HomeMy WebLinkAbout0452.094TO:
FROM:
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City of Palo Alto
________ C_ityl\ilanager's Report
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: Finance
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AGENDA DATE: October 17, 1994 CMR: 452:94
SUBJECT:
ru;OUEST
FIVE-YEAR SUBLEASE AND REDUCED REI'iTAL RUE
STRUCTURE FOR DANCE SPACE (L-WING) AT THE
CUBBERLEY COMMUNITY CENTER
This fCPOit requf:st'i Council's approval ofall e'-:ception 10 the Cubbcrk~' Jt:a:.ing POi!l'Y Cnr
subleasing of dance space at the Cubherky Commllr'.ity Ccn~('r L,Wing,
rucCOMMHWATIONS
Staff recommends that Council: authorize the Mayo! hi sign a tive-ye ... r s1Jbteas.c ''''ito 3. the~
)'~ option to eXicnd (i\.ttJ.chment A), and appn)..-c six months free n:nl 10 the Zl1har Danct:
Company; authorize a reduction in rent Irem the established Cubbcrley sublea<;c rental [ales:,
previously approve-d by Council (CMR:445:9l)., for tho(.': nonprofit dance coop::ratjye group_
Dance Action. for the next three years (Attachment B)~ and authorile slotf 10 negotiate OJ
rental ,,~'aiveT/credi[ f(u capital and/or code required improvements in room LI. upon
solicitation of a new tenant.
poLlCY IMPLICATIONS
This proposal would modify a previous slaif n:commer.dation and allow for-profit dance
organizations.to leas.e da.'1.ce space, provide a Council-approved sLx-month rental wah-ocr as
reimbursement for capita! improvement"> made 10 the fadlity by the lohar Dance Company,
and provide staff with the. flexibility and authorization to neg'()tiate a Ten1..al Wal\'eTfcredit for
any proposed capital improvements in room Ll. Ii. wiilalso redllce the minimunl rent to the
nonprofit dance organization, Dance Action, trom the pr!!,I,o'iously established Council·
approved sublease rental r".tte structure.
EXECUTIVE SUMMARY
On May 16. 199i. COl!ncil.npprovcd the r.."1a~ter Plan fc)r the Cubbcrley Community Center.
The Masl~r Plan divided the c-ntire site ioto units of related activities calkd "neigl1borhoods".
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The L-Wing \fonnerly the Cubb«ky High School aUla, melal and wood shop ,.,cas) was
designated as the area for the Dance Ncighborho"."ld. The L-Wing provides approximately
15,000 square feet within four large rooms. Staff met several times with representatives of
both f()r-profit and nonproflt dance organizations and detennine-d that the entire \",ring shouid
be used for nonprofit dance space (CMR:453:91). at a minimum monthly per square foot
rental of $.65 (CMR:445:~I). Sulf began working with representatives of the dance
community toO create 3, nonprofit dance organization that would bl!'gin suhleasing 1\\'0 rooms,
L·3 and 1.-·4. By 1994. i! was envisioned th::lt these groups \"'ouJd fltl1y expand into the
rcmllining two rooms, L~l and L-S.
In Januar'j 1993, Dance Al.:tion, a nonprofil dam:e COOperati\.·e, entered ill to a sllblease
agre:em<.'l1! for room L-3, with the anticipation of exr~mding within a tew years. Dam:e
Action is slill evolving and b~li!dillg'\ client Oi.!:sc and is {'xpect!ng to Apply for p'ant funding.
"Ill dale, Dance A,:-tion has not been able to pit ... the $.65 rer square feot per monlh rental
(52,034 per month) for L-3, and h .3'3king the Couneillo approve ,m JI[CrnJll~ p!.:l'ce;:ntt:lgc r.,;-f1.i
propc'sal that would allow Dance J\cl!on to pay 25 percenl oi' its m:l annuol inr.:ome
(e~timated at $1,000 per month) for the r.ext three years. Dancl,." Action dO~:i nol amicipa;te
that it \\'ilI be ready for any expansion for a minimum of tilrt"e yC'dIS.
In December 199], as an Interim use, staff sublea<;ed room L-5 to Zohar Dance Company
at a monthly market rent.11 of $1 .lO per square foot ($4.032 per month). Ff1H~ silblea:se was
for th[(:e years, \vith the ul'ldersumding that Zohar would move when Dance Action needed
the space. Znhar is a well eSlablished commercial dance c:ornpany, whkh ha'i bee-n operating
in Palo AIm since 1983. Its current sublease for room 1..-5 will expire in November 1994.
In lig..1\ of the rdatlvel)' slow evolution of the Dance Action cooperative, Zahar O\\llers. Ahud
Krauss a..l'ld Daynce Lei have requested a new five-year sublease tor the larger room L4,
with a five-year aption to e,'(1end. The fLrst year's rent will be ba..<)ed on a market rate of
51.14 per square foot per month. They are also requesting six months free rent as
consideration for the substantia! .:::api1a1 improvements they have had to make to the facility,
including installing s.ound walls. improving the lighting lmd heating, revising the dectrical
facilities, and ma.king building code and condition repairs hJ a m~a;wine and inlerior
restroom to meet the Americans ',\'ith Di:i.abilities Act requ.jrcmenl~. The remaining room,
L-5, would b.:= maintained by the Cit)' fliT .a City-run hourly rental dance stud.io,
Room L-l has recer.tly been \'acaie.d by Theaten'vorks' "Blai..'k Box Theater". The Black Box
The~rcr had oc;(,~upied the space v;] a rent-fr-.!c ha~;s since 199[. StafT intends to make r(lorn
LI available, via soliciwtion of n:411csts ror proposals, to another nonprotlt 01' for-profit
dance or dance related organization for a three tu live year lease term. The room will be
C!\UL4S2:94 Page 2 or 3
.lIIfb_~_":':' ___ ~ ___ r __ . ____ "'_" -~,,",-'----_ • ___ ~ <"-.._""_""""""' ....... ..,.
w..ade available I'm an "as is" basis; howeva, should a new lenanl submit proposals to make
5u"st8nuaJ capital improvements, staff would like the flexibility to negotiate an appropriate:
rental v.-a.i"'er:'credit, as consideration fOT any long-term f.:;,cility improvements.
fiSCAL IMPAcr
The L= and CO\-rna."t Not to Develop with the School District requires the City to
generate rental income at Cubberley sufficient to pay a ·'pass-through" lease amount that is
not 3djusted f{}T ........ hat the Cit)' actually makes in income at the she. The need to generate
i!J1 rnn'me a<:.Sume-s that e\'cry tenant pa.vs its fair share. Cr--..rn:445:91 establfshe-d a rental
s-trucrure rl"'}f each ('[ the anticipated uses :at lhe Cubberley Center. Based on the-establi:sned
rer'\l_all~': three-rC>0ffiS de:S.ignated r~lr 1ong:-~~nn lease for dance 'Should have b<:cn genef'd~;ng
3.II 3..'1rLUjj tr.\."1me of arn:lul S90,OO() p"r ~'ear. In fjs-cai ycar 1993·94, the three rooms
gCr'.Ci3td S6Cl,i:i}(), Jue 10 rh.: L1d thL'.! neither rheJtfcworb or Dance A.c!ion paid any rent.
b 101-l--Q5, th~ annual re-ntal, les.s th,.' reimbursemt:nt 11)1 tJu: tenant improvements in L-4 and
tlH.: adLj :r.ic,fj {',f ,:~ new i.:nant to L-j, is J,J11 ki:r.:;ted to be 550,000. In I Y95-96, the annual relll
~h0U!cl k ;"T'Pr\.)ximaidy S80,OGO,
ENV!RO:';ME~TAL ASSESSME1\T
T11.: It'ase of an e;-..i5ting facilit), is calegoricaily ex~mpt under Ctass I -(Existing Facility)
requlremt"nts of th~ California Environment.:!1 Quai it)' Act (CEQA).
ATIACHMEI\T;j
AJ Proposed fht'~ye:l!" k.asc v.ith l1\'c-)'ear option to Zohar Dance Company
B) ?roposcd Lhree-)ear lease with Dance Action
PREPARED BY: Martha Miiler, Financial An.lyst
DEPARTt-fEl'.'T HEAD APPROVAL: '";j~~i1,-.
Steele ~
CITY MANAGER APPROVAL:
cc: Almd Kraus~
IJ:l),net: Lt"l
Janey Limpert
CMR.:45l::W
~\AC ing Fjnan~ce j;;#!'
rtJ,e «erning' '_-.... -
"5'!)' Manoger
P-.l.ge3~r3
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Project: Dk~CE ACTION
Project. Nu.:ber: CL 23/12-94{1
SU'BLE..",SE
THIS SUBLEASE is made t~is _____ day of , 19~ __ by and
between the City of Palo Alto, a iIIunicipal corpo.;:atioTl , (CITY} d.nd
oance Action, a non profit corpor~tion (SUBTENANT).
RECITALS
A. CITY. under .a Lease and Covenll:nt Not'!;:> Develop (LEASE), dated
S-epte'll:ber 1, 19!i9, t:y and t't'l'--e~n the Pal,=-, Alto l1nified School
District (D1STR!CT) and t.he City of. Pale, Alto (CITY), is:
leasing the for~cr Cubberlt:'l' Hi9t, Schc~l site "t ~ooo
Middlefj,eld Ro~d (Cubberley Site)
B. CITY dpsire5 to develo? th.," ClJbL~erl.e}' site intI"', c co;-. .;-,'..!nity
facility including the arts ~nd suble~se ~ portion of it to
dance olganilation~ 8S p£r th~ cit~· C0unciJ approved Cubberlcy
Mas:tel:: ?lan.
NOW THEREFORE, in cons iderat ior. of tr.E'se pn1~i ses, thE'" parties hereto
mut.ually agree as follo ..... s:
I . PREKI SES (RL 3.0) S
Subject to the te~s and ~onditions set forth in this agree~entl CITY
SL~LEA5ES to SUBTENJL~ chat certain property (PREMISES) described and
shO\ln in "EXHIBIT B". E.XlUBIT B ~s at.tached t.o, and by thi'3
reference, made a part of this SUBLEASE". Unless specifically provided
elsewhere in this SUBLEASE. SUBTEH~~T accepts the PREMISES "as-is~ on
the date of this SUBLEASE.
II. PURPOSE (FL 4.0) 5
The purpoae of thi.s SUBI .. EASE i;: to provide tor the usc of ),130 Sq'lJd!."'e
fect, identified as roop L3, for dance studio space.
III. REQUIRED AND OPTIONAL SLWICES ..... /0 USES (RL 5.0) 5
In furtherance of the p\lrpo:r.es stated above j the follo'ool.ing required
and optional services and uses shall be provided, permitted or
prohibited:
A. Required Sg,I-viq~.s and Uses, Tnroughout ti".e term of this SUBLEASE
SUBTENANT shco.ll provide the tollo""ing services and activities~
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Use room L3 for office anct instructional dance studio space.
B. optional Services and Uses Subject to the prior "'Titt~n approval.
of the. City Manager I SUBTENANT Inay also use the PRD1"ISES to
provide additional services and uses .hich are ancill~ry to and
compatible with the required services and uses stated abov~ and
not in conflict with the required uses.
Approval of optional services and uses shall be ~ithin the sole
discretion of ~~a City Manager.
c. Restrigted Uses, The above listed services and uses, ~th
required a.nd optiondl, shall be the only services and uses
permitted upon or tro~ thE FREKISES. SUBTENANT &?rees not ta use
the PREMISES for any other purpose n;:,r ~c engage in, or pe:n!.it,
an}~ other business activity within or ir-ca:: the PREMISEs,
D. hg11ibi'ted Uses, The follv· • ..-ing 1.l5e~· are p ..... orlibLted: 1) Tne
servinq "nd/or Sofl le of alcr)hollC beverages; 2) conJllct.ing y-3.!:.es
of chance on the pr~lo.i$es,
rv. TERM (RL 6.0) S
The term of this SUBLEASE sh .. " U
terminating on.
p~·ov~ding-ihirty (30) days prio~
this SUBLEASE.
be thre~ (3) rea).-s, .;o::-_'":"'.enclng
SUlnENf' ... "'{I ~ay J I.1pon
writtan notic€ to City, tEr~inate
V. TERMINATION Of PRIOR AGREEMENTS (P..L .s, 1) S
ThiQ: SUBLEASE supersedes any and all prior subleases or a(lree;r;e.nt:=.
entered into by CIT" tor use of the PREMISES. All such prior
subleases or ag~eements are null ~nd void.
VI. CONSIDERATION/RENT {RL 7.0) NS
A. COnsideration of CITY. In consideration for SQBTEN~~'S use of
the Pre.ises provided by CITY, SUBTENANT shall, in accordance \lith
C1ause XI (RENT PAYMENT PROCEDURE), pay t~ CITY, the greater of
the followinq amounts: ...
1. Minimum Annual Rent. The minimum annual r~nt for the first
Sublease year (being the first t .... 'elve months follo'wing t.he.
commencement of this Lease) sh~ll be eiqht thousand dollars
($8,000.00). The minimum annual rental for the 5~cond year,
lllonths thirteen th"l'ough t,,·enty-four following the fjrst.
anniversary of cOlMI\encement of this Sublease: shall be ten
thousand dollars ($10,000.00), and the minmum annual rent for
the third y.:tar, lllonths t"..enty-fi"lc thrOugh thirty-3ti shall be
twelve thousand dollars ($12 1 000,00).
2. perpentage Rental. Percentage rental for SUBTENANT'S use of
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VII.
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the PREM!SES shall be calculated using the follo~inq
percentages of gross receipts from business operations
conducted on or fro~ the PREMISES:
Business Category
All classes/programs!
tuition/rent~151
memberships/fundraising
end unrestricted grants 25\
Maximum Annllal Rent. The maximWl annual rental shall not
exceed the then published rental rate for-non-profit dance
spac:e a.s established and approved by the City COIl.l:\cil.
CHARGE FOR UNAUTHORIZED SERVICES AND USES (RL 7.<) S
SUST'EN~T shall pa)' CITY a sum e.qual to one hundred percent (10()~} of
the gross receipts for any service or use that is not per~jtted or
authorized by Clause III (~£QOIRED &: OPTIONhL USES). This payi'.lEnt is
subject to thE!: "due datelt requirement provided in Clause XII (CHARGE
FOR LATE PAYMEN't}. The existence of S1.lch charge. oc the payment or
I'f!ceipt of money under this clause, uoes not constitut~ an
authorization of a particular service or use and does no~ constitute
<!Ii w.aiver of CITy/S right to termina.te such service or use.
V1!r. NOli-PRorH COMMUNITY ORGAlIIZ.~TION BYLAWS & MEIlBERSHIP (RL 7.6) S
Membership in SUBTENANT'S organization shall be open to ar1},one !lleeting
the requirements of its rules and bylaws. All restrictions, rUles,
bylaws, and fees, Lf ar.y I and changes thereto proposed by SUF.TENA. ... rr
shall, prior to being put into effect, be revie~ed and approved by the
City.Manager. These rules, byla ..... s and fee sche.dules shall be on file
with the Real Property Manager.
IX. CONTROL OF HOURS, PRICES AlID PROCEDURES (RL 8" OJ S
SUSTENANT shall continuously use the PREMISES for the uses specified
in Subparayraph.A of Clause III (REQUIRED AND OPTIONAL SERVICES &
USES) during all usual busi)leSS hours and on all such days as
comparable businesses in the area or as are custom.ary for the Required
and Optional Services and Uses permittE'd in accordance 'With Clause III
(REQUIRED AND OPTIONAL SERVICES & USES). SUBTENANT sholl use only
such space within the PREMISES for office, clerical or other non-sales
or services uses as is reasonably required for SUBTENANT'S required
or approved uses of the PREMISES.
SUBTENANT shall at all times lTlaintain a written schedule se.tting fDrth
the operating hours and operating proceduref;;. for each required and
optional use provided on or from the I?R~MISES. A scrledule of prices
cb,arged f"r all goods .:tnd/or se:rvices related to the r'equired and
optional uses of this Sublease shall also be maintained and individual
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• erch.aJ1dis~ lII1.lSt be clear ly priced. SUBTENA..~T agree.s that when
alternate tOr.lS of packaging are available, onl~r iteJrls packaged in the
aanner ~ost compatible with the goals of raducinq litter ana
preserving the ~nvironment shall be sold.
upon written request, StJBTENA.NT sr.all furnish the City Hanaqer or
deaiqn.~. a copy of the schedules and procedures. ShQuld the City
Jl!anaq4e:r or designee decide that any part of these schedules or
procedures is not. justified with regard to fairly satisfying the needs
of the public, SUBTEN~~, upon written notice from the City Manager l
shall .edify these schedules or procedures to the satisfaction of the
City Manager. Prior to issuinq such a notice, the city Manager or
d.sign •• , shall personally review and confer ~ith SUBTENANT or its
represent.ative,
Pri:sar"j consideration Sblill be giv,;n to the. pu.bU.c l s benefit in
implementinq this clause. All prIces charged for goods and/or
services supplied to the poJblic on or from the PREMISES $hall be fair
and reasonabl~1 bassd ~pon the following ccnsiderations~
A. Th.e deglee of public service involved in the sale of the goods
and/Qr servicesi
B. The ~aL·)o..'.et pricE!s charged by other coropetir:g and/or comparable
businesses; end
C. The reasonableness of the profit ma~gin as related industry-wide.
SUBTENAl'."T1.s tai lure to coJt.ply 1,Ji th t,he provisions of this clause shall
constitute a t'laterial breach of this SUBLEASE a.nd rr,a~' be grounds for
te~ination of this SUBLEASE.
SUBTENANT agrees t..~at it will operate. and manage the services and
facili t.ies offered in a competent and efficient 1D?lnner at least
comparable to other well mana qed operations of a similar type.
5t.l"BTENANT shall at all times retain active, qualified, co:ropetent, and
e'q)erienced personnel to supervise SUBTENANT'S operation and to
re.pre.sent and act for StlBTENANT. Sl1BTENANT shall require its
attendants and employees to be properly dressed, clean I courteous,
ef~icient. and neat in appearance at all times. SUBTENANT shall not
allow any person{s) in or about the PREMISES who shall use offensive
language. and/or act in a boisterous or otherwise improper manner.
SUBTr:NAN'T" shall maintain a close check over attendants and employees:
to insure the maintenance of a t'd<jh standa·rd of service to the. p"U.blic.
If the City Manager, on behalf of CITY, determines that the quality
ot service rendered by SUBTENAN1', including I without limitatl.on, a.
deterainaticn that the standard of service provided by any employee
of SUBTEllANT is r.ot ,S3tisfactory under the provisions of this
SUBLEASE, SUBTENANT shall act immediately to remedy any and all such
determinations after receipt of notice from the City Manager.
,,-.'~.=A'~~'! _______ "'_.
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eIn rflserves t..~e right to ctisqualify fro-m providing services to the
public e.aploYE-es of SlJBTE.""l;\NT ""'ho do not ~eet th~ standards ot service
specified in this pare:gr.,ph. crTY rr..ay rE!quire SUETENAl'w"T t.o remove any
eaployees fro. the pro .... ision of services to the public pursuant to the
terms and cencEt lens of this SUBLEASE. StJBTENANT'S (ailu~e to
eff&etively re»edy any ~ritter. notice of determination to the
satisfaction of the City within five (5) days of receipt of such
notice shall constitute a. default by SUBTENANT.
X. DEFIN!TION OF GROSS RECEIPTS (RL 9.0) NS
The terll IIIqro$$ receipts" upon which percentage rentals are to be
bas~ sh~ll include:
A. The 5~le price of all g.:Jods, "'"ues, r.'!12t'ch~nd.i.5e, and products sold
on or from tl"iE PRD'!ISES by SUETD'ANT, .... hether for cash or credit
and ,,'hether pi'ij"",:I;'nt is aC'::llaUy ~ade or noti
B, The chJ.:rges ~dde by Si.1 BTD,';.:a fur tuition, ~e!!lt;€:rship or the sale
at' rer.ditiDn on or fro::; tr..~ f'RL~ISES of Be!'vic~s of any nature or
kind '.'/""Iat s.c)ever I • ... het.'ler for ca.c::;h or cred).t and Iot'het~ler p,-"yment
is actuall)' ~ad~ or not;
c. l..ll ad~i55~onJ entry, rent.;!l, and othel
ch~rqed by Sl::&TE.·J) ..... "i'T (in,-'ll.luing b'..ll
~cce-pted by StiBT'DIANT);
fees. cf any i"laoture or kind
not li1':lited to deposits
D. 'The f~ir rent.::.l valUe or' facUities used by SUBTENA.NT or its
e=ployees tor purp~s~s other than the busi~zss purposes for Which
t~e FR~ISES are leased;
:r. Security deposi~s collected by SIJBTEN~NT fror.1 its renters, agents,
concessionaires or 1 icer,sees and not placed in an escro'W or trust
account 'Wi th ~nteres't not accndng to the SUBTENANT.
F. Gifts aT.d/cr Grants no't ?urposefully identified to be restricted
against pa}~ent~ (or SUBTEN~V!'S facility rental.
XI. RENT PAYHn<"T PROCEDURE (RL 10.0) NS
A. On or betore the first day of each six (6) month anniversary of
COEBence~ent of this SUBLEASE, SuaTEN~~T shall pay to CITY rent
as set. fortn i:1 Clau::;J2 VI (CCNSIDEFA'IION/RENT).
'S. SUBTDU .... "t":i:-' S ohl iqat.:ion to pay rent shall conunence >:2pon the
colliten.-:::eJ!!'Etnt date of this SUBLEASE.
C. Rental p.syments shall be delivered to the Revenue Collections
Di ..... ision, 250 Hamilton ""ve.nue, PO Box l02~,Ol P~lo 1>..1to, CA 94303.
·The designa.te1 pla.ce of pay.-:ent :cay bE" cha,nged at any time by CITY
upon ten {lO) days written notice to SUBTENANT. Rent,al payments
I!ay be made by check :made payable to the City of Palo Alto l
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howev~r, SUBTEN~~ assumes all risk of )os~ it p~y~ent5 are made
by mail.
