imposition by Lessor at the time of consentof such further or other conditionsas arethen reasonablewithreferenceto theparticularmatterfor whichconsentis beinggiven. In theeventthateitherPartydisagreeswith ally determinationmadeby theotherhereunderandreasonablyrequeststhereasonsfor suchdetermination, thedeterminingpartyshall furnishitsreasonsin writingandin reasonabledetailwithin 10businessdaysfollowingsuchrequest.
36. Guarantor.
36. 1 Execution. TheGuarantors, if any, shalleachexecutea guarantyof leasein theformprescribedbyLessor.
36. 2 Default. It shallconstitutea Defaultof theLesseeif anyGuarantorfails or refuses, uponrequestto provide: (a) evidenceof the executionof the guaranty, including the authority of the party signing on Guarantor's behalf to obligate Guarantor, and inthecaseofacorporateGuarantor, acertifiedcopyofaresolutionof itsboardof directorsauthorizingthemakingof suchguaranty, b) currentfinancial statements, (c) anEstoppelCertificate, or (d) written confirmationthattheguarantyis still in effect.
37. Quiet Possession. Subjectto paymentby Lesseeof the Rent and performanceof all of the covenants, conditionsand provisionsoilLessee'spartto beobservedandperformedunderthisLease, Lesseeshallhavequietpossessionandquietenjoymentof the Premises during the term hereof.
38. Options. If Lesseeis grantedanyOption, asdefinedbelow, thenthe following provisionsshall apply.
38. 1 Definition. " Option" shall mean: ( a) the right to extend or reduce the term of or renew this Lease or to extend or reducetheterm of or renewany leasethat Lesseehason other property of Lessor; and (b) the right of first refusal or first offer to lease either the Premisesor other propertyof Lessor;
38. 2 Options PersonalTo Original Lessee. Any Optiongrantedto Lesseein this Leaseis personalto the original Lessee, andcannotbe assignedor exercisedby anyoneotherthansaidoriginal Lesseeandonly while theoriginalLesseeis in full possessionof the Premisesand, if requestedby Lessor, with LesseecertifyingthatLesseehasnointentionof thereafterassigningor subletting.
38. 3 Multiple Options. In the event that Lesseehas any multiple Options to extend or renew this Lease, a later Option cannotbe exercisedunlessthe prior Options have beenvalidly exercised.
38. 4 Effect of Default on Options.
a) Lesseeshallhavenorightto exerciseanOption: (1) duringtheperiodcommencingwiththegivingof any noticeof Defaultandcontinuinguntil saidDefault is cured, (ii) duringthe periodof time anyRentis unpaid (without regardto whethernotice thereof is given Lessee), (iii) during thetime Lesseeis in Breach of this Lease, or (iv) in the eventthat Lesseehasbeen given3 or morenoticesof separateDefault, whetheror not theDefaultsarecured, duringthe Termof theLease. b) TheperiodoftimewithinwhichanOptionmaybeexercisedshallnotbeextendedor enlargedby reasonof Lessee's inability to exerciseanOption becauseof the provisions of Section 38.4(a).
39. Security Measures. Lesseeherebyacknowledgesthat the Rentpayableto Lessorhereunderdoesnot includethe costof guardserviceor othersecuritymeasures, andthatLessorshallhaveno obligationwhatsoeverto providesame. Lesseeassumesall responsibilityfor theprotectionof thePremises, Lessee, its agentsandinviteesandtheir propertyfrom theactsof third parties. While Lessordoesnotassumeanyresponsibilityto provideanysecuritymeasuresor anyliability for failureto providesecuritymeasuresor for any inadequacythereof, Lessor shall have the authority to institute or continue such security measuresas Lessor in its sole discretion deems necessaryor appropriate from time to time, the cost and expensesof which shall be consideredCommon Area Operating Expenses. w
40. Reservations. Lessorreservesthe right: ( i) to grant, without the consentor joinder of Lessee, such easements, rights and dedicationsthatLessordeemsnecessary, (ii) to causetherecordationof parcelmapsandrestrictions, and (ill) to createand/or install newutility raceways, solongassucheasements, rights, dedications, maps, restrictions, andutility racewaysdo not unreasonably interferewith the useof the Premisesby Lessee. Lesseeagreesto signanydocumentsreasonablyrequestedbyLessorto effectuatesuch rights.
