OFFICE LEASE AGREEMENT
CALIFORNIA
Short Form Lease
THIS OFFICE LEASE AGREEMENT (the "Lease") is made and entered
into as of April
1, 2005, by and between CA-LA JOLLA CENTRE LIMITED PARTNERSHIP, a Delaware
limited partnership ("Landlord") and AICI, Inc., a Nevada corporation
("Tenant"). Pursuant to the terms of this
Lease, Landlord
agrees to lease
the
Premises (hereinafter defined) to Tenant
and Tenant agrees to lease the Premises
from Landlord. The Lease includes the following exhibits and attachments:
Exhibit A (Outline and Location of
Premises),
Exhibit B (Expenses
and Taxes),
Exhibit C (Work Letter, if required), Exhibit D (Commencement Letter, if
required), Exhibit E (Building Rules and Regulations), Exhibit F (Additional
Provisions, if required), and Exhibit G
(Parking Agreement).
1. Basic Lease Information
1.01 "Building" shall mean the building located at
9255 Towne Center Drive, San
Diego, California, commonly known as La Jolla Centre II. "Rentable Square
Footage of the Building" is deemed to be
148,278 square feet.
"Property" shall
mean the Building and the parcel(s) of land on which it is located.
"Common
Areas" shall mean the portion of the
Building and Property
that are
designated
by Landlord for the common use of tenants
and others.
1.02
"Premises" shall mean
the area shown on Exhibit A to this Lease. The
Premises are located on the 2nd floor and
known as Suite No. 235. The "Rentable
Square Footage of the Premises" is deemed
to be 896 square feet.
1.03 "Base
Rent":
--------------------------
---------------------------- ------------------------
Period
Annual Rate
Monthly
Per Square Foot
Base Rent
--------------------------
---------------------------- ------------------------
4/1/05 - 3/31/06
$31.80
$2,374.40
--------------------------
---------------------------- ------------------------
1.04
"Tenant's Pro Rata Share": 0.6043%. Tenant shall pay Tenant's Pro
Rata Share of Taxes and Expenses in
accordance Exhibit B of this Lease
1.05 "Base
Year" for Taxes: 2005; "Base Year" for Expenses: 2005. -
1.06
"Term": A period of 12
months. Subject to
Section 2, the Term shall
commence on April 1, 2005 (the
"Commencement Date") and, unless terminated early
in accordance with this Lease, end on March
31, 2006 (the "Termination Date").
1.07
"Security Deposit": $2,611.84.
1.08
"Broker(s)": None.
1.09
"Permitted Use": General office use.
1.10
"Notice Addresses":
<TABLE>
<CAPTION>
<S>
<C>
Landlord:
Tenant:
CA-La Jolla Centre Limited Partnership Prior to the
Commencement Date:
c/o Equity Office Management, L.L.C.
9255 Towne Center Drive
___________________________
Suite 800
___________________________
San Diego, California 92121
___________________________
Attn: Property Manager
___________________________
___________________________
From and after the Commencement Date:
___________________________
___________________________
___________________________
___________________________
___________________________
___________________________
</TABLE>
A copy of any notices
to Landlord shall be
sent to Equity
Office,
One Market, 600 Spear
Tower, San
Francisco,
CA 94105, Attn: Los
Angeles Regional Counsel.
2. Possession.
2.01
Intentionally omitted.
2.02 The Premises are accepted by Tenant in "as is" condition and
configuration without any representations or warranties by
Landlord. Landlord
shall not be liable for any failure to
deliver possession of the Premises or any
other space due to the holdover or unlawful possession of such space by any
party. In such event, the commencement date for such space shall be
postponed
until the date Landlord delivers
possession of the
Premises to Tenant free from
occupancy by any party.
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<PAGE>
3. Rent. Tenant shall pay Landlord,
without any setoff or
deduction, all
Base
Rent and Additional Rent due for the Term
(collectively referred
to as "Rent").
