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HomeMy WebLinkAboutContracts & Agreements_51b-1995_CCv0001.pdf 1568 NORTH ORANGE STREET LEASE CITY OF REDLANDS POLICE DEPARTMENT INDEX 1. PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. DEMISED PREMISES 1 3. INITIAL LEASE TERM . . . . . . . . 1 4. RENT 1 5. SECURITY DEPOSIT . . . . . . . . . . . . . . . . . . . 2 6. USE OF PREMISES . . . . . . . . . 2 7. TAXES AND ASSESSMENTS - . . . . . . . . . . . . . . . . . . . . 3 8. MAINTENANCE . . . . . . . . . . . . . 4 9. AUTHORITY TO EXECUTE 5 10. SIGNS 5 11. UTILITIES SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 12. INSURANCE . . . . 6 13. COMMON AREA . . . . . . . . . . . . . . 7 14. COMMON AREA MAINTENANCE EXPENSES . . . . . . . . . . 8 15. INDEMNITY . . . . . . . . . . . . . . . . . . 9 16. EXEMPTION OF LANDLORD FROM LIABILITY . . . . . . . . . 9 17, QUIET POSSESSION . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 18. ESTOPPEL CERTIFICATE . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 19. MECHANICS' LIENS . — « . . . . . . . . . 10 20. ASSIGNMENT AND SUBLETTING . . . . . . . . lo 21. LANDLORD'S ENTRY ON PREMISES . . . . . . lo 22. SALE OF PREMISES BY LANDLORD . . . . . . . 23. SURRENDER OF PREMISES . . . . . . . . . . 24. HOLDING OVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 25. MERGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 26. ATTORNEYS' FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 27. NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 28. SUBORDINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 29. WAIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 30. RECORDATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 31. ALTERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 32. OPTION TO EXTEND TERM OF LEASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 33, EMINENT DOMAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 34, DEFAULT BY TENANT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 35, DEFAULTS BY LANDLORD . . . . . . . . . . . . . . . . . . 16 36. EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 37. USE OF LANGUAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 38. CAPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 39. ENTIRE AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 40. EXECUTION OF LEASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 41, WAIVER OF REDEMPTION . . . . . . . . . . . . . . . . . . . . . . 17 42, SEVERABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 43. NET LEASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 44, CUMULATIVE REMEDIES . . . . . . . . . . . . . . . . . - 17 45, COVENANTS AND CONDITIONS . . . . . . . . . . . . . . . . . . . . . - 17 46, BINDING EFFECT- CHOICE OF LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 47, FORCE MAJEURE . . . . . . 17 48. BROKERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 49. INTEREST ON UNPAID RENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 50. JOINT AND SEVERAL OBLIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 51. SUBMISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 iii el,�' j ' LEASE 1. PARTIES \ THIS LEASE ismade and entered into this day of luRe,-1995, by and between UDO PARTNERS V, K-P. 7Lamdlord") and CITY 0FREDLA0DS POLICE DEPARTMENT CTenont"). Landlord,for and in consideration of the covenants and agreements hereinafter set forth to be kept and performed by Tenant, hereby demises and |eesmo to Tenant. and Tenant does hereby take, accept, and hire from Landlord, the Ppaninea hereinafter described for the ternm, at the rental and subject to and upon the tenTs, conditions, and agreements herein set forth. 2. DEMISED PREMISES Landlord homnbv leases to Tenant and Tenant hereby leases from Landlord that certain interior space known as 1568 North Orange Street containing approximately Nine Hundred Ten (910)square feet of floor area ("Premises"). Location of the Premises is delineated in Exhibit A (Site Plan)which has been improved in aoourdonow with Exhibit B attached hereto and incorporated by reference herein. Said Premises is located in o Shopping Center ("Shopping Center] oornnnon|y referred hnms North Redlands Shopping Center, located in the City of Red|endy. County of San Bernardino and Stat* of California. 3. INITIAL LEASE TERM The initial honn of this Lease C'|niUa| Lease Term") shall oornnnonoe July 1. 1895 (the "Commencement Dote") and shall expire Five (5) years thereafter on the last day ofthe month preceding the month in which the Commencement Date occurred (June 30. 1999). /�� �} � 4. RENT 4.1 Minimum Yearly Rent Commencing July 1. 1995. Tenant shall pay to Landlord as Minimum Yearly Rent,without deduction or set-off, prior to notice or demand,the sum of One Dollar($1.00) per year, in advance on the first day of each July of the term of the Lease. K0ininourn Yearly rent for any partial year shall not be prorated. All rent shall be paid to Landlord at the address to which notices of Landlord are given. Any rent not paid by the tenth day of the month for which it is due shall be considered late and subject tothe |aba payment penalty provided for in Section 4.4 hereof, All rent shall be paid t Landlord at the address set forth below in paragraph 1 cnrnmonr ment Date of this 1 ease Should the af-fementiGned inde*be dfisnseriifl—�.---edh r,e!eGt ane-..-- WhiGh F0fleGtG GORGUMOF pFiGGG. The rental inGFOaGG shall!AGVeF be less than PeFGGAt C=::%) 9f the pFevious Minimum Monthly Rent. 4.3 Additional Rent In addition to the Minimum Monthly Rent provided for in paragraphs 4.1 and 4.1.1, all monetary obligations of Tenant under this Lease, including the a premiums, stax-e �ments> utilities, maintenanGG-exr de€riedyexpenses;shall be deemed to be additional rent. 4.4 Late Payment Penalty if Tenant shall fail to pay,when the same is due and payable, any rent or additional rent or any amount or other charges required to be paid under this Lease, Tenant promises to pay to Landlord, in addition to such unpaid amounts, a late payment penalty equal to six percent (6%) of such unpaid amounts. 4.5 Place of Payment All rental and other payments shall be paid by Tenant to Landlord at UDO PARTNERS V, L.P. c/o Urban Development Organization, Ltd. P.O. Box 1811 Pacific Palisades, CA 90272 or at such other place as may from time to time be designated by Landlord in writing. 