Loading...
HomeMy WebLinkAboutLease Agreement LEASE AGREEMENT THIS LEASE, executed in duplicate at.&c, 6nA.tt.Ze , California, this cd day of __, 19E3, by and between CALIFORNIA HISTORIC PROPERTIES-80 hereinafter called "Lessor," and • Group W, Cable Inc. , hereinafter called "Lessee," without regard to • number or gender, W I T N E S S E T H: That for and in consideration of the payment of the rents and the performance of the covenants contained herein on the part of the Lessee, and in the manner hereinafter stated, the Lessor does hereby demise, lease and let to the Lessee, and in consideration of the premises, the Lessee does hereby lease, hire and take from the Lessor, upon the terms and conditions hereinafter set forth, that certain real property and its appurtenances, situate in the County of Orange , State of California, and more particularly as follows: Old City Hall 201 Eighth Street Seal Beach, California The terms, conditions and covenants of this Lease shall be as follows: 1. TERM OF LEASE. The term of this Lease shall be for a •period of /,_ Thirteen (13) years and shall commence on the 1st day of /41,.r March , 198 4 and shall terminate Thirteen years i thereafter. 2. RENT. Lessee agrees to and shall pay to Lessor at 1028 Second St., Sacramento, CA 958t4 or at such other place as Lessor shall from time to time in writing designate as rent for the leased premises in lawful money of the United States, without any deduction or offset whatever and free from any and all claims and demands against said Lessor of any kind or character, the total sum of $1,327,775.28 payable in equal mdnthly installments of $8,511.38 • plus tripple net lease items as more particularly set forth in paragraph 45 herein. Each in advance on the first day of each calendar month after commencement of the term hereof. The first such payment shall be due and payable on the commencement date of this Lease prorated to the first day of the next succeeding calendar month, and full rental payments shall thereafter be made as herein provided until said total rent shall be paid. 3. USES AND USES PROHIBITED. Said premises to be used to house the operations of Group W, Westinghouse, including cable franchise operation, offices, production studio, repair facility and equipment storage. No use shall be made or permitted to be made of the said premises nor acts done, 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 complex in which the demised may be located, nor shall Lessee sell, or permit to be kept, used, or sold, in or about said premises, any (1) article which may be prohibited by the standard form of fire nsurance policies. Lessee shall not conduct nor permit to be conducted any sale by auction on said premises. Lessee shall, at his sole cost and expense, comply with any and all requirements, pertaining to said premises of any insurance organization or company, necessary for the maintenance of reasonable fire and public liability insurance, covering said building and appurtenances. 4. DELIVERY OF POSSESSION. If Lessor, for any reason whatsoever, cannot deliver possession of said premises to Lessee at the commencement of said term, as hereinbefore specified, the Lease shall not be void or voidable, nor shall Lessor be liable to Lessee for any loss or damage resulting therefrom; but in that event, there shall be a proportionate deduction of rent covering the period between the commencement of the said term and the time when Lessor can deliver possession. The term of this Lease shall be extended by such delay. 5. WASTE AND ALTERATION. Lessee shall not commit, or suffer to be committed, any waste upon the said permises, or any nuisance, or other act or thing which may disturb the quiet enjoyment of any other tenant in the building or complex in which the demised premises may be located. However, it is acknowledged that Lessee's business shall include retail sales and the same shall not be deemed objectionable. Lessee shall not make, or suffer to be made, any alterations of the leased premises or any part thereof without the written consent of Lessor first had and obtained, which consent shall not be unreasonably withheld. 6. ABANDONMENT. 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 dispossessed by process of law, or otherwise, any personal property 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. 7. MAINTENANCE AND REPAIRS. Lessee shall, at his sole cost, keep and maintain said premises (excluding exterior walls, roofs and all mechanical, including heating and air conditioning, electrical, and plumbing which Lessor agrees to repair) in good and sanitary order, condition and repair, hereby waiving all right to make repairs at the expense of Lessor as provided in Section 1942 of the Civil Code of the State of California, and all rights provided for by Section 1942 of the Civil Code. By entry hereunder, Lessee accepts the premises as being in good and sanitary order, condition and repair and agrees on the last day of said term or sooner termination of this Lease to surrender unto Lessor all the singular said premises with said appurtenances in the same condition as when received, reasonable use and wear thereof and damage by fire, act of God or by the elements excepted. (2) • 8. LIENS. 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, materials furnished or obligations incurred by Lessee. 