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HomeMy WebLinkAboutFIRST AMERICAN TRUST COMPANY (S.T.C. CORPORATIONLEASE THIS LEASE made and entered into this -6 -22 2- day of 19e7 by and between S.T.C. corporation, 1026 River Lane, Santa Ana, California, 92706, hereinafter referred to as "Lessor": CITY OF SANTA ANA, a Municipal corporation, hereinafter referred to as "Lessee": IT IS AGREED BETWEEN the parties hereto as follows: 1. DESCRIPTION OF PREMISES: The Lessor hereby leases to Lessee, and Lessee hires from Lessor, on the terms and conditions hereafter set forth, those certain premises located at 1415/1417 South Broadway, in the City of Santa Ana, County of Orange, State of California. 2. TERM: The term of the within lease shall be for five (5) years commencing May 1, 1987 and ending April 30, 1992. 3. BASE RENT: Lessee shall pay to Lessor as rent for the premises, monthly payment of $2,355.00, in advance, on the lst day of each month of the term hereof, Lessee shall pay Lessor upon execution hereof $2,355.00, as rent for the month of May, 1967. 4. RENT INCREASE: Commencing on the 1st anniversay of this lease, May 1, 1988 and each anniversay date thereafter, the rental rate per month shall be increased upward according to the changes in the consumer price index (1967=100) - Los Angeles/Long Beach/ Anaheim - all Urban Consumers' published by the Bureau of Labor statistics, U.S. Department of Labor (or if there is no such index, then by the successor or most nearly comparable successor index thereto as agreed by the parties.) .The monthly Base Rent payable pursuant to paragraph 3 shall be calculated as follows: the Base Rent payable for the first month of the term of this Lease, as set forth in paragraph 1 3 of this Lease, shall be multiplied by a fraction the numerator Of which shall be the C.P.I. of the calendar month during I which the adjustment is to take effect, and the denominator of which shall be the C.P.I. for the calendar month in which the original Lease term commences. The sum so calculated shall constitute the new monthly Base Rent hereunder, but, in no event, shall such new Exhibit A 6 0 D, monthly Base Rent be less than the Base Rent payable for the month immediately preceding the date for the rent adjustment. In the event the compilation and/or publication of the C.P.I. shall be -transferred to any other governmental department or bureau or agency or shall be discontinued, then the index most nearly the same as the C.P.I. shall be used to make such calcula- tions. In the event that Lessor and Lessee cannot agree on such alternative index, then the matter shall be submitted for decision to the. American Arbitration Association in the County in which the Premises are located, in accordance with the then rules of said association and the decision of the arbitrators shall be binding upon the parties, notwithstanding one party failing to appear after due notice of the proceeding. The cost of said Arbitrators shall be paid equally by Lessor and Lessee. Lessee shall continue to pay the rent at the rate previously in effect until the increase, if any, is determined. Within five (5) days following the date on which the increase is determined. Lessee shall make such payment to Lessor as will bring the increased rental current, commencing with the effective date of such increase through the date of any rental installments then due. Thereafter the rental shall be paid at the increased rate. 5. ADJUSTMENTS TO RENT: Real property taxes, assessments. Lessee shall pay to Lessor upon demand, all real property taxes levied and assessed upon the building and the land upon which the building is situated which are in excess of the Real Property taxes assessed for the year 1986-1987 in the sum of $789.82. 6. RENT: WHEN DUE: WHERE PAID: All monies payable by Lessee to Lessor under this lease shall be deemed to be rent and shall be payable and recoverable as rent in the manner herein pro- vided and Lessor shall have all rights against Lessee for default in any such payment. Rent shall be paid to Lessor in advance, on the first day of each calendar month, during the entire term of this lease, without deduction or set-off, in legal to-hder of the jurisdiction in which the Building is located at the address of Lessor as set forth, or to such other person or entity or to such other address as Lessor may designate in writing. Lessee's obli- -2- gation to pay all rent due under this Lease shall survive the expiration or earlier termination of this lease. Should this lease commence on.a day other than the first day of the month or terminate on a day other than the last day of the month, the rent for such partial month shall be pro -rated based on a 365-day year. 7. INTEREST RATE ON DELINQUENCIES: If Tenant shall fail to pay any rent when due, such unpaid amounts shall bear interest at the rate of 10% per annum from the due date until paid. S. USE: The premises are leased to the Lessee for the pur- poses of operating an office for the operation of their business. Lessee shall not use, or permit said premises, or any part thereof, to be used, for any purpose