4.6 Prepaid Rent Tenant shall pay to Landlord the sum of One Dollar($1.00) upon the execution hereof as prepaid Monthly Minimum Rent for the first year of Tenant's Initial Lease Term for which rent is due. 5. SECURITY DEPOSIT As a further consideration for the execution of this Lease by Landlord,Tenant shall pay to Landlord the sum of no Dollars{$0.00} upon the execution hereof as a Security Deposit. Tenant, upon vacating the Premises, hereby warrants that all damage, if any, shall have been repaired, that the Premises shall be clean and free of rubbish to Landlord's specifications and that Tenant will have fully complied with all rental obligations contained in this Lease. Landlord's satisfaction with the discharge of these obligations by Tenant shall result in a full refund of the Security Deposit. in lieu of the above, costs including, but not limited to, repair,cleaning, or fulfillment of Tenant's rental obligation may be deducted,by and at Landlord's reasonable discretion,from the Security Deposit and upon Landlord's satisfaction that the terms,covenants, and conditions of this Lease have been fully met, the balance, if any, of the Security Deposit shall be returned to Tenant. Notwithstanding the above, Landlord's rights under this Lease prevail beyond this clause and use of the Security Deposit does not affect or abrogate Landlord's claims that have not been fully remedied by use of said Security Deposit. Landlord's obligation with respect to the Security Deposit are those of a debtor and not a trustee. Landlord can maintain the security deposit separate and apart from Landlord's general funds or can co-mingle the Security Deposit with Landlord's general and other funds. Landlord shall not be required to pay Tenant interest on the Security Deposit. 6. USE OF PREMISES 6.1 Tenant shall use the Premises only for the purpose of a operating a City of Redlands Police Department substation and community service office and general office use by the United Way Organization and for no other use or purpose without the express written consent of Landlord. 2 6.2 Tenant shall comply with all regulations, conditions, and kawathm Premises or � Tenanlusmmftbe Premises, without limitation. - 0`3 Tenant shall not use the Premises in any manner that will constitute waste, muisoqoe, or unreasonable annoyance baother tenants |nthe Shopping Center)nwhich the Poenmisemhglocated. No second-hand stone, auction, distress or fire sale, bankruptcy or, going-out-of-business sale may be conducted on the Premises without Landknn]\a consent. Tenant shall not sell or display merchandise outside the confines ufthe Premises or|nthe Common Area. 6.4 Tenant shall not do anything onthe Premises that will cause damage tothe Premises orthe Shopping Center in which the Premises is located. The Premises shall not bmoverloaded, nomachinery, apparatus, mrother appliance shall beused oroperated ioorouthe Premises that would injure orvibrate the Pnanniises, without the Landlord's prior written consent. 6.5 Tenant covenants and agrees that after opening for business in the Pmonioes, it Will continuously operate and conduct therein the business which it is permitted so to operate under the provisions hereof, except while the Pnornismm is untananbab|e by reason of fire wrother casualty, and that itwill atall times (a) keep and maintain within and upon the Premises an adequate stock of merchandise and trade fixtures, and (b) adequately staff the Premises with sufficient employees, osshall berequired to supply and service the usual and ordinary demands and requirements of its customers. Tenant shall remain open for business during normal school hours. Tenant may display inits display windows, ioanattractive and professional manner, merchandise which Tenant is permitted to sell from the Premises. 6'6 Tenant agrees that all trash and rubbish of Tenant mhuU be deposited within receptacles and that there shall benotrash receptacles permitted toremain outside mf the building ofwhich the Premises is a pad. In the event Landlord provides or designates trash rooeptoo|es. Tenant agrees to cause such receptacles tobeemptied and trash removed otits own cost and expense. Tenant agrees tofirst bag the trash before depositing it in the authorized trash area, } iOF QIAY d by the f Any t t tfea-imPGG"the United } _ s N A Dsitionsfitof any. t gencies to-increase ta > } read t Perso Fla awes; assesss�e+�tex-{icer} e� r-irr�pesedat<-ar} ' dale-dr�rt�e-tercet=tl�is��ea�,�-�{�er�T e�* ts;-� afire; and-a ' � sc��aratel��--er--as-art-e�t#e ass 1��-�e�er;--a -w#�et�r-festafled"-try--Ld�rd�-�r-�y-�e � ,3-€ �sieas-�t--is-a�ree�f-aed--��~�dersteert-tl�-tl�e-tera�e�'=as-used--liereir�-shall-rre�irre aey-fro , gls�te;-ielt�tarn� �,,,�,essiet�-capita , out-e#e +n is a aye aradlerd s-r; e ir> tie F rc�ry ses ar rsess pr 4&,-tax; charge or kw -a mast-�r . 8. MAINTENANCE Tenant shall at its expense and risk maintain all of the interior and exterior and other improvements of the Premises in good repair and condition, including, but not limited to, all necessary repairs and replacements to the plumbing, electrical wiring, windows, window glass, plate glass, doors, painting, heating system, and the air conditioning equipment. Landlord shall provide, as necessary, maintenance, repair,replacement,repainting, and cleaning of all exterior areas of the building,including the roof and Common Area (as hereinafter defined), and provide all necessary utilities to Common Area. Tenant shall bear a part of the cost of such maintenance, repair, replacement, repainting, cleaning, and utilities in the same proportion as set forth in paragraph 7A. Ter arrt ill-pay ite ire r sests� e�c-peroses-te--L lerd-r,€i�l�in-ten--{=l-t� s-a �r f t...e€--an- ve--#ar--t# --c>es��f- e-ff+car� r dlerd vi€ledy lea r if Landler 4 ra l ly atatiei s r erring t dErriaag--any--salend-ar L�ar�dler a#��s-te. rat's-per-rata--alp-e€-same:--ln-such- �rrae�e-astoa -sl�;all--1 put res«+d ar p priate adju e all r r p ra -&UGh rnainte ari4+epair Tenant shall throughout the Lease term take goad care of the Premises and other improvements and keep there free frorn waste or nuisance, shall deliver up the Premises at the termination of this Lease in good repair and condition (reasonable wear and damage excepted). In the event Tenant should neglect reasonably to maintain the Premises, Landlord shall have the right (but not the obligation) to cause repairs or corrections to be made and any reasonable costs therefore shall be payable by Tenant 4 1,- !rz�' W ' to Landlord as additional rental onthe next rental installment date. Landlord shall have first given ten O0 days prior written notice toTenant before the repairs are made by Landlord. Tenant's obligations set forth in this paragraph form o material [uad of the consideration for this Lease,and Tenant hereby waives all rights to make repairs atthe expense oYLandlord asprovided by any law, statute, or ordinance now mrhereafter ineffect. 9` AUTHORITY TO EXECUTE Each individual executing this Lease onbehalf ofthe Tenant represents and warrants that heksduly authorized to execute and deliver this Lease on behalf mfTenant in accordance with a dWk/ adopted resolution of the Tenanrs board of dinmctnrs, in accordance with the Tenant's bwlauwm, or pursuant to Tenant's partnership agreement, and that the Lease iabinding onTenant inaccordance with its terms. 