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HomeMy WebLinkAboutR-1992-D6120 Century Plaza / Yakima MallRESOLUTION NO. D 6 1 2 0 A RESOLUTION authorizing the City Manager of the City of Yakima to terminate a lease agreement with CENTURY PLAZA PARTNERSHIP for the premises cur- rently used by the City Legal Department and authorizing the City Manager to execute a lease with YAKIMA MALL SHOPPING CENTER corporation for new Legal Department Office Space. WHEREAS, the City of Yakima Legal Department currently is occupying leased office space at 201 East Lincoln Avenue, Suite 5, Yakima, Washington; and WHEREAS, said leased office space is unhealthful because of the presence of tobacco smoke in the ventilation system; and WHEREAS, the City of Yakima has the legal right to termi- nate the Office Lease Agreement based upon these unhealthful conditions, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to take all necessary steps to terminate the Office Lease Agree- ment with CENTURY PLAZA PARTNERSHIP for the City of Yakima Legal Department and to execute a Lease Agreement with YAKIMA MALL SHOPPING CENTER CORPORATION for new Legal Department Office Space subject to the following limitations: (1) maxi- mum month rent of $2,300.00 for the first year with reasonable cost -of -living increase for the remaining term, (2) three-year term, (3) adequate parking, (4) healthful surroundings, and (5) full service. ADOPTED BY THE CITY COUNCIL this day of KAN--‘r , 1992. (;)/a - Mayor ATTEST: City Clerk (res/cntry.rp) ORIG NAL THE NACHES BUILDING TENANT LEASE TO THE CITY OF YAKIMA TENANT Ma_ DATE LEASE AGREEMENT 1.0 BASIC LEASE PROVISIONS 1.1 LESSOR: YAKIMA MALL SHOPPING CENTER CORPORATION ADDRESS: THE TOWER 402 E YAKIMA AVENUE SUITE 1400 YAKIMA WA 98901 Phone: (509) 248-4040 1.2 TENANT: THE CITY OF YAKIMA, a Washington State Municipal Corporation ADDRESS: 129 NORTH SECOND STREET YAKIMA WA 98901 PHONE NUMBER: (509) 575-6030 1.3 PREMISES: The Naches Building, East Yakima Avenue and South Naches Avenue, Suite 100, and consisting of approximately 2264 square feet. 1.4 PERMITTED USES: City legal and general office use. 1.5 LEASE TERM: 1.6 COMMENCEMENT DATE: 1.7 TERMINATION DATE: Three Years. August 1, 1992 July 31, 1995 1.8 BASE RENT: $2,300.00 per month adjusted by Consumer Price Index increases. 1.9 CONSUMER PRICE INDEX BASE PERIOD: 1.9.1 MINIMUMS AND MAXIMUMS: 1.10 TAX INCREASE BASE YEAR: 1992 December 1991 Minimum 3% Maximum 6% 1.11 PARKING: Landlord shall provide ten (10) parking spaces, either in the remote lot or, at Landlord's option, in the adjacent lot or the Mall Parking Garage. 2.0 5.0 3.0 3.0 3.0 4.1 4.2 4.2 4.3 2.2 1.12 RIGHT TO RELOCATE: Landlord shall have the right at any time during the term of this Lease, upon giving Tenant sixty (60) days' notice in writing, to provide and furnish Tenant with like space in THE TOWER Building of approximately the same size and area as the herein demised space and at Landlord's expense to remove and replace Tenant in such new space. Should Tenant refuse to permit the Landlord to move Tenant to such new space at the end of the 60 -day period, the Landlord shall have the right to cancel and terminate this Lease, effective immediately, without further notice. In the event Landlord relocates Tenant to such new space, then this Lease shall be amended to reflect the Tenant's relocation, and each and all of the terms, covenants and conditions thereof shall thereupon remain in full force and effect and be deemed applicable to such new space. Tenant shall not be required to pay any additional rent beyond that required in Section 1.8 in the event that Landlord relocates Tenant to new space in THE TOWER BUILDING. 1.13 TENANT'S CONTINGENT RIGHT TO TERMINATE: Tenant shall have the right to terminate this Lease prior to the end of the three year lease term under either one of the following bases: (a) If, after the first two years of the lease term, government-owned office space becomes available for use by the City of Yakima Legal Department, Tenant may, at its option, terminate this Lease. Written Notice of Termination shall be given to Landlord not less than ninety (90) days prior to the date of Lease termination pursuant to this provision. Upon the effective date of such termination, this Lease shall be deemed canceled by mutual agreement of the parties without penalty or further obligation by either party. (b) If, at any time during the term of this Lease, the indoor air quality of the Demised Premises is determined in Tenant's sole discretion to be unhealthful or unsatisfactory, then Tenant may, at its option, give Landlord a thirty (30) calendar day written Notice of Intent to Vacate the Demised Premises. If upon expiration of said thirty (30) day notice, the indoor air quality has not been improved to Tenant's satisfaction, then Tenant may, at its option, give Landlord a Notice of Termination which shall be effective thirty (30) days after the transmission of said Notice of Termination to Landlord. Upon the effective date of such termination, this Lease shall be deemed canceled by mutual agreement of the parties without penalty or further obligation by either party. The circumstances involving indoor air quality of the Demised Premises under which this provision may be invoked include, but are not limited to, the presence of tobacco smoke, carbon dioxide, carbon monoxide, allergens, particulates, gases, and fumes. 1.14 LANDLORD TO MAKE IMPROVEMENTS: Landlord and Tenant agree that Landlord shall, at its sole expense, construct certain alterations and improvements to the Demised Premises for the purpose of making the Demised Premises suitable as office space for the City of Yakima Legal Department. The alterations and improvements to be constructed by Landlord are shown on the floor plan diagram which is attached hereto as Exhibit "A" and incorporated by reference herein. All new walls shown on the attached floor plan shall be constructed in the locations indicated from floor to ceiling in order to establish six (6) enclosed attorney offices and one (1) enclosed conference room. Each office shall have its own door, and the construction shall be performed in such a way as to minimize the transmission of sound between offices. All alterations and improvements shall be constructed in accordance with local ordinances and building codes, including, but not limited to, adequate electrical power outlets, telephone jacks, and light switches. All construction shall be performed in conformance with all applicable standards of professional skill, competence, and care so that the Demised Premises can be used by Tenant as attorney office space. Landlord shall paint the walls and ceilings, as needed. (iv) THE NACHES BUILDING YAKIMA, WASHINGTON OFFICE BUILDING LEASE THIS LEASE is made this 10 day of '31,, t , 1992 between YAKIMA MALL SHOPPING CENTER CORPORATION, a Washington corporation, ("Landlord") and THE CITY OF YAKIMA, a Washington State Municipal Corporation ("Tenant"). 1.0 BASIC LEASE PROVISIONS: The Basic Lease Provisions on the previous pages ii, iii and iv are hereby incorporated into this Lease. 2.0 DEMISED PREMISES: 2.1 Landlord hereby leases to Tenant those certain premises located in THE NACHES BUILDING (hereinafter the "Building") designated on the floor plan attached hereto as Exhibit "A" (the "Demised Premises"), and more particularly described in section 1.3 of this Lease (page ii above), located on the following described real property situate in the City of Yakima, Yakima County, Washington, to wit: Lots 11 and 12, Block 91, TOWN OF NORTH YAKIMA, now YAKIMA, as recorded in Volume "E" of Plats, Page 1, Records of the Auditor of Yakima County, Washington. This Lease is subject to the terms, covenants and conditions set forth herein and Tenant and Landlord each covenant as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the condition of such performance. 