O. All rental payments shall be acco.p.Hlied by tne rl!'!'nt",l p~Y"Ient
cQupon lind a; correct statel'lent. of ,~11 applicable gros.s receipts
for that portion of the siA: (6) J:ontns of accDunting period. The
statement shall be signed by SUBTENANT or their responsible agent
under penalty of perjury, and sh~ll Pe in th~ fo~ of Exhibit c
attached to, a.nd by this reference/ incorpo!'at.e:;i into this
SUBLEASE.
D. Acceptance of Late or InC9tr@'ct~t: SUBTENAN7 specifically
aqrees that ac~eptanee of sny late or incorrect rentals suo.itted
by SUSTENANT shall not constitute an ~cquiescenc:e or ..... aiver by
CITY and shall nct prevent CITi' from ent"orcing Clause XII (CHARGE
F'OR LA.TE PA'i-XENT) or any other remedy provided ir. this SUBLEJo.SE.
XII. CHARGE FOR L<\.'TE P}'YMF..Nt' (HI, ll.l) S
If any paY!':1ent of rent as sPecified in Cl.juse \'J \c,_:'\'S:[!'fJ:";-;-TCX/Rt.\T')
or of a:n;i other st.t::l d~:B CITY is not recci\'ed by CJ,',', a li'lt:e ch.erg~
aqua 1 to one per.;::ei1t (l~) of thl:'.: pay'l""'2'nt c1~~~ ,"!r;,j uropaid plus an
administrative fee of $50.CG sflall be ~dd,"d to the ~.JJ'-;:"ent, and the
total sum shall beco~e irt!"JE!diatel), due 3r1d pay3ble to CITY.
Acceptance of late charges and/or dny port ion of the o ... 'erdue pa)"'lDent
by CITY shall in no event COflstitute a ...,aiver of StlBT£~;,;.H:T''S default
with respect to such overdue pa:fn;eJ"lt, nor prevent CITj' !r-OZFl. exercising
any of the other-I'ights ~nd re",edj_€5 g["ant~d h2rellnd8t"' Dr by d.n)'
provision of la ....
XIII. RECORDS AND ACCOUNTS [RL 12.0) S
A, ~ds. SUBTENANT shall, at all tines during the terJ!l of this
SUBLEASE. keep or cause to t>e kept true and cO::llplete books,
records, and accounts of all financial transactions conducted ~n
the operation of all business act.ivities, of 'Whatever nature,
conducted pursuant to the rights qranted. herein. The records,
booka and accounts shall be )cept or aade available to CI'l'Y at a
location within Santa clara or Se.n Kateo County. The records .ust
be supported by source doc~ents such as sale slips, cash register
tapes, purchase invoices I or other pertinent documents.. EXcept
as may be otherwise provided DJ' this SUBL't::;"SF., all rete.il sales
and charges shall be recorded by means of cash registers or other
comparable devices which display to the customer the amount of the
transaction and ,llutoJlatically issue a receipt.. The registers
shall be equippe.cI ... ith devices which leek in sales totals and
Dther transaction records, or with counters which are not
re.s.e-.ttable and 'IoI'hich record transaction nUl!:o-er-s and zales details,
totals registered shOlll be read and recorded at t.he b~ginnirja and
end of each day. Retail sales and charges ~ay be recorded~by a
systeJll. other than cash registers or oller comparable devices
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provided that system is approved by the City Auditor~
In the event of adJr,is.c,oion charges or rentals, SUe-TENANT shall
issue serially numbered tickets for each such admission or rent~l
and shall keep an adequate record of the tickets, ~oth issued a~d
unissued.
Upon request of SUBTENANT and at tho City Auditor's sole
discretion, the city Auditor may autnorize the keeping of the
above-referenced .books of account and records and supporting
source. Qocuments in a Bingle location Outside the. limits of Santa
Clara or San Mateo County provided SUBTENANT agrees to pay all
expenses includinq, but not limited to, transportation, food, a~d
lodging necessary for the city Auditor to send it.s reprl.'.sentative
to audit or review beoks !Inc records. 'This right ~ha.ll not: be
e.l<"ercised by the city Auditor more than once each accouni:ing year,
.E. The Accounting Year, The accounti.ng year sha 11 be twe 1 ve tl.lll
calendar months, The accounting year rnai' be e!:>tabl ishe.d by
SUBTENANT, provided SUBTENANT has notified CITY in '.uitirlg of the
accounting year to be used. The accoill1ting year shall be d~e-;::e,1
to be ~pproved by C1TY unless CITY objects to SUB~'[N!JiT' S
selection in writing ~ithin sixt)' (60) da)'s of receirt of
SUBTENANT'S .,rritten noti fieat ion.
In tr~e event:. SUBTENANT fails to establish an accounting ye.ar of
its choice, regardless of thE Ci:HlSf!, the accounting year shall be
synonymous 'With the twelve (12) 1llDntl'l pet'iod iollo ... ing
co~encement of this SUBLEASE,
Once an accounting year is establ.lshed, it shall b~ continued
through the term of the SUBLEASE unless CITY speci! ically apr-rove.s
in writing a different accounting year. CITY shall approve a
change in accounting years only in the event of undue hardship
.being placed on either the SUBTENANT or CITY, and not because of
mere convenience or inconvenience.
c. Financial statements and AuJ!it by CITY. Within ninety (90) days
after the end of each accounting year, SUBTEN~~ shall, at its o~n
expanse r submit to CITY a balance sheet ann incoJ!le statement
prepared and audited by a certified Public Accountant, reflecting
business t~ansacted on or from th& PREMISES during the preceding
accounting year. The Certified Public Accountant must attest that
the balance ana income statement submitted aTe an accurate
r~presentation of SUBTENANT'S records as reported to the United
states of Merica for income tax purposes. At the same tiae,
SUBTENANT shall submit to CITY a statement certified as to the
accuracy by a certified. Public Accountant wherein the total gross
receipts for the accounting year are classified accorcting to the
categories of business established for percentage rental and
listed in Clause VI (COUSIDERATXON/RENT) a.nd for any other
business conducted on or from the PREMISES. The City Auditor ~ay
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Accept alternatives to the above Certified F>ublic Accountant
audited statement provided that in the city /I.uditor~s sole
opinion, the alternative provides SUfficient aSSUTance that the
financial statemene accurately reflect ~usiness transacted on or
from the PREMISES.
All of SUBTENANT'S books of account and records .and supporting:
source documents shall be made available to CITY'S representatives
at any and all reasonable time durinq the te~ of this SUBLEASE
And vi thin two (2) years after expiration O~ termination of this
SUBLEASE, for the purp.:')se of determining the: accuracy of the
monthly statements of sales and monies received, and rent due and
paicl to CITY.
Notwithstandinq the previ~us paragraph, the full cost of any such
audit by CITY, as determined by CITY, sh~ll be porne by SUBTENANT
:if either of the following condit.ions exis1;s:
1. The audit reveals an vnderpaYlr'.ent of more than t ...... o percent
(2\) between the rent due as reported and paid by SUBTEN1VfT
in accordance with this STJBLE~SE and the rent due as
determin€od by the audit; or
2. SUB1'ENANT has failed to ll'laintd.in true ar,d complr.::te booKs,
records, account.s, and supporting source documents in
accordance .... i th subpa.r3graph A above. The adeq\lacy of
records shall be detE!;TT.lined by the city Audit.or. Otherwise,
C1TY shall bear the cos-t of any such ~\ldit.
upon the request. of CIT't I StiBTENANT shall promptly provj.je, at
SUETENA.."JT"S expense, necessary data to enable CITY to fully comply
'With any and all requirem.e.nts of the stat.-e of calitornia o't' t.he. united
States of America for information or report.s relating to this SUBLEASE
and to SUBTENAl"'T~ S use of the PREMISBS" Such da.ta shall include, if
required, a detailed breakdown of SUBrEN~~'S use of the PREMISES,
and/or a detailed breakdown of SUBTENANT's receipts and expenses.
XIV. SECURITY DEPOSIT (RL 13.0) S
A security deposit in the SUllI of one thousand dollars ($1,000.00)
sholl be provided to CITY by SUBTENANT. The security deposit shall
take one of the forms set out be 10 .. ' and shall quarantee SUBTENANTtS
full and faith-tul performance of all the terms, covenants, .and
conditions of this SUBLEASE.
A. cash.
B. The assignment to CITY of a savinqs deposit held in a financial
institution in Santa Clara or San Mateo County acceptable to CITY.
At a minimum, such as.signment shall be. evidenced by the delivery
to CITY of the original passbook reflecting the savings deposit
and a 'l«itten assignment of said deposit to CITY in a fone.
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approved by the Real Property Manager..
C. A. 'Tiae Certificate of Deposit from a financial institution in
Santa Cla~a or San Mateo County wherein the principal sum is made
payable to CITY or order. Both the financial institution and the
tOni! of the certificate mu:st be approved by the Real property
Mana.ger.
D. 1>. Let.ter ot Credit or other ins~rUllle.nt of cre.dit from a financial
institution, subject to regulation by the state or federal
government, pledging that fund necessary to secure performance of
the SUBLEASE terms, covenants, and conditions, are en deposit and
~yaranteed for payment, and agreeing that the funds shall be trust
funds securing SUB1'ENAlrr'S performance 8!ld that all or any part
shall be p~ id to CITY or order upon de;r.and by CITY. Both thp
fina:"lcial institution(s) and the form of the instrument{s) tlJust
be ?ppro· ... :d by tne Real Property Manager.
Regardl~ss of ttl€: foT.~ in .... 'nich SU81'ENA. ... n ele-cts to rca},e saJd security
deposit" all or arJY portion of the principal S' .. BT, shall be availablp
'Jnconjit)_.;)rt~}.ly to CITY for carr~cting any defal<lt or brE'_ach 'Of this
SL:S"'E'ASL ii1CUtTed by CJTY as a l':€:sult of the faihlL"e lJy SDBTEHANT, i.ts
successcr.s 0:' assic:p's, t.{.., faiLhfully perfcr.'n a',l of thE! terms,
co'!en.:ints, .3r,d condi ticns ot th is SUBLZASr:. Should SUU'I'BNANT elect
t.o provide a 'Tima Certifi.-:'::cte of Deposit, Letter of Credit, or other
instr\.l!llent ot credit. hereinafter collectively referred to as
"rNSTRT)ME~T", to fulfill the S.2CUl"ity deposit requirement::; of thfs
SURLEA,S'E, tfle rNSTR~[NT shall contain a provi sion .... hereby the
institutio:"1 lssuing the INSTRt.J'Y.EN'r agrees to provide crr'! ~'ith writlt!n
not ice uf its intent: not to rene .. the INSTRUMEN'I' at least thirty PO)
days prior to e:<pirat ton or termination of the INSTRUMENT. If
SUBTENANT has not provided CIT:' w':'th ~n acceptable alternate form of
security deposit at least ten (10) days prior to expi:.-atioil or
termination ~! the INSTRUMENT, CITY may demand and obtain from the
institution ~ssuin9 the INSTRUMENT, the amount secured by the
!~STRUMEST as satisfaction of the security deposit provi~ion of this
SUBL£ASE.
Should SUETEl'iANT elect to assign the savings deposit to CITY, or
provide an alternate IN'STRti'MENT, to fulfill the security deposit
requirements of this SUBLEASE, the assignment, or issuance of the
IN'STRL"HEN'T shall have the effect of releasing the depositor or
creditor therein from llabil:i.ty on account of the paynlent (If any or
all of the principal Sll:cl to CITY or order upon demand of CITY. The
aqreement entered into by SUBTENANT with a finan~ial institution to
establish the deposit necessary to perr.it assignment or issuance of
a certificate as provided above, may allow the payment of interest
a~cr~ing on account of the deposit to SUBTEN~~T, or order ..
SUBTENAliT shall na ntain the required security deposit throughout the
SUBLEASE term.. Fa lure to do so shall be deemed a detault and may be
grounds for immed ate t.ermination of this SUBLEASE.. 'rhe security
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deposit shall be r-ebated, reassiqned, rele.ased, or enljorsed t.o
SUBTENANT or order, as applicable, at the end of the SUBLEASE te~,
provided SUBTENANT has fully and faithfully performed each and evf!'r.y
tera, covenant, and condition of this SUBLEASE.
stJBTENANT at its elo.-P'2:nse shal1 perfon:: all interior maintenance and
repairs including. but not limited to; pl~ing. painting; light bulb
and ~llast replaceae.nt, windo'W glass replace!!!ent, floor treatment,
draper.t and e.arpet cleaning, door and ... ·indow hard ..... are replacement l
aa'kinq of keys (a.ll keys shall be ordered irolll. and by CITY. and
charges for all >o:.e)'5 in eXC(1;SS of the-inital tloJO provided .... ith this
SUBLEASE shall be billed to ~;UBTENA.}H) 1 space. heater or any other
StJB'!'E'NAN'1' installed heat i rq!~it'" cond i tioning syst'C!:"'J inter ior pest
control and any sp~C'i.al securit!'/fire devises.
CITY sholl ~ res:p;Jns.il:.'~e fer 2):t.~rj,)r 7';;.i.ntenance and :repdi.r. of the
~tructure and :~air. supp:-,r7_ S't·~t .. :-::-, .i.ncludir1? ::uof repair, r.'...3in
electrical sy~te~ repa~r. e'(~p~iot pe~nting ~nj structural repairs
required to ~eep the PRE~IS~5 in d co~dition suitable to satj.sly th~
purpose of t1l~ Sl'BLL~.g~. fic' .. :e'.'.-·!-in the e'ien:. J:rF'.r the es'Cit'ated cost
of repair e:-:cee-os tift'.' pe:CC~iir:_ (50%) of the ex,::,ec,.,toed remalning futuro:!
ir,ca-me t.o CITY urde_! -th is $\...;BLEASE { CIT\{ r:.ay decide not tn !':,ake SlJch
repairs. In the e\'ent Clr~ decides not to cake such repairs, and if
SUBTEN'ANT chooses not 'to r=:a)' . .c-such necessar-y ::repairs, t.his aqreement
.shall ilT.;!!",ediately tern:inate ",nd 5t::eTE:.'Aln 5 1". a 1 1 forth'Nith vacat.e the
PREMISES. (:1'1'y I 5 dec-isior, sbal1 1::'.~ give.n to .s'-~BTENANT in writing
within ten [lO} da)'s fro~ the occurrence of d~~age.
SUBT£.."'fANT expr25s1y agr-ec::i to .~aintair: th.e PREMISES in a safe, clean,
..,hole-sollle l ana. sanit.~r'i condition a.nd in substant.ial repair to the
complete satisfaction of CITY and in compliance with all .;:.pplicable
laws. SUBTENANT further agrees to provide approved containers for
trash and garbage and to keep the PREMISES free and clear of rubbish
and lit.ter. CITY shall have t.he right to ent.er upon and inspect the
PREMISES at any time tor cleanliness and safety. Notwithstanding the
above prQvisions, SUBTENANT shall be responsible tor da~age or repair
to PREMISES or any of its support syst~ms resulting fro~ SUBTENANT'S
use of the PREMISE.S and not occasioned by norlllal wear and tear,
includinq glass brea~aqe.
Stj13TENANT sh.all designate in ""'riting to CITY an on-site representative
who shall be responsible for the day-to-day operation and level ot
.aintenance/ cleanliness I and general order.
If SUBTENANT fails to caintain or make repairs or re:placements as
required herein, CITY ~ay notify SUBTENANT in writ,ing of each failure.
Should SUBTENANT fail 't.o correct the: situation .... ithin a reasonable
tiae thereatter, as established by the Ci ty Manager, the Real property
Manaqer ~~1 maker or cause to be made, the necessary corrections and
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the cost t..h,ereof, including l:Jut not limited to the ccst ~f labor,
materials, and equipment and a ! if teen percent (15') cha.rge fer
admir.istration ana overhead, shall be paid by SUBTENANT 'Wit"-hin ten
(10) days of receipt of a statenent of the cost from the ~e31 Prope~ty
Manager. CITY may, at its option, choose other remedies available
herein, or available by law.
XV!. CONSTRUcrlON AND/OR ALTERATION BY SUBTENhltT (RL 15.1) NS
A. ~~sent. No structures, i~provements, or facilit~es shall
be cons.tructed, erected, altered, or l1ade wit.hin the PRDUSES
without the prior _Titten consent of City Council if required by
City of Palo Alto procedures or o~dinances, or otherwise by the
City Manager. Major revisions ""ill l!lso require pr-ior .rit-te!'!
approval by DISTR.ICT 4nd/or State Architect. Any ccnditions
celating to the manner, ~ethod, design, anj constructio~ of the
structut"es l il:lprovernents, or fa,:;ilitle-S p-stabl.lSneO by CITY,
District and State Archit~ct shall be conditions of ~his clJuse
as tl"',ough originally stat.:;!d h.erein. SIJ8Tt~A~;'r ;':.31', ~t <,,_ny t.i!:ll:'
and at its sole expense, in~tall and place b~siness fixture~ and
equipn\ent within an)' l:Juildir.q ('Of1stl""u.-;ted by ('ITI', provldvd suer,
fixtuxes and inst;;.llat.ion hi:ive been t'e'.'i -:',.ed ~T1d .8pp"o'.'(,d by the
City Hanager f or desigi~ec.
B. Strict Compliance .... i th Plans aDJ ___ $.9_§, __ 9 __ iXicdt igJ-, __ ~, ~ll il!pro'."'€l:::cnts
constructed by SI)BTENA..:.'fT within t.he P:KEM1SE5 sna.ll be constn.lcted
in an efficient and \o'ork:nanlike 'Clann~r and irJ str~ct copoliilnce
with detailed plans and specific,)tions approved by t~; .. city
Council if required by City of Palo Alto pro:.eduI"t'$ or 0rdir.ar,c'lS
ot" other-wise by the City Manager, or-DISTRICT ccsigne"3, and
applicable city of Palo Alto code~ and ordinance5.
..... Certificate of Insp~ction. Upon cotcpleticn of con:;truction of any
building, SUBTENANT shall submit to the Real Property M~nager. a
Cc.rtificate of Inspection, verifj'ing that the construction 'Was
completed in conformance ~i~h Titl~ 20 of th~ california Code of
Regulations for res,idential construction, or in confol"J!li5nce ..,ith
Title 24 of the California Code of Regulations for non-residential
construction.
All improvements constructed, erected or installed upon the
PREMISES must he free and clear of all licns F clai~s, cr liability
for. labor or Th!!literial, CITY may at its option r.~q'J.ire SHB'!E.NA.~""
to remove bll subtenant-constructed improvements, including
restrOO11l facilities, upon termination of this SOBL!J\SE.
Title to all equip~ent, furniture~ furnishings and trade fixtures
placed b~( SUBTENANT upon the PREMISES shall l"e-main in SUBTENAlfr,
and replacements, substitutions and rnodi!i.::ations thereof -mai· be
made by SUBTENANT throughout Hie tert:1. of this SLJBL~SE. SUBT£N;.NT
may L"eIilOve such fixtures a.nd furnishings upon termination of this
SUBLEASE, provided that SllB-rENANT shall repair to the satisfaction
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of the CITY any d~maqe to the PREMISES and improvements caused
by such removal ana; provided that ~sual and customary lighting,
plumbinq and heating fixtures may remain upon the PR..EMISES~ should.
CITY elect to keep said improvements, upon termination of this
SUBLEASE.
XVI. SUBTENANT'S ASSURANCE OF CONSTRUCTION COMPLETION (RL 15.2) S
Prior to commencement ot construction of approved fac.ilities, or any
phase thereof, within the PREMISES by SUBTENANT, SUBTENANT shall
furnish the Real Property Manager I evidence that as.sures CIty that
sufficient monies vill be available to complete the proposed
construction. The alllount of such assurance shall P'e at least the
total esti~ated construction cost that vas submitted to and approved
b"t C!TY in acco:cdance with this SUBLEASE. Evidence of such aS~Hlranc-e
shall take one of the fons set out below and shall guarantee
SUBTENANT'S full and faithful performance of all of the tens,
covenan~s, and conditlons of this SUBLEASE:
A. Compl~tion Bon~j
B. Perforll.lanc-e, labor and ;nater"ial bonds , s.upplied b~' Sl;BTENA.."ITfS
contractor or contractors, provided the bonds 3:re i'2-su'i:~d :!~)ir~tl'f
to SU5'rENAl;'T and CITY i
C. Irrevocable letter of (,a'edit from a financial institution; oc
D. Any co~bination of the acove.
All bonds and letters of credit must be issued bj' a company qual ified
t,o do business in the State of cal :i.fornia and be acceptable to the
Director of Finance and City Attorney, All bonds and letters of
credit shall be in a ,torn acceptable t.o the Director of Finance and
city A.-ttorney, and shall insure faithful and full observance and
performance by SUB'I'ENA."l'T of all of the terms, conditions, covenants,
and agreements relating to the construction of ir.provements in
accordance with plans approved. by CITY as set forth in this SUBLEASE.
XVII. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS (RL 15.4) S
A. APtal pestruction. In th~ ev~nt the PREMISES or a substantial
portion thereof are destroyed by any cause that renders the
PREMISES unfit for the purposes designated in Clause III (REQUIRED
& OPTIONAL USES) and if the PREMISES are so badly daMaged that
they Canl"lot bE. repaired within ninet.y (90) days from the date of
such d.amage, either party may terminate this SUBLEASE by giving
to the other party written notice within thirty (30) days of the
occurrence of such dal1l,aqe. After such notice of tennination has
been given, rental (excepting per~entage rental, if any) shall be
prorated to the date SUBTENA. ..... T actually vacates the PREMISES which
shall be no later than thirty (30) dQYs from the givinq of ~he
notice Qf termination.
B. ~d Partial Destru.; .. 1;)._on. If the PREMISES are partially
destroyed by any cause j.nsura):lle under fire insurance with a
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standard extended coverl!lige c~sualty endorseJr.ent and the destroyed
portion. can be rebuilt or repaired within ninety (90) days froll!
the date of destruction, CITY shall repair the damage or
destruction with reasonaDle diligence. In such event, this
SUBLEASE: shall I"aain in full force and effect; ho'Wever, until the
destroyed PREMISES are repaired, rental (excepting percentage
rental, if eny) paid by SUSTENANT to CITY shall be reduced in the
saae proportion that SUBTENANT's square footage is reduced DY such
destruction. However there shall he no rent abatement or offset
should the damaqe or destruction be caused by SUBTENANT, its
employees, agents or oontractors.
