HomeMy WebLinkAbout4.09 Lease City Office Dublin Station 600so
CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 25, 1988
SUBJECT Lease of City Offices - Dublin Station
EXHIBITS ATTACHED o Letter. dated June 15 , 1988 from James Lange
o Proposed Lease dated July 1 , 1988
RECOMMENDATION Authorize the City Manager to execute the lease and
authorize a transfer from the Contingent Reserve in
the amount of $4, 350 to the Building Management Rental
Account .
FINANCIAL STATEMENT: Additional cost in 1988-89 will be $4 , 350 , provided
City is able to occupy new quarters in April of 1989 .
DESCRIPTION Since 1982 , the City has leased various offices within
the Dublin Station complex. As the City has acquired additional space ,
individual leases have been negotiated either with prior tenants , or
directly with :Ir . James Lange , who represents the partnership which owns the
building.
The adopted 1988-89 City budget was predicated upon the City ' s lease costs
remaining at . $1 . 15 per square foot . The City leases a total of 7 ,570 square
feet . In Mr. Lange ' s letter , he indicated an increase to $1 .20 per square
foot , effective July 1 , 1988. This represents a 4. 34% increase over the
Fiscal Year 1987-88 cost .
Staff has requested additional information on the basis for the increase .
'Pir. Lange indicated that the increase was primarily related to his increased
operating costs including: utilities , insurance , taxes and maintenance .
The City ' s lease includes utilities (excluding telephone ) , and 5 day per
week janitorial service . Therefore , the City does not directly pay for
electricity costs or janitorial services . The terms of the lease are on a
month-to-month tenancy. A historical review of the City ' s costs indicate
that the increase in lease costs have averaged aproximately 4.4 per year
since 1962 .
Staff would recommend that the City Council authorize the City Manager to
execute the lease and authorize a transfer from the Contingent Reserve in
the amount of $4 , 350 to the Building •ianagement Rental Account .
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/ COPIES TO: Jim Lange
ITEM NO. .�
IM LAN E
GENERAL CONTRACTOR
REAL ESTATE BROKER
® IIC.,}f 330108
June 15, 1988
JUN 11 1988
CITY OF DUBLIN
Mr. Paul S. Rankin, Administrative Assistant
City of Dublin
P. 0. Box 2340
Dublin, CA 94568
Re: Leased Office Space
Dear Mr. Rankin: 6500 Dublin Blvd.
We have analyzed our operating costs and consequently find that
they are increasing approximately 5% per year at this time. There-
fore, your rent for Suites 14`218, #100, 4101, f204, #205 and 6500 D,
will be increased from the present $8,716.00 per month, to $9,151.00
per month, commencing July 1, 1988.
If you have any further questions, please do not hesitate to contact
me.
Ver , my yours,
JEL:vrh .-es E. La
,1
6500 DUBLIN BOULEVARD, DUBLIN, CA 94568 [4151 828-6905
i
OFFICE BUILDING LEASE
July 1 19 RR ,is made by and
1. PARTIES. This Lease,dated,for reference purposes only,
! _ _,
between_JAMES-.F --LANCE,--MICHAEL_..R..-HILDE,-IARRY...PLISSKIN.,_JOHN._E...MADD.ENr-STEYEN__X __G=MAN.-
-___ _—•_�____.--._—(herein called"Landlord")and_---------- —
__ CITY OF DUBLIN _ (herein called"Tenant").
2. PREMISES. Landlord does hereby lease to Tenant and Tenant hereby leases from Landlord that certain office space (herein called"Premises")
indicated on Exhibit "A" attached hereto and hereby reference thereto made a part hereof,said Premises being agreed,for the purpose of this Lease,to
],570 _ square feet end being situated on the 1st & 2nd _floor of that certain
have an area of approximately_.__.._-.—
6500 Dublin Blvd. , Suites 100, 101, 204, 205,218, Suite D - "Dublin Srar;nn"
Building known as__
Said Lease is subject to the terms, covenants and conditions herein set forth and the Tenant covenants as a material part of the consideration for this
Lease to keep and perform each and all of said terrms ovenants and conditions by it to be kept and performed and that this Lease is made upon the
condition of said performance. h to
IIAN -_� July , 1g
month
3. TERM. The term of this Lease shell be for eommeneing on the 1 g_t day of
30 days after written notice by either party.
and ending on the deVi 81 '
4. POSSESSION.
4.a. If the Landlord, for any reason whatsoever,cannot deliver possession of the said Premises to the Tenant at the commencement of the term
hereof, this Lease shall not be void or voidable,nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom,nor shall the expiration
date of the above term be in any way extended,but in that event,all rent shall'je abated during the period between the commencement of said term and
the time when Landlord delivers possession.
4.b. In the event that Landlord shall permit Tenant to occupy the Premises prior to the commencement date of the term,such occupancy shall
be subject to all the provisions of this Lease.Said early possession shall not advance the termination date hereinabove provided.