41. Building Planning. Lessorshallhavetheright at anytime or times, upongiving Lesseenot lessthan60 daysprior written notice, to provideand furnishLesseewith spaceof comparablevisibility locatedelsewherewithin anyof the buildingswithin the 21 ShoppingCenterandto moveLesseeinto suchnewspace, providedthatthe usableareaof suchnewspaceis not lessthan theusable areaof thePremisesandprovidedthatall ofLessee'sreasonableout-of-pocketmovingexpenses (includingbutnotlimitedtothecost ofmovingLessee'spersonalproperty, thecostof reprintingLessee's stationeryor otherbusinessmaterialswiththenewaddress, and thecosttorelocateandreinstallLesseeimprovementsandLessee'stelecommunicationsandcomputerequipment) shallbepaidbyLessor, and provided further that Lessor shall construct at Lessor's expensesuch improvementsto such new spaceas shall be necessarytoplaceit inaconditionthatissubstantiallycomparabletothePremises. Exceptasprovidedintheimmediatelypreceding sentence, Lessorshallhavenoobligationto improvesuchspaceor payanyotherexpensesincurredby Lesseeasaresultof such relocation. Onsuchrelocation, thetermsandconditionsof thisLeaseshallremainin lull forceandeffect, includingbutnotlimitedto theBaseRentpayablehereunderandLessee's Share (evenif theusableareaof suchrelocatedPremisesis in excessof the usablearea of the Premises), except that the Premisesshall be in such new location. Upon Lessor's request, the Parties shall executean amendmentto thisLeasein formrequiredbyLessorconfirmingtherelocationof thePremisesto suchnewlocation. If thenewspace doesnot meetwith Lessee's approval, which approvalLesseeshallgive or withhold in accordancewith Paragraph35, Lesseeshall havetherighttocancelthisLeasebygivingLessorwrittennoticethereofwithin 15daysof receiptof Lessor'snotificationof itsintent to relocateLessee. Lessee's failure to give suchnoticewithin such 15dayperiodshall bedeemedLessee's approvalof the newspace.
If timelynoticeis givenbyLessee, thenthisLeaseshallterminateunlessLessorrescindsLessor'spriornoticeof itsintenttorelocateLessee within 10 days after Lessor' s receipt of Lessee' s notice of cancellation.
42. Authority; Multiple Parties; Execution.
a)
If eitherPartyheretois acorporation, trust, limitedliabilitycompany, partnership, or similarentity, eachindividual executingthisLeaseonbehalfof suchentityrepresentsandwarrantsthatheorsheisdulyauthorizedtoexecuteanddeliverthisLease onitsbehalf. EachPartyshall, within30daysafterrequest, delivertotheotherPartysatisfactoryevidenceofsuchauthority. b) If thisLeaseisexecutedbymorethanonepersonorentityas "Lessee", eachsuchpersonorentityshallbejointly andseverallyliablehereunder. It is agreedthatanyoneof thenamedLesseesshallbeempoweredtoexecuteanyamendmenttothis Lease, or otherdocumentancillarytheretoandbindall of thenamedLessees, andLessormayrelyonthesameasif allof thenamedLessees had executed such document. c) This Leasemay be executedby the Pattiesin counterparts, eachof which shall be deemedan original and all of which together shall constitute one and the same instrument.
43. Conflict. Anyconflictbetweentheprintedprovisionsof thisLeaseandthetypewrittenor handwrittenprovisionsshallbe controlled by the typewritten or handwritten provisions.
44. Offer. Preparationof thisLeasebyeitherPartyortheiragentandsubmissionof sametotheotherPattyshallnotbedeemed anoffertoleasetotheotherParty. ThisLeaseisnotintendedtobebindinguntilexecutedanddeliveredbyallPartieshereto.