C. Hon-Insured Partial Destr1Jction. If the PREMISES are partially
destroyed by any cause not insurable by fire insurance 'With ar~
extended coverage casualty endorsement ~ut tha PREMISES can still
be used for the purposes designated i." Clause III (REQUIRED &:
OPTIONAL USES), SUBTENANT may, at its option, terrlinate this
SUBLEASE unless CITY CQcU',tence!'J rebuilding Ol," repair of the
destt'oyed portion of the PREMISES within 90 ddyS. from the date of
destruction. Ho",'ever J there shall be no rent abatel'ilcnt', or offset
should the d"'t:l.nge or destructIon be caused b~; SUBTENANT, its
eeployees, agent,s or cont:oactOTS.
Such t"ln!!i;,,!,Jtion by SUB'I'ENA .• '-a shall be accolllplished by giving CITY
...-ritten notice of termination not sooner than ninety (90) days nor
later than one hundred {lOO) days after the occurrence of such
damage or destruction. This SUBLEASE shall terminate on the date
SlJch not ice of termination is given to CITY, If CITY accomplishes
such n;:.pair-or if SUB'rENANT fails to exercisE: its option to
terminate, this SUBLEASE shall remain in full force and effect,
however I Until the destroyed r'REMISES are repaired, rental paid
by SUB'I'ENANT to CITY (excepting percentage rent, if any) shall be
reouced i.n the saNe proportion thllt SUBTENANT'S SUBLEASED s.quare
footage is reduced by su~h destruction. However, there shall be
no rent abatement or offset should the dam3ge or destruction be
caused by SUBTENANT, its employees, agents or contrac'tors.
Glass breakage shall not be deemed a p~rtial destruction within the
.eaning of this clause~
XVIII. AS BUILT PLANS (RL 15.5) S
Upon cOlTl:pletion of any Inajo/:" SUBTEnAl'1T-constructed irrtprol,lements,
SUBTENANT shall provide the Real Propez'ty Manager with a complete set
of reprocll.lcible "as built plans!! reflecting actual construction within
or upon the PREMISES. SUBTENANT shall also provide the Real Property
Manaqer with a state~ent signed by SUBTENANT under penalty of perjury
certified AS to accurac}' and of actual construction costs for all such
impr-ove.m.ento .
.xlX. OWNERSHIP OF IMPROVEMENTS (RL 16.0) S
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All i_prove-menta constructed, erected or installed. upon the PREMISES
.ust be ~ree and clear of all liens, claims, or liability £or labor
or aat~rial and shall become the property of CITY. at its election,
upon expiration or earlier: ter:=ination of this SlJELEASE and, upon
City's election, shall remain upon the PREMISES upon termination of
this SUBLEASE.
Title to all equiPlHnt, furniture, furnishings and trade fixtures
placed by SUBTENART upon the PREMISES shall re'!!lain in SUBTENANT, ana
rep lac ... nts I 5ubstitutions and modifications thereof may be made by
SU'BTENANT throughout the t.ers of this SUBLEASE. SUBTENANT l1Ia~" rel!ove
such fixtures arrd furnishings upon te.n::aination of thIs SUBLEASE if
SUBTENANT is not then in default under this SUBLEASE, provided th~t
StJItT!::!oiANT shall repa.lr to thl! s~tisfaC'tion of CITY any damage to the
?RD(XSES and illlproveJI!!!nts cause:d by such r~Jtoyal and provided that
U$u!t;l and custoa.!l:-Y lighting I plumbing and he:ating fixtures shall
remain upon tha PR~ISES lipon ten:lir.ation of thi~ SUBLEASE.
W.itt'. re .. p,,=,_ct. to the exist(_!nce 0::" use of uH..!.zardous Yoa.terials" as
tiefirled in 31 (Aj of the Cen':::l.-al Conditions, Cl't'Y repr:-esent.s to
Sl'ET::~,;jiT tr.J ti'€ l~€ .. t of CIT/iS };nc.v ... ·ledge as ot' the d~t.e ()f eX!!cution
of ttl is ,stiBLFJ\SE and bas€:j on no other ir,quiry than (i) info~ation
recei· .. ed fro-:J LhE Palo Alto UnifiEd School District, the caster
l~ndlord of ~he subleased Frenises, and (ii) the makinq and
eXa>!ination of a study of thE'_ subli!ased pTP-:rr.ises undertaken by Dynamac
Cor:PQration "'i t-h respect to the existence or non-existence Cit friable
and non-(r ia1J 1 e asbestos and asb-astos-t:ont~ in ina construction
r.:atez-ials/ th~t the subleased pt'e!:'lises is in CO!:1.pliance ""ith all la ..... s
regulating t~e n~nd)inqJ tran~po~tation, storage, treat~ent. use and.
dispositioJ"l of Hpz.ardol.ls l"."ter-ials, including asbE!stos and aSDestos
cont4ining c~nstruction materials.
XXI. UTILITIES (RL 17.1) NS
St;'1il'EtiAHT shall provide and pay for all telephone. equipmerlt and/or
~~rvices to th~ site.
XXII. INSURANCE (RL 18.0) S
SUBTENAh'T shall maintain insurance acceptable to CI'l'¥ in full force
a~d effect tr,ro\lqhcut t.he te:r!1! of this Sublease.
Mlnisqm Scopa of Insurance
Cpverage shall be at least as broad as:
1) Insurance services Office Coamercial General Liability
coverage (occurrence form CG COC1).
2) Insurance Services Office forn'!. number CA 0001 (Ed. 1/B7)
covering Automobile Liability, code 1 (any auto).
3} WDrkers t cOJllpensation insurance as required by the State of
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Califo~nia and Employer's Liability Insurance.
~) Course of Constructicr. insur-ance fOT3l providing coverage
fer -all risks· of loss.
The policy or poli~ie:;: of insuran.ce :::loa inta ined by Su"'BTDUw.'\T shall
provide the following li~its and coverages:
(1) WORKIJIS'
CQIIPENSATrON
KINI~JM LlMITS OF" LIA!HLIT'i
Statutory
(2) COKPRmENSI\rE Bodily Injury $1,000,000 ea.
Sl,OOO,CQO 02a.
$1,('('10,000 Ea,
person
occurrenc:e
o:.;currence
PI
AtrnMOSILE
LIJ-..BILITY, Property D~cage
including owne1,
hjr~d, and non-o~ned
auto~o~iles
COX.PREHEN S I\' E
GENER;t,
1,L;'BILlr.r'i
including: .F-r{)tH~:l"ty [l.a.l"'~lH!e
products and Personal In)Ur")'
carople~ed operations,
broad torm contractual,
and persollal i~jury.
$1,000,00[: ea" ?ersan
$1,00!),000 ~B. occurrence
$1,000,000 agqreg5to
~l,ODO,OOO ea, occ~:rence
$1,000,000 ea, occurrence
(4) fIRE LEGAL
LIAB.TLITY
$500,000 Said su~ :~epresent5 the
est itat~d cost ot" the iro.prove .... ent.s end
fixtures: within ti"1£: care, cust.od,' and
control of SUSTENAb~, Said s~ shall be
subject to anmH.l revie .... by I..ESSORis Fis'r.
}I!,!;naqer to insure that coverage is adequate
to cover changes in t.he repJ.ac.e.ment cost of
i~proveftent& and fixtuTes ~ithin the car~1
~stody and control of SUB1'ENA..'lT.
Peductible5 and ~~lf-I~sured Retentions
Any deductioles or sal f-j nsur€:d retentioi's r.;:'",&t. be. declared to and
appl"OVea by the CITY. At the c'ption of the CI'l'Y either: the insurer
shall reduce or-elininate su~h aeductibles or selt"-inslJl.'ed retentions
as respects the CITY/ its officers , officials, employees and
volUl'!teers; or the SUBTLNM"T shall procure a bond guaranteeing
pay:ent of losses and related investigations j clai~ administration
and defense expen$~5.
Insurance ~ha.ll be in full lon:e and effect comcencing on the first
day of" the term of this Sublease. Each insuranct= policy req\.lired by
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this Sublease shall contain the following clauses:
1. "Each insurance policy required by this clause shall be
andorsed to state tha.'t coverage shall not be suspended,
voided, canceled by either party, reduced in coverage or in
limits e~cept after thirty (30) days' prior written notic~
by certified ~ail, return receipt re~ested, has been giv9n
to the CITY."
2. "All riqhts of subrogation are here-by 'Waived aqaini't the
CITY OF PALO ALTO and the members of the City Council and
elective or appointive officers or employees, when actinq
within the scope of their emplo~ent or appoint.ent.-
"3. The CITY OF PALO ALTO and the PALO ALTO UNIFIED SCHOOL
DISTRICT are named as additional insureds.
4. "iThe CITY t its Clffic.;:rs, officials, er..ployef:s, agents i!r,.:l,
volunteers are to be covered as insureds ,'s ToS'spects =
liability arisin'3 out of activities per-fon::.ea by or on
Pl!half of the SUBTEfU\NT i product.s and co~rletE!d opera tions
of the SUBTENl'1..NTi premises m .. ned, o.:::c-...;pied or used by the
SUI!:'l~EJ.iA....~l'i 0'-auto;-::obiles o'","l"1eci r leased, hirc.j or b':'-rrl'J.ed
by the SUBI'ENA.'i'T. The cover:age shall contain no spec.:i!'.l
limitations on the scope of protection afforded to th-a
CITY, its officers., officials, employees, agents or
Yoluntell:rs. ~
5. "For any claims related to this Sublea~e, t.roe SUBTf' .. ~A.N1"s
insurance cove~age $hall be primary insurance as respects
the CI'I'Y, its officers, off ieia \5, employees, agents and
volunteers. Any insurance or self-insurAnce maintained by
the. CITY, its officers, offjcia.ls i employees, agents or
volunteers shall be excess of the SUBTENAN1" s insurance and
shall not contribute ~ith it.M
6. IIAny failur-e to comply with reporting or other prOVisions
of' the policies including hreaches of lrf~rranties shall not
affect coverage providad to the CI~~, its officers,
officials i employees, agents or volunteer5.~
7. "The SUBTENANT1s insurance shall apply sepa~etely to each
insured against .... ·hom claim ios. made or suit is brought,
except with respect t.o the limits of the insur€rls
liahl11 t l' ••
Insurance i3 to be placed with insurers ""ith a CUITent A.M. Best's
rating of no less than .r;.: X,
XXIII. INSURANCE (RL 18.2)
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SUBTENANT agrees to deposit with the Real property Manager, on or
before the effective date of this Sublease l certificates of insurance
necessary to satisfy CITY that the insurance provisions of this
Sublease have been complied with l and to keep such insurance in
effect and the certificates therefore on deposit with CITY during the
entire term of this Sublease. Should SUBTENANT not provJde evidence
of such required coverage at least three (3) days prior to the
expiration of any existing insurance coverage I CITY may purchase Buell
insurance/ on behalf of and at the expense of SUBTENANT to provide
3ix Donths of coverage.
CITY shall retain the right at any t111e to revtew the '::overage/ toni
and amount of the insurance required hereby. If. in the opinion of
the Risk Manager, the insurance provisions in this 5ubleas~ do not
provide adequate protection for CITY and tor memnBTs of the public
using the PREMISES, the Real Property Manager ~ay require SUBTENANT
to obtain insurance sufficient in coverage, fornI, and a:rnount tCl
provide adequate protection as deter:cined bJr' tha Risk Ma.nager.
CI'l'Y/S require1:lents shall be reasonable and shall be, designed to'
assure protection from and against the kind and extent of risk which
f'!xists at the bmE: a change in insurance is (~quired.
'I'he Real ProplO'.rty Manager shall not ify SU8'!'ENANT in · .. ·r;l ting of
change:> in the insurance requirements. If SUBTENA.NT does not deposit
copies of acceptable insurance policies wit.h CITY incorporating such
changes yithin sixty {EO) days of receipt of s~ch notica/ or in the
event SUBTENAlIT fails to maintain in effect any required insul'ance
coverage/ SUBTENANT shall be in defau 1 t under this sublease ~'i tnout
further notice to SUBTENAN'f. Such feailure shall constitute a
material breach and shall be grounds for imr-:ediate tcrr.'lination of
this Sublease at the option of CITY.
The procur-ing of such required policy or policies of insurance shall
not be construed to limit SUBTENANTIS liability hereunder nor to
fulfill the indemnification provlsion and ;requirements. of this
Sublease. Notwithstanding the polic:r~ or policies of lnsurance{
SOBTENANT shall be obligated for the full and total amount of any
daMage, injury I or loss caused by or connected with this Sublease or
with use or oc~pancy of the PREMISES.
XXIV. ASSIGNING, SUBLETTING, AND ENCL~BERING PROHIBITED (RL 19.1) S
since C!TY ha~ relied on the specific background and capabilities of
SUBTENANT in awa.rding this SUBLEASE r 2liny mortgage, pledqe{
hypothecation, encumbrance/ transfer, 5uplease, or assign::ent
(collectively referred to as ENCUMBRANC£) OI SUBTENANT'S interest in
the PREMISES, or any part ot' portion thereOI, is prohjbited. Any
attempted ENCUMBFANCE shall be null and void and shall confer no
right I title, or interest in or to this SUBLE}.SE,
If SUB'I'ENAN'l' hereunder is a corporation or an unincorporated
association or partnership. tl"~e ENCUMBRANCE ot' any stock or interest
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in the corporation, association, or partnership which r in the
aqgreqate over any consecutive two-year period, exceeds twenty-five
percent (25\:) shllil1 be deemed an assignment within the meaning of
t.his cl&use~
"XXV. DEFAULT IN TERMS OF' THE" SUBLEASE BY SUBTENANT (RL 20~O' S
t Should SUBTENANT default in the perfor.mance of any covenant,
condition, or agreement contained in this SUBLEASE and such default
i. not corrected wit.."lin thirty (30) days of receipt of a notice of
default fro. CITY, CITY say:
~. Ter.inate this SUBLEASE and all rights of SUBTENANT and thoae
vho claim unde.:r:-SUBTENANT, stemming from this SUBLEASE: shall
end ~t the time of such termination;
e, At, cn'x"s sole option! cure any such default by perfomance of
any act, including payment of money, and the cost thereof, plus
reasonable ad!l!inistrathre cost, shall become .i."c:unediately due and
payable by $UBT8NA};T to CITY;
c. ~·~eK an action or suit in €!quity to enjoin any acts or things
Which cay be unlawful or 3n violation of the rights of CITY;
D. Seek a mancta"lfJU5 or other suit, action of proceeding at la ..... or in
equity to enforce its rights against SUBTENAN1' and any of its
officers, agents, and employees and its assigns, and to compel
it to perforl!l and carry out its duties and obI igations under the
law end its covenants and agreements .... 'ith CITY as provided
herein; or
E. Pursue an~' .other re::ledy aVailable .by law or specifica l1y
provided in other clause . ..;: of this SUBLF.ASE.
However, in the event of a default ~hich cannot reasonably be cured
within tbirty (30) daysj SUBT~~ANT shall have a reasonable period of
tL.e (as determined by the city Manag&r) to cure the default. Each
~d all of the remedies given to CITY hereunder or by any la~ nQW or
here-atter enacted, are c·.l11lulative and the e.xercise of" orle right or
reaedy shall not impair the right to cr'rv to exercise any or all
other r8lledies, In case any suit, action 01' pI""oceedinq to enforce
any r19ht or exercise any remedy shall be brought or taken and then
cliscof'l.tinued or abandoned, the.n r and in every such case, CITY' and
SUBTENA.··~T sha.ll be !'"es"tored to it.s and their former posilion and
riqbta and remedies as if no such suit, action or proceedings had
.been Drought· or t.-8ken.
In addition to a violation or creach of any o~her provision of this
SUBLEASE, SUBTENANT shall be considered to be in default uncler this
SU.5LEhSE should 3UBTEN"J..N'r:
A. voluntarily file or have involuntarily filed against it .s.ny
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petit.ion under any bankruptcy or insolvency ,""ct or ll!wj
B. be adjudicated a bar.kruptj or
c. attempt to t'liake a qenera 1 asslqn:l!ent for the benet it of its
creditors.
XXVI. LIKl7ATIOH Of rriE SUBLEASEHGLD (RL 22.0) S
This SUBLEASE and the rights and privileges granted S~~TENANT in and
to the PRDUSES are subject to all co'{enants, conditions,
restrictions, and physical or legal encuAhrances, including these
which are set out in the Sep~eftber 1, 19a9, SUBLEASE and Covenant Not
To Develop (SUBLEASE) by an::l between DISTF.ICT AND CrTY. (" copy of
t.he SUBL:D.SE is on tile at 250 ~a~ilton Ave:1ue, City Hall, Real
EstatE: Division, for YOLlr revie ..... ) Nott-dng cc:nta.ined in this
SUBLEASE or i:-: an\' do.:::::uz:.ent :o-elated hereto sha] 1 be construed to
i:tply the COrl"€-i'ari"c.e -r.o Sl..T.BT~~':;J',·-; .::::.l rights in the PREMISES .hich
exceed those ()· ... ncd by Cr'''l,
XX"'l r:. l"JTICES (F.L 2].0) S
~,11 r.cticf'.s, stOlt,e::'Ents, de:: _",r~ds, r,:-guc ,;ts, C:0n5€Tlts, appro .... als,
au'tJ1or .lZ~l,: HlnS, otters, ,)g: c.:;~el1"_s, 3pp·:)i r,t:,,"_p.nts Oi:" design~t ions
nereul":der given by either paTty to the othel':" , shilll be .l.n writing and
shall be suffi:::ient)~· gi .... en and served upon the ot"risr party if (1)
personally -served, (2, s~nt by l:nite1 St~tes r:~rtifi~d cail, postage,
prep~id, (ll sent by exp~Kss delivery service, or (4) in the case of
a facsi::lile, it sent "to the telep~lcne nUr"1be~"s) set forth b.elow
dl.lring non:;al busin~5s hours of' th£! recE-iving party and follow~d
..... ithin 45 hours by del i\lery ot hard cOP'! of: tht:' m~te2:'ial s(mt by
fZ!ll,,'sillile, in acc'"Jrdance 'With {l), (2) or (3) abDv~, Personal
service shall include., without li.itation, service by delivery
service and service by fa.csimile tr~nslllis.;sion. Delivary of notices
properly addressed shall O-e del;!led complete when the notice is
physically delivered to th~ Real ?rop~rty Manage~.
All notices pursuant to this SUBLEASE shall be addreEsed as set forth
below or as either part.}' may subsequently designate by writ-een
notice,
TO: =
Re~l P~operty Ma~ager
City of Palo Alto
P.O .. Box 10250
~50 Hamilton Avenue
Palo Alto, CA 94303
FA-X: {4.15} 329-2468
\.Oith a copy tc:
TO: SUBTENANT
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City clerk: City of Palo Alto
P.O. Box 10250
250 Haailton Avenue
Palo Alto l CA 94303
FAX: (415) 329-26';6
and
City Attorney, City of Palo Alto
P.O. Box 10250
250 Haailton Avenue
Palo Alto CA 94J03
FAX: (415) 329-2646
XXVIII. A1"TACHH-.~ TO SUBLLASE (RL 2~.O; S
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'I'his SUBLt:ASE includes the folloi.'ing e~hibit.s, \'-'hlch :!ire at-tache-d
haretc. and by t-his :t'f!'ference in~orp::rated into this SLr~LE.>.SE:
Exhioit A -General CQndition~
Ex.hibit !3 -DeSC1"ipt.icn of SLlB-LF.Asr:n Pl':"c:::,ises
E.xhibit C -Rental P<1J'1!icnt Stater:!!!l1t
Th~ inclusior. of clauses in Exhibit ,., (GE..~EF.AL COND!TI0NS) is not, in
any way intended to lessen the iDlporten.r;e of these clauses, but is
merely done to en."i1anc.e the organizat,ivn of v~dous clauses l1.nd th.ls
SUBLEASE.
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IN' WITNESS WHEREOF! the parties have executed this SUBL~SE tlll:i day
and year first aboy~ written.
CITY:
CITY OF PALO A!:l'O (CITY)
B1 :-:-:-___ _
Mayor -------
ATTEST:
BY: -;;c==-;==--------City Clerk
CITY OF PALO ALTO (CITY)
APt'ROVED AS TO FOF'wV,:
Bi:~--~~~--~~~~~~Sr. Assistant City Attorney"
RECOMMENDED AS TO FO~~:
By:~-----~~~---~----Manager r Real Property
RECOMMENDED AS TO FOR.lIoj;
BY:~~~~~-c---_ City Auditor
RECOMMENDED FOR APPROVAL:
By:~ __ ~_~ ___ ~~ __
Director, Community Services
SUB'I'ENANT;
8Y: .. /'\.~
',,-
L
PU,,/>pJT)
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EXll.IBIT 1,
GENERAL CONDITIONS .. DEFINITIONS tRL :2'1.1) S
CITY shall mean the City counr.i 1 of the city of Palo Alto, is
municipal corporation.
The city Manage~ is hereby authorized to take any actions under this
SUBLEASE on behalf of CITY except for termination of this SL~LEASF.
Clauses in this SUBLEASE refer to specific officers or employees of
C1TY. Should these positions be eliminated or the title changes, it
is understood and agreed that such refet"ences shall be considered to
be to the ne'",' title for renali';ed positions or to the replacement
official de:signated .,\;ith the responsibilities of any ~liminated
cositian. AllY reference to a City offic8r or employee includes a
~e!erence to the officer's or employee's design~ted rapz·esentative.
:? PAJtI"NE:RSHI?!CORP':-:'AATE AUTHORITY [. LIi\BILIT'f (RL '27. 2} .,
If SUBTEN1JiT is a partnership, eacn grnera] partner:
'A. represp-nt::· and .... '"H·rants that the partnership is a duly qua 1 if led
pa-rtner-ship authorized to do business in Santa Cl.ara COllntYi and
B. shall be Jointly and se.verally liable for performance of the
ter~s and provisions of this SUBLEASE.