2.2 Parking: The underground and adjacent street level, remote (Naches and Chestnut Street), and Yakima Mall Garage (Mall Parking) parking facilities are owned (or leased) and operated by Landlord. Landlord agrees to provide Tenant, without charge other than the rent hereinabove provided for, with the parking spaces as described in section 1.11 of this Lease. 3.0 TERM: The term of this Lease shall be as described in section 1.5 commencing on the date set forth in section 1.6, or -1- as soon thereafter as the Demised Premises may be ready for occupancy, and shall end on the date set forth in section 1.7 unless sooner terminated pursuant to any of the provisions of this Lease. 4.0 RENT: 4.1 Base Rent: Tenant agrees to pay to Landlord, in advance, on or before the first day of each and every month during the term hereof, at the offices of the Landlord in THE TOWER, or at such other place as Landlord may from time to time designate (by written notice to the Tenant), the base rent set forth in section 1.8 of this Lease (page ii above). Rent for a part of the month shall be prorated in proportion to the number of days in said month. 4.2 Adjustment To Rent -- Consumer Price Index: The Base Rent to be paid to Landlord by Tenant shall be adjusted effective August 1 of each year of the Lease term to an amount equal to the Base Rent multiplied by a fraction, the numerator of which shall be the Consumer Price Index published by the Bureau of Labor Statistics of the U.S. Department of Labor for All Urban Consumers (CPI -U) U.S. City Average for All Items, with a reference base period of 1982-84=100 (Index) for the month of December immediately preceding the August 1st adjustment, and the denominator of which shall be the same Index published for the month of December of the year set forth in section 1.9 of the Basic Lease Provisions (page ii hereof). In no event shall the monthly rent be reduced. Adjustments to rent pursuant to this section 4.2 shall be subject to the provisions of section 4.2.2 below. 4.2.1 Publication Dates: In the event that the Index is published less frequently than semi-annually, then the increase reflected in the next published Index shall be used. All increases in rent shall relate back to rent payable since the last rent adjustment. 4.2.2 Minimum and Maximum Increases: Notwithstanding anything above to the contrary, should any such adjustment to the monthly base rental result in a rental increase that is less than the minimum percentage annual rental increases set forth in section 1.9.1 of the Basic Lease Provisions, then in such event, the increase in Base Rent shall be as provided in said Basic Lease Provisions section of this Lease. In no event shall the increase to Base Rent exceed the maximum annual increase as provided in said section 1.9.1 of the Basic Lease Provisions. -2- 4.2.3 Changes to Index: If the U.S. Government ceases to publish the Index on a 1982-84=100 reference base period, the Index shall be converted to the currently published standard reference base period in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the term, such other governmental index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. If a correction is made to previously published Index data, the corrected data shall be used prospectively. 4.3 Tax Adjustment: The Base Rent to be paid to Landlord by Tenant shall be adjusted effective August 1 of each year by adding thereto the Tenant's pro rata share of any increase in taxes up to but not in excess of six percent (6%) per year over the Tax Increase Base Year set forth in section 1.10 of the Basic Lease Provisions (page ii hereof). The Tenant's pro rata share shall be determined by dividing the total square footage of the Demised Premises by the total square footage in THE NACHES BUILDING available for lease. One -twelfth of the amount so determined shall be added to the Basic Monthly Rent payable hereunder effective August 1 of each year of the Lease. Property taxes shall mean all real and personal property taxes or assessments, including LID assessments, levied against the land and improvements including any costs incurred in obtaining a reduction of the taxes, which cost shall be allocated to the period for which the reduction applies. Property taxes shall also include any tax levied in whole or part in lieu of property tax. 5.0 CHARACTER OF OCCUPANCY: 5.1 The Demised Premises are to be used for the purposes described in section 1.4 and for no other purpose. 5.2 Tenant shall not suffer nor permit the Demised Premises nor any part thereof to be used in any manner, nor anything to be done therein, nor suffer or permit anything to be brought into or kept therein, which would in any way (i) make void or voidable any fire or liability insurance policy then in force with respect to the Building; (ii) make unobtainable from reputable insurance companies authorized to do business in the State of Washington any fire insurance with extended coverage, or liability, elevator, boiler or other insurance required to be furnished by Landlord under the terms of any lease -3- or mortgage to which this Lease is subordinate at standard rates provided Tenant is not deprived of its intended use of the Demised Premises; (iii) cause or in Landlord's reasonable opinion be likely to cause physical damage to the Building or any part thereof; (iv) constitute a public or private nuisance; (v) impair, in the reasonable opinion of Landlord, the appearance, character or reputation of the Building; (vi) discharge objectionable fumes, vapors or odors into the Building air conditioning system or into the Building flues or vents not designed to receive them or otherwise in such manner as may unreasonably offend other occupants; (vii) impair or interfere with any of the Building services or impair or interfere with or tend to impair or interfere with the use of any of the other areas of the Building by, or occasion discomfort, or annoyance to Landlord or any of the other tenants or occupants of the Building, any such impairment or interference to be in the reasonable judgment of Landlord; (viii) injure the reputation of the Building or permit the use of the Demised Premises for lodging or sleeping purposes; (ix) increase on an ongoing periodic basis the pedestrian traffic in and out of the Demised Premises or the Building above an ordinary level; (x) constitute waste; or (xi) make any noise or set up any vibration which will disturb other tenants, except in the course of permitted repairs or alterations. 5.3 Tenant shall not use the Demised Premises nor permit anything to be done in or about the Demised Premises which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall give prompt notice to Landlord of any notice it receives of the violation of any law or requirement of any public authority with respect to the Demised Premises or the use or occupation thereof. Landlord shall give prompt notice to Tenant of any notice it receives relative to the violation by Tenant of any law or requirement of any public authority with respect to the Demised Premises or the use or occupation thereof. 6.0 SERVICES AND UTILITIES: 6.1 Landlord shall maintain the leased premises and the public and common areas of the Building in reasonably good order and condition consistent with first class office space in Yakima, Washington, except for damage occasioned by the act or omission of Tenant, the repair of which damage shall be paid for by Tenant. Landlord shall furnish the leased premises with electricity for lighting and the operation of low power usage office machines, heat, normal air conditioning, water, and sewer -4- service. Landlord shall also provide light replacement service for landlord -furnished lighting, toilet room supplies, window washing at reasonable intervals, and customary building janitor service. 