"Additional Rent" means all sums (exclusive of Base Rent) that Tenant is
required to pay Landlord under this Lease. Tenant shall pay and be liable
for
all rental, sales and use taxes (but excluding
income taxes),
if any, imposed
upon or measured by Rent. Base Rent and
recurring monthly
charges of Additional
Rent shall be due and payable in advance on
the first day of each calendar month
without notice or demand. All other items of Rent shall be due and
payable by
Tenant on or before 30 days after billing by Landlord provided that the
installment of Base Rent and Additional Rent for the first full calendar
month
of the Term shall be payable upon the
execution of this Lease by Tenant.
Rent
shall be made payable to the entity and
sent to the address Landlord designates.
Tenant shall pay Landlord an administration fee equal to 5% of all past
due
Rent. In addition, past due Rent shall accrue
interest at 12% per
annum. Rent
for any partial month during the Term shall be
prorated. No endorsement or
statement on a check or letter accompanying payment shall be considered an
accord and satisfaction. Tenant's covenant to pay Rent is
independent of every
other covenant in this Lease.
4. Compliance with Laws; Use. The Premises shall
be used for the Permitted Use
and for no other use whatsoever.
Tenant shall comply
with all statutes,
codes,
ordinances, orders, rules and regulations of any municipal or governmental
entity ("Laws") regarding the operation of Tenant's business and the use,
condition, configuration and occupancy of
the Premises. Tenant shall comply with
the rules and regulations of the Building
attached as Exhibit E
and such other
reasonable rules and regulations as adopted
by Landlord from time to time.
5. Security Deposit. The Security Deposit shall be delivered to
Landlord upon
the execution of this Lease by Tenant and
held by Landlord without liability for
interest (unless required by Law) as security for
the performance of
Tenant's
obligations. The Security Deposit is not an
advance payment of Rent or a measure
of damages. Landlord may use all or a
portion of the Security Deposit to satisfy
past due Rent, cure any Default (defined in
Section 17), or to satisfy any other
loss or damage resulting from Tenant's Default as provided in Section 18.
If
Landlord uses any portion of the Security Deposit, Tenant shall on demand
restore the Security Deposit to its
original amount.
Landlord shall return
any
unapplied portion of the Security Deposit to Tenant within 45 days after the
later to occur of: (a) determination of the final Rent
due from Tenant; or
(b)
the later to occur of the Termination Date or the date Tenant
surrenders
the
Premises to Landlord in compliance with Section 24. Landlord shall not be
required to keep the Security Deposit
separate from its
other accounts.
Tenant
hereby waives the provisions of Section
1950.7 of the California Civil Code, or
any successor Laws now or hereafter in
effect.
6. Building Services. Landlord shall
furnish Tenant with the following services:
(a) water service for use in the base
building lavatories;
(b) customary
heat
and air conditioning in season during
standard Building service hours, although
Tenant shall have the right to receive
HVAC service during hours other than
standard service hours by paying
Landlord's then
standard charge for additional
HVAC service and providing such reasonable prior notice as is specified by
Landlord; (c) standard janitor service; (d) elevator service; and (e)
electricity. Electricity used by Tenant in the Premises
shall, at Landlord's
option, be paid for by Tenant either:
(i) through inclusion
in Expenses (except
as provided for excess usage); (ii) by a separate charge payable by Tenant to
Landlord; or (iii) by separate charge billed
by the applicable utility company.
Tenant's use of electrical service shall not exceed the
standard usage for
the
Building. Landlord's failure to furnish,
or any interruption,
diminishment or
termination of, services due to the application of Laws, the failure of any
equipment, the performance of repairs,
improvements
or alterations, utility
interruptions or the occurrence of an event
of Force Majeure (defined in Section
25.02) shall not render Landlord liable to Tenant, constitute a constructive
eviction of Tenant, give rise to an abatement of Rent,
nor relieve Tenant
from
the obligation to fulfill any covenant or
agreement.
7. Leasehold Improvements. All improvements in and to the
Premises, including
any Alterations (defined in Section 8.02) (collectively, "Leasehold
Improvements") shall remain upon the Premises at the end of the Term
without
compensation to Tenant, provided that
Tenant, at its expense, in compliance with
the National Electric Code or other applicable
Laws, shall remove, on or before
the Termination Date, any electronic,
fiber, phone and data
cabling and related
equipment (collectively, "Cable") installed by or for the
benefit of Tenant. In
addition, Landlord, by written notice to Tenant at least 30 days
prior to the
Termination Date, may require Tenant, at its expense, to remove any Landlord
Work or Alterations that, in Landlord's
reasonable
judgment, are not standard
office improvements and are of a nature
that would require material removal and
repair costs (collectively referred to as
"Required
Removables"). Tenant
shall
repair any damage caused by the
installation or removal of the Cable or Required
Removables.
