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16, INSURANCE —The State represents that, as an entity of the State of California, it is self insured against damages,
<br />injury and other forms of liability. Lessor or other parties shall not be named as an additional insured therein.
<br />17. ASBESTOS - Lessor hereby warrants and guarantees that the Premises leased to the State will be operated and
<br />maintained free of hazard from Asbestos-Containhig Construction materials (ACCM), as that term is defined in Labor
<br />Code Section 6501.8.
<br />18. SUBROGATION WAIVER AND INDEMNITY -
<br />A. SUBROGATION WAIVER— To the extent authorized by any fire and extended coverage insurance issued
<br />to Lessor on the herein damaged premises, Lessor releases State from liability for loss or damage covered by said
<br />insurance and waives subrogation rights of the insurer.
<br />B. INDEMNITY —
<br />(1) To the extent that Paragraph 18.A is not applicable, State agrees to indemnify, hold harmless and
<br />defend Lessor, its officers, employees, representatives and agents from any and all liability, claims, demands,, actions,
<br />damages, costs and financial loss, including all costs and expenses and fees of litigation or arbitration, that arise directly
<br />or indirectly from any acts or omissions related to this Lease performed by the State or its agents, employees, or other
<br />persons acting on the State's behalf. This agreement to indemnify, hold harmless and defend shall apply whether such
<br />acts or omissions are the product of active negligence, passive negligence, willfulness or acts for which State or its
<br />agents, employees, or other persons acting on the State's behalf would be held strictly liable.
<br />(2) Lessor agrees to indemnify, hold harmless and defend the State, its officers, employees,
<br />representatives and agents from any and all liability, claims, demands, actions, damages, costs and financial loss,
<br />including all costs and expenses and fees of litigation or arbitration, that arise directly or indirectly from any acts or
<br />omissions related to this Lease performed by Lessor or its agents, employees, or others persons acting on Lessor's
<br />behalf. This agreement to indemnify, hold harmless and defend shall apply whether such acts or omissions are the
<br />product of active negligence, passive negligence, willfulness or acts for which Lessor or its agents, employees, or other
<br />parsons acting on Lessor's behalf would be held strictly liable.
<br />19. PARKING — State shall have one reserved parking space. In addition, State shall have the nonexclusive use of the
<br />parking area owned by Lessor at and around the leased premises; provided, however, State's agents, employees,
<br />customers and invitees for parking may not park in an area designated, identified, and/or reserved for parking by any
<br />other tenant or tenants, if any. State acknowledges that Lessor has entered into an agreement with the Orange County
<br />Transportation Authority for the constriction of the OC Streetcar at SAR'i'C, which has begun and is anticipated to
<br />continue through 2021. Such construction may affect the number of parking spaces available at any one time, though it
<br />is not possible to determine the precise effect at the time of this lease.
<br />20. USE — For the purposes of this lease, State's intended use of the leased premises is strictly for office space. No
<br />other use of the leased premises shall be permitted without written consent of Lessor.
<br />21, ASSIGNMENT AND SUBLETTING — State may not assign this lease or sublet the subject premises or any part
<br />thereof without the prior written consent of Lessor, which may be withheld at Lessor's sole discretion. Any assignment
<br />or subletting not in compliance with the provisions of this paragraph shall be a material breach of the lease, voidable
<br />and, at Lessor's option, shall terminate this lease. State assigning rise of the office to a Senator other than Senator
<br />Umberg shall not constitute assignment or subletting under this paragraph.
<br />22. DELIVERY OF LEASED PREMISES UPON TERMINATION OR EXPIRATION OF TERM — State agrees
<br />to deliver to Lessor physical possession of the leased premises upon the termination or expiration of this lease in the
<br />same condition as upon commencement of the lease, except for ordinary wear and tear. Any alterations, additions, or
<br />improvements affixed to the leased premises, except furnishings, equipment, and trade fixtures, shall, at Lessor's
<br />option, become part of the real property and belong to Lessor on expiration or termination of the term and any extension
<br />thereof.
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