HomeMy WebLinkAboutKEISER, STEVEN J.DUE -
THIS LEASE is entered into this 1' day of DECEMBER 1991
by and between STEVEN J? V`EISER (""Landlord") and THE CITY OF SANTA ANA, 4
A MUNICIPAL CORP. OF THE STATE OF CALIFORNIA("Tenant
").
THIS LEASE takes precedence over any and all leases dated prior to
the above date for the premises as defined in Section 1.
1 • LEAgF F`REM I SES
In consideration of the mutual covenants and conditions set forth in
this Lease, Landlord leases to Tenant, and Tenant leases from Landlord,
those certain premises whose address is 410 W. 4th Street, Basement, and
412 W. 4th Street, Basement, Santa Ana, CA 92701,
and is further described as All of the basement of 412 W. 4th Street, Santa Ana,
CA, containing approximately 2400 square feet, and approximately 2,000 square feet
of the basement of 410 W. 4th Street, as shorn on ExhibitA (the "Premises") .
2. TERM
Unless sooner terminated as provided for in this Lease, the term of
this Lease shall be for a period of TWO YEARS
can DECEMBER 15 1991 '� � — - , commencing
_, _, and terminating can DECEiBER 14, 1993 _{the
"Term"). Landlord shall not be subject to any liability for failure to
have the Premises ready for occupancy on any specific date and such failure
shall not affect the validity of this Lease or the obligations of Tenant
under this Lease, except that the obligation to pay rent or any other
charges payable pursuant to this Lease shall not commence until possession
of the Premises is given to Tenant. This Lease may be terminated at the
option of Tenant if the possession of the Premises is not granted
by FEBRUARY 15, 1992 (60 days) i�• If Tenant is Permitted to occupy the
Premises prior to the commencement of this Lease, such occupancy shall be
subject to all the terms and conditions of this Lease, including the
obligation to pay rent, at the monthly rate provided in Section 3, for the
period prior to the commencement of the Term during which Tenant occupies
the Premises. Should Tenant fully and faithfully perform all the terms and
conditions of this Lease for the full term specified herein above, he shall
have the option of extending this Lease for a further term
0f ` TWO YEARS_ , commencing on expiration of the frill term
specified herein above, by giving Landlord written notice of Tenant's
desire to do so at least NINETY (9O)da ys, prior to the expiration of said
term.
RENT
(a) Tenant shall pay to Landlord, as rental for the Premises,
without any prior- demand and without any deduction or setoff, the fixted
rent provided in Section 3(b) below plus such additional amounts, if any,
as may be required pursuant to the rental adjustment provided in Section
3(c) below, or pursuant to Section 42, "Direct Expenses". All rent payable
under this Lease shall be paid in legal tender of the United States in
person or by United States mail, postage prepaid, at the office of
Landlord, located at 412 West Fourth Street, Suite 201, Santa Ana,
California 927,01, or at such other place as may be designated in writing by
Landlord. Monthly rental payments not actually received by Landlord on or
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Prior to the first day of each calendar month shall be delinquent.
Delinquent rentals not actually received on or prior to the tenth of the
month shall be subject to a delinquency charge in an amount not exceeding
10% of such delinquent payment or $10.00, whichever is greater, provided
that such charge may be collected not more than once on any one delinquent
payment.
(b) The Tenant shall pay to Landlord as rent for the Premises, a
Monthly rental of TWO THOUSANDRIGHT HUNDRED QUI AND I 1 ---- =� `�'
The rental shall be payable by Tenant, in advance, upon the first day of
each and every calendar month during the Term. Notwithstanding the
foregoing, if Tenant's obligation to pay rent is abated as provided in
Section 2 of this Lease, then the total amount of fixed rent payable under
this Lease shall be reduced by an amount equal to the product of the number
Of months during which the rent under this Lease is abated, multiplied by
the monthly installments of rent provided above. 'If Tenant's obligation to
Pay rent shall commence on any day other than the first day of the month,
or if the Lease expires on a date other than the end of a calendar month,
the rent for such partial, month shall be the pro --rats portion of the
monthly installment of rent provided above allocated over that portion of
said month which falls within the Term. All prorations shall be computed
on the basis of a thirty (30) day month.
(a) The minimum monthly rent provided for in Section 3(b) shall be
subject to adjustment upward, but never downward, at the commencement of
the second year of the Term and each year thereafter ("the adjustment
date") as followse
The Index used for computing the adjustment is the Consumer Price
Index QPI-Wh all Urban Consumers, for the Los Angeles -Long
Beach -Anaheim Metropolitan Area published by the United States
Department of Labor^, Pureau of Labor Statistics ("Index") which is
published for the date nearest the date of commencement or adjustment
date, whichever shall apply.