6. RENT. Tenant agrees to pay to Landlord as rental,without prior notice or demand,for the Premises the sum of:
Nine Thousand and
One Hundred and Fifty-One & nn/100 ($ 9, 151.00 I Dollars,on or before the first day of the first full calendar
month of the term hereof and a like sum on or before the first day of each and every successive calendar month thereafter during the term hereof, except
that the first month's rent shall be paid.upon the execution hereof.Rent for any period during the term hereof which is for less than one 1111 month shall
be a prorated portion of the monthly installment herein,based upon a thirty (30)day month.Said rental shall be paid to Landlord,without deduction or
offset in lawful money of the United States of America,which shall be legal tender at the time of payment at the Office of the Building,or to such other
person or at such other place as Landlord may from time to time designate in writing.
6. SECURITY DEPOSIT. Tenant has deposited with Landlord the sum of NONE
($ 1 Dollars. Said sum shall be held by Landlord as security for the faithful performance by Tenant of all the terms,covenants,and
conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provision of this Lease,in-
cluding, but not limited to the provisions relating to the payment of rent,Landlord may (but shall not be required tol use,apply or retain all or any part
of this security deposit for the payment of any rent or any other sum in default,or for the payment of any amount which Landlord may spend or become
obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of
Tenant's default. If any portion of said deposit is so used or applied, Tenant shall within five (5)days after written demand therefor,deposit cash with
Landlord in an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease.
Landlord shall not be required to keep this security deposit separate from its general funds,and Tenant.shall not be entitled to interest on such deposit.
If Tenant shall fully and faithfully perform every provision of this Leese to be performed by it, the security deposit or any balance thereof shalt be
returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the Lease term. In the event of
termination of Landlord's interest in this Lease, Landlord shall transfer said deposit to Landlord's successor in interest.
7. OPERATING EXPENSE ADJUSTMENTS. For the purposes of this Article,the following terms are defined as follows:
ease Year: The calendar year in which this lease term commences(provided,however,that the Base Year shall in no event be earlier than the first
full calendar year following the date of initial occupancy by the first occupant of said Building).
Comparison Each calendar year of the term after the Base Year.
Year:
Direct All direct costs of operation and maintenance,as determined by standard accounting practices,and shall include the following costs by
Expenses: way of illustration,but not be limited to:real property taxes and assessments;rent taxes,gross receipt taxes,(whether assessed against
the Landlord or assessed against the Tenant and collected by the Landlord, or both);water and sewer charges;insurance premiums;
utilities; janitorial services; labor; costs incurred in the management of the Building, if any; air-conditioning & heating;elevator
maintenance;supplies; materials;equipment;and tools, including maintenance, costs, and upkeep of all parking and common areas.
("Direct Expenses" shall not Include depreciation on the Building of which the Premises are a part or equipment the•e.rt,loan pay•
mants,executive salaries or real estate brokers'commissions.)
If the Direct Expenses paid or Incurred by the Landlord for the Comparison Year on account of the operation or maintenance of tliv building of
which the Premises are a part are In excess of the Direct Expenses paid or Incurred for the Base Year,then the Tenant shall pay NIA .— d
of the increase. This percentage is that portion of the total rentable area of the Building occupied by the Tenant hereunder.Landlord shall endeavor to'
give to Tenant on or before the first day of March of each year following the respective Comparison Year a statement of the increase in rent payable by
Tenant hereunder, but failure by Landlord to give such statement by sold date shall not constitute a waiver by Landlord of its right to require an increase
in rent. Upon receipt of the statement for the first Comparison Year, Tenant shall pay In full the total amount of increase due for the first Comparison
Year,and in addition for the then current year, the amount of any such increase shall be used as an estimate for said current year and this amount shall
be divided into twelve 112) equal monthly Installments and Tenant shall pay to Landlord,concurrently with the regular monthly rent payment next due
following the receipt of such statement,an amount equal to one (1)monthly Installment multiplied by the number of months from January in the calendar
year in which said statement Is submitted to the month of such payment,both months inclusive.Subsequent installments shall be payable concurrently
with the regular monthly rent payments for the balance of that calendar year and shall continue until the next Comparison Year's statement is rendered.
II the next or any succeeding Comparison Y@ar results In a greater increase in Direct Expenses, then upon receipt of a statement from Landlord.Tenant
shall pay a lump sum equal to such total Increase in Direct Expenses over the Base Year,less the total of the monthly installments of estimated increases
paid in the previous calendar year for which comparison Is then being made to the Base Year;and the estimated monthly installments to be paid for the
next year, following said Comparison Year,shall be adjusted to reflect such Increase.If In any Comparison Year ilia Tenant's share of Direct Expenses be
less than the preceding year, then upon receipt of Landlord's statement, any overpayment made by Tenant on ilia monthly installment basis provided
above shall be credited towards the next monthly rent falling due and the estimated monthly installments of Direct Expenses to be paid shall be adjusted
to reflect such lower Direct Expenses for the most recent Comparison Year.
Even though the term has expired and Tenant has vacated the Premises,when the final determination Is made of Tenant's share of Direct Expenses
for the year In which this Lease terminates,Tenant shall immediately pay any Increase due over the estimated expenses paid and conversely any overpay-
ment made In the event said expenses decrease shall be immediately rebated by Landlord to Tenant. -
Notwithstanding anything contained In this Article,the rental payable by Tenant shall in no event be less then the rent specified in Article 5 hereinabove.
