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expended by Owner for certain alterations and improvements, as described in a separate <br />paragraph herein, and the capital sum has been fully amortized, the holdover rent shall be <br />reduced by the amount of the monthly amortization. If the Occupant fails to vacate the Premises <br />within the notice period and remains for an extended period, additional rent shall be paid and <br />prorated on a thirty (30) day month, based on the actual number of days the Occupant occupies <br />the Premises following the effective date of termination. <br />Surrender of 16. Upon termination or expiration of this Occupancy Agreement, the Occupant will <br />Possession peacefully surrender to the Owner the occupied Premises in as good order and condition as when <br />received, except for reasonable use and wear thereof and damage by earthquake, fire, public <br />calamity, the elements, acts of God, or circumstances over which Occupant has no control or for <br />which Owner is responsible pursuant to this Occupancy Agreement. <br />Time of 17. Time is of the essence of this Occupancy Agreement, and the terms and provisions of <br />Essence, this Occupancy Agreement shall extend to and be binding upon and inure to the benefit of the <br />Binding upon heirs, executors, administrators, successors, and assigns to the respective parties hereto. All of <br />Successors the parties hereto shall be jointly and severally liable hereunder. <br />No Oral 18. It is mutually understood and agreed that no alterations or variations of the terms of this <br />Agreements Occupancy Agreement shall be valid unless made in writing and signed by the parties hereto, and <br />that no oral understanding or agreement not incorporated herein, shall be binding on any of the <br />parties hereto. <br />Insurance 19. Owner understands and agrees that the Occupant is self -insured for liability exposures. <br />Under this form of insurance, the Occupant and its employees acting in the course and scope of <br />their employment are insured for tort liability arising out of official Occupant business. All claims <br />against Occupant based on tort liability should be presented as a government claim to the <br />Government Claims Program through Occupant. (Gov. Code section 900, et. seq.) <br />Hazardous 20. Occupant agrees that it will comply with all applicable laws existing during the term of this <br />Substance Occupancy Agreement pertaining to the use, storage, transportation, and disposal of any <br />hazardous substance as that term is defined in such applicable law. In the event Owner or any <br />of its affiliates, successors, principals, employees, or agents should incur any liability, cost, or <br />expense, including attorney's fees and costs, as a result of the Occupant's illegal or alleged illegal <br />use, storage, transportation, or disposal of any hazardous substance, including any petroleum <br />derivative, the Occupant shall indemnify, defend, and hold harmless any of these individuals <br />against such liability, to the extent authorized by Government Code section 14662.5. Where the <br />Occupant is found to be in breach of this provision due to the issuance of a government order <br />directing the Occupant to cease and desist any illegal action in connection with a hazardous <br />substance, or to remediate a contaminated condition caused by the Occupant or any person <br />acting under Occupant's direct control and authority, Occupant shall be responsible for all costs <br />and expenses of complying with such order, including any and all expenses imposed on or <br />incurred by Owner in connection with or in response to such government order, to the extent <br />authorized by Government Code section 14662.5. In the event a government order is issued <br />naming the Occupant or the Occupant incurs any liability during or after the term of the Occupancy <br />Agreement in connection with contamination which pre-existed the Occupant's obligations and <br />occupancy under this Occupancy Agreement or which were not caused by the Occupant, Owner <br />shall hold harmless, indemnify, and defend the Occupant in connection therewith and shall be <br />solely responsible as between Occupant and Owner for all efforts and expenses thereto. <br />Restoration of 21. Upon termination of this Occupancy Agreement, Owner agrees that the equipment <br />Premises installed by the Occupant, if any, shall be and remain the property of the Occupant, and Occupant <br />shall remove such property when vacating the Premises. Occupant shall restore all surfaces, <br />including floors and walls, to the condition existing prior to its installation, including repair of <br />damaged floor tile and patching and repainting damaged wall surfaces to match adjacent existing <br />Page, - 5 <br />