45. Amendments. This Leasemay bemodifiedonly in writing, signedby thePartiesin interestat thetime of themodification.
As longastheydonotmateriallychangeLessee's obligationshereunder, Lesseeagreesto makesuchreasonablenon -monetary modificationsto thisLeaseasmaybereasonablyrequiredby a Lenderin connectionwith theobtainingof normalfinancingor refinancing of the Premises.
46. Arbitration of Disputes. An AddendumrequiringtheArbitrationof all disputesbetweenthePartiesarisingout of thisLease is not attached to this Lease.
47. Accessibility; Americans with Disabilities Act.
a) ThePremises: havenotundergoneaninspectionby a CertifiedAccessSpecialist (CASp). ^P- have -mode ant'
6. a Certified Access Specialist ( Ac \ d '
determined 6 6 II pplieabl. constructionutisp_ ....................... .. r.,.,......,. .. Sri ........... __....._ _._._...._.. ____....... e- r-elated aecessibilitystandiudspufsHantto CaliforniaCivil Code §55.51 et seft. Q havetaijergenean inspectionby a CertifipFl APoP99 Specialist ( CASp) and it was ppee ., ibilitystandardsb) Since compliancewith the Americanswith DisabilitiesAct ( ADA) is dependentupon Lessee's specificuse of thePremises, Lessor makesno warrantyor representationas to whetheror notthePremisescomply with ADAor anysimilarlegislation. In theeventthat Lessee's specificuse of thePremisesand/ or Lessee's Workor improvementsto thePremisesrequires any modifications, alterations or additionsto thePremisesin orderto complywith the AccessibilityLaws, such workshall be performedby Lesseeat Lessee's solecostandexpense. Subject to thetermsof thisLease, Lesseeshall indemnify, defend, hold harmlessand reimburse Lessor from and againstany andall claims, actions, causes of action, damages, demands, liabilities, obligations, losses or expenses ( specificallyincluding, but notlimitedto reasonableattorneys' fees, courtcosts, and expertwitnessfees), proceedings, suits, debts, or anyclaimedindebtednessalleged againstLessor, its agentsand assigns, arising out of or in connectionwith, in wholeor in part, directlyor indirectly (i) anyuseby Lesseeof thePremiseswhich is notin compliancewith the AccessibilityLaws, ( ii) Lessee's 22 N-2021- 177
failuretomaintainthePremisesincompliancewiththeAccessibilityLaws, and/or (iii) Lessee'sWorkorImprovementstothePremiseswhicharenotincompliancewiththeAccessibilityLaws.
48. SoldiersandSailorsCivilReliefAct (SSCRA). Lesseeherebycertifiesthathe/she, individually, oranymemberorofficeroftheLesseeCorporation, Partnership, LLCoranyotherOrganizationisnotcurrentlyanactivememberofanyBranchorintheReserveofanyBranchoftheArmedForcesoftheUnitedStatesofAmerica, and. Furtherwaivesallofhis/her/theirrightstoandunderTheSoldiersandSailorsCivil ReliefAct (SSCRA).
LESSORANDLESSEEHAVECAREFULLYREADANDREVIEWEDTHISLEASEANDEACHTERMANDPROVISIONCONTAINEDHEREIN. ANDBy THEEXECUTIONOFTHISLEASESHOWTHEIRINFORMEDANDVOLUNTARYCONSENTTHERETO. THEPARTIESHEREBYAGREETHAT, ATTHETIMETHISLEASEISEXECUTED, THETERMSOFTHISLEASEARECOMMERCIALLYREASONABLEANDEFFECTUATETHEINTENTANDPURPOSEOFLESSORANDLESSEEWITHRESPECTTOTHEPREMISES.
ThepartiesheretohaveexecutedthisLeaseattheplaceandonthedatesspecifiedabovetheirrespectivesignatures.