If SUHTUI;'JiT is a cot'poration, each individual signing this SUBLEASE
on behalf of SUBTENANT r~pre$ents and '...:arrants 'tr..atj
A. he is duly auth~r ized to do so in accord.:'.nce oo'i th an adopted
Resol.ution of SUBTENA.N'l" $ Board of Directors or in accordance
witrl the Bylaws "f tt,e corporation; and
B. SUBTENANT is a duly qualified corporation authorized to do
business in-State of California.
As used in this STJBLEASE, the term tI SUBTENANT II shall include
SUBTENANT. its agents, sub lessees , concessionaires. or licensees, or
any person actirH] under contract with SUBTENANT; however r the
definition of SUBTENANT u~ed he:rein, shall not be construed to
authorize or permit any sublease or licenses not authorized or
permitted elsewhere in this SUBL~~SE.
3. T!ME (RL 27.3) S
Ti1':1€ is of the es~ence of this SUBLEASE.
EXHIBIT A
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It. .'CCESS '10 PREMISES NS
SUBT£NANT agrees not to obstruct the sidewalks, entry passages/ or
halls o!h"ld .. "ill use tne sa!:le only as a mee.ns of passage (rom its
respective .!!rea$. SUETEN}I..N'"T and its o:.mployees and invitees shall
~.I!ve the right, in cor:n.rnon with ether persons, to use d:civeways and
parking areas located on the propertj' provided that such use shall be
subject to such reasonable rules a~d ~e9ulations as may fro~ time to
time be adopted bj.' CITY.
5. SIGNS (RL 27 ... ) S
SL"'BTENA."=T agrees nat to construct, r.:aintain, or allew any
placed upon the PP.E.."".:ISES except as r.ay be "pproved
Un~pprcved signs, banners, e~c. f ~ay be re~oved by CITY .
sign to be
by CIT'!.
.si.:BrE:~;.:'':;' Slldll ;:" r"8ql1in.d ~o obtc;i.n any anj all. pe;-"i!.s <Jr.d/o·r
licE~ses ~~~ch ~ai tc ~equirej in connection with the operation of,
<Hi:' ::lr.'/ ':>:r::;C":-2j :;t":~,Tr:i.!.~;r CI)r1st!llctiol1 l.lpO:l, the PR::!~ISr.S as set
(ortl'"1 tTl -::r.~s ~:;:i.'3L.E:.:.:::"::::.
SUE--r-E~~'!"";T s;'-31l at .all t1:-es indE';:nity and ;save CITY har::-:less fror:)
aU clai;::s for lab::Jr or -:::aterials supplied. in connection with
cons'::ructicn, replllr, alterdtion, or installation of structures,
i~prcve~ents, Equip~ent. or facilities within the PREMISES, and from
the c~st of defending against such c!ai~s. including attorney fees.
$1JBTE::'\~;7" srjall provid.::-CiT', ' .. 'i1:.h at least t.en (lO} days ..,'ritt:en
notIce prior to co~~ence~ent ot any wQr~ whicil could give rise to a
~Echanic5 lien or stop notie~. CITY reserves the right to e~ter upon
!=lPE."!IS£S fo~ the pur-pcse.s of post ing };ot ices of tlon-Responsibi li ty.
In the event a lien is i~pos€d upon the PREMISES as a result of suell
construction, repa.i!"', alteration, Ot install.ation, SUBTENANT shall
eith~r:
A. Record a valid Release of Lien; or
B. Deposit suft icient c.)sh with CITY to cover the ampunt of the
clairo er. the lien in question and authorize pa:rrnent to the
extent. 0: said deposit. to any sursQquent. judg!.~ent holder that
!:lay arise .as a natter of public record from litigation with
regard to lienholder claimj or
c. Procure and recc:rd a Lond in accordance wi th SeC1::ion 3143 of the
Civil Code, ... ·hich releases the PREMISES from the clail1l of the
li.e:l fro". any actLo!, brought to foreclose the lien.
EXHIBIT A
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Should SI]STENANT fail to acco:::;plish or.e of ttle
'Within fifteen (15) days after tt-.e filing
SUBL.EAS£ shall be ir: detaul t ar.c:1 ;:lay be:
ten6.i.nation.
three optional actions
o!" such a' lien, tne
subject to i~~ediate
8. SUBLEASE ORG].NJ:ZA'l'ION AKD RU:LES OF CONS'!1U.:.:-T!ON (RL 27.7) S
Words of the masculirle ge:'lder shall De deez::ed and construed ~o
include correlative ..... ords of the fe.oinine and. neuter genders, Unless
the context otnerwise indicates, ~c~ds imp~rting the singular number
shall incluae the plural nu::ob'!.'r .and .... ice versa, ar-:d words impo::-ting
persons shall include corporations and associations, including public
bodias, ~s well as natural persons.
The terms "hereby", 'lhereof", "neretol'l, "herein", "hereunder" and any
similar terns, as used in this ag!:-ee~e;--~t, refe:::-to this dgree::ent,
All the te:c!":$ ~nd provisions 'lI~nl:;:.'f Shdl 1 b? c~~struej to effcctu<1.t:€
the pl1rpos""s set f0Cth h':-;'-02ir-" dnj to sllsta',n t I'_~ '.'<11idj.t)' het"~of.
The titles and hE3d~ngs of t~~ ~~~·~8~S of ~hi5 !?!'eE~ent 11a\'e ~een
In5cr~ed t~r convenie~c~ o~ ~~:Er~~:e 2~: d~~ r:=~ tc t~ consjde~Dd
a part her-€0f ar::l: S:-:':> 1 : n:_'"-:' :;: :' '~".:!' .. '
terns of pro~"i$icns he~e~f ~r ~e ~:'~sij~r~
construing this agrea~8nt
intent I it any quest_ i on of
or 91\'~n rin~" effect In
h~reQ! in asce~tajni~g
9. AMENDMEN'l'S (RL 27.3) S
This Sl'BLEASE ~'2t_s f0rth all of ':.1'1-':; <!r;:ref':-:-;:':-Jts Ci.r,ci unde:r~tandir:qs of
the tlarties ar,cl ar>y ~0,:::l.ir:i·::.:lti"o\,",. rust be ',,~ittcn a\,d ptoper-ly
executed by both parties.
10. UNLA"'FUL l1S;: (RI. 27.9) 5
SUBTENANT agrees that no i~"prove:'"ie!'"its shall ce erected, I;>laced upon,
operated, roar rna intained ,"'i thin the ?RE~ISrS, nor any bus ines5
conducted or carried on therein or theretro~, in violation of the
terms of this SUBLEASE I or of any regulation, o~der of law, statute,
or ordinance of a governl:lental c.gency t-.aving jurisdiction over
SUBTENANT'S use of t.he PREMISES.
11. NONDISCRIMINATION (R!.. 27 "10) S
SUBTENANT and it.s o=:mployees s.'lo311 net discrininate against an>' person
because of race, color, religion, ancestry, age, sex, national origin
or physical handicap. ,SUBTL~";NT s:'all not. discriminate against any
employee or appl ic.!nt for e;:.ploYr.:l~nt because of race, color 1
reljgion, ancestry, sex, age, ~atic~al oLigin O~ physical handicap.
SUBTENANT covenants to !':'cet ali requi:re:-".ent.:.; of H,e Palo Alto
Municipal Cede p€Ltair,ing to nondl.~,cri:-::inatJon in €r.-.ployr.,ent. If
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SUSTENANT is tound in violat,ion of the nondiscr it:ination provisi<?D of
tl".e State of California Fair Employment Pr;1ctices Act ·or siT:lilar
provisions of fedeL'al law or ex-ecuti ve order in ~he condur.t of its
activities. under this SUBLEASE by the State of CaliI<Jrnia Fair
Employment Practices COJMlissic.n or the equiva lent t~deral a.gency or
officer, it shall thereby be found in default u.nder-this SUBLF..ASE,
and such default shall constitute 21 mater 1a1 breach of th is SUBLEASE.
CITY shall then nave the pa .... er to cancel or suspend this SUBLEASE in
whole or in part.
12. INSPECTION (RL 27.111 S
CITY'S employees and agents shall have tLr. right at all reaso:oable
times to in5pect the. PREMISES to de'ter~ine if the provisicns of this
SUBLEASE are being complied ~jth.
13. HOI,D HARMLESS (RL 27.12) S
StlBTENhNT hereby '1o.'.;tiv!.:"s alJ cla.i~.s, liabilit),' 3~d :r~CO\lrse '~9air:st
CITY including t.!!~ right of cor'ttrib\..lt"~ion f<.;:.:: le·s'S W1" -d<3.,,:",,~qe (;·t ,:;r too
persons or prope-rty <lrisinq fro::"l, 9ro'''''~~'I';l' cut of Dr li) o,~;/ ' ... ."J f '
cannect!2:d t.oIitl1 or related tCJ this aqrE.'e:-ent. sr..:s:; ?;;;";:"[' ht>):".'?t,\" i':'::r;:~E-5
to indemnify, hold hatl~les3 Jnd defend C~T',', L::-<". offi...::e::~, :!':::'",:1-::':~,
.and ep,p1Co'lE;>,es; against any ,loa u11 cle.i:-',s, li~;_,ilit.'.:, ';)'2-'?'-:"':;
damages, cost, expenses or attorneys' fees i!=-.i.s:ng oU',~ or tJiof:
operation or rnaintel~ance of the pro~e~ty describc~ herein or
SUBTEN.zu.l"rl S performa.nce ot" !.c,n. perfc:rr: cHIC€ 0 f tl,f' t er:-:5 (It: t:'"1 is
SUBLEASE. In the event CITY is r1al':1E'd as c::;-de~ ""ndar:t. SUBTES-.!"ST
shall notify CITY of s~ch fact and shall rer~esen: CIT~ in such leg~:
action unless CITY undertakes to represent itscl! as co-def~nddnt :r,
such legal action r in !,ItJ ien E'vent S1.m'fLti.;'~jT' Sh.3 ".1 pay tc CIT;.' 1 t_s
litigation costs, expenses and a.ttornc;,.'s! fees.
14.. TAXES AND ASSESSMEN·rS (RL 27.13) S
This SUBLEASE may create a pos5eSSOr)' inter-est '1o.'hidl i z sub"j ect to
the payment of taxes IlP,-vied on such interest. It is understood and
agreed that all ta>:es and assS"ssments {including but not liJ:lited to
the possessory interest tax) which becoj.,e due and p,:}}'able upon the
PREMISES or upon fixtures, equipment, or otner property installed or
constructed thereon, shall be the full responsibility of SUETENi".-.NT
and SU'BTE.."tANT shall pay t~le taxes and assesstlE'nt,<; prior t.o
delinquency.
1? SUCCESSORS IN IN'I'EREST (RL 27.14) S
Unless otherwise provided ii, this SUBLEASE, the ter;:ls, covenant~, and
conditions contained herein shall apply to and bir.·j the heirl;;,
successors, executors r administrators. and assigns of all the parties
hereto r all of 'otJha]":'", shall be jointl~' -'lrd :';evel-. .'d~y lLibie tj{:Tf~unde!".
EXHIBIT A
25
16. CIRCUMSTANCES WHICH EXCUSE PEF.FOR"'iANCE (FORCE Mt .... JEUI.U::)
(RL 2?15) S
If either party hereto shall be delayed or prevented from the
performance of any act requ~red hereunder by reason ot acts of God,
restrictive governmental laws or regulations, or other cause .... ithout.
fault and beyond the control of the party obliga.ted (financiel
inability excepted) I performance o.t such act shall be excused for the
period of the delay and the period for the performance of any such
act shall be extended for a period equivalent to the period of such
delay.
17. P.1L'q;TIAL INVAI.;IOITY (RL 27.16) S
If any term, covenan~! condition, or provision of this SUBLEASE is
determined to be invalid, ,,'Ola, or unenfQr(.;~ablc, by a court of
competent jurisdiction, the rernainder of the provisions llereof shall
rc~.ain in full force and effect and 5hal.1 in r~o ",ray be affected,
i~paired, or invalidated thereby.
18. WAIVER OF RIGHTS (RL 27.17) S
The failure ot CIT~ or SU~TENANT to insist upon strict pe~forDan~A ~f
any of ~he terms, covenarlts, or conditions of this SUBLEASE shall not
be deemed a ' .... aiver of any right or l-e:7,ed~' thot CIT'i or S115Te:i'JlT r:ay
have, and shall not be deemed a waiver of the right to require stric~
performance of all the terms, covenants, alid condjtions at the
SUBLEASE thereufter, nor <1 ... ·aiver of any remedy tor the SUbsequent
breacIl or default of any term, cover'lant, c.t' condit~on of the
Stl!3L~SE ,
19. COS'!'S Of SUSTAINH,.G AN ACTION FOP. BREACH OR DEFj\ULT (RL 27.18} S
In the event either CITY or SUBTENANT com .. il1ences legal actioil aga.inst
the other claiming a breach or default of this SUBLL\SE, the
prE:v~iling party in such litigation shall be entit](!rJ to recover from
the other cost of sustaining such action, including ree;sonable
attorney fees, as may be fixed by the Court.
20. RESERVATIONS TO CITY (RL 2?19) S
The PREMISES are accepted l-as is lt and IIwhere ist! by .sUBTENANT subj ect
to any and all existing easements, and encumbrances. CITY reserves
the right to install, lay, construct, maintain, repair, and operate
such sanitary se' .... ers l drains , storm water sewers, pipelines,
manholes .• and connec.tionsj water, oil, and gas. pipelir.es; telephone
and telegraph power linesi and the applications and appu:..-tenances
necessary or convenient for connection therewith, in, over, upon,
through, across and along the PREMISES or any part t.here.of, and to
enter the PREMISES for any and all such purposes, CITl' also reserves
the right to grant franchise5, easem€nt.s, rights of way, and per-:-:lits,
-'~
EXHIBIT A
26
in, over, upon, through, across I and along any and all portions of
the PREMISES. ?-io right reserved by CITY in this clause sha 11 be so
exercised as to interfere IJnreascr.ably .... ·i th SUBTENANT'S operation
ht!reunder.
CITY agrees that rights grlllnte.d to third parties by reason of this
clause-shall contaln provisions tl1at the sllrface of the land shall be
restored as nearly as preacticable to the original condition upon t.he
completion of any construction.
21. HOLOING oVER (RL 27.20) S
of the PR.EMISES
shall not be
from month to
and: covenants
In the event SUBTENANT shall continue in possession
after the-tern of the SUELEASE', such possession
considered a renewal of this SUBLEASE but a tenanc:l
Donth and shall be governlO'd by th~ conditi..cns,
cont.air.e.d in this SU8t.£..:\SE.
22, C,-~~;[J':'TIO:l 01" PRDllS[S ;:r Tr-iE TI~:£ OF SUBLEASE (NS)
'''' the cc::.:-e:-I;;:9.-ent 01 UH~ SU8LEASE, SUBTENANT sh.a 11 accept the
i::· . ..li.ldi.r-,gs ,:one. i\:"pro'le:-'\e:~t.s ar.(~ any eq\.l~l;..r\€'.iit in theix existing
c:Jr.ditio-:-l a;-.d stnt.e of repel ~r', ')nd Sl:r-rrEN . .;nT o::grecs that :10
Te~resenta~ion5, state~ent.s, Qr ~arranties, express or implied, ha~e
be-en ~.c!d.e by cr on beha 1f of cr'!'!' i:1 cespect thereto except as
conta~ned i~ t~~e provlsiorls of ~his sublease, and CITY shall in no
event pe liable for any latent. defect.s.
23. CO.'WI'1'!Ol: OF Pf.:Ei'115ES l:~O:-; '£ER'1It,'.';TIO~l (RL 27.21) NS
L1pOr: ter::-,i.r.ation of this Sl'BL£AS'E, -2XC€P-C 03.$ otr.er;..oi~e -:;,.greed to
h~.rein, SUETENANT shall redEliver pos;;.esslon of the PHnlISES to CI'IY
in su.pstantially the saf.\e condit.ion t.hat existed i:r ... -nediately prior to
Su~TL~ANTts cccupancYI reasonable wear and tear, flood t earthquake,
"'a:r, and any act. of war excepted. Upon termination of this SU8LE.ASE~
CITY m~y require SUBTENANt to rerr.ove interior walls and/or any other
improvements constructed by SUBTENANT.
24. DISPOSITION OF "8)1.NDGNED PERSONAL PROPERTY (RL 27 • .22) S
If SUBTENJo.NT abandons thE' PREM!SES or is dispossessed thereof by
process of law or otherwise, title to, any personal property .belonging
to SUBTENANT dnd left on the PREMISES forty-five (45) days after such
abandonr.::ent or disposses::.ion shall be deer:-.ed -:'0 have been transferred
to CITY. CITY shall have the r-ight to remove and to dispose of such
property without lia.bility tr • .;refor to SUBT'ENA.N'r or to any perscn
claiming under SUBTENANT I and shall have no need to account therefor.
2.5. QUITCLAIM OF SUBTENANT I S nITER.EST UPON 'TERHINA'l'ION (RL 27.23) S
Upon '\:.E:!:'::"i.r.at.i.o{'l of tbis SU8LEriSE for any re21S0n, including but not
EXHIBIT A
27
limit.ed to t.el?'linat.ion because of ~efault by SUBTENhltT,. SllaTEHAHT
shall, at CITY'S request execute~ ackno .. ledge and deliver to Cll"i
within five (5-) days after-receipt of !""ritten d2::1and thereof, a good
and sUfficient deed \orhereby all rights, title, and interest of
SUBTOI'AA7 in the PREMISES, is qaitclair.-,ed to CIT'!', Should SUBTENANT
fail or r-ctl..lse to deliver tr.e !"e1ui::-ed dee? to CIT'!:·, CITY r.tay prepare
and record a n~t.ice recitina the failure of SllBTENANT to execute,
a::Jcno'Jledge !lnd delh'er such -deed and the notice sh.lll be conclusive
I!!'.·idence of the teI-.::.ination of t;.~,is StJS:::.FAS£, and of a) 1 right of
StTB't'£RANI' or those clalr:::ir,g under SUBT£~lANT in and. to the PREMISES.
2~., CrTY~S RIGHT TO RE-::::NTER (RL :27.24) S
SUBTENANT agrees to yield ar,d peaceably de.liver possession of the
fREJ'1lSES to CITY on the date ("t ter:,"",ination of this SUBLEASE/
wh~tsoever ~he reaso~ f~r 5U~~ :er~inatlon.
IIp:;,r. givir;.:; ',,':ritr,cn ::'2,ti,:'~ C~· ;,:,~~ -':~l~t.i.:::n ~o S[.'BTFt,';'.NT, CIT'i shall
ha~e tnr right t~ re-2~~~: a~j ~~\: ;=sse5:~cn at the PRf~ISES on the
date such te=:-ilidt. iDn b"c,::,-c's iC ~ (,Co::: i '.'f' .... j t ~10',)":. ! urther: no:;.;t ice of allY
~:ir.:i a:;:j \ ... : i the,u': ,_. -,t c'J!' C t .rE:'j U l.:!, l.e':3"a 1 proceedings,
7er:-i;ld F_ic .... , e:f t~".· c,i __ ~',' .. ~-'.~.S'Z a:,.j ::~-~fl1..r;: of t.he 1'8:E.'-:1SES '0:1 CIT!;'
sn,:!lJ. 1." (\0 ·,,"a'; e',lte:o:-c:: c;.:::,!;-, •. ~_, <'J."~; ,:tliga~~cn. cf SLJgTEH."'>t~'i' I..mdc!;'
t~0 Sl'B'f~SE ter~s ar.~ -~!:~ ~~~s:i~~re ~n ~CcR~t~nc~ or surrender.
Sl.:B7Z!,';":;:;:-' ',,:Oil'/E:S an~.' <0r,o ,""!2'
or futu:re 1.0.... or S":ct.',.J:f'
dispossession af th~ ?Y~~lS[S
enters and la~~ull)' re-t~;:e5
rlqh:s ot re~e~?tion under any
l~ t~€ 8';ent at eviction
(e: an~' ~eason 0r ~n the event
;:;S~~~slon r~ thE· ?RE:~IS~S,
existing
fro;:, or
CIT!' re-
SUB1'ENA..~l' · .. -arr-:lnts anci coven,:!r,ts th.:!t r:,:) eff ieial or employee of CITY
nor anI bUsiness entity in ~hich a~y official or e~ployee of CITY is
i!""t~rested: (l) r.as been e::.plcyed Or' retained to solicit or aid in
the pr¢c-.::ring of t-his agTec::,:,ent; .n· (2} \,Ii11 be employed in the
perfcrmance of thi~ agree;":',ent ""lthc~t the divulgence of such fact to
C!T'f. In the event that. CITY deter:;:inc£ that the EmployP.ent. of any
such official, '!!mployee 0(" business entity is not co:npatible .... 'ith
such official's or e~ployee's du~ies as an offlcial or e~ployee of
CIT"\{, SIJBTENANT upon =-eques."":. of Cl T'{ sha 11 in:::ediate-ly terminate such
e~plcYltent. Viola-cicn of this provision constitutes a serious breach
of this SUBLEASE and CIIY :::-:3',0' ter::"inate this SUBLEASE as a re::::ult of
such viOlation.
28~ EMINENT OO"..AIN {RL 27.26) S
In the event Lhe whole or any part of ~he PREMISES are condemned by
a public entity in the l.J' ... ·ful exarCls.e of its power of eminent
aO'l"~ain, this SUBLE..;SE shall C,,;}3e 2,3 -::0 the pa.r!..:. ctJnae:'1necl. T,'ht~ date
of such ter~j~ation shail be the effe2tive date of possession of the
£XHJBI·r ;..
28
whole or part of the PREMISES by tl1e condc~nil"lg pUblic p.::-,tity.
If only a part is condemned and the conde~n~tion of that part does
not substantially impair the capacity of th;o l"er::a..inder to be used for
the purposes required hi' this SUBLEASE, SUBTEKA..':T shall continue to
be bound by the t.en~s, cC'ver.ants and conditic;1So of ttllS SUBLEASE.
