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EXHIBIT 1
<br />to Lessee on the Start pate with NO allowance for ordinary wear and tear, Lessee shall repair any damago occaslonod by the Installation, maintenance or removal of
<br />Trade Fixtures, Lessee owned Alterations and/or UUtlty Installations, furnishings, and equipment os well as the removal of arty storage Iankinstalled byor for Lessee.
<br />Lessee shall also remove from the Premises any and all Hazardous Subslances brought onto the Premises byor for lessee, or any thltd party (except Hazardous
<br />Substances which weredeposhed via underground migration Iiomare as outside of the Premises) to tholevel specified In Applicable Requirements. Trade Fixtures
<br />shall remain the properly of Lessee and shall be removed by Lessen, Any personal property of Lessee not removed on or before the Expiration Date or any ear for
<br />terminatlondate shaftbe deemed to have been abandoned by Lessee and maybe disposed of or retalnedby Lessor as Lessor may desire. The falIure by Lessee to
<br />time Iyvacale the Premises pursuanttothIs Paragraph 7,4(c) without the expresswrltten consent oflessor shall constitute a holdoverunder the provlslonsol
<br />Paragraph 26 below.
<br />8, Insurance; Indemnity.
<br />8.1 Payment For Insurance, lessen shall pay for all Insurance requlred under Paragraph 8 except to the extent ofthe cost attributable to liability insurance
<br />carried by lessor under Paagraph 8.2(b) In exmssof $2,0(50,000 per occurrence, Premiums for polity periods commencing prior to or extending beyond the Lease
<br />tatm shall be prorated to cer(aspond to the Lease term Payment shall be made by lessee to Lessor within 10 days following receipt of an Invoice,
<br />82 liability Insurance,
<br />la) Carried by lessee, lessee shall obtain and keep In force a Commercial General Ltabllky polloyofinsurance protecting Lessee and Lessor as an
<br />additional Insured agalnstclalms for bodily Injury, personal Injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of
<br />the Premises and all areas appurtenant thereto. Such Insurance shall be on an occurrence basis providing singiegmtt coverage In an amount not less than $1,000,ODO
<br />per occurrence with an annualaggregate of not less than $2,000,000. Lessee shall add Lesser as an addtonal insured by means of an endorsement at least as broad
<br />as the Insuranceservlco Organlzatlon's"Additional Insured•Managem orteisorsof Premises" Endorsement. The policy shall not contain any Intra-Insured excluslons
<br />as between insured persons or orga nitat Inns, but shall include coverage for liability assumed under this Lease as an "Insured contnici far the performance of Lessee's
<br />Indemnity obligations under this Leasa, The limits or sold Insurance shall not, however, limit the liability of lessee not relieve lessee of any obligation hereunder,
<br />Lessee shall provide an endorsement onus IN bliltypolicyfles) which provides that itslnsurance sha€! be primary to and not contributory with any similar insurance
<br />carried by Lesso,whose Insurance shall be considered excess Insurance only.
<br />(b) Carried by Lessor. Lessor shall maintain liability Insurance asdescrlbed in Paragraph8.2(a), in addition to, and not in lieu of, the Insurance required to
<br />be maintained by lessee. Lessee shall, to the extent available, riot be named as an additional insured therein. The City of Santa Ana,
<br />and its officers, employees, Agent and representatives, shall to the extent no costis incurred with
<br />respect thereto and to the extent reasonably available to Lessor shall be additional insureds with
<br />respect to any general liability or auto liability policy obtained by Lessor, by endorsement, and all
<br />such insurance policies shall be primary and non-contributory. Lessor shall send certificates of such
<br />insurance to Lessee to Its Risk Management Division, qth Floor, 20 Civic Center Plaza, Santa Ana
<br />92701,
<br />8.3 Property Insurance - Building, improvements and Rental value.
