OFFICE LEASE
THIS OFFICE LEASE ("Lease") is made and entered into by and between MAGUIRE PROPERTIES-SAN DIEGO TECH CENTER, LLC, a Delaware limited liability company ("Landlord") and the Tenant described in Item 1 of the Basic Lease Provisions as of April 30, 2010 (the "Effective Date").
BASIC LEASE PROVISIONS
1. Tenant: YONATURALS INCORPORATED, a California corporation ("Original Tenant")
2. Description of Project/Building/Premises:
| | |
2.1 | Project: | That certain real estate project commonly known as the San Diego Tech Center (the "Project") located in San Diego, California. The Project currently includes the buildings commonly known as 9605 Scranton Road ("Building 1"), 9645 Scranton Road ("Building 2"), 9725 Scranton Road ("Building 3"), 9685 |
| | Scranton Road ("Building 3D"), 9805 Scranton Road ("Building 4"),9855 Scranton Road ("Building 5"), |
| | 10055 Bames Canyon ("Building SA"), 10075 Barnes Canyon ("Building SB"), 10065 Barnes Canyon |
| | ("Building 5C"), 9675 Scranton Road (currently a free-standing restaurant), 9375 Scranton Road, landscape, |
| | sidewalks and adjacent parking areas, all the real property underlying the foregoing, and all appurtenances to |
| | the foregoing. All of the above described buildings are sometimes referred to herein collectively as the |
| | "Buildings". |
2.2 |
Building: |
The building located at 9605 Scranton Road, San Diego, California. |
2.3 Initial Premises: Suite 390 of the Building (the Premises isshown on Exhibit "A")
2.4 Rentable Area: Approximately 3,907 square feet (Section 1.3).
3. Term:
3.1 Initial Term: Sixty-three (63) months, commencing on the Commencement Date.
3.2 Commencement Date: The date011which the Premises are Ready for Occupancy (defined in Section 2.2, below),
3.3 Target Commencement Date: May 1,2010.
4. Base Rent (Article 3): Subject to Section 3.1.2, Tenant shall pay Base Rent as follows:
Months
1 -12
13 -24
25 - 36
37 - 48
49 - 60
61 - 63
Monthly Base Rental Rate
($/RSF/mo.)
$2.30
$2.37
$2.44
$2.51
$2.59
$2.67
Base Rent
($/mo.)
$8,986.10
$9,259.59
$9,533.08
$9,806.57
$10,119.13
$10,431.69
Base Rent
($/yr.)
$107,833.20
$111,115.08
$114,396.96
$117,678.84
$121,429.56
$125,180.28
5. Additional Rent (Article 4):
5.1 Base Year: 2010
5.2 Tenant's Percentage Share: 2.46% (Section 4.2)
6. Security Deposit: $10,431.69 (Article 6)
7. Parking Passes: Tenant shall rent from Landlord, at no additional charge during the Initial Term, sixteen (16) Parking Passes
(defined below). (Article 20)
8. Broker(s): CB Richard Ellis, representing Tenant, and Jones Lang LaSalle, representing Landlord (Article 27)
9. Permitted Use: General office use consistent with a first class commercial office project. (Section 7.1)
10. Addresses for Notices (Article 26):
To: Tenant
Prior to the Commcncement Date: After the Commencement Date:
At the Premises:
Attn: Office Manager
Suite
Attn: ~ _
To: Landlord With a copy to:
Maguire Properties-Mission City Center, LLC
c/o Maguire Properties, L.P.
355 South Grand Avenue, Floor 33
Los Angeles, California 90071
Attn: Senior Vice President Leasing
Maguire Properties, L.P.
9605 Scranton Road, Suite 100
San Diego, California 92121
Attn: Asset Manager
And with a copy to:
Gilchrist &Rutter Professional Corporation
1299 Oeean Avenue,9!hFloor
Santa Monica, CA 90401
Attn: David B. Lambert, Esq.
11. Address for Payments: All payments payable to Landlord under this Leaseshall be sent to the following address or tosuch other address as Landlord may designate, or by wire transfer.
Maguire Properties-San Diego Tech Center, LLC Unit F
P.O. Box 51919
Los Angeles, California 90051-6219
If by wire transfer:
u.s.Bank, San DiegoMain Branch, 600 W Broadway #100,San Diego,CA 92101
ABA#: 122-235-821
Account #: 153454490720
Account Name: Maguire Properties-San Diego Tech Center, LLC Lockbox
Reference: YoNaturals/Building 1, Suite 390
12. Guarantor/Additional Security: None
ThisLease shallconsist of the foregoing Basic Lease Provisions,and the provisions of the Standard Lease Provisions (the "Standard Lease Provisions") (consisting of Sections 1 through 30 which follow) and Exhibits "A" through "E", inclusive,allofwhich are incorporated herein bythis reference as of the Effective Date. In the event of any conflict between the provisions of the Basic Lease Provisions and the provisionsof the Standard Lease Provisions, the Standard Lease Provisions shall control. Any initially capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Standard Lease Provisions.
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STANDARD LEASE PIWVISIONS
ARTICLE 1 - PREMISES
1.1 Lease of Premises; Access.
1.1.1 Landlord hereby leases the Premises (defined below) to Tenant (defined below), and Tenant hereby leases the Premises from Landlord, upon all of the terms, covenants and conditions contained in this Lease. The "Premises" means the Initial Premises together with any other space in the Building or Project leased by Tenant hereunder and "Tenant" means the Original Tenant and any assign of all of the Original Tenant's interest in this Lease in accordance with Article 15, below).
1.1.2 Subject to Landlord's access control programs and all of the terms and conditions of this Lease, Tenant and its employees shall have access to the Premises, twenty-four (24) hours per day, seven (7) days per week, during the Term of the Lease.
J.2 Acceptance of Premises. Tenant acknowledges that Landlord has not made any representation or warranty with respect to the condition of the Premises, the Building or the Project with respect to the suitability or fitness of any of the same for the conduct of Tenant's Permitted Use, its business or for any other purpose. Subject to all of the terms and conditions of this Lease, acceptance of possession of the Premises by Tenant shall be conclusive evidence as against Tenant that the Premises are then in tenantable and good condition.
1.3 Measurement of the Rentable Area of Premises and the Building.
1.3.1 For purposes of this Lease, subject to the provisions of Section 1.3.2, the parties hereby stipulate that the number of rentable square feet contained within the Premises is as set forth in Item 2.2 of the Basic Lease Provisions.
1.3.2 The "Rentable Area" or "rentable square feet" and "Usable Area" or "usable square feet" shall be calculated by Landlord substantially in accordance with the Standard Method [or Measuring Floor Area in Office Buildings, ANSI Z65.1 -
1996 ("BOMA"); provided, however, that in any case the Rentable Area of the Building shall include all of, and the Rentable Area of the Premises shall include a portion of, the square footage of the ground floor of thc Common Areas (defined in Section lA, below) of the Building and the Common Areas of the Project, as the case may be, and occupied space of the portion of the Building or Project dedicated to the service of the Building. Landlord reserves the right to modify (i) the standards utilized hereunder for the measurement of Rentable Area and Usable Area (so long as any such modification is reasonably consistent with then prevailing Institutional Owner Practices (defined below) and (ii) consistent with any such modifications of measurement standards, the totals of Rentable Area and Usable Area set forth or utilized herein with respect to the Premises, the Building and/or portions thereof and any economic terms set forth herein (such as Base Rent, Security Deposit and Tenant's Percentage Share) ("Economic Terms") calculated on the basis thereof.
1.4 Common Areas. "Common Areas" means the lobby, plaza and sidewalk areas, accessways, parking lots and/or parking structures, trash facilities, stairs, and area on the individual floors in the Building or the other Buildings located at the Project devoted to corridors, fire vestibules, elevators, foyers, lobbies, electric and telephone closets, restrooms, mechanical rooms, janitor's closets, and other similar facilities for the benefit of all tenants and invitees of the Project, and all other areas of the Project not leased or not intended by Landlord to be leased to tenants, as may be designated by Landlord from time to time (including the Project aerobic center, fitness center, volleyball courts, tennis courts and racquetball court or any other similar facilities which may exist in the Project from time to time), and shall also mean those areas of the Building and the Project devoted to mechanical and service rooms servicing the Building and the other Buildings at the Project. The Common Areas shall be subject to the exclusive management and control of Landlord, and Tenant shall comply with all Rules and Regulations (defined in Section 21) pertaining to the Common Areas. Tenant acknowledges and agrees that Landlord, in itssole discretion, shall have the right from time to time to designate, relocate and limited the use of a particular area, eliminate, alter, modify, construct new improvements in or upon, limit or otherwise make such decisions with respects to the various components and/or portions of the Common Areas as Landlord in good faith deems appropriate. Landlord shall also have the right to close all or any portion of the Common Areas as may, in the sole discretion of Landlord, be necessary to prevent a dedication thereof or the accrual of any rights in any person.
ARTICLE 2 - TERM
2.1 Term. Unless earlier terminated in accordance with the provisions hereof, the initial term of this Lease shall be the period shown in Item 3.1 of the Basic Lease Provisions. At any time during the Lease Term, Landlord may deliver to Tenant a notice in the form as set in Exhibit "B" attached hereto, which Tenant shall execute and return to Landlord within five (5) days of receipt thereof. As used herein,"Term" shall refer to the initial term described in Item 3.1 of the Basic Lease Provisions.
2.2 Commencement; Early Occupancy.
2.2.1 The Term shall commence on the Commencement Date as defined in Item 3.2 of the Basic Lease Provisions; provided, however, that in the event the Term shall commence on a day other than the first day of any calendar month, for purposes of calculating the Expiration Date and the timing of all scheduled increases in Base Rent during the Term, the Commencement Date shall be
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deemed to be the first day of the calendar month following the Commencement Date. The term "Ready for Occupancy" means the date determined by Landlord's architect or space planner to be the date of Substantial Completion of the Tenant Improvements (as such terms arc defined in the Work Letter (defined below); provided, however, if Landlord is delayed in achieving substantial completion of the Tenant Improvements by reason of any Tenant Delays (defined in the Work Letter) or delays caused by any event described in Section 30.2 below ("Force Majeure Delays"), the Premises shall bedeemedReady for Occupancy on the date substantial completion of the Tenant Improvements would have occurred had the Tenant Delays or Force Majeure Delays not occurred, as determined by Landlord's architect or space planner. This Lease shall be a binding contractual obligation effective upon execution hereof by Landlord and Tenant notwithstanding the later commencement of the Term of this Lease.
2.2.2 Subject to all of the terms and conditions of Section 5.1 of the Work Letter (defined below), Tenant shall have the right to enter the Premises prior to the Commencement Date for the purposes described in Section 5.1 of the Work Letter. For the avoidance of doubt, Tenant's entry into the Premises prior to the Commencement Date shall be subject to all of the terms and conditions of this Lease; provided that Tenant shall have no obligation to pay any Base Rent or any Additional Rent under ArticJ4 prior to the Commencement Date.
2.3 Delay in Commencement. Landlord may deliver the Premises to Tenant prior to, on or after the Target Commencement Date specified in Item 3.3 of the Basic Lease Provisions; provided, however, that in the event the Commencement Date is delayed or otherwise does not occur on the Target Commencement Date this Lease shall not be void or voidable, the Term of this Lease shall not be extended, and Landlord shall not be liable to Tenant for any loss or damage resulting therefrom.
ARTICLE 3 -RENT; LATE CHANGES
3.1 Base Rent; Rent.
3.1.1 Subject to Section 3.1.2, below, Tenant agrees to pay during the Term of this Lease as Base Rent ("Base
Rent") for the Premises the sums shown for such periods in Item 4 of the Basic Lease Provisions.
3.1.2 Provided that no Event of Default (defined below) has occurred, T, enant's obligation to pay Base Rent for each of the second (2nd), third (3'd), fourth (4Ih), tenth (loth) and eleventh (l1th) months of the Initial Term shall be fully abated (the total amount of Base Rent so abated is referred to as the "Abated Base Rent Amount"). Landlord and Tenant agree that the Abated Base Rent Amount is $44,930.50. Notwithstanding the foregoing, should an Event of Default occur, then: (a) this Section 3.1.2 shall automatically and immediately become null, void and of no further force or effect and (b) the Abated Base Rent Amount (to the extent applied to reduce Tenant's Base Rent obligations prior to the occurrence of such Event of Default) shall immediately and without notice or demand become due and payable by Tenant to Landlord.
3.1.3 Except as expressly provided to the contrary in this Lease, Base Rent shall be payable in equal consecutive monthly installments, in advance, without abatement, deduction or offset, commencing on the Commencement Date and continuing on the first day of each calendar month thereafter. The first full monthly installment of Base Rent, described in Item 4 of the Basic Lease Provisions, shall be payable upon Tenant's execution of this Lease. If the Commencement Date is a day other than the first day of a calendar month, then the Base Rent (the "Partial Lease Month Rent") for the partial month in which the Commencement Date occurs shall be calculated on a per diem basis determined by dividing the initial monthly Base Rent shown in Item 4 of the Basic Lease Provisions by the number of days insuchcalendar month and by multiplying such amount by the number of remaining days of such calendar month from and including the Commencement Date. The Partial Lease Month Rent shall be payable by Tenant prior to the date that Tenant takes possession or commences use of the Premises for any business purpose (including moving in).
3.1.4 Base Rent, all forms of Additional Rent (defined below) payable hereunder by Tenant and all other amounts, fees,payments or charges payable hereunder by Tenant shall (i) each constitute rent payable hereunder (and shall sometimes collectively be referred to herein as "Rent"), (ii) be payable to Landlord when due without any prior notice or demand therefor in lawful money of the United States and, except as may be expressly provided to the contrary herein, without any abatement, offset or deduction whatsoever and (iii) be payable to Landlord at the address of Landlord described in Item 10of the Basic Lease Provisions or to such other person or to such
other place asLandlord may from time to time designate in writing to Tenant.
3.1.5 No payment by Tenant or receipt by Landlord ofalesser amount than the correct Rent due hereunder shall be deemed to be other than a payment on account; nor shall any endorsement or statement on any check or any letter accompanying any check or payment be deemed to effect or evidence an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance or pursue any other remedy in this Lease or at law or in equity provided.
3.2 Late Charge; Interest. Tenant acknowledges that the late payment of Base Rent, Additional Rent or any other amounts payable by Tenant to Landlord hereunder will cause Landlord to incur administrative costs and other damages, the exact amount of which would be impracticable or extremely difficult to ascertain, Landlord and Tenant agree that if Landlord does not receive any such payment on or before the date five (5) days after the date the payment is due, Tenant shall pay to Landlord, as Additional Rent, (i) a late charge ("Late Charge") equal to five percent (5%) of the overdue amount to cover such additional administrative costs, and (ii) interest on all
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delinquent amounts at an annual rate of interest (the "Default Rate") equal to lesser of (l) the Prime Rate (defined below) plus eight percent (8%) or (2) the maximum amount allowed by Law, from the date due until the date paid.
3.3 Additional Rent. For purposes of this Lease, allamounts(other than BaseRent) payable by Tenant to Landlord pursuant to this Lease, whether or not denominated as such,shall constitute additional rent ("Additional Rent") hereunder.
ARTICLE 4 - ADDITIONAL RENTAL
4.1 Payment of Excess Operating Expenses and Excess Property Taxes.
4.1.1 Subject to the provisions of this Lease, in addition to paying Base Rent pursuant to Article 3 of this Lease, with respect to each Expense Year (defined below) Tenant shall also pay as Additional Rent Tenant's Percentage Share (defined below) of the positive excess, if any, of Operating Expenses (defined below) allocable hereunder to such Expense Year over Operating Expenses allocable hereunder to thc Base Year (defined below).
4.1.2 Subject to the provisions of this Lease, in addition to paying Base Rent pursuant to Article 3 of this Lease, with respect to each Expense Year Tenant shall also pay as Additional Rent Tenant's Percentage Share of the positive excess, if any, of the Property Taxes (defined below) allocable hereunder to such Expense Year over the Property Taxes allocable hereunder to the Base Year.
4.1.3 Subject to the provisions of this Lease, in addition to paying Base Rent pursuant to Article 3 of this Lease, with respect to each Expense Year Tenant shall also pay as Additional Rent, Tenant's Percentage Share of Utility Costs allocable hereunder to such Expense Year.
4.2 Definitions.
4.2.1 "Base Year" means the calendar year specified in Item 5.1 of the Basic Lease Provisions. "Expense Year" means each calendar year in which any portion of the Term of this Lease falls, through and including the calendar year in which the Term of thisLease expires.
4.2.2 "Property Taxes" means all real property taxes, assessments,fees, charges, or impositions and othersimilar governmental or quasi-governmental ad valorem or other charges levied on or attributableto the Building and thelandon which it is located (and all improvements from time to time located thereon), and to the extent allocated to the Building in accordance with Section
4.3.3,below, levied on or attributable to the other portionsof the Project and the land on which it is located (including, without limitation, the Common Areas), or its ownership, operation or transfer of any and every type, kind, category or nature, whether direct or indirect, general or special, ordinary or extraordinary and all taxes, assessments, fees, charges or similar impositions imposed in lieu or substitution (partially or totally) of the sameincluding,without limitation, all taxes,assessments, levies, charges or impositions (i) on any interest of Landlord or any mortgagee of Landlord in the Project (to the extent provided above), the Building, the Premises or in this Lease, or on the occupancy or use of space in the Building or the Premises; (ii) on the gross or net rentals or income from the Project (to the extent provided above)Of the Building, including, without limitation, any gross income tax, excise tax, sales tax or gross receipts tax levied by any federal, state or local governmental entity with respect to the receipt of rent; (iii) on any transit taxesor charges, business or licensefees or taxes, annual or periodic license or use fees, park and/or school fees, arts charges, parks charges, housing fund charges; (iv) imposed for street, refuse,police, sidewalks,fire protection and/or similarservices and/or maintenance,whether previously provided withoutcharge or for a different charge, whether provided by governmental agencies or private parties, and whether charged directly or indirectly through a funding mechanism designed to enhance or augment benefits and/or services provided by governmental or quasi-governmental agencies; (v) on any possessory taxes charged or levied in lieu of real estate taxes;and (vi) any costs or expenses incurred or expended by Landlord in investigating, calculating, protesting, appealing or otherwise attempting to reduce or minimize such taxes. There shall be excluded from Property Taxes: (a) all income taxes, capital stock, inheritance, estate, gift, or any other taxes imposed upon or measured by Landlord's grossincome or profits unless the same is specifically included within the definition of Property Taxesabove or otherwise shall be imposed in lieu of real estate taxes or other ad valorem taxes and (b) except to the extent allocated to the Building in accordance with Section 4.3.3,below, any Property Taxes levied or assessed upon or otherwise attributable to any portion of the Project other than the Building and the land on which it is located (and all improvementsfrom time to time located thereon) and the Common Areas.
4.2.3 "Operating Expenses" means all costs, fees, amounts, disbursements and expenses of every kind and nature paid or incurred by or on behalf of Landlord with respect to any Expense Year in connection with the operation, ownership, maintenance, insurance, restoration, management, replacement or repair of the Building and the landallwhich it is located (and all improvementsfrom timeto time located thereon), and to the extent allocated to the Building in accordance with Section 4.3.3. below, the other parts of the Project,in a first class manner, including, without limitation,any amounts paid or incurred with respect to:
(i) Premiumsfor property, casualty, liability, rent interruption, earthquake,flood or other types of insurance carried by Landlord from time to time, and any deductibles thereunder actually paid by Landlord with respect to theBuilding and the Project.
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(ii) Salaries, wages and other amounts paid or payable for personnel (including, without limitation, the Building manager, superintendent, operation and maintenance staff, the Parking Facilities (defined below) manager, concierge (ifany) and other employees of Landlord) involved in the maintenance and operation of the Building or the Project, including contributions and premiums towards fringe benefits, unemployment taxes and insurance, social security taxes, disability and worker's compensation insurance, pension plan contributions and similar premiumsand contributions which may beleviedon such salaries, wages, compensation
and benefits and the total chargesof any independent contractors orpropertymanagers engaged in the operation, repair, care, maintenance
and cleaning of any portion of the Building or the Project.
and refuse removal.
(iii) Cleaning expenses, including without limitation, janitorial services, window cleaning, and garbage
(iv) Landscaping and hardscape expenses, including without limitation, irrigating, trimming, mowing, fertilizing, seeding, and replacing plants, trees and hardscape.
(v) Subject to the provisions of Section 4.3.4,the cost ofproviding fuel, gas, electricity, water, sewer,telephone, steam and other utility services.
(vi) Subject to the provisions of Section 4.2.3(x) below, the cost of maintaining, operating, restoring, renovating, managing, repairing and replacing components ofequipment or machinery, including, without limitation, heating, refrigeration, ventilation, electrical, plumbing, mechanical, elevator, escalator, sprinklers, fire/life safety, security and energy management systems, including service contracts, maintenance contracts, supplies and parts with respect thereto.
(vii) The costs of security for, and supervision of, the Building and the Project.
Building ortheProject.
(viii) Rental, supplies and other costs with respect to the operation of the management office for the
(ix) Allcost and fees for licenses, certificates, permits and inspections, and the cost incurred in connection with the implementation of a transportation system management program or similar program.
ex) The cost of replacement, repair, acquisition, installation and modification of (A) carpeting and wailcoverings, ceiling systems and fixtures in the Common Areas, and other furnishings in the Common Areas, (B) materials, tools, supplies and equipment purchased byLandlordwhich are used in themaintenance, operation andrepair of theBuilding, and (C)anyotherform of improvements, additions, repairs, or replacements to the Building or the systems, equipment or machinery operated or used in connection with the Building; provided, however, that with respect to the items described in clauses (A), (B) and (C)above which constitute a capital item, addition, repair or improvement (collectively "Capital Items") under sound accounting andproperty management principles consistently applied and determined by Landlord, in each case the cost of such Capital Items shall be amortized (with interest at the Interest Rate) over the useful life (the "Useful Life") of such Capital Item, asdetermined bythe Landlord inaccordance with sound accounting and property management principles consistently applied orsuch other period as shall be consistent with Institutional Owner
Practices.
(xi) Attorneys', accountants' and consultants' fees and expenses in connection with the management, operation, administration, maintenance and repair of the Building and the Project, including, butnot limited to, such expenses that relate to seeking or obtaining reductions in or refunds of Property Taxes, or components thereof, or the costs of contesting the validity ofapplicability ofanygovernmental enactments which may affect Operating Expenses.
(xii) Fees for the administration and management of the Building in an amount equal to three percent (3%) of the gross revenues ofthe Building (which shall be grossed byLandlord up to onehundred percent (100%) occupancy on an annualbasis), without regard to whether actual fees sopaid aregreater or lessthan such amount.
(xiii) Sales, use and excise taxes on goods and services purchased by Landlord for the management, maintenance, administration or operation of the Building or the Project.
(xiv) Fees for local civicorganizations and dues for professional trade associations.
(xv) Payments under anycovenants, conditions and restrictions pertaining totheBuilding orthe Projector any easement, license oroperating agreement or similar instrument which affects the Building orthe Project.
(xvi) Costs and expenses of investigating, testing, documenting, monitoring, responding to, abating and remediating Hazardous Materials (defined below), other than abatement and remediation costs with respect to Hazardous Materials actuallyknown byLandlord (on the Effective Date) torequire abatement and/or remediation under applicable Environmental Laws (defined below).
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(xvii) The costs of repairing, restoring and maintaining the Parking Facilities, including, without limitation, the resurfacing, restriping and cleaning of such facilities.
(xviii) Any costs, fees, amounts, disbursements and expenses which are generally included in Operating
Expenses under Institutional Owner Practices.
4.2.4 The following costs and expenses shall be excluded from OperatingExpenses:
(i) expensesrelating to leasing space in the Building or theProject(including tenantimprovements, leasing and brokerage commissions and advertising expenses);
(ii) legal fees and disbursements incurred for collection of tenant accounts or negotiationofleases, or relating to disputes between Landlord and other tenants and occupants of the Building andthe Project;
inclusive;
(iii) the cost ofany Capital Items unless specifically permitted by Section 4.2.3, parts (i) through (xviii),
(iv) Property Taxesand Utility Costs;
(v) amounts received by Landlord on account of proceeds ofinsurance to the extent theproceedsare reimbursement for expenses which were previously included in Operating Expenses;
(vi) except to the extent specifically provided in Section 4.2.3, parts (i) through (xviii), inclusive, depreciation or paymentsof principal and intereston any mortgages upon theBuilding or the Project;
(vii) paymentsof ground rent pursuant to any ground lease coveringthe Building or theProject;
(viii) subject to Section 4.3.1, the costs of gas, steam or other fuel; operation of elevatorsandsecurity systems; heating, cooling, air conditioning and ventilating; chilled water, hot and cold domestic water,sewer and other utilities or any other service work or facility, or level or amount thereof, provided to any other tenant or occupantin theBuilding or theProject which either (a) is not required to besupplied or furnished by Landlord to Tenant under the provisions of this Leaseor (b) is supplied or furnished to Tenant pursuant totheterms of this Lease withseparate or additional charge;
(ix) the cost ofany Landlord Work (defined in the WorkLetter);and
(x) any costexpressly excluded from Operating Expenses in anyprovision ofthis Lease.