Hows.ve.r t the then current minil:'.ut: annua 1 rent !iha 11 b€ reducac! in
proportion to the relationship. that the c:o:'!::pe-n<;ation paid by t.he
condemning public entit)' for the portion condp.:"':1.ed bed:r& to tt;,'i.'! value
of t.he entire FROnGES 1I.3 of the date of possE's~ion of t.he part
condemned. rt the c:.,ndelDnation of a part of the ?R.QnSES
substantially il'!'.pairs the capacity of the re::::3inder to .be used tor
the purposes required by this SUBLfASE, SUBT[N;.~.7 r.;ay:
A. Teroinate :;.his S'JBLEASE and thereby t.e atso1ved or cbUgat.io1'ls
und~[' this SUBLEJ..SE ... ·hicl1 h"ve not dCC!"Ur=.j as of t:-~~ d~te of
possession by the cO)lde~ning p'~bli~ e~~l:)'; ~~
B. continue to cccup)' the TC .... J.l;lir.q E':'~:::~:':;;:'::::' ::r .. :: c;::,!.-"L:: ~:::~;~:il'.>":
to be bound by tr,t) t.2r-s, (:·::·\'e.'1a~ts arc::: ':~-,::~.~, "" ;:.': -:t:is
SU9LEh5~. If 5l!BTr:~,'A~~;'· e12<::::; t::: co.",':.~:·I·;'" ;:~ ;:-·:'s";·,-;.~>.;r: o!' thot'
rCr:':aindet" of the PRE:-~lSLSf '.:.i:o:: ~~'r.",.;, ".J"<:~'r .~.~;-.'.:~ :-:-.:.r'~:.:L:;-'
rental shall ~e rej~cpd in pr~~c~~lO' 7·~ r~:~~)~· sh~? th~~
the co~p~nsatlon ~d)d b~' t~iC cc~dernLr:l ;~tll= ~r~'i:; ~or t~c
part ccnder:med i>~u[.s to the value of ~r:e er,x:.l~e 5··:":S; .. E.~.S:::I)
PREX1SES as of the date of pos5e~sion b~ ~~~ c~~dc~~jng pllbiic
entit.y.
SUBTENANT shall pn;vide :IT':r:' '",'i::'h ... ·ritt6f1 /1·.:.::c:e .cd'.'!s;r::; CITY cf
SUBTENANT'S choiCe ~'Jthin thirty (.30) c:.'""l":;~ ;)! ::-':SSf.:"';~-.:~~·n c: ·,he f-i"l!."""7:
condenned by th~ conde~ning rublic en~~t~'.
CITY shall be en~itled to and shall r~ceive all CO~~~n5!tlon related
to the condemnation of all Ol~ oart of t[l.e PRE:--:IS[S b',' tr:e exercise of
emine.nt dor;.:ain except that SL'8rL~ANT shall ce e-ntitled to '(.h~~
portion of the cot:lpensation which l"et=:!" s::> 2;)tS the ValliE' ot tt-.t:
SUBTENANT constructed ij'!1prove~ents for the P;>:".~iT1d.er ot the-SUBLD.SZ"
tenc, The amount to .... ·hich SUBTENANT shall be entJ. tIed sha 11 not
exceed the actual cost of improvi2i'llo:o:nt.s constructed oJ" SttSTEN,\J;r
reduced in proportion to the relationship of the re::,~in.ing SUBLEASE
term to the original SUBLEASE tern, using a sLraight line ap~roach.
29. CHAN'GE"S IN PRICE rNDICE:S (RL 27, 27} S
Clauses contained in this SUBLEASE: !,,:,~ay provide; fet" ddjust=enr. :based
on -the Ccnsumrar Price Index, component indices, or oth~r indices.
Should these indices be changed, altered or cease to be published,
the fl...lllo .... ing conditions shall appl:z':
A. If ths subject index is changed so that tt;e base year ditfe~s
fro~ that used a~ of the nonth in ~hich the tcr~ con~ences, the
E.XHIBIT ;,.
29
-----,---' -
I ~ !
subject index shall be converted in accordance. with. the
conversion factor published by the publisher of that in1ex;
B. If the subject index is discontinued or revisr::d during the
SllBLEASE term, such index shall be :replaced by another
gove:t'nme.nt index or co~putat.iot1 .... ·hich ... ·i11 obtain substantially
the same result as ~ould be obtained if the subject index h~d
not been discontinued or r.evis~d.
30. POST-ACQU1SITION TEN.Jl,.NCY (RL 2'}. 28) S
SUBTENANT het'eb!r~ acknowledges that its occupancy of .the PREMISES is
subsequElnt to aC'I"lJisition of the PREMISES b::r' CITY. SUBTENANT further
understands and agrees ti";at as a post-acquisition t~nant, SUBTE. ... ·A.,··rr
is not eligible and furthermore waives all cl~iros for re.1ocation
assistance and benefits under federal, state or local l3w.
31. HAZAFDOUS SU8S'V,,-NCES (RL 27.29'; S
K. DefInition. As u.sed hel:'ein, the ter~, ":-iala~-dous ~:.Jtc".rials"
~eans any $ub;:.t.ance. or r:,aterial '.-!hich h<J:s been Qt::terr,inec. C'j any
state, fedaral or local go'/e:rn~,er.r.al ~nlthority t:) te c<1p<:lt>lc of'
poslr.g risk of injury t!) r.ealth, saf2ty, and prop<>rty, lnci1.:di..:.')
petroleum and petro18u~ products and all of those raterials dnd
substances des_ignated as hazardous or t.oxic by the U,S.
£nv':;,ronme-ntal Protection Agency, the Ca 1 ifo[-ni a h'at<:-r-Qua Ii ty
control Soara, the u.s. Department of Lar;or, the CaJ itornia
Departnent of Industrial R~::d;jtions, the Calitornia Depilrt~€nt of
Health Services, the California Healttl and Weltare Agency in
connection ..... ith the Sate Hater and TC'I>:ic Enforc£;[;',ent ,!;t.::t ~'f
1986/ the V.$. Dep.;\rtr.lent of T!."ansport.ation, trw L!_~::;_ D,,-part:-,cTlt
of Agriculture, the U.S. ConsLl,-:"er F'L'cduct Safety Con,nlssion, U:e
U.S. Department of Health and Human services, the u.s. food and
Drug Administration or any other governmental agency no'",' or
hereafter authorized to regulate materials and substances in the
environment. Without limiting the generality of the foregoing,
the te.nu ,tHazardous Materials" shall include allot these
materials and substances defined as 'Itoxic mate-rials" l.n
Sections 66680 through 66685 of Title 22 of the California Code
of Regulations~ Division 4/ Chapter 20, as the sarr,e mal' be
amended fro~ time to ti~e.
B. .s1m~IS Use of PREMISES. During the term of this SUBLEASE,
SUBTENANT shall abide and be bDund b J! a 11 of tb::'! [ollc''''ing
rzquirem.ents:
i. SUBTENANT shall c(.Irnply .... ·i th all la'Ws nm .. ' or rlereafter in
effect relating to the use of Hazardous Materials on, under
or about the PREMISES, and SUBTENANT shall not contaminate
the PREMISE'S, or its subsurfaces, .... -itrl any Hazardous
Materials.
EXHIBIT A
30
.. _----_._--_._--
./
•
'"
ii. SUBTENANT shall restrict its use of Hazardous Materials at
the PREMISES to those kinds or materials that are no~al1y
used in constructing the Project. Dispos;"ll of any
Hazardous Materials at the Premises are str iL:tly
prohibited. storage of such permissible Hazardous
Materials is allowed only in accord~nce with all applicable
laws now or hereafter in etfect. All safety and monitoring
features of any storage facilities shall be approved by
CITY'S Fire chief in accordance with all laws.
iii. SUBTENAnT shall be solely and fully responsible for th.e
reporting of all Hazardous Materials releases to the
appropriate public agencies, when such releases are caused
by or result. frem SUSTENANT' 5 activities OT) the PREMISES.
SUBTENANT shall immediately infor~ CITY of any release of
Hazardous Materials, whether or not the release is in
quanti tie.s that It.'auld othend Sf:!: be reportable to a public
agency.
iv. SUBTENANT shall be solely and fully ~esponsibl~ and liable
tor .su~h releases. at tho.;: Pre~ises, ()~ into CITY'S se' .... a.ge or
stor!r! drainage syste;:-,s. SUBTEtt::;,N? shall take all necessary
precautions to prevent any of its Hazarcious NateriaJ.s fror.
entering int::> any storn cr se· ... ·ag~ drain sys'Ce"j ar fro17!
beine,: r-eleased en thl-:? Pre,,:,.isc';;. SUBTEtI.;N'.i.' shaJ 1 re!r1ove
releases of its Hazardous Materials in accol:"danc.;.e with all
la",,·s. In addition to all other rights and t·emedies of CITY
hereundtu, if the n~lease Q[ Hd2.a,cduus Materia.ls caused by
SUBTENANT is not ref.1oved by S113'TENAl';'T \. .. ithin nin?t.y (90)
d~ys 3fter dlscovery by SUBTENANT, CITY or any other third
pa,rty I CITY may pay t.o have the S~T:'.e removed and SUBT"FNJ,,:n
shall r~imburse CITY for such costs ~ithin fiv~ (5) days of
CITY~S de:mand rOT payne.".t.
v. SUBTENANT shall protect, defend, indemnify and hold
harmle.ss Cl't"'f from and against all loss, damage I or
liabil i ty (including all foreseeable and unforeseeable
consequential damages) and Expenses (including r without
limitation l the cost of any cleanup and remediation of
Hazardous Materials) "Which CI'ry :m3y sustain as a resuJ. t of
the presence or cleanup of Hazardous Materials on the
PREMISES.
vi. SUBTENANT'S obligation under this Cla\l.se shall survive the
e.xpiration or earlier terminati.on of this SUBLEASE.
32. ALL COVENANTS ARE CONDr-I'IONS (RL 27.30) S
All previsions of the SUBLEASE dl:"e expressly made conditions.
EXHIBIT A
31
\
13. PARTIES OF INTEREST (RL 27.31) S
int.ended to, or
person or p.e.rty
cond.i tion or
promises and
and exclusive
Hothin9 in this ag~eement, expressed or i~plied, is
&hall be construed tO I confer upon or to give to any
other th3n CITY and SUBTENANT the covenants,
stipula.~io1"5 hereo'f. All co .... enants / stipulations,
aqrauents in tt.is SUBLEASE shall be for the sole
b8n~£it of CITY &nd SUBTENANT.
34. RECORDATION OF SUBLEASE (RL 27.32) S
Heither CITY nor SUBTEN~VT shall record this SUBL~~SEi hovever, a
short-ton:! !IIe'Corandum of SllBLE}.SE may be record.ed at CITY'S request.
32
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DANCE VISIONS
RENTAL PAYMENT STATEMENT
GtO$i I/'\Come· PrO'a}(ams: Tul1:orJrenl.;.IS
MetJ'Iberst1ip$IGirt$K1ra:1ts
(see Cf.aL4t' X (Defjn"Jon .:.f GrOSS Ra::&IP~)
of Ju-Iy 1. 1994 W. d:&fiMion 01 Gross ReciHll$
-I
$-<",-"c",,,,,, II
______________ --''-_=~'1~6 ___ ,
1) ., ______ @2S~. $ ______ _
----~
2) -. ___ _ $-~------
---------------
4) ,.! ______ . ____ _ , -
,sj .. $ ___________ •. _.
6) ,,$.
----~
(A) I
I ----------1
I ;,;,~'O:~_=~~~C~,
j
iaJ ;..!,,'I:"T11."m Rer'n.al Dc,le I
•• t~·S Per"xl ltH ,. i
I 1---------,
I TOTAL Afm DUE CITY ==_= r r' _____________ ~(~A~~<B, 'Wrl:c~ tver is gre ... le:) -~~-------jl!
• Per aa~ VI {CollSid.a!~Of'JRent) 01 July 1, 19~': S",ble.l;se
e ..... !ef.$ 4,000 lor I~ Pe;-icc Ju:y 1, 19S4 I.;> D~e,1ilJel :n, , 9~
E11ler $ 4,000 ior 2nd Period JaI1uary I, 199'!!IC Ju,~e 30. , 9i5
Enler.$ 5,000 Ipr 3rd Period JuJ)' I, i 995 10 Decemter :J 1, i 995
e:n.W S 5,000 to( 4Lh Pertod JarNSJy 1, 1>;:% ~o. JiSl'Ie :!O. 'SSS
e~ler.$ 6,000 r.:;i 5th Period July 1, 1996 to De-:e,T'~~: 31, i~6
Enter $: 6,000 IOf 61/\ Per;oc! JanlJMyl, 19:371<J Jl,;r:e ':'Ll, ':H7
EXHiBIT C
I
j
,
I
-.. -. ATIACMN18
sept&mber 23, 1994 Project: ZONAR
project Nu~ber: CL 23/12-94/2
SUBLEASE
THIS SUBLEASE i.s made this ___ day of ' ( 199. ___ by and
bet~een the City of Palo Alto, a municipal corporation I (CITY) and
zohar School of Dance, lIi sole-proprietorship (SUB'fENANT).
RECITALS
A. CITY, under a Lease and Covenant Not to Develop (Lease), dated
September 1, 1989/ by ana between the Palo Alto unified School
District {DISTRICT) and the Cit)"· of Palo Alto (CITY), is
leasing the forner Cubberley High School site at 4000
Middlefield Road (Cubberley site).
B. CITY desires to develop the Cubberley cite i.nto a c:or::munity
facility including the arts and sublease a portion of it to
dance o~gaJlizatio!ls ~s pet' the cLty Council i:.pproved CL:bt:erl~~y
Haster Plan.
C. SUBTl::."'NANl' proposes to SUblease ~ portion of the Site.
NOW T:iEREf'ORE, in ccnsJdcratiun of these pl"emises, the partias
hereto mutually dgree e.s £0110 ... 's:
r. PREMISES (RL 3.0) S
Subject to th~ terms and conditions Set forth in this agreement, CITY
SUBLEASES to SUBTENANT that certain property (PREMISES) described and
shewn in '"EXHIBIT 8". E).1fIBIT B is attached tO I and by this
reference, made a part of this SUBLEASE. Approxi~ately 3,740 square
feet, identified as room L4.
II. PURPOSE (RL 4.0) S
The purpose of this SUBLEASE is to provide for the use of the PREMISES
solely for the purpose of providjng dance instruction and dance
relatea activities.
III. REQUIRED AND OPTIONAL SERVICES AND USES (RL 5.0) S
In furtherance of the purposes stated above, the following required
and optional services and uses shall -be provided, permitted or.
prohibited:
A. Requi:r.er;3 Services a.nd Uses. 'thz'oughout the term of thi S SUBLRASE/
SUBTENANT sha.11 p:rovide the follo'.ling services and act.ivities~
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To provide instructional dance and ddnce related activities.
8. Optional Services and Uses. Subject to the prior "Written approvaol
ot the city Manager, SUBTENANT may also use the PREMISES to
provide additional services And uses which are ancillary to ana
coaplltible 'With the required services and uses state:d above and
not in conflict with the required uses.
Ap~roval of optional services and uses shall be within the sole
discretion of the City Manager.
Hourly rentals JIIay he provided by SllBTENANT I UpOTl revi.ew and
appyoval of the ren~el r~te structu~e by the City's Real Property
Managoer. SUBTENM"T's hourly rental rate structure shall be
similar or c~mp3~abl~ to CITY;s fee schedule for hourly rental of
similar danc~ studio space.
C. Restl"icted Us~s. SUBTEN.~N1' agrees not to use the PRfJ'1lSE"S for an~i
ot,..h~r purpose nor to engage in, OJ:' permit, any other business
activity withi.n or from the PREMISES, not previously .approved by
CITY.
D. ProhibJ.t:?d Uses. The follu''';ing uses at"e prohibited: 1) 'I'he
s~rving and/or sale of alcoholic bcverage~; 2) conducting gaMes
of c!"ance on thl2 prenises.
IV. TEP~ (RL 6.0) S
The te~ of this SUELEASE shall pe five (5) years, cOMmencing
_______ .___ and terninatinq an __ , ___ _
v~ TERMHlA'tION OF E'RIOR AGREEMENTS (RL 6.1) S
This SUBLEASE supersedes any and all prior subleases or agreem~nts
e.ntered into hy CIT'f for use of the PREMISES. All such prior
subl~a&~s or aqree~ents ar.e null and void.
VI. OPTION TO ElC'rEND (RL 6.2) S
SUBTENANT may have the option to extend this SUBLEASE term fer an
additional five (5) years if the following conditions have been
satisfied:
A. StTBTENANT has, to the satisfaction of the City Manager, fa i thful1~'
performed each and every condition of this SUBLEASE throughout the
SUBLtASE tem. The City Manager's assessment of StTBTE'NJI.NT'$
performance shall be final and conclusive and shall be based on
information received from CITY'S staff, and others that may have
knowledge of SUBTENANT'S performancei and
B. SUBTENANT ha3 submitted to crr~, a wri~ten notice of SUBTENN~T'S
intent to extend the SUBLEASE in accordance with the terms of this
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clausa, on 01: before six (6) months prior to the elld of the
SUBLEASE term set forth in Clause IV (TERM).
CrTY .~y notify SUBTENA.."l'I' if SUBTl:J"'A..\"T'S performance has not been
accept.hIe in accordance ",'1 th subparagraph A of this clause wi thin two
(2) ..oTlth.s of receipt of SUBTEN}\NT'S notice of intent to ext2"nd this
S~~LEASS. CITY'S failure to notify ~hall not be deemed or construed
!IS crTY I S approval of StJBTENANT'S option to extend.
VII. CONSIDERATION R£h7 (RL 7.0) NS
1".Ji. consider-etion for SUBTENANT'S use of t;he PREM:ISES in accordance
'With th.~ te.'t1I.S and conditions of this S·.3LEASE. SUB'T£NANT agrees to
pay to CITY four t.hou£and one r,undred eighty-eight dollars ($4,lSB.OO)
peer :!aont.I"l. due a;nd payable in accr.n-danclo. with Clause IX (RENT PAYMENT
PR<>CE'DURE) ,
\,'II1. R£\'ISIO~ OF' RP;rALS (qI." 7. J) .'3
Tt.€ :rert <!.:.L s:::ec j:f ie,j in Claus.e VIr {Cm~S.IDEPJ\TIOUIREN1'j shz.lJ be
sllbje-ct -to J.u·tCl~.:!.ti,:: "In?')'_i'!l a.-ijust,ents l!l proportion t(..\ change;:5 i"n
the Con3u~er Price Jnje:~. All Urtan Con5u~ecs, (hase yeaT~ \98?-19S4
'" 100) fOr" San Fr",,-:isco-(3):1d.'lj-San Jc·s,e c;!S'; published by the U.S,
[\{>Farl'7:~r.'t {'Ii: ~.21!_·,.r, -P,U!,"';'<.H'I of L'lbor :.;tatistic:; Qr any :c~:placerent
index plJblished by said Bureau,
The a'jto~:.at.i<:.' adjllst=.ent shall C~ effective
c('lL'::tence~ent d~te of this SuBLEASE aild
~ccordance ~ith th~ follcwinq fDr~~la:
X Adjusted rental.
on each anni versary of the
shall be calculated in
A Renti!l at the Co:w-:.ence;nent of the SUBLEASE.
S Average monthly index tor the 12 calendar Iftontt,s ending
.ith and including the inde}t published just prior to the
month in -... hich each rental rate adjustment is to become
e.ffective.
C:JC .t"veraqe lIonthly index to!:' the 12 calendar i!lof'lths ending
with and including the. index publishad just prior to
ca~encemer.t of this SUBLEASE.
IX. R£1,"T ?AYkOlT" PROCEDURE ~RL lD.O} NS
A. On or befor~ the first day of each month, SUBTENANT shall pay to
CITY rent as set forth in Clause VII (CONSIDERATIONiRE'NT).
B. SUBTW.A}(l"S obligation to pay ~::1'nt si1all cc-r.U:lence on May 1, 199"5,
C. ~e.ntal pay~ents. s.hz.l1 be del i \lered to the Revenue Collections
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pivision, 250 Halsilton Avenue, PO Box 10250, Palo Alto, CA 9430:3.
The designated place of pa~ent may ~ changed ~t any ti:e by CITY
upon ten (10) days -.n-itt-e.n notice to SLT6TE'NANT. RE'.ntJ!o.l p~Y1Ients
NY be aac1e by checK lI-1.de payable to the city of Palo Alto,
however, SUBTENANT aS6~es all risk of loss if p~~ents are made
DY :;:ai1. 1\11 paytrlents must be acco2'_panicd by t_he rental paj'1lll~nt
coupon.
D. Accep1:ance of Late or Incorre.::-t Rent; SUBTOlJ\..NT specifically
aqreas that aceeptance of any late or incorr~ct rent~ls submitted
by SUBTENANT shall not constitute an acquiescence or waiver by
CITY and shall not prevent CITY fro= enforcing Clause X (CHARGE
FOR LATE PA~) or any other remedy provided in thi~ SUBLEASE.
X. caARGE FOR LATE P}\VMElIT (RL 11. J) S
If any payment of rent as specifi~G ir, C13u5<'! V1 I (C;:"t;SlDEP.J;.T!:ml/Rf.HT}
or of any other sun. due CIT'!:' is r,ot n"t;eiv£:d by CITY or p::',st".arked
'",ithin ten (lO} days after thi::' d'J'? d"te, -J "!i}t'." -cll~:r']e equ.1l to one
percent (1%) of the pa~ent dele ,~nd :.l;"",p,:!id f,1_\i5 an ~u:-:ir.istrfltiv~ fee
of $50.00 shO!lll be aGd~cl. to th'C ;':::',/::e7"\~_, Q.:,j tl-~e t.0tili S'J", shall
cecoo:e im..r.Hi!diately du~ an,j paj'ahle ti) err? ,\:"1 ,:;.,-:':'.1; t: f C'Da 1 cha.rge
.equal to one percent (1%) of ti"tf~ f',"l':7er",t, e:,:,:::ludi.r.,:} l;~t€ CnJrg<!5 r
shall, be added ~or e~ch additional ~onth t~~t the p3y7en~ re=~i~s
unpaid.
