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EXHIBIT 10.20
OFFICE LEASE
XXXXXXXX LAND AND IMPROVEMENT COMPANY, INC.
as Landlord,
AND
REMEDY TEMP, INC.
as Tenant
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TABLE OF CONTENTS
Page
1. TERM ........................................................... 1
2. BASIC ANNUAL RENT .............................................. 1
3. ADDITIONAL RENT ................................................ 1
4. SECURITY DEPOSIT ............................................... 2
5. REPAIRS ........................................................ 2
6. IMPROVEMENTS AND ALTERATIONS ................................... 2
7. LIENS .......................................................... 3
8. USE OF PREMISES ................................................ 3
9. UTILITIES ...................................................... 3
10. RULES AND REGULATIONS .......................................... 4
11. TAXES ON TENANT'S PROPERTY ..................................... 4
12. SUBSTITUTED PREMISES ........................................... 5
13. FIRE OR CASUALTY ............................................... 5
14. EMINENT DOMAIN ................................................. 5
15. ASSIGNMENT AND SUBLETTING ...................................... 5
16. ACCESS ......................................................... 6
17. SUBORDINATION; ATTORNMENT; ESTOPPEL CERTIFICATES ............... 6
18. SALE BY LANDLORD ............................................... 7
19. NONLIABILITY AND INDEMNIFICATION OF LANDLORD; INSURANCE ........ 7
20. WAIVER OF SUBROGATION .......................................... 9
21. ATTORNEYS' FEES ................................................ 9
22. WAIVER ......................................................... 9
23. NOTICES ........................................................ 9
24. INSOLVENCY OR BANKRUPTCY ....................................... 9
25. DEFAULT ........................................................ 9
26. HOLD OVER ...................................................... 11
27. CONDITION OF PREMISES .......................................... 11
28 QUIET POSSESSION ............................................... 11
29. DAMAGE TO TENANT'S PROPERTY .................................... 12
30. CONFLICT OF LAWS ............................................... 12
31. COMMON FACILITIES; PARKING ..................................... 12
32. SUCCESSORS AND ASSIGNS ......................................... 12
33. BROKERS ........................................................ 12
34. NAME ........................................................... 12
35. EXAMINATION OF LEASE ........................................... 12
36. INTEREST ON TENANT'S OBLIGATIONS; LATE CHARGE .................. 13
37. TIME ........................................................... 13
38. DEFINED AND MARGINAL HEADINGS .................................. 13
39. PRIOR AGREEMENTS; SEPARABILITY ................................. 13
40. CORPORATE AUTHORITY ............................................ 13
41. NO LIGHT, AIR OR VIEW EASEMENT ................................ 13
42. AMERICANS WITH DISABILITIES OF 1990 ............................ 13
43. HAZARDOUS SUBSTANCES ........................................... 14
44. NEGOTIATED AGREEMENT ........................................... 16
45. MORTGAGEE PROTECTION ........................................... 16
46. ADDENDA ........................................................ 16
EXHIBIT "A-1" INTENTIONALLY OMITTED
EXHIBIT "A-2" INTENTIONALLY OMITTED
EXHIBIT "A-3" INTENTIONALLY OMITTED
EXHIBIT "A-4" INTENTIONALLY OMITTED
EXHIBIT "B" INTENTIONALLY OMITTED
EXHIBIT "C" RULES AND REGULATIONS
EXHIBIT "D" TENANT'S CERTIFICATE
EXHIBIT "E" INTENTIONALLY OMITTED
EXHIBIT "E-1" INTENTIONALLY OMITTED
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OFFICE LEASE
This OFFICE LEASE (the "Lease") is made this _ day of July, 1997, between
Xxxxxxxx Land and Improvement Company, Inc., a California corporation,
hereinafter called "Landlord", and Remedy Temp, Inc., a California corporation,
hereinafter called "Tenant".
LEASE OF PREMISES
Landlord hereby leases to Tenant and Tenant hereby hires from Landlord, subject
to all of the terms and conditions hereinafter set forth, those certain premises
(the "Premises") as set forth in Item 1 of the Basic Lease Provisions. The
Premises consist of that certain office building (the "Building") situated in
the City of San Xxxx Capistrano, County of Orange, State of California. The
Building is currently known as the Remedy Temp Plaza. Said land is also improved
with landscaping, parking facilities and other improvements and appurtenances
(collectively the "Improvements").
BASIC LEASE PROVISIONS
1. Building Name: Remedy Temp Plaza
Floors: 1 and 2
Address: 00000 Xxxxxx Xxxxxxxxxx, Xxx Xxxx Xxxxxxxxxx, XX 00000
2. Intentionally Omitted.
3. Building Expense Percentage: 100%.
4. Initial Basic Annual Rent: $175,000.00 ($13.27 per square foot)
3. Initial Monthly Rental Installments: $14,583.33 ($1.11 per square
foot)
4. Basic Annual Rent Increase(s): None
5. Term Two (2) year(s) and Zero (0) months
6. Commencement Date: The Closing Date of First American Title
Insurance Company Escrow No. N971123G, provided that the Closing
Date occurs on or before September 1, 1997.
7. Security Deposit: $0.00
8. Broker(s): None
9. Permitted Use: General Office Purposes and no other use.
10. Space Plan Approval Date: None
11. Address for Notices:
LANDLORD: TENANT:
XXXXXXXX LAND AND IMPROVEMENT REMEDY TEMP, INC.
COMPANY, INC.
0000 Xxxxxxx Xxxxxx 00000 Xxxxxx Xxxxxxxxxx
Xxxxxx Xxxx, Xxxxxxxxxx 00000 San Juan Xxxxxxxxxx, Xxxxxxxxxx 00000
Attn: X. X. Xxxxxxxx Attn: Xxxxx Xxxxxx
12. All payments under this Lease shall be sent to the first address specified
in Paragraph 13 or such address as Landlord may designate from time to time in
writing.
IN WITNESS WHEREOF, the parties hereto have executed this Office Lease,
consisting of the foregoing provisions and Paragraphs 1 through 45, together
with Exhibits C through E, inclusive, incorporated herein by this reference, as
of the date first above written.
"Landlord" "Tenant"
XXXXXXXX LAND AND IMPROVEMENT REMEDY TEMP, INC., a California
COMPANY, INC., a California corporation corporation
By:[sig] By:
------------------------- -------------------------
Title: President Title:
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Dated: July 14, 1997 Dated:
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TERM
PARAGRAPH 1
(a) The term of this Lease shall be as shown in Item 7 of the Basic Lease
Provisions and shall commence on the Commencement Date as shown in Item 8 of the
Basic Lease Provisions.
(b) Notwithstanding anything contained herein to the contrary, Tenant shall
have the right at any time after the Commencement Date, upon sixty (60) days
written notice and without penalty or additional cost, to terminate the Lease.
BASIC ANNUAL RENT
PARAGRAPH 2
Tenant agrees to pay Basic Annual Rent for the Premises in an amount equal
to the initial sum shown in Item 4 of the Basic Lease Provisions, increased in
the manner referenced in Item 6 of the Basic Lease Provisions. The Basic Annual
Rent shall be payable in advance without deduction or offset and in equal
monthly installments as shown in Item 5 of the Basic Lease Provisions,
commencing on the Commencement Date and continuing on the first day of each
calendar month thereafter. No demand, notice or invoice shall be required for
the payment of Basic Annual Rent. If the term of this Lease commences or ends on
a day other than the first or last day of a calendar month, then the rent for
such partial month shall be prorated in the proportion that the number of days
this Lease is in effect during such partial month bears to the number of days in
that calendar month. Such rent shall be paid at the commencement of such partial
month.
ADDITIONAL RENT
PARAGRAPH 3
(a) Tenant agrees to pay as Additional Rent for the Premises all "Operating
Expenses" (as hereinafter defined) incurred by Landlord in the maintenance,
operation or repair of the Building and the Improvements, except as otherwise
set forth hereafter.
(b) Prior to the commencement of the Lease term and of each calendar year
thereafter, Landlord shall give Tenant a written estimate of the Operating
Expenses. Tenant shall pay such estimated amount to Landlord in equal monthly
installments, in advance. As soon after the end of each calendar year as is
reasonably possible for Landlord, Landlord shall furnish to Tenant a statement
showing in reasonable detail the actual Operating Expenses incurred by Landlord
during such period, and the parties shall within thirty (30) days thereafter
make any payment or allowance necessary to adjust Tenant's estimated payment to
Tenant's actual payment as shown by such annual statement. Any amount due Tenant
shall be credited against installments next coming due under this Paragraph 3
and, if the Lease has expired or earlier terminated, shall be paid directly to
Tenant. Failure to furnish a statement to Tenant shall not waive any amounts due
pursuant to this Paragraph 3.
(c) If at any time during any calendar year of the Lease term the "Property
Taxes" (as hereinafter defined) applicable to the Building and/or the
Improvements, the rates for any insurance, utility or janitorial service to the
Building and/or the Improvements and/or any other items included in Operating
Expenses are increased to a rate(s) or amount(s) in excess of the rate(s) or
amount(s) used in calculating the estimated Operating Expenses for such calendar
year, Tenant's estimated amount of such Operating Expenses shall be increased
for the month in which such increase becomes effective and for succeeding months
as applicable. Upon receipt of notice of such increase in rate or amount,
Landlord shall give Tenant written notice of the amount or estimated amount of
increase, the month in which effective, and Tenant's monthly amount thereof.
Tenant shall pay such increase to Landlord as a part of Tenant's monthly
payments of estimated Operating Expenses as provided in subparagraph (b) above,
commencing with the month in which effective.
(d) The term "Operating Expenses" as used herein shall include all costs of
operation, maintenance and repair of the Building and Improvements as determined
by generally accepted accounting practices consistently applied and shall
include the following costs by way of illustration but not limitation: "Property
Taxes" (as hereinafter defined); general or special assessments; costs and
expenses in contesting the amounts or validity of any Property Tax by
appropriate proceedings; water and sewer charges; insurance premiums; license,
permit and inspection fees; heat; light; power; steam; janitorial and security
services; labor; salaries; fringe benefits; air conditioning; landscaping;
operation, maintenance and repair of all parking facilities; supplies;
materials; equipment; tools; the cost of any capital improvements and capital
replacements made to the Building by Landlord that reduce operating expense or
that are required under any governmental law or regulation not applicable to the
Building or not in effect at the time it was constructed, (such cost to be
amortized over such reasonable period as Landlord shall determine with a return
on capital at the rate of 10% per annum on the unamortized balance or at such
higher rate as may have been paid by Landlord on funds borrowed for the purpose
of constructing such capital improvements); property management costs; costs
incurred to comply with any governmental laws, ordinances, rules or regulations
now or hereinafter enacted, including, without limitation, ADA, Title III, and
ADAAG, as defined in Paragraph 42 herein; and fees or other charges incurred in
conjunction with membership in energy conservation organizations. The term
"Property Taxes" as used herein shall include all real estate taxes or personal
property taxes and other taxes, charges and assessments, unforeseen as well as
foreseen, which are levied with respect to the Building and the Improvements, or
any fixture and
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equipment and other property of Landlord, real or personal, located in the
Building or on the Improvements as of the date hereof and used in connection
with the operation of the Building, the Improvements and the land upon which
they are situated, and any tax, surcharge, assessment, or service or other fee
which shall be levied or collected in addition to or in lieu of real estate or
personal property taxes, other than taxes covered by Paragraph 11. The term
"Property Taxes" as used herein shall also include any taxes on rental reserved
hereunder or on Landlord's business of leasing the Premises, excepting only net
income taxes. Notwithstanding anything to the contrary in the foregoing, the
term "Operating Expenses" as used herein shall specifically exclude such
expenses as (i) depreciation, interest or amortization on mortgages or ground
leases, (ii) costs of capital improvements and capital replacements (except as
provided for in Paragraph 3(d)), and (iii) other costs for which Landlord
receives reimbursement from insurance proceeds or a third party.
