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HomeMy WebLinkAboutFIRST AMERICAN TRUST 1-1987iNSURANCE NOT REQUIRED WORK MAY PROCEED CLERK OE COUNCIL SIXTH AMENDMENT TO LEASE A-2003-217 THIS SIXTH AMENDMENT is and is intended to be part of that lease entered into on the 2oth day of April, 1987, by and between S.T.C. Corporation, a general partnership, and the CITY OF SANTA AN& a Municipal Corporation, Lessee. RECITALS: It is understood that on February 5, 1992 this property transferred owners by Grant Deed #92- 6900 from C & T Properties, a partnership, to WILLIS J. CLEMONS AND CLAYTON B. TILLOTSON, each an undivided one-half interest as Tenants in Common. And on February 5, 1992 by Grant Deed #92-069098, WILLIS J. CLEMONS, an undivided one-half interest as Tenant in Common transferred the property to FIRST AMERICAN TRUST COMPANY, Trustee of the Clemons Family Trust dated June 30, 1988. On May 16, 1997 the interest of Clayton B. Tillotson transferred to Dorothy E. Tillotson as surviving spouse, and on August 21, 1997, Dorothy E. Tillotson transferred the property to Dorothy E. Tillotson and William C. Tillotson, Trustees of the Dorothy E. Tillotson and William C. Tillotson, Trustees of the Dorothy E. Tillotson 1997 Inter Vivos Trust. The partieshereto agree: Lease Extention: The lease shall be extended for a period of two (2) years. Said period beginning May 1, 2003. 2. Exp_ iration Date: The expiration of the lease shall be April 30, 2005. Base Rent: From May 1, 2003, through April 30, 2004 the base rent will be $3329.96 monthly. (Current Base $3236.11 + $93.85 CPI Adjustment (April 2003) = $3329.96) Rental Increases: Changes in the base rent payable pursuant to paragraph 3 above shall be made on each anniversary date of the agreement, beginning in 2004. The rent shall be modified to reflect the change in the CPI using the April Los Angeles-Riverside-Orange County - All Urban Consumers index (1967=1oo). The increase amount will have a 7% cap with no floor. 5- Taxes: Lessor shall be responsible for the payment of the property taxes. 6. Insur~mce: Lessor shall be responsible for the payment of liability and property insurance. 7. Utilities: Lessor shall be responsible for the payment of all utilities. 8. Option To Extend Lease Term: If Lessee has fully and faittffully kept and performed all terms, covenants and conditions of the lease, Lessee shall have an option to extend the lease period for (1) year. Lessee shall provide Lessor with written notification of their decision to exercise the option to extend the lease period one hundred twenty 02o) days prior to the termination of the lease term. 9. Tes~ms and Conditions: All other terms and conditions contained in the original Lease dated April x,x987 shall remain the same xo. Lessee understands and agrees that Lessor is executing this agreement in its fiduciary capacity as Trustee, and not in it's individual or corporate capacity. "LESSEE" CITY OF SANTA ANA, a Municipal Corporation of the State of California "LESSOR" FIRST AMERICAN TRUST, FSB formerly known as FIRST AMERICAN TRUST COMPANY, In its fiduciary capacity as Tl~tee of the Willis J. Terri H arl~er~'~tt~~ Date: APPROVED AS TO FORM: Dorothy E. Tillotson, Trustee of the Dorothy E. Tillotson x997 Inter Vivos Trust l~ep~ty City"AttOrney - Dorothy e~illotson Doro~y E. ~o~on 1997, ~ter ~lVOS ~t Date: Page 2 of 2 LEASE EXTENSION A-2000-10 4 THIS LEASE EXTENSION is and is intended to be part of that lease entered into on the 20~ day of April, 1987, by and between S.T.C. Corporation, a general partnership, and the CtTY OF SANTA ANA, a Municipal Corporation, Lessee. RECITALS: It is understood that on February 5, 1992 this property transferred oxamers by Grant Deed #92-6900 from C & T Properties, a partnership, to WILLIS J. CLEMONS AND CLAYTON B. TILLOTSON, each an undivided one-half interest as Tenants in Common. And on Februa~] 5, 1992 by Grant Deed #92- 069098, WILLIS J. CLEMONS, an undivided one-half interest as Tenant in Common transferred the property to FIRST AMERICAN TRUST COMPANY, Trustee of the Clemons Family Trust dated June 30, 1988. On May 16, 1997 the interest o'f Clayton t3. Willotson transferred to Dorothy E. Tillotson as surviving spouse, and on August 21, 1997, Dorothy E. Tillotson'transferred the property to Dorothy E. Tillotson and William C. Tillotson, Trustees of the Dorothy E. Tillotson and William C. Tillotson, Trustees of the Dorothy E. Tillotson 1997 Inter Vivos Trust. The parties hereto agree: 1. Lease Extension: The lease shall be extended for a period of two (2) years. Said period beginning May 1, 2000. 