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addition, all equipment furnished to the Contractor by the City and/or purchased by the <br />Contractor with funds pursuant to this Agreement, will be limited to use within the <br />activities outlined by this Agreement and will remain the property of the City (subject <br />to the rights of the landlord under the Lease). Upon termination of this Agreement, <br />Contractor will immediately return all equipment to the City or dispose of it in <br />accordance with the direction of the City (subject to the rights of the landlord under the <br />Lease). <br />2. EFFECTIVENESS AND TERM OF AGREEMENT <br />a. The Shelter will be located within a 29,503-square foot industrial building on 1.5 <br />acres in an industrial zone at 1815 Carnegie Avenue in Santa Ana ("Site"). This <br />Agreement shall not become effective unless and until the Site for the Shelter and <br />Services has been secured by Contractor as evidenced by a signed lease or other <br />signed written instrument to the City's satisfaction ("Lease"), provided that if the <br />Lease is not executed on or before July 15, 2020, this Agreement shall be void and <br />have no force and effect. The City shall execute a guarantee of only the Base Rent <br />payment obligations of Contractor under the Lease ("Guarantee") for the benefit of <br />the landlord under the Lease. The Lease attached as Exhibit D and the Guarantee <br />attached as Exhibit E are hereby approved by the City. <br />b. This Agreement will commence upon the date first written above ("Effective Date") <br />and continue for two (2) years ("Term"), with the option for the City to. grant up to <br />eight (8), one (1) year renewals; exercisable by a writing executed by the City <br />Manager and the City Attorney, for a potential total Tenn of ten (10) years, unless <br />terminated earlier in accordance with Section 15, below. If this Agreement expires <br />or is terminated, Contractor shalt assign the Lease as directed by the City per section <br />60 of the Addendum to the Lease. <br />C. The City acknowledges that Contractor is entering into the Lease in reliance on the <br />City's performance of its obligations under this Agreement and the Guarantee. The <br />City shall indemnify, defend and hold harmless Contractor from any loss, claim or <br />damage arising out of or resulting from any breach by the City of its obligations <br />under this Agreement or the Guarantee, including without limitation the City's <br />failure to pay sums required hereunder which Contractor will rely upon to fulfill <br />Contractor's obligations under the Lease. The Contractor acknowledges that City <br />is entering into the Guarantee in reliance on the Contractor's performance of its <br />obligations under this Agreement and the Lease. The Contractor shall indemnify, <br />defend and hold harmless City from any loss, claim or damage arising out of or <br />resulting from any breach by the Contractor of its obligations under this Agreement <br />or the Lease, including without limitation the Contractor's failure to operate the <br />Shelter and Services required hereunder which City will rely upon to frdfill City's <br />obligations under the Guarantee, but excluding the Contractor's failure to pay sums <br />to be funded by the City under this Agreement. . <br />d. At City's request, Contractor has included in the Lease provisions for Contractor's <br />option to purchase the Site, which may be assigned to the City. If City asks <br />Contractor to exercise such option, City shall (i) provide all funds necessary to <br />SIM 30e75-0001\ 704201.5 M W2o2o Page 2 of 10 <br />