The Index; for the adjustment date shall be computed as a percentage
of the index for the immediately prier adjustment date. For example,,
assuming the index; for the immediately prior adjustment date is 135
and the index for the current adjustment data is 145, the percentage
to be applied is 145/135 = 1.07 - 107 percent.
That percentage shall be applied to the rent then being paid by
Tenant and shall continue until the next adjustment date.
If the'described index shall no longer be published, another index;
generally recognized as authoritative shall be substituted by
agreement'of the parties. If they are unable to agree within ZO
days after demand by either party, the substitute index shall, on
application of either party, be selected by the chief officer of the
San Francisco regional office of the Bureau of Labor Statistics, or
its successor.
(d) Tenant shall deposit with Landlord an amount equal to one msanth's
rent, or DEPOSS1T WAIVED �_9 UPOn Commen,empnt of the Lease, said sum to
be held by Landlord as security for the faithful performance by Tenant of
all the terms, covenants, and conditions of this Lease to be kept and
performed by Tenant during the term hereof. If Tenant defaults with
respect to any provision of this Lease, including, but not limited to the
,-
Provisions relating to the payment of rent, Landlord may (but shall not be
required to) use, apply or retain all or any part of this security deposit
for the payment of any rent or any other sum in default, or for the payment
Of any amount which Landlord may spend or became obligated to spend by
reason of Tenant's default, or to compensate Landlord for any other lass at,
damage which Landlord may suffer by reason of Tenant's default. If any
Portion of said deposit is so used or applied, Tenant shall within five (5)
days after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the security deposit to its original amount and
Tenant's failure to do so shall be a material breach of this Lease.
Landlord shall not be required to keep this security deposit separate from
its general funds, and Tenant shall not be entitled to interest on such
deposit. If Tenant shall fully and faithfull
this Lease to be faithfully.perform every provision of
d
ce
thereof shall be returned toyTenant hatsthe rexpirati.ontofr^theyLeasebalanterm.
4 Ulm
(a) Tenant shell use the Promises solely for the purpose of..
Santa, Ana Police �Department Wevidence and property storage
(b) Tenant shall not cause or permit any waste to the Premises or
create any nuisance or do any act which may disturb any other tenant of the
Building. Tenant shall observe and comply with all laws, ordinances,
regulations and requirements of any public authority now in farce or which
hereafter may be in force, affecting the Premises and the conduct of
Tenant's business. Tenant shall not use the Premises or der or permit any
act on the Promises which would cause the cancellation of any blanket at -
individual insurance policy covering the Premises or which would increase
the cast of any such insurance policy. In the event that Tenant's use of
the Premigns results in an increase in the cast of any such insurance
Policy Or its cancellation, Tenant shall reimburse Landlord for the
additional cost of such insurance and any replacement coverage.
(c) The sidewalks, halls, passages, elevators and stairways in or,
about the Wilding shall not be obstructed or used by Tenant for any
Purpose other than for entering to or exiting from the Promises. Landlord
shall retain the right to control the halls, passages, entrancesuilding and to prevent acces,
stairways, balconies and roof in or upon the Bs~, thereto of all persons whose presence, in the judgement of Landlord, shall
be detrimental to the safety, character, reputation and interests of the
Building and its tenantsg provided, however, that nothing contained in this
Lease shall be construed to prevent such access to persons with wham 'Tenant
normally deals in the ordinary course of Tenant's business unless such
Persons are enraged in illegal Or immoral activities. Neither Tenant not,
employees of Tenant shall go upon the roof of the Building without the
Prior consent of Landlord.
(a) Landlord shall pay all real property taxes levied against the
land and the Building and the parking areas available to the Bujjdimg�
provided, however, that Tenant shall pay to Landlord, as additional, rent
under this Lease, that amount, if any, by which the real property tare
attributable to the Premises for each tars fiscal year occurring during the
Term exceed the real Property taxes attributable to the Premises for the
tax fiscal year during which the term commenced. The real property taxes
attributable to the Premises shall be determined by multiplying the total
real property taxes levied against the land, Building and parking areas fo
the particular year by a fraction, the numerator of which is the total
square footage in the premises, and the denominator of which is the total
net rentable square footage in the Building. Such payment shall be made b
Tenant within thirty (30) days after receipt of Landlord's written
statement setting forth the amount of the increase in the real property
taxes attributable to the Premises and the computation thereof. If the
Term sha1l not expire concurrently with the expiration of the tax fiscal
year, Tenant's liability for increased taxes fop the last partial year of
the Term shall be prorated on an annual basis. As used in this Lease, the
term "real property taw" shall include any form of assessment, charge,
levy, penalty or tax levied by any governmental authority, including any
city, countyv state or federal authority, any school, agricultural,
lighting, drainage or other improvement district, or the Federal
Environmental Protection Agency.