6.2 Landlord shall not be liable to Tenant for any loss or damage caused by or resulting from any variation, interruption, or failure of such services due to any cause beyond Landlord's reasonable control. No temporary interruption or failure of such services incident to the making of repairs, alterations, or improvements or due to accident or strike, or conditions or events beyond Landlord's reasonable control, shall be deemed a constructive eviction of Tenant or relieve Tenant from any of Tenant's obligations hereunder. 6.3 Before installing any equipment in the leased premises that generates more than a minimum amount of heat, Tenant shall obtain the written consent of Landlord, and if the amount of heat generated would place an undue burden on the air conditioning system for the building, Landlord may condition such consent on the Tenant's reimbursement of costs of installation, operation and maintenance of required additional air conditioners. 6.4 Landlord warrants and covenants to Tenant that the Demised Premises will at all times be habitable and suitable for human occupancy for the uses and purposes contemplated by this Lease. 7.0 OUIET ENJOYMENT: Landlord warrants and agrees to defend Tenant in the quiet enjoyment and possession of the Demised Premises during the term of this Lease so long as Tenant complies with the provisions hereof. 8.0 MAINTENANCE AND REPAIRS: 8.1 Landlord shall make all necessary repairs and replacements to the non -leasable areas of the Building, to the heating, air conditioning and electrical systems located in the Building and to the common areas, and Landlord shall also make all repairs to the Demised Premises which are structural in nature; provided, however, that Tenant shall reimburse Landlord for all repairs and replacements arising from Tenant's act, neglect or default and that of its agents, servants and employees. 8.1.1 In the event that the Landlord shall deem it necessary, or be required by any governmental authority to repair, alter, remove, reconstruct or improve any part of the Demised Premises or of the Building (unless the same result from Tenant's act, neglect, default or mode of operation), then the same shall be made by Landlord with reasonable dispatch, and should the making of such repairs, alterations or improvements cause any interference with Tenant's use of the Demised Premises, such interference shall not relieve Tenant from the performance of its obligations hereunder. 8.2 Tenant, at Tenant's sole cost and expense, except for services furnished by Landlord pursuant to section 6 hereof, shall maintain the Demised Premises in good order, condition and repair including the interior surfaces of the ceilings (if damaged or discolored due to the fault of Tenant), walls and floors, all doors, interior glass partitions or glass surfaces (not exterior windows). Tenant agrees to promptly repair at Tenant's expense all injury to the Demised Premises, or to the building of which they are a part, caused by moving the property of Tenant into, in, or out of the Building or the Demised Premises. In the event Tenant fails to maintain the Demised Premises in good order, condition and repair, Landlord shall give Tenant notice to do such acts as are reasonably required to so maintain the Demised Premises. In the event Tenant fails to promptly commence such work and diligently prosecute it to completion, then Landlord shall have the right, but shall not be required, to do such acts and expend such funds at the expense of Tenant as are reasonably required to perform such work. Landlord shall have no liability to Tenant for any damage, inconvenience or interference with the use of the Demised Premises by Tenant as a result of performing any such work. 9.0 ALTERATIONS AND ADDITIONS: 9.1 Tenant shall make no alterations, additions or improvements to the Demised Premises or any part thereof without obtaining the prior written consent of Landlord. Landlord may impose, as a condition to the aforesaid consent, such requirements as Landlord may deem necessary in its reasonable judgment. Those requirements will normally include requiring the Tenant to submit professionally prepared and reasonably detailed plans and specifications for the work for Landlord's prior written approval, and requiring the Tenant to use the contractor designated by Landlord. Those requirements may include without limitation the manner in which the work is done, and the times -6- during which it is to be accomplished. Tenant further agrees not to connect with Building systems, including electric wires, water pipes, fire safety and mechanical systems, any apparatus, machinery or device without the prior written consent of Landlord. 9.2 All alterations and additions to the Demised Premises (whether performed with or without Landlord's consent as provided herein), shall be deemed a part of the real estate and the property of Landlord and shall remain upon and be surrendered with the Demised Premises as a part thereof without molestation, disturbance or injury at the end of said term, whether by lapse of time or otherwise, unless Landlord, by notice given to Tenant no later than fifteen (15) days prior to the end of the term, shall elect to remove or to have Tenant remove all or any of such alterations or additions (excluding standard Tenant finish work and non-movable office walls), and in such event, tenant shall promptly remove, at its sole cost and expense, such alterations and additions and restore the Demised Premises to the condition in which the premises were prior to the making of the same, reasonable wear and tear excepted. Any such removal, whether required or permitted by Landlord, shall be at Tenant's sole cost and expense, and Tenant shall restore the Demised Premises to the condition in which the Demised Premises were prior to the making of the same, reasonable wear and tear excepted. All movable partitions, machines and equipment which are installed in the Demised Premises by or for the account of Tenant, without expense to Landlord, and can be removed without permanent structural damage to or defacement of the Building or the Demised Premises, and all furniture, furnishings and other articles of personal property owned by Tenant and located in the Demised Premises (all of which are herein called "Tenant's Property"), shall be and remain the property of Tenant and may be removed by it at any time during the term of this Lease. However, if any of Tenant's Property is removed, Tenant shall repair or pay the cost of repairing any damage to the Building or the Demised Premises resulting from such removal. All additions or improvements which are to be surrendered with the Demised Premises shall be surrendered with the Demised Premises, as a part thereof, at the end of the term or the earlier termination of this Lease. 9.3 If Landlord authorizes persons requested by Tenant to perform any alterations, repairs, modifications or additions to the Demised Premises, then prior to the commencement of any such work, Tenant shall on request of Landlord deliver to Landlord certificates issued by insurance companies qualified to do business in the State of Washington evidencing that Workmen's Compensation, public liability insurance and property damage -7- insurance, all in amounts, with companies and on forms reasonably satisfactory to Landlord, are in force and effect and maintained by all such contractors and subcontractors engaged by Tenant to perform such work. All such policies shall name Landlord as an additional insured. Each such certificate shall provide that the same may not be canceled or modified without thirty (30) days' prior written notice to Landlord. 