4.2.5 "Utility Costs" means all costs incurred by Landlord in connection with all utility servicesprovided tothe Building, and to the extent allocated to the Building in accordance with Section 4.3.3, below, to the Project, including, without limitation, forelectricity, fuel (if any), gas, water, sewerageand similar utility services(collectively, the "Utility Services").
4.2.6 "Tenant's Percentage Share" meansthepercentage set forthinItem 5.2 ofthe BasicLeaseProvisions; provided, however, thatLandlord reserves theright from time totime during the Term of thisLeaseto recalculate Tenant's Percentage Share, in which case Tenant's Percentage Shareshall be calculated by dividing the number ofsquare feetofRentable Area in thePremisesby the number of square feet of Rentable Area in the Building, and expressing such quotient in the form ofa percentage.
4.3 Calculation Methods and Adjustments.
4.3.1 Variable Expenses(defined below) forall or any portion ofanyExpenseYear (includingtheBaseYear)during which actual occupancy ofthe Building ortheProject, asapplicable,islessthan onehundred percent (100%) oftheRentable Area of theBuilding or theProject, as applicable,shall beadjusted by Landlord, as determinedingood faith byLandlordapplyingsound accounting and property management principles(and the provisions of thisLease) to reflect one hundred percent (100%) occupancyof the Rentable Area of theBuilding or the Project, as applicable, during such period. If duringall oranypart ofany Expense Year, including the Base Year, any particular item of benefit, work or service (the cost of which is a Variable Expense) is not provided to portions of theBuilding or the Project, as applicable,due to the fact that such item of benefit, work or serviceis not required or desired by thetenant of such space, or such tenant is itself obtaining and providingsuch item of benefit, work or service, or for any other reason, then for purposes of computing Variable Expensesfor such ExpenseYear, Operating Expenses or Utility Costs, as applicable, shall be increasedbyan amount equal to theadditional Variable Expenseswhich would havebeenpaid or incurredduring such period if suchitem of benefit,work orservice had been provided to such portions of theBuilding or theProject, as applicable. "Variable Expenses"means the components of Operating Expensesand Utility Costs thatvary based on thelevel of occupancy of the BuildingorProject, as applicable.
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4.3.2 Subject to the provisions ofthis Section 4.3, all calculations, determinations, allocations and decisions tobemade hereunder with respect to Operating Expenses, Property Taxes or Utility Costs shall be made in accordance with the good faithdetermination of Landlord applying sound accounting and property management principles consistently applied which are consistent with Institutional Owner Practices. Subject to applicable Laws, Landlord shall solely determine alldecisions with respect to the method and manner by which all Utility Services shall bebilled and provided in theBuilding, which determinations shall be made by Landlord illgood faith and on a basis consistent with Institutional Owner Practices. Landlord shall have the right to equitably allocate some or all of
Operating Expenses or Utility Costs among particular classesor groupsof tenants in the Building (forexample,retailtenants)to reflect
Landlord's good faith determination that measurablydifferentamounts or typesof services, workorbenefits associatedwithOperating
Expensesand/or Utility Costs, as applicable, are beingprovided toor conferred upon suchclasses orgroups. Subject totheprovisions of thisSection 4.3, from time to time Landlord shall have theright toexpand or contract theamount,scope,levelor types ofservices, work, itemsor benefits, the cost of which is included within Operating Expenses or Utility Costs, asapplicable,so long asLandlord's treatment of thesamefor purposes of the calculation of OperatingExpensesor Utility Costs, as applicable, isgenerally consistentwithInstitutionalOwner Practices. "Institutional Owner Practices" meansthe practices of the majority of the institutional owners of institutional grade first-classoffice projects in San Diego County, California.
4.3.3 Whenever services, benefits or workareprovided to the Building andto additional building (includingotherbuildingsinthe Project) or projects (where allocation of the costthereof among such buildings and/orprojects isrequiredforcalculation of Operating Expensesand/or Utility Costs hereunder), inallocatingthe overall cost thereof (for all such building and/orprojects) to Operating Expensesand/or Utility Costs hereunder, there shall be excluded from OperatingExpensesorUtility Costs, as applicable, Landlord's goodfaithdetermination of the additionaloverallcost comparison allocable to theprovision ofsuchservices, benefits orwork tothe additional buildingsand/or projects. Landlordshall havetheright,from time totime, to add or removebuildingsandother improvements to or from(i)theProject and/or(ii)thecalculationof Property Taxes,OperatingExpenses and/orUtilityCostsand then equitablyallocate some or all of thePropertyTaxes, OperatingExpenses and/orUtilityCosts for theProject among different buildings(including any additional buildings) in the Project. Insuchevent,Landlord shall equitablyandin goodfaithdetermine a methodofallocatingsuch PropertyTaxes, Operating Expensesand/or Utility Costs attributable tosuch other buildings andimprovements (andtheland on which they are located) in the Project to the Building, and Tenantshall be responsibleforpayingTenant'sPercentage Shareofsuch expenses.
4.3.4 All discounts, reimbursements, rebates, refunds, or credits (collectively,"Reimbursements") attributabletoOperating Expenses, Property Taxes or Utility Costs received by Landlord in a particular yearshallbededucted from Operating Expenses, PropertyTaxesor Utility Costs, as applicable, in theyear the same are received; provided, however,ifsuch practiceis consistent withInstitutional Owner Practices, Landlord may treat Reimbursements generally (or under particularcircumstances) on adifferent basis. All assessmentsand premiums of Operating Expenses, Property Taxesor Utility Costs whichcanbepaidby Landlordinperiodicinstallmentsshall bepaid by Landlord in the maximum numberof periodic installments permitted byLaw; provided, however, that ifthe then prevailingInstitutional Owner Practice is to paysuch assessments or premiums on a differentbasis, Landlordmayutilize such different basis ofpayment. Landlord shall have the rightto exclude fromBase Year Operating Expenses,thecost of items of service, work or benefits (i) notprovided following the Base Year, (ii) incurred duetocircumstances not applicablefollowing theBase Year ordue to market-wide labor-rate increases in Operating Expenses dueto extraordinarycircumstances, including, without limitation, boycotts,embargoes and strikes, and utility rate increases due to extraordinary circumstances, and (iii) amortized costs relating to capital improvements.
4.3.5 If in anyone or moreExpenseYearsfollowing the BaseYear(a "Comparison Year"), PropertyTaxesdecreasebelow theamount of Property Taxes for theBase Year as aresult of any reassessment orany similargovemmentalact orLaw, including,without limitation, as the result of a Proposition 8 reduction (collectively, a"Tax Reduction"), for purposesof calculationof excess PropertyTaxes for such Comparison Year andallsubsequent Comparison Years,Property Taxes allocable to theBaseYear shall be reduced to theamount of Property Taxes allocable to such Comparison Year (a "Base Year Tax Reduction"); provided,however,that if in anysubsequentComparison Year the amount of suchTax Reduction is decreased (otherthantothe extent byvirtueoftheapplicationof the annual percentage increase (presently 2.0%) in Property Taxescurrently provided bystatute (or anysubstitute therefor hereafter adopted»,for purposes of calculation of excess Property Taxesforsuch subsequent Comparison Year,theBaseYearTaxReductionshall be correspondingly decreased. Property Taxes allocableto the BaseYear shall not includeany Property Taxesoranytaxes, assessments, costscharges or feesnot applicable following the BaseYear.
4.4 Payment Procedure; Estimates.
4.4.1 During each ExpenseYear,Landlord may electto give Tenant writtennotice of its estimate ofthe amounts payable byTenant under Section 4.1,above ("Article 4 Additional Rent")for that Expense Year. Thereafter,Oilorbefore thefirst day ofeachcalendarmonth during such Expense Year,Tenantshall pay toLandlordone-twelfth(1I12th) of suchestimated amounts; provided,however, that,not more often than quarterly,Landlordmay,by written notice to Tenant,revise itsestimate forsuch Expense Year, and allsubsequent paymentsunder this Section 4.4 byTenant forsuch ExpenseYear shall be based upon suchrevised estimate.
4.4.2 Landlord shall endeavor to deliverto Tenant within one hundred fifty (150) days afterthecloseofeachExpense Year or as soon thereafter as is practicable,astatement of that year's Operating Expenses,ProperlyTaxesandUtility Costsand the total amount payable by Tenant as Article 4 AdditionalRent forsuch Expense Year,as determined byLandlord (the"Landlord's Statement"). Except as provided in Section 4.5, Landlord's Statement shall be binding uponLandlordandTenant. Ifthe Landlord's
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Statement indicates that the total amount of Article 4 Additional Rent payable by Tenant for the applicable Expense Year (a) is more than the estimated payments for such Expense Year previously made by Tenant pursuant to Section 4.4.1, above, then Tenant shall pay the deficiency to Landlord upon receipt of Landlord's Statement or (b) is less than the estimated payments for such Expense Year previously made by Tenant pursuant to Section 4.4.1, above, then such excess payments shall be credited against Rent next payable by Tenant under this Lease (or, if the Term of this Lease has expired, such excess shall be paid to Tenant within thirty (30)days). No delay in providing any Landlord's Statement described in this Section 4.4.2 shall act as a waiver of Landlord's right to receive payment from Tenant under Section 4.1 above (with respect to any Article 4 Additional Rent) for the period covered thereby.
4.4.3 If this Lease shall expire or terminate on a day other than the end of an Expense Year, the amount payable by Tenant as Article 4 Additional Rent that is applicable with respect to the Expense Year in which such expiration or termination occurs shall be prorated on the basis that the number of days from January I of such calendar year to the expiration or termination date bears to 365.Theexpiration or early termination of this Lease shall not affect the obligations of Landlord and Tenant pursuant to this Section 4.4 to be performed after such expiration or early termination.
4.5 Review of Landlord's Statement,
4.5.1 Provided that Tenant is not then in default with respect to its obligations under this Lease and provided further that Tenant strictly complies with the provisions of this Section 4.5, Tenant shall have the right to reasonably review Landlord's supporting books and records for any portion of the Property Taxes, Operating Expenses or Utility Costs for a particular Expense Year covered by Landlord's Statement, in accordance with the following procedure:
4.5.2 Tenant shall, within sixty (60) days after any such Landlord's Statement is delivered to Tenant, deliver a written notice (a "Dispute Notice") to Landlord specifying the items described in the Landlord's Statement that are claimed to be incorrect, and Tenant shall simultaneously pay to Landlord all amounts remaining due from Tenant to Landlord as specified in the Landlord's Statement. The right of Tenant under this Section 4.5 may only be exercised once for each Expense Year covered by any Landlord's Statement, and if Tenant fails to deliver a Dispute Notice within the sixty (60) day period described above or fails to meet any of the other above conditions of exercise of such right, the right of Tenant to audit a particular Landlord's Statement (and all of Tenant's rights to make any claim relating thereto) under this Section 4.5 shall automatically be deemed waived by Tenant. Except as expressly set forth in this Section 4.5, in no event shall Tenant be entitled to withhold, deduct, or offset any monetary obligation of Tenant to Landlord under this Lease (including without limitation, Tenant's obligation to make all payments of Base Rent and all payments of Article 4 Additional Rent and other Rent pending the completion of and regardless of the results of any review of records under this Section 4.5).
4.5.3 Tenant acknowledges that Landlord maintains its records for the Building at Landlord's manager's corporate offices and Tenant agrees that any review of records under this Section 4.5 shall be at the sole expense of Tenant and shall be conducted by independent certified public accountants of national or regional standing which are not compensated on a contingency fee or similar basis relating to the results of such audit. Tenant acknowledges and agrees that any records of Landlord reviewed under this Section 4.5 (and the information contained therein and the results of Tenant's review thereof) constitute confidential information of Landlord, which Tenant shall not disclose, nor permit to be disclosed by Tenant's accountant, to anyone other than the Tenant's accountants performing the review and the principals of Tenant who receive the results of the review. The disclosure of such information by Tenant or any of Tenant's employees or contractors (including, without limitation, Tenant's accountant) to any other person, whether or not caused by the conduct of Tenant, shall constitute a material breach of this Lease.
4.5.4 If Landlord disagrees with Tenant's contention that an error exists with respect to Landlord's Statement (and the Operating Expenses, Real Properly Taxes and/or Utility Costs described therein) in dispute, Landlord shall have the right to cause another review of that portion of Landlord's Statement (and the Operating Expenses, Real Property Taxes and/or Utility Costs Slated therein) to be made by a firm of independent certified public accountants of national or regional standing selected by Landlord ("Landlord's Accountant"). In the event of a disagreement between the two accounting firms, the review of Landlord's Accountant shall be deemed to be correct and shall be conclusively binding on both Landlord and Tenant. In the event that it is finally determined pursuant to this Section 4.5 that the total Article 4 Additional Rent for any Expense Year has been overstated, (a) by any amount, then the amount of any overpayment shall be credited against Rent next payable by Tenant under this Lease (or, if the Term of this Lease has expired, such excess shall be paid to Tenant within thirty (30) days) and (b) by more than five percent (5%), then Landlord shall additionally reimburse Tenant for the reasonable cost of Tenant's accountant. In all other cases, Tenant shall be liable for Landlord's Accountant's actual fees and expenses, and the amount of any underpayment shall be paid by Tenant to Landlord with the next succeeding installment of estimated Article 4 Additional Rent (under Section ~.4.1, above).
ARTICLE 5 - ADDITIONAL TAXES
In addition to the Base Rent and all other forms of Additional Rent payable by Tenant hereunder, Tenant shall reimburse Landlord upon demand as Additional Rent for any and all taxes, impositions or similar fees or charges (other than any of the same actually included by Landlord in Property Taxes with respect to the Expense Year in question) payable by or imposed or assessed upon Landlord upon or with respect to (or measured by or otherwise attributable to the cost or value of): (i) any fixtures, equipment or other personal property located in or about the Premises; (ii) any leasehold improvements made in or to the Premises by or for Tenant (without regard to ownership of such improvements) if and to the extent the original cost, replacement cost or value thereof exceeds the cost of Landlord's then effective "Building Standard" tenant improvements, as determined in good faith by Landlord; (iii) the Rent payable hereunder,
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including, without limitation, any gross receipts lax, license fcc or excise lax levied by any governmental authority; (iv) the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of any portion of the Premises; or (v) this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises.
ARTICLE 6 - SECURITY DEl'OSIT
Upon the execution of this Lease, Tenant shall deposit with Landlord the Security Deposit described in Item 6of the Basic Lease Provisions. The Security Deposit is made by Tenant to secure the faithful performance of all the terms, covenants and conditions of this Lease to be performed by Tenant. The Security Deposit is not an advance paymentof Rent or a measure or limit of Landlord's damages upon an Event of Default by Tenant If Tenant commits an Event of Default with respect to any provision of this Lease, Landlord may, but shall not be required to, use, apply or retain all or any part of the Security Deposit (i)for the payment of any Rent or any other sum in default, (ii)for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such default by Tenant, and (iii) to compensate Landlord for any other loss or damage which Landlord may suffer by reason of such default by Tenant. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand therefor by Landlord, deposit with Landlord cash in an amount sufficient to restore theSecurity Deposit to the amount required to bc maintained by Tenant hereunder. Upon expiration or the sooner termination of this Lease, provided that Tenant has performed all of its obligations hereunder, Landlord shall return to Tenant the remaining portion of the Security Deposit no later than thirty (30) days after the date Landlord receives possession of the Premises in accordance with the provisions of this Lease. Thc Security Deposit may be commingled by Landlord with Landlord's other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises, then Landlord may assign the Security Deposit to the transferee and thereafter Landlord shall have no further liability or obligation for the return of the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other provisions of Law, now or hereinafter in force, which restricts the amount or types of claim that a Landlord may make upon a security deposit or imposes upon a Landlord (or its successors) any obligation with respect to the handling or return of security deposits.
ARTICLE 7 - USE OFPREMISES
7.1 Tenant's Permitted Use. Tenant shall use the Premises only for Tenant's Permitted Use as set forth in Item 9 of the Basic Lease Provisions and shall not use or permit the Premises to be used for any other purpose. Tenant shall, at its sole cost and expense, obtain and maintain in full force and effect all governmental licenses, approvals and permits required to allow Tenant to conduct Tenant's Permitted Use. Landlord disclaims any warranty that the Premises are suitable for Tenant's use and Tenant acknowledges that it has had a full opportunity to make its own determination in this regard. In no case shall Tenant usc any portion of the Premises for (i) offices of any division, agency or bureau of the United States or any state or local government of any foreign government or subdivision thereof, (ii) offices of any health care professionals or for the provision of any health care services, (iii) any schools or other training facility, (iv) any retail or restaurant uses, (v) any residential use, or (vi) any communications uses such as broadcasting radio and/or television stations. Tenant shall not permit any use of the Premises or any portion thereof for any occupancy density which is greater than the average occupancy density associated with the occupancies of the other tenants of the Project.
7.2 �� Compliance With Laws and Other Requirements.
7.2.1 Tenant shall timely take all action required to cause the Premises to comply in all respects with all laws, ordinances, building codes, rules, regulations, orders and directives of any governmental authority having jurisdiction (including without limitation any certificate of occupancy) now or in the future applicable to the Premises (collectively, "Laws"), including, without limitation, any Law requiring any form of improvement or alteration to the Premises or Building. Without limiting the generality of the foregoing, should any federal, state or local governmental agency having jurisdiction with respect to the establishment, regulation or enforcement of occupational, health or safety standards for employers, employees or tenants impose on Landlord or on Tenant at any time now or in the future any requirement or Law relating in any manner to the Premises or occupancy thereof, Tenant shall, at itssoleCost and expense, comply promptly (or at Landlord's election, bear the cost of such compliance as effected by Landlord) with such requirement or Law.
7.2.2 Tenant shall not use the Premises, or permit the Premises to be used, in any manner, or do or suffer any act in or about the Premises which: (i) violates or conflicts with any applicable Law; (ii) causes or is reasonably likely to cause damage to the Project, the Premises or the Building systems, including, without limitation, the life safety,electrical, heating, ventilation and air conditioning ("HVAC"), plumbing or sprinkler systems (collectively, the "Building Systems") for the Building and/or the Project; (iii) violates arequirementor condition of any policy of insurance covering the Project and/orthe Premises, or increases the cost of such policy; (iv) constitutes or is reasonably likely to constitute a nuisance, annoyance or inconvenience to other tenants or occupants of the Project or its equipment, facilities or systems; (v) interferes with, or is reasonably likely to interfere with, the transmission or reception of
microwave, television, radio, telephone, or other communication signals by antennae or other facilities located in the Project; or
(vi) violates the Rules and Regulations.
7.3 Hazardous Materials. No Hazardous Materials (defined below) shall be Handled (defined below) upon, about, in, above or beneath tile Premises or any portion of the Project by or on behalf of Tenant, its subtenants or its assignees, or their respective contractors, clients, officers, directors, employees, agents, or invitees (collectively, a "Tenant Party"). Notwithstanding the foregoing, normal quantities of those Hazardous Materials customarily used in the conduct of general administrative and executive office activities (e.g., copier fluids and cleaning supplies) may be used and stored at the Premises without Landlord's prior written consent, but only in
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compliance with all applicable EnvironmentalLaws (defined below), andwith thehighest prevailing industry standards. Tenant shall, atirssole cost and expense, promptly take all actions (or at Landlord's election, reimburse Landlord for laking all actions) required by anyLaw or necessary for Landlord to make full economic use of the Premises or any portion of the Project which arises inconnection with theHandling (defined below) by Tenant or any other Tenant Party ofany Hazardous Materials upon, about, above or beneath thePremises or any portion of the Project. Such actions shall include, but not be limited to, the investigation of the environmental condition of the Premises or any portion of the Project, the preparation of any feasibility studies or reports and the performance of anycleanup, remedial,removal or restoration work. Tenant shall take all actions (or at Landlord's election, reimburse Landlord for taking allactions) necessary to restore thePremises or any portion of the Project to the condition existing prior to the introduction byTenant or any other Tenant Party of Hazardous Materials, notwithstanding any less stringent standards or remediation allowable under applicable Environmental Laws."Environmental Laws" means and includes all now and hereafter existing statutes, laws, ordinances, codes, regulations, rules, rulings, orders, decrees, directives, policies and requirements by any federal, state or local governmental authority regulating, relating to, or imposing liability or standards of conduct concerning public health and safety or the environment, "Hazardous Materials" means: (a) any material or substance: (i) which is defined or becomes defined as a "hazardous substance", "hazardous waste," "infectious
waste," "chemical mixture or substance," or "air pollutant" under Environmental Laws; (ii)containing petroleum, crude oil or any
fraction thereof; (iii) containing polychlorinated biphenyls (l'CB '5); (iv) which constitutes asbestos or asbestos-containing material;(v) which is radioactive; (vi) which is infectious; or (b) any other material or substance displaying toxic, reactive, ignitable or corrosive characteristics, asall such terms arc used in their broadest sense. "Handle," "Handled," or"Handling" means any installation, handling, generation, storage, treatment, use, disposal, discharge, release, manufacture, refinement, presence, migration, emission, abatement, removal, transportation, or any other activity of any type in connection with or involving Hazardous Materials.
ARTICLE 8-UTILITIES AND SERVICES
8.1 Building Services. As long as Tenant is not committing an Event of Default under this Lease, Landlord agrees to furnish or cause to be furnished, subject to the provisions of this Lease, as part of Operating Expenses to the Premises, the followingutilities and services, subject to the conditions and standards set forth herein:
8.1.1 Non-attended automatic elevator service.
8.1.2 SUbject to all governmental Laws, rules, regulations and guidelines applicable thereto, HV AC to the
Premises, which in Landlord's good faith judgment, is required for the comfortable use and occupancy of the Premises from 8:00 AM. to
6:00 P.M. Monday through Friday (collectively, the"Business Hours"), and if Tenant delivers awritten request to Landlord twenty-four (24) hours in advance, 9:00 AM. to 1:00 P.M., Saturdays, except for the date of observation of New Year's Day, Independence Day, Labor Day, Memorial Day, Thanksgiving Day, and Christmas Day, and at Landlord's discretion, other state and nationally recognized holidays selected by Landlord which are consistent with Institutional Owner Practices (collectively, the "Holidays"); provided, however, that if Tenant desires to use HV AC during hours ("Non-Business Hours") other than Business Hours ("After Hours HVAC"), Tenant shall provide Landlord with prior written notice (which at a minimum shall be 24 hours' written notice for weekday use (and written notice prior to 12 Noon on Friday for weekend use) of Tenant's desired After Hours HV AC use and upon such additional conditions as shall bcdetermined by Landlord from time to time. Tenant shall pay to Landlord Landlord's then prevailing charges (the "After Hours HVAC Rate") for supplying such After Hours HV AC within ten(10)days of receipt of a reasonably detailed bill therefor. Landlord's After HoursHVAC Rate is currently $30.00 per hour (or partial hour), per zone (or partial zone). Landlord makes no representation withrespect to the adequacy or fitness of the Project's INAC system to maintain temperatures as may be required for the operation ofany computer,data processing or other special equipment. Tenant shall be responsible for and shall pay to Landlord any additional costs (including, without limitation, the costs of installation of additional HV AC equipment) incurred by Landlord because of the failure of the HV AC system to perform itsfunction due to arrangement of partitioning in thePremises or changes or alterations thereto or from any uscby Tenant of heat generating machinery or equipment other than normal office equipment, including small photocopying machines and personal computersnot linked to a central mainframe at thePremises.
8.l.3 At all reasonable times, electric current as required for Building Standard lighting and normal and customary fractional horsepower office machines and adequate electrical wiring and facilities for connection tothe lighting fixtures and normal and customary incidental use equipment of Tenant, with (a) the electricity so furnished for Tenant's incidental usc equipment to beata nominalone hundred twenty (l20) volts and with no electrical circuit for the supply of such equipment to require acurrent capacity exceeding twenty (20) amperes, and (b) the electricity so furnished for Tenant's lighting to be at a nominal two hundred seventy-seven (277) voltsand with no electrical circuit for the supply of such equipment to require a current capacity exceeding twenty (20) amperes. Notwithstanding any provision of this Lease to the contrary (i) the total connected electrical load for allof the lighting and incidental use equipment located
in the Premises shall in no case exceed an average of six (6) watts per usable squarefoot of the Premises (the "Maximum Electrical
Amount") and (ii)the total electrical consumption by Tenant's incidental use equipment and lighting within the Premises shall in nocase exceed the greater of (i) Landlord's per rentable square foot Normal Business Hours standard and(ii)the total electrical consumption thatwould exist if such incidental use equipment and lighting consumed an average of four(4) watts per rentable square foot of thePremises during Business Hours (the "Consumption Threshold"). Without Landlord's consent, Tenant shall not install, or permit the installation, in the Premises of any computers,word processors, electronic data processing equipment or other type of equipment or machines which will (A) cause Tenant's connected load to exceed or increase Tenant's use of electric power inexcess ofthatwhich the Building Systems serving the Premises are designed for or (B) will materially affect the temperature level in the Premises or in the Building ("Excess Electrical Requirements"). If Tenant shall require or utilize Excess Electrical Requirements or electric power which is likely to disrupt the provision of electrical service to other tenants in the Building or the Project or will materially affect the temperature level in the
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Premises or in the Building, Landlord, at its election, may(x) refuse togrant its consent or (y) condition itsconsent upon Tenant's payment in advance of Landlord's total actual cost of designing, installing, operating maintaining and providing any additional machinery, equipment and/or facilities (including, but not limited to, the cost of modifications to the Building Systems) reasonably determined by Landlord to berequired to satisfy such Excess Electrical Requirements and/or ifapplicable, restore the temperature level to that otherwise required to be provided by Landlord (or otherwise related to the additional wear on Building Systems associated therewith). If Tenant'sconsumption of electrical power for any portion of the Premises, as reasonably determined by Landlord pursuant to such reasonable measurement method or methods asLandlord shall employ from time to time (including, without limitation, the use of submcters and/or pulse meters, electrical surveys and/or engineer's estimates) shall exceed the Consumption Threshold for anyreasonable calculation period
determined by Landlord, then in addition (0paying Additional Rent under Section 4.1.3 above, Tenant shall pay to Landlord,as Additional
Rent,the sum of: (J) Landlord's costsof supplying such excess consumption, including, without limitation, all taxes thereon, and the costof additional wear on Building Systemsresulting fromsuch excess consumption, and (2) all of Landlord's costsof monitoringand measuring such excessconsumption. Landlordshall not,in any way, be liable or responsible to Tenant for any lossor damage or expense which Tenant may incur or sustain if,for any reasons beyond Landlord's reasonable control, either the quantity or character ofelectricservice is changed or isno longer available orsuitablefor Tenant's requirements. Tenant covenants that its use of electric powershall neverexceed the capacity of the feeders, risersorelectrical installations of the Building or the Project.