(b) Tefiant shall pay, prior to delinquency, all taxes assessed
against or levied upon Tenant's trade fixtures, furnishings, equipment or
other personal property which are assessed together with Landlord's real
WrQpOrty° Tenant shall pay to Landlord the taxes attributable to Tenant's.
property within ten (10) days after receipt of a written statement from
Landlord setting forth the taxes applicable to Tenant's property"
(a) Prior to delivery of possession of the Premises to Tenant, the
Premises will be modified tcrTenant's requirements as shown on the drawing
labeled Exhibit 89 which is attached to and is a material part of this
Lease. Construction of the Premises in accordance with the plans and
specifications shown on Exhibit B shall be performed by Landlord, or
Landlord's agents, contractor or representatives.
The cost of constructing and completing the Premises shall be born
by Tenant and Landlordv respectively, as specified in Exhibit Cv attached
to this Lease. Tenant's share of such cost shall be paid to Landlord in
advance, upon ex7acution of this Lease.
(b) The taking qf passL-asion by Tenant of the Premises shm^11
Const1tutae conclusive acknowledgement that fhe Premises are in good
condition and satisfactory to Tenant.
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(a) Landlord shall be responsible for the maintenance of the
exterior, roof and common areas of the Building. However, Landlord shall
not be/ liable for any injuries or any damage to the Premises or to any
property of Tenant or under Tenant's control resulting from any defects
existing in the roof or common areas of the Building, which are known by
Landlord and disclosed to Tenant in writing.
(b) Tenant shall, at Tenant's expense, maintain the Premises in goo
order, condition and repair, including but not limited to, all interior
walls, interior surfaces of exterior walls, ceilings, windows, doors, plat
glassv entrances and vestibules located within the Premises, and all
electrical, mechanical, plumbing and other fixtures located in the
Premises. If Tenant fails to Perform such repairs or maintenance,
Landlord, at its optionv may enter the Premises aJnd perform such repairs
and maintenan±e work and charge Tenant for the cost thereof plus an
overhead charge of 10%. Such amount shall be payable by Tenant as
additional rent at such time as Tenant's next monthly rental payment is do
under this Letse"
(c) On the last day of the Term, or upon any sooner termination of
this Lease, Tenant shall surrender the Premises to Landlord in the same
condition as when Tenant received possession, ordinary wear and tear
excepted. Tenant, ar Tenant's expense, shall repair any damage to the
Premises occasioned by the removal of Tenant's trade fixtures, furnishings
equipment or other perAona1 property.
(d) Tenant may make alterations, improvements, additions or utility
tnStw11ations in, on or about the Premises provided Landlord's prior
written consent is obtained to f�ach such alteration. As a condition to
giving such consent, Landlord may require the Tenant to agree to remove an
such alterations, improvements, additions qr utility installations upon th
expiration of termination of this Lease and to restore the Premismvs to
their prior condition. All work made or authorized by Tenant in cannectto
with the Promises shall be done in compliance with the requiremento of all
governmental authorities having Jurisdiction thereof"
DUILDMIG SIERVICEE AND UTILITIES
' (a) Landlord, at its expense, shall provide to the common are�s
heating and air conditioning during regular business hours. Lamd1ord
s5Mallv at own expense, maintain and service, at reasonable time and on
reasonable notice, the air conditioning and equipment.
(b) Utilities shall be paid by..__..LANDLORD
10" CORLITERS
Tenant shall not use any computers or, other electronical equipment
which may, in Landlord's sole judgment, put an unreasonable burden upon th
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electrical wiring and electrical system contained in the Building. Tenant
may request permission to place computers or electronical equipment on the
Premises. However, Landlord, in his sole discretion, may refuse to grant
any such request and further, the granting of one request does not in any
way constitute a waiver of the requirement to obtain consent for any
additional or subsequent computers or electronical equipment. Landlord may
condition his approval to such request upon Tenant assuming liability fo-
all ar part of the utilities used on the premises. Violation of this
Provision shall constitute a material breach of this Lease.
11. LIENS
Tenant shall beep the Premises and the Building free from any liens
arising out of any wore performed, materials furnished or obligations
incurred by or on behalf of Tenant. Landlord may require, at Landlord's
sale option, that Tenant shall provide to Landlord, at Tenant's scale cost
and expense, a lien and completion bond in an amount equal to one and
one-half (1-1/2) times the estimated cast of any improvements, additions,
ar alterations in the Premises which the Tenant desires to matte, to insure
Lanlord against any liability for mechanic and materialmen's lions and to
#insure Completion of the work. If Tenant fails to discharge any such liens
levied Upon the Premises or the wilding, Landlord shall have the right, at
its option, to pay such lien, in which event, Tenant shall, wihtin five (5)
days thereafter, pay to Lanlord the amount of such lien plus an overhead charge equal to 10% of such amount. Tenant agrees to indemnify Landlord
from and .against any lass, damage or expense including actual attorne,y's
fees, incurred by landlord as a result of the attachment of any such lien
or the discharge thereof. Tenant shall give Landlord not .less than tern (lei) bays notice prior to the commencement of any work on the Premises and
Landlord shal have the right to post notices of nonresponsibiiity in or
upon the Premises, as may be provided by law. Unless Landlord requires the
removal Of any alterations, additions, improvements or utility
installations made by Tenant to the Premises, all such alterations,
improvements, additions or installations other than Tenant's trade
fixtures, shall immediately become the property of Landlord.