or purposes other than the purpose or purposes for which the said premises are hereby leased or any other reasonably related office -type use. 9. CONDITION OF PREMISES: (a) Lessor shall deliver the premises to Lessee in a clean condition on the Lease Commencement Date and Lessor warrants to Lessee that the plumbing, lighting, air conditioning, and heating system in the premises shall be in good operating condition. In the event that it is determined that this warranty has been violated, then it shall be the obligation of Lessor, after receipt of written notice from Lessee setting forth with specificity the nature of the violation, to promptly, at Lessor's sole cost, rectify such violation. (b) Except as other- wise provided in this Lease, Lessee hereby accepts the premises and the office Building Project in their condition existing as of the Lease Commencement Date or the date that Lessee takes posses- sion of the Premises, which is earlier, subject to all applicable zoning municipal, county and state laws, ordinances and regulations governing and regulating the use of the premises, and any easements, covenants or restrictions of record, and accepts this Lease subject thereto and to all matters disclosed thereby and by an exhibits attached hereto. Lessee.acknowledges that it has satisfied itself by its own independent investigation that the premises' are suitable for its intended use, and that neither Lessor nor Lessor's agent or agents has made any representation or warranty as to the present or future suitability of the premises.and office Building for the con- -3- duct of Lessee's business. 10. MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREA SERVICES: Lessor's•Obliations: (a) Lessor shall keep the Office Building, exterior walls, roof and foundation and the equipment in good condition and repair. Lessor shall not be obligated to paint such exterior walls norpa.int and maintain any portion of the interior of the building including the glass windows. Lessor shall not be obligated to maintain the asphalt parking lot and the driveway. Lessor shall continue to maintain the lawn unless Lessee desires to maintain the lawn and shrubbery and informs Lessor in writing - Lessor's Obligations: (b) Lessee shall athis expenses paint the interior and exterior of the building as necessary and to re- place and repair the asphalt of the parking area of the premises and the driveway as necessary to keep it in good condition and repair. Lessee is authorized, after the date of commencement of lease to remove certain interior walls marked in red and add an interior wall in one room to make a hallway in accordance with Exhibit "A" attached hereto. Lessee is further authorized to remove the over- hang over the driveway on the south side of the building and the block wall fence on the South side of the premises. (c) On the last day of the'term hereof, or on any sooner termination, Lessee shall surrender the premises to Lessor in the same condition as received, ordinary wear and tear excepted, clean and free of debris, including but not limited to replacement of all walls removed by Lessee and all changes made in the interior Of the building as described in Exhibit "A" and the replacement of the overhang over the driveway on the south side of the building rep7.ace_eent and the of the block fence on the south side of the build- ing unless otherwise requested by Lessor in writing. Lessor shall r not furnish janitorial service and has given Lessee a two cent credit a month on rent for such services. Lessor shall pay Lessee for carpet credit the sum of $8.o0 a square yard. Any damage or deterioration of the premises shall not be deemed ordinary wear and tear if the same could have been prevented by good maintenance prac- tices by Lessee. Lessee shall repair any damage to the premises -4- occasioned by the installation or removal of Lessee's trade fixtures, alterations, furnishings and equipment. Except as the otherwise stated in this Lease, Lessee shall leave the air lines, power panels, electrical distribution systems, lighting fixtures, air conditioning, window coverings, wall coverings, carpets, wall panelling, ceilings and plumbing on the premises and in good operating condition. • 11. INSURANCE HAZARDS: Lessee shall not use or permit a use of the premises, or perform acts or permit acts to be performed which will increase the existing rate of insurance upon the building in which said premises may be located, or cause a cancellation of any insurance policy covering said building, or any part thereof, nor shall Lessee sell or -permit to be kept, used, or sold in or about said premises, any article which may be prohibited by the standard form of fire insurance policies- Lessee shall comply with any reasonable requirements pertaining to said premises, of any insurance organization or company necessary for the maintenance of reasonable fire and public liability insurance covering said build- ing and appurtenances. 12. WASTE, QUIET CONDUCT: Lessee shall not commit, or suffer to be committed, any waste upon the said premises, or any nuisance, or other act or thing which may disturb the quiet enjoy- ment of any other tenant in the building in which the demised premises may be located. 