8. Repairs and Alterations.
8.01 Tenant shall periodically inspect the Premises to identify any
conditions that are dangerous or in need of maintenance or repair and shall
promptly provide Landlord with notice of any such
conditions. Tenant
shall, at
its sole cost and expense, promptly perform all maintenance and
repairs to the
Premises that are not Landlord's
express responsibility under this Lease, and
shall keep the Premises in good condition
and repair, reasonable
wear and tear
excepted. If Tenant fails to make any repairs to the
Premises for more than 15
days after notice from Landlord (although notice shall not be required in
an
emergency), Landlord may make the repairs,
and Tenant shall pay
the reasonable
cost of the repairs, together with an administrative
charge in an amount
equal
to 10% of the cost of the repairs.
Landlord shall perform
all maintenance
and
repairs upon the: (a) structural elements of the Building; (b) mechanical,
electrical, plumbing and fire/life safety systems serving the Building in
general; (c) Common Areas; (d) roof of the
Building; (e) exterior windows of the
Building; and (f) elevators serving the
Building. Tenant
hereby waives any and
all rights under and benefits of subsection
1 of Section 1932, and Sections 1941
and 1942 of the California Civil Code, or any similar or
successor Laws now or
hereinafter in effect.
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<PAGE>
8.02
Tenant shall not make alterations, repairs, additions or
improvements
or install any Cable (collectively
referred to as
"Alterations") without
first
obtaining the written consent of Landlord
in each instance,
which consent shall
not be unreasonably withheld. In order to obtain such approvals,
Tenant shall
furnish Landlord with plans and
specifications; names
of contractors acceptable
to Landlord; required permits and approvals; evidence of contractor's and
subcontractor's insurance in amounts reasonably
required by Landlord and naming
Landlord and the Landlord Related Parties as an additional insured; and any
security for performance in amounts reasonably required by Landlord. Tenant
shall reimburse Landlord for any sums paid by Landlord for third party
examination of Tenant's plans for Alterations. In addition, Tenant shall pay
Landlord a fee for Landlord's oversight and coordination of any Alterations
equal to 10% of the cost of the Alterations. Upon completion, Tenant shall
furnish "as-built" plans for Alterations,
completion
affidavits and full
and
final waivers of lien.
9. Entry by Landlord. Landlord may enter the Premises to inspect or show
the
Premises, to clean and make repairs,
alterations or
additions and to perform or
facilitate maintenance, repairs, alterations or additions
to any portion of the
Building. Except in emergencies or to
provide Building services, Landlord shall
provide Tenant with reasonable prior verbal notice of entry.
Entry by Landlord
shall not constitute a constructive eviction or entitle Tenant to an
abatement
or reduction of Rent.
10. Assignment and Subletting. Tenant shall
not, directly or indirectly, assign,
sublease, transfer or encumber any interest in this Lease or allow
any third
party to use any portion of the Premises (collectively or individually, a
"Transfer") without the prior written consent
of Landlord, which
consent shall
not be unreasonably withheld if Landlord
does not exercise its recapture rights.
Any attempted Transfer in violation of this
Article shall be a Default by Tenant
and shall, at Landlord's option, be void. Within 15
business days after receipt
of executed copies of the transfer
documentation
and such other
information as
Landlord may request, Landlord shall either: (a) consent to the Transfer by
execution of a consent agreement in a form reasonably designated by Landlord;
(b) refuse to consent to the Transfer; or (c) recapture the portion of the
Premises that Tenant is proposing to
Transfer. If Landlord
exercises its
right
to recapture, the Lease shall automatically be
amended to delete the applicable
portion of the Premises effective on the proposed effective date of the
Transfer. Tenant hereby waives the provisions of Section 1995.310 of the
California Civil Code, or any similar or
successor Laws, now or
hereinafter in
effect, and all other remedies,
including, without
limitation, any right at law
or equity to terminate this Lease, on its own behalf and, to the extent
permitted under all applicable Laws, on
behalf of the proposed transferee. In no
event shall any Transfer release or relieve Tenant from any obligation under
this Lease. Tenant shall pay Landlord a review
fee of $1,500.00 for
Landlord's
review of any requested Transfer. Tenant
shall pay Landlord, as Additional Rent,
50% of all rent and other consideration which Tenant receives as a result
of a
Transfer that is in excess of the Rent
payable to Landlord
for the portion of
the Premises and Term covered by the
Transfer. If Tenant is in Default, Landlord
may require that all sublease payments be made directly to Landlord, in which
case Tenant shall receive a credit
against Rent in the
amount of Tenant's share
of payments received by Landlord.