2. Expiration Date: The expiration of the lease shall be April 30, 2002 'Base Rent: For May 1, 2000, through April 30, 2001 the base rent shall be $3029.73 (Current Base $2950.00 + $79.65 CPI Adjustment (April 2000) = $3029.73) 4. Rental Increases: The monthly base rental payable pursuant to Paragraph III above shall be calculated as follows: The base rent payable from the first month of the term of this amendment shall be multiplied by a fraction, the denominator of which shall be the C.P.I. for All Urban Consumers (1967= 100) Los Angeles- Riverside- Orange Co., of April 2000, and each anniversary date thereafter. The increase amount will have a 7% cap with no floor. The calculation for the adjustment shall be made utilizing standard practices for such adjustments as described by the American Industrial Real Estate Association~(&.q 5. Taxes: Lessor shall be responsible for the payment of the property taxes. 6. Insurance: Lessor shall be responsible for the payment of liability and property insurance. Utilities:. Lessor shall be responsible for the payment of all .utilities. Option To Extend Lease Term: If Lessee has fully and faithfully kept and performed all terms, covenants and conditions of the lease, Lessee shall have an option to extend the lease period of (1) year through April 30, 2003. Lessee shall pro'ride Lessor with written notification of their decision to exercise the option to extend the lease period one hundred twenty (120) days prior to the termination of the lease term. Terms and Conditions: All other terms and conditions contained in the original Lease dated April 1;1987 shall remain the same. "LESSEE" "LESSOR" CITY OF SANTA ANA, a Municipal Corporation of the State of California or, . / Clkrk, . Date: FIRST AMERICAN TRUST, fonuerly known as FIRST AMERICAN TRUST COMPANY, In its fiduciary capadty as Trustee of the Willis J. Clemons Family Trust Gail Dennis, Vice President Terri Haruer, Real Estate Officer Dorothy E. Tillotson, Trustee of the Dorothy E. Tillotson 1997 Inter Vivos Trust Dorothy C. Tillotson William C. Tillotson, Trustee of the Dorothy E, Tfllotson 1997, Inter Vivos Trust William C. Tillotson Date: Page 2 of 2 RENT ADJUSTMENT(S) STANDARD LEASE ADDENDUM By and Between (Lessor) r,.,~.., (Lessee) ci~ c~ san~. ~-~ Address of Premises: 14~ - 141'7 .q ~=rnw-%]~-.~ ~.~',1',~ z~=,~ c~ q77m Paragraph __ A. RENT ADJUSTMENTS: The monthly rent for each month of the adjustment period(s) specified below shall be increased using the method(s) indicated below: (Check Method(s) to be Used end Fill in Appropriately) 1. Cost of Living Adjustment(s) (COLA) a. On (Fill in COLA Dates): the Rase Rent shall be ad usted by the change if any, from the Rase Month specified below in the Consumer Price Index of the. Bureau Of Labor Statistics of the U.S. Department of Labor for (select one: F1CPI W (Urban Wage Earnem and Cledcal Workers) or.,,,J;~iCPI U (All Urban Consumers), for (Fill in Urban Area): T,.~ An-~l~,= - _~h_'~.., ,_:A=, _ ~ r-~ , All Items (1982-1984 = 100), herein referred to as "CPI" --' b. The monthly rent payable in accordance with paragraph A.l.a. of this Addendum shall be calculated as follows: the Rase Rent set forth in p.~rc~ ! .E _':f the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month tw~ .,,.,ht,~s prior to the month(s) specified in paragraph A.l.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 4we months prior to (select one): [Dthe first month of the term of this Lease as set forth in panagra~'' 3 f"Base Month") or~'[Fill in Other "Base Month")',' ,. , ~'1 . The sum so calculated shall constitute the new mort hly rent hereunder, but m no event, shall any such new monthl'~ren be less than th rent payable for the month immediately preceding the rent adjustment. c. In the event the compilation and/or publication of the CPi 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 CPI shall be used to.make such calculation. In the event that the Parties cannot agree on such alternative .index, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties. E] IL Market Rental Value