(e) Notwithstanding anything to the contrary contained in subparagraph (d)
above, as to each specific category of expense which Tenant either pays directly
to third parties or reimburses directly to Landlord (e.g., separately metered
utilities, separately contracted janitorial service, Property Taxes paid
directly to the taxing authority provided that Landlord receives written
evidence from Tenant that such Property Taxes have been paid by Tenant before
the delinquency date), Tenant's payments with respect thereto shall be excluded
from the determination of "Operating Expenses" for purposes of this Paragraph 3.
(f) The Basic Annual Rent, the Additional Rent, and other amounts required
to be paid by Tenant hereunder, are sometimes collectively referred to as, and
shall constitute, "rent."
SECURITY DEPOSIT
PARAGRAPH 4
Intentionally Omitted.
REPAIRS
PARAGRAPH 5
(a) Subject to the provisions of Paragraph 3(d), Paragraph 13 (Fire or
Casualty) and Paragraph 14 (Eminent Domain), it is intended by the parties
hereto that Landlord have no obligation, in any manner whatsoever, to repair and
maintain the Premises, or the equipment therein, all of which obligations are
intended to be that of Tenant. It is the intention of the parties hereto that
the terms of this Lease govern the respective obligations of the parties hereto
as to maintenance and repair of the Premises, and they expressly waive the
benefit of any statute now or hereafter in effect to the extent it is
inconsistent with the terms of this Lease. Except as provided in Paragraph 13,
there shall be no abatement of rent and no liability of Landlord by reason of
any injury to or interference with Tenant's business arising from the making by
Tenant of any alterations or improvements in or to any portion of the Building
or the Improvements or in or to fixtures, appurtenances and equipment therein or
thereon. Tenant waives the right to make repairs at Landlord's expense under
Section 1942 of the California Civil Code, or under any law, statute or
ordinance now or hereafter in effect.
(b) Subject to the provisions of Paragraph 3(d), Paragraph 5(a), Paragraph
13 (Fire or Casualty) and Paragraph 14 (Eminent Domain), Tenant shall, at its
sole cost and expense, maintain the Premises in a clean, neat and sanitary
condition, and in good order and repair during the term of this Lease including,
but not limited to, all equipment or facilities such as elevators, plumbing,
heating, ventilating, air conditioning, electrical, lighting, fire protection
system, fixtures, walls (interior and exterior), ceilings, floors, windows,
doors, landscaping, parking lots located in, on, or adjacent to the Premises.
Tenant shall do, at its sole cost and expense, all decorating, remodeling,
alteration and painting required by Tenant during the term of the Lease. Upon
termination of this Lease, Tenant shall leave the Premises in a clean, neat and
sanitary condition. Tenant shall leave the Premises in the same condition as
provided to them upon commencement, except for normal wear and tear; provided,
however, that Tenant may, at its option, remove its trade fixtures from the
Premises and, upon such removal, repair any damage occasioned thereby.
IMPROVEMENTS AND ALTERATIONS
PARAGRAPH 6
(a) Tenant shall not make any alterations, additions or improvements
without the prior written consent of Landlord, which consent shall not be
unreasonably withheld or delayed. All such alterations, additions or
improvements (except movable furniture and trade fixtures) shall become the
property of Landlord and shall be surrendered with the Premises, as a part
thereof, at the expiration or earlier termination of the term hereof. The same
shall be made by Tenant at its sole cost and expense. Any contractor or person
making such improvements must first be approved in writing by Landlord, which
approval shall not be unreasonably withheld. Landlord may condition its approval
of any such alterations, additions or improvements upon Tenant providing
Landlord with a bond or other surety in an amount and type satisfactory to
Landlord insuring completion of such alterations, additions or improvements.
Upon any termination of the Lease, Tenant shall, upon demand by Landlord, at
Tenant's sole cost and expense, forthwith remove any alterations, additions or
improvements (except those made prior to the Commencement Date) made by Tenant
and designated by Landlord to be removed, and repair and restore the Premises to
their original condition, reasonable wear and tear excepted.
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(b) Alterations exceeding $5,000 or those which consist of modifications to
electrical, HVAC, exterior walls, corridor walls, windows, fire and safety, and
any other items that could affect the use and safety of the Building, in
general, shall be supervised by Landlord. Tenant shall reimburse Landlord for
such supervision at the rate of 15% of the actual cost of such alterations.
LIENS
PARAGRAPH 7
Tenant shall keep the Premises free from any liens arising out of any work
performed, materials furnished, or obligations incurred by or for Tenant. In the
event that Tenant shall not, within ten (10) days following the imposition of
any such lien, cause the same to be released of record by payment of posting of
a proper bond, Landlord shall have, in addition to all other remedies provided
herein and by law, the right, but not the obligation, to cause the same to be
released by such means as it shall deem proper, including payment of or defense
against the claim giving rise to such lien. All sums paid by Landlord and all
expenses incurred by it, including but not limited to all attorneys' fees and
court costs, in connection therewith shall create automatically an obligation of
Tenant to pay an equivalent amount as additional rent, which additional rent
shall be payable by Tenant on Landlord's demand with interest at the maximum
rate per annum permitted by law until paid.
USE OF PREMISES
PARAGRAPH 8
Tenant shall use the Premises only as set forth in Item 11 of the Basic
Lease Provisions and shall not use or permit the Premises to be used for any
other purpose without the prior written consent of Landlord. Tenant shall not
use or occupy the Premises in violation of law or of the Certificate of
Occupancy issued for the Building, and shall, upon five (5) days' written notice
from Landlord, discontinue any use of the Premises which is declared by any
governmental authority having jurisdiction to be a violation of law or of said
Certificate of Occupancy. Tenant shall obtain, and maintain at its own cost and
expense, throughout the term of the Lease, all permits, licenses and
governmental approvals required for the lawful conduct of Tenant's business on
the Premises. Tenant shall comply with any direction of any governmental
authority having jurisdiction which shall, by reason of the nature of Tenant's
use or occupancy of the Premises, impose any duty upon Tenant or Landlord with
respect to the Premises or with respect to the use or occupancy thereof. Tenant
shall not do or permit to be done anything which will invalidate or increase the
cost of any fire, extended coverage or any other insurance policy covering the
Building and/or property located therein and shall comply with all rules,
orders, regulations and requirements of the Pacific Fire Rating Bureau or any
other organization performing a similar function. Notwithstanding Paragraph 3(d)
or 3(e) hereof, Tenant shall promptly upon demand reimburse Landlord for the
full amount of any additional premium charged for such policy by reason of
Tenant's failure to comply with the provisions of this paragraph, it being
understood that such demand for reimbursement shall not be Landlord's exclusive
remedy. Tenant shall not in any way use or allow the Premises to be used for any
improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause,
maintain, or permit any nuisance in, on or about the Premises. Tenant shall not
commit or suffer to be committed any waste in or upon the Premises. Landlord's
engineer has expressed concern that the loft space in the Premises is not
designed to support the weight of materials which Tenant has stored in such loft
space prior to the Commencement Date, and on the basis of such assessment
Landlord wants Tenant to remove all of its materials form such loft space.
Tenant, however, has used the loft space for the past several years for the
storage of files and phone equipment, and believes on the basis of consultations
with its contractor that the loft space can support, at a minimum, (i) the phone
equipment currently located in the loft space, and (ii) a bank of files located
along one wall of the loft space where a support beam provides greater support
than in other portions of the loft space. Based on the foregoing, the parties
agree that (A) Tenant shall not be required during the term of this Lease to
remove its phone equipment from the loft space, (B) Tenant shall have forty-five
(45) days following the Commencement Date to work in good faith with Landlord's
engineer to determine how to accommodate Tenant's desire to store at least one
bank of files in the loft space and that Landlord's engineer will work in good
faith with Tenant to accomplish the same at no cost to Landlord, and (C) if
despite Tenant's and Landlord's engineer's good faith efforts, an arrangement
cannot be worked out to both Tenant's and Landlord's reasonable satisfaction
with respect to the storage of such files in the loft space, Tenant shall remove
within sixty (60) days following the Commencement Date all materials (excepting
the phone equipment described in clause (A) above) including, but not limited
to, records and files and, thereafter, Tenant shall not use the loft space for
the storage of any such materials during the term of this Lease. Tenant shall
indemnify, defend (with counsel reasonably satisfactory to Landlord) and hold
Landlord and Landlord's Related Parties (as hereinafter defined in Paragraph
19(b)), harmless against any and all claims, losses, costs, damages, expenses or
liabilities arising from any injury or damage to any person or property
whatsoever, when such injury Or damage has been caused in part or in whole by
the presence of the phone equipment and materials, if any, stored in the loft
space in the Premises.
UTILITIES
PARAGRAPH 9
(a) Provided that Tenant is not in default hereunder, Landlord agrees to
furnish or cause to be furnished to the Premises, the utilities and services
described, subject to the conditions and in accordance with the standards set
forth below:
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(i) During normal business hours as reasonably determined by
Tenant, Landlord shall provide automatic elevator facilities.
(ii) During normal business hours as reasonably determined by
Tenant, Landlord shall ventilate the Premises and furnish heat and/or air
conditioning subject to any requirements or standard relating to, among other
things, energy conservation, imposed or established by governmental or
cooperative organizations. The Landlord shall provide manual switches for
over-riding the control devices and allowing full-time, twenty-four (24) hour
operation.
(iii) Landlord shall furnish to the Premises at all times, subject
to interruptions beyond Landlord's control, electric current as required by the
building standard office lighting and receptacles. At all times Tenant's use of
electric current shall never exceed the capacity of the feeders to the Building
or the risers or wiring installation. Tenant shall not install or use or permit
the installation or use of any computer or electronic data processing equipment
in the Premises beyond Tenant's current electrical use as of the date hereof
without the prior written consent of Landlord.
(iv) Landlord shall furnish water for drinking, cleaning and
lavatory purposes only.