11. Liens. Tenant shall not permit
mechanics or other
liens to be placed upon
the Property or Premises in connection with
any work purportedly
done by or for
the benefit of Tenant or its transferees.
Tenant shall, within 10 days of notice
from Landlord, fully discharge any lien by
settlement or by bonding or insuring
over the lien in the manner prescribed by Law. Tenant's failure to fully
discharge the lien within such 10 day
period shall be a Default. In addition to
any other remedies available to Landlord as a result
of such Default by Tenant,
Landlord may bond, insure over or otherwise
discharge the lien. Tenant shall
reimburse Landlord for any amount paid by Landlord, including, without
limitation, reasonable attorneys' fees.
12. Indemnity and Waiver of Claims. Except to the extent caused by the
negligence or willful misconduct of Landlord or the
Landlord Related
Parties
(defined below), Tenant shall indemnify, defend and hold Landlord and the
Landlord Related Parties harmless against
and from all liabilities, obligations,
damages, penalties, claims, actions, costs, charges and expenses,
including,
without limitation, reasonable attorneys' fees and other
professional fees (if
and to the extent permitted by Law),
which may be imposed
upon, incurred by
or
asserted against Landlord or any of the Landlord
Related Parties by any
third
party and arising out of or in connection
with any damage or injury occurring in
the Premises or any acts or
omissions of Tenant or any of Tenant's
officers,
employees or agents (collectively the "Tenant Related
Parties") or any of their
transferees, contractors or licensees. Except to the extent caused by the
negligence or willful misconduct of Tenant or the Tenant Related Parties,
Landlord shall indemnify, defend and hold Tenant harmless
against and from all
liabilities, obligations, damages, penalties, claims, actions, costs,
charges
and expenses, including, without limitation, reasonable attorneys' fees and
other professional fees (if and to the extent
permitted by Law),
which may be
imposed upon, incurred by or asserted against Tenant or any of the Tenant
Related Parties by any third party and
arising out of or in connection with any
acts or omissions of Landlord or any of
the Landlord Related
Parties. Tenant
hereby waives all claims against and releases Landlord and its trustees,
members, principals, beneficiaries, partners, officers, directors,
employees,
Mortgagees and agents (the "Landlord
Related Parties") from all claims for
any
injury to or death of persons, damage to
property or business loss in any manner
related to (a) acts of God, (b) acts of third parties, (c) the bursting or
leaking of any tank, water closet, drain or other pipe, (d) the inadequacy or
failure of any security services, personnel or equipment, or (e) any matter
outside of the reasonable control of
Landlord.
13. Insurance. Tenant shall maintain the following insurance ("Tenant's
Insurance"): (a) Commercial General Liability Insurance applicable to the
Premises and its appurtenances providing, on an occurrence basis, a minimum
combined single limit of $2,000,000.00; (b) Property/Business Interruption
Insurance written on an All Risk or Special
Cause of Loss form,
with coverage
for broad form water damage including earthquake sprinkler leakage, at
replacement cost value and with a
replacement cost
endorsement covering
all of
Tenant's business and trade fixtures,
equipment, movable partitions, furniture,
merchandise and other personal property within the Premises ("Tenant's
Property") and any Leasehold Improvements performed by or for the benefit
of
Tenant; (c) Workers' Compensation Insurance
as required by Law and in amounts as
may be required by applicable statute and Employers Liability Coverage of at
least $1,000,000.00 per occurrence. Any
company writing Tenant's Insurance shall
have an A.M. Best rating of not less than A-VIII. All Commercial General
Liability Insurance policies shall name Landlord (or its successors and
assigns), the managing agent for the
Building (or any successor), Equity Office
Properties Trust, EOP Operating Limited Partnership and their respective
members, principals, beneficiaries, partners, officers, directors,
employees,
and agents, and other designees of Landlord and its
successors as the interest
of such designees shall appear, as
additional insureds.