9.4 Tenant, at its sole cost and expense, shall cause any permitted alterations, decorations, installations, additions or improvements in or about the Demised Premises to be performed in compliance with all applicable requirements of insurance bodies having jurisdiction, and in such manner as not to interfere with, delay, or impose any additional expense upon Landlord in the construction, maintenance or operation of the Building, and so as to maintain harmonious labor relations in the Building. 10.0 ENTRY BY LANDLORD: Landlord and its agents shall have the right to enter the Demised Premises at all reasonable times and upon reasonable notice for the purpose of examining or inspecting the same, to supply any services to be provided by Landlord for Tenant hereunder, to show the same to prospective purchasers of the Building, to make such alterations, repairs, improvements or additions to the Demised Premises or to the Building of which they are a part as Landlord may deem necessary or desirable, and to show the same to prospective tenants of the Demised Premises (provided that in the event of a bona fide emergency, Landlord may enter the Demised Premises without advance notice solely for the purpose of taking emergency action). Landlord may, for the purpose of supplying scheduled janitorial services, enter the Demised Premises by means of a master key without liability to Tenant and without affecting this Lease. If, during the last sixty (60) days of the term hereof, Tenant shall have removed substantially all of its property from the Demised Premises, Landlord may immediately enter and alter, renovate and redecorate the Demised Premises without elimination or abatement of rent or incurring liability to Tenant for any compensation. Tenant shall not, without the prior consent of Landlord, change the locks or install additional locks on any door or doors to the Demised Premises. 11.0 MECHANIC'S LIENS: Tenant shall pay or cause to be paid all costs for work done by Tenant or caused to be done by Tenant on the Demised Premises of a character which will or may result in liens on Landlord's interest therein, and Tenant will -8- keep the Demised Premises free and clear of all mechanic's liens and other liens on account of work done for Tenant or persons claiming under it. Tenant hereby agrees to indemnify, defend and save the Landlord harmless of and from all liability, loss, damage, costs or expenses, including reasonable attorneys' fees, incurred on account of any claims of any nature whatsoever for work done by or caused to be done by Tenant, or materials or supplies furnished to Tenant, including lien claims of laborers, materialmen or others. Should any such liens be filed or recorded against the Demised Premises with respect to work done or for materials supplied to or on behalf of Tenant or any action affecting the title thereto be commenced, Tenant shall cause such liens to be removed of record within thirty (30) days after notice from Landlord. If Tenant desires to contest any such claim of lien, it shall furnish Landlord with adequate security of at least 150 percent of the amount of the claim, plus estimated costs and interest, and if a final judgment establishing the validity or existence of any lien for any amount is entered, Tenant shall pay and satisfy the same at once. If Tenant shall be in default in paying any charge for which such a mechanic's lien or suit to foreclose such a lien has been recorded or filed and shall not have given Landlord security as aforesaid, Landlord may (but without being required to do so) pay such lien or claim and any costs, and the amount so paid, together with reasonable attorneys' fees incurred in connection therewith, shall be immediately due from Tenant to Landlord. 12.0 DAMAGE TO PROPERTY, INJURY TO PERSONS: 12.1 Tenant, as a material part of the consideration to be rendered to landlord under this Lease, hereby waives all claims of liability Tenant or Tenant's successors or assigns may have against Landlord for the following described injury or damage, and Tenant hereby indemnifies and agrees to hold Landlord harmless from and to defend Landlord against any and all claims of liability for any injury or damage to any person or property whatsoever: (1) occurring in, on or about the Demised Premises or any part thereof; and (2) occurring in, or about the Building, when such injury or damage is caused in part or in whole by the act, neglect, fault or omission of any duty with respect to the same by Tenant, its agents, contractors, employees or invitees. Tenant further indemnifies and agrees to hold Landlord harmless from and against any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any of its agents, contractors, employees or invitees, from and against all costs, attorneys' -9- fees, expenses and liabilities incurred in or about any such claim or any action or proceeding brought thereon. 12.2 Landlord shall not be liable to Tenant for any damage to personal property resulting from the carelessness, negligence or improper conduct on the part of a co -tenant or anyone other than Landlord, or for any damage to person or property resulting from any condition of the premises or other cause, including, but not limited to, damage by water, not resulting from negligence of Landlord. Tenant shall give Landlord prompt notice of any defects in the Demised Premises to be remedied by Landlord. To the extent not covered by normal fire and extended coverage insurance, Tenant agrees to pay for all damage to the Building Complex, as well as all damage to tenants or occupants thereof, caused by Tenant's misuse or neglect of the Demised Premises or any portion of the Building Complex. 12.3 Neither Landlord nor its agents shall be liable for any damage to property entrusted to Landlord, its agents or employees, nor for the loss or damage to any property by theft or otherwise, by any means whatsoever, nor for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, sprinkler system leakage, water or rain which may leak from any part of the Building or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place or resulting from dampness or any other cause whatsoever; provided, however, nothing contained herein shall be construed to relieve Landlord from liability for any personal injury resulting from its negligence or that of its agents, servants or employees. Landlord or its agents shall not be liable for any latent defect in the Demised Premises or in the Building. Tenant shall give prompt notice to Landlord in case of fire or accidents in the Demised Premises or in the Building or of defects therein or in the fixtures or equipment. 12.4 In case any action or proceeding is brought against Landlord or Tenant by reason of any obligation on their respective parts to be performed under the terms of this Lease, or arising from any of their acts or negligence of them, respectively, or of their agents or employees, such party, upon notice from the other party shall defend the same at its expense by counsel reasonably satisfactory to the party giving such notice. -10- 13.0 INSURANCE: 13.1 There is no section 13.1 of this Lease. 13.2 Tenant shall procure and maintain at its own cost during the term of this Lease and any extension hereof fire and extended coverage insurance on property of Tenant in the amount of the full insurable value thereof. 13.3 The parties shall obtain from their respective casualty insurance carriers waivers of subrogation against the other party, agents, employees and, as to Tenant, invitees. Neither party shall be liable to the other for any loss or damage caused by fire or any of the risks enumerated in a standard fire insurance policy with an extended coverage endorsement if such insurance was obtainable at the time of such loss or damage. 