<br />(a) Building and Improvements, The insuring Parry shall obtain and keep in force a policy orpolicies in the name of Lessor with loss payable to Lessor,
<br />any ground -lessor, and to any Lender Insuring loss or damage to the Premises. The amount of such Insurance shall be equal to the full nsurable repiacementcost of
<br />the Premises, as the some shall exist from time to time, or the amount requlrsad by any Lender, but in no event more than the commerclalty reasonable and available
<br />insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Flxturos,and Lessoe's personal property shall be insured by lessee not by lessor. If
<br />the coverage Is avallable and commeicialiv appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (eacept the perils of flood
<br />ondjor earthquake unless required by a Lender}, including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading,
<br />demolition, reconstructfoA or replacement of anyportion of the Premises as theresult of a covered loss, Sold policy or policies shall also contain an agreed valuation
<br />provision In lieu of anytoinsurance c1suse, waiver of subrogation, and Inflation gu and protection causing an Increase In the annual property Insurance coverage
<br />amount by a factor of not less than the adjusted U.S, Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises
<br />are looted, if such Insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence, and lessee shall be liable For such
<br />deductible amount In the event of an Insured Loss,
<br />(b) Rental Value. The Insuring Party shall obtain and keep In force a policy or policies In the name of Lessor with loss payable to Lessor and any Lender,
<br />Insuring the loss of the full Rent for one yearwlth an extended period of Indemnity loran additional Wodays ("Rental value Insurance"), said insurance shall contain
<br />an agreed valuation provision In lieuof anycolnsurance clause, and the a mountof coverage shalt be adjusted annually toreflect the projected Rent otherwise payable
<br />by lessee, for the next 12 month period. lessee shall be liable for anydeductlble amount in the event of such loss,
<br />(c) AdjatentPtemises. If the Premises are part of a larger building, prof agroup ofbuildkngsowned by Lessor which are adjacent to the Premises, the
<br />Lessee shall pay far anyinctease In the premiums for the property Insurancti of such building of buildings If said Increase Is caused by Lessea's acts, omisslons, use or
<br />occupancy of the Premises.
<br />8.4 Lessee's Property; Business interruption Insurance; Worker's Compensation Insurance.
<br />(al Property Damage. Lessee shall obtain and maintain insurance coverage on allot Lessee's personal property, Trade FBtturts, and Lessee owned
<br />Alterations and Utility installations. Such huuranco shalt bo full replacement cost covenagewith a deductible of not to exceed $t,(xio per occurrence. The proceeds
<br />Irom any such Insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility instailatioti
<br />(b) Business Interruption. Lessee shall obtain and maintain loss of Income and extra expense Insuronceln amounts as will reimburse Lessee for direct or
<br />Indirect loss of earnings attrlbulabie to all perlls commonly Insured against by prudent lessees In the business of lessee or attributable to prevention of access to the
<br />Ptemisesas aresult of such perils,
<br />(c) Worker's Compensation Insurance. Lessee shall obtain and maintain Worker's Componsation Insurance in such amount as may be required by
<br />Applicable Requirements- Such policy shall include a'Walver of Subtogadon' endorsement. Lessee shall provide Lessor with a copy of such endorsement along with
<br />the certificate of Insurance or copy of the policy squired by paragraph It.5.
<br />(d) No Representation of Adequate Coverage. Lessor makes no mpresentatlan that the lin itsor forms of coverage of insurance speclRed herein are
<br />adequate to cover Lessee's property, business operations or obligations under this Least.
<br />8.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the pollcyterm a'General Policyholders Rating" of at least A•,vh,
<br />as set forth In the most cu rrent issue of "8est's Insurance Gulde", or such other rating as maybe required by a lender. Lesseashan not do or permit to be done
<br />I g which Imrelldates the required Insurance policies, Lessee shall, prior (o the Start Date, deliver to Lessor certified copies of policies of such insurance or
<br />INITIALS AWS
<br />0 2019 AIR CRE, All Rights Reserved. Last Edited; 2/25/2021 SIMAM
<br />STN-27,30, Revised 11.25.2019 Page 6 of 16
<br />City Council 26 — 8 4/19/2022
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