12. ASS S OhiM�i�1T ��f� SLJ� L.�'1;T I NG
Tenant may assign, transfer, mortgage, pledge, hypothecate or -
encumber this Lease, or any interest therein, and may sublet the Premises
Or any part thereof, or any ritht or privilege appurtenant thereto, or
allow any rather person (thee agents and servants of Tenant excepted) to
occupy or use the Premises, or any Portion thereof, provided the prior
written consent of Landlord, which consent shall not be unreasonably
Withheld, is first had and obtained. A consent to One assignment,
subletting, Occupation or use by any other person shall not be deemed to be
a consent to any subsequent assignment, subletting, occupation or use by
any other person. Any such .~assignment or subletting without such consent
shall be void. , Tenant's interest in this Lease shall not be assignable by
operation of law without the written consent of Landlord.
In the event that Landlord shall consent to a sublease or assignment
hereunder, Tenant shall pay Landlord a reasonable fee, not to exceed One
Hundred and no/104ths ($100.00) Dollars, incurred in connection with the
Processing of documents necessary to riving of such consent.
W. h'ICIOD HARMLESS
Tenant shall indemnify and hold Landlord harmless from and against
any and all claims arising from Tenant's use of the Premises or from the
conduct of Tenant's business or from any activity, wore, or other things
done or permitted by the'Tenant in or about the Premises, and shall further
indemnify and hold Landlord harmless from and against any and all claims
arising from any breach or default in the performance of any obligation of
Tenant's part to be performed under the terms of this Lease, or arising
from any act or negligence of the Tenant, or any officer, agent, employee,
Quest, or invitee of Tenant, and from all costs, attorneey's fees, and
liabilities incurred in or about the defense of any such claim or any
action or proceeding brought thereon and in case any action or proceeding
be brought against Landlord by reason of such claim, Tenant upon notice
from Landlord shall defend the same at Tenant's expense by counsel
reasonably satisfactory to Landlord. Tenant, as a material part of the
considerarion to Landlord, assumes all risk; of damage to property or injury
to persons in, upon or about the Premises, from any cause other than
Landlord's negligence and Tenant hereby waives all claims in respect
thereof against Landlord. Tenant shall give prompt notice to Landlord in
came of casualty or accidents in or about the Premises.
Landlord or its agents shall not be liablo fob any lass or damage to
persons or property resulting from fire, explosion, falling plaster, steam,
gas, electricity, water or rain which may lead: from any part of the
Premises or Building or from the pipes, appliances or plumbing works
thereon or from the roof, street or subsurface or from any other place
resulting from dampness or any other cause whatsoever, unless caused by or
due to the negligence of Landlord, its agents, servants or employees.
Landlord or its agents shall not be liable for interference with the light,
air or for any latent defect in they Premises.
14. I NS'UI \(}�IvQ
(a) Tenant shall, prior -to the commencement of the Term, secure from
a good and responsible insurance company doing business in the State of
California, and maintain during the entire Term, the followig imsurancel
Bodily injury and property damage liability insurance in connection with
the use or condition of the Premises in an amount not less than $500,000
for injury to or death of one person in any one accident, $1,000,000 for
injury to or death to any number of persons in any one accident, and
$250,000 for damage to or destruction of property; provided, however,
Tenant may self"insure as to all or any part of the foregoing insurance
requirements.
(b) Tenant shall cause Landlord to be named as additional insured
under any policy of insurance which may be procured and shall cause to be
delivered to Landlord, prior to the commencement of the Term, a certificate
:issued by the insurance company issuing such policy stating that swch
insurance coverage is in effect and may not be cancelled or altered without
ten (10) days' prior written notice to Landlord. Any such insurance policy
shall provide that the proceeds thereof shall be payable to Landlord,
Tenant and any third parties as their interests may appear.
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15. RULES AND REGULATIONS
Tenant shall faithfully observe and comply with the rules and
regulations printed on or annexed to this Lease and all reasonable
modifications of and additions thereto from time to time put into effect by
Landlord; provided that in the event of Such modification' Landlord shall
give prior written notice to Tenant. Landlord shall not be responsible to
Tenant for the failure of any other tenant or occupant of the Building to
abide by any of said rules and regulations.