(b) Tenant shall be responsible to pay, at its sole cost and expense, for
any utilities and services, including without limitation, air conditioning,
electric current, water, and those other items required to be provided by
Landlord pursuant to Paragraph 9(a) above or elsewhere in this Lease. The
Premises shall be kept clean and in order by Tenant, at its sole cost and
expense, and with no deduction by Tenant of any of the Operating Expenses, and
to the satisfaction of Landlord, and by persons approved by Landlord in writing
or persons employed by Tenant prior to the Commencement Date to perform such
work, and no other persons not approved by Landlord shall be permitted to enter
the Premises for such purposes.
(c) Tenant agrees to cooperate fully at all times with Landlord and to
abide by all regulations and requirements which Landlord may prescribe for the
use of the above utilities and services. Any failure to pay as described above
shall constitute a breach of the obligation to pay rent under this Lease and
shall entitle Landlord to the rights herein granted for such breach.
(d) Landlord shall not be liable for, and Tenant shall not be entitled to,
any abatement or reduction of rent by reason of Landlord's failure to furnish
any of the foregoing when such failure is caused by accident, breakage, repairs,
strikes, lockouts or other labor disturbance or labor dispute of any character,
governmental regulation, moratorium or other governmental action, inability by
exercise of reasonable diligence to obtain electricity, water or fuel, or by any
other cause beyond Landlord's reasonable, sole control, nor shall any such
failure, stoppage or interruption of any such service be construed either as an
eviction of Tenant, or relieve Tenant from the obligation to perform any
covenant or agreement. In the event of any failure, stoppage or interruption
thereof, however, Landlord shall use reasonable diligence to resume service
promptly.
(e) Upon receipt of request from Tenant given at least 24 hours in advance,
Landlord will provide the foregoing utilities to Tenant at such times as such
services are not otherwise available. Tenant agrees to pay Landlord such rates
and charges as Landlord may from time to time establish for such after hours
services inclusive of energy costs, reasonable equipment depreciation and an
administrative fee.
RULES AND REGULATIONS
PARAGRAPH 10
Tenant agrees to abide by all rules and regulations of the Building imposed
by Landlord as set forth in Exhibit "C" attached hereto, as the same may be
reasonably changed from time to time upon reasonable notice to Tenant. These
rules and regulations are imposed for the cleanliness, good appearance, proper
maintenance, and good order and reasonable use of the Premises, and the Building
and as may be necessary for the enjoyment of the Building by Tenant and its
clients, customers and employees. Breach of the rules and regulations shall not
be grounds for termination of the Lease unless Tenant continues to breach the
same after ten (10) days' written notice by Landlord; provided, however, that
any such notice shall be in lieu of, and not in addition to, any notice required
under section 1161, et seq., of the California Code of Civil Procedure.
TAXES IN TENANT'S PROPERTY
PARAGRAPH 11
Tenant shall be liable for and shall pay ten (10) days before delinquency,
all taxes, levies and assessments levied against any personal property or trade
fixtures placed by Tenant in or about the Premises. If any such taxes, levies
and assessments on Tenant's personal property or trade fixtures are levied
against Landlord or Landlord's property or if the assessed value of the Building
is increased by the inclusion therein of a value placed upon such personal
property or trade fixture of Tenant and if Landlord pays the taxes, levies and
assessments based upon such increased assessment, which Landlord shall have the
right to do regardless of validity thereof, but only under proper protest if
requested by Tenant, Tenant shall upon demand repay to Landlord the taxes,
levies and assessments so levied against Landlord, or the proportion of such
taxes, levies and assessments resulting from such increase in the assessment;
provided that, in any such event Tenant shall have the right, in the
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name of Landlord, to bring suit in any court of competent jurisdiction to
recover the amount of any such taxes, levies and assessments so paid under
protest, and any amount so recovered to belong to Tenant.
SUBSTITUTED PREMISES
PARAGRAPH 12
Intentionally Omitted.
FIRE OR CASUALTY
PARAGRAPH 13
In the event the Premises, or access to them, are wholly or partially
destroyed by fire or other casualty covered by the form of fire and extended
coverage insurance required to be maintained by Landlord hereunder, Landlord
shall rebuild, repair or restore the Premises and access thereto to
substantially the same condition as when the same were furnished to Tenant,
excluding any improvements installed by Tenant, and the Lease shall continue in
full force and effect. In the event, however, that the Building is so damaged or
destroyed to the extent of more than one-third of its replacement cost and less
than two (2) years remain in the term of the Lease, or the Building is damaged
to the extent of ten percent (10%) of its replacement cost or more by a casualty
not covered by Landlord's fire and extended coverage insurance policy, Landlord
may elect to terminate this Lease in lieu of so restoring the Premises. Landlord
shall in no event be obligated to make any repairs or replacement of any items
other than those items installed by or at the expense of Landlord. If the
Premises are rendered totally untenantable, rent shall proportionately xxxxx
during the period of reconstruction. Tenant agrees that the provisions of this
Lease shall govern any damage or destruction and shall accordingly supersede any
contrary statute or rule of law.
EMINENT DOMAIN
PARAGRAPH 14
In case the whole of the Premises, or such part thereof as shall
substantially interfere with Tenant's use and occupancy thereof, shall be taken
by any lawful power or authority by exercise of the right of eminent domain, or
sold to prevent such taking, either Tenant or Landlord may terminate this Lease
effective as of the date possession is required to be surrendered to said
authority. Except as provided herein, Tenant shall not because of such taking
assert any claim against Landlord or the taking authority for any compensation
because of such taking, and Landlord shall be entitled to receive the entire
amount of any award without deduction for any estate or interest of Tenant. In
such event, Landlord shall, to the extent of the award paid to Landlord,
promptly proceed to restore the Premises to substantially their condition prior
to such partial taking, and a proportionate allowance shall be made to Tenant
for the rent corresponding to the time during which, and to the part of the
Premise of which, Tenant shall be so deprived on account of such taking and
restoration.
Nothing contained in this Paragraph 14 shall be deemed to give Landlord
any interest in, or prevent Tenant from seeking any award against the taking
authority for, the taking of personal property and fixtures belonging to Tenant
or for relocation or business interruption expenses recoverable from the taking
authority.
ASSIGNMENT AND SUBLETTING
PARAGRAPH 15
(a) Tenant shall not voluntarily or involuntarily assign, sublet, mortgage
or otherwise encumber all or any portion of its interest in this Lease or in the
Premises without obtaining the prior written consent of Landlord, which consent
may be withheld at Landlord's sole and absolute discretion, and any such
attempted assignment, subletting, mortgage or other encumbrance without such
consent shall be null and void and of no effect. Notwithstanding anything to the
contrary in the foregoing, any assignment or subletting to an affiliate of
Tenant shall not require Landlord's consent.
(b) No permitted assignment, subletting, mortgage or other encumbrance of
Tenant's interest in this Lease shall relieve Tenant of its obligation to pay
the rent and to perform all of the other obligations to be performed by Tenant
hereunder. The acceptance of rent by Landlord from any other person shall not be
deemed to be a waiver by Landlord of any provision of this Lease or be a consent
to any subletting, assignment, mortgage or other encumbrance. Consent to one
sublease, assignment, mortgage or other encumbrance shall not be deemed to
constitute consent to any subsequent attempted subletting, assignment, mortgage
or other encumbrance.
(c) If Tenant desires at any time to assign this Lease or to sublet the
Premises or any portion thereof other than to an affiliate, it shall first
notify Landlord of its desire to do so and shall submit in writing to Landlord
(i) the name of the proposed subtenant or assignee; (ii) the nature of the
proposed subtenant's or assignee's business to be carried on in the Premises;
(iii) the terms and provisions of the proposed sublease or assignment; and (iv)
such financial information as Landlord may reasonable request concerning the
proposed subtenant or assignee.
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(d) At any time within thirty (30) days after Landlord's receipt of the
information specified in subparagraph (c) above, Landlord may by written notice
to Tenant elect (i) to sublease the Premises or the portion thereof so proposed
to be subleased by Tenant, or to take an assignment of Tenant's leasehold estate
hereunder, or such part thereof as shall be specified in said notice, on the
same terms stated in this Lease and in turn sublease or assign to the proposed
subtenant or assignee on the same terms as those offered by Tenant to the
proposed subtenant or assignee, as the case may be; or (ii) to terminate this
Lease to the portion (including all) of the Premises so proposed to be subleased
or assigned, with a proportionate abatement in the rent payable hereunder;
provided, however, that if the proposed sublease will cover less than one-half
(1/2) of the area of the Premises covered by this Lease and will have a term of
less than two years and will terminate more than two years prior to the
expiration date of this Lease, Landlord shall not be entitled to exercise option
(ii) above, but may exercise option (i). If Landlord does not exercise any
option set forth in this subparagraph (d) within said thirty (30) day period,
Tenant may thereafter within ninety (90).days after the expiration of said
thirty (30) day period enter into a valid assignment or sublease of the Premises
or portion thereof, upon the terms and conditions set forth in the information
furnished by Tenant to Landlord pursuant to subparagraph (c) above, subject,
however, in each instance, to Landlord's consent, which shall not be
unreasonably withheld as set forth in subparagraph (a) above.
(e) The voluntary or other surrender of this Lease by Tenant or a mutual
cancellation hereof shall not work a merger, and shall at the option of
Landlord, terminate all or any existing subleases or subtenancies or shall
operate as an assignment to Landlord of such subleases or subtenancies. If
Tenant is a corporation which, under the then current guidelines published by
the Commissioner of Corporations of the State of California, is not deemed a
public corporation, or is an unincorporated association, limited liability
company or partnership, the transfer, assignment or hypothecation of any stock
or interest in such corporation, association, limited liability company or
partnership in the aggregate in excess of twenty-five percent (25%) shall be
deemed an assignment within the meaning and provisions of this Paragraph 15.
Tenant agrees to reimburse Landlord for Landlord's reasonable costs and
attorneys' fees incurred in conjunction with the processing and documentation of
any such requested assignment, subletting, transfer, change or ownership or
hypothecation of this Lease or Tenant's interest in and to the Premises.
ACCESS
PARAGRAPH 16
Landlord reserves and shall at any time and all times have the right to
enter the Premises to inspect same, to supply any service to be provided by
Landlord to Tenant hereunder, to submit said Premises to prospective purchasers
or tenants, to post notices of nonresponsibility, to alter, improve or repair
the Premises or any other portion of the Building, all without being deemed
guilty of an eviction of Tenant and without abatement of rent, and may for that
purpose erect scaffolding and other necessary structures where reasonably
required by the character of the work to be performed, provided that the
business of Tenant shall not be materially interfered with. Tenant hereby waives
any claim for damages for any injury or inconvenience to or interference with
Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and
any other loss occasioned thereby, for each of the aforesaid purposes, except to
the extent the same are caused by the gross negligence or willful misconduct of
Landlord or its employees, contractors or agents. Landlord shall at all times
have and retain a key with which to unlock all of the doors in, upon and about
the Premises, excluding Tenant's vaults and safes, and Landlord shall have the
right to use any and all means which Landlord may deem proper to open said doors
in an emergency in order to obtain entry to the Premises, and any entry to the
Premises obtained by Landlord by any of said means shall not be construed or
deemed to be a forcible or unlawful entry into, or a detainer of the Premises,
or any eviction of Tenant from the Premises or any portion thereof. No provision
of the Lease shall be construed as obligating Landlord to perform any repairs,
alterations or decoration except as expressly agreed herein or otherwise agreed
to by Landlord in writing.