13. ALTERATIONS- MECHANIC'S LIENS: Lessee shall not make, or suffer to be made, any alterations of the said premises, or any part thereof, or construct new buildings, without the written con- sent of Lessor first had and obtained, which consent shall not be unreasonably withheld, and any additions to, or alterations of, the said premises, except movable furniture and trade fixtures, shall become at once a part of the realty and belong to Lessor. Lessee shall keep the demised premises and the property in which the demised premises are situated free from any liens arising out of any work performed, material furnished, or obligations incurred by Lessee. 14. UTILITIES: Lessor shall pay for all water, air condi- tioning, gas, light and power. Lessee shall pay for all other -5- utilities furnished to said premises,. including jan torial services. 15. ABANDONMENT OF PREMISES. TRADE FIXUTRES: Lessee shall not vacate or abandon the premises at any time during the term; and if Lessee shall abandon, vacate or surrender said premises, or be dis-possessed by process of law, or otherwise, any personal pro- perty belonging to Lessee and left on the premises shall be deemed to be abandoned, at the option of Lessor, except such property as may be mortgaged to Lessor. 16. COMPLIANCE WITH LAW: Lessee shall, at his sole cost and expense, comply with all of the requirements of all municipal, state and federal authorities now inforce, or which may hereafter be in - force, pertaining to said premises, and shall faithfully observe in the use of the premises all municipal ordinances and state and federal statutes now in force or which may hereafter be in force. The judgment of any court of competent jurisdiction, or the admis- sion of Lessee in any action or proceeding against Lessee, whether Lessor be a party thereto or not, that Lessee has violated any such ordinance or statute in the use of the premises shall be conclusive of that fact as between Lessor and Lessee. 17. OWNER TO BE HELD HARMLESS: Lessee, as a material part of the consideration to be rendered to Lessor, hereby waives all claims against Lessor for damages to goods, wares and merchandise, in said premises and for injuries to Lessee, his agents, or third persons in said premises from any cause arising at any time, and Lessee will hold Lessor exempt and harmless from any damage or injury to any person, or to the goods, wares and merchandise of any person, arising from the use of the premises by Lessee, or from the failure of Lessee to keep the premises in good condition and repair, as herein provided, except for harm or damage which is the result of Lessor's sole negligence. 18. NONLIABILITY OF OWNER FOR DAMAGES: This lease is made upon the express condition that Lessor is to be free from all liability and claim for damages by reason of any injury to any person or persons, including Lessee, or property of any kind what- soever and to whomsoever it may belong, including Lessee, from any cause or causes.whatsoever in any way connected with the said de- -6- missed premises during the terms of this lease, or any extension thereof or -any occupancy hereunder, Lessee hereby covenanting and agreeing to indemnify and save harmless Lessor from all liability, loss, cost and obligations on account of or arising out of any such injuries or losses however occurring. 19. INSURANCE INDEMNITY: (a) Liability Insurance - Lesssee. Lessee shall, at Lessee's expense, obtain and keep in force during the term of this Lease a policy of Comprehensive General insurance utilizing an Insurance Service Office standard form with Broad Form General Liability Endorsement (GL0404), or equivalent, in an amount of not less than $1,000,000 per occurrence of bodily injury and property damage com- bined or in a greater amount as reasonably determined by Lessor and shall insure Lessee with Lessor as an additional insured against liability arising out of the use, occupancy or maintenance of the premises. Compliance with the above requirement shall not, however, limit the liability of Lessee hereunder. (b) Liability Insurance - Lessor. Lessor shall obtain and keep in force during the term of this Lease a policy of Combined Single Limit Bodily Injury and Broad Form Property Damage Insurance, plus coverage against such other risks Lessor deems advisable from time to time, insuring Lessor, but not Lessee, against liability arising out of the ownership, use, occupancy or maintenance of the office Building Project in an amount not less than $5,000,000,00 per occurrence. (.c) Property insurance - Lessee. Lessee shall, at Lessee's expense, obtain and keep in force during the term of this Lease for the benefit of Lessee, replacement cost fire and extended coverage insurance, with vandalism and malicious mischief, sprinkler leakage and earthquake sprinkler leakage endorsements, in 4n amount sufficient to cover not less than 100% of the -full replacement cost, as the same may exist from time to time, of all of Lessee's per- sonal