Acceptance of late charges and/or ar.y portion of th2 c>v~rdw:e pJ]'l:2nt
by CITY shall in no event ccnstitute a '",~~\'er of SU?TEN,)j,",!'/S aef3ult
..... ith respect to such overdue pai"1':lr:nt~ nor prevent CIT'l !ro:::"l exercising
any of the ot:her l" ights and re:-:;ecties qrantAd he:-eunde:r Or by any
provision of law.
XI. SECURITY DEPOSIT (RL 13.0) S
A security deposit in the SU::!:I of eight thousand thirty-t.·o dcll~rs
($8,032.00) shall be provided to CITY by SUBTE~}11"!'. The security
deposit shall take one of the fcr:s set out belcw and shall gu~rantee
SUBTENANT'S full and faithful performance of a 11 the terns I covenants,
and conditions of this SUBLEASE.
A~ Cash.
e. The assignme.nt to CtTY of a savings depos1.t held in a fina.ncial
innti tution in santa Clara or San Kateo county acc:ept~ble to CITY.
At a minimum, such assignment shall be evidenced by the delivery
to C1TY of the original pas~bcok reflecting the savings deposit
and a written 4ssigru:c.ent C't said deposit to CITY in a fOnD
approved by the Real Property M3nager.
c. A 'l'ime Certificate of Depcsit fre:=, a f inane
Santa Clara or San Mateo County whe~~in the pr
payable to CIT~ or order. Both the financial
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ncipal sun is made
nstitution and the
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form of the certificate !!'lust be approv2d by the Real Property
Manaqer.
O. A Letter of Credit or other instrument of credit fro~ a financi~l
institution j subject to regulation by the state or federal
government j pledging that fund necessary to secure perfor~ance of
the SUBLEASE terms, covenants j and conditions, are on deposit and
guaranteed for payment, arld agreeing: that the funds shall bP. trust
funds securing SUBTENANT'S performance and that all or any part.
shall .be paid to CITY or order upon deLland by CITY. Both the
financial institution(sl and the form of the instrument(s} must
be approved by the Real Property Manager.
Regardless of the fOrIfl in which SUBTENANT Elects to make said secur 1 ty
deposit, all or any portion ot' the principal sum shall be available
unconditionally to CITY for correcting any default or breach of this
SiJBLEASE incurred by CITY as .;s result of the failure by SUBTnlAj":T, its
successors or assigns/ to fait:-J!'ully perforr:1 all 0'::-the tE'r;"1S,
covenants, and conditions of this SUBLEASE. Should SLTE,TE~:.\--,,;-r Elect
to provide a Time certificate of Deposit, Letter (If C.cr;;dit, or cthe-::"
instrument of credit, hereinafte.r collect Lvel~' re[.-..q,"eoj to dS
"INSTRUMEN'p/ to fulfill the security deposit reqLlireren;-~-;; of this
St.iBLEASE, the H1STRUXEN-r shall contain a provision ·".'h~!r-eby thE:'
instttut,Lon issuing the n~sr.~Ul1Enr agr,:e~ t.e provjd~" CITY " .. 'it.h ',,'ritten
notice of its intent not to rene .... the ItJSTRlJMn-lT at least:. thjrty PO)
d,ays prior to expiration or terninatiol1 01' the INSTRtJ~FtiT. If
SlJBTEll'ANT has not provided CIT).' with an acceptable alternC' .. te foro ot
!Security deposit at least ten (10) days prior to e"oxpiration or
termination ot: the INSTRUMENT, CITY may det:land and obtain fro~ the
insti tution issuing the INSTRlfHENT, the:: aMount secured by the
INSTRUMENT as satisfaction of the s€c'.lrity de~osit provision of this
SUBLEASE.
ShoLlld SUBTENANT elect to assign the savings deposit. to CITI', or
provide an alternate INSTRUMENT/ to fulfill ttl(~ security deposit
require.ments of this SUBLEASE, the assignment, or issuance of the
INSTRUMENT shall have the effect of releasing the depos itor or
creditor therein from liability on account ct the payment of any or
all of the principal sum to CITY or order. upon demand of CITY. Tne
agreement entereci into by SUBTEr~ANT wit.h a financial institution t-o
establish the deposit necessary to permit assignment or issuance of
a certificate as provided abova, may allow the payment of interest
accruinq on account of the deposit to SUBTENANT, or order.
SUBTENANT shall maintain the required security depQGit throughout the
SUBLEASE term. F-ailure to do so shall be deemed a default and ztay be
grounds for immediate tencination of this SUBLFASE. The securitv
deposit shall be rebated, reassigned, released, or endorsed to
SUBTENANT or order, as applicable/ at the end of the SlIBLEASE ter~,
provided st,'BTENAN'!' has fully and faithfully performed each and ev€ry
tern, covenant/ and condition of this SUBLEASE.
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XII. MAINT~~ANCE AND REPAIR (RL 14.3) NS
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SUBTENANT, at its expense, shall perfon all interior mainterlance and
repairs including but not limited to; plu~binq, painting, light pulb
and ballast replacement, window glass replacement, floor maintenance
and replacement. drapery and carpet cleaning, door and ~indow hardvare
replacement, space heater or any other SUBTENANT installed heating/air
conditioning syste~ repair and replace~ent, interior pest control and
any special security devises.
CITY shall be responsible for exterior maintenance and repair of the
structure and main support systems, including roof repair, main
electrical system repair, exterior painting .and strlJctural repairs
required to keep the PREMISES in a condition suitable to satisfy the
purpose of this StJ]3LEASE. However in the event that tht! estimated
cost of repair exceeds fifty percent (50\) of the expected remaining
future income to CITY under this SUBLE.~SE, CITY nay de.cide not to ::!lake
such repairs. In the event CITY decides not to make SLlch repairs. and
it StJBTENAl.fT dl.oQses not to make. s'.lch necessa.cy repa i1':'"" this
agreement shall imJ:"lediately terminate and SlJClTENA.NT shall vacate the
PREMISES by a mutu2111y agreed upon pr:riod. The CITi' shall also be
solely r(':sponsible for rekeying locks and issuing ne' .... Qr additional
l<' • .;;-ys (cost for re:}:eying and ke]"s shall :be billed to S{ISTEN),J,T at cost
of ~atprials and labor, and it done by CITY ~n ad~itional 15% overhead
shall te added to cost) and leek repair.
SliaTEtlANT expressly agrees to 1llaintain the PREMISES in a sa-fe, clean,
.... holesom€, and sanitary condition l'.nd L., substantial repair to the
complete satisfaction of CITY and jn compliance with all applicable
la .... :.:. StTBTENANT further agrees to provide-approved interior
containers tor trash and garbage and to keep the ir.ted.or of the
PREMISES free and clear of rubbish and litter. CITY shall have the
rlght to enter upon and inspect the PREMrSES at any time for
cleanliness. and safety~ Notwlthstanding the above provisic-ns,
SUBTENAN'I' shall be responsible for clam3ge or repair to PREMISES or any
of its support systems resulting [rom SUBTE'.rJANT'S use of the PREMISES
and not occasioned by normal wear and tear.
It SUBTENANT fails to maintain or ~eke repairs or replacements as
required herein, CITV may notify SUBTENANT in writing of each failure.
Should SUBTENANT t~il to correct the situation within a reasonable
time t..1-Je.reatter, as established by thE! City ManagElr, the Real property
Manaqer may make, or cause to be made, the necessary corrections and
the cost thereof, iflc:iuding but not limited to the. cost of labor,
materials, ana equipment and a fifteen per-cent (15%) chiirge for
administration and overhead, shall be paid by SUBTENA.J{T within ten
flO) days of receipt of a statement of the COGt from the Real Proper-t.y
Manager. CITY may, at its option, choose other remedies available
herein, or available by law.
XIII. CCi'~S'!-RUC1'rON P.ND/OR ALTEF'.ATION BY SUSTENANT {RL 15.1) NS
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S~.)llT~M'T shall construct so·und \oI'alls between room L3 and L4 and
1.4 and L5, in ~ccordance ",·i th detailed plans and specifications
AS appr-oved by the city's Real Property Manager, constuction of
the ltfalls shall be ccmpleted within t"ll.net:{ days of the
co .. ence.ent c_t' this SUBLEASE.
CITY'S consent. No structures r impr-ovemt!nts, or facilities shal]
be constructed, .erected, altered, or made within the PREMISES
without the prior written consent of City Council if required by
City of Palo Alto procedu.res or ordinances, or otherwise by the
City Manaqer. Kajor revisions will also re.quire prior written
dpproyal by the Palo Alto Unified School District and/or State
Architect. Any conditions relatinq to the manner, method,
design. and construction of the structures, iJ1provenents, or
f"acilities esta.blished by CITY, DistriGt and state Archite.ct shall
be conditions of this clause as though originally stated herein.
SUETEN"-h"T ~ay, at an), tir:;e and at its sole expense r install and
place bu~ine~5 fixtures and equipment withi~ any building
constn.iC'ted by CITi', provided such fixtures and installation naV2
been r-,",vie;.oed and <lpp!:"oved by the City ~anager.
C, Strict Cc~pliance \"'ith. PlajlS arid Speciti(:.3tioils, All ir.tpro'/ements
c':J.:l~t!:\lc.ted b"j Sl.H::,T£~;Al;T ·,.;itr._in the PRDaSES shall be const·cucte.d
i:1 ~n ef!:iciC'nt alld prci.essi.onal rcannel' and in ,;;ti:"ict cOo:llJliance
'.>lith actailed l='lans -)(10 spp_cificati·:ms approved by the Cit.y
Coul1cil if required by City of Palo .1>.lto pr-ocedurc.c:. or ordinance.;;
0(" otrl~rwise by the City 11anager I or d.esignee r or DISTRICT
Jesignee, ar.d .'!Ipplicable City of Palo Alto codes <:\nd ordin~nces,
U. Certificate of Inspection, upon completion of ccnstruction of any
building, SUBTE~AN7' shall subr:'lit to the Real Property Manager, a
Certif icate of Inspection, verifying that the GOlistruction "Was
cODpleted in confor~ance with Title 20 of the California code of
Regulations for residential construction, or i.n conformance with
Title 24 of the California Code of Regulations for non-resi<:!ential
construction.
:1 All iltprovements const,ructed, erected or installed upor. the
., PREKISES must }:Ie free and clear of all liens, claims, or liability
t for-lat-or or catariaL CIT'f inay at its option require SUBTENANT
to remove subtenant-constructed interior walls upon termination
of SUBLEASE.
Title to all equip~ent, furniture, furnishings and trade fixtures
placed by 5UBTENANT upon the PRU'llSES shall remain in 5UB'I'ENAN'1',
and replacements, substitutions and modifications thereof may be
_ados by SUSTENANT throughout the term of this SUBLEASE. SUBTENANT
J'lAy remove such fixtures and furnishings upon termination of this
stJBLEASE, provide.j that SUBTENANT shall repair to the satisfaction
of the CIT\, any damage to the PREMISE'S and ir,1provements caused
by si..1.ch re::',Qval and i provided that usual and custcoary 1 igtlt.ing,
plumbing and. heating fixtures shall rer.:ain upon the PREMISES upon
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ter.ination of this SUBLEASE.
D. Prior to comaenceaent of any .. 'orr., SUBTE:NAN"!' shall pay the amount
of any increase in pre.miUlls on insurance policies provided for
here-in because of endor-s~l:IIent5 to be !!lade l-:::over ing the risk during
the. c.ourse ot ....-orl(. The SUBTENANT shall ha\'e the option of
providing its Q;.'n const't"uction insurance for the. added risk during
the course. of t.~. ,",ork. In addition, if thE-estimated c05t of
vork shall exceed One Thousand Dollars ($1,000.00), SUBT£NAN"T
&ball, ¥ithout cost to DISTRICT or CITY, furnish DISTRICT with a
perforaance bond written by a sur~ty acceptahle to DISTRICT and
CIT! in an MIIOunt. equal t.o t.he estilated cost of the. 'WorK,
quaranteeinq the cOI!I.l=!let:ion ojf '.ork, free and clei!lr of liens,
.encuB.hr.,nces .. and security interest, according to the appro .... ed
plans and s~ci!ications,
XIV, Ll'A.iol~GE ro OR Df.sTRL.JCTrO~; Of l;.{l-'F\{)\'E.;.o:CiTS (RL 15.4) S
A, Total Qestnlr:tion rn thE;: €'.'ent the PRL~ISES or a 5ubst"nt.ial
p'?rticn tr,e-reo[ an" d~strol'f;d t,y any cau:~£! that renders the
PRE.'iI5ES lJnf it for thE' pu("::;:.s", s des', i c;nOlteo }. n Clau SI': II I (REQUIRED
, OPTIC:IAL USES) a~d if t~e PRE~l~ES are sa b~dly da~~ged that
they ccnr,ot. r," rcpai r€::i '.;.1t~.in ninety (90) d.,.ys i.rc:::1 the date of
such da~~ge, either party ~ay t~r~inate this SUBLEASE by giving
to the ether party ~ritten IlQtLce ~ithi!l thii-ty (JO} days of the
occurrence of S!.lcn ca:;:a'.,e. ),fter s\,.;cn nctice or terllliT,ation 1'Ias
t«e-en given, re:'lt.:;l (e).:ce~tir;g pcrcenta.ge rp.ntal, it any) shall be
prorated to the d.'l.te SlTBIZNA_NT actually va.cates tne PREMISES which
shall be roo late!' th,H', thlrt'l PO} ctays frem tile givir.g ot the
not.ice of t.er;:,i.:l3t i':·TJ.
e. Insured Partial Destruction, It the PREMISES are partially
destroyed by a.nY' r;:aus~ insurable under fire insurance with .a.
stAndard extenoed coverage casualty end('lrSec.ent and the destroyed
portion can be rebuilt. or repaired within ninety (90) days fro:n
tt,e date of destruction, CITi' shall repa ir the dalllage or
destruction with reasonable diligence. In such event./ this
stTBLE.A.SE sha.ll re~ain in lull force and e!fectj i1owever, until the
destroyed PRDHSES are repaire_d, rent.al (excepting perc:entaqe
rental. if any) paid by SUBTEi~_~ to CITY shall be reduced in the
SaJ:lC proportion that SUBT£U/o.NT's 5quare footage is reduced by such
destr~ctio~. Hcyever there shall be no rent abatement or offset
shol..!ld tne da:::a,;e or destr~lction be caused by SUBTENJtNT I its
e~ployeesl agents or ccntrac:ors.
C. Non-Insured Partial Destruction, If the PREMISES U.re partially
destroyed by eny cause Poot-. inslJrable b~~ fire insuran(..~ with an
extended coverage ·-:asual ty endorsement but t.ile F.R.EMlSE.S C;:l1ra still
be used for t.he purposes designate.d irj Clause III (REO~'lRED &;
OP'rIONAL USES) I SU8TENANT r-,.3'1, at: its option, terrnina'-e. this
5U8LD.SE unle.s.s CITY cor:u::-,ences rebuilding' or repair (If the
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destroyed: portion of the PREMISES \o'it_hin 90 days .t'r-O'lll the date of
destruction. Ho~ever, the~e shall be no rent abate:ent or offset
should the damage or df':struction be caused by SUBTD.fM7, its
employees, ~gents or contractors.
Such terMination by SUBTENANT shall be acco::nplished by giving CIt'\'
written notice of termination not sooner than ninety (90, days nor
later than one hundred (100) days a!te.'t" the occurrence of such
damage or destruction. This SUBLEASE shall termin3te on the dat~
such notice or temination is given to CITi'. It CITY ~ccolZ.plishoe.s
such repai? or it SUBTENANT fails to exercise i t_s option to
terminate, this SUBLEASE shall remain in full fc·ree ar:d effect,
however, until the destroyed PREMISES are r~paired, rent~l paid
by SUBTENANT to CITY (excepting percentage rent, if ani') shall .be
reduced in the same proportion that SUBTL~~~rs SUBLL\stO s1uare
footage is I"educed by such destruction. Ho-..,ev,;t:", there sh<"_ll ce
no rent abatement. or offset sho'.lld the da~aac or c1E-.:;:truction t-e
caused by SUBTENA.~""T, its lmployp.es, agents 0-[" c,'nt:~ct(;.rs.
Glass breakage shall not t'e dee~ej a partial destruction ~ithln the
meaning of t.his claus<:!.
X'V. AS BUILT PLANS (FL 15.5} S.
upe<n c~.;nt'Lplet ion of any rna~(cr SU8TE~;Atn-CLJr'tstn!c!:-£:d L-:?!"ove;:"8nts,
SUBTENANI' shall provide the :Rea 1 Pro:r:--erty H:"'n~q2-r ·,,'i th .;; ,-"0:-_p1<2 t e sc·t
of reproducible lias built plans" reflecting-act.u<::l ::"ur1stn.;ctio)""1 ..... ithin
or upon the PREMISES. SUBTENANT shall also provide the Peal .proFert)'
Manager IJith a statement signed Py SUBTENANT ur.do"Jr penali:J' of perjur!'
certified as to accuracy of actual construction costs tor .!oJl sLlch
im.prove1!lents.
XVI. UTILITIES (RL 17.1) llS
SUBTENANT .shall provide and pal' for an, and all telephone equipcer.t
or services to the PREMISES.
XVII. !NSURANCE (RL 18.0) S
SUBTENANT shall maintain insurance acceptable to CITY in full terce
ar.d effect throughout the t.erm of this SUBLEASE.
Minimum scope .Qf Insurance
Coverage shall be at least as b~oad as:
1) Insurance Services Office Commercial General Liability
coverage ,occurrence form CC 0001).
2.) Insurance Services Office (on nUwber CA 0001 {Ed, 1/87)
covering Automobile LiabilitYI code 1 (any au~o}.
3) Workers' Compensation insurance as requL:.-ed by the state of
California and Employer's Lia.bility Insurance.
4) Course of construction insurance ferM. providing coverage
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for "all ri~ks" of loss.
The. policy or policies of insurance maintained by SUBTENAN'l' shall
provide the followinq limits and coverages:
POLICY KI~IMUM LIMITS OF LIABILITY
(li WORKERS'
COHl'ENSATION Statutory
(2) COMPREHENSIVE Bodily Injury
AUTOMOBILE
LIAB!LITY, Property Damage
including owned,
hir~d, and non-owned
automobiles
(3) COMPREHENSIVE 'Bodily Injury
GENERAL
l,lABILITY
includir.q Propert~' Danage
products aT'.ct Per.-sonal Injuq'
completed. operations,
proad form contrac'tJ..lal,
and personlll injury.
$1,000,000 ea. person
$1,000,000 ea. occu~~enc~
$1,000,000 ca. occurrence
$1,000,000 r:-a. person
51,000,000 ea. occurrence
$1,000,000 aggreg4t~
~l,OOD,OOO ea. occurT8nce
$1,000,000 ea. occurrence
(4) FIRE LEGAL
LIABILITY
$500,000 said $UI:\ rE!presents the
estima~ed cost of the improve~ents and
fixtures within the carer cu.stody and
control of SUBTENANT. Said S'.ll'i shall be
subject to annual review by LESSOR's Risk
Man~ge.r to insure that coverage is adequate
to cover changes; in the replacement cost of
improvements and fixtures within the care,
custody ~nd control cf SUBTENANT.
Deductiples and Self-Insured R~ lIlt!
Any d~ductibles or self-insured retentions ~ust be declared to and
approved by the CITY. At the option .of the crT~ either: the insur~r
snall reduce or elil1inate such c1eductible.s or seif-insu"t:'ed rete.ntions
as respect.s t.he CITY, its officers, officials, employees and
volunteers; or the SUBTENANt' shall procure a bond guaranteeing
payment of losses and related investigations l claim administration
and defense e~~en5es.
Insurance sh:3.11 be in full force and effect cIJruoencing on the first
day of the "term of this SUBLEASE. 'Each ins\lranc~ policy required b 1'
this SUBLEASE shall contain the follo'~ing claIJse.s:
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1
L "Each insurance policy required by this clal.1se shall be
endorsed to state that coverage shall not PC suspended,
voidil:!d, canceled by e.it.her party, reduced. in coverage or in
li.its except after thirty (30) days' prior ~ritten notice
by certified mail, return receipt requested I has beoen given
to the CITY."
2. "All rights of subrogation are hereby waived against the
CITY OF PALO ALTO and the members of the City Council and
elective or appointive officers or employees, ~hen acting
within the scope of their employment or appointment.n
3. The CITY OF PALO ALTO and the PAL':> ALTO UNIFIED SCHOOL
DISTRICT are named as additional insureds.
4. "TI".e CITY, its officers, officidls, e:r;;ployees, agents and
volunteers are to be covered as insureds a~ respects:
liabilit~· arising cut of activities performed by or on
beha:lf of the SUBTENANT; products and cO,!,i1pleted operations
of the SUBTENAnTi pre)'!.is~s o'.mad, occupied or used by t.he
5 (JBTEHN;'I'i or automobiles t""lwned, leased, hired or borro· ... ed
by th~ SUWl'nl.loN'r, 'The: coverage zha 1.1 contain no speciaJ
limitations on the ::H":Op"~ of p:cotection affol'ded to the
CIT'l, its ofticers, lJ!ficials, enlployees, agents or
volunteers,"
5. It,for any claims related to this SUBLE}o.SE, the SUBTEnANT's
insurance coverage shall be primary insurance as respects
the CITY, its officers, officIals, employees, agents 3nd
volunteers.. I>.f'.'l if'.~utanC',e. or self-insurance. l=1aintained by
th9 CIT'", its off icers. off icials, employees, agents or
v¢lunteers shall Qe excess ot the SUBTENANT's insurance and
shall not contribu~e with it."
6. "Any tailure to co~ply with reporting or other provisions
of the policies including breaches of warranties shall not
affect cover~ge provided to the CITY, its officers,
official:.:;:, employees, agents or volunteers."
7. "The SUBTENANT's .insurance shall apply separate.ly to each
insure.d against whom claim is made or suit. is brought,
except with respect to the limits of the insurer's
liability."
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's
rating of no less than A;X.