13.4 Each party hereby releases the other party with respect to any claim (including a claim for negligence) which it might otherwise have against the other party for loss, damage or destruction with respect to its property (including the Building, Building Complex, the Demised Premises and rental value or business interruption) occurring during the term of this Lease to the extent to which it is insured under a policy or policies containing a waiver of subrogation or permission to release liability or naming the other party as an additional insured as provided above. 13.5 Any building employee to whom property shall be entrusted by or on behalf of Tenant shall be deemed to be acting as Tenant's agent with respect to such property and neither Landlord nor its agents shall be liable for any damage to the property of Tenant or others entrusted to employees of the Building, nor for the loss of or damage to any property of Tenant by theft or otherwise. 13.6 There is no section 13.6 of this Lease. 14.0 DAMAGE OR DESTRUCTION TO PREMISES: If the Demised Premises are damaged by fire or other casualty, then Landlord may, at Landlord's option, exercised in writing within thirty (30) days of written notice of damage from Tenant, elect to terminate this Lease or to repair the damages. If Landlord elects to repair the damages, Landlord shall at its own expense, without unnecessary delay, repair the damages. If Landlord elects to repair, Tenant shall pay the cost of repairing any Tenant improvements in the Demised Premises other than the -11- Building itself and building standard improvements. Tenant shall be entitled to an abatement of rent in fair proportion to the amount and nature of the damage sustained, until the Demised Premises are made fit for occupancy and use. Provided, however, that Tenant shall not be entitled to an abatement of rent if such damage was caused by the negligence or willful misconduct of Tenant or Tenant's employees or invitees. 15.0 CONDEMNATION: If the whole of the Demised Premises or so much thereof as to render the balance unusable by Tenant for the proper conduct of its business shall be taken under power of eminent domain or transferred under threat thereof, then this Lease, at the option of either Landlord or Tenant exercised by either party giving notice to the other of such termination within thirty (30) days after such conveyance or taking possession whichever is earlier, shall forthwith cease and terminate and the rent shall be duly apportioned as of the date of such taking or conveyance. No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns to Landlord any award which may be made in such taking or condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however, that nothing contained herein shall be deemed to give Landlord any interest in or to require Tenant to assign to Landlord any award made to Tenant for the taking of personal property and fixtures belonging to Tenant and/or for expenses of moving to a new location or for Tenant's interest in the leasehold estate. In the event of a partial taking which does not result in a termination of this Lease, rent shall be reduced in proportion to the reduction in the size of the premises so taken and this Lease shall be modified accordingly. Promptly after obtaining knowledge thereof, Landlord or Tenant, as the case may be, shall notify the other of any pending or threatened condemnation or taking affecting the Demised Premises or the Building. 16.0 ASSIGNMENT AND SUBLETTING: 16.1 Neither Tenant nor its successors or assigns shall transfer, assign, mortgage or encumber this Lease, by operation of law or otherwise, or sublet or permit the Demised Premises, or any part thereof, to be used by others, without the prior written consent of Landlord in each instance. Any attempted transfer, assignment, subletting, mortgaging or encumbering of this Lease in violation of the foregoing shall be void and confer no rights upon any third person. No permitted assignment or subletting shall relieve Tenant of any of its obligations under this Lease. -12- 16.1.1 If, without complying with the provisions of section 16.1 above, this Lease is transferred or assigned by Tenant, or if the Demised Premises, or any part thereof, are sublet or occupied by anybody other than Tenant, whether as a result of any act or omission by Tenant, or by operation of law or otherwise, Landlord, whether before or after the occurrence of an event of default, may, in addition to, and not in diminution of or substitution for, any other rights and remedies under this Lease or pursuant to law to which Landlord may be entitled as a result thereof, collect rent from the transferee, assignee, subtenant or occupant and apply the net amount collected to the basic rent and additional charges herein reserved, but no such transfer, assignment, subletting, occupancy or collection shall be deemed a waiver of the provisions of this section or the acceptance of the transferee, assignee, subtenant, or occupant as Tenant, or a release of Tenant from the further performance by Tenant of its obligations under this Lease. 16.2 Neither the consent by Landlord to any transfer, assignment or subletting nor the references in any provision of this Lease or in any rules and regulations to concessionaires and licensees shall in anywise be construed to relieve Tenant from obtaining, in each instance, the express consent in writing of Landlord to any further transfer, assignment or subletting or to the granting of any concession or license for the use of any part of the Demised Premises. 17.0 There is no Section 17 of this Lease. 18.0 DEFAULTS, REMEDIES, DAMAGES, ADMINISTRATIVE HANDLING CHARGES: 18.1 The following events (herein referred to as an "event of default") shall constitute defaults of Tenant hereunder. (1) Tenant shall default in the due and punctual payment of rent, or any other amounts payable hereunder, and such default shall continue for seven (7) days after receipt of written notice from Landlord; (2) This Lease or the estate of Tenant hereunder shall be transferred to or shall pass to or devolve upon any other person or party in violation of this Lease except as permitted herein; -13- (3) Tenant shall fail to take possession of the Demised Premises within sixty (60) days of the Commencement Date; (4) Tenant shall abandon the Demised Premises for ten (10) consecutive days; (5) Tenant shall have committed, or suffered or permitted Tenant's clients, patrons, or employees to commit, illegal acts upon, or make any illegal use of, the premises or common areas or adjacent Landlord -owned and/or operated parking facilities. Such a default shall not be subject to cure. Acceptance of rent by Landlord with or without knowledge of such a breach shall not operate as a waiver of the default and estop Landlord from terminating this Lease and evicting the Tenant on account of said default. (6) Tenant shall fail to perform any of the other agreements, terms, covenants or conditions hereof on Tenant's part to be performed, and such non-performance shall continue for a period of thirty (30) days after notice thereof by Landlord to Tenant, or if such performance cannot be reasonably had within such thirty (30) day period, Tenant shall not in good faith have commenced such performance with such thirty (30) day period and shall not diligently proceed therewith to completion. 