8.1.4 Citywaterfor drinking and restroom purposes.
8.1.5 Janitorial and cleaning services (5 times per week,excludingHolidays) conforming to the Landlord's Project standards ineffect from timeto time(whichshall be consistentwith Institutional OwnerPractices), provided that the Premisesarcused exclusively for office purposes and arekept reasonably in order byTenant, Landlord shall not be required to provide janitorial services for portionsof thePremisesused for preparing orconsumingfood or beverages, forstorage, as a mailroom, or for a lavatory (other than the Common Area lavatory rooms) otherthan normal "light" janitorial services such as emptying ofwastecontainers, standard vacuuming,mopping andsweeping. Landlord shall not be responsible for more extensive lunch room cleaning such as the washing of dishware or cleaning anyrefrigerator located therein. In allevents, Tenantshall pay(0Landlord the cost of removalof Tenant'srefuseand rubbish, to theextent that the same exceedsthe refuseand rubbishattendant to normal officeusage).
Any amounts which Tenant isrequired to payto Landlord pursuant to thisSection 8.1 shall bepayableupon demand by Landlordand shall constitute Additional Rent. Fromtime totime during theTerm, Landlordshall havethe right to modifytheservices provided to Tenant hereunder;providedsuch modifiedservices are consistent with Institutional Owner Practices. Tenant recognizes thatanyaccesscontrolservicesprovided byLandlord at theProjectare for theprotection of Landlord'sproperty, and under no circumstancesshall Landlord beresponsiblefor (andTenantwaives any rightswith respect to) providing securityor other protection for Tenantoritsemployees, invitees or property in orabout the Premisesor the Project.
8.2 Interruption of Services. Landlordshall not beliable for any failure to furnish, stoppage of, or interruption in furnishingany of theservicesor utilities described inSection 8.1 when such failureiscaused by accident,breakage,repairs, strikes, lockouts,labor disputes,labor disturbances, governmental regulation, civil disturbances, actsof war,moratoriumor othergovernmental action,or any othercausebeyond Landlord's reasonable control, and, in such event, Tenant shall not beentitledtoanydamages norshall anyfailureor interruptionabate orsuspend Tenant's obligation to payBase Rent and Additional Rent required under this Lease orconstituteor be construed as aconstructive or other eviction ofTenant. In theevent anygovernmentalor quasi-governmental authority or publicutility promulgates or revises any Law or issuesmandatory controls orvoluntarycontrolsrelatingto theuse or conservation of energy,water, gas, light or electricity,the reduction ofautomobile or other emissions, or the provision of any other utility or service, Landlord may take anyreasonably appropriateaction tocomplywithsuch Law,mandatory control or voluntaryguidelinewithout affecting Tenant's obligations hereunder. Tenant recognizes thatany security services provided by Landlordat the Projectare for the protection of Landlord's property and under no circumstances shallLandlord beresponsible for,and Tenant waives any rights with respectto, providing security or other protection forTenant or itsemployees, inviteesor propertyin or about the Premisesor theProject.
ARTICLE 9-MAINTENANCE AND REPAIRS
9.1 Landlord's Obligations. Landlordshallendeavor to keep the Common Areasin a clean and neatcondition. Subject to Section 9.2 below, Landlordshall make all necessary repairs,within a reasonableperiod followingreceipt of notice ofthe need therefor from Tenant, to theexterior walls,exterior doorsandwindows of theBuilding, and to public corridorsand otherpublicareasof the Project not constituting a portion of any tenant's premisesand shall usecommercially reasonable effortsto keepall BuildingSystemsused by Tenant in common with other tenantsin reasonable conditionand repair, reasonablewear and tearexcepted. Notwithstanding the foregoing,Tenant shallbesolelyresponsible for therepair and maintenance of,and all damage to,theBuildingortheProject (or any component thereof) resulting from the design and operation of all improvements whichare no! Building Standard Installations(described in the Work Letter)inor servingthePremises installedat the request of Tenant (regardlessof whether installed by Landlord, its agents orcontractors orthird partycontractors). Exceptasprovided in Article 12, there shall be no abatement ofRent,norshall therebeany liability of Landlord, by reason of any injury to, or damage suffered by Tenant, including without limitation, any inconvenience to,or interference with, Tenant's business or operations arising from the making of, or failure to make, any maintenance or repairs, alterations or improvementsin orto any portion of theBuilding. Tenant waives the righttomakerepairsat Landlord'sexpenseunderSections1932(1),
1941and 1942 of theCalifornia Civil Code, and under all other similar laws, statutesor ordinances now or hereafter ineffect. No provision of thisLease shall beconstruedas obligatingLandlord to perform anyrepairs, Alterationsor decorationsto thePremisesor theProjectexcept as otherwiseexpressly agreed to beperformed byLandlord pursuant to the provisionsof this Lease.
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9.2 Tcnant's Obligations. No representations, except as contained herein or endorsed hereon, have been made to Tenant respecting the condition of the Premises, and the acceptance of possession of the Premises by Tenant shall be conclusive evidence as against Tenant that the Premises are now in tenantable and good condition. During the Term of this Lease, Tenant shall, at its sole cost and expense, maintain the Premises in good order and repair and in a safe, clean and neat condition. Tenant shall make all repairs to the Premises not required to be made by Landlord under Section 9.1 above (including, without limitation, all damaged and broken fixtures and appurtenances) with replacements of any materials to be made by use of materials of equal or better quality. Further, Tenant shall be responsible for, and upon demand by Landlord shall promptly reimburse Landlord for, any damage to any portion of the Project or the Premises caused by (a) activities of Tenant or any Tenant Party in the Project, the Building or the Premises; (b) the performance or
existence of any alterations, additions or improvements made by Tenant or any Tenant Partyin or to the Premises; (c) the installation, use,
operation or movement of Tenant's property in or about the Project, the Building or the Premises; or (d) any act or omission by Tenant or any Tenant Party or any other person permitted in or invited to the Premises, the Building or the Project by Tenant or any Tenant Party.
9.3 Landlord's Rights. Landlord and its contractors shall have the right, at all reasonable times, to enter upon the Premises to make any repairs to the Premises or the Building or the Project reasonably required or deemed reasonably necessary by Landlord and to erect such equipment, including scaffolding, as is reasonably necessaryto effect such repairs. In the event of any failure of Tenant to perform anyofits obligations under this Article 9, or under Article 7, 10 or 11, where such failure remains uncured for ten (10) days after delivery by Landlord to Tenant of written notice of such failure (or in the case of an emergency, after such oral or written notice,
if any, as may be practical under the circumstances), Landlord may (but shall not be obligated to) elect to perform such obligation of Tenant at Tenant's sole cost and expense, and in the event of such performance by Landlord, Tenant shall pay to Landlord within ten (10) days of written demand therefor one hundred ten percent (110%) of Landlord's actual direct and indirect costs (including interest, overhead, general conditions and administration) in performing such obligations of Tenant.
ARTICLE 10 -ALTERATIONS, ADDITIONS AND
IMPROVEMENTS
10.1 Landlord's Work. Landlord's sole construction obligation under this Lease is set forth in the "Work Letter" attached hereto as Exhibit "C".
10.2 Landlord's Consent; Conditions. Tenant shall not make or permit to be made any alterations, additions, or improvements in or to the Premises ("Alterations") without first obtaining the prior written consent of Landlord, which consent shall be requested in writing not less than fifteen (I5)business days prior to the scheduled and actual commencement of any work therein. All such Alterations (i) shall comply with all applicable Laws, (ii) shall be compatible (as determined in good faith by Landlord) with the Building and its mechanical, electrical, heating, ventilating, air-conditioning, and life safety systems; (iii) shall not interfere with the use and occupancy of any other portion of the Building or the Project by any other tenant or their invitees; (iv) shall not be visible from the exterior of the Building or from any Common Areas; and (v) shall not affect the integrity of the structural portions of the Building. In addition, Landlord may impose as a condition to such consent such additional requirements asLandlord in its sole discretion deems necessary or desirable including without limitation: (A) Tenant's submission to Landlord, for Landlord's prior written approval, of all plans and specifications relating to the Alterations; (B) Landlord's prior written approval of the time or times when the Alterations arc to be performed; (C) Landlord's prior written approval of the contractors and subcontractors performing work in connection with the Alterations; CD) Tenant's receipt of all necessary permits and approvals from all governmental authorities having jurisdiction over the Premises prior to the construction of the Alterations; (E)Tenant's written notice of whether the Alterations include the Handling of any Hazardous Materials;(F)Tenant's delivery to Landlord of such bonds and insurance as Landlord shall customarily require; (G)Tenant's payment to Landlord within ten (10) days of written demand therefor of all costs and expenses incurred by Landlord because of Tenant's Alterations, including but not limited to costs incurred in reviewing the plans and specifications for, and the progress of, the Alterations and Landlord's supervision fee (which shall equal ten percent (10%) of the cost of the Alterations in question) and (H) Tenant's (and Tenant's contractor's) compliance with such construction rules and regulations and building standards as Landlord may promulgate from time to time. All direct and indirect costs relating to any modifications, alterations or improvements of the Project or the Building, whether outside or inside ofthe Premises, required by any governmental agency or by Law as a condition or as the result of any Alteration requested or effected by Tenant shall be borne by Tenant, and in connection therewith, Landlord may elect to perform such modifications, alterations or improvements (at Tenant's sole cost and expense) or require such performance directly by Tenant.
10.3 Performance of Alterations Work. All work relating to the Alterations shall be performed in compliance with the plans andspecifications approved by Landlord, all applicable laws, ordinances, rules, regulations and directives of all governmental authorities having jurisdiction (including without limitation Title 24of the California Administrative Code) andthe requirements of all carriers of insurance on the Premises and the Building, the Board of Underwriters, Fire Rating Bureau, or similar organization. Allwork shall be performed by Tenant at Tenant's sole cost and expense andshall be prosecuted to completion in a diligent, first class manner and soasnot to interfere with any other tenantsor occupants of the Building. Without Landlord's prior written consent, which Landlord may withhold in its sole and absolute discretion, Tenant shall not use any portion of the Common Areas in connection with the making of any Alterations, and Tenant shall not modify or alter any improvements or components of the Building or the Project outside of the Premises. Upon completion of any Alterations, Tenant agrees tocausea timely Notice of Completion to be recorded in the office of the Recorder of the County of San Diego in accordance with the terms of Section 3093 of the Civil Code of the State of California or any successor statute, end Tenant shall deliver to the Building management office, within thirty (30) days following completion of the Alterations, a reproducible copy of the "as built" drawings of the Alterations together with a CAD file of the"asbuilt" documents of the Alterations (current version of AutoCad).
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10.'1 Liens. Tenant shall pay when due allcosts for work performed and materials supplied to the Premises. Tenant shall keep Landlord, thePremises and the Project free from all liens, stop notices and violation notices relating totheAlterations or anyother work performed for, materials furnished to or obligations incurred by Tenant and Tenant shall indemnify, defend and hold harmless Landlord, the Premises and the Project ofand from any and all loss, cost, damage, liability and expense, including attorneys' fees, arising out of orrelated to any such liens or notices. Tenant shall give Landlord not less than seven (7) business days prior written notice before commencing any Alterations inor about the Premises to permit Landlord to post appropriate notices of non-responsibility. Tenant shall also secure, prior to commencing any Alterations, atTenant's soleexpense, a completion and lien indemnity bond satisfactory to Landlord for such work. During the progress of such work, Tenant shall, upon Landlord's request, furnish Landlord with sworn contractor'sstatements and lien waivers covering all work theretofore performed. Tenant shall satisfy or otherwise discharge all liens, stop notices or other claims or encumbrances within ten (10) days after Landlord notifies Tenant in writing that any such lien, stop notice, claim orencumbrance hasbeen filed. IfTenant fails to pay andremove such lien, claim or encumbrance within such ten (10) dayperiod, Landlord,at itselection, may pay and satisfy the same and in such event thesums so paid by Landlord, with interest from the date of payment at the Interest Rate, shall be deemed to be Additional Rent dueand payable by Tenant at once without notice or demand.
10.5 Surrender. Except asprovidedin Section 7.3and in this Section 10.5,upon expiration orearlier termination of this Lease, Tenantshall vacateand surrender the Premises to Landlordin the same conditionaswhen received at the inception of thisLease, subject to ordinary wear and tear. All Alterations shall become a part of the Premises and shall become the property ofLandlord upon the expiration orearlier termination of this Lease,unlessLandlord shall,by written notice given to Tenant, require Tenant to removesome orallof Tenant'sAlterations,in which event Tenant shall promptly remove prior to the date of such expiration or termination the Alterations designated by Landlord to be so removed and shall promptly restore, patch and repair any resulting damage, all at Tenant's soleexpense, failure by Tenant to strictly comply with the provisions of thisSection 10.5shall constitutea failure of Tenant to validly surrender the Premises. In the event of any failure of Tenant to perform its obligations under this Section 10.5, in addition to (and without prejudice to) any and all other remediesofLandlord,Landlord mayuse,apply or retain all or any part ofthe SecurityDepositwith respect tosuchfailure. All business and trade fixtures,machinery and equipment,furniture,movable partitions, wallcoverings,telecommunicationsequipment, datacabling and items of personal property owned by Tenant or installed by Tenant at its expense in thePremises shall be and remain the property of Tenant; upon theexpiration or earlier termination of thisLease, Tenant shall, at itssole expense, removeall such itemsand repairany damage tothe Premisesor the Project caused bysuch removal. If Tenant fails to remove any such items or repair such damagepromptly after the expiration or earlier termination of thisLease,Tenantshall be deemed to have abandoned thesame,in which caseLandlord may store thesame at Tenant's expense(and Tenantshall payLandlord the cost thereof upon demand), or appropriate the samefor itself,and/or sell thesame in its discretion, with no liability to Tenant.
ARTICLE 11 - INDEMNIFICATION AND INSURANCE
1Ll Waiver of Liability and Indemnification. Except to theextent expressly provided to the contrary herein, Tenant hereby waivesall claims and causes ofaction against Landlord, itspartners, advisors, mortgagees andground lessorsand eachof their respective officers,managers,directors, employees, contractors,agents, successorsand assigns(collectively,"Landlord Parties") for any damage to personsor property (including,without limitation, lossofprofits and intangibleproperty) inany way relating to Tenant'suseand occupancy of the Premises. Tenantshall indemnify, defend,protect and hold harmlessLandlord and each of the Landlord Parties (except to the extent of the losses described below are caused by the gross negligence or willful misconduct of Landlord, its agents or employees), from and against:
(a) anyand all claims, losses, damages, obligations, liabilities, costsand expenses(includingbut not limited to reasonable attorneys' fees and legal costs) (collectively,"Claims, Damages and Costs") which arises out of, is occasioned by or isin any way attributableto (i) the use or occupancy of the Premises or any portion of theProject by Tenant, (ii) or the acts oromissions of Tenant or any TenantPartyor (iii) anydefault of thisLease byTenant.
(b) any and all environmental damages which arise from: (i) the Handling by Tenant or any other Tenant Party of any Hazardous Materials, or (ii) the breach byTenant of any of the provisions of Section 7.3 of this Lease. For the purpose of this Lease, "environmental damages" means (X)all claims, judgments, damages, penalties,fines, costs,liabilities,and losses(including without limitation, diminutionin thevalue of thePremises oranyportionof the Project, damagesfor the lossof or restriction on uscof rentable space, and from any adverseimpact of Landlord's marketing ofspace); (Y) allsums paidfor settlementof claims, reasonableattorneys'fees,consultants' fees and experts' fees; and (Z) all costs incurred by Landlord in connection with investigation or remediation relating to theHandling byTenant or any other Tenant Party of any HazardousMaterials, necessary for Landlord to make full economic useof the Premises.
11.2 Property Insurance.
11,2.1 At all timesduring the Term of thisLease,Tenantshall procureand maintain,at itssale expense, "All-Risk"(andat Landlord's optionearthquake,earthquake sprinkler leakage and/or flood)property insurance, in an amount not lessthan one hundred percent (100%) of replacementcost covering(i)all leasehold and tenant improvementsin and to the Premises(including,without limitation, any existing leasehold improvements, the Tenant Improvements (asdefined in the Work Letter), and any Alterations);(ii) all floor and wall coverings; and (iii) Tenant's office furniture,businessand personal trade fixtures,equipment, furniture system andother personal property from timetotime situated in the Premises. Theproceeds ofsuch insurance shall be used for the repair and replacement
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of the properly so insured, except that if not so applied or if this Lease is terminated following a casualty, the proceeds applicable to the leasehold improvements shall be paid (0 Landlord and the proceeds applicable to Tenant's personal property shall be paid to Tenant.
11.2.2 At all times during the Term of this Lease, Tenant shall procure and maintain business interruption insurance in such amount as will reimburse Tenant for direct or indirect loss of earnings attributable to all perils insured against in Section 11.2.1 for a period of not less than twelve (12) months.
11.3 Liability Insurance.
11.3.1 At all times during the Term of this Lease, Tenant shall procure and maintain, at its sole expense for the protection of Landlord and Tenant, commercial general liability insurance applying to the use and occupancy of the Premises and the business operated by Tenant. Such insurance shall have a minimum combined single limit of liability of at least $1,000,000 per occurrence and a general aggregate limit of at least $2,000,000, and Tenant shall provide in addition excess liability insurance on a following form basis, with overall limits of at least $5,000,000. All such policies shall be written to apply to all bodily injury (including death), property damage and personal injury losses, shall include blanket contractual liability, broad form property damage, independent contractor's
coverage, completed operations, products liability, cross liability and severanceof interest clauses, and shall be endorsed to include
Landlord and Landlord's agents,beneficiaries, partners, employees, and any Holder (defined in Section 18.1) of any Security Document
(defined in Section 18.1) designated by Landlord asadditional insureds.
11.3.2 At all times during the Term of this Lease, Tenant shall procure and maintain, at its sole expcnse for the protection of Landlord and Tenant, primary automobile liability insurance with limits of not less than $1,000,000 per occurrence covering owned, hired and non-owned vehicles used by Tenant.
11.3.3 Prior to the sale, storage, use or giving away of alcoholic beverages on or from the Premises by Tenant or another person, Tenant, at its own expense, shall obtain a policy or policies of insurance issued by a responsible insurance company and in a form acceptable to Landlord saving harmless and protectingLandlord and the Premises against any and all damages, claims, liens,judgments, expenses and costs, including actual attorneys' fees, arising under any present or future law, statute, or ordinance of the State of California or other governmental authority having jurisdiction of the Premises, by reason of any storage, sale, use or giving away of alcoholic beverageson or from the Premises. Such policy or policies of insurance shall have a minimum combined single limit of
$3,000,000 per occurrence and shall apply to bodily injury, fatal or nonfatal; injury to means of support; and injury to property of any person. Such policy or policies of insurance shall namethe Landlord and its agents, beneficiaries, partners, employees and any Holder of any Security Document designated by Landlord as additional insureds.
11.3.4 At all times during the Term of this Lease, Tenant shall procure and maintain Workers' Compensation
Insurance in accordance with the laws of the State of California, and Employer's Liability insurance with a limit not less than $1,000,000
Bodily InjuryEach Accident; $1,000,000 Bodily Injury By Disease - Each Person; and $1,000,000 Bodily Injury By Disease - Policy
Limit.
11.4 Policy Requirements. All insurance required to be maintained by Tenant shall be issued by insurance companies authorized to do insurance business in the State of California and rated not less than A:X in Best's Insurance Guide. All such insurance policies shall be written as primary policies, not excess or contributing with or secondary to any other insurance as may be available to Landlord or to the additional insureds. A certificate of insurance (or, at Landlord's option, copies of the applicable policies) evidencing the insurance required under this Article 11 shall be delivered to Landlord not less than thirty (30) days prior to the Commencement Date. No such policy shall be subject to cancellation or modification without thirty (30) days prior written notice to Landlord and to any Holder of any Security Document designated by Landlord and such policy shall be endorsed to provide that the insurer thereunder shall provide Landlord with written notice of any failure by Tenant to pay any premium thereunder when due and such failure continues for a period of ten (10) days after such date. Tenant shall furnish Landlord with a replacement certificate with respect to any insurance not less than thirty (30) days prior to the expiration of the current policy. Tenant shall have the right to provide the insurance required by this AI1icIe I I pursuant to blanket policies, but only ifsuch blanket policies expressly provide coverage to the Premises and the Landlord as required by this Lease without regard to claims made under such policies with respect to other persons.
11.5 Waiver of Subrogation. Notwithstanding any provision of this Article II to the contrary, if Landlord's insurance policies with respect to the Premises, the Building or the Project permit a waiver of subrogation, Landlord hereby waives any and all rights of recovery against Tenant for or arising outof damage to, or destruction of, the Premises, the Building or the Project from causes then
included under standard "All-Risk" insurance policies or endorsements; provided, however, that such waiver of subrogation shall be limited exclusively to insurance proceeds actually received by Landlord for such damage or destruction. If Tenant's insurance policies with respect to the Premises permit a waiver of subrogation, Tenant waives any and all rights of recovery against Landlord for or arising out of damage to or destruction of, any property of Tenant, from causes then included under standard "All Risk" insurance policies or endorsements. Tenant represents that its present insurance policies now in force permit such waiver. If at any time during the Term of this Lease (i) either party shall give less than five (5) days' prior written notice to the other party certifying that any insurance carrier which has issued any such policy shall refuse to consent to the aforesaid waiver of subrogation, or (ii) such insurance carrier shall consent to such waiver only upon the payment of an additional premium (and such additional premium is not paid by the other party hereto), or (iii) such insurance carrier shall revoke a consent previously given or shall cancel or threaten to cancel any policy previously issued and then in force and effect, because of such waiver of subrogation, then, in any of such events, the waiver of subrogation contained herein shall thereupon
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be ofno further force or effect as to the loss, damage or destruction covered bysuch policy. ff,however, at any time thereafter, a consent tosuch waiver ofsubrogation shall be obtainable without a substantial additional premium from any existing or substitute insurance carrier, thewaiver hereinabove provided for shall again become effective.
11.6 Failure to Insure. If Tenant fails to maintain any insurance which Tenant is required to maintain pursuant to this Article 11,Tenant shall beliable to Landlord for any loss or cost resulting from such failure to maintain. Landlord shall have the right, in itssole discretion, to procure and maintain such insurance which Tenant is required to maintain hereunder and the cost thereof shall be deemed Additional Rent due and payable by Tenant. Tenant may not self-insure against any risks required to be covered by insurance provided by Tenant hereunder.