16. HOLDING OVER
If, with Landlord's consent, Tenant holds possession of the Premises
after the expiration of the Lease term, Tenant shall become a tenant from
month to month to upon the terms specified in this Lease but at a monthly
rental equivalent to the then prevailing rental paid by Tenant at the
expiration of the Term pursuant to all of the provisions of Section 3,
payable in advance on or before the first day of each month. Tenant shall
continue in possession until such tenancy shall be terminated by Landlord
upon seven (7) days written notice or until Tenant shall have given to
Landlord a written notice of his intention to terminate much tenancy at
leash one month prior to the date of termination of such monthly tenancy.
17. ENTRY-SY LANDLORD
Landlord reserves and shall at any and all times have the right to
enter the Premises to inspect the same, to supply janitorial service and
any other service to be provided by Landlord to Tenant under the terms of
this Leasev to allow prospective purchasers or tenants to inspect the/
Premises, to post notices of nonresponsibility and to alter, improve or
repair, the Premises and any portion of the Building, without abatement of
pent, 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 entrance to the Premises shall not be blocked
thereby and further, providing that the business of Tenant shall not be
interfered with unreasonably. Tenant 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 these purposes, 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 obtain entry to the Premises or any portion thereof in an
emergency, and any entry to the Premises obtained by Landlord by any of
said means, or otherwise, shall not be con!:-itrued or deemed to be a forcib1ew
or unlawful entry into, or a detainer of the Premises or an eviction of
Tenant from the Premises or any portion thereof.
18. DEFAULT
The occurrence of any of the following events shall constitute a
material default and breach of this Lease by Tenant:
(1) Any failure by Tenant to pay the rental or to make any other
payments required to be made by Tenant hereunder where such failure -
continues for three (3) days after written notice thereof by Landlord to
Tenant.
(ii) The abandonment or vacation of the Premises by Tenant.
MY A 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 thirty (30) day, after written notice of such default by
Landlord to Tenant; provided, however,, that if the nature of such default
is such that it cannot reasonably be cured within such thirty -day period
Tenant shall not be deemed to be in default if Tenant shall within such
thirty -day period commence such cure and then diligently prosecute the cure
to completion.
(iv) The making by Tenant of any general assignment for the benefit
Of its creditors; the filing by or against Tenant of a petition to have
Tenant adjudged a bankrupt or of a petition for reorganization or
arrangement under any law relating to bankruptcy (unless, in the case of a
Petition filed against Tenant, the same is dismissed within sixty (60)
days); the appointment of a trustee Or receiver to take possession of
substantially all of Tenant's assets located on the Premises or of Tenant's
imtereat in this Lease, where Possession is not restored to Tenant within
thirty (0) days; or the attachment, execution Of other Judicial seizure of
substantially all of Tenant's assets located on the Premises or of Tenant's
interest in thW Lease, where such seizure is not discharged within thirty
(30) days,
19. REMCb I 5S_ L1FEN Q FAULT
In the event of any such default by Tenant, then in addition to any
rather remedies available to Landlord at law or in equity, Landlord shall
have the option to terminate this Lease and all rights of Tenant under this
Lease immediately by giving written notice of such intention to terminate.
In the event that Landlord shall elect to so terminate this Lease, then
Landlord may recover from Tenants
(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 could have been
reasonably avoided; plus
(iii) the worth at the time of award of the amount which the unpaid
rent for the balance of the term after the time of award exceeds the amount
of such rentail loss that Tenant proves could be reasonably avoided; plus
(iv) any Other amount necessary to compensate Landlord for all the
detriment prOXimately caused by Tenant's failure to perform his obligations
under this Lease, and
(v) at Landlord's election, such ether amounts in addition to or in
lieu of the above remedies as may be permitted from time to Limo by
California law,
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The'term "rent", as used in this Lease, shall mean rental, rental
adjustments, payments and all other sums required to be paid by Tenant
Pursuant to the terms of this Lease.
As used in subparagraphs (i) and (ii) above, the "worth at the time
Of award" is Computed by allowing interest at the rate of ten (14.1%) percent
Per annum. As used in subparagraphs (iii) above, the "worth at the time of
award" is computed by discounting such amount at the discount rate of the
Federal Reserve Hanle of San Francisco at the time of award plus one (1%)
percent.
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 by Landlord on
behalf of Tenant at Tenant's scale cost and expense.
If Tenant vacates or abandons the Premises or if Landlord elects to
re --enter the Premises as provided above, or if Landlord tapes possession of
the Premises pursuant to legal proceedings or pursuant to any notice
provided by law, then if Landlord does not elect to terminate this Lease as
provided above, then Landlord 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 or terms and conditions as
Landlord in its sole discretion may deem advisable.