10. SIGNS Tenant shall not have the right to place, construct, or maintain on the glass panes or supports of the show windows of the Premises, the dooms, or the exterior vvaUm or roof of the building in which the Premises is located,or on any interior portions of the Premises,any signs, advertisements,names,insignia, trademarks, descriptive rnateho|, or any other items without first procuring Landlord's express written consent. Landlord shall designate the siza, shapm, uoior, design, and location of all exterior signs to be installed by Tenant. Tenant agrees to submit to Landlord copies of Tenant's sign plans for Landlord's written approval. Landlord at Tenant's cost can remove any item placed, constructed, or maintained that does not comply with the provisions of this section. Tenant shall not p|aoe, nnnstruct, or maintain on the Premises any advertisement media,including,without limitation,search lights,flashing lights,loud speakers, phonographs, orother visual oraudio media. Tenant shall remove all signs etthe termination of this Lease and shall repair any damage and close any holes caused by such removal, Lettering on signs will be installed by Tenant with Landlord's approval of style and color. Tenant shall not solicit business, in, on or about the Common Area, or distribute hand bills or other advertising or promotional rnedia, in, on, orabout the Common Area or in the parking areas. 11. UTILITIES SERVICES Tenant shall pay for all water, gas, power, and electric current and all other utilities used by Tenant on the Pnmnimos from and after the delivery of possession thereof by Landlord. If any such charges are nut paid when due, Landlord may pay the sanne, and any anoount so paid by Landlord oheU thereupon become due boLandlord from Tenant nmadditional rent upon dennand. |nthe event that any utilities are furnished bvLandlord, the rates charged Tenant shall not exceed those of the local public utility company amifits services were furnished directly tuTenant, and shall not beless than its pro rata share ofany jointly metered service based upon the square footage of the buildings sen/iced, Landlord shall not be liable in damages or otherwise for any failure or interruption of any utility service being furnished the Premises, and no such failure or interruption shall entitle Tenant to terminate this Lease or to abate payment of any portion of the rent due hereunder. In the event Landlord furnishes any utilities to the Premises and elects 'to discontinue, orisunable to continue, furnishing such utilities for any reason other than the failure by Tenant to pay any utility charge or any rental payment due hereunder, Landlord shall so inform Tenant in writing and Tenant shall, upon receipt of such notioe, obtain its own utilities for the Premises. 5 12. LN-SURANCE 12.1 Reimbursement of Insurance Premiums Landlord shall atall times during the term hereof maintain bleffect mpolicy orpolicies ofinsurance covering(a)the building ofwhich the Promises are a part, in anamount not less than eighty percent(8O%)oJthe insurable value ofsuch building,providing protection against any peril generally included within the classification "Fire and Extended Coverage Inmumaonm,"and insuring against such other risks as Landlord may designate, and ( ) the rents payable henyunder. The insurance Landlord procures may include coverage onbuildings ur stores other than the Premises. Tenant sk-It to Landlord fts pr­_ ata sham of the of Gu^_h nGei- 0­ be Any insurance coverage herein provided shall befor the benefit ofLandlord and all proceeds payable thereunder shall be paid toLandlord, free and clear uf any claims thereto bxTenant. 12.2 Tenant shall atall times during the term hereof, and at its own cost and mxpense, procure and continue in force workers compensation insurance and bodily injury liability and property damage|iabi|ityinsurance adequate toprotect Landlord against liability for injury to or death of any person in connection with the construction of improvements on the Premises oxwith the use, operation, orcondition ofthe Premises. Such insurance atall times shall bo in an amount of not less than five hundred thousand dollars ($500,000) combined each occurrence and in the aggregate insudng against any and all liability of the insured with respect to the Premises or arising out of the rneintenmnce, use, oroccupancy thereof. 12.3. Leasehold lmorovements and Personal Property Tenant shall utall times during the term hereof maintain in effect policies of insurance covering (u) its leasehold improvements (including any alterations, addiUnns, or improvements on may be rneda by Tenant pursuant to the provisions of this Lease),trade fixtures,merchandise,and other personal property from time to time on or upon the Premises, in amount sufficient to meet all applicable co-insurance requirements but in no event less than eighty percent (80S6) of their actual replacement cost from time to time during the term of this Lease, providing protection against any peril included within the classification "Fire and Extended Coverage,"together with insurance against sprinkler damage, vandalism . and malicious mischief and (b) all plate glass on the Premises. The proceeds of such insurance, so long as this Lease remains in effect, shall be used for the repair orreplacement oythe property uoinsured. Upon termination ofthis Lease, the proceeds under (a) above shall ba paid tmTenant, and the proceeds under (b) above shall be paid to Londk»nj' 12.4 polic Form All insurance required to be carried by Tenant hereunder shall be issued by responsible insurance companies qualified to do business in the State of California and reasonably acceptable to Landlord. Each policy shall name Landlord as an additional insured and, if requested by Landlord, Landlord's first mortgagee or beneficiary, as their interests may appear, and copies of all policies, or certificates evidencing the existence and amounts of such innuranoe, shall be delivered to Landlord by Tenant at least ten (10) days prior to Tenant's opening for business in the Prernises. Nosuch policy shall be cancelable except after thirty (30) days written notice to Landlord and all such policies or certificates thereof shall so state. Tenant shall, at least thirty (30) days prior to the expiration of any such policy, furnish Landlord with renewals or"binders"thereof, or Landlord may order such insurance and charge the cost thereof to Tenmnt, which amount shall be payable by Tenant upon demand. All such policies of insurance shall be written as primary policies, not contributing with, and not in excess of,coverage Landlord may carry. Any policy may be carded under so-called "blanket coverage" form of insurance policies. 