(PAGE 1 -OFF. BLDG.)
0
I a,,'
8. USE. Tenant shall use the Premises for general office purposes and shall not use or permit the Premises to be used for any other purpose without
the prior written consent of Landlord.
Tenant shall not do or permit anything to be done.in or about the Premises nor bring or keep anything therein which will in any way increase the
existing rate of or affect any fire or other insurance upon the Building or any of its contents,or cause cancellation of any insurance policy covering said
-Building or any part thereof or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will in any way
obstruct or interfere with the rights of other tenants or occupants of the Building or injure or annoy them or use or allow the Premises to be used for any
improper, immoral, unlawful or objectionable purpose,nor shall Tenant cause,maintain or permit any nuisance in,on or about the Premises.Tenant shall
not commit or suffer to be committed any waste in or upon the Premises.
9. COMPLIANCE WITH LAW. Tenant shall not use the Premises or permit anything to be done in or about the Premises which will in any way
conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated.Tenant
shall,at its sole cost and expense,promptly comply with all laws,statutes,ordinances and governmental rules,regulations or requirements now in force or
which may hereafter be in force,and with the requirements of any board of fire insurance underwriters or other similar bodies now or hereafter constituted,
relating to,or affecting the condition,use or occupancy of the Premises,excluding structural changes not related to or affected by Tenant's improvements
or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant,whether Landlord be a party there-
to or not, that Tenant has violated any law,statute,ordinance or governmental rule,regulation or requirement,shall be conclusive of that fact as between
the Landlord and Tenant.
10. ALTERATIONS AND ADDITIONS. Tenant shall not make or suffer to be made any alterations,additions or improvements to or of the Premises
or any part thereof without the written consent of Landlord first had and obtained and any alterations,additions or improvements to or of said Premises,
including,but not limited to,wall covering,paneling and built-in cabinet work,but excepting movable furniture and trade fixtures,shall on the expiration
of the term become a part of the realty and belong to the Landlord and shall be surrendered with the Premises. In the event Landlord consents to the
making of any alterations,additions or improvements to the Premises by Tenant,the same shall be made by Tenant at Tenant's sole cost and expense,and
any contractor or person selected by Tenant to make,the same must first be approved of in writing by the Landlord.Upon the expiration or sooner
termination of the term hereof, Tenant shall, upon written demand by Landlord,given at least thirty(30)days prior to the end of the term,at Tenant's
sole cost and expense, forthwith and with all due diligence remove any alterations,additions,or improvements made by Tenant,designated by Landlord
to be removed, and Tenant shall, forthwith and with all due diligence at its sole cost and expense, repair any damage to the Premises caused by such
removal.
11. REPAIRS.
11.a. By taking possession of the Premises, Tenant shall be deemed to have accepted the Premises as being in good,sanitary order,condition and
repair. Tenant shall,at Tenant's sole cost and expense,keep the Premises and every part thereof in good condition and repair,damage thereto from causes
beyond the reasonable control of Tenant and ordinary wear and tear excepted. Tenant shall upon the expiration or sooner termination of this Lease
hereof surrender the Premises to the Landlord in good condition,ordinary wear and tear and damage from causes beyond the reasonable control of Tenant
excepted. Except as specifically provided in an addendum,if any,to this Lease, Landlord shall have no obligation whatsoever to alter,remodel,improve,
repair, decorate or paint the Premises or any part thereof and the parties hereto .firm that Landlord has made no representations to Tenant respecting
the condition of the Premises or the Building except as specifically herein set forth.
11.b. Notwithstanding the provisions of Article 11.a. hereinabove, Landlord shall repair and maintain the structural portions of the Building,
including the basic plumbing, air conditioning, heating, and electrical systems, installed or furnished by Landlord, unless such maintenance and
repairs are caused in part or in whole by the act,neglect,fault or omission of any duty by the Tenant,its agents,servants,employees or invitees,in which
case Tenant shall pay to Landlord the reasonable cost of such maintenance and repairs. Landlord shall not be liable for any failure to make any such
repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or main-
tenance is given to Landlord by Tenant. Except as provided in Article 22 hereof, there shall be no abatement of rent and no liability of Landlord by
reason of any injury to or interference with Tenant's business arising from the making of any repairs,alterations or improvements in or to any portion of
the Building or the Premises or in or to fixtures, appurtenances and equipment therein.Tenant waives the right to make repairs at Landlord's expense
under any law,statute or ordinance now or hereafter in effect.
12. LIENS. Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed,
materials furnished or obligations incurred by Tenant.Landlord may require,at Landlord's sole option,that Tenant shall provide to Landlord,at Tenant's
sole cost and expense, a lien and completion bond in an amount equal to one and one-half W/2)times any and all estimated cost of any improvements.
additions, or alterations in the Premises, to insure Landlord against any liability for mechanics'and materialmen's liens and to insure completion of the
work.
13. ASSIGNMENT AND SUBLETTING. Tenant shall not either voluntarily or by operation of law,assign,transfer,mortgage,pledge,hypothecate or
encumber this Lease or any 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 employees, agents, servants and invitees of Tenant excepted) to occupy or use the said Premises, or any portion thereof,
without the written consent of Landlord first had and obtained,which consent shall not be unreasonably withheld,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 the Landlord,constitute a default under
this Lease.