LESSOR
Rio Vista Wes
a California T6i
Elm/ R/ l/ t
Name P to : Richard P. Kelter
Title: Member
Address: c/o WREM
3146 Red Hill Ave., Suite 150
Costa Mesa, CA 92626
Telephone: ( 714) 427- 5977
Facsimile: ( 714) 427-5922
Email- kathy@wrem. com
Email:
Federal ID No. 33- 0777028
ATTEST:
aisy Gomez
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attomey
By:IMGtPamara Bogosian
SeniorAssistantCityAttorney
RECOMMENDED FOR APPROVAL:
a entin, Chief of Police
LESSEE
Santa Ana Police Department
A divisionof theCity of SantaAna, amunicipalcorporation Name Printed: Kristine Ridge
Title: City Manager
Address: 20 Civic CenterPlaza, 8thFloor
SantaAna, Ca. 92701
Telephone: (714) 647-5200
Facsimile: )
Email"
Email:
Federal ID No.
CITY OF SANTA ANA
Kristine Ridge
City Manager
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EXHIBIT " E"
MEMORANDUMOFLEASETERMCOMMENCEMENT
ThisFormispreparedbyRiovistaWest, LLC, aCaliforniaLimitedLiabilityCompany ("Lessor") andsubmittedtoCityofSantaAna ("Lessee") perthetermsoftheLeasedatedforPremisesat3750W. McFaddenAvenue, SantaAna, CA92704.
LemshalletdtereonfnnallinformationastrueandcorrectormaketheappropriatenotationswhereLesseedisagreeswiththeinformationsuppliedbyLessor.
Confirmation of Lease Terms.
I. Date of Lease:
2. DateofDeliveryofPremisesbyLessor. 3. LeaseTenn Commencement Date:
4. Dateof Expiration of Initial LeaseTerm:
5. Options to Renew:
6. Date of Minimum Rent Commencement:
7. Dateof Adjustments (CAM) Commencement:
8. Totalrentablesquarefootageof Premises:
9. TotalprepaidMinimum RentandAdjustments:
to. TotalSecurityDeposit:
Lessee Acknowledges:
NIA _
NA
LesseehasinspectedthePremises, includingwithoutlimitationitsphysicalattributes, squarefootage, frontageand configuration, andacceptsthePr i esintheir "AsIs" conditionasdeliveredbyLessor, exceptforthefollowing (if"noexceptions", enter" NONE):_ I AIL LesseeacknowledgesthattheHVACsystem, electrical, plumbingandmechanicalsystemsservicingthePremisesare ingNXN* gorderasoftheLeaseTennCommencementDate, exceptforthefollowing (if "noexceptions", enter "NONE"):
Lesseehasnotreliedonanystatements, promises, inducements, representationsorwarrantiesbyLessornoranyagent, broker, employee, managerorcontractorofLessorinexecutingthisMemorandumofLeaseTermCommencement.
Basedonitsownduediligenceandinspection, LesseeacknowledgesthatthePremisesaresuitablefor Lessee'sintended useandthatLessorisnotobligatednorresponsibleforanyrepairs, improvementsorotherworktobemadetothePremises.
Acknowledgmentof Authority
TheundersignedexecutedthisMemorandumof LeaseTennCommencementonbehalfof LessorandLesseewarrant andrepresentthateachisauthorizedbytheirrespectiveprincipalstoexecutethisdocumentonitsbehalfsothatitscontentsare bindingonthepartieswithoutanyfurtheraction, approval, consentorratificationbyeitherparty.
Lessor"
By: Rio Vista West, LLC,
aCaliforniaLimitedLiabilityCompany
By: Williams Real Estate Management, Inc.