property, fixtures, equipment and tenant improvements. (d) Property Insurance - Lessor. Lessor shall obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to the Office Building Project -7- improvements, but not Lessee's personal property, fixtures, equip- ment or tenant improvement, in the amount of the full replacement cost thereof, as the same may exist from time to time, utilizing Insurance Services Office standard form, or equivalent, providing protection against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, plate glass, and such other perils as Lessor deems advisable or may be required by a lender having a lien on the Office Building Project. In addition, Lessor shall obtain and keep in force, during the term of this Lease, a policy of rental value insurance covering a period of one year, with loss payable to Lessor, which insurance shall also cover all Operating Expenses for said period. Lessee will not be named in any such policies carried by Lessor and shall have no right to any proceeds therefrom. The policies required by these paragraphs b and d shall contain such deductibles as Lessor or the aforesaid lender may determine. In the event that the premises shall suffer an insured loss which shall mean damage or destruction which was caused by an event required to be covered by the insurance des- cribed in this paragraph. The fact that an Insurance Loss has a de- ductible amount shall not make the loss an uninsured loss, the deductible amounts under the applicable insurance policies shall be deemed an Operating Expense. Lessee shall not do or permit to be done anything which shall -invalidate the insurance policies carried by Lessor. Lessee shall pay the entirety of any increase in the property insurance premium for the Office Building Project over what it was immediately prior to the commencement of the term of this Lease if the increase is specified by Lessor's insurance carrier as being caused by the nature of Lessee's occu- pancy or any act or omission of Lessee. (e) Insurance Policies. Lessee shall deliver to Lessor copies of liability insurance policies required under paragraph 19(a) or certificate evidencing the existence and amounts of such insurance within seven (7) days after the Commencement Date of this Lease. No such policy shall be cancellable or subject to 're- duction of coverage or other modification except after thirty (30) days prior written notice to Lessor. Lessee shall, at least thirty -8- (30) days prior to the expiration of such policies, furnish Lessor with renewals thereof. (f) Waiver of Subrogation. Lessee and Lessor each hereby release and relieve the other, and waive their entire right of recovery against the other, for direct or consequential loss or damage arising out of or incident to the perils covered by pro- perty insurance carried by such party, whether due to the negli- gence of Lessor or Lessee or their agents, employees, contractors and/or invitees. If necessary all property insurance policies re- quired under this lease shall be endorsed to so provide. (g) Indemnity. Lessee shall indemnify and hold harmless Lessor and its agents, Lessor's master or ground lessor, partners and lenders from and against any and all claims for damage to the person or property of anyone or any entity arising from Lessee's use of the Office Building Project, or from the conduct of Lessee's business or from any activity, work or -things ' done, permitted or suffered by Lessee in or about the Premises or elsewhere and shall further indemnify and hold harmless Lessor from and against any and all claims, costs and expenses arising from any breach or default in the performance of any obligation on Leessee's part to be performed under the terms of the Lease, or arising from any act or omission of Lessee, or any Lessee's agents, contractors, employees, or invitees, and from and against all costs, attorney's fees, expenses and liabilities incurred by Lessor as the result of any such use, conduct, activity, work, things done, permitted or suffered, breach, default or negligence, and in dealing reasonably therewith, including but not limited to the defense or pursuit of any claim or any action or proceeding involved therein; and in case any action:or proceeding be brought against Lessor by reason of any such matter, Lessee upon notice from Lessor shall defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be so indemnified. Lessee, as material part of the consideration to Lessor, hereby assumes all risk of damage to property of Lessee or injury to persons, in, upon or about -9- the Office Building Project arising from any cause and Lessee hereby waives all claims in respect thereof against Lessor. (h) Exemption of Lessor from Liability. Lessee hereby agrees that Lessor shall not be liable for injury to Lessee's business or any loss of income therefrom or for loss of or damage to the goods, wares, merchandise or other property of Lessee, Lessee's employees, invitees, customers or any other person in or about the premises of the Office Building Project, nor shall Lessor be liable for injury to the person of Lessee. Lessee's employees, agents