9. . LEGAL COMPLIANCE. Lessee shall, at his sole cost and expense, comply with all of the requirements of all Municipal, State and Federal authorities now in force, or which may hereafter be in force, pertaining to the said permises, 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 admission 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. 10. WAIVER OF CLAIMS AND HOLD 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, upon or about said premises and for injuries to persons in or about said premises, from any cause other than negligence of Lessor or his agents, 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, other than caused by Lessor's negligence. 11. SIGNS. Lessee shall not place or permit to be placed any sign, marquee, awning or advertisement on any part of the outside or inside of the demised premises, including the roof, or any free-standing sign *which consent on or about the demised premises, without the written consent of shall not be x unreasonably Lessor; Lessee, upon request of Lessor, shall immediately remove any withheld. sign or decoration which Lessee has placed or permitted to be placed in, on, or about the inside, outside, or roof of the premises and which, in the sole opinion of Lessor, is objectionable or offensive for any reason whatsoever, and if Lessee fails so to do, Lessor may enter upon said premises and remove the same. • .,OR %t rSsEE • • (3) 12. TAXES. Lessee shall pay to Lessor, that percentage of the total •• Municipal, State or County real estate taxes (including the amount of any general or special taxes, assessments, levies, or charges made by any Municipal or Political Subdivision for local improvements), assessments, levies or charges upon the whole of the land and improvements upon and within which the leased premises are situate, as the square footage of the leased premises bears to the net rentable square fbotage of the whole of the building within which the lease premises are situate. For the purposes of this paragraph, it is agreed that said percentage shall be eighty-six percent 06%). Lessee shall pay to Lessor monthly, an amount estimated to be 1/12 of said annual amount. 13. - INSPECTION OF PREMISES. 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 maintaining the building in which said premises are situated; or for the purpose of making repairs, alterations or additions to any other portion of said building, including the erection and maintenance of such scaffolding, canopies, fences and propes as may be required; or for the purpose of posting notices of nonresponsibility for alterations, additions, or repairs, or for the purpose of placing upon the property in which the said premises are located any unusual 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 occasioned; and shall permit Lessor, at any time within thirty (30) days prior to the expiration of this Lease, to place upon said premises any usual or ordinary "to let" or "to lease" signs. 14. INSURANCE. Lessee shall carry and pay for a policy of public liability and property damage insurance in the amount of $500,000.00 combined single limit. Said policy of insurance shall name Lessor as insured thereunder and the Lessee shall furnish Lessor with a copy of said policy and a Certificate of Insurance indicating such coverage and that such coverage shall not be cancelled without thirty (30) days prior written notice to Lessor. In the event Lessee shall fail to furnish said policy and pay the premium due thereunder, Lessor may pay same for the account of Lessee and Lessee shall be liable to Lessor therefore. Lessor shall carry fire and extended coverage insurance on the building, naming Lessor as the loss payee and Lessee shall carry insurance on its personal property contained in the leased premises at its own cost and expense, with Lessee being named as sole Loss payee. (4) • 15. PARTIAL DESTRUCTION. After written notice to Lessor of partial • destruction of the premises during the said term, from any cause, Lessor shall forthwith repair the same, provided such repairs can be made within sixty (60) days under the laws and regulation of State, Federal, County or Municipal authorities, but such partial destruction shall in no ways annul or void this Lease, except that Lessee shall be entitled to a proportionate 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 sixty (60) days, Lessor may, at his option, make same within a reasonable time, 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 sixty (60) days, or such repairs cannot be made under such laws and regulations, this Lease may be terminated at the option of either party. With 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, Subdivision 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 or complex in which the demised premises may be situated may be destroyed to the extent of not less than thirty-three and one-third percent (33 1/3%) 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. In the event of any dispute between Lessor and Lessee relative to the provisions of this paragraph, they shall each select an arbitrator, the two arbitrators so selected shall select a third arbitrator, and the three arbitrators so selected shall hear and determine the controversy and their decision thereon shall be final and binding upon both Lessor and Lessee, who shall bear the cost of such arbitration equally between them. 16. CONDEMNATION. a. If title to all of the premises is taken for.any public or quasi- public