12.5 Waiver of Subroqation Landlord and Tenant each hereby waives any and all rights of recovery against the officers, employees, aQem1s, and representatives of such other party for loss of or damage tusuch waiving party or its property or the property of others under its control, arising frorn any 6 cause generally c«nyewwd by fire and extended mmm»naQe insurance. Tenant shall obtain and furnish evidence to Landlord of the waiver byTenant's insurance carriers of any right of subrogation against Landlord. 13. COMMON AREA 13'1 Common Area Landlord shall make available at all times during the term of this Lease, oo such oorbomm oftShopping Center as Landlord shall bnrn �nmoto time designate or relocate, such automobile parking and other Common Area as Landlord shall from time to time deem appropriate. Tenant shall have the non-exclusive right during the terrn of this Lease to use the Common Area(except for those portions of the Common Area on which have been constructed or placed permanent or temporary Idosks, displays, Garto, orstands) for itself, its employees, agents, customers, invitees and licensees, subject to the restrictions contained herein. 13'2Thetenn"ConmrnnnAnea"shaUmneanthepudionsmfthoShopping Center which haveat the time in question been designated and improved for common use by orfor the benefit ofmore than one (1)tenant orconcessionaire ofthe Shopping Center. Common Area may include but not be linfitmd to any of the following: The land and facilities utilized as parking areas; access and perimeter roads;truck passageways (which may be in whole or in part subsurface); service corridors and stairways providing access from other Premises; landscaped areas; exterior walks, mrcadas, stairways; interior corridors, e|evsdors, staio, arcades and/or balconies; directory equipment; wash rooms, comfort rooms, drinking fountains, toilets and other public facilities; and bus stations and taxi stands, but excluding any portion thereof when designated by Landlord for a non-common use, provided any portion of the Shopping Center which is not included within the Common Area shall be so included when so designated and improved for common use. 13.3 Control of Common Area The Common Area shall besubject tnthe exclusive control and management ofLandlord or such other persons or nominees as Landlord may have delegated or assigned to exercise such management or oontro|, in vvho|o or in pad, in Landlord's place and steed. In no event shaUTenanthovethehghttnsoUorsn\icjtinanymannerinanyCornrnonAramvvhhomdthemxpreosvvritten consent ufLandlord. Landlord shall have the righthonlose' ifnonnssary. uUoranyporbonoytheComnnmon/\reatnsuoh extent as may in the opinion of Landlord's counsel be legally necessary to prevent a dedication thereof or the accrual ofany rights ofany person oroythe public therein; toclose temporarily all orany portion ufthe Common Area to discourage non-customer use; to use portions of the Common Area xvhiku engaged in making additional innprm/ennontw or repairs o, alterations tothe Shopping Center; and to do and pedbon such other acts in, to, and with respect to. the Common Area as in the use of good business judgment Landlord shall determine toboappropriate for the Shopping Center. Landlord shall have the right to increase the size of the Cnnnrnon Area, including the expansion thereof to adjacent property; to reduce the Common Area; to turn Common Area into floor area to be occupied by tenants of the Shopping Center; to rearrange the parking spaces and improvements on the Common Area; and to make such changes therein and thereto from time to time which in its opinion are deemed to be desirable and for the best interests of all persons using the Common Area. Tenant agrees that itand its concessionaires,agents,employees,and vendors,suppliers, and other independent contractors will use such access roads and will operate trucks and trailers in delivering merchandise to and from the Premises upon and over such access roads as are designated therefor by Landlord as a means of ingress to and egress from the Premises- 7 13.4 Rules and Regulations Landlord shall have the tight to establish, and from time to time to change, after, and amend, and to enforce against Tenant and the other users of the Common Area, such reasonable rules and regulations (including the exclusion of employees' parking from the Common Area) as may be deemed necessary or advisable for the proper and efficient operation and maintenance of the Common Area. Such rules and regulations may provide, without limitation, the hours during which the Common Area shall be open for use. 13.5 Parking Tenant, for the use and benefit of Tenant, its agents, employees, and customers shall have the non-exclusive right in common with Landlord and other tenants and their agents,employees and customers to use parking areas for ingress, egress and automobile parking. Tenant agrees to comply with such reasonable rules and regulations for parking as Landlord may adopt from time to time for the orderly and proper operation of the parking lot. Such rules may include, but shall not be limited to restricting of employee parking to a limited, designated area or areas site. Tenant hereby authorizes Landlord to tow away from the Shopping Center at Tenant's expense any improperly parked car or cars belonging to Tenant or Tenant's employees and/or attach violation stickers or notices to such cars. Landlord shall at all times have the right and privilege of determining and changing the nature and extent of the automobile parking as in its opinion are deemed to be desirable and for the best interest of all persons using the Shopping Center and the Common Area. 14. COMMON AREA MAINTENANCE EXPENSES 14.1 Common Area Expenses During the term of this Lease Landlord shall keep or cause the Common Area to be kept in a neat, clean, and orderly condition, properly lighted and landscaped, and shall repair any damage to the facilities thereof. by-L:a r-d tk operatE,;GR,--maWAefIaTI--e-, rep iot be deem--,41- limit the defin4io-n- cos,t-Gf-uti-tity-servi-G�, preriatio�- the-Col- n--Ar , to-4),e-provided-by--an-independent of-Common pafagraph-7-4- 8 lnGu"d def—, arid 4he-payments.