14. HOLD HARMLESS. Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant's use of the
Premises for the conduct of its business or from any activity,work, or other thing done, permitted or suffered by the Tenant in or about the Building,
and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any
obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of the Tenant,or any officer,agent,
employee, guest, or invitee of Tenant,and from all and against all cost,attorney's fees,expenses and liabilities incurred in or about any such claim or any
action or proceeding brought thereon, and, in any case, action or proceeding be brought against Landlord by reason of any such claim,Tenant upon
notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord.Tenant as a material part of the consid-
eration to Landlord hereby assumes all risk of damage to property or injury to persons, in, upon or about the Premises,from any cause other than
Landlord's negligence,and Tenant hereby waives all claims in respect thereof against Landlord.
Landlord or its agents shall not be liable for any damage to property entrusted to employees of the Building,nor for loss or damage to any property
by theft or otherwise,nor for any injury to or damage to persons or property resulting from fire,explosion,falling plaster,steam,gas,electricity,water or
rain which may leak from any part of the Building or from the pipes,appliances or plumbing works therein or from the roof,street or subsurface or from
any other place resulting from dampness or any other cause whatsoever, unless caused by or due to the negligence of Landlord,its agents,servants or
employees. Landlord or its agents shall not be liable for interference with the light or other incorporeal hereditaments, loss of business by Tenant,nor
shall Landlord be liable for any latent defect in the Premises or in the Building.Tenant shall give prompt notice to Landlord in case of fire or accidents in
the Premises or in the Building or of defects therein or in the fixtures or equipment.
15. SUBROGATION. As long as their respective insurers so permit, Landlord and Tenant hereby mutually waive their respective rights of recovery
against each other for any loss insured by fire,extended coverage and other property insurance policies existing for the benefit of the respective parties.
Each party shall obtain any special endorsements,if required by their insurer to evidence compliance with the aforementioned waiver.
I
16. LIABILITY INSURANCE. Tenant shall, at Tenant's expense, obtain and keep in force during the term of this Lease a policy of comprehensive
puhlic liability insurance insuring Landlord and Tenant against any liability arising out of the ownership,use,occupancy or maintenance of the Premises
and all areas appurtenant thereto. The limit of said insurance shall not, however, limit the liability of the Tenant hereunder. Tenant may carry said
insurance under a blanket policy, providing, however, said insurance by Tenant shall have a Landlord's protective liability endorsement attached thereto.
If Tenant shall fail to procure and maintain said insurance, Landlord may,but shall not be required to,procure and maintain same,but at the expense of
Tenant. Insurance required hereunder, shall be in companies rated A+AAA or better in"Best's Insurance Guide".Tenant shall deliver to Landlord prior
to occupancy of the Premises copies of policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance
with loss payable clauses satisfactory to Landlord. No policy shall be cancellable or subject to reduction of coverage except after ten (10)days'prior
written notice to Landlord.
17. SERVICES AND UTILITIES. Provided that Tenant is not in default hereunder, Landlord agrees to furnish to the Premises during reasonable hours
of generally recognized business days, to be determined by Landlord at his sole discretion, and subject to the rules and regulations of the Building of
which the Premises are a part, electricity for normal lighting and fractional horsepower office machines,heat and air conditioning required in Landlord's
judgment for the comfortable use and occupation of the Premises,and janitorial service. Landlord shall also maintain and keep lighted the common stairs,
cummun entries and toilet rooms in the Building of which the Premises are a part. Landlord shall not be liable for,and Tenant shall not be entitled to,any
reduction of rental by reason of Landlord's failure to furnish any of the foregoing when such failure is caused by accident,breakage, repairs,strikes,
lockouts or other labor disturbances or labor disputes of any character, or by any other cause, similar or dissimilar, beyond the reasonable control of
(PAGE 2—OFF. BLDG.)
INITIAL
' t
Landlord. Landlord shall not be liable under any circumstances for a loss of or injury to property,however occurring,through or in connection with or
;nridental to failure to furnish any of the foregoing.Wherever hear generating machines or equipment are used in the Premises which affect the temperature
otherwise maintained by the air conditioning system, Landlord reserves the right to install supplementary air conditioning units in the Premises and the
cost thereof, including the cost of installation, and the cost of operation and maintenance thereof shall be paid by Tenant to Landlord upon demand by
Landlord.
Tenant will not, without written consent of Landlord, use any apparatus or device in the Premises, including, but without limitation thereto,
electronic data prncpssing machines, punch card machines, and machines using in excess of 120 volts, which will in any way increase the amount of
electricity usually furnished or supplied for the use of the Premises as general office space; nor connect with electric current except through existing
electrical outlets in the Premises, any apparatus or device, for the purpose of using electric current. If Tenant shall require water or electric current in
excess of that usually furnisher] or supplied for the use of the Premises as general office space,Tenant shall first procure the written consent of Landlord,
which Landlord may refuse, to the use thereof and Landlord may cause a water meter or electrical current meter to be installed in the Premises,so as to
measure the amount of water and electric current consumed for any such use. The cost of any such meters and of installation,maintenance and repair
thereof shall be paid for by the Tenant and Tenant agrees to pay to Landlord promptly upon demand therefor by Landlord for all such water and electric
current consumed as shown by said meters, at the rates charged for such services by the local public utility furnishing the same,plus any additional
expense incurred in keeping account of the water and electric current so consumed. If a separate meter is not installed,such excess cost for such water
and electric current will be established by an estimate made by a utility company or electrical engineer.