J'
Man agingAgent
By: L / J A( lJ
Audre B. Williams, President
redTamara Bogosian
SeniorAssistantCity Attorney
Lessee"
City of Santa Ana
Its: City Manager
Attest
c
Daisy Gomez
gClerkoftheCouncil
EXHIBIT " F"
FORM OF LESSEE' S ESTOPPEL CEW. FIFICATE
The undersigned, as Lessee, under that certain Shopping CenterRetail Leasedated RIOVISTA WESTLLC, a Californialimited liability company, asLessor, herebycertifiesasfollows:
1. That theundersignedhasenteredinto occupancyof thePremisesdescribedin the Lease•, 20_, made with
2. Thatthe Leaseis in full forceandeffect andhasnot beenassigned, modified, supplementedor amendedin anyway, except as follows:
1 That the Leaserepresentstheentire agreementbetweenthepartiesasto the leasingof the Premises:
4. That the Commencement Date of the Lease is
5. That there is an unexpired term under the Lease of years;
6. That all conditions of the Leaseto be performed. by Lessor and necessaryto the enforceability of the Leasehave been satisfied;
7. That thereareno defaultsby either Lesseeor Lessorthereunder;
8. That no rentshavebeenprepaid, other than asprovided in theLease; and
9. That on this datethereareno existingdefensesor offsetswhich the undersignedhasagainstthe enforcementof the LeasebyLessor.
The undersignedherebyagrees:
1. To disclaim all right, title or interestin thePremisesexcepttherights grantedby theLease; and
2. To notify the holder of any mortgageaffecting the Premisesof any default on the part of Lessorwhich Lessee proposesto cureanddeductfrom rentals, or useasa basisfor cancellationof the Leaseandherebygrantsto any suchholderthe option to curesaid default within a reasonablelength of time. Lesseefurther agreesnot to invoke any of its remediesunderthe Lease during any periodthat any suchholder is proceedingto curesuchdefaultwith duediligence, or is taking stepswith due diligenceto obtainthe legalright to enterthePremisesandcurethedefault. Theundersignedherebyacknowledgesthat is presently the holder of a mortgage affecting the Premises.
EXECUTED this _ day of _ 20
BY: ( Do Not Sio for Form only _
EXHIBIT " G"
RULES ARID REGULATIONS
Lessorherebyestablishesthe following rulesandregulationsfor the safety, careandcleanlinessof (i) the storeareas hereinafterreferredto asthe "demisedpremises") of any Lesseeor Lesseesof the Center (hereinafterreferred to asthe "Lessee"); (ii) the commonarea; and (iii) theCenter in general, or for thepreservationof good order:
A. FOR TIIE STORE AREAS:
1. All floor areasof the demisedpremises (including vestibules, entrances, and air returns), doors, fixtures, windows, andplateglassshallbemaintainedin a clean, safeandgoodcondition.
2. All trash, refuse, andwaste materials shall be stored in adequatecontainersandregularly removed from the demisedpremises. Thesecontainersshallnot bevisible to thegeneralpublic andshallnot constitutea healthor fire hazard, or a nuisanceto anyotherLessee. In theeventthat anyLesseeshallfail to remedysucha healthor fire hazard, or nuisance, within five (5) days after written notice by Lessor, Lessormay remedyand/or correctsuchhealth or fire hazardor nuisanceat the expenseof the Lessee involved.
3. No portion of the demisedpremisesshall beusedfor lodging purposes.
4. Neither sidewalks nor walkways shall be used to display, store, or place any merchandise, equipment or devices, exceptin connectionwith sidewalksalesheld with Lessor's prior written approval. Theroof of thedemisedpremisesshall not be used for the storage of merchandise or equipment.
5. No public telephone, newsstand, shoeshinestand, refreshment, vending or other coin operated machine shall be installed or placed on the sidewalk or walkway area adjacent to the demised premises or on the Common Areas without Lessor'spriorwrittenapprovalin eachinstance.
6. No personor personsshallusethedemisedpremises, or any partthereof, for conductingthereina second- hand store, auction, distress or fire sale or bankruptcy sale, or " going -out -of -business" sale or " lost our lease" sale, without Lessor's prior written consent.
7. No portion of the demisedpremisesshall be used for the storage of any merchandise, materials or other properties, otherthanthosereasonablynecessaryfor theoperationof a Lessee'sbusiness. Lessormay, fromtimeto time, inspectthe demisedpremisesto insurecompliancewith theforegoingprovisions.