11.7 Miscellaneous. Landlord makes no representation that the insurance coverage specified to be carried by Tenant pursuant to thisArticle 11is adequate to protect Tenant against Tenant's undertaking under the terms of this Lease or otherwise, and in the event Tenant believes that any such insurance coverage called for under this Lease is insufficient, Tenant shall provide, at its own expense, such additional insurance asTenant deems adequate. Tenant shall not keep, use, sell or offer for sale inor upon the Premises any article
which may be prohibited by any insurance policy periodically in force covering the Premises, the Building or the Project. Ifany of
Landlord's insurance policies shall be cancelled or cancellation shall be threatened or the coverage thereunder reduced or threatened to be reduced in any way because of the use of the Premises or any part thereof by Tenant or any assignee, subtenant, licensee or invitee of Tenant and, ifTenantfails to remedy the condition giving rise to such cancellation, threatened cancellation, reduction of coverage, or threatened reduction of coverage, within 48 hours after notice thereof, Landlord may,at itsoption, either terminate thisLease orenter upon the Premises and attempt to remedy such condition, and Tenant shall promptly pay the cost thereof to Landlord as Additional Rent. Landlord shall not be liable for any damage or injury caused to any property of Tenant or ofothers located on the Premises resulting from such entry. IfLandlord is unable, or elects not to remedy such condition, then Landlord shall have all of the remedies provided for in this Lease upon the occurrence of an Event of Default. Tenant shall notdo or permit tobe done any act orthings upon orabout thePremises,theBuilding or (heProject, which will (i)result in the assertion ofany defense by the insurer toany claim under, (ii) invalidate or (iii) bein conflict with, the insurance policies of Landlord or Tenant covering theProject, the Building, the Premises or fixtures and property therein, or which would increase the rate of fire insurance applicable to theBuilding or the Project toanamount higher than it otherwise would be; and Tenant shall neither do nor permit to be done any act or thing UPOII or about the Premises, the Building or the Project which shall or might subject Landlord to anyliability or responsibility for injury to any person or persons or to property. If, as a result of any act or omission by or on the part of Tenant or violation of thisLease, whether or not Landlord has consented to thesame, the rate of"All Risk" or other type of insurance maintained by Landlord on or with respect to the Project or the Building and fixtures and property therein, shall be increased to an amount higher than it otherwise would be, Tenant shall reimburse Landlord for all increases of Landlord's insurance premiums so caused within ten (10) days after delivery of written demand therefor by Landlord. In any action or proceeding wherein Landlord and Tenant are parties, a schedule or"make-up" of rates for the Project, the Building or the Premises issued by the body making fire insurance ratesor established by insurance carrier providing coverage for theProject, the Building orthe Premises shall be presumptive
evidence of the facts stated therein including the items and charges taken into consideration in fixing the "All Risk" insurance rate then applicable to the Project, the Building or the Premises.
ARTICLE 12" DAMAGE OR DESTRUCTION
12.1 Repair of the Premises; Rental Abatement. Tenant shall promptly notify Landlord in writing (a"Damage Notice") of any casualty event, damage or condition to which this Article 12 is or may be applicable (a "Casualty"). Landlord shall, within a reasonable time after the discovery by Landlord of any damage resulting from any Casualty, subject to reasonable delays for insurance adjustment or other matters beyond Landlord's reasonable control, and subject to all other terms of this Article 12, begin to repair the damage to the damage to the Building resulting from such Casualty and proceed with reasonable diligence to restore the Building (the"Restoration") to substantially the same condition as existed immediately before such Casualty, except for modifications required by applicable Laws orcovenants, conditions and restrictions, and modifications thatare deemed desirable ingood faith by Landlord; provided, however, that Landlord shall not be required to repair or replace any of the Alterations, furniture, equipment, fixtures, and other improvements or personal property which may have been placed by,or at the request of, Tenant or other occupants in the Building or the Premises, all of which shall be promptly repaired, restored or replaced byTenant; provided that Landlord shall have theright to elect (in its sole discretion) torestore theleasehold improvements in the Premises, and if Landlord soelects to restore such leasehold improvements,Tenantshall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable toTenant under Tenant's insurance required under this Lease with respect to the leasehold improvements in the Premises (and of the cost of the restoration of the leasehold improvements in the Premises exceeds the amount of insurance proceeds received by Landlord from Tenant's insurance carrier, tileexcess cost shall be paid by Tenant to Landlord prior to Landlord's repair of the damage, or atLandlord's election, at any later time following Landlord's discovery of any insufficiency of such insurance proceeds). Landlord shall have no liability for any inconvenience or annoyance to Tenant orinjury to Tenant's business as aresult of any Casualty, or the Restoration, regardless of the cause therefor. Ifany Casualty causes Material PremisesDamage, then Base Rent and Additional Rent payable under Article 4shall abate if and to theextent Tenant ceases to occupy a material portion of the Premises that was rendered unfit for occupancy as aresult of such Material Premises Damage, for the period of timecommencing on the date Tenant actually vacates such material portion of the Premises and continuing until the Restoration of the Material Premises Damage issubstantially completed (as determined by Landlord's architect); provided, however, that such abatement shall be limited to the proceeds of rental interruptioninsurance proceeds with respect to the Premises and such Casualty collected by Landlord. "Material Premises Damage" shall exist ifany material portion of the Premises isrendered unfit for occupancy ornon-accessibleas aresult of material damage (by Casualty) to the Premises and/or to portions of the Common Areas that are required for access to the Premises
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12.2 Exceptions to Landlord's Obligations. Notwithstanding anything to the contrary contained in this Article 12, Landlord shall have no obligation to perform the Restoration and shall have the right to terminate this Lease inany case where (a) any portion of the Premises or any material portion of the Building isdamaged and (b) (i) Landlord estimates in good faith that theRestoration cannot reasonably be completed (without the payment of overtime) within one hundred eighty (180) days of Landlord's actual discovery ofsuch damage, (ii)the Holderof any SecurityDocument requires theapplication of any insurance proceeds with respect to such Casualty to
be applied to the outstanding balance ofthe obligationsecured by suchSecurityDocument, (iii)the cost of such Restoration is not fully
covered by insurance proceeds available to Landlord and/or payments received byLandlord from tenants, (iv) Tenant shall beentitled to an
abatement of rent under thisSection 12for any period of timein excess of thirty-threepercent (33%) of the remainder ofthe Term, or (v) such Casually occurs(or Landlord discoversthe damage relating thereto) at any timewithin the lasteighteen(18) months of thethen applicable Term (disregarding Extension Termsif any). Such right of termination shall beexercisable by Landlord by delivery of written noticetoTenant atanytime followingthe Casualtyuntil forty-five(45) daysfollowing thelater of (X) delivery ofthe Damage Notice or (Y) Landlord'sdiscovery or determination of any of theevents described in clauses (i) through (v) of theprecedingsentenceandshall be effective upon delivery of such notice of termination (or if Tenant has not vacated the Premises, upon theexpiration of thirty (30) days thereafter).
12.3 Waiver. Landlordand Tenant agreethat theprovisions of thisArticle12 and the remaining provisionsof this Leaseshallexclusively govern the rightsand obligations of theparties with respect toanyand all damageto,or destruction of,allor anyportion of thePremises01' theProject, and Landlord and Tenant hereby waiveand release each and all of their respective common law and statutory rightsinconsistent herewith, whether now or hereinafter in effect (including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code,as amended from time to time).
ARTICLE 13 - CONDEMNATION
13.1 Taking. If the whole or a material portion of the Premises, the Project or theBuildingshall betaken under the power of eminent domain, orsold to preventtheexercise thereof (collectively, a"Taking"), thisLease shall automatically terminate as of thc earlier of the date oftransfer of title resulting from such Takingor thedate oftransfer of possession resulting from such Taking(the "Taking Date"). In the event of a Taking of such portion of the Premises, the Project or the Building asshall, in the opinion of Landlord, substantiallyinterferewith Landlord's operation thereof,Landlord may terminate this Leaseupon thirty (30) dayswritten notice to Tenant givenat any time within sixty (60) days followingthe Taking Date.
13.2 Restoration of Premises. Ifaportionof thePremisesis sotaken and thisLease isnotterminated,Landlordshall,with reasonable diligence, proceedto restore (to theextent permitted by Lawand covenants,conditionsandrestrictionsthen applicable to theProject) thePremises (other than Tenant's personal property and fixtures,and tenant improvementsnot constituting Building Standard Installations) to acomplete,functioningunit, to theextent of the condemnationaward received byLandlord. Insuch case, theBaseRentshall be reduced proportionately based on the portion ofthePremisesso taken.
13.3 Award. In the event of any Taking,the entireaward for such takingshall belong to Landlord, except that Tenantshall be entitled to independently pursue aseparateaward relating to thelossof, or damage to, Tenant's personal property and tradefixturesand Tenant'srelocation costsdirectlyassociated with thetaking.Except asprovided herein, Tenantshall notassert any claim against Landlord or thecondemningauthority for,and herebyassigns to Landlord, anycompensation inconnectionwithany suchTaking,and Landlord shall beentitled to receivethe entire amount ofany award therefor, without deductionfor anyestate or interest of Tenant.
13.4 Temporary Taking. No temporary Takingshall terminatethisLease orentitleTenant to any abatementof the Rent payable to Landlord under thisLease; provided,further,that theportion of anyaward for such temporaryTakingthat isallocableto thePremises shall belongto Tenant to theextentthat the award applies to any time period duringtheTerm of thisLeaseand toLandlord to theextent that theawardapplies toanytime periodoutsidetheTenn.
13.5 Exclusive Remedy. ThisArticle 13shall be Tenant's soleandexclusiveremedy in the event of a Taking. Each party herebywaivestheprovisionsof Sections 1265.130 and 1265.150 of the California Codeof Civil Procedureand theprovisions of any successor or other law of like import.
ARTICLE 14 - RELOCATION
Landlordshall havetheright,in its sole discretion,upon not lessthan thirty(30)dayspriorwritten noticeto Tenant,to relocate Tenantand tosubstitute for thePremises described aboveto otherspacein theProjectcontainingat leastas much rentable area asthe Premisesdescribed in Item 2of the Basic LeaseProvisions. IfTenant isalreadyin occupancy of the Premises,then Landlord shall also reimburseTenant for Tenant's reasonable movingand telephonerelocationexpensesand for reasonablequantitiesof newstationeryupon submission to Landlord of receipts forsuch expendituresincurred by Tenant,
ARTICLE 15 - ASSIGNMENT AND SUBLETTING
15.! Restricted; Permitted Transfers.
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(
15.1.1 Except as provided in Section 15.1.2 below, without the prior written consent of Landlord, Tenant shall not, either involuntarily or voluntarily or by operation of law or otherwise, assign, mortgage, pledge, hypothecate, encumber or permit any lien to attach to, or transfer this Lease or any interest herein, or sublet the Premises or any part thereof, or pC1111tiht e Premises to be occupied by anyone other than Tenant or Tenant's employees (each a "Transfer" and any person or entity10whom a Transfer is made or sought to be made is referred to herein as a "Transferee"). Any Transfer in violation of the provisions of this Article 15 shall be void and, at Landlord's option,shall constitute an Event of Default. For purposes of thisLease, the term "Transfer" shall also include a direct or indirect transfer, assignment, pledge, or hypothecation of a Controlling (defined below) interest in Tenant. "Control" or "Controlling" means the possession, direct or indirect, of the power to direct or cause the direction of tile management and policies of a person or entity, or ownership of any sort. Notwithstanding anything contained in this Article 15 to the contrary, Tenant expressly covenants and agrees not to enter into any lease, sublease, license, concession or other agreement for lise, occupancy or utilization of the Premises which provides for rental or other payment for such lise,occupancy or utilization based in whole or in part on the net income or profits derived by any person from the property leased, used, occupied or utilized (other than an amount based on a fixed percentage or percentages of receipts or sales), and that any such purported lease, sublease, license, concession or other agreement shall be absolutely void.
15.1.2 Notwithstanding the foregoing, Tenant shall, upon not less than ten (10) business days written notice to Landlord (along with any relevant information as may be required hereunder), be permitted, without Landlord's prior written consent (and without being subject to Sections 15.2, 15.3, 15.4 and 15.5 below), to assign this Lease to a Successor (defined below) (a "Permitted Transfer") on the condition that the person or entity to whichsuch Permitted Transfer ismade (a "Permitted Transferee") is(i)of an equal or greater financial worth as Tenant as of the date of such Permitted Transfer,(ii) of a character consistent with Landlord's first class standard for tenants of the Project, and (iii) assumes all of Tenant's rights and obligationshereunder. "Successor" means (A) an entity which is the result of a conversion of Tenant from a corporation to a different form of entity (such as a limited liability company or other entity form) recognized by, and qualified to do business in, the State of California, (B) any successor corporation or other entity resulting from a merger, consolidation, acquisition or other action to Tenant, or (C) a person or entity that purchases all or substantially all of Tenant's or Tenant's parent company's assets. Any Permitted Transferee shall assume in writing all of Tenant's obligations under this Lease, and notwithstanding any Permitted Transfer.
15.2 Notice to Landlord. If Tenant desires to Transfer this Lease or any interest herein, then at least twenty (20) business days (but no more than one hundred eighty (180) days) prior to the effective date of the proposed Transfer, Tenant shallsubmit to Landlord a written request (a "Transfer Notice") for Landlord's consent, which notice shall include:
15.2.1 A statement containing (i) the name and address of the proposed Transferee; (ii) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, and any other information and materials(including, without limitation, credit reports, business plans, operating history, bank and character references) required by Landlord to assist Landlord in reviewing the financial responsibility, character, and reputation of the proposed Transferee; (iii) the nature of such Transferee's business and proposed use of the Premises; (iv) the proposed effective date of tile Transfer; (v) a description of the portion of the Premises subject to the proposed Transfer; (vi) all of the principal terms of the proposed Transfer (including a calculation of the Transfer Profits (defined below»; and (vii) such other information or materials as Landlord may reasonably request (provided, that if Landlord requests such additional information or materials, the Transfer Notice shall not be deemed to have been received until Landlord receives such additional materials).
15.2.2 Four (4) originals of the proposed assignment or sublease or other Transfer on a form approved by Landlord and four (4) originals of the Landlord's Consent to Sublease or Assignment and Assumption of Lease and Consent executed by Tenant and the proposed Transferee.
15.2.3 IfTenant modifies any of the terms and conditions relevant to a proposed Transfer specified in the Transfer Notice such that Landlord would be entitled to withhold its consent to such Transfer under Section 15.4, Tenant shall re-submit such Transfer Notice to Landlord for its consent pursuant to all of the te1111aSnd conditions of this Article 15.
15.3 Landlord's Recapture Rights. At any time within twenty (20) businessdays after Landlord's receipt of all (but not less than all) ofthe information and documents described in Section 15.2, Landlord may, at itsoption, in its sole and absolute discretion, by written notice to Tenant, elect to: (i) sublease the Premises or the portion thereof proposed to be sublet by Tenant upon the same terms as those offered to the proposed subtenant; (ii) take an assignment of this Lease upon the same terms as those offered to the proposed assignee; or (iii) terminate this Lease in its entirety or as to the portion of the Premises subject to the proposed Transfer, with a proportionate adjustment in the Rent payable hereunder if this Lease is terminated as to less than all of the Premises. If Landlord does not exercise any of the options described in the preceding sentence, then, during the above-described twenty (20) business day period, Landlord shall either consent or deny its consent to the proposed Transfer,
15.4 Landlord's Consent; Standards.
15.4.1 Subject to the provisions of Section 15.3, Landlord's consent to any proposed Transfer shall not be unreasonably withheld; provided, however, that in addition to any other grounds available hereunder or under applicable Law for properly withholding consent to such proposed Transfer, Landlord's consent with respect thereto shall be deemed reasonably withheld if in Landlord's good faith judgment: (i) the proposed Transferee does not have the financial strength (taking into account all of the Transferee's other actual01'potential obligations and liabilities) to perform its obligations with respect to the proposed Transfer (or otherwise does not
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satisfy Landlord's standards for financialstanding with respect to tenants under direct leasesofcomparable economicscope);(ii) the businessand operations of the proposed Transferee are notofcomparable quality to the business and operationsbeingconducted bydirect tenantsofLandlord intheProject; (iii) theproposed Transfereeintends toleaseany part ofthePremisesforapurpose not permittedunder this Lease;(iv)eithertheproposed Transferee,or any personwhich directly or indirectly controls,iscontrolledby,or is under common control with the proposed Transferee occupies space in the Project or has negotiated with Landlord (or anyaffiliate of Landlord) withinthepreceding one hundred eighty (180) days (or is currently negotiating with Landlord (oranyaffiliate ofLandlord»to lease space in the Project; (v) the proposed Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of theProject asevidenced by the parameters consistently applied inLandlord's direct leasing activities; (vi)the useof the Premises,the Building or theProject by the proposed Transfereewould, in Landlord's judgment, significantly increase the pedestriantraffic inandout of theBuildingand/or the Project,would generateincreased loitering in CommonAreas,wouldincrease security risk,orwould require anyalterationsto the Buildingor the Project tocomply with applicable Laws;(vii) theproposed Transfer wouldresultin morethan threesubleasesper each full floor of the Premises being in effect at anyone time during the Term; (viii) the Holder of any SecurityDocument(as such terms are defined below) consent to such Transfer isrequired fails to consent thereto; (ix) at the time Tenant delivers theTransfer Notice, there is then in effect an uncured Event of Default;(x) the terms of the proposed Transfer will allow theTransferee toexercise a right of renewal, right of expansion, right offirst offer, orothersimilar rightsheld by Tenant(or will allow the Transfereeto occupy spaceleased by Tenant pursuant to anysuch right);(xi)the proposed Transferwouldcause Landlordto be inviolation ofanotherleaseor agreement to which Landlord is a party or would give an occupant of theProject a righttocancel or modify its lease; (xii) the proposed Transfer would be on economic terms (based upon effectiverental rates) morefavorable to the Transferee than the economic termsthen being accepted by Landlord for comparable direct leasing transactions in the Project; or (xiii)the proposed Transferee has thepower ofeminent domain, is a governmental agency or an agency orsubdivision of a foreigngovernment,
15.4.2 Notwithstandinganything tothecontrary inthisLease,if Tenant or anyproposed Transferee claims that Landlord has unreasonably withheld or delayed its consent or otherwise acted in a manner not permitted under thisArticle 15, thenthe sole remedy of Tenant and such proposed Transferee if such claim is determined by a court of competentjurisdictionto be successful shallbea declaratory judgment and an injunction for the relief sought without any monetary damages or other monetaryrelief. Tenant and each proposed Transferee herebywaive to the maximum extent permitted by Law any and all other remedies, including,withoutlimitation,anyright at law or equity to terminate thisLeasewith respect to any such claim. Tenant shall indemnify,defend, protect andhold harmlessLandlord from any andall Claims, Damages and Costs involvingor asserted by anythird party or parties(including,without limitation,Tenant's proposed Transfereeand any broker representingTenant and/orsuch Transferee)claimingthey weredamaged byLandlord's wrongful withholding or delaying of Landlord's consent to such proposed Transfer or other breach of this Article 15. Tenantacknowledges that Tenant'srights under thisArticle 15 satisfy the conditionsset forth in Section1951.4 of the CaliforniaCivilCode with respect to theavailability toLandlord ofcertainremedies for adefault by Tenant under this Lease.
15.5 Transfer Profits. Subject tothe provisionsofthis Article 15,if Landlordconsents to anyTransfer, Tenantshallpayto Landlord fiftypercent (50%) of any Transfer Profits (defined below). "Transfer Profits" meansall rent, additional rentor other consideration paid by or on behalf of such Transferee in connection with the Transfer in excess of Base RentandAdditional Rent payable by Tenant under this Lease during the Term of the Transfer. Tenant shall provideLandlord withadetailedstatement settingforth the calculation ofany Transfer Profits Tenant either has or will derivefromsuchTransfer. Inaddition,Landlord or its representative shall have therightatall reasonabletimes to audit thebooksand recordsofTenantwith respect tothecalculationof the Transferprofits.Ifsuch inspection reveals that the amount of TransferProfits paid to Landlord wasincorrect, then within ten (10) daysofTenant's receiptofthe resultsofsuch audit, Tenantshall pay Landlord the deficiency and the costof Landlord's audit.
15.6 Landlord's Costs. With respect toeach Transfer proposed to beconsummated by Tenant, whether or not Landlord shallgrant consent,Tenant shall pay allofLandlord's review and processingfees,and costs, as wellas any reasonable professional, attorneys', accountants',engineers'or otherconsultants'feesincurred by Landlord relating tosuch proposalTransfer withinten (10) daysafter written request by Landlord.
15.7 Continuing Liability of Tenant. Notwithstandingthe consummation orattempted consummation ofany Transfer under thisArticle 15, Tenant shall remain as fully andprimarily liable for thepayment ofRent and fortheperformance of allother obligations of tenant contained inthisLeaseto thesameextent as if theTransferhad not occurred;provided, however, that any act oromissionof allyTransferee, otherthan Landlord, thatviolatesthetermsof thisLeaseshall bedeemeda violationof thisLease by Tenant. If any Transferee defaults beyond applicablecureand graceperiods in the performance of any of the termshereof,Landlordmay proceeddirectly against Tenant withoutthe necessity of exhaustingitsremedies against such Transferee. Landlordmayconsent to subsequent Transfersof this Lease withTransferees of Tenant,upon noticeto Tenant, but without obtainingitsortheir consent thereto,andsuchactionshall not relieveTenant ofitsliability underthisLease.
15.8 Non-Waiver. Theconsent by Landlordto anyTransfershallnot relieve Tenant, or any person claiming through or byTenant, of the obligation to obtain the consentof Landlord, pursuant to thisArticle 15,to any further Transfer. In theeventof aTransfer,Landlord may collect rent from the Transferee without waivingany rights hereunder and collection of therent froma person otherthan Tenantshall not be deemed a waiver ofany of Landlord'srights under thisArticle15, an acceptanceofTransferee asTenant,or a release ofTenantfrom theperformance of Tenant'sObligations under thisLease.
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ARTICLE 16 - DEFAULT AND REMEDIES
16.1 Events of Default ByTenant. The occurrence ofany of thefollowingshall constitute amaterial default and breach of thisLease by Tenant (an "Event of Default"):
16.1.1 Any failureby Tenant to pay anyRent or any othercharge required to be paid under thisLease,or anypart thereof, within three (3) daysof notice thatthe sameisdue, which notice shall be in lieuof any noticerequired under CaliforniaCode of Civil Procedure Section [161 or any similar or successor law.
16.1.2 The abandonment of the Premisesby Tenant,or the vacationofthe PremisesbyTenant for a period of ten (l0) consecutive days (with or without the payment of Rent), or thefailure of Tenant to takeoccupancyof the Premiseswithin thirty (30) daysof the Commencement Date,itbeing agreed thatthefact thatany of Tenant'sProperty remains in thePremises shall not beevidence that Tenant hasnot vacated orabandoned thePremises.
16.1.3 Any failureby Tenanttoexecuteand deliver any statement01'document described in Articles 18 and 22 requested by Landlord within the time periods specified therein, where such failure continuesfor three (3)days after deliveryofwritten notice of such failure by Landlord to Tenant; provided,however, that any such notice shall be in lieu of,and1I0t in addition to, any notice required underSection 1161etseq.,of the CaliforniaCode of Civil Procedure.
16.1.4 The failure by Tenant toobserve or perform anyother provision of this Leaseto be observed or performed by Tenant, other than those described in Sections 16.1.1, 16.1.2 and 16.1.3 above, ifsuch failure continues for twenty (20) days (except where a different period of time is specified in thisLease,in whichcase such differenttime periodshall apply)after written notice thereof byLandlord to Tenant;provided,however,that if the natureof the default is suchthat it cannot be cured within the twenty(20) day period,no default shall exist ifTenantcommencesthecuring of the defaultwithin the twenty(20) day period and thereafter diligentlyprosecutesthe same to completion. The twenty (20) day notice described hereinshall be in lieu of, and not in addition to, any notice required under Section 1161 of theCaliforniaCode of Civil Procedureor any other law now or hereafter in effect requiringthat noticeof default be given prior to the commencementofan unlawful detainer orotherlegal proceeding.
16.1.5 The making orfurnishing by Tenantofany warranty, representation or statement to Landlord inconnection with this Lease,or any other agreement to which Tenant and Landlord are parties, which isfalse or misleading in any material respect when made or furnished.
16.1.6 The assignment, sublettingor other Transfer, orany attemptedassignment, subletting or other Transfer, of thisLease in violation ofArticle 15.
16.1.7 Any instance whereby Tenant or any general partner of Tenantshall ceasedoing business asa goingconcern,makean assignment for the benefit of creditors, generally not payitsdebts asthey becomedue or admitin writingitsinability topay its debtsas they become due, file a petition commencinga voluntary case under any chapter of the Bankruptcy Code, be adjudicated an insolvent, file a petition seeking for itself any reorganization, composition, readjustment, liquidation, dissolutionorsimilar arrangement under the Bankruptcy Code orany other present or future similarstatute, law,rule or regulation, or file an answer admitting the material allegations of a petition filedagainst itinanysuch proceeding,consentto thefiling of such a petitionoracquiesce intheappointment of a trustee, receiver,custodian or other similarofficial for it or of all or any substantial part ofits assets or properties,or take anyaction looking to its dissolution or liquidation.
16.1.8 Any instance whereby a case, proceeding orotheractionshall beinstituted against Tenant or anygeneral partner of Tenant seekingtheentry of an order for relief against Tenant or anygeneral partner thereof asdebtor, toadjudicate Tenant or any general partner thereof asa bankrupt or insolvent,or seeking reorganization, arrangement, readjustment, liquidation, dissolution or similar relief against Tenant or any general partner thereof under theBankruptcyCode or anyother present or future similar statute, law, ruleor regulation, which case,proceeding orother action either resultsinsuchentry,adjudication or issuance or entryof any otherorder or judgment having a similareffect, or remainsundismissed for 60days, or within60 days afterthe appointment(without Tenant'sorsuch general partner's consent) of any trustee, receiver,custodian orother similar official for it or suchgeneral partner, or of all or any substantial partofits or suchgeneral partner's assets and properties,such appointment shall not be vacated.