or contractors, whether such damage or injury is caused by or results from theft, fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said damage or injury results from conditions arising upon the premises or upon other Conditions of the Office Building Project, or from other sources or places, or from new construction or the repair, alteration or improvement of any part of the Office Building Project, or of the equipment, fixtures or appurtenances applicable thereto, and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible, Lessor shall not be liable for any damages arising from any act or neglect of any other lessee, occupant or user of the Office Building Project, nor from the failure of Lessor to enforce the provisions of any other lease of any other lessee of the Office Building Project. (i) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified in this paragraph 19 are adequate to cover Lessee's pro- perty or obligations under this Lease. 20. ENTRY BY OWNER: Lessee shall permit Lessor and his agents to enter into and upon said premises at all reasonable times for the purpose of inspecting the same or for the purpose of main- taining the building in which said premises are situated, or for the purpose of making alterations, repairs, or additions to any other portion of said building, including the erection and main- -10- tenance of such scaffolding, canopies, fencesr and props as may be required, or for the purpose of placing upon the property in whieh the said premises are located any usual or ordinary "for sale". signs, without any rebate of rent and without any liability to Lessee for any loss of occupation or quiet enjoyment of the premises thereby occasion, unless such entry deprives Lessee of the use of some part of the demised premises for which rent will abate to the amount of such deprivation, and shall permit Lessor, at any time within ninety days prior to the expiration of this Lease, to place upon said premises any usual and ordinary "to let" or "to lease" signs. 21. DESTRUCTION OF PREMISES: In the event of a partial ae- struction of the said premises during the said term, from any un- insured against cause, Lessor shall forthwith repair the same, provided such repairs can be made within ninety days under the laws and regulations of state, federal, county, or municipal authorities, but such partial destruction shall in no way annul or void this lease, except that Lessee shall be entitled to a pro- portionate reduction of rent while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried,on by Lessee in the said premises. If such repairs cannot be made in ninety days, Lessor may, at his option, make same within a reasonable time, but not to exceed an additional ninety days, this lease continuing in full force and effect and the rent to be proportionately rebated as aforesaid in this paragraph provided. In the event that Lessor does not so elect to make such repairs which cannot be made in ninety days, or such repairs cannot be made under such laws and regulations, this Lease may be terminated at the option of either party. In respect to any partial destruction which Lessor is obligated to repair or may elect to repair under the terms of this paragraph, the provisions of Section 1932, Subdivisions 2, and of Section 1933, Subdivision 4, of the Civil Code of the State of California are waived by Lessee. In the event that the building in which the demised premises are situated be destroyed to the extent of not less than fifty per -11- cent of the replacement cost thereof, Lessor may elect to terminate this lease, whether.the demised premises be injured or not. A total destruction of the building in which the said premises may be situated shall terminate this lease. 22. ASSIGNMENT OR SUBLETTING: Lessee shall not assign this lease, or.an interest therein, and shall not sublet the said premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person (the agents and servants of Lessee excepted) to occupy or use the said premises, or any portion therof, without the written consent of Lessor first had and obtained, which consent shall not be unreasonably withheld, and a consent to one assignment, subletting, occupation, or use by another person shall not be deemed to be a consent to any subsequent assignment, sub- letting, occupation, or use by another person. Any such assignment or subletting without such written consent shall be void, and shall, at the option of Lessor, terminate this Lease. This Lease shall not, nor shall any interest therein, be assignable, as to the.interest of Lessee, by operation of law, without the written consent of Lessor. 23. INSOLVENCY, RECEIVER: Either (a) the appointment of a receiver to take possession of all or substantially all of the assets of Lessee, or (b) a general assignment by Lessee for the benefit of creditors, or (c) any action taken or suffered by Lessee under any insolvency or bankruptcy act shall constitute a breach of this Lease by Lessee. 