-made-by Tenant-,+it�-f ' , 14.2 Rgauired Alterations If at any time Landlord is required by any rule, regulation, or law ("building regulations") to make any changes, alterations, or improvements to the Common Area or Premises or any portion of the Shopping Center,including,without limitation,electrical,mechanical,or other systems or components thereof ("required alterations"), but excluding required alterations attributable to Tenant's specific use and occupancy of the Premises,which alterations shall be Tenant's sole responsibility, all costs relating to such required alterations fairly characterized as "expenses' under generally accepted accounting principles shall be fully included in Landlord's reimbursable costs and expenses for the Common Area in the year in which such charges accrue or in the year Landlord pays such charges, as Landlord shall elect, and if under generally accepted accounting principles, any portion of all such costs must be allocated to capital improvements to be depreciated or amortized over two (2) or more years, Landlord shall be entitled each year during the term hereof to include the portion of such capital costs toward Common Area Expenses as Landlord's accountant treasonably determines to be a fair estimate of the depreciation or amortization which would be chargeable for such capital improvements during such year, based upon a reasonable estimate of the useful life of the required alteration. 15. INDEMNITY Tenant hereby indemnifies and holds Landlord harmless from and against (a) any and all claims arising from Tenant's construction on or use of the Premises for the conduct of its business or from any activity, work, or thing done, permitted or suffered by Tenant and its agents and employees in or about the Premises; (b) any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any of its agents, contractors, or employees; and (c) all costs, attorneys' fees, expenses, and liabilities incurred by Landlord in defending any such claim or any action or proceeding brought thereon; and in case any action or proceeding be brought against Landlord by reason of any such claim, Tenant, upon notice from Landlord,shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risks of damage to property or injury to persons,in, upon, or about the Premises from any cause and Tenant hereby waives all claims in respect thereof against Landlord. 15. EXEMPTION OF LANDLORD FROM LIABILITY Tenant hereby agrees that Landlord shall not be liable for injury or damage which may be sustained by the person, goods, wares, merchandise, or property of Tenant, its employees, invitees, or customers, or by any other person in or about the Premises caused by or resulting from fire, steam, electricity, gas, water, or rain which may leak or flow from or into any part of the Premises, or from the breakage, leafage, obstruction , or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, or lighting fixtures whether said damage or injury results from conditions arising upon the Premises or from other sources. Tenant further agrees that Landlord shall not be liable for any damages arising from any act or negligence of any ether tenant of the Chopping Center. g etj `A 17. QUIET POSSESSION Landlord agrees that Tenant, upon paying the rent and performing the covenants and conditions of this Lease, may quietly have, hold, and enjoy the Premises during the term of this Lease. 18. ESTOPPEL CERTIFICATE Within ten(1 p)days after written request by Landlord,Tenant shall execute and defiverto Landlord an estoppel certificate. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of the Premises or of all or any portion of the Shopping Center of which the Premises is a part. Further, such failure to deliver such statement (showing any exceptions to any of the statements of fact required thereby)shall be a material breach of this Lease and if, after additional written notice from Landlord,Tenant does not deliver such certificate to Landlord within seventy-two(72)hours,Landlord may, in addition to any other remedies it has at law or in equity, terminate this Lease. 19. MECHANIC'S LIENS Tenant shall keep the Premises and the property on which the Premises is situated,free and clear of all mechanic's Hens arising out of any work performed, material furnished, construction done by or for Tenant. Tenant shall have the right to contest the correctness or the validity of any such lien,if immediately on demand by Landlord, Tenant procures and records a lien release bond issued by a corporation authorized to issue surety bonds in California in an amount equal to 1 1/2 times the amount of the claim of lien. The bond shall meet the requirements of Civil Code Section 3143 and shall provide for the payment of any sum that the claimant may recover on the claim together with costs of suit, if they are awarded in Such action. 20. ASSIGNMENT AND SUBLETTING Tenant shall not assign this Lease, or any interest herein, and shall not sublet the Premises, or any part thereof, or permit any other person or entity (except the agents and servants of Tenant)to occupy or use the Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent may,in Landlord's sole discretion, be withheld. Consent by Landlord to one assignment,subletting, occupational use by another person or entity shall not be deemed to be a consent to any subsequent assignment, subletting, occupation, or use by another person or entity. Consent to an assignment, subletting, or occupation shall not release the original Tenant from liability for the continued performance of the terms and provisions on the part of Tenant to be kept and performed hereunder. 21. LANDLORD'S ENTRY ON PREMISES Landlord and its authorized representatives shall have the right to enter the Premises at all reasonable times for any of the following purposes- (a) to determine whether the Premises is in good condition and whether Tenant is complying with its obligations under this Lease; (b)to do any necessary maintenance and to make any restoration to the Premises or the building and other improvements of the Shopping Center in which the Premises is located that Landlord has the right or obligation to perform; (c) to serve,post,or keep posted any notices required or allowed under the provisions of this Lease; (d) to post "for rent" or "for lease" signs during the last three months of the Lease term, or during any period while Tenant is in default; (e)to show the Premises to prospective brokers, agents, buyers,tenants, or persons interested in an exchange, at any time during the Lease term; (0 to shore the foundations, footings, and walls of the Premises or the Shopping Center in which the Premises is located and to erect scaffolding and Protective barricades around and about the Premises, but not so as to prevent entry to the Premises, and to do any other act or thing necessary for the safety or preservation of the Premises or the building and 10 ` other improvements of the Shopping Center Umwhich the Premises islocated. If any excavation omother construction Is undertaken or is about to be undertaken on any adjacent property or nearby street LandlorWs right under this provision extends to the owner of the adjacent property and the adjacent property mmnm/s authorized representatives. __, SALE OF PREMISES BY