16.1.9 The appointment of a receiver, trusteeorcustodian to take possession ofallor any substantial portionof the assets of Tenant, or the formation of any committee of Tenant's creditors, or any classthereof, forthe purpose of monitoring or investigating the financial affairsof Tenant or enforcing such creditors' rights.
16.1.10 Thedefault by anyguarantor of Tenant's obligations hereunder under anyguarantyof this Lease, the attempted repudiation or revocation of anysuch guaranty or the participation by any suchguarantor in any otherevent described in this Section 16.1 (asif this Section 16.1.10 referred to suchguarantor in place of Tenant).
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16,2 Landlord's Right To Terminate Upon Tenant Default. In the event of any default by Tenant as provided in Section 16.1 above, Landlord shall have the right to terminate this Lease and recover possession of the Premises by giving written notice to Tenant of Landlord's election to terminate this Lease, in which event Landlord shall be entitled to receive from Tenant:
plus
16.2.1 The worth at the time of award or any unpaid Rent which had been earned at the time of such termination;
16.2.2 The worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the lime of award exceeds the amount of such rental loss Tenant proves could have been reasonably avoided; plus
16.2.3 The worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the lime of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus
16,2.4 Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and
16.2.5 At Landlord's election, suchotheramounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. As used in Sections 16.2.1 and 16.2.2 above, "worth at the time of award" shall be computed by allowing interest at the then highest lawful contract rate of interest. As used in Section 16.2,3 above, "worth at the time of award" shall be computed by discounting such amount at the Interest Rate. As used herein, the term "Interest Rate" means the lesser of (i) the "prime rate" or "reference rate" announced from time to time by Bank of America, N.T, & S.A. (or such reasonable comparable national banking institution as is selected by Landlord in the event Bank of America, N.T. &S.A. ceases to publish a prime rate or reference rate) (the
"Prime Rate"), plus one percent (l%),or (ii) the maximum rate permitted by Law.
16.3 Landlord's Right To Continue Lease Upon Tenant Default. In the event of a default of this Lease and abandonment of the Premises by Tenant, if Landlord does not elect to terminate this Lease as provided in Section 16.2 above, Landlord may from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease. Without limiting the foregoing, Landlord has the remedy described in California Civil Code Section 1951.4 (Landlord may continue this Lease in effect after Tenant's breach and abandonment and recover Rent as it becomes due, ifTenanthas the right to sublet or assign, subject only to reasonable limitations). To the
fullest extent permitted by law, the proceeds of anyrelettingshall be applied first to pay to Landlord all costs and expenses of suchreletting
(including without limitation, costs and expenses of retaking or repossessing the Premises, removing persons and properly therefrom, securing new tenants, including expenses for redecoration, alterations and other costs in connection with preparing the Premises for the new tenant, and if Landlord shall maintain and operate the Premises, the costs thereof) and receivers' fees incurred in connection with the appointment of and performance by a receiver to protect the Premises and Landlord's interest under this Lease and any necessary or reasonable alterations; second, to the payment of any indebtedness of Tenant to Landlord other than Rent due and unpaid hereunder; third, to the payment of Rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of other or future obligations of Tenant to Landlord as the same may become dueandpayable, and Tenant shall not be entitled to receive any portion of such revenue. No re-entryor taking of possession of the Premises byLandlordpursuant to this Section 16.3 shall be construed as an election to terminate this Lease unless a written notice of such election shall be given to Tenant or unless the termination thereof be decreed by a court of competent jurisdiction. Notwithstanding any relctting without termination by Landlord, Landlord may, at any time after suchreletting,elect to terminatethis Lease for any such Event of Default. Uponthe occurrence of an Event of Default by Tenant under Section 16.1 above, if the Premises or any portion thereof are sublet, Landlord, in addition and without prejudice to any other remedies herein provided or provided by Law, may, at its option, collect directly from the sublessee all rentals becoming due to the Tenant and apply such rentals against other sums due hereunder to Landlord.
16.4 Right of Landlord to Perform. All covenants and agreements to be performed by Tenant under this Lease shall be performed by Tenant at Tenant's sole cost and expense. If Tenant shall fail to pay any sum of money, other than Base Rent, required to be paid by it hereunder or shall fail to perform any other act on itspartto be performed hereunder, then, in addition to and without prejudice to any other right or remedy of Landlord (including, without limitation, any right or remedy provided under Article 9), Landlord may cure the same at the expense of Tenant (i) immediately and without notice ill the case (a) of emergency, (b)where such default unreasonably interferes with any other tenant in the Project, or (c) where such default will result in the violation of Law or the cancellation of any insurance policy maintained by Landlord and (ii) in any other case if such default continues for ten (10) days from the receipt by Tenant of notice of such default from Landlord. Any sums so paid by Landlord and all incidental costs, together with interest thereon at the maximum rate permitted by law from the date of such payment, shall be payable to Landlord as Additional Rent on demand, and Landlord
shall have the same rights and remedies in the event of nonpayment asin the case of default by Tenant in the payment of Rent.
16.5 Late Payments of Rent. Following the occurrence of three instances of payment of Rent more than 10days late in any twelve month period, Landlord may, without prejudice to any other rights or remedies available to it, upon written notice to Tenant,(i) require that all remaining monthly installments of Rent shall be payable three months in advance; and in addition or in the alternative at
Landlord's election, (ii) require that Tenant increase the amount of the Security Deposit (if any) by an amount equal to one month's Rent.
16.6 Default Under, Other Leases. If the term of any lease, other than this Lease, heretofore or hereafter made by Tenant for any space in the Building shall be terminated or terminable after the making of this Lease because of any default by Tenant under such
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other lease, suchfactshallempower Landlord,at Landlord's sole option,to terminate thisLeaseby noticeto Tenant or to exerciseanyof therightsorremediesset forth illSection 16.2.
16.7 Subleases of Tenant. Whether or not Landlord elects to terminate thisLease on account of anyEvent of Default by Tenant,asset forth in thisArticle 16, Landlord shall have the right to terminate any andall subleases,licenses,concessions or otherconsensual arrangements for possession entered into byTenant andaffecting thePremises or may, in Landlord'ssolediscretion, succeed to Tenant's interestinsuchsubleases, licenses, concessionsor arrangements. In the eventof Landlord's election to succeed to Tenant's interest in anysuch subleases, licenses, concessions or arrangements, Tenantshall, as of thedate of noticeby Landlord of such election, haveno further right to or interest in the rent or otherconsiderationreceivable thereunder.
16.8 Efforts to Relet. For the purposesofthisArticle 16, Tenant'sright to possessionshall notbedeemed to have been terminated byefforts of Landlord to relet the Premises, by its actsof maintenance or preservation with respect to the Premises, or by appointment of areceiver10protect Landlord's interestshereunder. The foregoingenumeration is not exhaustive, but merely illustrative of acts which maybeperformed by Landlordwithout terminating Tenant'srightto possession.
16.9 Waiver of Right of Redemption. Tenant hereby waivesfor Tenant andfor all those claiming under Tenantall right now or hereafterexisting to redeem by order or judgment of any court or by any legal processor writ,.Tenant's right of occupancy of the Premisesafter any terminationof thisLease, Notwithstanding any provisionof this Lease tothe contrary, the expiration01'termination of thisLease and/or the termination of Tenant's rightstopossession of the Premises shall not discharge, relieve or releaseTenantfrom any obligation or liability whatsoever under anyindemnity provision of thisLease,including without limitation the provisionsof Section 11.1 hereof.
16.10 Non-Waiver. Nothingin this Article16shall bedeemed to affect Landlord's rightsto indemnification for liabilityorliabilities arisingprior to termination of thisLeasefor personal injury or propertydamagesunder theindemnification clause orclauses contained in this Lease. Noacceptance by Landlord of alesser sum than the Rent then due shall be deemed to be other than onaccount of the earliest installment ofsuch rent due,nor shall anyendorsement or statement on any check or any letter accompanying anycheck or payment as rent bedeemedan accordandsatisfaction, and Landlord may acceptsuch check01' paymentwithout prejudice to Landlord's rightto recoverthebalance of such installment or pursueanyother remedy providedinthisLease. The deliveryof keysto any employee of Landlord or toLandlord's agent or anyemployee thereof shall not operate asatermination of this Lease or a surrender of the Premises.
16.1 I Waiver of Trial byJury. To thefullest extent permitted by Law, Landlord and Tenant eachexpressly waivetheir right totrial byjury in anytrial held as aresult of a claim arisingout ofor inconnection with thisLeaseinwhich Landlord and Tenant are adverseparties. The filingofacross-complaint by one against the other is sufficient to make the parties "adverse."
16.12 Cumulative Remedies. Thespecific remediesto which Landlord may resort under the terms of this Lease arecumulative andarenot intended to beexclusiveof any other remediesor means of redresstowhich it may be lawfully entitled in case of any breach or threatened breach by Tenant of anyprovisions ofthis Lease. In addition to the other remediesprovided in thisLease,Landlord shall be entitled to a restraint by injunction of the violation or attempted or threatened violation of any of the covenants, conditions or provisions of this Lease or to adecree compelling specific performance of anysuch covenants, conditions or provisions.
16.13 DefaultbyLandlord. Landlord'sfailure to perform or observeany ofits obligationsunder thisLeaseshallconstitute a default by Landlord underthisLease onlyif such failureshall continue for a period ofthirty (30) days (or the additional time,if any,that is reasonably necessary promptly and diligently to cure the failure) after Landlord receiveswritten notice from Tenant specifying the default, which notice shall describe in reasonable detail the natureand extent of the failureand shall identify theLease provision(s) containing theobligation(s) in question. Subject to the remaining provisions of thisLease,following theoccurrence of anysuch default, Tenant shall have the right to pursue any remedy available under Law for such default by Landlord;provided, however,thatinno case shall Tenant have any right toterminate this Lease onaccount of anysuch default.
ARTICLE 17 - ATTORNEYS FEES; COSTS OF SUIT
17.1 Attorneys Fees. If either Landlord or Tenantshall commence any action or other proceeding against the other arising out of, or relatingto, this Leaseor the Premises, theprevailing partyshall beentitled to recover from thelosing party, in addition to any otherrelief, its actual attorneysfeesirrespective of whether or not the action or other proceeding is prosecuted to judgmentand irrespective of any courtschedule of reasonableattorneys' fees. In addition, Tenantshall reimburseLandlord,upon demand,for all reasonable attorneys' feesincurred in collecting Rent or otherwise seekingenforcement against Tenant, its sublessees andassigns, ofTenant's obligations under this Lease.
17.2 Indemnification. Should Landlord be made aparty toanylitigation instituted byTenant againstaparty other than Landlord, or byathird party against Tenant, Tenantshall indemnify,hold harmless and defend Landlord from anyand all loss, cost, liability, damageor expenseincurred by Landlord, including attorneys' fees, in connection with the litigation.
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ARTICLE 18 - SUBORDINATION AND ATTORNMENT
18.1 Subordination. This Lease, find the rights of Tenant hereunder, are and shall be subordinate tothe interests of (i)all present and future ground leases and master leases of all or any part of the Building; (ii) present and future mortgages and deeds of trust encumbering all or any part of the Building; (iii) all [last and future advances made under anysuch mortgages or deeds of trust; and (iv) all renewals, modifications, replacements and extensions of any such ground leases, master leases, mortgages and deeds of trust (collectively, "Security Documents") which now or hereafter constitute a lien upon or affect the Project, the Building or the Premises. Suchsubordination shall be effective without the necessity of the execution by Tenant of any additional document for the purpose of evidencing or effecting such subordination. In addition, Landlord shall have the right to subordinate orcause to be subordinated any such SecurityDocuments to this Lease and in such case, in the event of the termination or transfer of Landlord's estate orinterest in theProject byreason of any termination or foreclosure of any such Security Documents, Tenant shall, notwithstanding such subordination, attorn to andbecome
the Tenant of the successor in interest to Landlord at the option of such successor in interest. Furthermore, Tenant shall within ten(10)
days of demand therefor execute any instruments or other documents which may be required by Landlord orthe holder ("Holder") of any Security Document and specifically shall execute, acknowledge and deliver within five (5) days of demand therefor a subordination of lease or subordination ofdeed of trust, in the form required by the Holder of the Security Document requesting the document; thefailure to do so by Tenant within such time period shall be a material default hereunder. Such instruments may contain, among other things, provisions to the effect that such lessor, mortgagee or beneficiary (hereafter, for the purposes of this Section 18.i, a "Successor Landlord") shall (a) not be liable for any act or omission of Landlord or its predecessors, ifany, prior to the date of such Successor Landlord's succession to Landlord's interest under this Lease; (b) not be subject to any offsets or defenses which Tenant might have been able to assert against Landlord or its predecessors, if any, prior to the date of such Successor Landlord's succession to Landlord's interest under this Lease; (c) not be liable for the return of any security deposit under this Lease unless the same shall have actually been deposited with such Successor Landlord; and (d) be entitled to receive notice of any Landlord default under thisLease plus a reasonable opportunity to cure such default prior to Tenant having any right or ability to terminate this Lease as a result of such Landlord default. Landlord is hereby irrevocably appointed and authorized as agent and attorney-in-fact of Tenant to execute and deliver all such subordination instruments ifTenant fails to execute and deliver said instruments within five days after notice from Landlord requesting execution and delivery thereof.
18.2 Attornment. If requested to do so, Tenant shall attorn to and recognize as Tenant's Landlord under this Lease anysuperior lessor, superior mortgagee or other purchaser or person taking title to the Building byreason of the termination of any superior lease or the foreclosure of any superior mortgage or deed of trust, and Tenant shall, within five (5) days of demand therefor execute any instruments or other documents which may be required by Landlord or the Holder of any such Security Document to evidence thc attornment described in thisSection 18.2.
18.3 Morte:ae:c and Grollnd Lessor Protection. Tenant agrees to give each Holder of any Security Document, byregistered orcertified mail, acopy of any notice ofdefault served upon theLandlord byTenant, provided that prior tosuch notice Tenant hasbeen notified in writing ofthe address ofsuch Holder (hereafter the"Notified Party"). Tenant further agrees that ifLandlord shall havefailed to cure such default within the notice andcure period described inSection 16.13 above, then prior to Tenant pursuing any remedy for such default provided hereunder, at law or in equity, the Notified Party shall have anadditional thirty (30) days within which to cure or correct such default (or if such default cannot be cured orcorrected within that time, then such additional time asmay be necessary ifthe Notified Party has commenced within such thirty (30) days and is diligently pursuing the remedies or steps necessary tocure or correct such default).
ARTICLE 19 - QUIET ENJOYMENT
Provided that Tenant performs all of itsobligations hereunder, Tenant shall have and peaceably enjoy the Premises during theTerm of this Lease, subject to all of theterms and conditions contained in thisLease, from and against all persons holding an interest in theProject from and through Landlord.
ARTICLE 20 - PARKING
20.1 Commencing on the Commencement Date and continuing through the Term, Tenant shall rent from Landlord the number of Parking Passes specified inItem 7 of the Basic Lease Provisions. The Parking Passes are with respect to, subject to theprovisions of this Article 20, use of theProject's parking facilities (the "Parking Facilities"). The specific locations within the ParkingFacilities in which theParking Passes may beused shall be specified by,and may, from time to time, be relocated byLandlord in its solediscretion. Landlord shall have theright to modify, change, add toor delete the design, configuration, layout, size, ingress, egress, areas,method of operation, and other characteristics of or relating to the Parking Facilities at anytime, and/or to provide for nonuse, partial useor restricted use of portions thereof. As used herein, "Parking Passes" means parking passes to be used forparking on an unreserved, firstcome firstserved basis in the areas of the Parking Facilities (defined below) designated by Landlord therefor.
20.2 On the first day of each calendar month during the Term, Tenant shall pay Landlord's then prevailing charge forthe Parking Passes then rented byTenant forsuch calendar month; provided that notwithstanding theforegoing, there shall beno charge duringthe Initial Term for the first sixteen (16) Parking Passes rented byTenant. Such parking charges (ifany) shall be inaddition toalltaxes, assessments orother impositions imposed by anygovernmental entity ("Parking Taxes") in connection with Tenant's use of such Parking Passes, which Parking Taxes shall be paid by Tenant, or if required to bepaid by Landlord, shall bereimbursed to Landlord by Tenant
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concurrently with thcpayment of the parking charges described above; provided that notwithstanding the foregoing, Tenant shall have no obligation 10pay anyParking Taxes with respect 10thefirst sixteen (16) Parking Passes rented byTenant.
20.3 Tenant shall cause each of its employees and occupants utilizing Tenant's Parking Passes to abide by all rules and regulations for theuseofthe Parking Facilities prescribed from time totime byLandlord. Ifany employee, contractor or other individual using one of Tenant's Parking Passes violates any of the terms and conditions of (his Article or such parking rules and regulations, (hen Landlord may revoke the license granted hereunder with respect to (he particular violating party's use ofthe Parking Facilities. Landlord may delegate itsresponsibilities hereunder to a parking operator (or master lease the Parking Facilities to a parking operator) in which case Landlord may assign any or all of the rights, including rights or control, attributed hereby tothe Landlord to such parking operator. The Parking Passes provided to Tenant pursuant to this Article 20 arc provided to Tenant solelyfor use by officers, directors, andemployees ofTenant, its Affiliates, sublessees and assignees, and such passes may not otherwise be transferred, assigned, subleased or otherwisealienated by Tenant to any other type of transferee without Landlord's prior approval. Tenant's business visitors may park on theParking Facilities 011a space-available basis, upon payment of the prevailing fee for parking charged to visitors to theProject.
ARTICLE 21 - RULES AND REGULATIONS
The "Rules and Regulations" means the rules and regulations attached hereto as Exhibit "D" (which arehereby incorporated by reference herein and made a part hereof) and any reasonable and non-discriminatory amendments, modifications and/or additions thereto as may hereafter beadopted and published by written notice totenants byLandlord for the safety, care, security, good order and/or cleanlinessofthe Premises and/or theBuilding or Project. Tenant shall abide by, and faithfully observe and comply with the Rules and Regulations. Landlord shall not be liable to Tenant for any violation of such rules and regulations by any other tenant or occupant of the Building orProject.
ARTICLE 22 - ESTOPPEL CERTIFICATES
Tenant agrees at any time and from time to time upon not less than five (5) days' prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing certifying to those facts for which certification hasbeen requested byLandlord or any current or prospective purchaser, or any existing or prospective Holder of any Security Document, including, but without limitation, that (i)thisLease is unmodified and in full force and effect (or ifthere have been modifications, that the same isinfullforce and effect as modified andstating the modifications), (ii) the dates to which the Base Rent, Rent and other charges hereunder have been paid, ifany, and (iii) whether or not to the best knowledge of Tenant, Landlord isin default in the performance of any covenant, agreement or condition contained in thisLease and, if so, specifying each such default ofwhich Tenant may have knowledge. The form of the statement attached hereto asExhibit HE"is hereby approved by Tenant for usepursuant to this Article 22; however, at Landlord's option, Landlord shall have the right to useother forms for such purpose. Tenant's failure to execute and deliver such statement within such time shall, at the option of Landlord, constitute a material default under this Lease and, inanyevent, shall be conclusive upon Tenant that this Lease isin fullforce and effect without modification except as may be represented byLandlord in any such certificate prepared by Landlord and delivered to Tenant for execution. In the event that such certificate is being given to any Holder, such statement may contain any other provisionscustomarily required by such Holder, including, without limitation, anagreement on the part of Tenant to furnish to such Holder, writtennotice of any Landlord default and a reasonable opportunity for such Holder to cure such default prior toTenant being able to terminate this Lease. In addition, Landlord is hereby irrevocably appointed and authorized as agent and attorney-in-fact ofTenant to execute and deliver such statement in the event that Tenant fails toexecute and deliver such statement within five (5) days after notice from Landlord requesting execution and delivery thereof. Any statement delivered pursuant to this Article 22 may be relied upon by any prospective purchaser of thefeeof the Building or the Project or anyexisting or prospective Holder andany of its or their assignees.
ARTICLE 23 - ENTRY BY LANDLORD
Landlord may enter the Premises at all reasonable times to: inspect the same; exhibit the same to prospective purchasers, lenders or tenants; determine whether Tenant is complying with all of itsobligations under this Lease; perform any of itsobligations under this Lease; supply any services that are to be provided by Landlord to Tenant under this Lease; post notices of non-responsibility; and make repairs or improvements in or to the Project or the Premises; provided, however, that all such work shall bedone aspromptly as reasonably possible and soas to cause as little interference to Tenant as reasonably possible. Tenant hereby 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 or anyother loss occasioned bysuch entry. Landlord shall at all times have and retain a key with which to unlock allof the doors in,on orabout the Premises (excluding Tenant's vaults, safes and similar areas designated by Tenant in writing in advance), andLandlord shallhave the right to usc any and all means by which Landlord may deem proper to open such doors to obtain entry to the Premises, and any entry to the Premises obtained byLandlord byanysuch means, or otherwise, shall not under any circumstances bedeemed orconstrued tobe aforcibleor unlawful entry into or a detainer of the Premises or an eviction, actual or constructive, of Tenant from any part of the Premises. Suchentry by Landlord shall notact as a termination ofTenant's duties under thisLease. If Landlord shall berequired toobtain entry bymeans other thanakey provided by Tenant, the cost of suchentry shall bepayable by Tenant to Landlord as Additional Rent.
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ARTICLE 24
LANDLORD'S LEASE UNDERTAKINGS-EXCULPATION FROM PERSONAL LIABILITY TRANSFER OF LANDLORD'S INTEREST
24, I Landlord's Lease Undertakings. Notwithstanding anything to the contrarycontainedin thisLease or inany exhibits, riders or addenda hereto attached (collectively the "Lease Documents"), it is expressly understood and agreed by and betweenthe parties hereto that: (a) the recourse of Tenant or its successors or assigns against Landlord (and the liability of Landlord to Tenant, its successors and assigns) with respect to (i) any actual or alleged breach or breaches by Or on the partof Landlord of any representation,warranty, covenant, undertaking oragreement contained in any of the Lease Documents01' (ii) any matter relating to Tenant's occupancyof the Premises(collectively, "Landlord's Lease Undertakings") shall be limited to solelyanamount equal tothe lesser of (x) only to Landlord's interest in the Building and (y) the equity interest Landlord would have in the Building if the Building were encumbered by independent secured financing equal to eighty percent(80%) of the value of the Building; (b) Tenant shall have no recourse against any other assets of Landlord or its officers, directors or shareholders; (c) except to the extent of Landlord's interest in the Building, no personal liability or personal responsibility of any sort with respect to any of Landlord's Lease Undertakings or any alleged breach thereof is assumed by, or shall at any time be asserted or enforceable against, Landlord,Maguire Properties Holdings II,LLC, MaguireProperties HoldingsI,LLC, Maguire Properties, L.P" Maguire Properties, Inc., or againstany of their respective directors,officers, shareholders, members, employees, agents, constituent partners, beneficiaries, trustees or representatives, and (d) at no time shall Landlord be responsible or liable to Tenant for any lost profits, lost economic opportunities or any form of consequentialdamage as the result ofany actual or alleged breach by Landlord of Landlord's Lease Undertakings.
24.2 Transfer of Landlord's Interest. Upon the transfer of Landlord's interestinthe Buildingtoa third party, this Lease shall not be affected by any such sale, but the transferring Landlord shall befully released from theperformance of Landlord'sobligations hereunder and from any future liability upon any of the agreements, obligations, covenantsorconditions, express or implied, herein contained in favor of Tenant (and Tenant agrees to look solely to the responsibility of the successorininterestof Landlord in andto this Lease except for obligationsand liabilities incurred by Landlord prior to such sale01'conveyance). Tenantagreestoattorn tothepurchaser or assignee of Landlord's interest in the Lease (and that such attornment to be effective andself-operative without the execution of any further instruments by any ofthe parties to thisLease).
ARTICLE 25 -HOLDOVER TENANCY
If Tenant holds possession of the Premises after the expiration01'termination of the Term of this Lease,bylapse of time or otherwise, with or without theexpress or implied consent ofLandlord, Tenant shall become a tenant at sufferance upon all of theterms contained herein, except asto Term and BaseRent and any other provision reasonably determined byLandlordtobeinapplicable, During such holdover period, Tenant shall pay to Landlord a monthlyBase Rent equivalent to two hundred percent(200%)of thegreater of (i) Landlord's then published asking rental rate or (ii) the Base Rentand Additional Rent payable by Tenant to Landlord duringthe last month of the Term of this Lease, The monthly rent payable for such holdover period shall in no event be construed as a penalty or as liquidated damages for such retention ofpossession, Neither any provision hereof nor any acceptance by Landlord of anyrent afteranysuch expiration or earlier termination shall be deemedaconsent toany holdover hereunder orresultinarenewal ofthis Lease or anextension of the Term, or anywaiver of any of Landlord's rights or remedies with respect to such holdover, Notwithstanding any provision to the contrary contained herein, (a) Landlord expressly reserves theright to require Tenant to surrender possession of the Premises uponthe expiration of the Term of this Lease or upon the earlier termination hereof or at any time duringany holdover andthe rightto assertany remedy at law or in equity to evict Tenant and collect damages in connection with any suchholdover, and (b)Tenant shall indemnify, defend and hold Landlord harmless from and against any and all claims, demands, actions,proceedings, losses, damages,liabilities, obligations,penalties, costsandexpenses, including, without limitation, all lost profits andother consequentialdamages,attorneys' fees,consultants' fees and courtcosts incurred orsuffered by orasserted against Landlord byreason of Tenant's failure to surrenderthe Premises on the expiration or earlier termination of this Leasein accordance with the provisionsof this Lease.