24. REMEDIES OF OWNER ON DEFAULT: In the event of any breach of this Lease by Lessee, then Lessor besides other rights or re- medies he may have, shall have the immediate right of re-entry and may remove all persons and property from the premises; such property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account of Lessee. Should Lessor elect to rem. enter, as herein provided, or should he take possession pursuant to legal proceedings or pursuant to any notice provided by law, he may either terminate this- Lease or he may from time to time without terminating this Lease, re -let said premises or any part thereof for such term. -or terms (which may be for a term extending beyond the term"of this Lease) and at such reasonable rental or rentals -12- and upon such other terms and conditions as Lessor in his sole discretion may deem advisable with the right to make reasonable alterations and repairs to said premises; upon such re -letting (a) Lessee shall be immediately liable to pay -to Lessor, in addi- tion to any indebtedness other than rent due hereunder, the cost and expenses of such reasonable re -letting and of such reasonable alterations and repairs, incurred by Lessor, and the amount, if any, by which the rent reserved in this Lease for the period of such re -letting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the demised pre- mises for such period on such re -letting; or (b) at the option of Lessor rents received by such Lessor from such re -letting shall be applied: first, to the payment of any indebtedness, other than rent due hereunder from Lessee to Lessor; second, to the pay - went of any costs and expenses of such re -letting and of such alterations and repairs; third, to the payment of rent due and un- paid hereunder and the residue, if any, shall be held by Lessor and applied in payment of future rent as the same may become due and payable hereunder. If Lessee has been credited with any rent to be received by such re -letting under option (a), and such rent shall not be promptly paid to Lessor by the new tenant, or if such rentals received from such re -letting under option (b) during any .month be less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to Lessor. Such. deficiency shall be calculated and paid monthly. No such re-entry or taking possession of said premises by Lessor shall be construed as an election on his part to terminate this lease unless a written notice of such intention be given to Lessee, or unless the termina- tion thereof be decreed by a court of competent jurisdiction. Notwithstanding any such re -letting without termination, Lessor may at any time thereafter, elect to terminate this Lease for such previous breach. Should Lessor at any time terminate this Lease for any breach, in addition to any other remedy he may have, he may recover from Lessee all damages he may incur by reason of such breach, including the cost of recovering the premises, and including the worth at the time of such termination of the excess, if any, -13- of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then - reasonable rental value of the premises for the remainder of the stated terms, all of which amounts shall be immediately due and payable from.Lessee to Lessor. 25. NOTICES: Any and all notices or demands by or from Lessor to Lessee or Lessee to Lessor shall be in writing. They shall be served either personally or by registered mail. If served personally, service shall be conclusively. deemed made at the time of service. if served by registered mail, service shall be con- clusively deemed made forty-eight (48) hours after the deposit thereof in the United States mail, postage prepaid, addressed to the party to whom_ such notice or demand is to be given, as here- inafter provided, and the issuance of the registry receipt therefor. Any notice or demand to Lessor may be given unto him at WILLIS J. CLEMONS 1026 River Lane Santa Ana, California Any notice or demand to Lessee may be given unto him at 26. ATTORNEY'S FEES: In the event of the bringing of any action by either party hereto as against the other hereon or here- under, or by reason of the breach of any covenant or condition on the part of the other -party, or arising out of this Lease, then and in that event the party in whose favor final judgment shall be entered be entitled to have and recover of and from the other reasonable attorney's fees to be fixed by the court wherein such judgment shall be entered. 27. WAIVER: The waiver by Lessor of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or any subsequent breach of the same or any other term, covenant, or condition herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant, or condition of this Lease, other than the failure of Lessee to pay the particular rental so -14- accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. 28. HOLDING OVER: Any holding over after the expiration of the said term, with the consent of Lessor, shall be construed to be a tenancy from month to month, at a rental then paid by Lessee, and shall otherwise be on the terms and conditions herein specified, so far as applicable. 29. BINDING AND SUCCESSORS: The covenant and conditions herein contained shall, subject to the provisions as to assignment apply to and bind the heirs, successors, executors, administrators, and assigns of all of the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. 