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 under this Lease from
Tenant to Landlordi second to the payment of any cost of such reletting;
third, to the. payment of the cost of any alterations and reapirs to they
Premises by Landlord after such retaking4 fourth, to the payment of rent
due and unpaid under this Lease; and the residue, if any, shall be held by
Landlord and applied to the payment of future rent as the same may becomes
due and payable under this Lease. Should that portion of such rentals
received from such reletting during any month, which is applied to the
payment of rent under this Lease, be less than the rent payable during that
month by Tenant, then Tenant shall pay such deficiency to Landlord
immediately upon demand 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 alterations and repairs not covered by the rentals
received from such reletting.
No re-eyrhtry or taking possession of the Premises by Landlord pursuant
to this Section 19 shah, be construed as an election to terminate this
Lease unless a written notice of such intention is given to Tenant or
unless the termination of the Lease is 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 by reason of prior default.
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20. FBEC ONSi'Ft cil q
In the event the Premises or the Building are damaged by -Fire or
other perils covered by extended coverage insurance, Landlord agrees to
repair the same and this Lease shall remain in full force and effect,
except that Tenant shall be entitled to a proportionate reduction of rent
while such repairs are being made, such proportionate reduction to be based
upon the extent to which the making of such repairs or the damage shall
interfere with the business carried on by Tenant in the Premises as
determined by Landlord.
In the event the Promises or the Building are damaged as a result of
any cause other than the perils covered by fire and extended coverage
insurance, then Landlord shall repair such damage provided the extent of
the destruction is less than twenty—five (25%) percent of the then full
replacement value of the premises or the Building. in the event of the
destruction of the Premises or of the Building to an extent greater than
twenty-five (25%) percent of the then full replacement value, them Landlord
Shall have the option eithere (1) to repair or restore such damage, this
Lease continuing in full farce and effect, but the rent to be
propartionAWY reduced as stated above in this Section; or (2 ) give notice
to Tenant at any time within thirty (30) days after such damage,
terminating this. Lease as of the date specified in such notice, which date
shall be no less than thirty (30) nor more than sixty (60) days after
giving such notice. In the event Landlord giv6s such notice, this Lease
shall expire and all interest of the Tenant in the Premises shall terminate
on the date so specified in the notice and the rent, reduced to the extent,
if any, to which such damage interfered with the business carried on by
Tenant in the Premises, shall be paid up to the date of such termination.
Notwithstanding anything to the contrary contained in this Section,
Landlord shall not have any obligation whatsoever to repair, reconstruct Or
restore the premi.sos when the damage resulting from any casualty not
covered by insurance under this Section occurs during the last twelve (12)
months of the Term or any extension thereof.
Landlord shall not be required to repair any injury or damage by fire
or other cause if not covered by Landlord's insurance, or to make any
repairs or replacement of any panels, decoration, office fixtures, railing,
ceiling, floc►r covering, partitions, or any other property installed in the
'remises by Tenant. The preceding sentence shall not apply to any propety
or fixtures installed on or in the Premises by Landlord or any of its
agents, employees or contractors at Landlord's request; in such event the
ether provisions of this Section shall control.
Clauses, plats and riders, if any, sinned by Landlord and Tenant and
endorsed on or affixed to this Lease are a part of this Lease.
23. SALE 8Y Q DLORD
In the event of a sale or conveyance by Landlord of the 1Sui.lding,
such sale shall operate to release Landlord from any future liability under
any of the convenants or conditions, expressed or implied, contained In the
Lease in favor of Tenant, and in such went Tenant agrees to loaf: solely to
Landlord's successor in interest. This Lease shall not be affected by any
such sale and Tenant agrees to attorn to Landlord's successor.
The voluntary or other surrender of this Lease by Tenant, ar a mutual
cancellation thereof, shall not word, a merger, and Shall, at the option of
the Landlord, terminate all or any eXisting subleases or subtenancies, or may, at the option of Landlord, operate as an assignment to it of any or
all of such subleases or sub tenancies.
25. A
The waiver by Landlord of any term, covenant or condition contained
in this Lease shall not be deemed to be a waiver of such term, covenant or
condition or any subsequent breach of the same or any other term,,covenant
or condition contained in the Lease. The subsequent acceptance of rent by
Landlord shall not be deemed to be a waiver of any preceding breach by
Tenant of any term, covenant Or condition of this Lease, other than they
failur"e of Tenant to pay the particular rental so accepted, regardless of
such rent.
Landlord's knowledge of Such preceding breach at the time of acceptance of
u
26. D g F1NF M
U TM ANDMA I NFL F IC"D I NCt3
The words "Landlord" and "Tenant" as used herein shall include the
Plural as well as the singular. Words used in masculine gender include the
feminine and neuter. If there be more than one "tenant the obligations
imposed under this Lease upon Tenant shall be joint and several. The
marginal headings and titles to the paragraphs of this Lease are not a part
of this Lease an shall have no effect upon the construction ar
interpretation of any part of this, Lease.