SUBORDINATION, ATTORNMENT: ESTOPPEL CERTIFICATES
PARAGRAPH 17
(a) This Lease is junior, subject, and subordinate to all mortgages, deeds
of trust, and other security instruments of any kind now covering the Building
or any portion thereof. Landlord reserves the right to place liens or
encumbrances on the Building and/or the Improvements, or any part thereof or
interest therein superior in lien and effect to this Lease. This Lease, at the
option of Landlord, shall be subject and subordinate to any and all such liens
or encumbrances now or hereafter imposed by Landlord without the necessity of
the execution and delivery of any further instruments on the part of Tenant to
effectuate such subordination. Notwithstanding the foregoing, Tenant covenants
and agrees to execute and deliver upon demand such further instruments
evidencing such subordination of this Lease as may be requested by Landlord. If
Tenant fails to execute such further instruments within ten (10) business days
after demand, Landlord shall execute such documents on behalf of Tenant as
Tenant's attomey-in-fact. Tenant does hereby make, constitute and irrevocably
appoint Landlord as Tenant's attomey-in-fact and in Tenant's name, place and
stead, to execute such instruments in accordance with this subparagraph. In
addition, Tenant's failure to execute such further instruments within ten (10)
business days after demand shall constitute a material breach of this Lease.
Notwithstanding such subordination, Tenant's right to quiet possession of the
Premises shall not be disturbed so long as Tenant shall pay the rent and observe
and perform all of the provisions of this Lease to be observed and performed by
Tenant and, upon Tenant's request, shall receive a non-disturbance agreement
reasonably satisfactory to Tenant from such superior lienholder which provides
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that Tenant's occupancy and possession of the Premises and this Lease will not
be disturbed so long as Tenant is not in breach, unless this Lease is terminated
pursuant to specific provisions relating thereto contained herein. In the event
of the foreclosure of any such lien or encumbrance, Tenant shall attorn to the
then owner who owns or acquires title to the Building and will recognize such
owner as Landlord under this Lease. Tenant hereby waives any right to terminate
this Lease because of any such foreclosure, provided that Tenant shall have
received or shall receive a non-disturbance agreement reasonably satisfactory to
Tenant from such then owner which provides that Tenant's occupancy and
possession of the Premises and this Lease will not be disturbed so long as
Tenant is not in breach hereof.
(b) Tenant shall at any time and from time to time upon not less than ten
(10) days prior notice by Landlord, execute, acknowledge and deliver to Landlord
a statement in writing certifying that this Lease is unmodified and in full
force and effect (or if there have been modification, that the same is in full
force and effect as modified and stating the modifications), and the dates to
which the Basic Annual Rent, additional rent and other charges have been paid
in advance, if any, and stating whether or not to the best knowledge of Tenant,
Landlord is in default in the performance of any covenant, agreement or
condition contained in this Lease and, if so, specifying each such default of
which Tenant may have knowledge. Any such statement delivered pursuant to this
Paragraph may be relied upon by any prospective purchaser of the fee of the
Building or any mortgagee, ground lessor or other like encumbrances thereof or
any assignee of any such encumbrance upon the Building.
(c) In addition, and not in lieu of the foregoing, within ten (10) days
after the Commencement Date, Tenant shall execute and deliver to Landlord a
certificate substantially in the form of Exhibit "D" attached hereto, indicating
thereon any exceptions thereto which Tenant claims to exist at that time.
Failure of Tenant to execute and deliver such certificate within said time
period shall constitute an acceptance of the Premises and the acknowledgment and
agreement by Tenant that the statements included in Exhibit "D" are true and
correct without exception.
SALE BY LANDLORD
PARAGRAPH 18
In the event of a sale or conveyance by Landlord of the Building, the same
shall operate to release Landlord from any and all liability under this Lease
thereafter accruing. Tenant's right to quiet possession of the Premises shall
not be disturbed so long as Tenant shall pay the rent and observe and perform
all of the provisions of this Lease to be observed and performed by Tenant,
unless this Lease is terminated pursuant to specific provisions relating thereto
or contained herein. If any security deposit has been made by Tenant, Landlord
may transfer such security deposit to the purchaser, and thereupon Landlord
shall be discharged from any further liability in reference thereto.
NONLIABILITY AND INDEMNIFICATION OF LANDLORD: INSURANCE
PARAGRAPH 19
(a) Landlord's Nonliability. Landlord shall not be liable for injury or
damage which may be sustained by the person, goods, wares, merchandise or
property of Tenant, its employees, invitees or customers or any other person in
or about the Premises caused by or resulting from any peril which may affect the
Premises, including without limitation fire, steam, electricity, gas, water,
rain, which may leak or flow from or into any part of the Premises, or from the
breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures of the same, whether
such damage or injury results from conditions arising upon the Premises or upon
other portions of the Building, or from other sources. Notwithstanding the
foregoing Landlord shall not be relieved of liability for any injury or damage
caused by Landlord's sole negligence.
Neither Landlord nor any partner, trustee, director, officer, employee,
beneficiary, advisor or agent of Landlord, nor any of their respective
successors and assigns, shall be personally liable in any manner or to any
extent under or in connection with this Lease, and Tenant and its successors
and assigns and all other persons claiming by, through or under Tenant shall
look solely to Landlord's interest in the Building for the payment to Tenant of
any claim or for any performance by Landlord. No trustee, director, officer,
employee, beneficiary, advisor or agent of Landlord, nor any of their respective
successors or assigns, shall be personally liable in any manner or to any extent
under or in connection with this Agreement or the Lease. The foregoing
limitation of liability shall be in addition to, and not in limitation of, any
applicable limitation of liability by law, agreement or otherwise.
(b) Indemnification. To the fullest extent permitted by law, Tenant shall
indemnify, defend (with counsel reasonably satisfactory to Landlord) and hold
Landlord and its partners, joint venturers, officers, shareholders, directors,
agents, contractors, licensees, insurers, attorneys and employees (collectively
"Landlord's Related Parties"), harmless against any and all claims, losses,
costs, damages, expenses or liabilities arising from any injury or damage to any
person or property whatsoever, when such injury or damage has been caused in
part or in whole by the act, neglect, fault or omission of Tenant, its partners,
joint venturers, shareholders, directors, agents, contractors, licensees,
employees, assignees, subtenants or invitees (collectively "Tenant's Related
Parties"). This indemnity shall not require payment as a condition precedent to
recovery. In addition the indemnity set forth herein shall apply if any person
not a party to this Lease shall institute another type of action against Tenant
in which Landlord or any of Landlord's Related Parties, involuntarily, and
without cause, shall be made a party defendant. The indemnity contained herein
shall include, but not be limited to, all attorneys' fees, court costs and
consequential damages which are suffered by Landlord or Landlord's Related
Parties in any
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action, arbitration or Proceeding, including but not limited to the prosecution
of any cross-actions or cross complaints on behalf of Landlord or Landlord's
Related Parties.
(c) Tenant's Insurance. Tenant shall, at its sole cost and expense,
maintain in full force and effect at all times during the term of this Lease, at
its own expense, for the protection of Tenant and Landlord, as their interest
may appear, policies of liability insurance issued by a responsible carrier or
carriers acceptable to Landlord which afford the following coverages:
(i) Worker's Compensation: Statutory including Employer's
liability Coverage;
(ii) Comprehensive General liability Insurance, with limits of not
less than $2,000,000 including Blanket, Combined Single limit for collateral
Liability both bodily injury and Broad Form Properly Damage, Personal Injury,
Completed Operations, Products Liability, Fire Damage, Host Liquor Liability (or
Liquor Liability, if applicable), contractual liability for any indemnity
contained in this Lease and Owned and Non-Owned Automobile Coverage;
(iii) All Risk Insurance, including without limitation coverage
against Sprinkler Leakage, in an amount sufficient to cover the full cost of
replacement of all improvements and betterments to the Premises paid for by
Tenant and all Tenant's trade fixtures and other personal property.
(iv) Business Interruption Insurance in an amount equal to the
Basic Annual Rent and the Additional Rent for a period of at least twelve (12)
months commencing with the xxxx of loss. The proceeds of such insurance shall be
paid to Landlord if the Premises are destroyed or rendered inaccessible in whole
or in part by a risk insured against by the policy of insurance required to be
maintained by Tenant under subparagraph (c)(iii).
(d) Certificates of Insurance. Tenant shall deliver to Landlord at least
thirty (30) days prior to the time such insurance is first required to be
carried by Tenant, and thereafter at least thirty (30) days prior to expiration
of each such policy, Certificates of Insurance evidencing the above coverage
with limits not less than those specified above. Such Certificates, with the
exception of Workers' Compensation, shall add, but not name Landlord, and each
of its partners, subsidiaries, affiliates, directors, agents and employees as
additional insureds and shall expressly provide that the interest of same
therein shall not be affected by any breach by Tenant of any policy provision
for which such Certificates evidence coverage. Further, all Certificates shall
expressly provide that no less than thirty (30) days prior written notice shall
be given Landlord in the event of material alteration to or cancellation of the
coverage evidenced by such Certificates. The insurance required by this
Paragraph 19 shall be the primary insurance as respects Landlord (and any other
additional insured designated by Landlord) and not contributory with any other
available insurance. Such Certificate(s) evidencing the liability insurance
coverage required under subparagraph (c)(ii) above shall contain an endorsement
providing, in substance, that "such instance as is afforded hereby for the
benefit of [Landlord] shall be primary and any insurance carried by [Landlord]
shall be excess and not contributory."
(e) Landlord's Insurance. Landlord shall at all times during the term of
this Lease maintain in effect a policy or policies of "All Risk" insurance,
together with sprinkler leakage and rental loss coverage, covering the Building,
including Landlord's interest in all tenant improvements in the Premises. The
cost of such insurance shall be included in the Operating Expenses described in
Paragraph 3.
(f) Intentionally Omitted.
(g) No Co-insurance. If, on account of the failure of Tenant to comply with
the provisions of this Xxxxxxxxx 00, Xxxxxxxx is adjudged a coinsurer by its
insurance carrier, then any loss or damage Landlord shall sustain by reason
thereof shall be borne by Tenant shall be immediately paid by Tenant upon
receipt of a xxxx thereof and evidence of such loss.
(g) Insurance limits. Landlord makes no representation that the limits of
liability specified to be carried by Tenant under the terms of this Lease are
adequate to protect Tenant against Tenant's undertaking under this Paragraph 19.