30. CONDEMNATION CLAUSE: If any part of the premises shall be taken or condemned for a public or quasi -public use, and a part thereof remains which is susceptible of occupation hereunder, this Lease shall, as to the part so taken, terminate as of the date title shall vest in the condemnor, and the rent payable hereunder shall be adjusted so that the Lessee shall be required to pay for the remainder of the term only such portion of such rent as the value of the part remaining after the condemnation; but in such event Lessor shall have the option to terminate this Lease as of the date when title to the part so condemned vests in the con- demnor. If all the demised premises, or such part thereof be taken or condemned so that there does not remain a portion sus- ceptible fo'r occupancy hereunder, this Lease shall thereupon terminate. If a part or all of the demised premises be taken or condemned, all compensation awarded upon such condemnation or taking shall go to the Lessor and the Lessee shall have no claim thereto, and the Lessee hereby irrovacably assigns and transfers to the Lessor any right to compensation or damages to which the Lessee may become entitled during the terms hereof by reason of the condemnation of all, or a part of the demised premises. 31. TIME is the essence of this Lease. 32. REMEDIES: In the event ofany-materialdefault or breach of this Lease by Lessee, Lessor may at any time thereafter, with or without notice or demand and without limiting Lessor in the -15- exercise of any right or remedy which Lessor may have by reason of such default: (a) Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease and the term hereof shall terminate and Lessee shall immediately surrender, possession of the premises to Lessor, in such event Lessor.shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default including, but not limited to, the cost of re- covering possession of the premises; expenses of re -letting, in- cluding necessary renovation and alteration of the premises, rea- sonable attorneys' fees, and any real estate commission actually paid; the worth at the time of award by the court having jurisdic- tion thereof of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessee proves could be reason- ably avoided; that portion of the leasing commission paid by Lessor applicable to the unexpired term of this Lease. (b) Maintain Lessee's right to possession in which case this Lease shall continue in effect whether or not Lessee shall have, vacated or abandoned the premises. In such event Lessor shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder. (c) Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the state wherein the premises are located. Unpaid installments of rent and other unpaid monetary obligations of Lessee under the terms of this Lease.shall bear interest from the date due at the maximum rate then allowable by law. 33. SEVERABILITY: The invalidity of any provision of this Lease as determined by a court of competent jurisdiction shall in no way affect the validity of any other provision hereof. 34. DELAY IN POSSESSION: Lessee has been informed by Lessor that 1415 South Broadway, Santa Ana, California is now occupied by tenant on an oral month -to -month tenancy and a thirty (30) day notice to vacate is being served on said tenant immediately. Not -16- withstanding commencement date, if for any reason Lessor cannot deliver possession to Lessee of 1415 South Broadway, Santa Ana, California, Lessor will deliver possession of 1417 South Broadway, Santa Ana, California on the commencement date. Failure of Lessor to deliver to Lessee possession of 1415 South Broadway, Santa Ana, California shall not subject Lessor to any liability therefor nor shall such failure effect the validity of this Lease or the obligation of Lessee hereunder or extend the term hereof; but in such case Lessee shall not be obligated to pay rent for the space designated as 1415 South Broadway, Santa Ana, California, until possession of said premises is tendered to Lessee. Rent will be pro -rated from the date the Lessee is entitled to possession of said premises and until the possession of said premises is tendered to Lessee. 35. SELF INSURANCE PROVISION: Notwithstanding Section 19 INSURANCE INDEMNITY hereinabove, public liability and property damage insurance need not be obtained by Lessee if Lessee elects, at its option, to be self insured as to all or a portion of the coverage limits set forth in said Section. LESSOR: S.T.C. CORPORATION By: Willis J.,C mons Secretary By: LESSEE: CITY OF SANTA ANA, a APPROVED -" AS/T "CONTENy.T- municipal corporation B City M ag t Daniel H. Yououn M or APPROVED AS TO FORM: w a� . Coop r, City — Attorney — ATTEST: By: /anice C. Guy, CXerk,­0y'the Council -17- RCA TER 20 CM ,,!�TOJ`'AC7L /4 `X / O' NC-r S(7� VAUL+ 61eEAK Boom REST zi,x it? EXHIBIT "A" VJ D EO 20 otyl rsr- Ix IZ'C S,m �tqK Scrcee� .ST�q C, GC�ss • - ' z���T� vafi� � � o � N N ON FspaickE C. SN revo11 Ew '�o a Qv1 • ��o M t C ��iJ � ,