18.2 Upon the occurrence of an event of default, Landlord shall have the right, at its election, then or at any time thereafter and while any such event of default shall continue, either: (1) To give Tenant written notice of Landlord's intention to terminate this Lease on the date of such given notice or on any later date specified therein, whereupon on the date specified in such notice, Tenant's right to possession of the Demised Premises shall cease and this Lease shall thereupon be terminated, except as to Tenant's liability, as if the expiration of the term fixed in such notice were the end of the term herein originally demised; or (2) To re-enter and take possession of the Demised Premises or any part thereof, and repossess the same as Landlord's former estate and expel Tenant and those claiming through or under Tenant, and remove the effects of both or either, using such force for such purposes as may be reasonably necessary, without being liable for prosecution -14- thereof, without being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of rent or preceding breach of covenants or conditions. Should Landlord elect to re-enter as provided in this section 18.2(2) or should Landlord take possession pursuant to legal proceedings or pursuant to any notice provided for by law, Landlord may, from time to time, without terminating this Lease, relet the Demised Premises or any part thereof in Landlord's name, but for the account of Tenant, for such term or terms (which may be greater or less than the period which would otherwise have constituted the balance of the term of this Lease) and on such conditions and upon such other terms (which may include concessions of free rent and alteration and repair of the Demised Premises) as Landlord, in its sole discretion, may determine, and Landlord may collect and receive the rents therefor. Landlord shall in no way be responsible or liable for any failure to relet the Demised Premises, or any part thereof, or for any failure to collect any rent due upon such reletting. No such re-entry or taking possession of the Demised Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease unless a written notice of such intention be given to Tenant. No notice from Landlord hereunder or under forcible entry and/or unlawful detainer statutes or similar laws shall constitute an election by Landlord to terminate this Lease unless such notice specifically so states. Landlord reserves the right following any such re-entry and/or reletting to exercise its right to terminate this Lease by giving Tenant such written notice, in which event this Lease will terminate as specified in said notice. 18.3 In the event that Landlord does not elect to terminate this Lease as permitted in section 18.2(1) hereof, but on the contrary, elects to take possession as provided in section 18.2(2), Tenant shall pay to Landlord: (i) the rent and other sums as herein provided, which would be payable hereunder if such repossession had not occurred, less (ii) the net proceeds, if any, of any reletting of the Demised Premises after deducting all landlord's expenses in connection with such reletting, including, but without limitation, all repossession costs, brokerage commissions, legal expenses, attorneys' fees, expenses of employees, alteration and repair costs and expenses of preparation for such reletting. If, in connection with any reletting, the new lease term extends beyond the existing term, or the premises covered thereby include other premises not part of the Demised Premises, a fair apportionment of the rent received from such reletting and the expenses incurred in -15- connection therewith as provided aforesaid will be made in determining the net proceeds from such reletting. 18.4 In the event this Lease is terminated, landlord shall be entitled to recover forthwith against Tenant as damages for loss of the bargain and not as a penalty, an aggregate sum which, at the time of such termination of this Lease, represents the excess, if any, of the aggregate of the rent and all other sums payable by Tenant hereunder that would have accrued for the balance of the term over the aggregate rental value of the Demised Premises (such rental value to be computed on the basis of a tenant paying not only a rent to Landlord for the use and occupation of the Demised Premises, but also such other charges as are required to be paid by Tenant under the terms of this Lease) for the balance of such term, both discounted to present worth at the rate of ten percent (10%) per annum. 18.5 Suit or suits for the recovery of the amounts and damages set forth above may be brought by Landlord, from time to time, at Landlord's election and nothing herein shall be deemed to require landlord to await the date whereon this Lease or the term hereof would have expired by limitation had there been no such default by Tenant or no such termination, as the case may be. Each right and remedy provided for in this Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise, including, but not limited to, suits for injunctive relief and specific performance. The exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by Landlord of any and all other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise. All costs incurred by Landlord in connection with collecting any amounts and damages owing by Tenant pursuant to the provisions of this Lease or to enforce any provision of this Lease, including reasonable attorneys' fees from the date any such matter is turned over to an attorney, shall also be recoverable by Landlord from Tenant. 18.6 No failure by Landlord to insist upon the strict performance of any agreement, term, covenant or condition hereof or to exercise any right or remedy consequent upon a breach thereof, and no acceptance of full or partial rent during the continuance of any such breach, shall constitute a waiver of any such breach of such agreement, term, covenant or condition. No agreement, term, covenant or condition hereof to be performed or -16- complied with by Tenant, and no breach thereof, shall be waived, altered or modified except by written instrument executed by Landlord. No waiver of any breach shall affect or alter this Lease, but each and every agreement, term, covenant and condition hereof shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. notwithstanding any unilateral termination of this Lease, this Lease shall continue in force and effect as to any provisions hereof which require observance or performance of Landlord or Tenant subsequent to termination. 18.7 There is no Section 18.7 of this Lease. 18.8 Landlord's Lien: In addition to its statutory rights to a Landlord's lien, the Tenant does hereby grant to the Landlord a lien for the payment of any amounts of rent due hereunder upon all of the Tenant's goods, wares, fixtures, furniture, improvements, and other tangible personal property of the Tenant. In addition to any other remedies provided herein, upon any event of default, Landlord may enter the premises and take possession of any and all goods, wares, equipment, fixtures, furniture, improvements, and other tangible personal property of Tenant situated upon the premises without liability for trespass or conversion, except client files. The Landlord may sell the same at public or private sale, with or without having such property at the sale, after giving Tenant reasonable notice as to the time and the place of the sale. At such sale, Landlord or its assignees may purchase the property unless such purchase is otherwise prohibited by law. In all other respects, the property may be sold pursuant to law and any proceeds of such disposition, less all expenses connected with the taking of possession and sale of the property, including a reasonable attorney's fee, shall be applied as a credit against the indebtedness secured by the security interest granted in this section. 18.9 There is no Section 18.9 of this Lease. 