use under any statute or by right of eminent domain or by private purchase in lieu of eminent domain, or if title to so much of the premises is so taken that a reasonable amount of reconstruction of the premises will not result in the premises being a practical improvement . and reasonably suitable for tenant's continued occupancy for the uses and purposes for which the premises are leased, then in either event this Lease shall terminate on the date that possession of the premises or part of the premises is taken. (5) b. If any part of the premises shall be so taken and the remaining part thereof (after reconstruction of the then existing building in which the premises are located) is reasonably suitable for Lessee's continued occupancy for the purposes and uses for which the premises are leased, this Lease shall terminate as to the part so taken as of the date that possession of such part is taken, and the fixed rent shall be reduced in the same proportion that the floor area of the portion of the premises so taken (less any additions to premises by reconstruction) bears to the original floor area of the premises. Lessor shall, at its own cost and expense, make all necessary repairs or alterations to the building in which the premises are located so as to constitute the portion of the building not taken as a complete architectural unit and the remaining premises as a complete merchandising unit. There shall be no abatement of rent during such restorations except as to the extent otherwise provided in Paragraph 16. c. All compensation awarded or paid upon a total or partial taking of the fee title of the premises shall belong to Lessor whether such compensation be awarded or paid as compensation for diminution in value of the leasehold or of the fee; provided, however, that Lessor shall not be entitled to any award made to Lessee for loss of business or depreciation to and cost of removal of stock and fixtures. d. Each party agrees to execute and deliver to the other, all instruments that may be required to effectuate the provisions of this paragraph. 17. ASSIGNMENT AND SUBLETTING. Lessee shall not assign this Lease, or any interest therein, and shall not sublet the said premises or any part thereof, or any right or privilege apprutenant thereto, or suffer any other person (the agents and servants of Lessee excepted) to occupy or use the said premises, or any portion thereof, without the written consent of Lessor first had and obtained, and a consent to one assignment, subletting, occupation or use by any other person, shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Any such assignment, or subletting without such 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. Lessor may not unreasonably withhold his consent. No consent by Lessor to any assignment or subletting by Lessee shall relieve Lessee of any obligation to be performed by Lessee under the Lease, whether occurring before or after such consent, assignment, or subletting. • (6) 18. ACTS CONSTITUTING DEFAULT. Any and/or all of the following actions by Lessee shall constitute a default of this Lease: a. Use of the premises for any purpose other than as authorized in this Lease; or b. Default in the payment of rent as defined herein or any other within Cwritten notice from sums owing when due; rents not paid ry +he `nn In o+0 ea ramp th ter Lessor has been given onstitute a default of this lease; or to Lessee: c. Abandonment or vacation of Lessee from the premises; or d. Assignment of the premises by Lessee without the consent of p 4 Lessor; or e. The filing by Lessee or any other person of a voluntary or involuntary petition in bankruptcy or an arrangement by or against Lessee; the adjudication of Lessee as a bankrupt or insolvent; the appointment of a receiver of the business or of the assets of Lessee, except a receiver appointed at the instance or request of Lessor; the general or any other assignment by Lessee for the benefit of his creditors; or f. A default in the performance of any of the terms, covenants, and conditions herein contained; or g. The inability of Lessee to pay the rent herein specified or to perform any of the terms, covenants, or conditions herein by him to be kept or performed. 19. REMEDIES UPON DEFAULT. In the event of a default of this Lease, and in addition to all other rights and remedies Lessor may have at law, Lessor shall have the option to do any or all of the following: • a. Reentry: Immediately reenter and 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 reenter, as herein provided, or should he take possession pursuant to legal proceedings or pursuant to any notice provided for 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 from a term extending beyond the term of this Lease and at such rental or rentals and upon such other terms and conditions as Lessor in his sole discretion • may deem advisable with the right to make alterations and repairs to said premises; upon each such reletting (a) Lessee shall be immediately liable to pay to Lessor, in addition to any indebtedness other than rent due hereunder, the cost and expenses of such re-letting and of such 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 • (7) demised premises 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 payment of any costs and expenses of such re-letting and of such alterations and repair; third; to the payment of rent due and unpaid 