ARTICLE 26 - NOTICES
All notices which Landlord or Tenant may be required, or may desire,to serve ontheother may beserved,asan alternative to personalservice,by mailing thesame by registered or certified mail, postage prepaid, or by a reputable overnight courier service,which provides evidence of delivery, addressed to the Landlord at theaddress for Landlord set forth in Item10of the Basic Lease Provisionsand to Tenant at the address for Tenant set forth in Item 10 of the Basic Lease Provisions, or, from and after the Commencement Date, tothe Tenant at the Premises whether or not Tenant has departed from, abandoned or vacated the Premises,or addressed to such other address or addresses as either Landlord or Tenant may from time to time designate to the other in writing, Anynotice shall be deemed tohavebeen servedat thetime the same wasposted.
ARTICLE 27-BROKERS
The parties recognizeas the broker(s) who procured this Lease the firm(s) specified in Item 8 of the BasicLease Provisions and agree that Landlord shall besolely responsible for the payment of any brokerage commissionsto saidbroker(s), and that Tenant shall have
110responsibility therefor unlesswritten provisiontothe contrary has been madea part of thisLease. IfTenant has dealtwith anyother person or real estate broker in respect to leasing, subleasing or rentingspace in the Building,Tenant shall besolely responsiblefor the
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payment of any fcc due said person or firm and Tenant shall protect, indemnify, hold harmless and defend Landlord from any liability in respect thereto.
ARTICLE 28 - SIGNAGE RIGHTS
28.1 Except to the extent expressly provided in this Section 28, Tenant shall not (i) place or install (or permit to be placed or installed by any Tenant Party) any signs, advertisements, logos, identifying materials, pictures or names of any type on theroof, exterior areas or Common Areas orthe Project or in any area ofthe Building, Premises or Project which isvisible from the exterior of the Building or outside of the Premises or (ii) place or install (or permit to be placed or installed by any Tenant Party) in or about any portion of the Premises any window covering (even if behind Building standard window coverings) or any other material visible from outside of the Premises orfrom theexterior of the Building.
28.2 Subject to compliance with applicable Laws and such Building signage criteria as Landlord shall apply from time to timeand subject to receipt ofLandlord's prior written consent, (i)in the case whereTenant occupies an entire floor inthe Building, Tenant may place inany portion of such floor which is not visible from outside of the Premises such identification signageas Tenant shall desire, (ii) in the casewhereTenant occupiesless than an entirefloor in the Building (A) Tenant may require Landlord to install, at Tenant's sole costand expense, in such portion of the multi-tenantcorridoronsuch floor as iscalled for by Landlord's signagc program (as thesame may exist from time to time) identification signage of the type prescribed by Landlord's signage program identifying Tenant and (8) Tenant may place in any portion of theinside of the Premises not visible from theexterior of theJ3uildingor from outside of the Premises such identification signage asTenantshall desire, and (iii) Tenant may requireLandlordto install, at Tenant's sole costandexpense,Building Standard signage in the directory (if any) located in the ground floor lobby of the J3uilding. All signage described in this Section 28 shall be treated as Tenant's personal propertyunder the provisionsof Section 10.5 with respect to Tenant's obligation at the expiration or early termination of this Lease.
28.3 Monument Sign.
28.3.1 Grant. In connection with Tenant's lease of the Premises,subject to all of the terms and conditions of this Section 28.3,Tenantshall havethe non-exclusive right (without payment of any additionalcharge) to cause Landlord to display asign (the "Monument Sign") identifyingTenantby its BusinessName on the Designated BuildingMonument (defined below). "Business Name"means"Yoblaturals" and noothername or trade name. "Designated Building Monument" meansthe existingmulti-tenant monument sign located nearthe front entrance totheBuilding. Except as expresslyprovided in thisSection28.3,Tenantshall havenoright to anysignage on theexterior of any portion of the Building or the Project or on any monumentsignlocated anywherein theProject.
28.3.2 Specifications and Permits. The graphics,materials,color,design,lettering, size,exact location,lighting(if any) and specificationsand all other aesthetic factorsof the MonumentSign (collectively,the"Sign Specifications") shall be(a)subject to the prior written consent ofLandlord (in Landlord'ssoleandabsolute discretion), (b) consistent with thesizeand qualityof comparable signageon comparable institutionallyowned first-class office buildingsin the local market,and (c) consistentwith theoverall character of the Building'sand Project's architecture (as determined by Landlord in itssale and absolutediscretion). Inaddition, all ofTenant'srights under this Section 28.3shall besubject to (i) thereceipt ofand continuingcompliance withall required governmental permitsand approvals(and the submissionof copies thereoftoLandlord) required forthe installation and continuing display of theMonument Sign and (ii) thecontinuing complianceof the Monument Sign with all applicable Laws.
28.3.3 Cost and Maintenance; Removal. The Monument Signshall be installed byacontractorretained byTenant andapproved by Landlord (in its sole and absolute discretion),and shall be operated,and maintained by Landlord, and Tenant shall, within ten (10) daysfollowing Landlord'sdemand therefor,reimburse LandlordasAdditional Rent,forallcosts actually incurred by Landlord in connection with the operation, maintenance, repair,and eventual removal and disposal ofthe Monument Sign. Without limiting theforegoing,Tenant shall be responsible for all costs and expenses incurredin connection with or relating to the installation, operation, maintenance and repairsof theMonument Sign,including,without limitation, thecost ofutility charges and hook-up fees(if applicable),permits, and maintenanceand repairs. Within a reasonable time (not toexceed 30 days) followingtheexpiration orearlier termination of this Lease (orafter termination of Tenant's rights with respect to the Monument Sign pursuant to Section 28.3.4, below),Tenantshall, at Tenant's sole cost andexpense, commence,and thereaftershall diligently pursue,theremoval ofthe Monument Sign,andshallcausethe areas in which the MonumentSign was located to berestored to thecondition existing immediatelyprior to the placementof theMonumentSign (subject to ordinary wear and tear). IfTenant fails to timely remove theMonument Sign or to restore theareas in which the MonumentSign waslocated,asprovided inthe immediatelypreceding sentence,thenLandlord may performsuch work,andallcostsincurredby Landlord in so performing such work, plusinterest atthe Default Rate from the date ofLandlord'spaymentofsuch coststo thedate of Tenant's reimbursement to Landlord,shall be reimbursed by Tenant to Landlord within ten (10) days after Tenant'sreceipt ofan invoice therefor. Theterms of this Section 28.3.3 shallsurvive the expirationor earliertermination of thisLease.
28.3.4 Termination. Landlordshall havethe right to terminate Tenant's rights under thisSection 28.3 to displaytheMonument Sign upon not lessthanthirty(30) days prior written notice. For the avoidance of doubt, itisunderstood that Landlord maysoelect to terminate Tenant's rights under thisSection28.3 for any reason (or for noreason) at all in Landlord's soleandabsolute discretion.
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28.3.5 Reservation of Rights. Landlord shall have the right, initssolebut good faith discretionto: (a) position and/or reposition the Monument Sign on the Designated Building Monument in any mannerasitshall determine,(b) relocate and/or make such modifications to theDesignated BuildingMonumentasitshall desirefrom time totime,and (c) place on the Designated Building Monument and/or on the Building (i) the nameof (and/orother identifyinginformation for) the Buildingand/orProject or (ii) such other names, business names, trade names or affiliate names representing such other tenants or persons, in eithercase, as Landlordshall determine in its sole and absolute discretion.
28.3.6 Rights Personal. The rightsgranted under this Section 28.3arepersonal toOriginal Tenant,and except as provided in this Section 28.3.6, shall not be transferablein any respectwhatsoever (including, without limitation, to anyTransferee). Notwithstanding the foregoing or anything else to the contrary in this Section 28.3, Tenant shall have the right,in connection withanyassignment of this Lease to a Successor to assign all of its rights under this Section 28.3 (withrespect to theMonumentSign) tosuch Successor, provided that any such Successor's Business Name) may only be displayed on theDesignated BuildingMonument if such name is approved by Landlord, which approvalshall not be unreasonably withheld by Landlord so long as such Business Name (a) has a connotation for business reputation, prestigeand stature in the business community whichiscomparabletothat of other tenantshaving comparable sign rights in the Building and Comparable Buildings,and (b) isnot an ObjectionableName (defined below)."Objectionable Name" meansany lIamethat(i)relates to anentity that is of a character or reputation,or is associated with a political orientation orfaction that is materially inconsistent with the quality of the Building, or which would otherwise reasonably offend an institutionalqualityLandlord of a building comparable to the Building,taking into consideration the size and visibility of the Exterior Signs, or (ii) conflicts withanycovenants in other leases ofspace in the Project.
ARTICLE 29-FINANCIAL STATEMENTS
Prior to execution of this Lease, Tenant shall provide Landlord with current financial statements for each of the three (3)calendar(or fiscal) years immediately prior to the execution date of this Lease. Thereafter, at any time during the Term, Tenant shall, uponten (10) days' prior notice fromLandlord, provideLandlord with then current financial statements and financial statementsfor eachofthetwo (2) years prior tothe then current calendaryear for each of Tenant and Tenant's Guarantor. Suchstatementsshallbe preparedin accordance with generally accepted accounting principles, consistently applied, and shallbe audited by an independent certified public accountant.
ARTICLE 30 - MISCELLANEOUS
30.1 Entire Agreement; Amendments; Successors. This Leasecontains all oftheagreementsand understandingsrelating to the leasingof the Premisesand the obligations of Landlord and Tenant inconnectionwithsuch leasing. Landlord has notmade, and Tenant isnot relying upon, any warranties,or representations, promises orstatementsmadebyLandlordorany agentof Landlord, except as expressly set forth herein. This Lease supersedes any and all prior agreements and understandings between Landlord andTenantand alone expresses the agreement of the parties. This Lease shall not be amended,changed ormodified in anywayunless in writing executed by Landlord and Tenant. Landlord shall not have waived or released any of its rights hereunderunless in writingand executedby the Landlord. Except as expressly provided herein, this Leaseand the obligationsof Landlord andTenant contained herein shall bindor inureto the benefitofLandlordand Tenant andtheir respective successors andassigns,provided this clauseshall not permitany Transfer by Tenant contraryto the provisions of Article15.
30.2 Force Majeure. Landlord shall incur no liability to Tenant with respect to,and shall notberesponsible foranyfailure to perform, any ofLandlord's obligations hereunder if such failure is caused by any reason beyond the controlof Landlord including, but not limited to, strike, labor trouble, governmental rule, regulations,ordinance,statuteor interpretation, orbyfire, earthquake,civil commotion,or failure or disruption of utility services. Theamount of time forLandlord to performanyof Landlord'sobligations shall beextended bythe amount of time Landlord isdelayed in performingsuch obligation byreasonoranyforcemajeure occurrence whether similar to or different from the foregoing types of occurrences.
30.3 Survival of Obligations. Anyobligations of Tenant accruing prior to theexpiration of this Leaseshallsurvivethe termination of thisLease,and Tenant shall promptly performallsuch obligationswhether or notthis Lease hasexpired.
30.4 Light and Air. No diminution orshuttingoff of any light, air or view byanystructurenow or hereaftererected shall in any manner affect this Lease or the obligations of Tenant hereunder, or increaseany of theobligations of Landlord hereunder,
30.5 Governing Law. ThisLease shall be governed by, and construed in accordance with,thelaws ofthe state of
California(without regard toits conflictsof lawsrulesor principles).
30.6 Prohibition Against Recording. Neither thisLease norany memorandum, affidavit orother writingwithrespectthereto shall be recorded by Tenant or by anyone actingthrough, under or on behalf of Tenant
30.7 Severability. In the event any provisionofthisLeaseis found to beunenforceable,theremainderof this Lease shall notbeaffected,and anyprovision found to beinvalidshallbe enforceable to theextent permitted bylaw. Theparties agreethat in theevent twodifferent interpretations maybegiven to any provision hereunder,oneof which will renderthe provision unenforceable, and oneof which will render the provision enforceable,the interpretation renderingthe provision enforceable shall bcadopted.
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30.8 Interpretation. Tenant acknowledges that it hasread and reviewed this Lease and that it has had the opportunity to confer with counsel in the negotiation of this Lease. Accordingly, thisLease shall be construed neither fornor against Landlord orTenant, but shall be given a fair and reasonable interpretation in accordance with the meaning of itsterms and the intent of the parties. Each covenant, agreement, obligation or other provision of this Lease to be performed by Tenant are separate and independent covenants of Tenant, and not dependent on any other provision of this Lease. All captions, headings, titles, numerical references and computer highlighting arcforconvenience only and shall have no effect on theinterpretation of this Lease. All terms and words used in thisLease, regardless of thenumber orgender in which they are used, shall be deemed toinclude theappropriate number and gender, asthe contextmay require.
30.9 Time isof the Essence. Time isof the essence of this Lease and theperformance ofall obligations hereunder.
30.10 Joint and Several Liability. If Tenant comprises more than one person or entity, or ifthis Lease is guaranteed by any party, all such persons shall bejointly and severally liable for payment of rents and the performance of Ten ant's obligations hereunder.
30.11 No Offer to Lease. The submission of this Lease to Tenant or itsBroker orother agent, does not constitute an offer to Tenant to lease thePremises. This Lease shall have no force and effect until (i) it is executed and delivered by Tenant to Landlord and (ii) it is fully reviewed andexecuted by Landlord; provided, however, that, upon execution of thisLease by Tenant and delivery to Landlord, such executionand deliverybyTenantshall, in consideration of the time and expense incurred byLandlord in reviewing lhis Leaseand Tenant'scredit, constituteanoffer byTenant to LeasethePremisesupon the termsand conditionsset forth herein (which offer to Lease shall beirrevocablefor twenty(20) businessdays followingthe date of delivery).
30.12 No Counterclaim; Choice of Jurisdiction. It ismutually agreed that in the event Landlord commences anysummary proceeding for non-payment of Rent,Tenant will not interpose anycounterclaim of whatever nature or description in any such proceeding. In addition,Tenant herebysubmits to local jurisdiction in the StateofCaliforniaand agreesthat any action byTenant against Landlord shall be instituted in the Stateof California and that Landlordshall have personal jurisdiction over Tenant for anyaction brought by Landlord againstTenant in theState ofCalifornia.
30.13 Rights Reserved byLandlord. Landlord reservesthe following rights exercisablewithout notice(except as otherwise expressly provided to the contrary in thisLease) and without being,deemed aneviction or disturbance ofTenant's use or possession of the Premises or givingrise to any claim forset-off or abatement of Rent: (i) to change the nameor street address of theBuilding and/or the Project;(ii) toinstall,affixand maintainall signs on the exteriorand/or interiorof the Building and/ortheProject; (iii) to designateand/or approve prior toinstallation, all types ofsigns, windowshades,blinds,drapes,awningsor othersimilar items,and all internal lightingthat may be visiblefrom the exterior of the Premises and,notwithstanding the provisions of Article10, the design, arrangement, style,color and general appearance of the portion of the Premises visible from the exterior, and contents thereof, including, without limitation,furniture, fixtures,signs,art work, wallcoverings, carpet and decorations, andall changes, additions and removalsthereto, shall,at all timeshave the appearance of premises havingthe sametypeof exposureand used forsubstantiallythesamepurposesthat are generally prevailing in first classoffice buildings in thearea (anyviolation of thisprovision byTenant shall be deemedamaterial breach of thisLease);(iv)todisplaythe Premises and/or the Building and/or the Project tomortgagees, prospectivemortgagees, prospectivepurchasers and ground lessors at reasonable hoursupon reasonable advancenotice to Tenant; (v) to change the arrangementofentrances,doors, corridors, elevatorsand/orstairsin the Building and/ortheProject, provided nosuch change shall materiallyadverselyaffect accessto the Premises;(vi) togrant any party theexclusiveright to conduct anybusinessor render any servicein the Building or in the Project,providedsuchexclusiverightshall notoperate to prohibit Tenant from usingthe Premisesfor the purposes permitted under this Lease;(vii) to prohibit the placement of vending or dispensing machines of any kind in orabout the Premises other than for useby Tenant's employees; (viii) to prohibit the placement of video or otherelectronic gamesin the Premises; (ix) tohave accessfor Landlord and other tenants of the Building toany mail chutesand boxeslocated inor on the Premises accordingto the rulesof the United StatesPost Officeand to discontinue any mailchute businessin theBuilding and/orthe Project;(x) to closethe Buildingafter normal businesshours, except thatTenantand itsemployeesand invitees shall beentitled to admission atall times under such rulesand regulations as Landlord prescribes for security purposes;(xi) to install, operate and maintainsecurity systems which monitor, by closed circuit television or otherwise,all persons entering or leaving the Building and/ortheProject; (xii) to install and maintain pipes,ducts, conduits, wires andstructural elementslocated in the Premiseswhich serve other partsor other tenantsof the Building and/or the Project;and (xiii) to retain atalltimesmaster keysor passkeysto the Premises.
30.14 Modification of Lease. Should any current or prospectivemortgageeor ground lessor for theBuilding require a modification or modifications of the Lease,which modification or modificationswill not causean increased cost orexpense to Tenant or inany other way materiallyand adverselychange therightsand obligations of Tenant hereunder, then and in such event,Tenant agreesthat thisLease may beso modifiedand agreesto execute whatever documents arerequired therefor and deliverthe same to Landlord within ten (10) days following the request therefor.
30.15 Authority. If Tenantsigns asacorporation or a partnership,eachof thepersonsexecutingthis Lease on behalf of Tenant doeshereby covenantand warrant that Tenant is a dulyauthorizedand existing entity,that Tenant has andis qualifiedto do business in California, that Tenant has fullright and authority10enter into this Lease, and thateach of both of the persons signing on behalf of Tenant areauthorized to doso. Upon Landlord's request, Tenant shall provide Landlord withevidence reasonably satisfactory to Landlord confirmingthe foregoing covenantsand warranties. The person executing this Lease on behalfof Landlord hereby covenants and warrantsthat Landlord has full right and authority toenter into thisLease and that the personsigning on behalf of Landlord is authorized to doso.
[DBL:dbJJMagui rcProperties- SDre - y oNaturals Lease/I 064.002] -26-
30. 16 Transportation Management. Tenant shall fully comply with all present or future programs intended to manage parking, transportation or traffic in and around the Building, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees 01'entities,
30.17 The Other Improvements. If portions of the Project 01' property adjacent to the Project (collectively, the "Other Improvements") are owned by an entity other than Landlord, Landlord, at its option, in its sole and absolute discretion, may enter into an agreement with the owner or owners of any or all of the Other Improvements to provide (i) for reciprocal rights of access and/or use of the Project and the Other Improvements, (ii) for the common management, operation, maintenance, improvement and/or repair of all or any portion of the Project and the Other Improvements, (iii) for the allocation of a portion of the Operating Expenses to the Other Improvements and the operating expenses and taxes for the Other Improvements to the Project, and (iv) for the use or improvement of the
Other Improvements and/or the Project in connection with the improvement,construction, and/or excavation of the Other Improvements
and/or the Project. Nothing contained herein shall be deemed or construed to limit or otherwise affect Landlord's right to convey all or any portion of the Project or any other of Landlord's rights described in this Lease.
30.18 Renovation of the Project and Other Improvements/Construction of New Improvements. Tenant acknowledges that portions of the Project and/or the Other Improvementsmay be under construction following Tenant's occupancy of the Premises, and thatsuch construction may result in levels of noise, dust, obstruction of access, etc.which arc in excess of that present in a fully constructed project. Itis expressly understood and agreed that Landlord has made no representation or warranty to Tenant and has no obligation to alter, remodel, improve, renovate, repair or decorate the Premises, the Building, or the Project or any portion thereof It is further agreed
lind acknowledged that no representations respecting the condition of the Premises, the Building or the Project have been made by Landlord toTenant except as specifically set forth in this Lease. Tenant acknowledges and agrees that Landlord may alter, remodel, improve and/or renovate (collectively, the "Construction Work") the Building, Premises, and/or the Project (including, without limitation, construction of new improvements in the Common Areas), and in connection with any Construction Work, Landlord may, among other things, erect scaffolding or other necessary structures in the Building, or the Project, restrict access to portions of the Project, including
portions of the Common Areas, or perform work in the Building and/or the Project. Tenant hereby agrees that such Construction Work and Landlord's actions in connection with such Construction Work shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or liability to Tenant for any injury to or interference with Tenant's business arising from any such Construction Work, and Tenant shall not be entitled to any damages from Landlord for loss of use of the Premises, in whole or in part, or for loss of Tenant's personal property or improvements, resulting from the Construction Work 01'Landlord's actions in connection therewith or for any inconvenience occasioned by such Construction Work or Landlord's actions in connection therewith.
30.19 No Partnership 01' Joint Venture. Nothing contained in this Lease shall be deemed or construed to create the relationship of principal and agent, or partnership, orjoint venture, or any other relationship between Landlord and Tenant other than Landlord and tenant.
30.20 Right to Lease. Landlord reserves the absolute right to lease space in the Project and to create such other tenancies in the Project as Landlord, inits sole business judgment, shall determineis in the best interests of the Project. Landlord does not represent and Tenant docs not rely upon any specific type or number of tenants occupying any space in the Building and/or the Project during the Term of this Lease. Tenant shall not, without the prior written consent of Landlord, use the name of the Building and/or the Project, or any pictures or illustrations of the Building and/or the Project, in Tenant's advertising or in any other publicity.
30.21 Confidentiality. Tenant agrees that (i) the terms and provisions of this Lease arc confidential and constitute proprietary information of Landlord and(ii) it shall not disclose, and it shall cause its partners, officers, directors, shareholders, employees, brokers and attorneys to not disclose any term or provision of this Lease to any other person without first obtaining the prior written consent of Landlord.
30.22 OFAC. Tenant represents andwarrantsthat neither Tenant noranyof its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents, is a person or entity with whom U.S.persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control ("OFAC") of the Department of the Treasury (including those named allOFAC's Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24,2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Condone, or Support Terrorism), or other governmental action.
30.23 Counterparts; Facsimile Execution. This Lease may be executed in counterparts each of which shall be deemed as an original, but all of which taken together shall constitute one and the same document. Eachof thepartieshereto agree that the delivery of an executed copy or counterpart of this Lease by facsimile or email shall be legal and binding and shall have the same full force and effect as if an original executed copy or counterpart of this Lease had been delivered.
[DBL:dbllMagllire Properties - SOTC - YuNaturals Lease/I064.002] -27-
(
IN WITNESSWHEREOF,thisLease is hereby executed as of the Effective Date.
LANDLORD:
MAGUIRE PROPERTIES-SAN DIEGO TECH CENTER,LLC,a Delaware limited liability company
By: MAGUIRE MACQUARIE OFFICE, LLC, a Delaware limited liability company,
its Sale Member
By: MAGUIREMOMANAGER, LLC,
a Delaware limited liability company,its Non-Member Manager
By:
MAGUIRE PROPERTIES SERVICES, INC., a Maryland corporation,
itsSole Member
By:
MAGUIRE PROPERTIES, L.P .. a Maryland limited partnership,
itsSole Stockholder
a:MyarylanGd corpo,rati"on, ~~
By: MAGUIRE PROPERTIES. INC..
APrint Name: Shant Koumriqr8o
EVP& Chief Flnanolal Off\o®r
Title: ---------
TENANT:
YONATURALS INCORPORATED, aCalifornia corporation
| | |
By:
Print Name: | | |
Title: | | |
By: | |
Print Name: |
Title: |
[DBL:dbI/MaguireProperties -SDre -YoNaturalsLease1l064.002j -28-
EXIIIBIT A
DEPICTION OF THE PREMISES
_j'
-- [J)
(L-
0..1-;
«2:
[Dlsl.idbl/Maguire Properties -SDTC - YoNaturals Lease!l 064.002] -1-
Exhibit "A"
NOTICE OF LEASE TERM DATES
To: Yol-laturals,Inc.
9605 Scranton Road, Suite 390
San Diego, CA 92121
Attn:Office Manager
Re: Office Lease dated April 30, 2010 (the "Lease") between Maguire Properties-San DiegoTechCenter, LLC, a
Delaware limited liability company ("Landlord"), and Yol-Iaturals, Inc., a California corporation ("Tenant") concerning Suite
390 on Floor three (3) of the office building located at 9605 Scranton Road, San Diego, California.
Ladies and Gentlemen:
In accordance with the Lease, we wish to advise you and/or confirm as follows:
I. ThePremisesarc substantiallycompleted.andthe Term shall commence onor has commenced on MayI.
20I0 foraterm of sixty-three «(3) months endingon July31,2015.
2. Base Rent commenced(0 accrue on MayI,20 I 0, in theamount of$8.986.10($2.30Irsfi'mo) per month and asmoreparticularly setforth in Item4of theBasicLeaseProvisions of theLease.