8. Except for professionallypreparedsigns, Lesseeshall not black out or otherwiseobstructthe windows of the demisedpremises, without Lessor's prior written consent.
9. If a Lesseeprovides its customers with the use of shopping carts and/or baskets, such Lesseeshall be responsiblefor causingsaid carts and/or basketsto be storedonly in areasdesignatedby Lessor. If suchLesseefails to routinely collect andstoresaidcarts asnecessary (at leasttwice on a daily basis), Lessormay assumethe responsibility of sameandmay bill the Lesseeinvolved on an estimatedmonthly basis for suchservice.
1. All Lesseesand their authorized representativesand invitees shall use any roadway, walkway, or mall includingtheenclosedmall, if any) onlyfor ingressandegressfromthestoresin theCenter. Useof theCommonAreasshallbein anorderlymannerin accordancewith directionalor othersignsor guides. Roadwaysshallnotbeusedata speedin excessof ten (1.0) milesperhourandshallnotbeusedforparkingor stopping, exceptfor theimmediateloadingor unloadingof passengers. Walkways and malls (includingthe enclosedmall, if any) shallbeusedonly for pedestriantravel.
2. All Lesseesand their authorizedrepresentativesand invitees shall not use the parking areasfor anything but parkingmotorvehicles. All motorvehiclesshallbeparkedinanorderlymannerwithin the paintedlines definingthe individualparking places. During peak periodsof businessactivity, Lessor can imposeany andall controlsLessor deemsnecessaryto operatethe parkinglot including, but not limitedto, thelengthof timefor parkinguse.
3. No personshalluseanyutility areaor truck loadingareareservedfor usein conductingbusiness, exceptfor thespecificpurposefor which permissionto usetheseareashasbeengiven.
4. No employeeshall use any areafor motor vehicle parking exceptthe area specifically designatedfor employeeparkingfor theparticularperiodof timetheuseof tobemade. No Lesseeshalldesignatean areafor employeeparking except the areadesignatedin writingby Lessor. 5.
Without the priorwrittenconsentof Lessor, no personshall use any of theCommonAreas Cot ( i) Vending, peddling or solicitingorders for saleor distributingof anymerchandise, device, service, periodical, book, pamphlet, or othermatter; (ii) Exhibitingany non-professionalsign, placard, banner, notice or other writtenmaterialor distributingany circular, booklet, handbill, placard, or othermaterial; (iii) Solicitingmembership in anyorganization, group, or association, or solicitingcontributionsfor anypurposeor parading, patrolling, picketing, demonstrating, or engagingin conductthat mightinterferewith the useof theCommonAreas or bedetrimentalto anyof thebusinessestablishmentsin theCenter; (iv) Usingthe CommonAreas for anypurposewhen noneof thebusinessestablishmentsin theCenterare openfor business; (v) Discardingany paper, glass, or extraneous matter of anykind, exceptin designatedreceptacles; (vi) Usinga sound -makingdevice that is grosslyannoying or unpleasantto thegeneralpublic; or ( vii) Damaging
any sign, light standard, or fixture, landscapingmaterial or otherimprovementor propertywithin the Center.
The
abovelisting of specificprohibitionsis notintendedto beexclusive, but is intendedto indicatethe mariner in whichthe rightto usethe CommonAreas solelyas a meansof accessand conveniencein shoppingat thebusiness establishmentsin theCenteris limitedand controlledby Lessor.
EXHIBIT " H"
Restricted Uses
As of April 18, 2018
1. As a grocery store, food store, market, mini market, conveniencestore, health food storeor gourmet market including the saleof fresh or frozenmeat, fish, poultry, fruits, vegetables, dairy productsor alcoholic beveragesfor off -premisesconsumption.
2. As a Chineserestaurantfor on or off -premisesconsumption.
3. As a storeselling cellular telephones, accessoriesandrelated supplies.
4. As a businessoffering " Financial Services". Financial Servicesmeansstateandnationalbanks, savings banks, creditunions, savingsandloaninstitutions, mortgageandbrokeragecompanies, andany other entities in the financial services business, as well as the operation of ATM' s and financial Drive- thrus.