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 by 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 reentry 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 termination 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, 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 term, all of which amounts shall be immediately due and payable from Lessee to Lessor. b. Collection of Rents: Collect by suit or otherwise each installment of rent or other sum as it becomes due hereunder, or to enforce, by suit or otherwise, any other term or provision hereof on the part of Lessee required to be kept or performed, it being specifically agreed that all unpaid installments of rent or other sums shall bear interest at the highest legal rate from the due date thereof until paid. c. Termination of Lease: Terminate this Lease, in which event Lessee agrees to immediately surrender possession of the premises, and to pay to Lessor, in addition to any other remedy Lessor may have, all damages Lessor may incur by reason of his default, including the cost of recovering the premises. (B) • d. Measure of Damages: The damages Lessor may recover include the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of aware (of shorter period) exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided. 20. REMOVAL OF PROPERTY ON DEFAULT. Lessee hereby irrevocably appoints Lessor, as agent and attorney-in-fact of Lessee, to enter upon the premises, in the event of default by Lessee in the payment of any rent herein reserved, or in the performance of any term, covenant, or condition herein contained to be kept or performed by Lessee, and to remove any and all furniture and personal property whatsoever situated upon the premises, and to place such property in storage for the account of and at the expense of Lessee. In the event that Lessee shall not pay the cost of storing any such property after the property has been stored for a period of thirty (30) days or more, Lessor may sell any or all of such property, at public or private sale, in such manner and at such times and places as Lessor may deem proper, without notice to Lessee or any demand upon Lessee for the payment of any part of such charges or the removal of any of such property, and shall • apply the proceeds of such sale first to the cost and expenses of such sale, including reasonable attorney's fees actually incurred; second, to the payment of the costs of or charges for storing any such property; third, to the payment of any other sums of money which may then or thereafter be due to the Lessor from Lessee under any of the terms hereof; and, fourth, the balance, if any, to Lessee. Lessee hereby waives all claim for damages that may be caused by Lessor's reentering and taking possession of the premises or removing and storing furniture' and property, as herein provided, and will save Lessor harmless from loss, costs, or damages occasioned thereby, and no such reentry shall be considered or construed to be a forcible entry as the same is defined in the Code of Civil Procedure of the State of California. 21. NO WAIVER OF BREACH. Lessor's failure to take advantage 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 therein 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 accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. (9) 22. SURRENDER OR CANCELLATION. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or subtenancies, or may, at the option of Lessor, operate as an assignment to him of any or all such subleases or subtenancies. 23. ATTORNEYS FEES. In case suit shall be brought by either party to enforce- the provisions of this Lease, the prevailing party shall be awarded a reasonable attorney's fee which shall be fixed by the Court. 24. APPOINTMENT OF RECEIVER. If a receiver be appointed at the instance of Lessor in any action against Lessee to take possession of said . premises and/or to collect the rents or profits derived therefrom, the receiver, may, if it be necessary or convenient in order to collect such rents and profits, conduct the business of Lessee then being carried on in said premises and may take possession of any personal property belonging to Lessee and used.in the conduct of such business, and may use the same in conducting such business in the premises without compensation to Lessee for such use. Neither the application for the appointment of such receiver, nor the appointment of such a receiver, shall be construed as an election on Lessor's part to • terminate this Lease unless a written notice of such intention is given to Lessee. 25. SALE BY LESSOR. In the event of a sale or conveyance by Lessor of the premises or any part containing the premises, Lessor shall be released from any future liability upon any of the covenants or conditions, expressed or implied, in favor of Lessee, and in such event, the Lessee agrees to look solely to the responsibility of the successor in interest of the Lessor in and to this Lease. If any security be given by Lessee to secure the faithful performance of all or any of the covenants of this Lease on the part of Lessee, Lessor may transfer and/or deliver the security, as such, to the purchaser of the reversion, in the event that the reversion be sold. Thereupon Lessor shall be discharged from any further liability in reference thereto. 