18. PROPERTY TAXES. Tenant shall pay, or cause to be paid, before delinquency, any and all taxes levied or assessed and which become payable
during the term hereof upon all Tenant's leasehold improvements, equipment, furniture, fixtures and personal property located in the Premises;except
that which has been paid to,by Landlord,and is the standard of the Building. In the event any or all of the Tenant's leasehold improvements,equipment,
furniture, fixtures and personal property shall be assessed and taxed with the Building, Tenant shall pay to Landlord its share of such taxes within ten
1101 days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant's property.
19. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time
promulgate. Landlord reserves the right from time to time to make all reasonable modifications to said rules. The additions and modifications to those
rules shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any
said rules by any other tenants or occupants.
20. HOLDING OVER. If Tenant remains in possession of the Premises or any part thereof after the expiration of the term hereof,with the
express written consent of Landlord,such occupancy shall be a tenancy from month to month at a rental in the amount of the last monthly rental,plus all
other charges payable hereunder,and upon all the terms hereof applicable to a month to month tenancy.
21. ENTRY BY LANDLORD. Landlord reserves and shall at any and all times have the right to enter the Premises,inspect the same,supply janitorial
service and any other service to be provided by Landlord to Tenant hereunder, to submit said Premises to prospective purchasers or tenants,to post
notices of non-responsibility, and to alter, improve or repair the Premises and any portion of the Building of which the Premises are a part that Landlord
may deem necessary or desirable, without abatement of rent and may for that purpose erect scaffolding and other necessary structures where reasonably
required by the character of the work to be performed,always providing that the entrance to the Premises shall not be blocked thereby,and further pro-
viding that the business of the Tenant shall not be interfered with unreasonably.Tenant hereby waives any claim for damages or for any injury or incon-
venience to or interference with Tenant's business,any loss of occupancy or quiet enjoyment of the Premises,and any other loss occasioned thereby. For
each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in,upon and about the Premises,
excluding Tenant's vaults, safes and files,and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors
in an emergency, in order to obtain entry to the Premises without liability to Tenant except for any failure to exercise due care for Tenant's property.
Any entry to the Premises obtained by Landlord by any of said means, or otherwise shall not under any circumstances be construed or deemed to be a
forceable or unlawful entry into,or a detainer of,the Premises,or an eviction of Tenant from the Premises or any portion thereof.
22. RECONSTRUCTION. In the event the Premises or the Building of which the Premises are a part are damaged by fire or other perils covered by
extended coverage insurance, Landlord agrees to forthwith repair the same; and this Lease shall remain in full force and effect,except that Tenant shall
be entitled to a proportionate reduction of the rent while such repairs are being made, such proportionate reduction to be based upon the extent to
which the making of such repairs shall materially interfere with the business carried on by the Tenant in the Premises.If the damage is due to the fault
or neglect of Tenant or its employees,there shall be no abatement of rent.
In the event the Premises or the Buildinq of which the Premises are a part are damaged as a result of any cause other than the perils covered by fire
and extended coverage insurance, then Landlord shall forthwith repair the same, provided the extent of the destruction be less than ten (10%)per cent
of the then full replacement cost of the Premises or the Building of which the Premises are a part. In the event the destruction of the Premises or the
Building is to an extent greater than ten (10%) per cent of the full replacement cost, then Landlord shall have the option;(1)to repair or restore such
damage, this Lease continuing in full force and effect, but the rent to be proportionately reduced as hereinabove in this Article provided;or(2)give
notice to Tenant at any time within sixty (60) days after such damage terminating this Lease as of the date specified in such notice,which date shall be
no less than thirty (30) and no more than sixty (60)days after the giving of such notice. In the event of giving such notice,this Lease shall expire and all
interest of the Tenant in the Premises shall terminate on the date so specified in such notice and the Rent, reduced by a proportionate amount,based
upon the extent, if any, to which such damage materially interfered with the business carried on by the Tenant in the Premises,shall be paid up to date
of said such termination.
Notwithstanding anything to the contrary contained in this Article, Landlord shall not have any obligation whatsoever to repair,reconstruct or restore
the Premises when the damage resulting from any casualty covered under this Article occurs during the last twelve(12)months of the term of this Lease
or any extension thereof.
Landlord shall not be required to repair any injury or damage by fire or other cause,or to make any repairs or replacements of any panels,decoration,
office fixtures,railings,floor covering,partitions,or any other property installed in the Premises by Tenant.
The Tenant shall not be entitled to any compensation or damages from Landlord for loss of the use'of the whole or any part of the premises,Tenant's
personal property or any inconvenience or annoyance occasioned by such damage,repair,reconstruction or restoration.
23. DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant.
23.a. The vacating or abandonment of the Premises by Tenant.