27. ER x Ci F C I M NT_
This Lease contains all of the agreements between the parties to this
Lease with respect to any matter covered or mentioned in this Lease, and no
prior agreements Or understanding pertaininq to any such matters shall be
effective for any purpose. No provision of this Lease may be amendod or
added to eXcept by an agreement in writing sinned by the parties to this:
Lease or their tespective successors in interest. This Lease shall not he
effective or binding on any party until fully executed by both parties.
20. 1NA.P. . In _!'Q _PE..lCi!" ORM
This Lease and the obligations of the Tenant hereunder shall not be
affected or impaired because the Landlord is unable to fulfill any of its
obligation under this Lease or is delayed in doing so, if Such inability or
delay is caused by reason of strife, labor trOLtbies, acts of God, or any
other cause beyond the reasonable control of the Landlord.
29. EA6 Z_I F L I NVN ] D 7 TY
Any provision of this Lease which shall prove to be invalid or illegal
shall in no way affect, impair or invalidate any other provision of this
Lease and all such other provisions shall remain in full farce and effect.
12 _..
'rr. cUMW=-A IV !F R)2.-XES
No remedy or election hereunder shell be deemed eXclusive but shall,
whenever possible, be cumulative with all other remedies at law or in
equity,
This Luse shell be governed by the laws of the States of California.
32. F�iTClkIVYS �'
In the event of any action or dispute concerning any provision of
this Lease the prevailing Party shall be entitled to recover the actual
fees of its attorney, and court costs in such action, proceeding or disputes
including the cost of appeal, if any.
��•;�U�rCI��,�N,F��I'TCJ�I/F��'T;f��I�,MChli'.
l.lpom request of the Landlord, Tenant will, in writing, subordinate
its right under this Lease to the lien 01 any mortgage- nr deed of trust to
any bank:, insurances company or other lending institution, now or hereafter
in farce against the Premises. and to all advances made or hereafter to bea
made upon they security thereof.
In the event any procn�+dings are brought forforeclosure, or in the
event of the exercise of the power of sale under any MOrtgage or deed of
trust made by the Landlord,
shall fallowing such foreclosure or sale, Tenant
recognize swch purchaser as the Landlord under this Lease.
The provisions of this Article to the Contrary notwithstanding, and
long as Tenant is not�in default hereunder, this Lease shall remain in
full force and effect for the full Lease term.
:,4. E`F1Ft!LjNG
each tenant is responsible for securing his awn monthly or temporary
Parking in the City of Santa Ana Parking Garage, located can Birch And Third
Streets, immediately adjacent to the premises. Contracts and payments
between the Tenant and the City of Santa Aria for parking are separate
contracts and not affected in any way by this Agreement.
_.. 13 _..
SIGNS
All signs, door lettering, window lettering and identifying material
Placed in or, upon the Premises, or the nuilding shall be approved by
Landlord, in LAndlord's sole discretion, and shall be installed by
Landlord, with Tenant bearing the cost of such installation.
All signs, lettering and approved
and in good taste. Tenant shall, at all
identification and Landlord shall not be
identification shall be discreet
times, maintain such sirens and
responsible for such maintenance.
Any notices, demand, request, consent, approval, or communication
that either party desires or is required to give the other party or any
rather person shall be in writing and either served personally or sent by
prepaid, first-class mail. Any notice, demand, request, consent, approval
Or communication that either party desires or is required to give to the
other party shall be addressed to the rather party at the address set forth
below. Either party may change its address by notifying the other party of
the change of address. Notice shall be deemed communicated within
'Forty-eight (48) hours from the time of mailing if mailed as Provided in
this Section.
TO LANDLORD AT; 412 West 4th Street, Suite 201.
Santa Ana, California
TO TENANT AT. 20 Civic center Plaza, PO Box 1988 M-25
Santa Ana, CA 92702
37. trNANT 7I-ggtr,IVY
Tenant shall at any time, and from time to time, upon not less than
three (:5) days prior written notice from Landlord, erecutey acknowledge and
deliver to Landlord a statement in writinr4 (A) Certifying that this Lease
is unmodified and in full force and effect or, if modified, stating the
nature of such modification and certifying that this Lease as so modified
is in full force and effect and the date to which the rental and other
charge&; are paid in advance, and (b) ticknowledging that there are not, to
Tenant's knowledge, any uncured defaults, on the part of Landlord under this
Lease, or" specifying such defaults if any are+ claimed, and (c) setting
forth the date of commencement of rents and expeiration of the Term. Any
such statement may be relied upon by the prospective purchaser or
encumbrancer -of all or any portion of the real property of which they
Premises are a part.
S. AUTI-,i T"Y C1 �"i NAN
If Tenant is a corporation, each individual executing this Lease on
hehalf of said corporation represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of said corporation
in accordance with the by-laws of said corporation and that this Lease is
binding upon said corporation.