Adjustment(s) (MRV) a. On (Fill in MRV Adjustment Date(s): the Base Rent shall be adjusted to the "Market Rental Value" of the property as follows: 1) Four months prior t, what the new MRV will be on the adjustment date. If agreement cannot be (a) Lessor and Lessee shall immediately appoint tvt~v within the next thirty days. Any asso(~iated costs will be split equally (b) Both Lessor and Lessee shall each i determination, in ' ' ti) Within fifteen ("Consultant"- check one) of their choice to act acceptable Consultant to act as a third arbitrator. as to what the actual MR of the arbitrators shall used by the Parties. appointed by one ( the Parties shall attempt to agree upon then: acceptable appraiser or broker to establish the new , or ' ma~ke a reasonable determination of the MRV and submit such Lessor and Lessee shall each select an [] appraiser or r-] broker two arbitrators so appointed shall immediately select a third mutually ird arbitrator reach a decision and whether Lessor's or Lessee's submitted MRV is the closest thereto. The decision of e majority submitted MRV which is determined to be the closest to the actual MRV shall thereafter be (iii) If either ol the Parties fails to appoint an arbitrator within the specified fifteen days, the arbitrator timely I reach a decision on his or her own, and said decision shall be binding on the Parties. (iv) The entire cost of such arbitration shall be paid by the party whose submitted MRV is not selected to the actual MRV. 2) Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the month immediately precedin! Initials: Initials: · RENT ADJUSTMENT(S) · Page I of 2 For this form, write: American Industrial Real Estate Association, 700 $. Flower Street, Suite 600, Los Angeles, Calif. 90017 ©1997-,American I~dustrial Real Estate Association b. Upon the eetabt[shment of each New Market Rental Value: / 1) the new MRV will become the new "Base Rent' for the purpose of calculating any further Adjustments, and 2) the first month of each Market Rental Value term shall become the new "Base Month" for the of calculating any further Adjustments. [3 Itl. Fixed Rental Ad)ustment(s) (FRA) The Base Rent shall be increased to the following amounts on the dates set forth below; On (Fill in FRA Adjustment Date(s)): The New Base Rent shali be: $ $ $ $ B. NOTICE: Untess specified otherwise herein, notice of any such adjustments, other than Rental Adjustments, shat[ be made as specified in paragraph 23 of the Lease. C. BROKER'S FEE: The Brokers specified in paragraph 1.10 shall be paid a Brokerage Fee for, in accordance with paragraph 15 of the Lease. initials: RENT ADJUSTMENT(S) Page 2 of 2 Initials:_ For this form, write: American.lndustria Real Estate Asaoclation, 700 S. Flower Street, Suite 600, Los Angeles,~ Calif. 90017 71997 ~ American Industrial Real Estate Association ~.~.~ " THIS FOURTH AMENDMENT is and is intended to be part of that lease (,) entered into on the 20th day of April, 1987, by and between S.T.C. (~ Corporation, a general partnership, and the CITY OF SANTA ANA, a municipal Corporation, Lessee. RECITALS: It is understood that on February 5, 1992 this property transferred owners by Grant Deed #92-6900 from C & T PROPERTIES, a partnership, to WILLIS J. CLEMONS AND CLAYTON B. TILLOTSON, each an undivided one-half interest as Tenants in Common. And on February 5, 1992 by Grant Deed #92-069098, WILLIS J. CLEMONS, an undivided one-half interest as Tenant in Common transferred the property to FIRST AMERICAN TRUST COMPANY, Trustee of The Clemons Family Trust dated June 30, 1988. On May 16, 1997 the interest of Clayton 8. Tillotson transferred to Dorothy E. Tillotson as surviving spouse and on August 21, 1997, Dorothy E. Tillotson transferred the property to Dorothy E. Tillotson and William C. Tillotson, Trustees of The Dorothy E. Tillotson 1997 Inter Vivos Trust. The parties hereto agree: LEASE EXTENSION: The Lease shall be extended for a period of three (3) years. Said period beginning May 1, 1997. II. EXPIRATION DATE: The expiration date of lease shall be April 30, 2000. III. BASE RENT: Commencing December 1, 1997 the base rental rate shall be $2,830. During the period beginning May 1, 1997 through November 30, 1997 the base rent shall be $3,207.42. IV. RENTAL INCREASES: The monthly base rent payable pursuant to Paragraph III above shall be calculated