In the event Tenant believes that any insurance coverage called for under this
Lease is insufficient, Tenant shall provide, at its own expense, such additional
insurance as tenant deems adequate. In no event shall the limits of any coverage
maintained by Tenant pursuant to this Paragraph 19 be considered as limiting
Tenant's liability under this Lease.
(h) Force Majeure. Except for Tenant's obligation to pay rent or any other
amounts required to be paid by Tenant hereunder, any covenants, conditions,
provisions or agreements on the part of Landlord or Tenant to perform any act or
thing for the benefit of the other party shall not be deemed breached if
Landlord or Tenant, as the case may be, is unable to furnish or perform the same
by virtue of a strike, lockout, laws, rules, orders, ordinances, directions,
regulations or requirements of any federal, state, county or municipal
authority, labor trouble or any other cause whatsoever beyond Landlord's or
Tenant's control, nor shall Tenant's rent be abated by reason of such inability
on the part of Landlord.
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WAIVER OF SUBROGATION
PARAGRAPH 20
Landlord and Tenant each hereby waive any and all rights or recovery
against the other, or against any other tenant or occupant of the Building or
against the officers, employees, agents, representatives, customers and business
visitors of such other party or of such other tenant or occupant of the
Building, for loss of or damage to such waiving party or its property or the
property of others under its control, arising from any cause insured against
under any policy of insurance required to be carried by such waiving party
pursuant to the provisions of this Lease (or any other policy of insurance
carried by such waiving party in lieu thereof) at the time of such loss or
damage. The foregoing waiver shall be effective whether or not a waiving party
shall actually obtain and maintain the insurance which such waiving party is
required to obtain and maintain pursuant to this Lease (or any substitute
therefor). Landlord and Tenant shall, upon obtaining the policies of insurance
which they are required to maintain under this Lease, give notice to their
respective insurance carrier(s) that the foregoing mutual waiver of subrogation
is contained in this Lease.
ATTORNEYS'FEES
PARAGRAPH 21
In the event of any legal action or proceeding brought by either party
against the other arising out of this Lease, the prevailing party shall be
entitled to recover reasonable attorneys' fees and costs incurred in such action
and such amount shall be included in any judgment rendered in such action or
proceeding. In addition, in the event Landlord incurs attorneys' fees caused by
the breach of any provision of this Lease by Tenant, Landlord shall be entitled
to receive from Tenant, as additional rent due upon written notice from
Landlord, any sum so expended, whether or not a legal action or proceeding is
filed or whether or not such legal action or proceeding is prosecuted to
judgment.
WAIVER
PARAGRAPH 22
No waiver by Landlord of any provision of this Lease or of any breach by
Tenant hereunder shall be deemed to be a waiver of any other provision hereof,
or of any subsequent breach by Tenant of the same or any other provision.
Landlord's consent to or approval of any act by Tenant requiring Landlord's
consent or approval shall not be deemed to render unnecessary the obtaining of
Landlord's consent to or approval of any subsequent act of Tenant. No act or
thing done by Landlord or Landlord's agents during the term of this Lease shall
be deemed an acceptance of a surrender of the Premises, unless done in writing
signed by Landlord. The delivery of the keys to any employee or agent of
Landlord shall not operate as a termination of the Lease or a surrender of the
Premises, unless deemed so by Landlord. The acceptance of rent by Landlord
following a breach of this Lease shall not constitute a waiver by Landlord of
such breach or any other breach unless such waiver is expressly stated in
writing signed by Landlord.
NOTICES
PARAGRAPH 23
All notices which Landlord or Tenant may be required, or may desire, to
serve on the other, may be served by personal or courier service reliable
overnight courier service or as an alternative to personal or courier service,
by mailing the same by registered or certified mail, postage prepaid, addressed
as set forth in Item 13 of the Basic Lease Provisions, or addressed to such
other address or addresses as either Landlord or Tenant may from time to time
designate to the other in writing. All notices shall be deemed effective upon
receipt. if personally delivered, notices shall be deemed received at the time
of delivery. If any notice is sent by mail, the same shall be deemed fully
delivered and received seventy-two (72) hours after mailing as provided above.
INSOLVENCY OR BANKRUPTCY
PARAGRAPH 24
In no event shall this Lease be assigned or assignable by operation of law
and in no event shall this Lease be an asset of Tenant in any receivership,
bankruptcy, insolvency, or reorganization proceeding.
DEFAULT
PARAGRAPH 25
(a) The occurrence of any of the following shall constitute a material
default and breach of this Lease by Tenant:
(i) Any failure by Tenant to pay the rent or to make any other
payment required to be made by Tenant hereunder when due, if such failure
continues for three (3) business days after notice has been
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received by Tenant that such amount is past due; provided, however, that any
such notice shall be in lieu of and not in addition to, any notice required
under Section 1161, et seq., of the California Code of Civil Procedure.;
(ii) The abandonment or vacation of the Premises by Tenant;
(iii) Any failure by Tenant to observe and perform any other
provision of this Lease to be observed or performed by Tenant, where such
failure continues for fifteen (15) days (except where a different period of time
is specified in this Lease) after written notice by Landlord to Tenant;
provided, however, that any such notice shall be in lieu of and not in addition
to, any notice required under Section 1161, et seq., of the California Code of
Civil Procedure. If the nature of such default is such that the same cannot
reasonably be cured within such fifteen-day period, Tenant shall not be deemed
to be in default if Tenant shall within such period commence such cure and
thereafter diligently prosecute the same to completion;
(iv) Tenant makes or had made or furnished or has furnished any
warranty, representation or statement to Landlord in connection with this Lease,
or any other agreement to which Tenant and Landlord are parties, which is or was
knowingly false or misleading in any material respect when made or furnished;
(v) Intentionally Omitted;
(vi) Tenant becomes insolvent as defined in the Federal Bankruptcy
Code, admits in writing its insolvency or its present or prospective inability
to pay its debts as they become due, in unable to or does not pay all or any
material portion (in number or dollars amount) of its debts as they become due,
permits or suffers a judgment to exist against it which affects Tenant's ability
to conduct its business in the ordinary course (unless enforcement thereof is
stayed pending appeal), makes or proposes an assignment for the benefit of
creditors, or any class thereof, for purposes of effecting a moratorium upon or
extension or composition of its debts, proposes any such moratorium, extension
or compositions, or commences or proposes to commence any bankruptcy,
reorganization or insolvency proceeding, or other proceeding under any federal,
state or other law for the relief of debtors;
(vii) Tenant fails to obtain the dismissal, within sixty (60) days
after the commencement thereof, any bankruptcy, reorganization or insolvency
proceeding, or other proceeding under any law for the relief of debtors,
instituted against it by one or more third parties or fails actively to oppose
any such proceeding, or in any such proceeding, defaults or files an answer
admitting the material allegation upon which the proceeding was based or alleges
its willingness to have an order for relief entered or its desire to seek
liquidation, reorganization or adjustment of any of its debts;
(viii) Any receiver, trustee or custodian is appointed to take
possession of all or any substantial portion of the assets of Tenant, or any
committee of Tenant's creditors, or any class thereof, is formed for the purpose
of monitoring or investigating the financial affairs of Tenant or enforcing such
creditors' rights.
(b) In the event of any such default by Tenant, then in addition to any
other remedies available to Landlord at law or in equity, Landlord shall have
the immediate option to terminate this Lease and all rights of Tenant hereunder
by giving written notice of such intention to terminate. In the event that
Landlord shall elect to so terminate the Lease then Landlord may recover from
Tenant:
(i) The worth at the time of award of any unpaid rent which had
been earned at the time of such termination; plus
(ii) The worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss Tenant proves reasonably could have
been avoided; plus
(iii) The worth at the time of award of the amount by which the
unpaid rent for the balance of the term after the time of award exceeds the
amount of such rental loss Tenant proves reasonably could have been avoided;
plus
(iv) Any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to
result therefrom; and
(v) At Landlord's election, such other amounts in addition to or
in lieu of the foregoing as may be permitted from time to time by applicable
California law.
(c) As used in subparagraphs (i) and (ii) above, the "worth at the time of
award" is computed by allowing interest at the rate specified in Paragraph 34,
below. As used in subparagraph (iii) above, the "worth at the time of award" is
computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of award plus one percent (1%).
(d) In the event of any such default by Tenant, Landlord shall also have
the right, with or without terminating this Lease, to re-enter the Premises and
remove all persons and property from the Premises; such property may be removed
and stored in a public warehouse or elsewhere at the cost of and for the account
of Tenant.
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(e) In the event of the vacation or abandonment of the Premises by Tenant
or in the event that Landlord shall elect to re-enter as provided above or shall
take possession of the Premises pursuant to legal proceeding or pursuant to any
notice provided by law, then if Landlord does not elect to terminate this Lease
as provided in this Xxxxxxxxx 00, Xxxxxxxx may from time to time, without
terminating this Lease, either recover all rental as it becomes due or relet the
Premises or any part thereof for such term and at such rental or rentals and
upon such other terms and conditions as Landlord in its sole discretion may deem
advisable with the right to make alterations and repairs to the Premises.
(f) In the event that Landlord shall elect to so relet, then rentals
received by Landlord from such reletting shall be applied; first to the payment
of any indebtedness other than rent due hereunder from Tenant to Landlord;
second, to the payment of any cost of such reletting; third, to the payment of
the cost of any alterations and repairs to the Premises; fourth, to the payment
of rent due and unpaid hereunder; and the residue, if any, shall be held by
Landlord and applied in payment of future rent as the same may become due and
payable hereunder. Should reletting, during any month to which the payment of
rent is applied hereunder, result in the actual payment of rentals at less than
the rent payable during that month by Tenant hereunder; then Tenant shall pay
such deficiency to Landlord immediately upon demand therefore by Landlord. Such
deficiency shall be calculated and paid monthly. Tenant shall also pay to
Landlord as soon as ascertained, any costs and expenses incurred by Landlord in
such reletting or in making such alteration and repairs not covered by the
rental received from such reletting.
(g) No re-entry or taking possession of the Premises by Landlord pursuant
to this Paragraph 25 shall be construed as an election to terminate this Lease
unless a written notice of such intention be given to Tenant or unless the
termination thereof be decreed by a court of competent jurisdiction.
Notwithstanding any reletting without termination by Landlord because of any
default by Tenant, Landlord may at any time after such reletting elect to
terminate this Lease for any such default.
(h) In the event of any default, Tenant hereby waives any statutory right
of redemption to the fullest extent permitted by law.
(i) All covenants and agreements to be performed by Tenant under this Lease
shall be performed by Tenant in its sole cost and expense, without any abatement
or right of setoff. If Tenant fails to pay any sum of money or fails to perform
any other act on its part to be performed under this Lease and such failure
continues beyond any grace period set forth herein, in addition to any other
rights or remedies Landlord may have, Landlord may, at its election, make the
payment or perform such act. Such payment or act shall not give rise to any
responsibility of Landlord to continue making the same or similar payments or
performing the same or similar acts and Tenant shall, promptly and upon demand
from Landlord, reimburse Landlord for all sums paid by Landlord, together with
interest thereon, at the maximum rate permitted by law.