XVII!. !USURANCE {RIo 18,2)
SUBTENANT agrees to deposit with the Real Property Manager I on or
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before the effective date of thi::; SUBLEASE, certificates of insurance
necessary to satisfy CITY that the insurance provisions of this
StJaLEA.SE have been cou:plied vito, a.nd t.e Jceep such insurance in
effect and the certificates therefore or. deposit ... ith CITY during-the
entir~ tera of this SUBLEASE. Should SUBTENk~ not pro~ide evidence
of such req'"llired covt:!T'age at least three (J) days prier to the
expiration ot any existing insurance covera9~, CITY may purchase 3uch
in5urance~ on bebalt of ana at the expense of SUBTENANT to prcvide
six .or.ths of coverage.
CITY shall retain the right at any time to rev.\cW' t.he coverage, form,
and aaount of the ins\ll"an.ce required hereby. It, in the opinion of
~~e Risk Manager, th~ insurance provisions in this SUBLEASE do not
provide adequate protection for CITY and for members of the public
usinq the PREM"J SES, the Real Property 'Mi:lnager cay require SUBTEN,ANl
to obtain insurance sufficient in coverage I torm, and at'lount to
provide adEoguate protection as deter\llined b'}r the Risk Manager.
CIT~'S reGuire~ents shall be reasonable and 5hal1 be designed to
aSSl.lrl' PJ::'o"tJ::!cticn fro:1 anil aqainst the ;;ind and exter.t. of risk • ... ·hich
exiscs at the ti~~ a change in insurarCQ is required.
'The Rer'll Fl-cF€rty ~anagt:'r zh.2l11 nlltif'j SUBTE.;:ANT in 'Writing of
ch".r.'j€'s in th·~ inst.'ranc::c' r,2q:.Jir-€:"'.cnts. If S1)BTEllAl'l'I" does not deposit.
copies 0[' ,dJ:c~ptdbl e inc,1.)l"ancC' pDl icies ' ... i t!'l CIT'i i(':c':)'.r-pon~ting such
changes ~i~hln sixty (~cJ da~'s of r~ceipt of such noticB, or in the
event SUSTENANT fails to ~aintain in effect any required insurance
coverage, SUBT£NA.'1T sh"311 be in defal.iolt under this sublease \o',i:thout
further r.otice to SttETENJI. ... N"T. Sucil failure zhall constitllte a
~aterial hreach and sl".a11 be qrounds for irnr.,;;ortiat€ temination of
thi., SUBL2J...SE at the option of CITY.
The procuci~g of such required policy or policies of insurance $hall
not be cor.;;trued to limit SU8'TEN1>..~7'i S iiability hereunder nor to
fultill thE inde~ific~tion prevision and requirements of this
SUBLEASE. Not .. ithstanding the policy or policies of insurance,
SUBTENANT shall be obli9a~ed tor the full and total amount of any
daaaqe t injury, or loss caused by or connected with this SL~LEASE or
with use or occupancy of the PREMISES.
XIX. ASSIGNIHG. SVB!..£TTING J AtW E"NctJMBERrNG PROHIBITED {RL 19.1) S
Since CI~' has rElied on the specific bac~grcund and capabilities of
SUBTENANT in awllrdinq this SOBLEASE 1 any mortgage/ pledg~.
hypothecation, encumbrance, transfer, sublease; or assignment
(collEctivelj rE:ierred to as ENCUMBRANCE) of SUB'rENANT'S interest in
~~e PREMISES, or any part or portion thereof, is prohibited. Any
attempted .ENCUMBRANCE: shall be null and void. and shall confer no
right, ~itle, or interest in or to this SUBLEASE.
If SUBTFN.~Nr hereunder is a corporaticn or an unincorporated
assor::iation. or partr:ershiPI the EI{CU}t,BRANCE of anY stock or interest
in the corporc.tion, association. or partnerst;ip which, in the
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aggregate over any consecutive t.o-year period, exc~eds twenty-five
percent (2S\) shall be deece:d an assignment within the meaning of
this cla~$@. Subletting as referred to h£rein , snaIl not apply to
AnY hourly rentals SUBTEN...v."'T ;:lay provide frol! their subleased
prPlises.
XX. DEfAULT IN TERMS OF THE SUBLEASE BY $UB~~~~T (RL 20.0) S
Should SUSTENk~ default in the performance of any covenant,
condltion r or aqree2ent contained in this SUBLtASE and such default
is not corr2cted within thirty (10) ~ays of r~ceipt of ~ notice of
det~ult tro. CITY j CITY .ay:
A. Terminate this SUSLEASE and all riqnts of SL~TF~A~L and these
who claim under S'tJB7FJij'lIT. s.te~ing fro::: t.!1is SUBLEASE, sha 1,1
end at the ti=e of siJch ter::-.ir,atic'n;
B. At CITY'S sole option, cure a~~' s~~h default b~· p~rfDr~ance of
Bn'l act, ir-,ClUdi ng paY7"'.ent (l~ ~.~:nH3y t ·1nj the cc-st. t hf.;xeot, pl~s.
reasonable aa!"oinistrati';p. c,;,st, shaU r-<c'c<':-':-,e i.-:-.-cdi"'tE.ly due and
payable ;;; Sl;5TE~i;;,';Y t<:) (1 ;'1.:
C. SeEk an dction or suit In ~q0~t}' to e~l01n an~' a~ts or ~hing5
whi~h ~ay be u~la~f~~ or in viclatiQ~ of the ril;htS of CIT~;
D, Seej( d !:'lar.da!::ll$ or other su ... t, actlon ot' procc:.ding at la~~ or in
eq-..J.ity to enforce it!'! r ight.s ag.a inst SUB'TI:N,\Jn ar'.CI any Df its
off icc-!'s , agents, ~ncl e::,plcyc~s. and it.£-assigns, and to co~,pel
it to p'1;!rform and car-q' 0'oJt it.s dLltie~ an~ obligatjon::;; under t-he
la .... and its co ..... enants and i1'1t"E'e:"":8ntf. I,o'ith CITY as pz"ovided
harein; or
E. PUrslJe any other reced'l available t>y 1<'11'" or specifically
provided i11 other clauses of this .sUBLEASE.
However, in the event of ~ default W'hic:h Cilnnot reasonably be cured
within thirty PO) days) SUBTRHANT shall nave ..l reasonable period of
time (as determined by the City Manager} to Cure th~ default. Each
and all gf the remedies qlven to CITY hereu~der or by any law now or
ber8~fter enacted j are cu=ulative and the exercise of one right or
rQ!L\edy s.hall not impair the right t.o CITY tc eXet"cise any or all
other re.edies. In case any suit, actiDn or proceeding to enforce
any right or exercise any rertp.dy shall be brcught or taken and ther.
discontinued or a'.tlandoned, then, ar:d in e\o-ery such ca.se, CITY and
St.m;.n:NAh~ shall be. re5tored tQ it.So and their fot'lVer position and
rights and reflledies as if no such suit,_ action or proceedings had.
been brought or taken.
In addition to a violation or breact, of any other provision of this
SUBLEASE, SUBTENANT .c;;ha.ll be cO{lslcie!ed to te Ln default und:er this
SUBLEASE should SU'S'iENi\NT:
1)
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A~ voluntarily file or have involuntarily filed against it any
patition under any bankruptcy or insolvency act or lay;
B. be adjudicated a bankrupt; or
c. ~ttempt to make a general assign,"IIent for the benefit ot its
cre.ditors.
XXI. LIM!TATION OF THE LEASEHOLD (RL 22.0) S
This SUBLEASE and the rights ana privileqes granted SD~TEN~'T in ~nd
,to the PREMISES ere subject to all covenants, conditions I
restriction.s, and phY9ical or legal encumbrances I including those
which are set out in the September 1, l?a~ LEASE by and bet~een CITY
AND DISTRIcT. (A copy of the Aqrf!'ement is on file <'lot 250 H.a:lilton
Avenue, Cit.y Hall, Real Estate Division~ for yO"<-l"!' c"",vie'oi.)
Nothing contained in thi~ SUBLEAS~ or in any docu~ent related hereto
shall be construed to imply the conv~yancC' to SlreT~;t~;T of :r ~ qht <; in
the PREMISES ... hir::h excee(i these o .... ned bi CITY <
XX:!. NOTICES (RL 21,0) S
All notices, ~.tat(!1neI1ts, d;;~and3} requ2sts , 'Conser.Ls , a.pprovals,
authorizations, of fert:1l J t;.gr~etle.nts r appointr..ents or dG:s.i,;p--,,"lt ions
here.unde.r given by either party to tn2. -othe-r, shaU be in · ... ritil"';g and
shall be sufficiently given and served upon the (_ft-her party if (1)
perscn.,::.lly served, (2) sent by United States certified !nail, post.ige,
prepaid, (3) sent by express delivery service, or (4) in the case of
a facsi:mile, if sent to the telephone number (sj set forth be~o· ...
during :normal bUsiness hours of the -receiving party ar".o follo'..,'ed
;.'~.thin 48 hours by delivery of hat'"d copy of 'the ;::ateJ':" ia1 sent by
facsimile, in accordance 'tiith (1)! (2) or (3) abQv.£:. Personal
service shall include, without lilllitation, service by del iver}-
service and service by facsimile trans~ission. Delivery of notic~s
properly ad.dressed shall be aeMled complete ",hen the notice is
physically dalivered to the Real Propertjo-Manager_
All notices pursuant to this SUBLEASE shall be addressed as set forth
below or as e.ither party may subsequently designate by .... ritt2r.
notice.
TO: CITY
Real Property Manager
City of Palo Alto
P~O. Box 10250
250 Hamilton Avenue
Palo Alto l CA 94303
FAX! (415) 3:19-2468
with a copy to:
TO: SUBTENANT
Zohar School of Dance
4000 Middletield Road
Palo Alto, C~ 94306
(415) 494-8821
(415) 328-8821
FAX: (415) 424-8821
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City Clerk.
city of Palo Alto
P.O. Box 10250
250 H~milton Avenue
Palo Alto, CA 94303
FAX, (415) 329-2646
and
city Attorney, City of Palo Alto
P.O. Box 1.0250
250 H~ilton Avenue
Palo Alto CA 94JOJ
FAX: (415) 329-2646
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XXIII. REPRESENTATIONS REGARDING H .. ~ZARDOUS MATERIAL,S (NS)
With respect to the existence or u'Se of HH.aza.rdQus Materials" as
defined in 30 (1\) of the General Conditions r CIT'f represents to
Stl'BTEN.;u.,fT to the best of CITY' S kflo'~ledge as of the date of execution
of this SUBLEASE and based on no other inquiry Ul·:!n (i) info'tT',ation
received from th2 Palo Alto Unit ied School uistrict J the I1",aster
landlord of the subleased pre7:lises. and. (il) the r.t~king and
examination of a study of the subleased premises undel-taken by
Dynamac Corporation with respect to the existencE-or n,".}n-existence of
friable and !lon-friable asbestos and asbestos-containing construction
materials, that the s-Ilbleaseo preroises is in cOTr(pliance with all laws
regulating the handling, tl'i1nsportation. storage, treatr..ent r use and
disposition of Hazardous Materials, including asbestos and asb2stas
containing construction materials.
XXIV. ATTACHl!ENT TO SUBLEASE (RL 24.0) S
This SUBLEASE includes the following exhibits I which are attached
her.eto and by this reference incorporated into this SUBL~SE:
Exhibit A -General Conditions
Exhibit B -Descripticn of SUBLEASED Premises
The inclusion of clauses in Exhibit A (GENERAL CONDITIONS) is not in
any way intended to lessen the importance of these clalJses l but is
merElly done to enhancE'! the organization of variolJ.s clauses and this
SUBLEASE"
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IN If'InfESS WHEREOF I the parties nave execut.ed this SUBLEASE the day
and. year first above vritten.
CITY: SUBTENANT!
crTY OF PALO ALTO (CITY)
BY:~~~ ______________ ___
Mayor
A'I"T%S'l' :
B"l' :
City C1F.!rk
}\PP.i{07ED AS TO FOrt.,,\:
II}': =--:,,--.,-
sr. Assistant City ~"ttorne"f
RECO!O!!:ND Ell AS TO FORM:
By: _______ ~~~----.~-----
Manager I Real Property
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CENFRAL CONDITIONS
1. DEFINITIONS (RL 27.1) S
CITY shall mean the city council ot" the City of Palo Alto, a
.unictpal ccrporation.
The City )(a:naqer is hereby authorized to t:.a.'l(c any acticns under this
SUBLEASE on behalf 0: CITY except for te~ination of this Sv~LEASE.
Clauses in tbis SUBL£1,.SE reter to specific officers or employees of
CITY. Should thesl!?' positions be eli::.inated cr tile title changes, it
is und~4stood and agreed that such references shall be considered to
be to t.l'-.e ne'W -citle [or rena::ed positions or to the t"eplacE'ment
o(fici-al designi!l.ted · ... ith t'rl (' re.sponsibilit.i~s of ani' eliainated
position. ;\ny reTerCrl':€ to a City ot:!icer or e:~p10yee includes a
reference to th~ officer's or ~~ploye!'s desiqnated represeneative.
sueTENA_NT aqrp.es Tl,;'lt to ob.:;:tr-<.Jct the 5':idc· • .'alks, entry passages, or
halls and will )Jse the scl:-e only as .a r.-.eans of passage from its
respective areas. SUB'TENNn and its ecploj-'ees and invitees shall
have t.he ::i-ght, in C'':l~~,0n ',.I}..th other persons l to use dri·!c.ays and
par'.r.ing areas located en the proFe.r-ty provided that stich use snall be
subject to such reasonable rulE's and I"egulations as may front ti::ae to
tille be adopted by CITl'.
-4. SIGh'S (RL 27 .• ;,} llS
SUBtENANT aqrees nDt to construct, maintcin, or allo~ any sign to be
placed upon the FRDHS£S e>.:cept as ll>ay be approved in writing by
CITY. Unapproved signs j banners, etc., may be removed by CITY. All
signs to be placed ~pon the PREMISES, ~ust conform to the Cubberlcy
Master Sign Program.
CITY ..,il1 cOT'lsult::. .... ith S1JBTENhlH, prior to installing any signs \l?on
the portio!1 of PRE.'HSES s\.lbleaseo by SUBTENANT I or COr.:u:l.on areas IoIhich
lJould directly influf.:nce SUB1'EN.". .... ~T' S use of PREMISES in accordance
with Clause III (Required and cp~ional Services and Us~s).
5. PERMITS AND LICENSES (RL 27. S) S
~UBTENA}T'T sl"l~ll be required to obt.ain any and all P::!LTlits and/or
1 it;erl5es 'which r:.ay be required in connection .... 'ith the operation of,
EXJiISIT A
17
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and a:ny ~pproved SUBTENANT construction upon, the PREMISES as set
forth in this SUBLEASE.
6. MECHANICS LIENS (RL 27.6j S
SUBTENANT shall at all ti~es inde~nify a~d s~ve CITY har~less frc~
all claims for labor or materials supplied in connection ~ith
construction, repair, alteration, or installation of s~ructures,
i~provem8nts, equipment, or f~cilities within the PRLKIS£S, and (rc~
the cost of oetending Against such claims, including attorney fees.
SUBTENANT shall provide CITY ", .. ith at le4st ten (10) d!l!Ys 'of!'1tten
notice prior to cOlUllencement of any .ork. "'hich could give rise to a.
aechanics lien or stop notice. ~lTY reserves the right to enter upon
PREMISES for the purposes of posting !iotices of Non-I<esponsibility.
In the event a lie~ is i~posed upo~ the PR~ISES as a result of $~ch
construction, repaIr, alteration , 0["" ir;stallati,cm, ~;I)BT~~.A .. :"T sh.:!ill
either:
A. Record.a valid Release ( .. t Lien; or
B. Deoosit sufficient cash with CITY to co\'er t~12 ~~n\lnt of the
{,;l~im on the lien in ql.l€sticn and ·"?"Jtr" .. ·ri:-e r,~'/:--,~nt tv thE:
extent DL s",id deposit. t.o M''{ f;\Jb'3Hl,_h:nt )'.l.<i'!77ent holu-:!!" ,"hot
l't'.ay arise .;IS a ;'latter of 'p1..Ibli.c record f1"0:-' litir~ation ;,,'ittj
regard to lier.holder CL~ii":l; or
C. Procure and record a bond in accorcance ".oIitrl :Sec-t: ion 3l~ 3 o~ the
Civil Code, which rele~ses the P~EMISE$ fro~ the claj~ of the
lien from any action bro~ght to forrcloee the lien.
Should SUBTERANT fall to accor.-pi ish one or the
within fifteen (15) days after the tiUng
SUBLEASE shall be in default and ~ay be
teraination.
thre~ 0ption~1 actions
of such a lien, the
subject to i=ediate
7. SUBLEASE ORGANIZA'rrON AND RULES or CONSTRUCTICll (RL 27,7) S
Words of t.he ma.sculine gender shall b~ deeJ!'.e.d and cC(1$tn:.ed to
include correlative words of the fecinine and neuter g~nders. Unless
the context otherwise indicates l .ords importir~ the sinqular number
shall include the plural number and vice versa, a;nd ""'ords iJ:lporting
persons shall inolude corporations and associations, including publ.ic
bodies, ~s well as natural persons.
Tile terms. "hereby I' , ~'nereof", "hereto", "herein/t I f'lhereunder" and any
similar terms, as used in this agreement, ret~r to this aqr€ement,
All the terms and provisions hereof shall be construed to effectuate
the purposes set forth t".erein, ;and to sustain the validity he-reof.
EXHIBIT A
1&
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The titles and headinqs of the sections of this agree~ent have been
inserted for convenience of r~ference only, are not to be considered
a part hereof and shall not in any way modify or restrict any of the
terms ot provisions hereof or be considered or qiven any effect in
construing this agreement or any provision heX"eof in ascertllining
intent, if any question of intent shall arig~.
8. AKEIIll!!ENTS (RL 27.8) S
This SUBLEASE sets forth all of the agreements and understandings of
the parties and any modifications must be written and properly
executed by both parties.
9. l.lllT.AWYtJL USE (RL 27.9) S
S~~TENANT agrees that no improvements shall be erected, placed upon,
operated, nor maintained within the PREMISES, nor any business
conducted or carried on therE',in or t.herefrom, in violation of the
terms of this SUBLLASE, c:t" of any regulation, order of la' .. ' I statute,
or ordinance of a governr-;ental agency having jur-isdiction over
SUBTENANT'S use of 'the: PR£!llSES.
10. NONDISCRIMIN;\TION (RL '27.10) S
suaTENANT and its er:'Lployees. shalJ not. ctiscr-iJ'.1inate aga inst any person
because: of race, color l religion, ancestry, age, SBX, national origin
or physical handicap. SUBTENANT shall not discriminate ag'linst any
employee. or applicant for employment because of race, color,
religion, ancestry, sex, age, national origin or physical handicap.
SUBTENANT cove.nants to meet all requirements of the Palo Alto
Municipal Code pertaining to nondiscrimination in ernplo1"r.',ent. If
SUSTENANT is found in violation of the nondiscrimination provision of
the. State of California :Fair Employment Practices IIct or similar
provisions of federal law or executive order in the condu~t of its
activities under this SUBLD.SE by the state of California Fair
Employment Practices Commission or the equivalent federal agency or
oftice~, it shall thereby be found in default ~nder this SUBLEASE,
and such default shall constitute a material breach of ~his SUBLEASE.
CITY shall then have the po~er to cancel or suspend this SUBLEASE in
whole or in part.
11. INSPECTION (RL 27.11) S
CITY'S employees and agents shall nave the right at all reasonable
times to inspect the PREMISES to determine if the provisions of this
SUBLEASE are being complied ~ith.
12. HOlJ) HARMLESS (RL 27.12) NS
SUBTENANT h~reby waives all claims, liability and recourse against
CITY, including the right of contribution (or los:; or rlal;\"'9€: of or to
EXHIBIT A
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persons or property arising from, growing out of or in any way
connected with or r(',latecl to this agreement. SUBTENANT hereby agrE'.es
to inaemnifv, hold harmless and defend CITY, its officers, agents,
and. 8l'IIployees against any and all claims, liability, demands,
da.aagea, cast, expenses or attorneys' fees arising out of the
operation or maintenance of the property described herein or
suaTENANT'S performanca or non per.formance of the terllls of til is
SUSLFASE. SUBTENANT shall have the right to decide and det~rmine
'Whet.h61' end when any such a.ct.ion or proceeding shall be compromised.,
r.esisted, defended, tried or appealed.
CITY aqrees to inde.mnify I hold han'lless and defend SUBTENANT, its
officers, aqents and employees against any and all claims, liability
d.emands, cost, expenses or attorneys' fees arising out of CITY'S
performance or non perfonnanc:e of the terills of this SUBLEASE.
13. TAXES AND ASSESSMENTS (RL 27.13) S
'This SUBLE.;,\SE tI'.ay create A possessory interest whtch is subject to
the parent of taxes .'levied un such interest. It is understood and
ag~eed that ~ll taxes and assessnents (including but not linited to
the poss~~sory interest tax) .... hich bccohle due and pai'able upon the
PREMISES or \lpOn fixtures, equipn:ent, or other property installed or.
canstructed there.on~ shi"'.ll be trle full t;asponsibility (If SIJRI'SVtJoHI'
and SUS'fENANT 5hall P'!!'~' the taxES and assessments priol-to
delinquerlcy.
14. SUCCESSORS IN IN'I'EREST (RL 27.14) S
Unless t)therwise provided in t.his SUBLEASE, the terms, covE'.nants, and
conditions contained herein shall apply to and }:;lind the heirs,
~ucceS50rs/ executor~, administrato~s, and aS$igns of all the parties
hereto, all of ~hom shall be jointly and severally li4ble hereunder.
1~. CIRCv~STANCES WHICH EXCUSE PERfORMANCE (FORCE MAJEURE)
(RL 27.15) S
It either party hereto shall be delayed or prevented from the
performance of any act required hereunder by reason of acts of God,
restrictive governmental la~s or regulations, or other cause without
fa.ult and beyond t:he control of the party obligated (financial
inability excepted), performance of such act shall be excused for the
period or the delay and the period for the pe~formance of any such
act shall be extended for a period equivalent to the period of such
delay.