as follows: The base rent payable from the first month of the term of this amendment shall be multiplied by a fraction, the denominator of which shall be the C.P.I. of the calendar month during which the adjustment is to take effect, and the denominator of which shall be the C.P.I. of April, 1997 in which this amendment commences. The increase amount will have a 7% cap with no floor. Lessor shall b~e responsible for the payment of property taxes. VI. INSURANCE: Lessor shall be responsible for the payment of liability and property insurance. VII. UTILITIES: Lessor shall be responsible for the payment of all utilities. VIII. OPTION TO EXTEND LEASE TERM: If Lessee has fully and faithfully kept and performed all terms, covenants and conditions of the lease, Lessee shall have two (2) options to extend the lease for a period of one (1) year for each option period. Lessee shall provide Lessor with written notification of their decision to exercise the option to extend the lease one hundred twenty (120) days prior to the termination of the lease term. IX. TERMS AND CONDITIONS: All other terms and conditions contained in the original Lease dated April 1, 1987 shall remain the same. "LESSEE" "LESSOR" Date: Approved as to content APPROVED AS TO FORM LISA E. STORCK Deputy City Attorney FIRST AMERICAN TRUSTCOMPANY Trustee of the Willis J. Clemons Family Trust Richard C. Murray, Vice Presiderxt?~- Dorothy E. Tiilotson, Trustee of The Dorothy E. Tillotson 1997 Inter Vivos Trust 'Dorothy E.VTillotson ' Date: /- ~'- ?? William C. Tillotson, Trustee of The Dorothy E. Tillotson 1997 Inter Vivos Trust William C. Tillotson Date: ?- ~ -~ · INSURANCE NOT REI}UIRE' WORK BAY DATE: THIS THIRD A[IENDMENT is and is intended to be part of that lease entered into on the 20th day of April, 1987, by and between S.T.C Corporation, a 0eneral partnership, and the CITY OF SANTA ANA, a ~unicipal Corporation, Lessee. RECITALS: It is understood that on February 5, 1992 this propemty transferred owners by Grant Deed ~92-6900 from C & T PROPERTIES, a partnership, to WILLIS J. CLE~O~S AHD CLAYTON B. TILLOTSON, each an undivided one-half interest as Tenants in Common. And on February 5, 1992 by Grant Deed ~92-069098, WILLIS J. CLEHONS, an undivided one-half interest as Tenant in Common transferred the property to FIRST A£~ENICAN TRUST COMPAq]Y, Trustee of The Clemens Family Trust dated June 30, 1988. The parties hereto agree: I. LEASE EXT~ISION The Lease shall be extended for a period of five years. Said period beginning ~ay 1, 1992. I I. EXPII~TIO~4 DATE The expiration date shall be April 30, 1997. Ill. BASE RENT Commencing ~lay 1, 1992 the base rental rate shall be $2,900. IV. ~NTAL INCREASES 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 amendment shall be multiplied by a fraction, the numerator of which shall be the C.P.I. of the calendar month during which the adjustment is to take effect, and the denominator of which shall be the C.P.I. of April 1992 in which this amendment cor~mences. The increase a~nount will have a 6% cap with no floor. V. ADDITIO[IAL COSTS In addition to item IV above there will be a $160.00 per month charge for there reimbursement of the excess cost of power used. TER/4~ AND CONDITIOI~S All other terms and conditions herein remain the same. Approved as to Form: City Attorney Attest: ~C~eo? t~'~Ycounc i~/ "LESSEE" CITY OF SAI~TA A£~A, a Municipal Corporation of the State of California Approved a?~.~o nt e nt: City Ilanage r F~st Company Trustee of I~illis J. Clemons Fa~%ily Trust "LESSOR" Cl-a~t~n-B. Tillotson C;.~,**~ $' AMENDMENT TO LEASE THIS AGREEMENT, made and entered into this J~ day of 0~ , 1987, by and between THE CITY OF SANTA ANA, a municipal corporation of the State of California, hereinafter referred to as LESSEE, and~,~T;~; C~ATI(~, hereinafter referred to as LESSOR. Recitals: W-I-T-N-E-S-S-E-T-H LESSEE entered into a Lease Agreement dated April 20, 1987, with LESSOR by which LESSEE hired those certain premises, commonly known as 1415/1417 South Broadway, Santa Aha, California. B. The parties do now desire to amend said Lease Agreement to change the terms and conditions thereof. WHEREFORE, for and in consideration of their mutual covenants and promises set forth in the said Lease Agreement, and subject to all the terms, conditions, limitations and other provisions set forth