In addition,
Landlord
shall be named as a loss payee with
respect to
Property/Business
Interruption
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<PAGE>
Insurance on the Leasehold Improvements. All policies of Tenant's Insurance
shall contain endorsements that the insurer(s) shall give Landlord and its
designees at least 30 days' advance written notice of any cancellation,
termination, material change or lapse of insurance. Tenant shall provide
Landlord with a certificate of insurance
evidencing Tenant's
Insurance prior to
the earlier to occur of the
Commencement
Date or the date
Tenant is provided
with possession of the Premises, and thereafter as necessary to assure
that
Landlord always has current certificates
evidencing Tenant's Insurance.
14. Subrogation. Landlord and Tenant hereby waive and shall cause their
respective insurance carriers to waive any
and all rights of recovery, claims,
actions or causes of action against the other for any loss or damage
with
respect to Tenant's Property, Leasehold Improvements, the Building, the
Premises, or any contents thereof,
including rights,
claims, actions and causes
of action based on negligence, which loss or damage is (or would
have been, had
the insurance required by this Lease been
carried) covered by insurance. For the
purposes of this waiver, any deductible with respect to a party's insurance
shall be deemed covered by and recoverable by such party under valid and
collectable policies of insurance.
15. Casualty Damage. Landlord, by notice to
Tenant within 60 days of the date of
the fire or other casualty (a "Casualty"), shall have the right to
terminate
this Lease if all or any part of the
Premises is damaged to the extent that
it
cannot reasonably be repaired within 120
days after the date of the Casualty. If
this Lease is not terminated, Landlord
shall promptly and diligently restore the
Premises. Such restoration shall be to substantially the same condition that
existed prior to the Casualty, except for modifications required by Law.
However, in no event shall Landlord be
required to spend more than the insurance
proceeds received by Landlord. Upon notice
from Landlord, Tenant shall assign or
endorse over to Landlord (or to any party
designated
by Landlord) all
property
insurance proceeds payable to Tenant under Tenant's
Insurance with respect
to
any Leasehold Improvements performed by or for the benefit of
Tenant; provided
if the estimated cost to repair such
Leasehold Improvements
exceeds the amount
of insurance proceeds received by Landlord
from Tenant's insurance carrier, the
excess cost of such repairs shall be paid by Tenant to Landlord prior to
Landlord's commencement of repairs. Within 15
days of demand, Tenant shall also
pay Landlord for any additional excess costs that are determined during the
performance of the repairs. Landlord shall not be liable for
any inconvenience
to Tenant, or injury to Tenant's business, resulting in any way from the
Casualty or the repair thereof.
Provided that Tenant
is not in Default,
during
any period of time that all or a material
portion of the
Premises is rendered
untenantable as a result of a Casualty,
the Rent shall abate
for the portion of
the Premises that is untenantable and not
used by Tenant. The provisions of this
Lease, including this Section 15, constitute an express agreement between
Landlord and Tenant with respect to any and
all damage to, or
destruction of,
all or any part of the Premises,
the Building, the
Property or the Project, and
any Laws, including, without limitation, Sections 1932(2) and 1933(4) of
the
California Civil Code, with respect to any rights or
obligations
concerning
damage or destruction in the absence of an express agreement between the
parties, and any similar or successor Laws
now or hereinafter in effect, shall
have no application to this Lease or any damage or
destruction
to all or any
part of the Premises, the Building or the
Property.
16. Condemnation. Either party may terminate this
Lease if any material part of
the Premises is taken or condemned for any
public or quasi-public use under Law,
by eminent domain or private purchase in lieu thereof (a
"Taking").
Landlord
shall also have the right to
terminate this Lease if there is a Taking of
any
portion of the Building or Property
which would have a
material adverse
effect
on Landlord's ability to profitably
operate the remainder
of the Building.
