|
for the roof, foundations, and bearing walls which are handled as provided in paragraph 7. Lessor also warrants, that unless otherwise specified in writing, Lessor is
<br />unaware of (i) any recorded Notices of Default affecting the Premise; (i i) any delinquent amounts due under any loan secured by the Premises; and Jilt} any bankruptcy
<br />proceeding affecting the Premises.
<br />2.3 Compliance. Lessor warrants that to the best of its knowledge the improvements on the Premises comply with the building codes, applicable laws,
<br />covenants or restrictions of record, regulations, and ordinances ("Applicable Requirements") that were in effect at the time that each improvement, or portion
<br />thereof was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be fquired by the Americans with
<br />Disabilities Act or any similar laws as a result of Lessee's use {see Paragraph 49), or to any Alterations cr Utility Installations (as defined in Paragraph 7.3(a)) made or to
<br />be made by Lessee. NOTE: Lessee is responsible for determinirig whether or not the Applicable Requirements, and especially the zoning, are appropriate for
<br />Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall,
<br />except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify
<br />the same at Lessor's expense. If Lessee does not give Lessor written notice of a non-compliance with th':s warranty within 6 mon I hs follow ing the Start Date,
<br />correction of that non-compliance shall be the obligation of Lessee at Lessee's sole cost and expense. If the Applicable Requirements are hereafter changed so as to
<br />require during the term of this Lease the construction of an addition to or an alteration of the Premises and/or Building, the remediabon of any Hazardous Substance,
<br />or the reinforcement or other physical modification of the Unit, Premises and/or Building ("Capital Expenditure"), Lessor and lessee shall allocate the cost of such
<br />work as follows:
<br />(a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as
<br />compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however, that if such Capital Expenditure is required during
<br />the last 2 years of this Lease and the cost thereof exceeds 6 months' Base Rent, lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing,
<br />within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the difference between the actual cost thereof and an amount equal to 6
<br />months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor
<br />written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee
<br />couid legally utilize the Premises without commencing such Capital Expenditure.
<br />(b) If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic
<br />modifications), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease
<br />or any extension thereof, on the date that on which the Base Rent is due, an amount equat to 1/144th of the portion of such costs reasonably attributable to the
<br />Premises. Lessee shall pay Interest on the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years
<br />of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon
<br />90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor's termination notice that Lessee will pay for such
<br />Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capita! Expenditure, Lessee may advance such funds and deduct
<br />same, with Interest, from Rent until Lessor's share of such costs have been fully paid- If Lessee is unable to finance Lessor's share, or if the balance of the Rent due
<br />and payable for the remainder of this Lease is not sufficient to fully reimburse lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30
<br />days written notice to Lessor-
<br />(c) Notwithstanding the ahove, the provisions concerning Capital Expenditures are intended to apply only to no n -va I untary, unexpected, and new
<br />Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or
<br />modification to the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as
<br />may be necessary to eliminate the requirement for such Capital Expenditure, or (h) complete such Capital Expenditure at its own expense. Lessee shalt not, however,
<br />have any right to terminate this Lease.
<br />2.4 Acknowledgements. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by
<br />Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler
<br />systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Lessee's
<br />intended use. (c) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate
<br />to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Lessor, (e) the square footage of the
<br />Premises was not material to Le ssee's deci sion to tease the Premises and pay the Rent stated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made
<br />any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: ( i ) Brokers
<br />have made no representations, promises or warranties concerning Lessee's ability to honor the Lease a suitability to occupy the Premises, and (i i) it is lessor's sole
<br />responsibility to investigate the financial capability and/or suitability of all proposed tenants.
<br />2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no torte or effect if immediately prior to the Start Date Lessee
<br />was the owner or occupant of the Premises. In such event, Lessee shall be responsible far any necessary corrective work.
<br />3. Term.
<br />3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease areas specified in Paragraph 1.3-
<br />3.2 Early Possession. Any provision herein granting Lessee EarN Possession of the Premises is subject to and conditioned upon the Premises being available
<br />for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or
<br />partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other
<br />terms of this Lea (including but not limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall be in effect
<br />during such period. Any such Early Possession shall not affect the Expiration Date.
<br />3-3 Delay In Possession, Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement
<br />Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not he subject to any liahiIity therefor, nor shall such failure affect the
<br />vaIidityof this Lease or change the Expiration Date. tessee shall not, however, be Obligated to pay Rent or perform its other obligations until Lessor delivers
<br />possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and
<br />continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of
<br />Lessee. If possession is not delivered within 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by
<br />Parbes, Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be
<br />discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. If
<br />possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between
<br />Lessor and Lessee, in writing.
<br />3.4 Lessee Compliance. Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation to provide
<br />evidence of insurance (Paragraph &5). Pending delivery of such evidence, lessee shall be required to perform aIt of its obligations under this Lease from and after the
<br />Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee
<br />Page 2 of 16
<br />INITIALS Last Edited: 3/14/2024 3:33 PM INITIALS
<br />0 2017 AIR CRE. All Rights Reserved. STG-27.20, Revised 11-01-2017
<br />
|