19.0 POSSESSION: In the event of the inability of Landlord to deliver possession of the Demised Premises or any portion thereof at the time of the commencement of the term of this Lease, neither Landlord nor Landlord's agent shall be liable for any damage caused thereby, nor shall this Lease thereby become void or voidable, nor shall the term herein specified be extended in any way, but in such event, Tenant shall not be liable for any rent until such time as Landlord can deliver possession. If the -17- Tenant shall take possession of the Demised Premises prior to the commencement date of this Lease, Landlord and Tenant agree to be bound by all of the provisions and obligations hereunder during such prior period, including payment of rent as set forth herein. 20.0 REMOVAL OF TENANT'S PROPERTY: All movable furniture and personal effects of Tenant not removed from the Demised Premises within ten (10) days after the vacation or abandonment thereof or upon the termination of this Lease for any cause whatsoever shall conclusively be deemed to have been abandoned and may be appropriated, sold, stored, destroyed or otherwise disposed of by Landlord without notice to Tenant and without obligation to account therefor, and Tenant shall pay Landlord for all expenses incurred in connection with the disposition of such property. 21.0 HOLDING OVER: Should Tenant, with Landlord's written consent, hold over after the termination of this Lease, Tenant shall become a tenant from month to month only upon each and all of the terms herein provided as may be applicable to such month to month tenancy and any such holding over shall not constitute an extension of this Lease. During such holding over, Tenant shall pay rent equal to one hundred twenty percent (120%) of the last monthly rental rate and the other monetary charges as provided herein. Such tenancy shall continue until terminated by Landlord or Tenant by a written notice of its intention to terminate such tenancy given at least twenty (20) days prior to the date of termination of such monthly tenancy. 22.0 SURRENDER AND NOTICE: Upon the expiration or earlier termination of this Lease, Tenant shall promptly quit and surrender to Landlord the premises broom clean, in good order and condition, ordinary wear and tear excepted, and Tenant shall remove all of its movable furniture and other effects and such alterations, additions and improvements as Landlord shall require Tenant to remove pursuant to section 9.2. In the event Tenant fails to vacate the Demised Premises on a timely basis as required, Tenant shall be responsible to Landlord for all costs incurred by Landlord as a result of such failure, including, but not limited to, any amounts required to be paid to third parties who were to have occupied the Demised Premises. 23.0 ACCEPTANCE OF PREMISES BY TENANT: Taking possession of the Demised Premises by Tenant shall be conclusive evidence as -18- against Tenant that the Demised Premises were in the condition agreed upon between Landlord and Tenant, and acknowledgment of satisfactory completion of any fix -up work which Landlord has agreed in writing to perform, except as otherwise set forth herein. 24.0 SUBORDINATION: Tenant agrees that upon request of Landlord it will subordinate its rights hereunder to the lien of any mortgage ground lease or deed of trust now or hereafter enforced against the land or building of which the Demised Premises are a part and to all events made or hereafter to be made upon the security thereof. Tenant agrees to execute such documents that may be necessary to effectuate the provisions of this article. 25.0 PAYMENTS AFTER TERMINATION: No payments of money by Tenant to Landlord after the termination of this Lease, in any manner, or after giving of any notice (other than a demand for payment of money) by Landlord to Tenant, shall reinstate, continue or extend the term of this Lease or affect any notice given to Tenant prior to the payment of such money, it being agreed that after the service of notice of the commencement of a suit or other final judgment granting Landlord possession of the Demised Premises, Landlord may receive and collect any sums of rent due, or any other sums of money due under the terms of this Lease or otherwise exercise its rights and remedies hereunder. The payment of such sums of money, whether as rent or otherwise, shall not waive said notice or in any manner affect any pending suit or judgment theretofore obtained. 26.0 AUTHORITIES FOR ACTION AND NOTICE: 26.1 Except as herein otherwise provided, Landlord may act in any matter provided for herein by its building manager or any other person who shall from time to time be designated in writing. 26.2 All notices or demands required or permitted to be given to Landlord hereunder shall be in writing, and shall be deemed duly served when received, if hand delivered, or five (5) calendar days after deposited in the United States mail, with proper postage prepaid, certified or registered, return receipt requested, addressed to Landlord at its principal office in the Building, or at the most recent address of which Landlord has notified Tenant in writing. All notices or demands required to be given to Tenant hereunder shall be in writing, and shall be deemed duly served when received if hand delivered or within five -19- (5) calendar days after deposited in the United States mail, with proper postage prepaid, certified or registered, return receipt requested, addressed to Tenant at its principal office in the Building. Either party shall have the right to designate in writing served as above provided a different address to which notice is to be mailed. 27.0 SIGNAGE: No sign, advertisement or notice shall be inscribed, painted or affixed on any part of the inside or outside of the Building unless of such color, size and style and in such place upon or in the Building, as shall be first designated by Landlord, but there shall be no obligation or duty on Landlord to allow any sign, advertisement or notice to be inscribed, painted or affixed on any part of the inside or outside of the Building. Landlord shall have the right to remove all non -permitted signs without notice to Tenant, and at the expense of Tenant. 28.0 NAME OF BUILDING PROJECT: Landlord presently refers to the Building as THE NACHES BUILDING. Landlord hereby reserves the right, at any time and from time to time, without notice to Tenant, to change the name of the Building at Landlord's sole discretion. 29.0 ADMITTANCE BY PASS-REY: Landlord shall not be liable for the consequence of admitting by pass -key or refusing to admit to the Demised Premises Tenant or any of Tenant's agents, employees or other persons claiming the right of admittance. 30.0 FINAL SIX MONTHS -- LANDLORD MAY SHOW PREMISES: Landlord and Landlord's agents shall have the right at reasonable hours to exhibit the Demised Premises to prospective purchasers and during the final six (6) months of the term hereof to prospective Tenants. 31.0 WINDOWS: Tenant shall not allow anything to be placed on the outside window ledges of the Demised Premises. No awnings shall be attached to the outside of any windows of the Demised Premises. Only such window draperies furnished by Landlord, which shall be uniform to building standards, shall be exposed to exterior views. 32.0 LIGHT AND AIR: This Lease does not grant any right of access to light, air, or view over the property, and Landlord shall not be liable for any diminution of such light, air or view by any adjacent structure. 