HOLD OVER
PARAGRAPH 26
If Tenant holds over after the expiration or earlier termination of the
term hereof without the express written consent of Landlord, Tenant shall become
a Tenant at sufferance only at the then prevailing market rate as determined by
Landlord in its sole and absolute discretion for the Premises in effect upon the
date of such expiration or earlier termination (subject to adjustment as
provided in Paragraphs 2 and 3 hereof and prorated on a daily basis), and
otherwise upon the terms, covenants and conditions herein specified, so far as
applicable. Acceptance by Landlord of rent after such expiration or earlier
termination shall not constitute a consent to a holdover hereunder or result in
a renewal. The foregoing provisions of this Paragraph are in addition to and do
not affect Landlord's right of reentry or any other rights of Landlord hereunder
or as otherwise provided by law.
CONDITION OF PREMISES
PARAGRAPH 27
Tenant acknowledges that neither Landlord nor any agent of Landlord has
made any representation or warranty with respect to the Premises or the Building
with respect to its suitability of any part for the conduct of Tenant's
business. Tenant further acknowledges that Tenant has previously occupied the
Premises and is familiar with the Premises. Tenant hereby accepts the Premises
in their "AS IS" condition. The taking of possession of the Premises by Tenant
shall conclusively establish that the Premises, the Building and the
Improvements were at such time in clean, neat and sanitary condition, and in
good order and repair.
QUIET POSSESSION
PARAGRAPH 28
Upon Tenant paying the rent reserved hereunder and observing and performing
all of the covenants, conditions and provisions on Tenant's part to be observed
and performed hereunder, Tenant shall have quiet possession of the Premises for
the entire term hereof, subject to all of the provisions of this Lease.
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DAMAGE TO TENANT'S PROPERTY
PARAGRAPH 29
Landlord or its agents shall not be liable for any damage to Tenant's
property entrusted to employees of Landlord or its agents, nor for loss of or
damage to any property by theft or otherwise, nor for any injury or damage to
persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, water or rain which may leak from any part of the Building or from
the pipes, appliances or plumbing works therein or from the roof, street or
sub-surface or from any other place or resulting from dampness or any other
cause whatsoever in the Building, except to the extent caused by the gross
negligence or willful misconduct of Landlord or its agents. Landlord and its
agents shall not be liable for interference with the light or other incorporeal
hereditaments, nor shall Landlord be liable for any latent defect in the
Premises, the Building or the Improvements. Tenant shall give prompt notice to
Landlord in case of fire or accidents in the Premises or in the Building or the
Improvements, or of defects therein or in the fixtures or equipment.
CONFLICT OF LAWS
PARAGRAPH 30
This Lease shall be governed by and construed pursuant to the laws of the
State of California with venue for any action in the County of Orange, State of
California.
COMMON FACILITIES; PARKING
PARAGRAPH 31
Tenant shall have the non-exclusive right, in common with others, to the
use of common entrances, lobbies, elevators, ramps, drives, stairs and similar
access and serviceways and other common facilities in and adjacent to the
Building, subject to such reasonable rules and regulations as may be adopted by
Landlord, from time to time. Tenant shall have the exclusive right to the use of
the parking spaces in any parking areas located on the Premises, subject to any
existing rights by third parties including, but not limited to, governmental
authorities to the use of the parking spaces in any parking areas located on the
Premises.
SUCCESSORS AND ASSIGNS
PARAGRAPH 32
Except as otherwise provided in this Lease, all of the covenants,
conditions and provisions of this Lease shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.
BROKERS
PARAGRAPH 33
Tenant warrants that it has had no dealing with any real estate broker or
agent in connection with the negotiation of this Lease, excepting only the
broker named in Item 10 of the Basic Lease Provisions, and that it knows of no
other real estate broker or agent who is or might be entitled to a commission in
connection with this Lease. Other than those listed in Item 10 of the Basic
Lease Provisions, should any real estate broker claim a right to real estate
commissions through Tenant, Tenant shall either pay such commission to such real
estate broker or reimburse Landlord for payment of such commission, at
Landlord's discretion, and indemnify, defend and hold Landlord harmless from and
against any such claim. Other than those listed in Item 10 of the Basic Lease
Provisions, should any real estate broker claim a right to real estate
commissions through Landlord, Landlord shall either pay such commission to such
real estate broker or reimburse Tenant for payment of such commission, at
Tenant's discretion, and indemnify, defend and hold Tenant harmless from and
against any such claim. Except as otherwise provided herein, Landlord covenants
and agrees to pay all real estate commissions due in connection with this Lease
to such broker.
NAME
PARAGRAPH 34
Upon the expiration or earlier termination of this Lease, Landlord shall
rename the Building so as to delete any reference to Tenant.
EXAMINATION OF LEASE
PARAGRAPH 35
Submission of this Lease for examination or signature by Tenant does not
constitute a reservation of or option for lease, and it is not effective as a
Lease or otherwise until execution by Tenant and Landlord and delivery to Tenant
of a fully executed original of the Lease.
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INTEREST ON TENANT'S OBLIGATIONS; LATE CHARGE
PARAGRAPH 36
(a) Any amount due from Tenant to Landlord or Landlord to Tenant which is
not paid when due shall bear interest at the rate of three percent (3%) over
the Reference Rate announced by the Bank of America for the month prior to the
month payment is due, or, if less, at the maximum rate per annum permitted under
applicable law from the date such payment is due until paid, but the payment of
such interest shall not excuse or cure the default. In no case, however, shall
the interest rate charged be usurious.
(b) In the event Tenant is more than ten (10) days late in paying any
monetary sum due under this Lease, Tenant shall pay Landlord a late charge equal
to five percent (5%) of the delinquent monetary sum. The parties agree that the
amount of such late charge represents a reasonable estimate of the cost and
expense that would be incurred by Landlord in processing each delinquent payment
by Tenant and that such late charge shall be paid to Landlord as liquidated
damages for each delinquent payment pursuant to California Civil Code Section
1671. The parties further agree that the payment of late charges and the payment
of interest provided for in subparagraph (a) are distinct and separate from one
another in that the payment of interest is to compensate Landlord for the use of
Landlord's money by Tenant, while the payment of late charges is to compensate
Landlord for the additional administrative expense incurred by Landlord in
handling and processing delinquent payments.
TIME
PARAGRAPH 37
Time is of the essence of this Lease and each and all of its provisions.
DEFINED AND MARGINAL HEADINGS
PARAGRAPH 38
The words "Landlord" and "Tenant" as used herein shall include the plural
as well as the singular. If more than one person is named as Tenant the
obligations of such persons are joint and several. The marginal headings and
titles to the articles of this Lease are not a part of this Lease and shall have
no effect upon the construction or interpretation of any part hereof.
PRIOR AGREEMENTS; SEPARABILITY
PARAGRAPH 39
This Lease contains all of the agreements of the parties hereto with
respect to any matter covered or mentioned in this Lease, and no prior
agreement, understanding or representation pertaining to any such matter shall
be effective for any purpose. No provision of this Lease may be amended or added
to except by an agreement in writing signed by the parties hereto or their
respective successors in interest. If any term or provision of this Lease, the
deletion of which would not adversely affect the receipt of any material benefit
by either party hereunder, shall be held invalid or unenforceable to any extent,
the remainder of this Lease shall not be affected thereby and each term and
provision of this Lease shall be valid and enforceable to the fullest extent
permitted by law.
CORPORATE AUTHORITY
PARAGRAPH 40
If Tenant executes this Lease as a corporation, each of the persons
executing this Lease on behalf of Tenant does hereby covenant and warrant that
Tenant is a duly authorized and existing corporation, that Tenant has and is
qualified to do business in California, that the corporation has the full right
and authority to enter into this Lease, and that each person signing on behalf
of the corporation is authorized to do so.
NO LIGHT, AIR OR VIEW EASEMENT
PARAGRAPH 41
Any diminution or setting off of light, air or view by any structure which
may be erected on lands adjacent to the Building shall in no way affect this
Lease or impose any liability on Landlord.
AMERICANS WITH DISABILITIES ACT OF 1990
PARAGRAPH 42
The parties acknowledge that the Americans With Disabilities Act of 1990
(42 U.S.C. Section 12101 et seq.) and regulations and guidelines promulgated
thereunder, as all of the same may be amended and supplemented from time to time
(collectively referred to herein as the "ADA"), establish requirements under
Title III of the
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ADA ("Title III") pertaining to business operations, accessibility and barrier
removal, and that such requirements may be unclear and may or may not apply to
the Premises and Building depending on, among other things: (1) whether Tenant's
business operations are deemed a "place of public accommodation" or "commercial
facility"; (2) whether compliance with such requirements is "readily achievable"
or "technically infeasible"; and (3) whether a given alteration affects a
"primary function area" or triggers so-called "path of travel" requirements. The
parties acknowledge and agree that Tenant has been provided an opportunity to
inspect the Premises and Building to a degree sufficient to determine whether or
not the Premises and Building, in their condition as of the date hereof, deviate
in any manner from the ADA Accessibility Guidelines ("ADAAG") or any other
requirements under the ADA pertaining to the accessibility of the Premises or
the Property. Tenant further acknowledges and agrees that, except as may
otherwise by specifically provided below, Tenant accepts the Premises and
Building in "as-is" condition and agrees that Landlord makes no representation
or warranty as to whether the Premises or Building conform to the requirements
of the ADAAG or any other requirements under the ADA pertaining to the
accessibility of the Premises or the Property. Tenant has prepared or reviewed
the plans and specifications for Tenant's Work and has independently determined
that such plans and specifications are in conformance with the ADAAG and any
other requirements of the ADA. Tenant further acknowledges and agrees that to
the extent that Landlord has prepared, reviewed or approved any of those plans
and specifications, such action shall in no event be deemed any representation
or warranty that the same comply with any requirements of the ADA. Tenant shall
be solely responsible for all Title III compliance and costs in connection with
the Premises, including structural work, if any, and including any leasehold
improvements or other work to be performed in the Premises under or in
connection with this Lease and shall also be solely responsible for the cost of
any so-called Title III "path of travel" requirements triggered by any
construction activities or alterations in the Premises, provided that such cost
is the result of the specific and unique use of the Premises by Tenant,
otherwise Landlord and Tenant shall allocate the obligation to pay for such
costs amortized over such reasonable period as Landlord shall determine with a
return on capital at the rate of 10% per annum on the unamortized balance.
Tenant shall be solely responsible for all other requirements under the ADA
relating to Tenant or any affiliates or persons or entities related to Tenant
(collectively, "Affiliates"), operations of Tenant or Affiliates, or the
Premises, including, without limitation, requirements under Title I of the ADA
pertaining to Tenant's employees.