LANL)LORD, Notwithstanding anything contained herein hnthe contrary,Landlord may assign,In whole or in part, Landlord's interest N*this Lease, and may sell all orpart ofthe Shopping CenterImthe event ufany sale or exchange of the Prernises by Landlord and/or an assignment by Landlord of this Lease, Landlord shall beand kaherebvwm��/&/�oedand mmUevedofa8Ambi�vunder any and aUVy� and contained in o -dodw | from this Lease arising out of any act, occurrence or omndssiom, relating to the Prerniaesorb3tbisLea000ccuningoftartheconeumnnmabonofsuchso}eoroxchangemmd/ormzsiQnrnenL 23. SURRENDER OF_PREMISES Immediately upon termination ofthe Lease term, Tenant shall surrender to Landlord the Premises and all Tenants improvements and alterations in good condition (except for reasonable wear and baah except for alterations that Tenant has the right to remove,or is obligated to remove under the provisions of this Lease. Tenant shall remove all its personal property, including trade fixtures. Tenant shall perform all restoration made necessary by the removal of any afterations or Tenant's personal property,including trade fixtures. If Tenant fails to surrender the Premises to Landlord on expiration or ten(10)days after termination of the Lease term as required by this paragraph, Tenant shall hold Landlord harmless from all damages resulting from Tenant's failure to surrender the Prannines, including, without Unitatinn, claims made by a succeeding tenant resulting from Tenant's failure tosurrender the Premises. 24. HOLDING OVER |fTenant, with Landlord's consent, remains in possession of the Premises after expiration or termination of the Lease term, or after the date in any notice given by Landlord to Tenant terminating this Lease, such possession by Tenant shall be deemed to be a month-to-month tenancy,terminable on thirty (3O) days ncdic � notice anytime byeither party. All provisions mfthis Lease, except those pertaining tn term,shall a�c�/bmthe nxonth�o-mnonthtenancy pehod. ��uhngany such rnnnU-t���onthtenancy,Tenant shall 8' ' -pay required by this Lease, including Minimum Monthly Rent and additional rent as provided for by the terms of this Lease. 25' MERGER The voluntary or other surrender of this Lease by Tenant, or mutual cancellation thereof, shall not work as a merger and shaU, at the option of Landlord, terminate all o/ any existing sub{enancies, or may, at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies. 26. ATTORNEYS' FEES If either party becomes a party to any litigation concerning this Lease, the Premises, the building, or other improvements in which the Premises is located, by reason of any act or omission of the other party or its authorized representatives, and not by any act or omission of the party o, its authorized representatives who Lwasomne a party tothat litigation, the party that causes the other party tm become t1 involved in the litigation shall be liable to that party for reasonable attorneys'fees and court costs incurred by it in the litigation. 27. NOTICES Any notice, demand, request, consent, approval of communication that either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, certified, or registered mail, and shall be addressed to the other party of the address set forth after their signatures at the end of this Lease. 28. SUBORDINATION This Lease is and shall be subordinate to any encumbrance now of record or recorded after the date of this Lease affecting the building, and other improvements of the Shopping Center of which the Premises is a part. Such subordination is effective without any further act of Tenant. Tenant shall from time to time, on request from Landlord, execute and deliver any documents or instruments that may be required by a lender to effectuate any subordination. 29. WAIVER No delay or omission in the exercise of any right or remedy of Landlord on any default by Tenant shall impair such a right remedy or be construed as a waiver. The receipt and acceptance of Landlord of delinquent rent shall not constitute a waiver of any other default; it shall constitute only a waiver of timely payment for the particular rent payment involved. No act or conduct of Landlord, including, without limitation, the acceptance of the Keys to the Premises, shall constitute an acceptance of the surrender of the Premises by Tenant before the expiration of the Lease term, Only a notice from Landlord to Tenant shall constitute acceptance of the surrender of the Premises and accomplish a termination of the Lease. Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of the Lease. 30. RECORDATION This Lease shall not be recorded without Landlord's prior written consent and such recordation without Landlord's consent shall, at Landlord's option, constitute non-curable default. Tenant shall execute and deliver to Landlord on the expiration or termination of this Lease, immediately upon Landlord's request, a quit claim deed to the Premises, in recordable form, designating Landlord as transferee. 31. ALTERATIONS 31.1 Permitted Alteration Tenant shall not make any alterations or additions to the Premises nor make any contract therefor without first procuring Landlord's written consent, except for non-structural, interior alterations, improvements, or adjustments costing less than one thousand dollars ($1,000). All alterations,additions,and improvements made by Tenant to or upon the Premises,including floor coverings, but excluding fight fixtures, signs, cases, counters, or other removable trade fixtures, shall at once when made or installed be deemed to have become the property of Landlord; provided, however, if prior to termination of this Lease,or within ten(10)days thereafter, Landlord so directs by written notice to Tenant, Tenant shall promptly remove the additions, improvements, fixtures, trade fixtures, and installations which were placed in or on the Premises by Tenant and which are designated in said notice and shall repair any damage occasioned by such removal. If Tenant shall fail to remove any such addition, improvement, 12 ` ^ fxh/m* #rtrade fixture asdirected bwLandlord, Landlord may effect-such removal and xe«m�r adTenemt� expense. ' 31.2 Standards of Construction All work with respect to alterations, additions, and changes shall not diminish the market value of the Prernises and shall be done in a good and workmanlike manner and diligently prosecuted to completion to the end that the improvements on the Premises shall at all times be a complete unit except during the period of work. Any such changes, alterations, and improvements shall be performed and done strictly in accordance With the laws and ordinances relating thereto, and with the requirements of all carriers of insurance on the Premises and the Board of Underwriters, Fire Rating Bureau, or sirnilar organization. In performing the work of any such alterations, additions, or changes, Tenant shall have the work performed in such a manner so as not to obstruct the access to the Shopping Center of any other tenant in the Shopping Center. 