herein, the parties hereto do agree as follows: 1. Paragraph 10, Section (c) of said Lease Agreement iS hereby amended to read: "10 (c). On the last day of the term hereof, or on any sooner terminations, LESSEE shall surrender the premises to LESSOR in the same conditions as received, ordinary wear and tear excepted, clean and free of debris, including but not limited to replacement of that portion of the interior of the building where doors were closed and walls added and where doors and walls were added and windows added to two walls as delineated on Exhibit "A." LESSEE shall also replace the overhang and block wall on the south side of the building unless otherwise requested by LESSOR in writing. The wall removed in the room containing 255 square feet, Training Office, and the partition removed in the room containing 500 square feet as shown on Exhibit "A" will not have to be replaced. LESSEE shall furnish Janitorial services. LESSOR shall pay LESSEE for carpet credit the sum of $8.00 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 practices by LESSEE. LESSEE shall repair any damage to the premises occasioned by the installation or removal of LESSEE's trade fixtures, alterations, furnishings and equipment. LESSEE shall leave the air lines, power panels, electrical distribution systems, lighting fixtures, air conditioning, window coverings, wall coverings, carpets, wall paneling, ceilings and plumbing on the premises in good operating condition." -2- Except as amended as set forth hereinabove, all of the provisions of the said Lease shall remain in full force and effect. ~ IN WITNESS WHEREOF, LESSOR and LESSEE have executed this Amendment to Lease Agreement the day and year first above written. ATTEST: APPROVED AS TO CONTENT: C~I~'UIA J./)~ELSO~, EXECUTIVE ~DIRECTOR APPROVED AS TO FORM: EDWAR~/~C C~R CITY CITY OF SANTA ANA, a Municipal Corporation of the State of California S.T.C. CORPORATION WILLIS J~. CLEMONS, SECRETARY "LESSOR" das to~cofltent ~-C ity Manager -3- EXHIBIT "A" ~ ~ c~D 14o ~ ?q4 \. 27'~ ]IV v' 6 z 1 15o~ /,Pc, 69 LEASE THIS LEASE made an~ entere~ into this ~7~day 1987 by an~ between S.T.C. Corporation, 1026 RAver Lane, California, 92706, hereinafter referre~ to as "Lessor"= SANTA ANA, a Municipal corporation, "Lessee": IT 1. IS AGREED BETWEEN the parties hereto as follows: DESCRIPTI.ON OF PREMISES: The Lessor hereby leases to conditions 1415/1417 in the City of Santa Ana, County of Orange, State be for five (5) 1992. Lessee, and Lessee hires from Lessor, on the terms and hereafter set forth, those certain premises located at South Broadway, of California. 2. TERM: The term of the within lease shall years commencing May 1, 1987 and ending April 30, 3. BASE RENT: Lessee shall pay to Lessor as rent for the premises, monthly payment of $2,355,00, in advance, on the 1st 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, 1987. 4. RENT INCREASE: Commencing on the let 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 then by the successor or most nearly thereto as agreed by the parties.) (or if there is no such index, comparable successor index 'The monthly Base Rent payable pursuant to paragraph 3 shall calculated as follows: the Base Rent payable for the first be month of the term of this Lease, as set forth in paragraph 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 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 60D 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 tions. In the event that LesSor and Lessee alternative index, then the matter shall be to make such calcula- cannot agree on such 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. ~essee shall continue to pay the rent at the in effect until the increase, if any, is (5) days following the date on which the Lessee shall make such payment to Lessor rental current, commencing with the effective date of through the date of any rental installments then due. the rental shall be paid at the increased rate. 5. ADJUStmENTS T0 ..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= Ail 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- v£ded and Lessor shall have all rights against Lessee for default in any such payment. Rent shall be paid to Lessor in advance, on the fLrst day of each calendar month, during the entire term of this lease, without deduction or set-off, in legal tender of the jurisdiction in which the Building is located at the ~ddress 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- rate previously determined. Within five increase is determined. as will bring the increased such increase Thereafter -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. 