HAZARDOUS SUBSTANCES
PARAGRAPH 43
(a) (i) "Claim" shall mean and include any actual or threatened demand,
cause of action, proceeding or suit (A) for damages (actual or punitive),
losses, injuries to person or property, damages to natural resources, fines,
penalties, interest, contribution or settlement; (B) for the costs of site
investigations, feasibility studies, information requests, health or risk
assessments or Response (as hereinafter defined) actions; and (C) for enforcing
insurance, contribution or indemnification agreements.
(ii) "Environmental Laws" shall mean and include all federal,
state and local statutes, ordinances, regulations and rules relating to
environmental quality, health, safety, contamination and clean-up, including,
without limitation, the Clean Air Act, as amended, 42 U.S.C. Section 7401 et.
seq.; the Federal Water Pollution Control Act, as amended 33 U.S.C. Section 1251
et. seq. and the Water Quality Act of 1987, as amended; the Federal Insecticide,
Fungicide, and the Rodenticide Act, as amended ("FIFRA"), 7 U.S.C. Section 136
et seq.; the Marine Protection, Research, and Sanctuaries Act, as amended 33
U.S.C. Section 1401 et. seq., the National Environmental Policy Act, as amended
42 U.S.C. Section 4321 et seq.; the Noise Control Act, as amended 42 U.S.C.
Section 4901 et seq.; the Occupational Safety and Health Act, as amended 29
U.S.C. Section 651 et seq.; the Resource Conservation and Recovery Act, as
amended ("RCRA"), 42 U.S.C. Section 6901 et seq.; the Safe Drinking Water Act,
as amended 42 U.S.C. Section 300f et seq.; the Comprehensive Environmental
Response, Compensation and Liability Act, as amended ("CERCLA"), 42 U.S.C.
Section 9601 et seq.; the Toxic Substances Control Act, as amended ("TSCA"), 15
U.S.C. Section 2601 et seq.; the Atomic Energy Act, as amended 42 U.S.C. Section
2011 et seq.; and the California Health and Safety Code and/or any other
California statutes or their successors regarding these issues and state
superlien and environmental clean-up statutes, with implementing regulations and
guidelines. Environmental Laws shall also include all state, regional, county,
municipal and other local laws, regulations and ordinances insofar as they are
equivalent or similar to the federal laws recited above or purport to regulate
Hazardous Materials (as defined below).
(iii) "Hazardous Materials" shall mean and include the following,
including mixtures thereof: any hazardous substance, pollutant, contaminant,
waste, by-product or constituent regulated under any of the Environmental Laws;
oil and petroleum products and natural gas, natural gas liquids, liquefied
natural gas and synthetic gas usable for fuel; pesticides regulated under any of
the Environmental Laws; asbestos and asbestos-containing materials, PCBS and
other substances regulated under any of the Environmental Laws; source material,
special nuclear material, by-product material and any other radioactive
materials or radioactive wastes, however produced, regulated under the Atomic
Energy Act or the Nuclear Waste Policy Act; chemicals subject to the OSHA Hazard
Communication Standard, 29 C.F.R. Section 1910.1200 et seq.; and industrial
process and pollution control wastes, whether or not hazardous within the
meaning of RCRA.
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(iv) "Manage" or "Management" means to generate, manufacture,
process, treat, store, use, re-use, refine, recycle, reclaim, blend or burn for
energy recovery, incinerate, accumulate speculatively, transport, transfer,
dispose of or abandon Hazardous Materials.
(v) "Release" or "Released" shall mean any actual or threatened
spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, migrating, dumping or disposing of Hazardous Materials into
the environment, as "environment" is defined in CERCLA.
(vi) "Response" or "Respond" shall mean action taken in compliance
with Environmental Laws to correct, remove, remediate, clean-up, prevent,
mitigate, monitor, evaluate, investigate, assess or xxxxx the Release of a
Hazardous Material.
(b) During the Term of this Lease:
(i) Tenant shall at its own cost materially comply with all
Environmental Laws (provided, however, the foregoing materiality standard shall
not limit or restrict Tenant's liability or indemnification obligations
hereunder);
(ii) Tenant shall not conduct or authorize the Management of any
Hazardous Materials on the Premises, including installation of any underground
storage tanks, without prior written disclosure to and approval by Landlord,
which approval shall not be unreasonably withheld or delayed (provided, however,
the foregoing shall not limit or restrict Tenant from storing and using
customary quantities of routine office and cleaning supplies so long as such
storage and use is in compliance with all Environmental Laws);
(iii) Tenant shall not take any action that would subject the
Premises to permit requirements under RCRA or any other Environmental Laws for
storage, treatment or disposal of Hazardous Materials;
(iv) Tenant shall not dispose of Hazardous Materials in dumpsters
provided by Landlord for Tenant use in or on any other locations of the
Premises;
(v) Tenant shall not discharge Hazardous Materials into drains or
sewers;
(vi) Tenant shall not cause or allow the Release of any Hazardous
Materials on, to or from the Premises; and
(vii) Tenant shall at its own cost arrange for the lawful
transportation and off-site disposal of all Hazardous Materials that is
generated or used at or on the Premises, including, but not limited to Hazardous
Materials disclosed to and approved by Landlord.
(c) During the Term, Tenant shall promptly provide Landlord with copies of
all summons, citations, directives, information, inquiries or requests, notices
of potential responsibility, notices of violation or deficiency, orders or
decrees, Claims, complaints, investigations, judgments, letters, notices of
environmental liens or Response actions in progress and other communications,
written or oral, actual or threatened, from the United States Environmental
Protection Agency, Occupational Safety and Health Administration, other federal,
state or local agency or authority, or any other entity or individual,
concerning the following:
(i) any Release of a Hazardous Material on, to or from the
Premises;
(ii) the imposition of any lien on the Premises; or
(iii) any alleged violation of or responsibility under
Environmental Laws. Landlord and Landlord's employees shall have the right to
enter the Premises and conduct appropriate inspections or tests in order to
determine Tenant's compliance with Environmental Laws.
(d) Upon written request by Landlord, Tenant shall provide Landlord with
the results of appropriate reports and tests previously obtained by Tenant, with
transportation and disposal contracts for Hazardous Materials, with any permits
issued under Environmental Laws, and with any other applicable documents to
demonstrate that Tenant complies with all Environmental Laws relating to the
Premises.
(e) Landlord and its agents and representative shall have access to the
Premises and to the books and records of Tenant (and any occupant of the
Premises claiming by, through or under Tenant) relating to Hazardous Materials
for the Purpose of ascertaining the nature of the activities being conducted
thereon and to determine the type, kind and quantity of all products, materials
and substances brought onto the Premises or made or produced thereon. Landlord
and its agents and representatives shall have the right to take samples in
quantity sufficient for scientific analysis of all products, materials and
substances present on the Premises, including, but not limited to, samples of
products, materials or substances brought onto or made or produced on the
premises by Tenant or an occupant claiming by, through or under Tenant or
otherwise present on the Premises. And, further, notwithstanding any provision
of this Lease or applicable statutes or judicial decisions to the contrary, with
respect to any assignment, subletting, grant of license or concession or any
other permission to use the Premises by any person other then Tenant, Landlord
shall have the right to withhold Landlord's consent thereto if, in Landlord's
sole judgment and discretion, the assignee, subtenant, licensee, concessionaire
or such other person is not capable of satisfying or is not sufficiently
qualified to satisfy the requirements of this Paragraph 43. Any assignment,
sublease, license or other permission to use the Premises from which Landlord
withholds its consent as provided in this Paragraph 43 shall be voidable at
Landlord's sole option.
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(f) If Tenant's Management of Hazardous Materials at the Premises (i) gives
rise to liability or to a Claim under any Environmental Law; (ii) causes a
significant public health effect; or (iii) creates a nuisance, Tenant shall
promptly take all necessary or applicable action in Response.
(g) Tenant shall indemnify, defend and hold harmless Landlord, its
beneficiaries, its lenders, any managing agents and leasing agents of the
Premises, and their respective agents, partners, officers, directors,
shareholders, members and employees, from all Claims arising from or
attributable to the following:
(i) the Release by Tenant, its agents, contractors, employees or
invitees of any Hazardous Materials at or on the Premises or the violation by
Tenant, its agents, contractors or employees of any Environmental Laws
(including, without limiting the generality thereof, any cost, claim, liability
or defense expended in remediation required by a governmental authority, or by
reason of the release, escape, seepage, leakage, discharge or migration of any
Hazardous Material on or from the Premises or violation of any Environmental
Laws); or
(ii) any breach of Tenant of any of its warranties,
representations or covenants in this Paragraph 43.
Tenant's obligations hereunder shall survive the expiration or earlier
termination of this Lease.
(h) Landlord shall indemnify, defend and hold harmless Tenant, its agents,
contractors and employees from all Claims arising from or attributable to the
Release of any Hazardous Materials at or on the Premises by Landlord, its
agents, contractors or employees of any Environmental Laws during the Term of
this Lease (including, without limiting the generality thereof, any cost, claim,
liability or defense expended in remediation required by a governmental
authority, or by reason of the release, escape, seepage, leakage, discharge or
migration of any Hazardous Material on or from the Premises or violation of any
Environmental Laws). Landlord's indemnity hereunder shall survive the expiration
or earlier termination of this Lease.
NEGOTIATED AGREEMENT
PARAGRAPH 44
The drafting and negotiating of this Agreement has been participated in by
each of the parties, for all purposes, this Agreement shall be deemed to have
been drafted jointly by the parties.
MORTGAGEE PROTECTION
PARAGRAPH 45
No act or failure to act on the part of Landlord which would otherwise
entitle Tenant to be relieved of its obligations hereunder or to terminate this
Lease shall result in such release or termination unless: (a) Tenant has given
notice by registered or certified mail of any beneficiary of any deed of trust
or mortgage covering the Building, whose address has been furnished to Tenant;
and (b) such beneficiary has been afforded a reasonable opportunity to cure the
default by Landlord (which in no event shall be less than sixty (60) days),
including, if necessary to effect the cure, time to obtain possession of the
Building by a power of sale or judicial foreclosure, provided that such
foreclosure remedy is diligently pursued.
ADDENDA
PARAGRAPH 46
Intentionally Omitted.
XXXXXXXX LAND AND IMPROVEMENT
COMPANY, INC., a California corporation
By: [SIG]
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Its: President
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LANDLORD
REMEDY TEMP, INC., a California corporation
By: [SIG]
-----------------------------------------
Its: Sr. VP, CFO
-------------------------------------
TENANT
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EXHIBIT A-1
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EXHIBIT A-4
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EXHIBIT B
INTENTIONALLY OMITTED
END OF EXHIBIT B
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EXHIBIT C
RULES AND REGULATIONS
1. The sidewalks, entrances, passages, courts, elevators, vestibules, stairways,
corridors, or halls of the Building shall not be obstructed or used for any
purpose other than ingress and egress. The halls, passages, entrances,
elevators, stairways, balconies and roof are not for the use of the general
public, and Landlord shall in all cases retain the right to control and prevent
access thereto of all persons whose presence, in the judgment of Landlord, shall
be prejudicial to the safety, character, reputation, and interest of the
Building and the tenants, provided that nothing herein contained shall be
construed to prevent such access to persons with whom Tenant normally deals only
for the purpose of conducting its business on the Premises (such as clients,
customers, office supplies and equipment vendors, and the like) unless such
persons are engaged in illegal activities. Neither Tenant nor any employee of
Tenant shall go up on the roof of the Building without the prior written consent
of Landlord.