23.b. The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder,as and when due,
where such failure shall continue for a period of three(3)days after written notice thereof by Landlord to Tenant.
23.c. The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by
the 5,nant, other than described in Article 23.b. above, where such failure shall continue for a period of thirty (30) days after written notice thereof
by Landlord to Tenant: provided, however, that if the nature of Tenant's default is such that more than thirty (30)days are reasonably required for its
cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure,to completion.
23.d. The making by Tenant of any general assignment or general arrangement for the benefit of creditors;or the filing by or against Tenant of a
petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless,in the case of
n petition filed against Tenant, the same is dismissed within sixty (60) days);or the appointment of a trustee or a receiver to take possession of substan-
tially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease,where possession is not restored to Tenant within thirty (30)
days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this
Lease,where such seizure is not discharged in thirty (30)days.
24. REMEDIES IN DEFAULT. In the event of any such material default or breach by Tenant. Landlord may at any time thereafter,with or without
notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach:
24.a. Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall
immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by
t.ar:dlord Iry reason of Tenant's default including, but not limited to, the cost of recovering possession of the Premises;expenses of reletting,including
necessary renovation and alteration of the Premises, reasonable attorney's fees, any real estate commission actually paid;the worth at the time of award
by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the
arnount of such rental loss for the same period that Tenant proves could be reasonably avoided;that portion of the leasing commission paid by Landlord
and applic,iWe to the unexpired term of this Lease. Unpaid installments of rent or other sums shall bear interest from the date due at the rate of ten
(1(1'tbl per cont per annum. In the event Tenant shall have abandoned the Premises, Landlord shall have the option of (a)taking possession of the Premises
and recovering Ircvn Tenant the amount specilied in this paragraph,or(b)proceeding under the provisions of the following Article 24.b.
24.b. Maintain Tenant's right to possession, in which case this Lease shall continue in affect whether or not Tenant shall have abandoned the
Premises. In such event Landlord'shall he entitled tp enforce all of Landlord's rights and remedies under this Lease,including the igh.t- vet the rent
(PAGE 3 —OFF. BLDG.)
I' L
as it becomes due hereunder.
24.c. Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decision of the State in which the Premises are
located.
25. EMINENT DOMAIN. If more than twenty-five (25%) per cent of the Premises shall be taken or appropriated by any public or quasi-public
authority under the power of eminent domain, either party hereto shall have the right, at its option, to terminate this Lease,and Landlord shall be
entitled to any and all income,rent,award,or any interest therein whatsoever which may be paid or made in connection with such public or quasi-public
use or purpose,and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. If either less than or more than twenty-
five (25%) per cent of the Premises is taken,and neither party elects to terminate as herein provided, the rental thereafter to be paid shall be equitably
reduced. If any part of the Building other than the Premises may be so taken or appropriated,Landlord shall have the right at its option to terminate this
Lease and shall be entitled to the entire award as above provided.
26. OFFSET STATEMENT. Tenant shall at any time and from time to time upon not less than ten (101 days' prior written notice from Landlord
execute, acknowledge and deliver to Landlord a statement in writing, (a) certifying that this Lease is unmodified and in full force and effect (or,if
modified, stating the nature of such modification and certifying that this Lease as so modified, is in full force and effect),and the date to which the
rental and other charges are paid in advance, if any,and (b) acknowledging that there are not,to Tenant's knowledge,any uncured defaults on the part
of the Landlord hereunder, or specifying such defaults if any are claimed. Any such statement may be relied upon by any prospective purchaser or
encumbrancer of all or any portion of the real property of which the Premises are a part.
27. PARKING. Tenant shall have the right to use in common with other tenants or occupants of the Building the parking facilities of the Building,
if any, subject to the monthly rates, rules and regulations, and any other charges of Landlord for such parking facilities which may be established or
altered by Landlord at any time or from time to time during the term hereof.
28. AUTHORITY OF PARTIES.
28.a. Corporate Authority. If Tenant is a corporation,each individual executing this Lease on behalf of said corporation represents and warrants
that he is duly authorized to execute and deliver this Lease on behalf of said corporation,in accordance with a duly adopted resolution of the board of
directors of said corporation or in accordance with the by-laws of said corporation,and that this Lease is binding upon said corporation in accordance
with its terms.
28.b. Limited Partnerships. If the Landlord herein is a limited partnership, it is understood and agreed that any claims by Tenant on Landlord
shall be limited to the assets of the limited partnership, and furthermore, Tenant expressly waives any and all rights to proceed against the individual
partners or the officers,directors or shareholders of any corporate partner,except to the extent of their interest in said limited partnership.
29. GENERAL PROVISIONS.
(i) Plats and Riders. Clauses, plats and riders, if any,signed by the Landlord and the Tenant and endorsed on or affixed to this Lease are a
part hereof.
(ii) Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term,
covenant or condition on any subsequent breach of the same or any other term,covenant or condition herein contained.The subsequent acceptance of
rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term,covenant or condition of this Lease,other
than the failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding breach at the time of the
acceptance of such rent.