8. US~= 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 other reasonably related office-type 9. CONDITION OF PREMISES= (a) are hereby leased or any use. Lessor shall deliver the Premises to Lessee in a olean 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 goYerning 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. MA~ENANCE~ REPAIRS, .~LTE~ATIONS AND COMMON AREA 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 norp~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 Les'sot in writing. Lessor's Obligations= (b) Lessee shall athos expenses paint the interior and exterior of the building as necessary and to 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 replacement and the ~ of the Block fence on the south side of the build- ing unless otherwise requested by Lessor in writing. Lessor shall 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 $8.00 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 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, QU!.E_T...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.' ME.~HA~IC'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, end 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 oblige%ions 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 janitorial services. 115' AB~NDONMENT OFPREMIS~S. 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 9remises, or be dispossessed by process of law, or otherwise, any personal pro- perry 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 W~TH 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 fa&thfully 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. OWNE~ 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 fro'm 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. NONLIABI~IT,Y 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- misse~ 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 Lesseets 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 Lesseets 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 ~n 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 Les~ee~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 protectioD a. gainst 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 to any proceeds therefrom. b and d shall contain such carried by Lessor and shall have no right The policies required by these paragraphs deductibles as Lessor or the aforesaid lender may determine. In the event that the premises shall suffer an insured loss which ~hall mean damage or destruction which was caused by an event required to be covered by the insurance cribed in this paragraph. The fact that an Insurance Loss ductible amount shall not make the loss deductible amounts under the applicable be deemed an Operating Expense. Lessee be done anything which shall'invalidate 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 Commencemen~ Date of this Lease. No such policy shall be cancellable or sqbject to 're- duction of coverage or other modification except after thirty (30) days prior written notice to Lessor. Lessee shall, at least thirty des- has a de- an uninsured loss~ the insurance policies shall shall not do or permit to the insurance policies -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 aga.inst 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, permitte~ or suffere~ 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 breath 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, Lessor as the result of things done, permitted expenses and liabilities incurred by any such use, conduct, activity, work, 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 matterv Lessee upon n,otice 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 mater'ial part of the consi~%eration 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- petty 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 fo'r 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, fences, and props as may be required, or for the purpose of placing upon the property in which the said premises are located any usual or ordinary "for sale" signs, without