26. SUBORDINATION. This lease shall be subject and subordinate at all times to the lien of any mortgage or mortgages or trust deed or trust deeds which may now exist upon or which may be placed upon the leased premises or the property of which the leased premises are a part by the Lessor, and Lessee agrees that he will execute and deliver to Lessor, to the nominee of Lessor, proper subordination agreements to this effect at any time upon the request of Lessor and without payment being made therefore. Lessor shall not at any time be obligated to subordinate in any manner in favor of or for the benefit of the Lessee. Provided, however, that every such mortgage or deed of trust shall contain a provision that neither the holder thereof nor any purchaser at a foreclosure sale shall deprive the Lessee of the use and possession of the demised premises, so long as the Lessee shall fully comply with all of the terms, covenants and provisions of this Lease. (10) 27. COVENANTS AND CONDITIONS. Each and every covenant and term hereof to be kept and performed by the Lessee is expressly made a condition, upon breach whereof said Lessor may terminate this Lease and exercise all rights of entry and reentry upon said leased premises, herein provided for, or any other rights provided herein or existing under the law. 28. SECURITY. It is further covenanted and agreed by said Lessee that nothing herein contained and no security lease deposit or guarantee which may not or hereafter be furnished said Lessor for the payment of the rent herein reserved or for the performance by said Lessee of the other terms or covenants of this Lease, shall in any way be a bar or defense to any action in unlawful detainer, or for the recovery of said premises, or in any action which said Lessor may at any time commence for breach of any of the terms or covenants of this Lease. 29. NUMBER AND GENDER. The word "lessor" and the word "lessee" as used. herein include the plural as well as the singular. The neuter gender where used here, shall include the masculine and feminine. 30. BINDING ON HEIRS AND SUCCESSORS. This Lease shall include and inure to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto, but nothing in this paragraph contained shall be construed to modify or impair in any manner of the provisions and restrictions of this Lease relating to the assignment of this Lease or any interest therein, or to the subletting or underletting of said leased premises or any part thereof. 31. CAPTIONS. The captions of paragraphs in this Lease are for reference only and are not to be construed in any way as a part of this Lease. 32. EXTENSIONS. All references to the term of this Lease shall include any extensions of such term. 33. PARTIAL INVALIDITY. If any term, covenant, condition or provision of this Lease, except any provision referring to Lessee's obligation to pay rent, is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected or impaired or invalidated thereby. 34. REMEDIES ARE CUMULATIVE AND NON-EXCLUSIVE. The specified remedies to which the parties hereto may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedy afforded by law. • (11) 35. ENTIRE AGREEMENT. This Lease contains the entire agreement between the parties relating thereto. All prior negotiations or stipulations concerning its matter which proceeded or accompanied the execution hereof are conclusively deemed to be superseded hereby, provided, however, that this Lease may in the future be altered by written agreement of the parties, but not otherwise. 36. PRESUMPTION THAT PREMISES ABANDONED. In the event that Lessee shall be absent from the leased premises for a period of twenty (20) days after default in payment of rent or other obligations imposed on him by this Lease, such absence shall be deemed to constitute an abandonment of Lessee's interest in the leased premises and an abandoment by him or any personal property left on the leased premises, and Lessor may thereupon reenter the premises as herein provided. 37. NOTICES. All notices and demands to Lessee provided for herein shall be deemed to have been served only when such notice in writing is personally served on Lessee orhas been deposited in the United States mail by registered or certified mail addressed to the Lessee at the demised premises or such other place as Lessee so advised Lessor in writing or if served in accordance with California Code of Civil Procedure Section 1162. All notices and demands to Lessor provided for herein shall be deemed to have been served only when such notice in writing is personally served on Lessor or has been delivered by registered or certified mail to Lessor at the address provided for the payment of rent to Lessor or at such other place as Lessor so advises Lessee in writing. 