Will Notices. All notices and demands which may or are to be required or permitted to be given by either party to the other hereunder shall be
in writing. All notices and demands by the Landlord to the Tenant shall be sent by United States Mail,postage prepaid,addressed to the Tenant at the
Premises, or to such other place as Tenant may from time to time designate in a notice to the Landlord.All notices and demands by the Tenant to the
Landlord shall be sent by United States Mail, postage prepaid,addressed to the Landlord at the Office of the Building,or to such other person or place
as the Landlord may from time to time designate in a notice to the Tenant.
(iv) Joint Obligation. If there be more than one Tenant the obligations hereunder imposed upon Tenants shall be joint and several.
(v) Marginal Headings. The marginal headings and Article titles to the Articles of this Lease are not a part of this Lease and shall have no effect
upon the construction or interpretation of any part hereof.
(vi) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.
(vii) Successors and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment,apply to and bind the
heirs,successors,executors,administrators and assigns of the parties hereto.
(viii) Recordation. Neither Landlord nor Tenant shall record this Lease or a short form memorandum hereof without the prior written consent of
the other party.
(ix) Quiet Possession. Upon Tenant paying the rent reserved hereunder and observing and performing all of the covenants,conditions and
provisions on Tenant's part to be observed and performed hereunder,Tenant shall have quiet possession of the Premises for the entire term hereof,subject
to all the provisions of this Lease.
Ix) Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent or other sums due hereunder will cause
Landlord to incur costs not contemplated by this Lease,the exact amount of which will be extremely difficult to ascertain.Such costs include,but are
not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed
covering the Premises. Accordingly, if any installment of rent or of a sum due from Tenant shall not be received by Landlord or Landlord's designee
within ten (10) days after written notice that said amount is past due,then Tenant shall pay to Landlord a late charge equal to ten (10%)per cent of
such overdue amount. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by
reason of the late payment by Tenant. Acceptance of such late charges by the Landlord shall in no event constitute a waiver of Tenant's default with
respect to such overdue amount,nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.
(xi) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this
Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be
amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest.This Lease shall not be
effective or binding on any party until fully executed by both parties hereto.
(xii) Inability to Perform. This Lease and the obligations of the Tenant hereunder shall not be affected or impaired because the Landlord is
unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike,labor troubles,acts of
God,or any other cause beyond the reasonable control of the Landlord.
(xiii) Attorneys' Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party
shall be entitled to recover all costs and expenses including the fees of its attorneys in such action or proceeding in such amount as the court may
adjudge reasonable as attorneys'fees.
(xiv) Sale of Premises by Landlord. In the event of any sale of the Building, Landlord shall be and is hereby entirely freed and relieved of all
liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act,occurrence or omission occurring
after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed,without any further agree-
ment between the parties or their successors in interest or between the parties and any such purchaser,to have assumed and agreed to carry out any and
all of the covenants and obligations of the Landlord under this Lease.
(xv) Subordination, Attornment. Upon request of the Landlord, Tenant will in writing subordinate its rights hereunder to the lien of any first
mortgage, or first deed of trust to any bank, insurance company or other lending institution, now or hereafter in force against the land and Building of
which the Premises are a part,and upon any buildings hereafter placed upon the land of which the Premises are a part,and to all advances made or here-
after to be made upon the security thereof.
In the event any proceedings are brought for foreclosure,or in the event of the exercise of the power of sale under any mortgage or deed of trust made
by the Landlord covering the Premises, the Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the
Landlord under this Lease.
The provisions of this Article to the contrary notwithstanding, and so long as Tenant is not in default hereunder,this Lease shall remain in full force
and effect for the full term hereof.
(xvi) Name. Tenant shall not use the name of the Building or of the development in which the Building is situated for any purpose other than as
an address of the business to be conducted by the Tenant in the Premises.
(xvii) Separability. Any provision of this Lease which shall prove to be invalid,void or illegal shall in noway affect,impair or invalidate any other
provision hereof and such other provision shall remain in full force and effect.
(xviii) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall,wherever possible,be cumulative with all other
remedies at low or in equity.
(xix) Choice of Law. This Lease shall be governed by the laws of the State in which the Premises are located.
(x x) Signs and Auctions. Tenant shall not place any sign upon the Premises or Building or conduct any auction thereon without Landlord's
prior written consent.
(PAGE 4— OFF.BLDG.)
• • INITIAL
• 30. BROKERS. Tenant warrants that It has had no dealings with any reel estate broker or agents In connection with the negotiation of this Leese
excepting only
and It knows of no other real estate broker or agent who Is entitled to a commission in connection with this Leese.
The parties hereto have executed this Leese at the place and on the dates specified Immediately adjacent to their respective signatures.
II this Leese has been Iilled In, It has been prepared for submission to your attorney for his approval.No representation or recommendation Is made
by the real estate broker or Its agents or employees as to the legal sufficiency,legal affect,or tax consequences of this Leese or ttte transactions relating
thereto.
TAHER F' T.ANGR i mmun *gnum LA.ERY PLTSSKI
JDIIN E. -MADDEN r 'STEVEN M. GOLDMAN
Address 6500 V{l laf a Parkway .#201 By
nu "LANDLORD"
CITY OF.DUBLIN
Address
6500 Dublin Blvd., Suites 11100, 101, By
'
204, 205, 218, & Suite D, Dublin CA 94568 "TENANT"
WAGE 5—OFF.BLDG.)
