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hereto and incorporated herein by reference. These additional lease condition are a material part <br /> of this lease agreement and any default of these conditions will be deemed a major breach and will <br /> subject this lease to immediate termination. <br /> 5. EXTENSION PERIODS: Landlord shall have the right, but not the obligation, to <br /> provide Tenant the option to extend the Term for one (1) additional period of one (1) year on the <br /> same terms and conditions as set forth in this Lease. Each option shall be agreed to in writing by <br /> the City Manager and Tenant prior to the expiration of the Term or any Extension Period then in <br /> effect. <br /> 6. RENT: Upon the Effective Date(a)Tenant shall pay to Landlord, as rent("Rent"), <br /> the monthly sum of two thousand six hundred sixty eight dollars ($2,668) in advance, on the lst <br /> day of each calendar month and continuing for the first six months of the Term. Effective June 1, <br /> 2022, rent shall be increased to three thousand four hundred ninety five dollars ($3,495) for the <br /> remainder of the Term, including any extension periods exercised under Section 5. Tenant shall <br /> commence the payment of Rent and other charges payable pursuant to this Lease on the Effective <br /> Date. All payments of Rent and other sums due to Landlord hereunder shall be made payable to <br /> "The City of Santa Ana" and remitted to: City of Santa Ana M-13,20 Civic Center Plaza,PO Box <br /> 1988, Santa Ana, CA 92702. A LATE CHARGE OF TEN PERCENT (10%) SHALL BE <br /> APPLIED TO ANY PAYMENT HEREUNDER DUE BUT UNPAID AFTER THE I0TU OF THE <br /> MONTH. Landlord and Tenant hereby agree that Rent for any Extension Period, if the option for <br /> such is exercised, shall be subject to a CPI adjustment annually on the anniversary of the Effective <br /> Date of this Agreement. <br /> 7. HOLDOVER: Tenant has no right to retain possession of the Premises or any part <br /> thereof beyond the expiration or termination of this Lease. In the event that Tenant holds over, <br /> then the Rent shall be increased to 150% of the Rent applicable immediately preceding the <br /> expiration or termination. Nothing contained herein shall be construed as consent by Landlord to <br /> any holding over by Tenant. Any holding over by Tenant of the Premises after the expiration or <br /> termination of this Lease shall operate and be construed as a tenancy from month to month on all <br /> terms of this Lease, terminable by either party upon thirty (30) days prior written notice to the <br /> other. <br /> 8. LANDLORD'S TITLE: (a) Landlord hereby covenants, represents and warrants to <br /> Tenant that Landlord has fee simple title to the Premises and has the full right and lawful authority <br /> to make this Lease. Notwithstanding anything contained herein to the contrary, if there are any <br /> liens, security interests, restrictions, leases, encumbrances, encroachments, laws, ordinances, <br /> governmental rules or regulations, title restrictions, zoning, endangered species or any other <br /> matters which in fact interfere with Tenant's use of the Premises, then Tenant may terminate this <br /> Lease without owing any liability to Landlord. Landlord covenants that so long as Tenant is not <br /> in monetary default hereunder, Tenant shall have quiet and peaceful possession and enjoyment of <br /> the Premises, all improvements located thereon and of all easements, rights and appurtenances <br /> thereunto belonging. <br /> City Council 12 — 15 1/18/2022 <br />