The
terminating party shall provide written
notice of termination to the other party
within 45 days after it first receives notice of the Taking. The termination
shall be effective as of the effective date
of any order granting possession to,
or vesting legal title in, the condemning
authority.
All compensation
awarded
for a Taking, or sale proceeds, shall be
the property of Landlord. Tenant hereby
waives any and all rights it might
otherwise have
pursuant to Section
1265.130
of the California Code of Civil Procedure,
or any similar or successor Laws.
17. Events of Default. In addition to any
other default
specifically
described
in this Lease, each of the following occurrences shall be considered to be a
"Default": (a) Tenant's failure to pay any portion of Rent when due,
if the
failure continues for 3 days after written
notice to Tenant,
which notice shall
be in satisfaction of, and not in addition
to, notice required by Law ("Monetary
Default"); or (b) Tenant's failure (other than a Monetary
Default) to comply
with any term, provision, condition or
covenant of this Lease, if the failure is
not cured within 10 days after written
notice to Tenant,
which notice shall
be
in satisfaction of, and not in addition to, notice
required by Law,
provided,
however, if Tenant's failure to comply cannot reasonably be cured within 10
days, Tenant shall be allowed additional time (not to exceed 60 days) as
is
reasonably necessary to cure the failure so long as
Tenant commences
to cure
within 10 days and Tenant diligently
pursues the cure to completion.
18. Remedies.
18.01
Upon the occurrence of any Default under this Lease, whether
enumerated in Section 17 or not, Landlord shall have the option to pursue
any
one or more of the following remedies without any notice (except as expressly
prescribed herein) or demand whatsoever (and
without limiting the generality of
the foregoing, Tenant hereby specifically waives notice and
demand for payment
of Rent or other obligations, except for those notices
specifically
required
pursuant to the terms of Section 17 or this
Section 18, and waives
any and all
other notices or demand requirements
imposed by applicable law):
(a) Terminate
this Lease and
Tenant's right to
possession of the
Premises and recover from Tenant an award of damages
equal to the sum of
the
following:
(i) The Worth at the Time of Award of the unpaid Rent which
had been earned at the time of
termination;
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(ii) The Worth at the Time of Award of the amount by which the
unpaid Rent which would have been earned
after termination until the time of
award exceeds the amount of such Rent loss that
Tenant affirmatively proves
could have been reasonably avoided;
(iii) The Worth at the Time of Award of the
amount by which
the unpaid Rent for the balance of the Term
after the time of award exceeds the
amount of such Rent loss that Tenant
affirmatively
proves could be
reasonably
avoided;
(iv) Any other amount necessary to compensate Landlord for all
the detriment either proximately caused by Tenant's
failure to perform Tenant's
obligations under this Lease or which in the
ordinary course of things would be
likely to result therefrom; and
(v) All such other
amounts in addition
to or in lieu of
the
foregoing as may be permitted from time to
time under applicable law.
The "Worth at the Time of Award" of the amounts referred to in
parts (i) and (ii) above, shall be computed by allowing
interest at the
lesser
of a per annum rate equal to: (A) the greatest per annum rate of interest
permitted from time to time under
applicable law, or (B) the Prime Rate plus 5%.
For purposes hereof, the "Prime Rate" shall be the per annum
interest rate
publicly announced as its prime or base rate by a federally insured bank
selected by Landlord in the State of California. The "Worth at the Time of
Award" of the amount referred to in part (iii), above, shall be computed by
discounting such amount at the discount rate
of the Federal Reserve Bank of San
Francisco at the time of award plus 1%;
(b) Employ the remedy
described in California Civil Code ss. 1951.4
(Landlord may continue this Lease in effect after Tenant's breach and
abandonment and recover Rent as it becomes due, if Tenant has the right to
sublet or assign, subject only to
reasonable limitations); or
(c)
Notwithstanding
Landlord's exercise of
the remedy described in
California Civil Code ss. 1951.4 in respect
of an event or events of default, at
such time thereafter as Landlord may elect
in writing, to
terminate this Lease
and Tenant's right to possession of the
Premises and recover an award of damages
as provided above in Paragraph
18.01(a).