5. As abusinessoffering moneywiring or transfers, moneyloans, moneyorders, bill paying or related financial servicesincluding checkcashing
6. As a storespecializing in the saleof Vitamins, food supplementsor relatedproducts.
7. As a Jewelry Store.
8. As a.storeselling (a) fresh groundandwhole coffeebeans, (b) express -basedandcoffeebaseddrinks, (c) tea or teabaseddrinks, (d) gourmetbrand -identifiedbrewedcoffee, and (e) blendedbeverages, including without limitation, those containing the following: coffee, espresso.
9. As a store selling ice cream, frozen yogurt, custard, ice milk, sherbets, smoothies, coffee, coffee/ cappuccino flavored ice cream drinks, soda fountain items, operation of a soda fountain, frozen desserts, candy, bakedgoods, confectioneryproducts, food, non-alcoholicbeverages, anditemsbearingthe Baskin -Robbinstrademarks, exceptthat the foregoing shall not limit: ( i) the saleby a market or otherretail storeof prepackagedice cream, prepackagedyogurt, soft drinks, or coffeedrinks (including coldblended coffeedrinks); (ii) thesaleof ice creamandrelatedproductsby a restaurantprimarily for consumptionon premises as a desert.
10. As a store selling " underwear", whether men' s, women' s or children' s.
11. A store selling Halloween costumes.
12. GeneralDentistry Office — there will be no more thantwo dentistsin the shoppingcenter.
13. A businesswhoseprimaryuseis theoperationof anoffice specializingin Oral andMaxillofacialpathology, radiology or surgeryandPeriodontics.
14. A business which has the word " wings" in the name or serves more than 10% of their food items as chicken wings.
EXHIBIT " I"
Santa Ana Police
Addendumto LeasedatedApril 15, 2021betweenRio Vista West, LLC, a California Limited Liability Company ("Lessor") andthe SantaAna PoliceDepartment, a division of the City of SantaAna, amunicipal corporation (" Lessee")
Section 49. Ontion to Renew:
Provided Lessee is not then in default with respect to the Lease to which this OPTION TO RENEW is attachedandhaskept andperformedall of it' s obligationsundersaidLease, Lesseeshallhavetheright and option at any time, at least 180 daysbefore the expiration of saidLeaseto extend the term thereof for two 2) additional term(s) of one (1) year eachfrom the dateof expiration of said Lease, which notice of exercise of optionshallonlybeeffectiveif in writing andsentto theLessorasprovidedin theLeasefor themailing of notices. Provided, however, that Lesseemay not exercisethis right if the Lesseehasreceived three (3) or more notices of default throughout the initial term of this Lease, whether or not those defaults were cured, or at any time when Lesseehasbreachedandnot curedor is in default under this Lease. ShouldLessee breachor defaultunderthis Leaseat anytime aftergiving noticeof extensionandprior to thefirst dayof the extended term, Lessor shall have the right to declare Lessee' s notice void and of no effect, and the term of this Lease shall expire asif notice had not been given.
Such Lease extension shall be upon the identical terms and conditions as set for the in the Lease, except that the rental to be paid by Lesseeshall be increasedas follows:
Option 1 - $2,951.00per month
Option 2 - $3,039.00 per month
The first optionmustbeexercisedin atimely mannerfor the secondoptiontermto bevalid.
Any securitydepositheldby Lessorshallbeincreasedin theratio astherent is increasedin the first year of the optionperiod divided by the rent for the first year of the initial term.
Upon defaultin paymentof the full increasein rental providedfor above, Lessorshall havethe samerights andremediesasupondefault in the rentotherwiseprovided for in theLease.
This OPTION TO RENEW or extendmay be exercisedonly by the original Lesseewhile physically occupying the Premisesan any consentby Lessor to assignmentor subleaseof thePremisesshall not be construedasa waiver of thisprohibition.