31.3 Notification of Landlord At least ben (10 days prior to - any suchsuchwork or construction inorabout the Premises, Tenant shall notifynotifyLandlord inwriting of the expect date of commencement thereof. Landlord shall have the right at any time and from time totime to post and maintain on the Premises such notices as Landlord deems necessary to protect the Premises and Landlord or vendors. 31.4 Performance and Completion Bond Before the commencement ofany alterations uradditions to the Prenimes. Tenant, atits sole cnyt, shall furnish to Landlord a performance and completion bond issued byaninsurance company qualified todobusiness inCalifornia, ina sum equal toone and one-half Urnus the cost ofthe alterations (as determined by the construction contract between Tenant and its contractor)guaranteeing the completion of the alterations or additions fee and clear of all liens and other charges, in accordance with the plans and specifications approved by Landlord. The alterations shall be performed in a manner that will not interfere with the quiet enjoyment of the other tenants of the Shopping Center. 2. ORTIC)P4 32.2 SUGh eption-z4all be ' 13 Minimum me —., Refit is to be d ve-Tona441.notice (th a !!MaFk st-rle nt,Notlee!9 Of-the dOtGFM!nat!Gn Of SUGh k4inl!Vlenthly Rent and the detefmfnafi�n of Am tnOement of 33. EMINENT DOMAIN 33.9 Definitions of Taking The term "total taking" means the taking of so much of the Premises by right of eminent domain or other authority of law, including a voluntary transfer under the threat of the exercise thereof,that the remainder of the Premises is not suitable to conduct the business which Tenant intends to conduct therein. The term"partial taking"means the taking of a portion of the Prernises which does not constitute a total taking as above defined. 33.2 Total Taking If during the term hereof there shall be a total taking by public authority under the power of eminent domain, then this Lease, and the leasehold estate of Tenant in and to the Premises, shall cease and terminate as of the date the condemning authority takes actual physical possession of the Premises. 33.3 Partial Taking If during the term hereof there shall be a partial taking of the Premises, this Lease, as to the portion of the Premises so taken, shall terminate on the date on which the condemning authority takes actual physical possession of such portion, but this Lease shall continue in full force and effect as to the remainder of the Premises. The Minimum Monthly Rent payable by Tenant for the balance of the term shall be abated in the ratio that the floor area of the Premises taken bears to the total floor area of the Premises immediately prior to such taking, and Landlord shall make all necessary exterior and structural repairs or alterations in order to make the remaining portion of the Premises a complete architectural unit. 33.4 Award All compensation and damages awarded for the taking of the Premises or any portion thereof shall belong to and be the sole property of Landlord, and Tenant shall not have any claim or be entitled to any award for diminution in value of its leasehold interest hereunder or for the value of any unexpired term of this Lease; provided, however,that Tenant shall be entitled to make its own claim for and receive any award that may be made for Tenant's improvements, or on account of any cost or loss Tenant may sustain in the removal of Tenant's trade fixtures, equipment, and furnishings. 33.5 Proration of Rent If this Lease is terminated pursuant to the provisions of this Article, then all rentals and other charges payable by Tenant to Landlord hereunder shall be paid up to the date on which possession shall be taken by the condemning authority and any rentals and other charges theretofore paid by Tenant which are applicable to any period subsequent to the date possession is taken, shall be repaid to Tenant by Landlord,and the parties shall thereupon be released from all further liability hereunder. 33.6 Waiver of Rights of Termination Tenant hereby waives any statutory rights of termination which may arise by reason of any partial taking of the Premises under the power of eminent domain. 34. DEFAULT 6Y TENANT 34.9 The following events shall be deemed to be events of default by Tenant under this Lease: 5 14 -^ z l� • � � • •= p.i E'. 1 0 4 � z# ! • � � • W tl � ♦ Y t � ! • • t i 8 •. ! • � F � � f ! R • � `! � !m f "i i ! • l.. E - i �« � ! • • �� � •" • 0 +♦ � � �' � !' •`i 6 # • �. ..1. * .. • E of • `i .i. �. i • ! � @ • i • • t i! ® � � n 4 t • i E i �f ` i t • t ! �� #" � � ! • 6 �� # # � � i • i f • • � i f +� � i • i • f ! ! i * � • i • � � ®� * t er, t • � � �® .�. ® � i i � * ® '. # • � � M # ® # �� • • • • � • � # i ! • • ! � � � � E # f � � � '. :. � # � i � � ' * � ! i •` i � � � � � � `! E �: #'!moi i # ! t` • # � � # i ! • �' - � e • • � � � r i t <€ 6 f • .® • i' i t i i i �'. i' i i i.+. +t i i i • 'y + �� t N i i `! i H i iw � f !® i ! `i i ii `i i. i i € i i � • i` 'i `i i` # m i i ;� "i #. i s.. `i #: i i i i i. i f i'i i i i' iii i .i "i s. - 'i ii • i i ® i i i i" «i. i, i i i i i i• t i. +.i... .i ® ii` i i '" iii i® i i • i' i t •i i"!.•' i i i i • i i E i i• i is .# .6 i i i. #=i C'^ i i .i � i® i . i i ii .i i i i i i i i• 'i .f«. � i i i i .i„ i ;� i i i i i i i i i • i i f i i i i i i i � a i -i i i •i` i i #: i i. i i ti . '• � ° i _ i �� i .i i` � ® i i i i `i i i f i + � :i i • .i i i ai `i • i i i .i i i .i k � • i i i i i i • i m i � i # ! i i i # f i i i i ! f i i b .i ,. i i . i i ii i 40, EXECUTION OF LEASE The submission of this document for examination and negotiation does not constitute an offer to lease,or a reservation of, or option for,the Premises;and this document shall become effective and binding only upon execution and delivery hereof by Tenant and by Landlord(or,when duty authorized,by Landlord's agent or employee). No act or omission of any agent of Landlord or of Landlord's broker shall after, change, or modify any of the provisions hereof. 41. WAIVER OF REDEMPTION Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event of Tenant being evicted or dispossessed for any cause, or in the event of Landlord obtaining possession of the Premises by reason of the violation by Tenant of any of the covenants and conditions of this Lease or otherwise. The rights given to Landlord herein are in addition to any rights that may be given to Landlord by any statute or otherwise. 