38. COST OF LIVING ADJUSTMENT. Effective on the first annual anniversary of the commencement of this Lease, and annually thereafter during the term of this Lease or any extension or renewal thereof, the minimum monthly rental shall be adjusted in accordance with the increases in the Consumer Price Index. Such adjustment will be limited to the actual increase in the Consumer Price Index or 6%, whichever is less. a. The index to be used is the "Consumer Price Index - United States - All Items," published by the Bureau of Labor Statistics, U.S. Department of Labor. b. The "base index number" shall be the index number for the month that this lease commences, and the "current index number" shall be the index number for the month that the rental shall be adjusted. c. The "current index number" divided by the "base index number" multiplied by the initial minimum monthly rental shall equal the adjusted minimum monthly rental. EXAMPLE: August 1976 (171.9) divided by August 1975 (162.8) equals 1.0558 multiplied by August 1975 rental of $200.00 equals August 1976 rental of $211.16 (12) 39. OPTION TO RENEW. Provided that Lessee is not otherwise in default, two - Lessee shall have the option to extend this lease for-an-additional periodsof five years upon the terms and conditions herein set forth; provided, however, that in order to exercise said option Lessee shall give Lessor not less than 180 (one hundred eighty) days written notice prior to the expiration of the lease term, or any L extension thereof. Lessee's failure to exercise any option hereunder 'i -P shall terminate its right to exercise any subsequent option. Lessee l'ES 7 and Lessor agree that the minimum base rental for each option 1 �//�1 extension period shall be not less than the current annual adjusted rental amount plus cost of living adjustments, as set forth hereinbefore, as calculated on the commencement of each option extension term. 40. RUBBISH DISPOSAL. Lessee shall provide sufficient rubbish disposal as may be required by Lessee. 41. HOLDING OVER. Any holding over after the expiration of said term shall be construed to be a tenancy from month to month, at a rental of not less than the monthly rental at commencement of month to month tenancy plus 10% (ten percent) and shall otherwise be on the terms and • conditions as herein specified, as far as applicable. 42. MAINTENANCE AND UTILITIES. Lessee shall pay for his own utilities and for his own janitorial service. 43. COMMON AREA MAINTENANCE AND UTILITIES. Lessor shall keep the common areas, in a neat, clean and orderly condition, properly lighted and landscaped, and shall repair any damage to the facilities thereof. Lessee shall pay to Lessor his pro-rata share of all expenses incurred thereby. For the purposes of this paragraph, it is agreed that Lessee's pro-rata share shall be eighty-six percent (86 %). The common areas are the outside sidewalks, common lobby areas, common hallways, any common bathrooms, elevators, courtyards and common access areas. 44. TIME IS OF THE ESSENCE. Time is of the essence of this Lease and of all the convenants, agreements, conditions and obligations herein contained. 45. DEFINITION OF RENT. It is understood and agreed by and between the parties that "monthly rent" as used herein shall be and shall include the total of 1) the monthly rental amount provided in Paragraph 2 including adjustments provided in Paragraph 38, 2) Lessee's share of . common area charges provided in Paragraph 43, and 3)-Lessee's share of taxes provided in Paragraph 12, which total shall be due and payable in advance as provided in Paragraph 2. Lessee shall pay Lessor specified estimated monthly costs for items No. 2) common area charges and 3) taxes along with the rental payment. Lessor will provide Lessee, semi-annually with copies of the tax bills and a statement of the common area costs for the period and Lessee shall pay Lessor thirty (30) days after the semi-annual billing the difference, if any, between the estimated costs that Lessee has paid and the actual costs of these items. The specified estimated monthly costs will be adjusted thereafter to more accurately reflect these costs. Any overpayment by Lessee between the estimated and ' the actual costs will Joe refunded to Lessee within thirty days after billing. ) 46. LESSEE'S WARRANTIES AND REPRESENTATIONS. Lessee warrants and represents that a) it is a duly organized corporation qualified and licensed to transact business in, and in good standing in, the State of California, and b) that the execution and delivery of this Lease by Lessee and consumation by Lessee of the transactions contemplated herein have been duly authorized.' The representations and warranties of Lessee contained herein shall survive the termination of this Lease., '4 47. GOVERNING LAW. This Lease shall be construed in accordance with, and governed by, the laws of the State of California. 48. TENANT IMPROVEMENTS. The rental amounts stated herein do not include the cost of tenant improvements necessary to render the premises suitable for Lessee's purposes. Lessee and Lessor have been and still are negotiating the cost, nature, and method of making such improvements. A separate agreement, if any, will be entered between Lessee and Lessor concerning said improvements and the allocation of the cost for same between Lessor and Lessee. Lessee and Lessor do understand and agree that any such agreements concerning tenant improvements must be reduced to writing and signed by both parties in order to be legally binding. 49. Lessor shall have completed items that are Lessor's Obligations as listed in Letter of Interest to Lease, signed by Lessee • on June 30, 1983, contained in paragraph J of said Letter of Interest to Lease, prior to Lessor delivering possession of the premises to Lessee as per paragraph No. 4 of the within lease. • LFSSE. • fI IN WITNESS WHEREOF, Lessor and Lessee have executed these presents the day . and year first above written. LESSOR C • LESSEE BY: 007 / i Ade /L�li—'r in CALIFORNIA HISTORIC PROPERTIES-80 GROUP W CABLE, INC: DATE: /O/3_43 DATE: _ APPROVED AND ACCE D: TITLE: DATE: City of Seal Beach 201 Eighth Street Seal Beach, California 90740