- 14 -
39.
Landlord, Steven J. Keisar, hereby discloses that he is a licensed
Real Estate Salesman. Landlord warrants that there is no real estate
broker or agent who is entitled to a commission in connection with this
40. LIME
Time is of the assence of this Lease and each and all of its
provisions.
41.
The covenants and conditions contained in this Lease sha%1v subject
to the provisions as to assignment, apply to and bind the heirs,
successors, executors, administrators and assigns of the parties to this
Lease.
42.
(a) Wpan the beginning of the second year of the Lease term and upo;
the bsaginm6ng~of each subsequent year of the Lease term, Tenant shall pay
to Landlord, as additional rent* Tenant's pro-rata share of any increase 1/
direct expenses, as hereinafter defined, for the operation and maintenance
costs and expenses attributable to the Building, over and above the direct
expenses actually incurred during the calendar year in which the Lease ter'
commenced. Tenant's pro-rata share of any such increase shall equal the
sum obtained by multiplying the increase in expenses times the percentage
obtained by dividing the total square footage contained in the Building
into the total square -footage of the Premises. Said percentage is hereby
agreed upon as _��OoLt—
of 410 W. 4th Street, Santa Ana T. The ter ldirLAct expenses" as used
herein shall inclu�e all di costs of operation and maintenance an
determined by standard accounting practicesq and shall include the
following costs by way of illustration but not by way of limitatiOn"
water, trash removal and sewer charges; utilities; property management;
common area maintenance (including maintaining and repairing heating and
air conditioning equipment); janitorial services; and supplies, "..°.e.^.^~,
equipment, and labor costs incurred in the maintenance and upkeep of all
1andscapimg* and repair or replacement of parking and common areas,
including monument signs and external lighting. The term "direct expenses
shall not include depreciation on the Building or equipment therein,
interest on debt secured by the building, or real estate broker's
commissions"
(b) Tenant shall pay to Landlord an amount estimated by Landlord tc
be Temant's monthly share of such increase in direct expenses (as defined
above), in advance, on them fipst day of each calendar month of the Lease
term commencing upon the beginning of the second year of the Lease term.
Landlord m'-v from time to time, adjust the amount of the estimated 6irec^
wex�»emses may,
basis of Landlord's reasonably anticipated costs for the
tin~~' period. �m �ccoun��n� period is the calendar year except that
accounting p " the portion f the comlendAr year fro/
the first accounting period shall be e p�r c»
o
the beginning of the first year of the Lease term to the end of that
calendar year, and the last accounting period shall he the portion of the
calendar, year ' terminates.ending on the date the Lease Term expires or terminates.
Landlord shall furnish to Tenant a statement showing the total amount of
the increase in direct expenses, Tenant's share of such increase in direct
exPenses for the acccounting periodv and the payments made by Tenant for
each accounting period, within sixty (60) days after the end of each
accounting period or as soon thereafter as reasonably poseibIev covering
the accounting period Just ended. If Tenant's share of such increase in
direct expens'es for the accounting period exceeds the payments made by
Tenant, Tenant shall pay Landlord the deficiency within ten (10) days after
receipt of the statement. If Tenant's payments made duping the accounting
Period exceed Tenant's share of such increase in direct ewpenses, Landlord
shall pay Tenant the excess at the time Landlord furnished a statement to
Tenant.
/
Executed this day of 1����~at Santa Ana,
California. '--
TE
"k of the Counci
Lof7
CITY OF SANTA ANA, A MUNICIPAL
APPROVED AS TO FORM: LANDLORD, 3TEVEN J. KDISEB
By:
CITY ATTORNEY TER
-16-
EXHIBIT B lie
GX,
MODIFICATIONS
1. Add wall and
3' 0" Metal Door �,� STA�A�6�S �. I�ak+r��►
2. Change existing - �•
door to i
310" metal door��
3. Remove carpet and dX
place in storage.
l- \
Revooe- cap -et �� it
X_
' O O
N -
EXHIBIT C
SCHEDULE OF MODIFICATIONS AND EXPENSE BREAKDOWN
1. Landlord, at Landlord's expense shall build a new wall as shown
on Exhibit B, #1, and provide opening for 310" door.
2. Landlord, at Tenant's expense, shall. install 3'0" metal door and
metal frame in opening in new wall, #1 on Exhibit B.
3. Landlord, at Tendht's- expense, shall change existing wood door
to metal door and metal frame at #2 on Exhibit B.
4. Landlord, at Landlord's expense, shall remove existing carpet from
fleea of premises, except from office area located in northeast
corner of Leased Premises. If possible, rolled carpet to be ].eft
against a wall in premises to be put•back after Tenant vacates
Premises (To be agreed upon between parties).
(initial if approved)