3. Ifthe Commencement Dale is other than the first day of the month,thefirst billing willcontaina pro rata adjustment. Eaeh hilling thereafter, with the exception of the final billing. shall beforthefull amount01'themonthly installmentas providedtor in theLease,
II. Your rent checks should be made payable to Maguire Properties- San DiegoTechCenter.LLe.
5. The approximate number of rentable square feet within the Premises is 3,907 rentable squarefeet.
6. Tenant's Proportionate Shareis2.46% •."Landlord":
Agreed to and Accepted as of ,20
"Tenant":
YoNaturals,Inc.. a California corporation
I1Y'~ .....
. --~---------------.-- ..------ -_ --
Its:--_......
---------
EXHIBITB
NOTICE OF LEASE TERM DATES
To:
Re: Office Lease dated ,20_ (the"Lease") between Maguire Properties-San Diego Tech Center, LLC, a
Delaware limited liability company ("Landlord"), and an ("Tenant") concerning Suite
of the office building located at [ ,San Diego, California. Ladies and Gentlemen:
In accordance with the Lease, we wish toadvise you and/or confirm as follows:
on floor
| | | | |
1. | The Premises arc substantially completed, and | the Term shall commence | 011 or has commenced | on |
| for a term of ( ) months ending on | _ | | |
2. Base Rent commenced to accrue on , in the amount of $ per month and asmore particularly set forth in Item 4of the Basic Lease Provisions of the Lease.
3. Ifthe Commencement Date is other than the first day of the month, the first billing will contain a pro rata adjustment. Each billing thereafter, with the exception of the final billing, shall be for the full amount of the monthly installment as provided for in the Lease.
4. Your rentchecks should be made payable to'-- '
5. The approximate number of rentable square feet within the Premises is rentable square feet.
6. Tenant's ProportionateShare is %."Landlord":
MAGUIRE PROPERTIES-SAN DIEGO TECH CENTER, LLC,
a Delaware limited liability company
By: MAGUIRE MACQUARlE OFFICE, LLC, a Delaware limited liability company,
itsSole Member
By: MAGUIRE MO MANAGER, LLC,
aDelaware limited liability company, its Non-Member Manager
By: MAGUIRE PROPERTIES SERVICES, INC., a Maryland corporation,
its Sole Member
By: MAGUIRE PROPERTIES, L.P., a Maryland limited partnership,
its Sole Stockholder
By: MAGUIRE PROPERTIES, INC., a Maryland corporation,
its General Partner
By:
Print Name: _
[DBL:dbl/Maguire Properties - SDTC ~ YoNaturals Lcase/1064.002] -1- Exhibit "B"
(DBL:dbllMaguire Properties-SDTC - YoNaturalsLeasc/lOG4.0021 -2- Exhibit "B"
EXHIBIT C WORK LETTER
THIS WORK LETTER (this "Work Letter") is attached as Exhibit "c"to that certain Office Lease dated concurrently herewith (the "Lease") by and between MAGUIRE PROPERTIES-SAN DIEGO TECH CENTER, LLC, a Delaware limited liability company
("Landlord") and YONATURALS INCORPORATED, a California corporation ("Tenant"). This Work Letter sets forth the terms, covenants and conditions relating to the construction and installation of all initial improvements, fixtures and equipment to be permanently affixed to the Premises (the "Tenant Improvements"). All capitalized terms used herein not otherwise defined herein shall have the meanings attributed to such terms in the Lease.
SECTION 1
CONSTRUCTION DRAWINGS
1.1 Filial Space Plan. A copy of the final space plan (and pricing plan) for all Tenant Improvements in the Premises
("Final Space PIan") is attached hereto as Schedule "C-J ".
1.2 Landlord's Architect and Engineers; Construction Drawings. Landlord may engage a qualified interior architect ("Landlord's Architect") and/or engineering consultants (the "Engineers") to prepare working drawings and specifications for the Tenant Improvements (the "Working Drawings") for the Premises based upon the Final Space Plan. The Final Space Plan, together with the Working Drawings (if any) so prepared, are referred to herein as the "Construction Drawings".
1.3 Changes in the Construction Drawings. No Changes (defined below) may be made by Tenant without the prior written consent of Landlord (in accordance with Section 1.5, below); provided, however, that Landlord may withhold its consent in its sole and absolute discretion to any Change which in Landlord's judgment are unreasonable or would directly or indirectly delay Substantial Completion (defined below) of the Tenant Improvements. Tenant acknowledges and agrees that Tenant shall bearthe cost of any Changes that are requested by Tenant. "Changes" means, collectively, any changes, modifications or alterations in the Construction Drawings or in the Tenant Improvements for the Premises contemplated thereby.
1.4 Building Standards. Landlord has established (or may establish in the future) Building Standards for the components to be usedinthe construction of the Tenant Improvements in the Premises ("Building Standards"). The quality of all Tenant Improvements shall be equal to or of greater quality than the quality specifications of the Building Standards; provided, however that Landlord may, at Landlord's option,
require the Tenant Improvements to comply with specific Building Standards. Landlord reserves the right to promulgate, establish, modify, delete from, and make other changes to the Building Standards from time to time.
1.5 Landlord's Review. Any approval or consent of Landlord hereunder with respect to any portion or component of the
Construction Drawings or the Tenant Improvements shall be granted or withheld on the basis of such standards as Landlord shall establish in good faith from time to time. Landlord's review of any matters (including, without limitation, any requested Changes), as set forth in this Work Letter, shall be solely for the purpose of protecting Landlord's interests hereunder, and shall not imply Landlord's review of the same, or obligate Landlord to review the same, for quality, design, Code compliance or other like matters, for the benefit of Ten ant or any other party, and Landlord shall not be responsible for any omissions or errors contained in any such items.
SECTION 2
COST OF THE TENANT IMPROVEMENTS
2.1 Allocation of Costs; Allowance Amount.
2.1.1 Landlord shall bear all Tenant Improvement Costs (defined below); provided, however, that notwithstanding anything to the contrary in this Work Letter, Tenant shall bear all Tenant Improvement Costs and other costs associated with or incurred asa result of any Changes that are requested by Tenant. Notwithstanding any provision of this Work Letter to the contrary, Landlord shall have no obligation hereunder to make any payments or disbursements, or incur any obligation to make any payment or disbursement in connection with any Changes that arc requested by Tenant unless and until Tenant shall have fully complied with Section 2.2.1, below.
2.1.2 Provided that no default then exists and no Event of Default has occurred under this Lease, in addition to the Allowance Amount, Landlord shall provide Tenant with an allowance in an amount equal to $11,721.00 (the "Allowance Amount") payable by Landlord to Tenant on or before the six(6)month anniversary of the Commencement Date. The Allowance Amount may be utilized by Tenant in
any manner it determines in its sole discretion, and for the avoidance of doubt, rather than paying cash to Landlord asprovided in Section 2.2, below,
Tenant may elect, by written notice to Landlord, to apply allor any portion of the Allowance Amount to payment of amounts that Tenant would
otherwise be required to make in accordance with Section 2.2. The right to receive the Allowance Amount is personal to the Original Tenant.
[DBL:dbl/Maguire Properties ~ SDTC- YoNaturals Work Letter/1064.002] EXHIBIT C ~ Page 1
2.2 Payment of Costs Related to Tenant Requested Changes.
2.2.1 Prior to commencement of performance of any Change requested by Tenant, and not later than three (3) business days following Landlord's written request therefor, Tenant shall pay in cash, the full amount of Landlord's reasonable estimate of the net increase in the Tenant Improvement Costs and any other costs, if any, expected by Landlord to result from such Change ("Estimated Change Related Costs"). Notwithstanding anything in this Work Letter or the Lease to the contrary, (i) Landlord shall have tbe right to discontinue its performance of the Tenant Improvements until such time as Tenant complies with the requirements of this Section 2.2.1, (ii) any delays in Substantial Completion relating in any manner to My failure by Tenant to comply with the requirements of this Section 2.2.1 (including, without limitation, as a result of any discontinuance of performance under clause (i), above) shall bc deemed a Tenant Delay (defined below), and (iii) Landlord shall not be liable toTenantfor My additional costs, lost profits, lost economic opportunities or any form of consequential damage which may result from any such discontinuance by Landlord under this Section 2.2.1.
2.2.2 Following final completion of the Tenant Improvements, Landlord shall reconcile the actual cost of all
Changes requested by Tenant (the "Actual Change Related Costs") with the total of all amounts paid by Tenant to Landlord pursuant to Section
2.2.1, above ("Change Related Deposits"). [1'the total Actual Change Related Costs exceeds the amount of the Change Related Deposits, Tenant shall pay to Landlord, in cash, the full amount of the excess within three (3) business days following Landlord's written request therefor. If the
Actual Change Related Costs arc less than the amount of the Change Related Deposits, then Landlord shall promptly return the amount of such excess Change Related Deposits to Tenant (or at Landlord's election, credit such amount against Tenant's obligation to pay Rent next coming due under the Lease).
2.3 Selection of the Contractor and Preparation of the Bid Estimates. Landlord shall submit the Approved Working
Drawings for the Premises to a general contractor (the "Contractor") selected by Landlord, Landlord shall have the right to require that the
Contractors andMy subcontractors hired by Landlord be union labor.
2.4 Tenant Improvement Costs. "Tenant Improvement Costs" means only the following: (i) the fees of the Architect and the Engineers, (ii) Landlord's customaryconstruction management feein an amount equal to ten percent (10%) of the total Tenant Improvement Costs, (iii) fees and costs incurred by, and the cost of documents and materials supplied by, Landlord andLandlord'sconsultants in connection with the preparation and review of the Construction Drawings; (iv) the cost of any Changes in or to the base Building (or Building Systems) when such Changes are required by the Construction Drawings; (v) the cost of any Changes to the Construction Drawings or the Tenant Improvements required by any Code; (vi) all costs of (or relating to) construction of the Tenant Improvements, including, without limitation, testing and inspection costs,
trash removal costs, parking fees, after-hours utilities usage, and contractors' fees Md general conditions; (vii) the cost of cable and other telecommunications lines installedas part of theTenantImprovements (but specifically excluding any costs in connection with the installation of Tenant's telephone service (which shall be separately installed by Tenant's Agents at Tenant's sole cost and expense»; and (viii) plan Check, permit fees, license fees, Title 24fees and use taxes.
SECTION 3
CONSTRUCTION
3.1 Permits. Landlord may cause Landlord's Architect and the Engineers to submit the Approved Working Drawings to the appropriate governmental entities and otherwise apply for all applicable building and other permits and approvals (collectively, "Permits") (if any) necessary or required for the Contractor to commence, perform and fully complete the construction of the Tenant Improvements (and to permit Tenant to legally occupy the Premises). Neither Landlord nor My Landlord Party shall have ally obligation or liability to Tenant if any Permit (including, without limitation, any building permit, certificate of occupancy, or equivalent) is not timely or otherwise issued.
3.2 Landlord's Retention of the Contractor. Landlordshall independently retain the Contractor selected pursuantto Section 2.3 to construct the Tenant Improvements in accordance with the Approved Working Drawings pursuant to a construction contract form as Landlord shall reasonably determine. Landlord reserves the right to designate the subcontractor or subcontractors to perform particular trades (or
components of) the Tenant Improvements such asfire/life safety, HV AC, structural and electrical work. Landlord reserves the absolute right,
without the need for consultation with or the consent of Tenant, toterminatethe Contractor for nonperformance (as determined in good faith by
Landlord) and in such caso Landlord may select another general contractor to complete the Tenant Improvements. Notwithstanding any provision of this Work Letter to the contrary, Tenant hereby waives all claims against Landlord, and Landlord shall have no responsibility or liability to Tenant, on account ofanynonperformanceor any misconduct of any Contractor (or allY subcontractor thereof) for any reason.
3.3 As-Is.
3.3.1 Tenant shall, subject to the express provisions of the Lease (including this Work Letter), accept the Premisesin its then existing condition on the delivery date, "AS-IS", "WITH ALL FAULTS", and except as expressly provided in the Lease (including in this Work Letter), Landlord shall have no duty or obligation to improve, or pay for My improvement for, the Premises or My portion thereof (or COITect any violation of any Laws applicable thereto); provided, however, that Landlord shall cause (i) the electrical and I-NAC Building Systems to be
[DBL:dbVMaguire Properties - SDTC- YoNaturals Work Letter/I 064.002) EXHIBIT C - Page 2
delivered in working condition to the Premises (on a "stubbed" basis) and(ii) the plumbing Building Systemstobedelivered in working condition to the Buildingfloor(s)upon which the Premises are located.
3.3.2 Notwithstanding any provision of the Lease or this Work Letter tothecontrary, (i) thebase building work and BuildingSystems shall,except as expressly provided otherwisein this WorkLetter, be provided on an "AS-IS","WITHALL FAULTS" basis, and Tenant accepts thesame in their existing condition asof the date hereof; provided, however, that Landlordshallcause theBuilding Systems serving the Premises to be in good working condition as of the Commencement Date.
SECTION 4
SUBSTANTIAL COMPLETION
4.1 Substantial Completion. For purposes of this Lease, "Substantial Completion" of thePremises sball occur upon (he substantial completion of construction of the Tenant Improvements pursuant to the Approved Working Drawings,as evidencedby a "signoff on the building permitcard by an inspector of the applicable governmental authority (typically the city in which theBuildingislocated) and as otherwise determined byLandlord's Architect, with the exception of any punch list items and any tenant fixtures, work-stations, built-in furniture, or equipment to be installed byTenant or under the supervision of Contractor.
4.2 Assignmcnt of Warranties. Effectiveupon completion of the Tenant Improvements, Landlordshall assign to Tenant all warrantiesandguaranties byContractor relating to the Tenant Improvements, and Tenant shallwaive(and herebywaives)all claims against Landlord relating to, or arising outof the constructionof, the Tenant Improvements.
4.3 Delays.
4.3.1 Tenant Delays. A "Tenant Delay" means any delay asadirect, indirect, partial, or total result ofany act oromission of Tenant or any of Tenant's Agents, including, without limitation, any of the following: (a) Tenant's failure totimelyapprove any matter requiring Tenant'sapproval hereunder; (b) any breach by Tenant of the provisions of this Work LetteroroftheLease; (c) any Changesrequested by Tenant; (d) any requirement of Tenant for materials, components, finishes or improvements whieh are not available withina commercially reasonable period, or which are different from, or not included in, the Building Standards; (e) changes to theBaseBuilding and/or Building Systems required by the Final Spaee Plan, the Approved Working Drawings(or any Changes);(f) any failureto pay in cashin full any portion of any Estimated Change Related Costs in accordance with Section 2.2.1 within the time periods specified in Section 2.2.1; (g) any unreasonable interferenceby Tenant or any of Tenant's Agents with the performance of the Tenant Improvements; or (h)anyothereventspecified in this Work Letter to be aTenant Delay.
4.3.2 Force Majeure Delays. A "Force Majeure Delay" means any: (i)actual delay attributable to any strike, lockout or other labor or industrial disturbance (whether or not onthepart of the employees of either partyhereto) otherthananysuch disturbance causedby or related to any default or activities of Tenant or any Tenant's Agents (if claimed by Tenant)orof Landlordor any ofLandlord's agents, employees or contractors(if claimed by Landlord), (ii)actual delay caused by any civil disturbance,actofthepublicenemy, war, terrorism,riot, sabotage,blockade, orembargo, (iii) actual delay attributable to lightning, earthquake, fire, storm,hurricane, tornado, flood,washout or explosion, or (iv) actual delay caused by governmental delay in the issuance of the Permits not due to the fault or negligenceofTenantorany Tenant'sAgents (if claimed byTenant)or gross negligence or willful misconduct of Landlord (if claimed by Landlord), or (v) any delaydue to anyother similar cause beyond the reasonable control of the party from whom performance is required, and beyondthe reasonable control of its contractors and representatives (including, without limitation, in the case of Tenant, the Tenant's Agents). Notwithstandinganyprovisionof this Work Lettertothe contrary, in the event that any party claims that it has suffered a Force Majeure Delay, such partyshall, as a condition of the effectiveness of such Force Majeure Delay, within three(3)days of discovery of the source of such delay, notify the other partyhereto in writingof the existence ofsuch Force Majeure Delay, the nature of the steps being taken by such party to minimize such delay andthe probableestimated duration ofsuch Force Majeure Delay.
4.4 Time Deadlines. Tenant shall use its best, good faith, efforts and all duediligence tocooperate with Landlord, Landlord's Architect and the Contractor to complete all phasesof the Construction Drawings and the permitting process and to receive the Permits, and to achieveSubstantial Completion as soon as possible,and,illthat regard, shall meet with Landlordona scheduled basisto be determined by Landlord, to discussLandlord's progress in connection with thesame.
SECTIONS
GENERAL PROVISIONS
5.1 Tenant's Entry into the Premises Prior to Substantial Completion. Providedthat Tenantand Tenant'sAgentsdo not interfere in any respect with Contractor's work (or performance of the Tenant Improvements) inthe Buildingand the Premises,Landlordshall allow Tenant reasonable access to the Premises prior to the Substantial Completion for the purpose ofTenant installing over standard equipment or fixtures (including Tenant's data and telephone equipment). Not less than five (5) business days prior to Tenant'sentry aspermitted by the terms of this Section5,), Tenant shall submit a schedule to Landlord and Contractor, for their approval, which schedule shall detail the timing and purposeof
[DBL:dbllMaguire Properties-SDTC - YoNaturals Work Letter/L064.002J EXHIBIT C -Page 3
Tenant's entry and the particular Tenant's Agents involved, and a copy of any governmental permits andapprovals required inconnection therewith. Tenant shall indemnify, protect, defend and hold Landlord harmless frOI11 and against any Claims, Damages andCosts resulting in any way from anysuch entry.
5.2 Representatives. Tenant has designated Mike Stubbs as its sole representative with respect to the matters setforth in this Work Letter, who, until further notice to Landlord, shall have full authority and responsibility to act on behalf of theTenant asrequired inthisWork Letter. Landlord hasdesignated Amy Lane asits sole representative with respect to the matters set forth in this Work Letter who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of theLandlord as required in thisWork Letter.
5.3 Tenant's Agents and Construction Matters. All consultants, subcontractors, laborers, materialmen, and suppliers retained directly by Tenant (collectively, "Tenants' Agents") shall conduct their activities in and around the Premises, Building and theProject inaharmonious relationship with all other subcontractors, laborers, materialmen and suppliers atthe Premises, Building and Project and, if required by Landlord, all subcontractors, laborers, materialmen, and suppliers retained directly by Tenant shall all be union labor in compliance with the master labor agreements existing between trade unions and theSouthern California Chapter of the Associated General Contractors ofAmerica. Subject totheprovisions of this Work Letter, Tenant shall (a) timely pay in full all charges ofeach Tenant's Agents, (b)on demand from Landlord, eliminate ofrecord and satisfy in full all mechanics liens, stop notices as similar liens orencumbrances on theBuilding asserted or filed by any Tenant's Agent,(c) prior to any entry into the Building by Tenant or any Tenant's Agent, evidence, in form satisfactory toLandlord, compliance infull with the insurance requirements set forth in Schedule "C-2" attached hereto, and (d) indemnify, defend, protect and hold Landlord harmless from anyClaims, Damages and Costs asserted against or incurred by Landlord in connection with any act or omission of any Tenant's Agent or in connection with Tenant's non-payment of any amount arising out of the design or construction of the Tenant Improvements. Tenant shall comply infull (and shallcause each of its Tenant's Agents to comply in full) with such construction rulesand regulations asLandlord shall adopt from timetotime.
5.4 Time of the Essence in This Work Letter. Unless otherwise indicated, all references herein toa "number of days"shall mean and refer to calendar days. In all instances where Tenant isrequired to approve or deliver an item, if no written notice of approval is given or the item is not delivered within the stated time period, at Landlord's sole option, at theend of such period the item shall automatically bedeemed approved or delivered by Tenant and the next succeeding time period shall commence. Except where specific time periods are specified herein, all references to a "reasonable period" contained in this Work Letter shall mean a reasonable amount of time to respond totherequest or submission in question, taking into consideration all of the circumstances reasonably related to the amount of time required, assuming reasonablediligence; provided, however, in no case shall such period ever be less than five(5) business days.
5.5 Cleaning. Upon commencement of the Lease, immediately prior to Tenant's move into the Premises, the Premises shall be customarily cleaned by Landlord inconformance with Landlord's then effective janitorial specifications. The costs ofthecleaning providedby Landlord pursuant tothis Section 5.5 shall notbededucted from theAllowance Amount.
5.6 Tenant's Lease Default. Notwithstanding any provision to the contrary contained inthisLease, ifanEvent ofDefaultas described in Section 16.1 of the Lease, or a default by Tenant under this Work Letter, has occurred at any time on or before the SubstantialCompletion, then (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have theright to withhold payment of all or any portion of the Tenant Improvement Costs and/or Landlord may cause Contractor to cease the construction of the TenantImprovements in question (in which case, Tenant shall beresponsible for any delay in or increase inthecost of the Substantial Completion of the Tenant Improvements caused by such work stoppage), and (ii) all other obligations of Landlord under the terms of this Work Letter shall besuspended until suchtime as such default is cured pursuant to theterms oftheLease.
[OBL:dbllMaguire Properties - SOTC-YoNaturalsWorkLetter/lOG4.002] EXHIBITC - Page4
SCHEDULE "C-2" INSURANCE REQUIREMENTS
1. General Coverages. All of Tenant's Agents shall carry worker's compensation insurance covering all of their respective employees, and shall also carry public liability insurance, including property damage, all with limits, in form and with companies as are required to be carried by Tenant as set forth in Article 11of the Lease.
2. Special Coverages. The Tenant Improvements shall be insured by Tenant pursuant to Article 11 of the Lease immediately upon completion thereof. All of Tenant's Agents shall carry excess liability and Products and Completed Operation Coverage insurance, each in amounts not less than $1,000,000 per incident, $2,000,000 in aggregate, primary automobile liability insurance with limits of not less than $1,000,000 per occurrence, and workers' compensation as required by law, and in form and with companies as are required to be carried by Tenant as set forth in Article J 1of the Lease.
3. General Terms. Certificates for all insurance carried pursuant to this Schedule C-2 shall be delivered to Landlord before any entry into the Project by Tenant or any Tenant's Agent. All such policies of insurance must contain a provision that the company writing said policy will give Landlord thirty (30) days prior written notice ofany cancellation or lapse of the effective date or any reduction in the amounts of such insurance. In the event that the Tenant Improvements are damaged by any cause during the course of the construction thereof, Tenant shall immediately rep au' the same at Tenant's sole cost and expense. Tenant's Agents shall maintain all of the foregoing insurance coverage in force until the Tenant Improvements are fully completed and accepted by
Landlord. All policies carried under this Schedule C-2 shall insure Landlord and Tenant, as their interests may appear, as well as
Contractor and Tenant's Agents. All insurance, except Workers' Compensation, maintained by Tenant's Agents shall preclude subrogation claims by the insurer against anyone insured thereunder. Such insurance shall provide that it is primary insurance as respects the Landlord and that any other insurance maintained by Landlord is excess and noncontributing with the inSUl'311Creequired hereunder. The requirements of the foregoing insurance shall not derogate from the provisions for indemnification ofLandlord by Tenant contained inthis Work Letter.
[DBL:dbI/MaguireProperties-SDTC -YoNaluralsWork Letter/1064.002) EXHIBIT C-Page 2
EXHIBITD
RULESANDREGULATIONS
Tenant shall faithfully observe and comply with the following Rules and Regulations (including,but not limited to the General Rules, the Parking Rules and the Rules of the Site (Contractor's Work)). Landlord shall not be responsible to Tenantfor the nonperformance of any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any othertenants or occupants of the Project.
Landlord reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Landlord's judgment may from time to timebenecessary forthemanagement,safety, care and cleanliness of the Premises and the Project, and for thepreservation of good order therein,as well as forthe convenience of other occupants and tenants therein. Landlord may waive anyone or more of these Rules and Regulations for the benefitof any particular tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any othertenant, nor prevent Landlord from thereafter enforcingany such Rules or Regulations against any or all tenants of the Project. Tenant shall bedeemed to have read these Rules and Regulations and to have agreed to abide by them as a conditionofits occupancy of the Premises. In the case of any conflict between theseRules and Regulations and theLease, the Leaseshall control.
I. GENERAL RULES
I. The sidewalks, driveways, entrances, passages, courts, elevators, vestibules, stairways, corridors or halls shall not be obstructed or used for any purpose other than ingress and egress.
2. No awnings or other projection shall be attached to the outside walls of the Projectwithout Landlord's prior written consent.
3.
The sashes, sash doors, skylights, windows and doors that reflect or admit light and air into the halls, passageways or other publicplaces in the Project shall not becovered or obstructed, norshall any bottles, parcels or other articles be placed 011 the windowsills. If Tenant desires window curtains, the same must beofsuch uniformshape, color, material and makeasmaybe prescribed by Landlord. Neither the interior nor the exterior of any windows shall be coated or otherwise sunscreened without Landlord's prior written consent.
4. No sign, advertisement or noticeshall be exhibited, painted or affixed byTenant onany part of, orso as to beseen from the outside of, itsPremises or the Project without Landlord's prior written consent. In theeventofTenant's violation of the foregoing, Landlord may remove thesame without any liability and may charge the expenseincurred insuch removal to Tenant.All signs whether on doors, directory tablets or elsewhere, shall be inscribed, painted or affixed forTenant by Landlord at the expense of Tenant, and shall be of a size, color and style acceptable to Landlord.