2. No awnings or other projections shall be attached to the outside walls of the
Building. No curtains blinds, shades or screens shall be attached to or hung in,
or used in connection with, any window or door of the Premises other than
Landlord's standard window coverings. All electrical ceiling fixtures hung in
offices or spaces along the perimeter of the Building must be fluorescent, of
quality, type, design, and bulb color approved by Landlord. Neither the interior
nor the exterior of any window shall be coated or otherwise unscreened without
the prior written consent of Landlord.
3. No sign, advertisement, notice or handbill shall be exhibited, distributed,
painted, or affixed by Tenant on, about, or from any part of the Premises or the
Building without the prior written consent of Landlord. If Landlord shall have
given such consent at the time, whether before or after the execution of this
Lease, such consent shall in no way operate as a waiver or release of any of the
provisions hereof or of this Lease, and shall be deemed to relate only to the
particular sign, advertisement, or notice so consented to by Landlord and shall
not be construed as dispensing with the necessity of obtaining the specific
written consent of Landlord with respect to each and every such sign,
advertisement, or notice other than the particular sign, advertisement, or
notice, as the case may be, so consented to by Landlord. In the event of the
violation of the foregoing by Tenant, Landlord may remove or stop same without
any liability, and may charge the expense incurred in such removal or stopping
to Tenant. Interior signs on doors and directory tablet shall be inscribed,
painted, or affixed for Tenant by Landlord and shall be of a size, color, and
style acceptable to Landlord. The directory tablet will be provided exclusively
for the display of the name and location of Tenant only, and Landlord reserves
the right to exclude any other names therefrom. Nothing may be placed on the
exterior of corridor walls or corridor doors other than Landlord's standard
lettering.
4. The sashes, sub doors, skylights, windows, and door that reflect or admit
light and air into halls, passageways or other public places in the Building
shall not be covered or constructed by Tenant, nor shall any bottles, parcels,
or other articles be placed on the windowsills. Tenant shall see that the
windows, transoms, and doors of the Premises are closed and securely locked
before leaving the Building and must observe strict care not to leave windows
open when it rains. Tenant shall exercise extraordinary care and caution that
all water faucets or water apparatus are entirely shut off before Tenant or
Tenant's employees leave the Building, and that all electricity, gas, or air
shall likewise be carefully shut off, so as to prevent waste or damage. Tenant
shall cooperate with Landlord in obtaining maximum effectiveness of the cooling
system by closing drapes when the sun's rays fall directly on the windows of the
Premises. Tenant shall not tamper with or change the setting of any thermostats
or temperature control valves.
5. The toilet rooms, water and wash closets, and other plumbing fixtures shall
not be used for any purpose other than those for which they were constructed,
and no sweepings, rubbish, rags or other substances shall be thrown therein. All
damages resulting from any misuse of the fixtures shall be borne by Tenant who,
or whose subtenants, assignees, or any of their servants, employees, agents,
visitors or Licensees, shall have caused the same.
6. Tenant shall not xxxx, paint, drill into, or in any way deface any part of
the Premises, the Building, or the Project. No boring, cutting, or stringing of
wires or laying of linoleum or other similar floor coverings shall be permitted,
except with the prior written consent of Landlord, and as Landlord may direct.
7. No bicycles, vehicles, birds, or animals of any kind shall be brought into or
kept in or about the Premises, and no cooking shall be done or be permitted by
Tenant on the Premises, except that the preparation of coffee, tea, hot
chocolate, and similar items for Tenant and its employees shall be permitted
provided power shall not exceed that amount which can be provided by a 30 amp
circuit. Microwave ovens are allowed; however, Tenant shall not cause or permit
any unusual or objectionable odors to be produced or permeate the Premises.
Smoking or carrying lighted cigars, cigarettes, or pipes in the elevators of the
Building is prohibited.
8. The Premises shall not be used for manufacturing or for the storage
merchandise except as such storage may be incidental to the permitted use of the
Premises. Tenant shall not occupy or permit any portion of the Premises to be
occupied as an office for a public stenographer or typist, or for the
manufacture or sale of liquor, narcotics, or tobacco in any form, or as a xxxxxx
or manicure shop, or as an employment bureau without the express written consent
of Landlord. Tenant shall not engage or pay any employee on the Premises except
those actually working for Tenant on the Premises, nor advertise for laborers
giving an address at the Premises. The Premises shall not be used for lodging or
sleeping or for any immoral or illegal purposes.
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9. Tenant shall not make or permit to be made any unseemly or disturbing noises
or disturb or interfere with occupants of this or neighboring buildings or
Premises or those having business with them, whether by use of any musical
instrument, radio, phonograph, unusual noise, or in any other way. Tenant shall
not throw anything out of doors, windows, or skylight, or down the passageways.
10. Neither Tenant, subtenants or assignees, nor any of their servants,
employees, agents, visitors, or licensees, shall at any time bring or keep upon
the Premises any inflammable, combustible, or explosive fluid, chemical, or
substance.
11. No additional locks or bolts of any kind shall be placed upon any of the
doors or windows by Tenant nor shall any changes be made in existing locks or
the mechanisms thereof. Tenant must, upon the termination of his tenancy,
restore to Landlord all keys to offices and toilet rooms, either furnished to or
otherwise procured by Tenant, and in the event of the loss of keys so furnished,
Tenant shall pay to Landlord the cost of replacing the same or of changing the
lock or the locks opened by such lost key, if Landlord shall deem it necessary
to make such changes.
12. All removal, or the carrying in or out of any safes, freight, furniture, or
bulky matter of any description, must take place during the hours which Landlord
shall determine from time to time, with the express written consent of Landlord.
The moving of safes or other fixtures or bulky matter of any kind must be done
upon previous notice to the superintendent of the Building and under his
supervision, and the persons employed by Tenant for such work must be acceptable
to Landlord. Landlord reserves the right to inspect all safes, freight, or other
bulky articles to be brought into the Building and to exclude from the Building
all safes, freight, or other bulky articles which violate any of these Rules and
Regulations or the Lease. Landlord reserves the right to prescribe the weight
and position of all safes which must be placed upon supports approved by
Landlord to distribute the weight.
13. Tenant shall not purchase spring water, ice, towels, janitorial, or
maintenance or other like services, from any person or persons not approved by
Landlord other than those persons providing such services as of the Commencement
Date.
14. Landlord shall have the right to prohibit advertising by Tenant which, in
Landlord's opinion, tends to impair the reputation of the Building or the
Project or its desirability as an office location. Upon written notice from
Landlord, Tenant shall refrain from or discontinue such advertising.
15. Any person employed by Tenant to do janitorial work shall, while in the
Building and outside of the Premises, be subject to and under the control and
direction of the superintendent of the Building (but not as an agent or servant
of said superintendent or of Landlord), and Tenant shall be responsible for all
acts of such persons,
16. All doors opening onto public corridors shall be kept closed, except when in
use for ingress and egress.
17. The requirements of Tenant will be attended to only upon application to the
Property Manager's office in the building.
18. Canvassing, soliciting, and peddling in the Building are prohibited, and
Tenant shall report and otherwise cooperate to prevent the same.
19. All office equipment of any electrical or mechanical nature not currently in
use by Tenant as of the date hereof shall be placed by Tenant in the Premises in
settings reasonably approved by Landlord, to absorb or prevent any vibration,
noise, and annoyance.
20. No air conditioning unit or other similar apparatus shall be installed or
used by Tenant without the prior written consent of Landlord.
21. There shall not be used in any space, or in the public halls of the
building, either by Tenant or others, any hand trucks except those equipped with
rubber tires and rubber side guards.
22. No vending machines of any description shall be installed, maintained, or
operated upon the Premises without the written consent of Landlord.
23. The scheduling of Tenant move-ins shall be subject to the reasonable
discretion of Landlord.
24. If Tenant desires telephone or telegraph connections, Landlord will direct
electricians as to where and how the wires are to be introduced. No boring or
cutting for wires or otherwise shall be made without directions from Landlord.
25. The term "personal goods or services vendors" as used herein, means persons
who periodically enter the Building for the purpose of selling goods or services
to Tenant, other than goods or services which are used by Tenant only for the
purpose of conducting its business on the Premises. "Personal goods or services"
include, but are not limited to, drinking water and other beverages, food,
barbering services, and shoe shining services. Landlord reserves the right to
prohibit personal goods and services vendors from access to the Building (other
than those vendors providing such personal goods and services as of the
Commencement Date) except upon such
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reasonable terms and conditions, including but not limited to, the payment of a
reasonable fee and provision for insurance coverage, as are related to the
safety, care, and cleanliness of the Building, the preservation of good order
thereon, and the relief of any financial or other burden on Landlord occasioned
by the presence of such vendors or the sale by them of personal goods or
services to Tenant or its employees. If necessary for the accomplishment of
these purposes, Landlord may exclude a particular vendor entirely or limit the
number of vendors who may be present at any one time in the Xxxxxxxx.
XXX XX XXXXXXX X
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EXHIBIT D
TENANT'S CERTIFICATE
STATEMENT OF TENANT RELEASE
Date: , 19
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Re: Address:
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For Premises in:
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Gentlemen:
It is our understanding that you have made certain commitments to Landlord
of the subject premises and, as a condition thereof, have required this
certification by the undersigned.
The undersigned, as Tenant under that certain Office Lease dated
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19 , made and entered into between Xxxxxxxx Land and Improvement Company, Inc.,
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as Landlord, and the undersigned, as Tenant, hereby ratifies said Lease and
certifies that the undersigned has accepted possession and entered into
occupancy of the Premises described in said Lease and the minimum rental in the
monthly amount of $ was payable from that or an earlier date; that said
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Lease is in full force and effect and has not been assigned, modified,
supplemented, or amended in any way; that the same represents the entire
agreement between the parties as to the leasing; that the terms of said Lease to
be performed by Landlord as of the date set forth above have been fully
satisfied, including without limitation, that the improvements and space
required to be furnished according to said Lease have been completed in all
respects, that Landlord has fulfilled all of its duties of an inducement
nature, that all required contributions by Landlord to Tenant on account of
Tenant's improvements have been paid and received; that on this date there are
no existing defenses or offsets which the undersigned has against the
enforcement of said Lease by Landlord; that the rental has not been paid in
advance except as provided by the Lease terms, and that security in the sum of
$ has been deposited with Landlord; and that all minimum rental due
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as of this date has been paid.
Very truly yours,
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TENANT
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EXHIBIT E-1
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