any rebate of rent an~ 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 demise~ 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 de- struction of the said premises during the said term, from any un- insured against cause, Lessor shall forthwith repair the same, provide~ such repairs can be made within ninety days under the laws an~ 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 carrie~ on by Lessee in the said premises. If such repairs cannot be made in ninety Bays, 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 un,er 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 ~ 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 9er -11- cent of the replacement cost thereofv 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 DE.F.AULT= 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 re~ enter, as herein provided, or shoul~ he take possession pursuant to legal proceedings or pursuant to any notice provided by law, he may either te=minate this- Lease or he may from time to time without terminating this Lease, for such term ~or terms the term 'of this Lease) re-let said premises or a~y ~art thereof (which may be for a term extending beyond and at such reasonable rental or rentals -12- and upon such other terms and conditions as Lessor in his sole disoretion 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, ~f anyv 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- ment 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 hereunderv 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 h~s part to terminate this lease unless a written notige 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 ~uch 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 in this Lease for the and charges equivalent to rent reserved remainder of the stated term over the then- for the remainder of the be immediately due and from They reasonable rental value of the premises stated terms, all of which amounts shall payable from. Lessee to Lessor. 25. NOTICES~ Any and all notices or demands by or Lessor to Lessee or Lessee to Lessor shall be in writing. 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- elusively 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- issuance of the registry receipt therefor. given unto him at inafter provided, and the Any notice or demand to Lessor may be WILLIS J. CLEMONS 1026 River Lane Santa Aha, California Any notice or demand to Lessee may be given unto him at 26. ATTORNEY'S FEES: In the event action by either party hereto as against under, or by reason of the breach of any the part of the other.party, and in that event the party entered be entitled to have reasonable attorney's fees to of the bringing of any the other hereon or here- covenant or condition on or arising out of this Lease, then in whose favor final judgment shall be and recover of and from the other be fixed by the court wherein such 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 coDdition 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~ the said term, with the be a tenancy.from month Any ho'lding over after the expiration of co.nsent of Lessor, shall be construed to 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~ 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 the condemnation of all, or a part of 31. TIME is the essence of this terms hereof by reason of the demised premises. Lease. 32. REMEDIES: In the event ofany'material defadlt 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 Lesseets 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 d~mages 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 ungaid 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 inter.est from the d'ate 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 Les'sot 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 Aha, California, Lessor will deliver possession of 1417 South Broadway, Santa Aha, California on the commencement date. Failure of Lessor to deliver to Lessee possession of 1415 South Broadwayt 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: ~J~Q ~ ~ C~--~w~- Willis J. Clemons - Secretary By: APPROVED AS TO FORM: E-~[waTd~: ~r, City Attorney LESSEE: CITY OF SANTA ANA, a municipal corporation D~iel H. Y-oun~M~or ATTEST: ~an'ice C. Guy, C~r~the Council -17- II HE~ /~ 0 0 ~ EXHIBIT "A" ROO~X~ 2/'X lq f~oo~ IS"X I Z'~"