5.
The bulletin board or directory of the Project will be providedexclusively forthedisplayofthe nameand location of Tenant only;and Landlord reserves the righttoexclude any other namestherefrom,andeachand everynamein addition to the name of Tenant placed uponsuch bulletin board or directory, shall besubject to Landlord's prior writtenconsent (andif approved byLandlord, all coststherefor shall be paid by Tenants). Any such listings or representations, once installed,shall besubject to relocation or removal upon Landlord's written request for any reason (exceptthat any such relocationsor removals atLandlord's request, unless such request is based upon Tenant's breach of the Lease,of which theseRules and Regulations areapart, shall be paid for by Landlord), and Tenantshall pay for the removal of anysuch listings or representationsupon its departure from itsPremises.
6. All doors opening onto public corridors shall be kept closed, except when being usedfor ingress andegress.
7,
Tenant shall not mark,paint, drill or bore into, cut or string wiresin, lay linoleum or otherfloor coverings, in,or in anyway deface any part ofits Premises or the Project, except with Landlord'sprior writtenconsent and asLandlord may direct.
8.
All keys shall be obtained from Landlord. No additional locks or bolts of any kind shall be placed upon any of the doorsor windows by Tenant, nor shall any changes be made in existing locks orthe mechanisms thereof. Tenant must, upon the termination of its tenancy, give to Landlord all keys pertaining to the Premises and the Project, andinthe event ofthe loss of anykeys so furnished, Tenant shall pay Landlord the cost of replacing same or changingthelock or locks opened by such lostkey(s)if Landlord shall deem it necessary tomakesuchchange.
9. No window or other air conditioningor heatingunitsor other similar apparatusshall beinstalled or used byTenant without
Landlord's prior written consent.
10.
Thewater and wash closets and other plumbing fixturesshall not be used for any purposeother than those for which theywereconstructed and no sweepings,rubbish, rags or other substances shall be throwntherein. All damages resultingfrom any misuse of thefixtures byTenant or its servants, employees, agents, visitorsor licensees shall beborne byTenant.
[DBL:dbllMaguire Properties-SDTC - YoNaturalsLease!l 064.002] -1- Exhibit"D"
11.
All removals from, or carrying in or out of, the Project of any safes, freight, furniture, heavy or bulky matter ofany description, must take place only prior to 7:00A.M. and/or after 5:30 P.M. of daysother than Saturdays, Sundays and holidays (no movingbeing permitted on Saturdays, Sundays or holidays without special permission) and mustbemade upon previous written notice to Landlord and under its supervision, and the persons employed by Tenant for such work must be acceptable toLandlord. Tenant shall be responsible for any damage to the Premises from any such activity. Landlord reserves the right to inspect allsafes or other heavy or bulky equipment or articles to be brought into the Project and ��toexclude fromtheProject all suchheavy or bulkyequipment or articles, the weight of which may exceed the floor load for which theProject is designed, or such equipment or articles as may violate any of theprovisions of theLease of which these Rules and Regulations are apart. Tenant shall not useany machinery or other bulky articles in the Premises, even though itsinstallation may have been permitted, which may causeanynoise, or jar, or tremor to thefloors or walks, orwhich byits weight might cause injury to thefloor of the Project.
12.
Neither Tenant nor its servants, employees, agents, visitors or licensees shall at any time bring orkeep upon thePremises anyflammable, combustible or explosive fluid, chemical or substance, except for a reasonable quantity of such material reasonablynecessary for the conduct of Ten ant's business.
13. Tenant's Premises shall not be used for manufacturing or for the storage of merchandise except as such storage may beincidentaltothe permitted useof such Premises. Tenant shall not, without Landlord's prior written consent, occupy or permit any portion of its Premises to be occupied or used for the manufacture or sale of liquor ortobacco in any form, or as abarber or manicureshop, or as an employment bureau. The Premises shall not be used for lodging orsleeping or foranyimmoral orillegal purposes.
14. Tenant shall not make, or permit to bemade, any unseemly or disturbing noises, ordisturb or interfere with occupants of the Project or neighboring buildings or premises or those having business with it by the use of any musical instrument, radio, phonographs or unusual noise, or in any other way. Neither Tenant nor its servants, employees, agents, visitors or licensees shall throw anything out of doors, windows or skylights or down the passageways.
15. No bicycles, vehicles or animals of any kind shall bebrought into orkept in orabout Tenant's Premises and nocooking shall be done or permitted byTenant initsPremises, except that the preparation ofcoffee, tea, hotchocolate andsimilar items forTenant, itsemployees and visitors shallbepermitted provided such activities do not otherwise violate theLease of which these Rules and Regulations arc part. Tenant shall not cause or permit any unusual or objectionable odors to be produced inor emanate from its Premises.
16. There shall not beusedinany space,orin the publichallsof the building, anyhand trucks except those equipped withrubbertires and sideguards.
17. [Intentionally Omitted].
18. No personshallbe employedby Tenanttodojanitorial, maintenance, construction orsimilarworkinany part of saidProject without Landlord'spriorwrittenconsent. Anypersonemployed byTenant todo janitorial,maintenanceor similar work withLandlord's consentshall,whileintheProject,be subject toandunder the controlanddirectionof Landlordorits agent or representative(but not as anagentor servant of Landlord)and Tenantshall be responsibleforall acts of such persons.
19. Landlord shall havetheright to prohibit any advertisingby Tenantwhich, in Landlord's opinion,tends to impair the reputationofthe Project or itsdesirability as anoffice building, and upon written notice from Landlord, Tenant shall refrain fromor discontinuesuchadvertising.
20. Canvassing,solicitingand peddlingin the Projectareprohibitedand Tenant shallcooperateto preventsame.
21. Landlord reservestherighttocontrol accesstothe Project byall personsafter reasonablehours of generallyrecognizedbusiness daysand atall hours onSundays andlegal holidays. Tenantshallbe responsiblefor all personsfor whom itrequests after hoursaccess andshallbe liabletoLandlordforallactsof such persons. Landlord assumes noresponsibility and shall not beliablefor any damage resultingfrom theadmissionofanyunauthorized person totheProject.
22. Landlord reservestheright toexcludeorexpelfrom the Project anyperson who, inthejudgment ofLandlord,isintoxicated or underthe influence ofliquoror drugs, orwho shall inanymanner do anyactinviolationofthe Rules and Regulations of theProject.
23. Itisunderstoodandagreed betweenLandlord andTenant that noassent or consent to anywaiverof any part hereof by Landlord in spirit or lettershall bedeemed or takenasmade except if sameisdoneinwriting andattachedtoorendorsed hereonbyLandlord. Anysuch waiver shall notconstitute awaiver of anyotherrule or regulationoranysubsequentapplication thereofto Tenant.
[DBL:dbllMaguirc Properties - SDTC-YnNaturals Lease/1064.002] -2- Exhibit"D"
(
24.
Landlord reserves the right at any time to change or rescind anyone of more ofthese Rules and Regulations, orto make such other and further reasonable Rules and Regulations as in Landlord's judgment may from time to time be necessary for the management, safety, care and cleanliness of the Premises and Project, and forthepreservation ofgood order therein, aswell as for the convenience of other occupants and tenants therein. Landlord shall not beresponsible toTenant herein or to any other
person for the nonobservance of the Rules and Regulations by any other tenant orother person. Tenant shall be deemed tohave read these Rules and Regulations and to have agreed to abide by them as a condition ofits occupancy of the Premises.
25.
Tenant shall notsuffer or permit smoking or carrying of lighted cigars or cigarettes inareas reasonably designated by Landlord or byapplicable governmental agencies as nonsmoking areas.
26. Tenant shall comply with allsafety, fire protection and evacuation regulations established by Landlord or any applicablegovernmental agency.
27. Tenant assumes all risks from theft or vandalism and agrees to keep thePremises locked as may be required.
n. PARKING RULES.
The following parking rules and regulations ("Parking Rules") shall beineffect at the Project.
1. Parking areas shall be used only for parking vehicles ))0larger than fullsize, passenger automobiles herein called "Permitted Size
Vehicles." Vehicles other than Permitted Size Vehicles are herein referred toas"Oversized Vehicles."
2.
Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant's employees, suppliers,shippers, customers, or invitees to be loaded, unloaded, or parked ill areas other than those designated by Landlord for such activities.
3. Parking stickers, access cards or identification devices shall be the property of Landlord and be returned to Landlord bythe holder thereof upon termination of the holder's parking privileges. Tenant shall pay to Landlord refundable deposits 011 such devices as reasonably established by Landlord from lime to time. Tenant will pay such replacement charge as isreasonablyestablished by Landlord for the loss ofsuch devices.
4. Landlord reserves the right to refuse the sale of monthly identificationdevices and/or parking access cards toany person orentitythat willfully refuses to comply with the applicable rules, regulations, laws and/or agreements.
5. Landlord reserves the right to relocate all or apart of the parking spaces on the Property from one location on the Property to another and/or to reasonably adjacent offsitelocation(s), and to reasonably allocate them between compact and standard sizespaces, so long asthe same complies with applicable laws, ordinances and regulations.
6. Users of the parking area will obey all posted signs and park only in the areas designated forvehicle parking.
7.
Unless otherwise instructed, every person using the parking area isrequired topark and lockhis own vehicle. Landlord will notberesponsible or liable to Tenant, its visitors or employees forany damage tovehicles, injuryto persons or loss ofproperty, all ofwhich risks areassumed by theparty using the parking area.
8. Parking validation, if established, will be permissibleonly by such method or methods as Landlord and/or its licensee may establish atrates generally applicable.
9. The Parking Facilities shall be used only for parking vehicles. The maintenance, washing, waxing orcleaning of vehicles inthe parking structure or common areas of the Project isprohibited. Tenant shall have noright to install any fixtures, equipment or personal property (other than vehicles) in the Parking Facilities, nor shall Tenant make any alteration totheParking Facilities.
10. Tenant shall be responsible for seeing that all of its employees, agents and invitees comply with all applicable parking rules,regulations, lawsand agreements.
11. Such parking use as is herein provided is intended only as a license and no bailment isintended or shall be created hereby.
12. Inno event shall Tenant or its employees park in reserved spaces leased to other tenants or in stalls within designated visitor parking zones. Tenant shall comply with Landlord's Parking Rules in its use (and in the use of its visitors, patrons andemployees) oftheParking Facilities.
[DBL:dbl/Maguire Properties -SDTC-YoNaturalsLeasell 064.002] -3- Exhibit "D"
13. Tenant shall, upon request of Landlord from lime to time, furnish Landlord with a list ofits employees' names and of Tenant's and its employees' vehicle license numbers. Tenant agrees to notify its employees and visitors with these Parking Rules as the same are modified from time to time, and assumes responsibility for compliance by its employees and visitors with these Parking Rules as the same are modified from time to time, and shall be liable to Landlord for all unpaid parking charges incurred by its employees. Tenant authorizes Landlord to tow away from the Building and/or Parking Facilities any vehicle belonging to Tenant or its employees or visitors parked in violation of these Parking Rules, and/or to attach violation stickers or notices to those vehicles.
14. Persons using the Parking Facilities shall observe all directional signs and arrows and anyposted speed limits. Unless otherwise posted, in no event shall the speed limit of five (5) miles per hour be exceeded. All vehicles shall beparked entirely within painted stalls, and no vehicles shall be parked in areas which are posted or marked as "no parking" or on ramps, driveways and aisles. Only one (1) vehicle may be parked in a parking space. In no event shall Tenant interfere with the uscand enjoyment of the Parking Facilities by other tenants of the Building or their employees or invitees.
15. Should any parking spaces be allotted by Landlord or Tenant, either on a reserved or unreserved basis, Tenant shall not assign orsublet any of those spaces, either voluntarily or by operation of law, without the prior written consent of Landlord, except in connection with an authorized assignment of this Lease or subletting of the Premises.
16. Landlord reserves the right to modify these rules and regulations and to adopt such other reasonable and non-discriminatory rules and regulations as it may from time to time deem necessary for the proper operation andsafety ofthe parking area. Tenant agrees to abide by these and such other rules and regulations.
III. RULES OF THE SITE (CONTRACTOR'S WORK).
The following rules and regulations shall apply to any work performed at the Project by or under the direction ofTenant or any other Tenant Party. Before commencement of any such work, Tenant shall deliver to Landlord a copy of these Rules of the Site (Contractor's Work) executed by the contractor(s) performing such work.
I. The following Rules of the Site for Contractor's work ("Rules of the Site") shall governthe operation of Contractor and Contractor's subcontractors. The terms "Owner" and "Owner's Representative" are the same forpurposes of this document (and where used, refer to the Landlord).
2. Within a reasonable time prior to the start of anyone-site work, delivery of materials, equipment, or personnel, Contractor will submit to Owner the following:
A- A complete set of drawings approved by Owner and subsequently by the City of Irvine. B- A fully executed Indemnity Agreement (To Be Provided by Owner Upon Request).
C- Certificate of Insurance ill a form approved by Owner executed by insurance companies acceptable to Owner. D- A fully executed Notification-Rules for Contractors (To Be Provided by Owner Upon Request).
E- A job schedule of the work to be accomplished, detailed by trade.
F- A complete list of all proposed Subcontractors and suppliers. Owner must approve all contractors and subcontractors before commencement of their work.
G- The name and phone number (including emergency phone numbers) of personnel who areauthorized to represent the
Contractor.
3. No revisions or changes of any kind may be made to the construction plans without prior written consent of the Owner. Any proposed revisions or changes must be submitted to Owner in the form of a change order, for Owner'sreview and approval prior to commencement of such changes. Revisions or changes altering the floor plan, base building systems, or building operations must be submitted, in writing, to the Owner for review and approval prior to commencement of work.
4. All of Contractor's work must be scheduled so that it in no way conflicts with, interferes with, or impedes the quiet and peaceful enjoyment of other tenants, or the progress of Owner's work or operations. Any work that is in conflict will be rescheduled by the Contractor to such time as approved by Owner. Additionally, Owner shall have no liability for any costs or expenses incurred by Contractor (or Tenant) in connection with such rescheduling.
[DBL:dbIlMaguire Properties -SDre - Yoblaturals Lease/l 064.002] -4- Exhibit "D"
5. Contractor and subcontractors shall employ persons and means for the orderly progress of the work without interruption on account of strikes, work stoppages or similar causes of delay. Additionally, Owner shall have no liability for any costs or expenses incurred by Contractor (orTenant) in connection withsuch delays.
6. Materials and tool storage will be limited to the areas for whichaccess has beengranted.
7. Clean-upand rubbish removalshall beprovided by theContractorat Contractor's expense. Contractor must removedailyallrubbish, surplusandwaste material resultingfromthe performanceofhiswork. Atthe request ofOwner, Contractor shall relocateany materialscausing anobstructionasdirected byOwner. Contractor willnot be allowed to placeadumpster on site ona continuousbasisduring construction.
Important note: The placement and location of rubbish dumpstersand bins must be approved in advance by Owner.
8.
In general, Owner will interface withContractor to the extentnecessary for workto be completed within thcguidelinesof project specifications and for the enforcement of building rules and regulations.
9. Contractorwill make arrangementsforunloading,trash removal and hoisting afternormalworking hoursdue to the localcitynoise ordinance. (No such activity will beallowed between thehours of10:00 p.m.to7:00a.m.) Atno time will theContractor be given exclusivereserved useofthefreight elevator unless applied for by Contractor and approved byOwner. Contractor maybe afforded access to loading dockspaceand hoisting facilitiesfor limited use atsuchtime duringnormal workinghoursas is prearranged with Owner.
10.
Contractor will beafforded unloading areas as prearrangedwith Owner. All materialsunloaded atthese areas will bemoved toan areaofuseimmediately andshall notbestored or used in a waywhich adverselyimpactsuse of the Building.
11. Contractor (and Tenant) will be responsible for the security of its own materials, equipment and work, and that of his subcontractors. Contractor will also be responsible for damagecaused by Contractor or its subcontractors to theProject, Building and/or tenant areas, including, but not limited to the loading dockand indoor andoutdoor public areas, freightelevators,etc. Anysuch damageswill be promptly repaired to the Owner's satisfaction at sale costofContractor.
12.
Contractor will comply withall applicablecodes, laws and regulations pertainingto the work ofContractor, including allsafetyand health regulations. The Contractor shall supply theOwnerwith a MasterList of all HazardousMaterials and their MaterialSafety Data Sheets (MSDS)upon deliveryto the jobsite. Adiscussionwillthenensue pertainingtothe safestorage,handlingand use ofthesematerials, as wellasthe Contractor's emergencypreparednessplan forhandlingthe containmentand clean-up of potential HazardousMaterialspills.
13. Contractor will notengage in any labor practicethat may delayor otherwise impact the work ofOwneror any othercontractor.
14.
No base building systems will beturnedoff or disengaged by Contractoror anysubcontractorwithoutpriorwritten approval andsupervisionby arepresentativeof Owner. Saidsystems includebut arenot limitedto sprinklers, electrical circuits, air-handlingunits, smokeheadsand water supply. Buildingelectrical power shut-downsare allowed onSaturdays between 10:00p.m.and
5:00a.m. only. A request forapprovalshall bemadeto the BuildingManagerat leastten(10) days inadvance.
15. Doorsto all workareas,including stairwellsand mechanical andelectrical closets, will remain closedatall time. Propping doorsopen is expresslyprohibited.
16.
All Contractor and subcontractor personnel,materials, toolsandequipment are toenter andexit theBuildingthrough the serviceelevator only. Owner may atany timeinitiateacheck in/checkout system, ora badge system, forall people andmaterial intheBuilding andtheContractor willagree to cooperatewithany suchsystem.
17. Before orderingmaterialor doing work whichisdependent uponpropersize or installation, the Contractorshall fieldverify all dimensions foraccessibilitywith building conditions,andshall be responsible for same.
18. Contractorshall notpermitted anyidentifying signage or advertising within the Projector Building.
19. During construction,Contractorshall maintainsupervisory personnel on the site atalltimes. Suchpersonnelshall be fully authorized tocoordinate,respondforand authorizeContractor'swork as necessary to enable all worktoproceedinatimely andwell-ordered fashion. ShouldContractorperformworkwhichwould cause or require Owner to provide personnelto be present or otherwiseperformany work,Contractor shall reimburse Ownerfor the expense of such personnel.
20. Contractorshall beresponsible fortheprotectionofitswork and the areaadjacent to hiswork.
[DBL:dbllMaguireProperties - SDTC-YoNaturalsLease/1064.002] -5- Exhibit"D"
{
21. Contractor will ensure that all stairwells, mechanical rooms, electrical and telephone closets, etc. accessed by Contractor orsubcontractors in conjunction with Contractor's work, will be cleaned and free of debris nightly.
22. Public areas adjacent to premises where Contractor's work is being performed shall remain free of debris and materials at all times.
23. Contractor shall be responsible for all hisactions on site aswell as those of its subcontractors and shall indemnify, defend and hold harmless the Owner and the other Owner Parties from ad against any and all claims, losses, or damages, threatened or incurred, arising from the actions or omissions of Contractor or its subcontractors.
24. If keys are required by contractors, they must be checked out from the Property Management Office. No key will bedistributed if proper identification is not provided.
25. No cutting or patching of Owner's premises or installations, or those of any Building occupant,shall be permitted without prior written consent of Owner. Request for permission to do cutting shall include explicit details and description of work and shall not under any circumstances diminish the structural integrity ofthe Building components orsystems. The work is to be done only with the explicit written permission oftheBuilding Manager and on an"Off-Hours" basis. Such work is to be done only under the direct supervision of a competent member of the Contractor staff. Ally such area is to bepromptly repaired and returned to a fully functioning, complete, and clean condition.
26.
Allwork is to be done to aminimumstandard of quality asrequired by the Base Building Drawings and Specifications (to be made available by Owner upon request). Itis the responsibility of the Contractor to be fullyknowledgeable of theBaseBuilding Drawings and Specifications.
27.
All Life Safety Systems for the Building are to be maintained, andall of the Tenant's work isto be properly interfaced with and connected tothe Base Building systems asrequired byLaws, orby Building operation. Allwork isto be done in such away as to protect all Base Building operations and warranties. Any required disconnection of lifesafety devices should be"foreseen" and the Property Management Office must be notified at least 24 hours in advance. Costs forfalse fire alarms due tocontractors'
or subcontractors' negligence will be billed to and paid by the Contractor. All life-safety systems testing must beperformed on an "off-hours" basis and coordinated with the Building Manager.
28. When work isperformed by Contractor or subcontractor, charges will apply for additional services performed by Owner which
mayinclude, butare not necessarily limited to the following:
A overtime elevator usage which requires the assistance ofan elevator technician
B utility usage for construction activities beyond standard power and water readily available intheBuilding
C
extraand continuous clean-up of elevators and public spaces as required due to construction activity; Contractor to provide the usual protection ofexisting improvements, andexercise care andgoodsense
D extended useof the loading dock
29. In addition to cleaning requirements described above, Contractor shall, in preparation for substantial completion oroccupancy ofthe project by Tenant, perform final cleaning operation of Contractor's Work.
30.
When Contractor takes over an area from theOwner, before commencing workContractor shall ascertain thatthe areaisinasafe and sanitary condition, and maintain thearea asnecessary (at itssole cost and expense) inasafe and sanitarycondition and toastandard meeting all applicable laws and regulations.
31. Owner requires job progress meetings, The Contractor will attend with arepresentative authorized to speak and act on the
Contractor's behalf. Additionally, the Contractor shall notify the Owner ofscheduled job progress meetings.
32. All work or on-site activity during non-normalworking hours will becoordinated in advance with Owner.
33. At no timewill Contractor perform activities on theProject without theproper insurance in force.
34. No radios orother audio devices are allowed.
35.
Failure toperformwork in a manner consistent with theabove stated Rules of theSitemay result in immediate work stoppage byOwner. Owner shall have no liability for any costs or expenses incurred by Contractor or any subcontractors (or Tenant) in connection with or as a result ofsuch work stoppage.
[DBL:dbllMaguire Properties -SDTe - YoNaturalsLease/1064.002] -6- Exhibit "D"
(
36. The Rulesof the Site may be amendedor revised at any timeto fit the situation atthetime.Theamended or revised Rulesof the
Site shall become effective upon delivery to Contractor or publication by posting at the projectsite,whichever is earlier.
37.
General contractor and subcontractors' vehicles parking must bein areas designatedbytheBuilding Managerat theContractor's expense.
Acknowledgedand Agreed
By: Date:
[DI3L:dbllMaguire Properties-SDTC-YoNaturalsLease/1064.002j -7- Exhibit "D"
EXHIBIT "E"
FORM OF TENANT ESTOPPEL CERTIFICATE
The undersigned as Tenant under that certain Office Lease dated ,20_ (the "Lease") between Maguire Properties-San Diego Tech Center, LLC, aDelaware limited liability company, as Landlord, and the undersigned, as tenant, for Premises onthe floor of the Office Building located at [9605 or9645] Scranton Road, San Diego, California certifies as follows:
1. True, correct and complete copies ofthe Lease and allamendments, modifications and supplementsthereto are attached hereto and the Lease, as so amended, modified and supplemented, is in full force and effect, and represents the entire agreement between Tenant and Landlord withrespectto the Premises and the Property. There are no amendments, modifications or supplements to the Lease, whether oral or written, except as follows (include the date of such amendment, modification or
supplement):
--------------------------------------
2. The undersigned has commenced occupancy of the Premises described in the Lease, currently occupies the
Premises, and the Commencement Date of the Lease occurred on ,20_.
3. Tenant has not transferred, assigned, or sublet any portion of the Premises nor entered into any license Of
concession agreements with respect thereto except as follows: . _
4. Base Rent became payable on .
5. In accordance with the Lease, Rentcommenced to accrue on
.J 20_.
6. The Term of the Lease expires on _
7. The Lease provides for an option to extend the term ofthe Lease for
years. The rental rate for such
extension term is asfollows: �� . Except as expressly provided inthe Lease, and other documents attached hereto, Tenant docs not have any right or option to renew or extend the term of the Lease, to lease other space at the Property, nor any preferential right to purchase all or any part of the Premises or the Property.
8. All conditions of the Lease to be performed by Landlord necessary tothe enforceability of the Lease have been satisfied and Landlord is not in default thereunder. All space and improvements leased by Tenant have been completed and furnished in accordance with the provisions of the Lease, and Tenant has accepted and taken possession ofthe Premises.
9. There are no offsets or credits against rentals payable under the Lease and no free periods or rental concessions have been granted to Tenant, except as follows: _
10. All monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional
Rent have been paid when due through . The current monthly installment of Base Rent is$ _
11.The undersigned acknowledges that this Estoppel Certificate may be delivered to Landlord's prospective
mortgagee, or a prospective purchaser, 811d acknowledges that it recognizes that if same is done, said mortgagee, prospective mortgagee, or prospective purchaser will be relying upon the statements contained herein in making the 10811or acquiring the property of which the Premises are a part, and in accepting an assignment of the Lease as collateral security, and that receipt by it of this certificate is a condition of making of the loan or acquisition of such property.
12. Each individual executing thisEstoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so.
Executed at _ on the day of
,20_.