INITIAL
RULES AND REGULATIONS
1. No sign, placard, picture, advertisement,;name or notice shall be inscribed,displayed or printed or affixed on or to any part of the outside or inside
of the Building without the written consent of Landlord first had and obtained and Landlord shall have the right to remove any such sign,placard,picture,
advertisement,name or notice without notice to and at the expense of Tenant.
All approved signs or lettering on doors shall be printed,painted,affixed or inscribed at the expense of Tenant by a person approved of by Landlord.
Tenant shall not place anything or allow anything to be placed near the glass of any window,door,partition or wall which may appear unsightly from
outside the Premises; provided, however, that Landlord may furnish and install a Building standard window covering at all exterior windows.Tenant shall
not without prior written consent of Landlord cause or otherwise sunscreen any window.
2. The,sidewalks, halls, passages, exits, entrances, elevators and stairways shall not be obstructed by any of the tenants or used by them for any purpose
other than for ingress and egress from their respective Premises.
3. Tenant shall not alter any lock or install any new or additional locks or any bolts on any doors or windows of the Premises.
4. The toilet rooms, urinals, wash bowls and other apparatus shall not be used foi any purpose other than that for which they were constructed and no
foreign substance of any kind whatsoever shall be thrown therein and the expense of any breakage,stoppage or damage resulting from the violation of this
rule shall be borne by the Tenant who,or whose employees or invitees shall have caused it.
5. Tenant shall not overload the floor of the Premises or in any way deface the Premises or any part thereof.
6. No furniture,freight or equipment of any kind shall be brought into the Building without the prior notice to Landlord and all moving of the same into
.or out of the Building shall be done at such time and in such manner as Landlord shall designate. Landlord shall have the right to prescribe the weight,
size and position of all safes and other heavy equipment brought into the Building and also the times and manner of moving the same in and out of the
Building. Safes or other heavy objects shall,if considered necessary by Landlord,stand on supports of such thickness as is necessary to properly distribute
the weight. Landlord will not be responsible for loss of or damage to any such safe or property from any cause and all damage done to the Building by
moving or maintaining any such safe or other property shall be repaired at the expense of Tenant.
7. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance in the Premises,or permit or suffer the Premises to be
occupied or used in a manner offensive or objectionable to the Landlord or other occupants of the Building by reason of noise,odors and/or vibrations,
or interfere in any way with other tenants or those having business therein,nor shall+ny animals or birds be brought in or kept in or about the Premises
or the Building.
8. No cooking shall be done or permitted by any Tenant on the Premises, nor shall the Premises be used for the storage of merchandise,for washing
clothes,for lodging,or for any improper,objectionable or immoral purposes.
9. Tenant shall not use or keep in the Premises or the Building any kerosene,gasoline or inflammable or combustible fluid or material,or use any method
of heating or air conditioning other than that supplied by Landlord.
10.Landlord will direct electricians as to where and how telephone and telegraph wires are to be introduced.No boring or cutting for wires will be allowed
without the consent of the Landlord. The location of telephones,call boxes and other office equipment affixed to the Premises shall be subject to the
approval of Landlord.
11.On Saturdays, Sundays and legal holidays,and on other days between the hours of 6:00 P.M.and 8:00 A.M.the following day,access to the Building,
or to the halls, corridors,elevators or stairways in the Building,or to the Premises may be refused unless the person seeking access is known to the person
or employee of the Building in charge and has a pass or is properly identified.The Landlord shall in no case be liable for damages for any error with regard
to the admission to or exclusion from the Building of any person. In case of invasion,mob,riot,public excitement,or other commotion,the Landlord
reserves the right to prevent access to the Building during the continuance of the same by closing of the doors or otherwise,for the safety of the tenants
and protection of property in the Building and the Building.
12.Landlord reserves the right to exclude or expel from the Building any person who,in the judgment of Landlord,is intoxicated or under the influence
of liquor or drugs,or who shall in any manner do any act in violation of any of the rules and regulations of the Building.
13.No vending machine or machines of any description shall be installed, maintained or operated upon the Premises without the written consent of the
Landlord.
14.Landlord shall have the right, exercisable without notice and without liability to Tenant, to change the name and street address of the Building of
which the Premises are a part.
1S.Tenant shall not disturb,solicit,or canvass any occupant of the Building and shall cooperate to prevent same.
16.Without the written consent of Landlord,Tenant shall not use the name of the Building in connection with or in promoting or advertising the business
of Tenant except as Tenant's address.
17.Landlord shall have the right to control and operate the public portions of the Building,and the public facilities,and heating and air conditioning,as
well as facilities furnished for the common use of the tenants,in such manner as it deems best for the benefit of the tenants generally.
18.All entrance doors in the Premises shall be left locked when the Premises are not in use,and all doors opening to public corridors shall be kept closed
except for normal ingress and egress from the Premises.
19. It is understood that tenant, at his or her sole expense and cost, will install plastic
chair pads under all chairs that have rollers or coasters.
i
INITIAL
(PAGE 6 OFF. BLDG.)
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