42. SEVERABILITY If any provision of this Lease shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision of this Lease and all such other provisions shall remain in full force and effect; and it is the intention of the parties hereto that if any provision of this Lease is capable of two constructions, only one (1) of which would render the provision valid, then the provision shall have the meaning which renders it valid. 43. NE4LtE-A&E Landlord And-T-e�aGkaGw4edge4ha44i& sea-s"i-isa4Net-Leah= itl}-�poGtte4ax-L- 44. CUMULATIVE REMEDIES No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 45. COVENANTS AND CONDITIONS Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition. 46. BINDING EFFECT: CHOICE OF LAW This Lease shall bind the parties, their personal representatives, successors, and assigns. This Lease shall be governed by the laws of the State of California. 47. FORCE MAJEURE Any prevention, delay, or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes therefor, governmental restrictions, governmental regulations, governmental controls, enemy or hostile governmental action, civil commotion, fire, or other 17 casualty, and other causes beyond the reasonable control of the party obligated to perform any term, covenant, or condition of this Lease, shall excuse the performance by such party for a period equal to any such prevention,delay,or stoppage,except the obligations imposed with regard to rental and other charges to be paid by Tenant pursuant to this Lease. 48. BROKERS Tenant warrants that it has had no dealings with any real estate broker or agents in connection with the negotiation of this Lease it knows of no other real estate broker nor agent who is entitled to a commission in connection with this Lease with the exception of Randy E. Nonberg on the behalf of Landlord. 49. INTEREST ON UNPAID RENT Except as expressly provided herein, any amount due to Landlord not paid when due shall bear interest at the maximum legal rate of interest per annum from the date due to the date of payment. Payment of such interest shall not excuse or cure any default by Tenant under this Lease. 50. JOINT AND SEVERAL OBLIGATION If more than one person or entity is Tenant,the obligations imposed on each such person or entity shall be joint and several. 18 51. SUBMISSION This document is null and void and shall have no effect whatsoever unless and until countersigned by Landlord. EXECUTED BY TENANT This 20th day of June, 1995. TENANT: City of ed ands Police Department ATTEST: Name/Title: Swen Larson, Mayor Lorrie Poyzer, Clerk Address: City of Redlands P. O. Box 3005 Redlands, CA 92373 (909)798-7638 1, t�day 10 �-( EXECUTED BY LANDLORD This 3'j k. of J4Po-, 1995. LANDLORD: LIDO PARTNERS V, L.P. By Name/Title: Elliot S. Zoren�ssident Urban Development Organization 1-4, General Partner By Naandy Nonberg, Co-Preside"' Lyban Development Organizatio ,�td_ General Partner Address- cto Urban Development Organization, Ltd. P.O. Box 1811 Pacific Palisades, CA 90272 19 t Circle K �» 11-11-IJLLIU Burger t � ` 'Queen >� ar--m U.S.Video Nair Chic j I i.f VallaEta"s C1 Ba ke ry LESuper 980 Store 4 LF Laundromat V Availa ;e y j #44(7 F 1y +, ise a s a -.. -.._.._...-.. `-: -` South Phltiy I ; Steak iL Cheese G t Carniceria Los Vasquez �1 M&C Liquor cf A-'t Cleaners 17 it ' SHU,Inc r Childcare 1 t ( F AlLLJ asx r I � tl} f[i atJ o-sTs s ;a+a I "`1 "' .ti_..,.�w...• .. t -- ,.yx ...�_4w'�._.vsu__;_,..m'-". ,�..F� t:,` ..+i=-.sm-,. =*v. «'b-.br.-�^a-,:a'. i MAY ty NORTH REDLANDS SHOPPING CENTER MAY 1995 1$42-1598 NORTH ORANGE STREET REDLANDS,GALIVORIVA 82374 U R$A N I FVELOPME.NT ORGANIZATION L T L9. `7 r� i i S Vt ! r r 3 `,,� - "FZI -- ' " � ADDENDUM TOLEASE I Notwithstanding anything to the contrary contained in the Lease, the Lease, for the Initial Tenn, shall be a °ooxss tease" and Tenant shall have no obligation for its share of common area maintenance expenses maprovided in Paragraphs 7, 8' 11, 12, & 14. 2. Landlord agrees to furnish Tenant with the following building standard improvements: STORE FRONT: Astandard,finished store front,including plate glass(initial installation only),and one front door without mail slot. BATHROOM:One bathroom containing one toilet,one lavatory(cold water only),vent and partition. ELECTRICAL /\ 100 AMP panel; an *|ontdmz| switch in bathroom with one light outlet; one 180 watt fluorescent riohdfixture, including tubes(tubes oninitial installation only).for every 15Osquare feet mfleased floor space;two 12Ovoftduplex receptacles spaced onthe walls;telephone conduit hmthe Premises and electrical circuit for exterior sign; and show window outlets inceiling based on 200 watts per linear foot ofshow window. HEATING, VENTILATION, /\|Fl CONDITIONING: One tun per 400 square feet ofleased floor space. If, inthe opinion ofLond|opd\sonntna(tmr. anincromsenrdennsaseisxvarrantod' Land|ord reserves the rightin (bsabso|utedisoreUontoincveoseordeonoasmthetonnage. Distribution shall consist of two supply and one return air register for up to and including 1,600 square feet of leased floor space. One additional supply register shall be installed for every additional 800 square feet mfleased floor space. UlF|U7lES: 3/4^water line and anelectric meter. Gas shall babrought tothe building inwhich the Premises are located. Gas meter and individual gas lines to the Premises to be provided by Tenant. FLOOR: Smooth finish, concrete slab floor throughout the Premises. WALLS: Demising walls, gyp board, taped and sanded, and painted. CEILING: 2o4exposed grid, drop-in ceiling with acoustical tile. All items provided by Landlord shall be designed and constructed in such matter as Landlord, at its absolute discretion deems advisable. 3, Tenant understands and acknowledges that |tshares mbathroom, electric meter, heating and air- conditioning unitondthennostotw|ththead/aoentuniLTenantmgneestnpay|tsnbansofe|euth/jty, maintenance and any other costs attributable to this arrangement which has been determined to be 72.2% of such expenses. If at any time adjacent unit becomes vacant, Tenant will pay all expenses. Thermostat will be relocated to be convenience of both Tenants 4� Landlord will divide space, install doors and modify windows in accordance with attached Exhibit "B^. Landlord's work will include painting, cleaning and carpeting unit at Londlord's sole cost and expense. 5, Tenant will install"Police"sign and Landlord will provide illumination of said sign. Said sign will be located per attached Exhibit ~B^ Plans will besubmitted for approvaL 6, This Lease may be cancelled by Land|ord, in the event Tenant stops staffing the facilites fore period ofWinty (9Q) days. 7, Landlord has the right to relocate Tenant into a similar size units within the shopping center, at any time, upon 45 days written notice to Tenant, The cost for any relocation will be paid by Landlord. No adjustment to rent will he made for a different size unit.