18.02 The
subsequent acceptance of Rent hereunder by Landlord shall not
be
deemed to be a waiver of any preceding
breach by Tenant of any term, covenant or
condition of this Lease, other than the failure of Tenant
to pay the particular
Rent so accepted, regardless of Landlord's
knowledge of such preceding breach at
the time of acceptance of such Rent. No waiver
by Landlord of any breach hereof
shall be effective unless such waiver is in
writing and signed by Landlord.
18.03
TENANT HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275
OF
THE CIVIL CODE OF CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE
OF
CIVIL PROCEDURE OF CALIFORNIA
AND ANY AND ALL OTHER
LAWS AND RULES OF LAW FROM
TIME TO TIME IN EFFECT DURING THE LEASE TERM PROVIDING THAT TENANT SHALL HAVE
ANY RIGHT TO REDEEM, REINSTATE OR RESTORE THIS LEASE
FOLLOWING ITS
TERMINATION
BY REASON OF TENANT'S BREACH. TENANT ALSO HEREBY WAIVES,
TO THE FULLEST
EXTENT
PERMITTED BY LAW, THE RIGHT TO TRIAL BY
JURY IN ANY LITIGATION ARISING OUT OF OR
RELATING TO THIS LEASE.
18.04 No
right or remedy herein
conferred upon or reserved to Landlord is
intended to be exclusive of any other right
or remedy, and each
and every right
and remedy shall be cumulative and in addition to any other right or remedy
given hereunder or now or hereafter
existing by agreement,
applicable law or in
equity. In addition to other remedies
provided in this Lease, Landlord shall be
entitled, to the extent permitted by
applicable law, to injunctive relief, or to
a decree compelling performance of any of
the covenants, agreements, conditions
or provisions of this Lease, or to any other remedy
allowed to Landlord at
law
or in equity. Forbearance by Landlord to enforce one or more of the
remedies
herein provided upon an event of default
shall not be deemed or
construed to
constitute a waiver of such default.
18.05 If
Tenant is in Default of any of its non-monetary obligations
under
the Lease, Landlord shall have the right to perform
such obligations.
Tenant
shall reimburse Landlord for the cost of such
performance upon
demand together
with an administrative charge equal to 10% of the cost of
the work performed by
Landlord.
18.06 This
Section 18 shall be
enforceable
to the maximum extent such
enforcement is not prohibited by applicable
law, and the unenforceability of any
portion thereof shall not thereby render
unenforceable any other portion.
19. Limitation of Liability.
THE
LIABILITY OF LANDLORD (AND OF ANY SUCCESSOR LANDLORD) SHALL BE
LIMITED
TO THE LESSER OF (A) THE INTEREST OF
LANDLORD IN THE PROPERTY, OR (B) THE EQUITY
INTEREST LANDLORD WOULD HAVE IN THE
PROPERTY IF THE PROPERTY WERE ENCUMBERED BY
THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70%
OF THE VALUE OF THE PROPERTY. TENANT
SHALL LOOK SOLELY TO LANDLORD'S INTEREST IN
THE PROPERTY FOR THE RECOVERY OF ANY
JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER
LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE PERSONALLY LIABLE FOR ANY
JUDGMENT OR DEFICIENCY AND IN NO EVENT SHALL LANDLORD OR ANY LANDLORD
RELATED
PARTY BE LIABLE TO TENANT FOR ANY LOST
PROFIT, DAMAGE TO OR
LOSS OF BUSINESS OR
ANY FORM OF SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN
ALLEGED DEFAULT BY LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S)
(DEFINED IN SECTION 22 BELOW) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES
(DEFINED IN SECTION 22 BELOW), NOTICE AND REASONABLE TIME TO CURE THE ALLEGED
DEFAULT.
5
<PAGE>
20. Relocation. Landlord, at its expense,
at any time before or during the Term,
may relocate Tenant from the Premises to
space of reasonably comparable size and
utility ("Relocation Space") within the Building or
other buildings within the
same project upon 60 days' prior
written notice to Tenant. From and after the
date of the relocation, "Premises" shall refer to the Relocation Space into
which Tenant has been moved and the Base
Rent and Tenant's Pro Rata Share shall
be adjusted based o