16. F~~TIAL INVALIDITY (RL 27.16) S
If any term, covenant, condition, or provision of this SUBLEASE is
determined to be invalid, void, or unenfo["ceable t by a court of
co:tpetent jurisdiction, the rp.!r'.ainder of the provisions he:J:"eof shall
EXHIBIT A
20
•
--~-..... >----_. ----, ---"---.---~-..
remain in full force .... nd effect a.nd shall in no way be affected I
L.paired~ or invalidated thereby.
17. lIAIVD< OF RIGHTS (RL 27.17) S
The failure. of CITY or SUBTE..."iANT to insist upon strict performance of
any of the ~erms~ covenllnts, or conditions of this SUBLEASE shal~ not
b4 deemed a waiver of any right or remedy that CITY or SUBTENANT ~ay
have. and shall ~ct be deemed a waiver af the right to require strict
perfor-.a.nce ot all the tel'1:ls, covenants, and. conditions of the
StrBL!ASE thereafter. nor a io'aivf':r of any remedy for the subsequent
breach or default of any term( covenant, or condition of the
SOI!LEASE.
18. COSTS OF SUSTAI~ING AN ACTION FOR BREACH OR DEfAULT (RL 27.19) S
In the event ei ther CIT'i Or'" Sl181'ENA.NT commences lega 1 action against
the. other clait:ling a bre<:'1ch or default of this SUBLE.lo.SE, the
prevailing party in such litigation shall be entitled to recover from
the .other reasonable cost of sustaining SLlch action, including
r~~30nable attorney feeB, a~ ~ay be fixed by the Court.
19, RE3!,p1,'A!'Tm~s "TO elI'! (n~, ~--:'I, 19) S
'Thl;"1 FRL";ISES <lr~ accepted ",~~ is'l ilond ;I',,"-r:.:tr~ is" by SUWI'D:~J!T subject
to any and all exis~ing ease~entsr and encuMbrances. CITY reserves
the riqh~ to install, lay, construct, maintain, repair, ~nd operate
such sanitary se .... ers, d.rains, storn ... ater sewers, pipelines,
~anholes, <l.nd connectionsj water. oil, an1. gas pipeli.nes.; telephone
and telegraph po"lt'er linesi and the applications a.nd appurtenances
necessary 0::-corwen ient for connect-ien therew] '_h, in, over, upon~
throu"h, across aT,d along t.:1e PREMISES c!' any part thereof, and to
enter the PREMISES fot' any and all such purposes. CITY also reserves
the riqht to grant tra~chises, ease~ents, rights of ~ay, and permits,
in, over, upon, through, across, and along any and all portions of
t.he PRDHS:ES. No right reser'Ied by CITY in this clause shall be so
exe.rc::ised. as to interfere unreasonably \lith SUBTENANT'S operation
hareur.der.
CIT~ ~g~ees that rights granted to third parties by reason of this
clause shall contain 'provisions that the surface of the land shall be
restored. as nea.rly as practicable to the original condi1::i":>Il upon the
coapletion of any construction.
20. HOLDUjG OVE}( (RL 27.20) ~
In the event SUBTENAh'T snall continue in possession of the PREMISES
.!.fter the te:r1ll of the SUBLEASE, such possession shall not be
considered a renp':oial of this SUBLEASE but a tenancy from month to
~nth 6nd shall be qoverned by the condit.ions, and covenants
contained in this SUBLEASE.
EXHIBIT A
21
, ,
:2:1. CONDITION OF PREM1S£S AT THE TIME Of SUE1,EASE (US)
At. th. cosaence:aent of the StJBLEAS!:, SUBTENANT shall accept the
buildings and il!pro'VE'!'lIlents and any equipment in their @xistinq
condition ~nd state ot repair, and SUBTENANT agrees that no
representations, statel:lE:nts l or ... ·arranties, pxpress or implied, have
b6en BAdE: by or on be~alf of CITi' in respect the:-eto except as
contained in tl1e pro .... isions of this sublease, and CIt't shall in no
event be liable for any latent deEe~ts.
22. CONDITION OF PREMISES UPON TERMINATION (RL 27.21) NS
Opon tenlination ot this St.'BLEASE, exc.ept as otherwise agreed to
herein, SUBTENANT shall redeliver possession of the PPLMISES to CITY
in $ubstantially the sa~e condition that existed i~ediately prior to
SUBTENANT!S occupancy, rpasonable 'Wear ilnd tear, flood, E'atrthquaxe j
;.'ar, and i!Hl'y act of war exceptli'd. UpOil ten::dnatlon of this SUBLE.ASE,
CITY rna)' require SUBTn;~.NT to re-:':lo'!e interior
str\.lct'..lres/!:odit ications CD"struc':e,j oJ' ~:"':6TE~L;'~.j.
If SUB!ENA."IT abande·n::; t)"..~ ?P.L".l Sts LW } S d :'..:·rosses.sed there-of by
pro;,;;ess of l:~· .. · or vthE't" .. 'isE', ti~le to (>.n:,' pc-t",,;-oni3.1 pl-cper-ty belor,ging
to SUB.'l'ENi\NT .and lett Ofl th.e PRt.:-'.ISES for-ty·-fi\'E'. (~5) days after SLlCh
abandonment or dispossession ~h~ll te d~~=ed to have been tr~nsterred
to CITY. CITY shall have the rignt to re::,.oye dnd to dispose of such
property ,",'ithout liabi 1 i ty tt;.er-efor to SC'BTE~:A~a or to .:sny person
claiming undel:" SUBT:r.NANr, e\nd 5hall have no need to account therefor.
24. CITY'S RIGHT 7D RE-f}iTER (RL 27.2'4) S
Sl1BTENANT agrees to yield and peaceably deliver possession of the
PR.E)t{ISES t.o C1'1"l on t.he dat& of te.r::.ination cf this SUBLEASE,
whatsoever the reason tor sue!". tc-rll!ination.
Upon qivinq written notice of te~ination to SUBT~~ANT, CITY shall
have the riqht to l-e-enter and take possession of t~e PREMISES on the
date such teraination bec:oJlaes effective 'Without further notice of any
kind and. without institution of l"equl~r legal proceedings.
Termin.stion ot the SlJPLEASE and re-entry of the PREMISES hy CITY
:shall in no ... ay alter or diminish any obligation of SUBTENAN"r undt:!r
the SUBLEASE terMS and shall constitute an acceptance or surrender.
SUBTJ::NAlIT ..... ·aives any and all rights of redcnption lmder any
or tut_ure law or statute in the event of eviction
dispoSS9SsiQn of the PREMISES for any reason or in the event
enters and lawfully re-takes possession of the PREMISES.
25. CON'FLICT OF IN'TEREST (RL 2'].25) S
EXHI817' A
22
exi::>ting
from or
CIT't re-
•
,~
SOBTENA..~ warrants and covenants that no official. or employee of CITY
nor any business entity In which any official ,or eillployee of CITY is
interested: (1) has ;been eU'.ployed or retained to solicit or aid in
tbe procuring of tbis a9reEfl:lentj 01.' (2} '..:ill be e~ployed in the.
performance of this aqrae~ent without the divulgence of such fact to
CITY. In the event that CITY deter1:l.ines that the f!~plo~ent of ani"
such official, employee oz-busine::.s entity is not compatible .... ith
such official's or e.mployee's duties ~s an official or ereploj'ee af
CI1'Y, SUBtENANT upon request of CITY shall imD1ed.iately ten!in.ate such
employaent. Violation ot this provision constit~tes a serious breacn
of this SUBLEASE and CITY may terminate this SUBLEASE as a rpsult of
such violation.
26. EMINENT DOMAIH (RL 27.26) S
In the event the whole or any part of the PR.EJoUSES are conde~ned by
a public entity in the lawful exercis~ of i t5 pO"'er of epinent
domain~ this StTB:..:£1;SE shall ceaze as 'Co the pClrt conde:"'rled. 'The date
of such t~rcinaticn shall bA the effectjve date of possession of the
'.ihole or part of the PRE;o1:1SES .by the corder;nir:-; pulll ic pnti tj'.
If only a part is ccndenned and the conde!~nation of that p1rt does
not substantially impair the capacity of the re~dind~r to te used for
the purposes required by this SUBLEASE, SUBT[:IA1~r shall continue to
be bol..lnci by the ter~s, covenants and (:cnditicns of this SUBLEASE.,
How'ever, the then current minirmn annual rent sh .. ;tll be reduced in
proportion to the relationship that th.o: co~pensation paid by the
condemning public entity for the portion ccndepned bears to the value
of the entire PREMISES as of the date .")f possession of the part
condetnned. If the condemnation of a pc3rt of tr~t? PR!Y.ISE'S
subst~ntially impairs the capacity of the re~ainder to ce used f0r
the purposes required by this S'(JBL£.lI.SE, StlB1'EN.b.NT may:
A~ Terminate t.his SUBLEASE and thereby be aDsol',1ed of oblig~tions
under this SUBLEASE which have not accrued as of the date o!
posse:!sicn by the condemning public entity; or
B. Continue to occupy the remaining PREMISES and thereby continue
to be bound by the tertt!s, covenants and conditions of this
SUBLEASE. If Sl~TENANT elects to continue in possession of the
remainder of th.e PREMISES I the t.hen current a.nnual ::.iniJlllUl:
rental shall b$ reduced in proportion to the relationship that
the compensation paid by the condemni~g public entity for the
part condemned bears to the value of the ent-ire SUBLEASED
PREMISES as of the date of possession by the conde~ning public
entity,
SUBTENANT 5ihall provide CITY with written notice advising CITY of
SUBTENANT'S choice within thirty (30) days of possession of the part
condemned by the condemning public entity.
EXHIBIT A
23
"
'\
CITY shall be entitled to and shall receive all compensation ~elated
to the conde~at1on of all or part of the PREMISES by the exercise of
Ulinent domain exc'".:"t that SUBTENANT shall be entitled to that
portion of the compensation which represents the value: of tha
SUBTENANT constructed improvemants for the ~emainuer of the SUBLEASE
teD!.. The a.mount to 'Which SUBTENANT shall be entitled ~.hall not
exceed the act;:.al cost of iItlprovements constructed by SUBTENAllT
reduced in proportion ~o the relationship of the remaining SUBLEASE
term to the original SUBLEASE ter~, using a straight line approach.
21. CHANGES IN PRICE INDICES (RL 27.27) S
Clauses containad in this SUBLEASE may provide for adjustmen~ based
on the Consumer price Index, component indices, or other indices.
Should these indices be changed., altered or cease 'to be publ.ished,
the tollcwinq conditions shall apply;
A. If the subject index is changed so that the base year differs
from that used as of tne month in which the teLm co~enc€sl the
subject index shall be converted in accordance with the
conversion factor published by the publisher of that index;
B. If the subject index is discontinued or revised during the
SUBt-EASE t.err~, such index shall be replaced by an~..,ther
government index or computation Hhich will obtain substantially
the same result as .... ould be: obtained it the subject index had
not been discontinuerl or revised.
28. POST-ACQUISITION TE!lANC~ (RL 27.28) S
SUBTENANT hereby acknowledges that its occupancy of the PREMISES is
subsequent to acquisition of the PREMISES by C:::'fV. SUBTENA,NT further
understands and agrees that as a post-acquisition subtenant J
SOBTENANT is not eligible and furthermore ..... aives all claims for
relocation l!.ssistance and benefits under fedet'al l state or local law~
29. HAZARDOUS SL~STANCES (RL 27.29) S
A. Definition. ",s usee herein, the term !fHaz8r-dou:;:;. Materials"
means any s'Ubstance or material 'Which has been determined by any
state, f~aeral or local governmental authority to be capao1e of
posing risK of injury to health I safetYI and property, includinq
petrolew:l and petrolE':'..uD. products and all of those materials and
sulJstances designated. as hazardous or "toxic by the u.s.
Environment,al Protection Age.ncy, t.he California 'Wat.er Quality
control Board l the U.S. Department of Labor, the calitornia
Departme.nt of Industrial Relations, the California Department. of
Health Services, the California Health and Welfare Agency in
connection with the Safe Water and Toxic Enforcement Act of
1986, the U.s. Department of Transportation, the U.s. Depart~ent
of Agr-icl.llture l the U.S. Consumer Product Safety Commission, the
EXHIBIT A
24
,
\
o
U.S. Dep~r~ent of Health ana HUman S~rvices, the u,s. Food and
Drug AdlD.inistration or any other governmental agency now or
hereafte.r Authorized ,to re.q'.Jlate mate:ials and substances in the
environment. Without limiting the generality of the foregoinq,
the t~rlI: "Hazardous Materials" shall include all of those
aaterials and substances defineo as lItoxic materials" in
Sections 66680 through 66685 of Title 2~ of the C~lifornia Code
of Requlatiol'ls, Division -4, Chapter 20 1 a5 the same l!I8Y be
a_ended from time to time.
B. ~U8TENAMT'S Use of PREMISES. During the term of this SUBLEASE,
SUBTENANT shall abide and be bound by all of the follo'Wil"'.q
require.m:ents:
i. SUBTENAHT shall comply .... ith all laws now or herea.fter in
effect relating to the use of Hazardous Materials on, under
or about the PREMISES / and SUBTENAll1' shall not conta'rn.ina.te
the PREMISF.S, or its subsurf~ces, with any Hazardous
Xateria1s.
ii, SUBI'ENAld' shall re::;tt'ict its use of Hazardous Materials at
th~ PRE~HSES to those ~:inds ot' ."r1f1terials that are normally
used in con~truct.i.ng the Proje~t. Disposal of any
fiaz.ardou~ Mater ials at the Prenises are strictly
prohibitecL storagE: of such permissible Hazardous
Materials is allowed only in accol"d<'lnce .... ith all applicable
lalor·s 1".0\01 or here.after in effect. All safety and monitor.ing
features of any storage facilities shall be approved by
CITY'S Fire Chief in accordance with all la~~.
iii. SUBTENl'J.:1' sha 11 be solely and fully responsible for the
reporting ot elll Hazardous Mater ials releases to the
appropriate public agencies, when such releases are caused
by or result from SUBTENANT'S activities on the PREM!SES.
SUBTEN~~ shall immediately inform CIT~ of any release of
Hazardous Materials, whethe.r or not the release is in
quantities that would otherwise be reportable to a public
agency.
iv. SUBTENANT sh311 be solely and fully responsible and liable
for such relea~es at the Pre~isesf or into CITY'S sewage or
storm drainaqe systems. SUBTENANT shall take all necessary
precautions to prevent any of its Hazardous Materials from
entering into any storm or sewage drain system or frcm
being released on the premises. SUBTENANT shall remove
4eleas~s of its Hazardous Materials in accordance with all
laws. In addition to all other rights and remedies of CITY
he~eunder, if the release of Hazardous Materials caused by
SUB'l'WANT is not removed bJ.' SUBTf::NANT within ninety (90)
days after discovery by SUBTENA!iT I CITY or any other third
party, CITY I!Iay pay to have the same removed and SUBTENANT
EXHIBIT A
25
~--~-~.------~ ... -
v.
vi.
\
s:hall reimburse CITY for su.:h costs within five (5) days of
CITY'S demand tor payment.
St,..fBl'.ENA.~'T shall J;lrotect j defend, in.demnify and hold
h"rw.less eIT'i from and against all loss, damage l or
liability (includ:.l1g all foreseeable and unforeseeable
cOr'\5eque~ti.a.l dama.ges) and ex.penses (including, w-itocut
lialtation j ti;..e cost of any cleanup and remediation of
Hazardous Materials) vhich CITY Qay sustain as ~ result ot
the presence or cleanup of J!aZi'l!.'"dous Materials on the
PREMISES.
SUSTENANT' 5 obligation under this Clause shall s1.lrvive the
expiration or earl ier ter;r.inaticn of this SUBLeASE.
A. DEfinition. i\s us~d herein, the term "Hazardous M2!:terials"
1r1edr.S .any ;;IJbst!.nc~ or :;tater 1a1 · ... hieh has been aetcrt:lined by an~l
state, tcdp-r~l or loc<!Il gO'Jern::ental authority to be c2-1=-able of
~csing ris~ o! injury to hC31th, safety, and property, including
petroleu:"\ ar.J. pe.trol.e'J:'"l prcd'J<..ts and all of t.hose r.ateri<3.1s and
substances design3ted as hazardous or toxic by the u.s.
Envircn~ental Prot~ction Agency, the california W~ter Quality
Control Bca-rd, the U. S, De~,}rt: :--:ent of Lacor, thEO' California
Dep3rt~ent of Indu~tri~~ Relations, the California Dep~rt~ent of
He~lth services, the C~ljfornia H~alth and Welfare Agency in
connection · .. ·ith th~_ Si".fe ",'ater and 'Toxic Enforce:::ent Act of
198&, thE' U.S, Depart!:ent of Transportation, tt,e u.s. Departmen.t
of AgriculturE:, the u,s. Consu:::er Product Safety CO<1..'l'lission, the
U.S. Deparl::ent: of Health and Hu;,an Services, the lJ.S. Food and
Dru9 A.::bini st:!'atlon 0(" any other gove:-nn'l~nt.a 1 agency now or
here~!t.er autncrln:-d to regulate r:at.erials a.nd s·o.lb:stances in the
environ~ent. Without li~iting the generality of the foregoing,
the t.erm "Ha;:d.rdous Materials" sha.ll incll.lae all of those
mat:eria.ls and substances defined as "toxic materials" in
S-ections 66680 ttlt'ou::;Jh 66685 of Title 22 of the California Code
ot Requlations, Division .;, Chapter 20, as the same may be
amended tro~ time to ti~e.
g. S~~£NANT'S Use of PREMIS£S~ During the ter~ of this SUBLEASE,
St.rnTENANT shall abide and be round by all of the following
requirements:
i. SUBTEN~~ shall comply with all laws now or hereafter in
€!'ffect relating to the use of H.azardous Mater ials on, undti!r
oc about the PREMISES, and SllBTENAlH' shall not contaminate
the. FR.EMIS£S, or its subsurtaces, 'With any Hazardous
Ha't-erials when sucb release or releases are caused by or
result:. troll!. St.rBT'£N'IU-lT'S acts Qr omissions Ol". the PREMISES.
ii. SUBTENANT shall restrict its use ot Hazardous ~aterials a~
the PREMISES to those kinds: of T!l",terials that are normally
EXHI,BIT A
26
.. ~
',~ :';:~;',-:'
iii.
used in constnlcting the Project. Disposal o£ any
tla:zardous Materials at th~ Pre=ises are strictly
prohibited. Storage of such pen!l;issible Hazardous
'Materials is allowea only in accord~nce ..,ith .all ~pplicable.
1<\1",6 nOli or herea.fter in effect. A.ll !;c'!;fety ~T:d moni tcring
features of any storage facilities shall be approved b:,'
CITYIS fire Chief in acc~rdance ~ith all lavs.
SUBTENM'T shall be solely and fully respon.sible tor' the
reporting of all Hazardous Materi~ls releases to the
appropriate pu:blic .aqencies~ when s'Jch releases are: caused
by or result rrom SUBT~~ANT'5 ~etivi~ies on the PREMISES.
SUBTENANT shall immediately infor= CITY of any p~lease of
Hazardous !'later-ials, whether or not the: release is in
quantities that \ioul::! other-,..ise be !'eportable to a p1.lb.lic
agency.
iv. SUBl'E"NA.~"T shatl be solely ar.d t·...llly rcs~Q~"sible and 1 iab). ...
for such r€lease!: at the Prf';-,i,;E:s, 01.-intI) CI'T'i'S se",.aqp or
stO!"1'l drain<:'..ge 5)'St~:-..-,s. SfJSrF::;:;..}:r sha!l tC'lke all necessary
preca.u.:tions (.0 ?l.:e.vent d.ny of its H.\7.3.rd0dS l"'.at.er~~ls froi:\
enter lng into ony stor::::'. or :;'2''''')9''' ,jr<! in s: .. st<:''!':: or fro;:::
l:-eing r~leased on t.IH~ Pr2:-:L;;e::-. :;T13:~:;i.;};T ~,r:dll {P.;'C,O'.'€'
releases of it~ Ha2ardous ~aterlals in ~c~ordan~e ~ith all
laloiS. In addit.ion to all ether rig~lts ar:d re-::edics of CIT'i
hereunder I if the release of 1!az3~dous ~3teri~ls caus~d by
SUBTENAlrr is not. re~oved by St:BTE.~i~;T -.ithin ninety (90)
days after discovery bj' SUBTENANT, CITY or 3i1Y other third
pdrt}', CITY may pay to ha.ve the sa~e re~aved ai1d SUBTENANT
shall reimburse CIT!' for slJcn costs ... ·itilin ii'.'£> (5) days of
CI'I'Y I 5 del:land tor payment.
v.. SUBTE..~A.N'l' shall pcctect, defend, ii'i.de.:ll"'.ity and hol.d
harmless CITY {rcm and against all loss, da.::age~ or
liability (in:::ll.ldinq all foreseeable: and l.lnfcreseeable
consequential damages) and expenses (including, without
limitation, thE: cost. of any cleanup and reAediatio01 of
Hazardous Materials) which CITY mal{ sustain as a result of
the presence or cleanup of ~az:ardcu5 Materials on the
PREMISES, that result from S~~T£NANT'S use or releass of
Hazardous Materials.
vi. SUe-r"EN.lI.NT'S Obligation under this Clause shetll survive the
expiration or earlier t~rmination of this S~LEASE.
30. ~~ COVENANTS ARE CONDITIONS (RL 27.30) S
All provisions of the SUBLEASE are expressly ~ade condi~icns.
EXHIBIT A
27
•
.'-.
31. PARTIES OF Ih~EREST (RL 27.31) S
Nothing in this aqreement, expressed or implied, is intended to, or
shall be construed to, confer upon or to give to anr person or party
other than CITY and SUBTENANT the covenants, condit.ion or
stipulations hereof. All covenants, stipu) ation:<.>, promises and
aqreeJlents in this SUBLEASE shall be for the sole and exclusive
benefit of CITY and SUBT~~ANT.
32. RECORDATION OF SUBLEASE (RI, 27.3~) S
Ne_ithe.r CITY nor SUBTENANT shall record this SUBLEASE; however, a
short-form memorandum of SUBLEASE may be recorded at CrTY'S request.
23