33.0 ESTOPPEL CERTIFICATE: Tenant further agrees at any time and from time to time, on or before ten (10) days after written request by Landlord, to execute, acknowledge and deliver to Landlord an estoppel certificate certifying (to the extent it believes the same to be true) that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified, and stating the modifications), that there have been no defaults thereunder by Landlord or Tenant (or if there have been defaults, setting forth the nature thereof), and the date to which the rent and other charges have been paid, if any, it being intended that any such statement delivered pursuant to this section may be relied upon by any prospective purchaser of all or any portion of Landlord's interest herein, or a holder of any mortgage encumbering any portion of the Building Complex. Tenant's failure to deliver such statement within such time shall be a default under this Lease and shall be conclusive upon Tenant that: (a) This Lease is in full force and effect without modification except as may be represented by Landlord; (b) There are no uncured defaults in Landlord's performance; (c) Not more than one (1) month's rent has been paid in advance; and (d) The amount of any security deposit paid to, and held by, Landlord. 34.0 MISCELLANEOUS: 34.1 Landlord may make and enforce regulations appropriate for maintenance and management of the Building including but not limited to regulations for order, cleanliness and security, but said regulations shall not be inconsistent with the terms, covenants and conditions of this Lease. Landlord shall not be responsible to Tenant for the non-performance by any other Tenant or occupant of said rules or regulations. 34.2 The term "Landlord", as used in this Lease, so far as covenants or obligations on the part of Landlord are concerned, shall be limited to mean and include only the owner or owners of the Building at the time in question, and in the event of any transfer or transfers of the title thereto, Landlord herein named (and in the case of any subsequent transfers or -21- conveyances, the then grantor) shall be automatically released from and after the date of such transfer or conveyance of all liability in respect to the performance of any covenants or obligations on the part of Landlord contained in this Lease thereafter to be performed and relating to events occurring thereafter; provided that any funds in the hands of Landlord or the then grantor at the time of such transfer in which Tenant has an interest shall be turned over to the grantee, and any amount then due and payable to Tenant by Landlord or the then grantor under any provisions of this Lease shall be paid to Tenant. 34.3 This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent, and Tenant shall not be entitled to any set off of the rent or other amounts owing hereunder against Landlord, if Landlord fails to perform its obligations set forth herein. The foregoing shall in no way impair the right of Tenant to commence a separate action against Landlord for any violation by Landlord of the provisions hereof so long as notice is first given to Landlord and any holder of a mortgage or deed of trust covering the Building Complex or any portion thereof of whose address Tenant has been notified in writing and an opportunity granted to Landlord and such holder to correct such violation. 34.4 If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws effective during the term of this Lease, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby, and it is also the intention of the parties to this Lease that in lieu of each clause or provisions of this Lease that is illegal, invalid or unenforceable, there shall be added as a part of the Lease a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable, provided such addition does not increase or decrease the obligations of or derogate from the rights or powers of either Landlord or Tenant. 34.5 The captions of each section are added as a matter of convenience only and shall be considered of no effect in the construction of any provision or provisions of this Lease. 34.6 Except as herein specifically set forth, all terms, conditions and covenants to be observed and performed by the parties hereto shall be applicable to and binding upon their respective heirs, administrators, executors and assigns. 34.7 If there is more than one entity or person which or who are the Tenants under this Lease, the obligations imposed upon Tenant under this Lease shall be joint and several. 34.8 No act or thing done by Landlord or Landlord's agent during the term hereof, including, but not limited to, any agreement to accept surrender of the Demised Premises or to amend or modify this Lease, shall be deemed to be binding upon Landlord unless such act or things shall be by an officer of Landlord or a party designated in writing by Landlord as so authorized to act. The delivery of keys to Landlord, or Landlord's agent, employees or officers shall not operate as a termination of this Lease or a surrender of the premises. No payment by Tenant, or receipt by Landlord, of a lesser amount than the monthly rent herein stipulated, shall be deemed to be other than on account of the earliest stipulated rent, nor shall any endorsement or statement on any check or any letter accompanying any such, or payment as rent, be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue any other remedy available to Landlord. 34.9 Landlord shall have the right to construct other buildings or improvements in any plaza, or other area designated by Landlord for use by tenants or to change the location, character, or make alterations of, or additions to, any of said plazas, or other areas. 34.10 Tenant acknowledges and agrees that it has not relied upon any statements, representations, agreements or warranties except such as are expressed in this Lease. 34.11 Time is of the essence hereof. 34.12 Tenant represents to Landlord that the party executing this Lease is authorized to do so by requisite action of the Board of Directors, or partners, as the case may be, and agree upon request to deliver to each other a resolution or similar document to that effect. 35.0 GOVERNING LAW; ATTORNEYS'S FEES; VENUE: This Lease Agreement shall be construed in accordance with the laws of the State of Washington. In the event of any action arising hereunder, the prevailing party shall be granted its attorney's fees and court costs. Venue for any such action shall be in the County of Yakima. 36.0 ENTIRE AGREEMENT: This Lease, together with the exhibits attached hereto, contains the entire agreement of the parties and may not be amended or modified in any manner except by an instrument in writing signed by both parties. IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease the day and year first above written. YAKIMA MALL SHOPPING CENTER THE CITY OF YAKIMA CORPORATION By c' ct, <� By \,\ci C� Joseph R. Morrier Richard is, Jr. Its President Its City manager LANDLORD ATTEST: K,c(A.:,_ Karen S. Roberts City Clerk CITY CONTRACT NO. ef STATE OF WASHINGTON ) ss. LANDLORD'S COUNTY OF YAKIMA ) ACKNOWLEDGMENT TENANT I certify that I know or have satisfactory evidence that JOSEPH R. MORRIER signed this instrument, on oath stated that he was authorized to execute the instrument, and acknowledged it as the President of YAKIMA MALL SHOPPING CENTER CORPORATION to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: 7 r'�9. (Seal) ZAiz.ci.p.� /71 /!.i 471 -- Notary Public in and for the State of of Washington, residing at the/State My appointment expires: /j--/--9:5" STATE OF WASHINGTON COUNTY OF YAKIMA ss. TENANT'S ACKNOWLEDGMENT I certify that I know or have satisfactory evidence that RICHARD A. ZAIS, JR. and KAREN S. ROBERTS signed this instrument, on oath stated that they were authorized to execute the instrument, and acknowledged it as the City Manager and City Clerk, respectively, of THE CITY OF YAKIMA to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: 7-( sr € /2/ /”9 (Seal) Notary Public in and for the State of Washington, residing at )kw1c My appointment expires: //24;/9',5- TCtfPRW4 ID a -.1 •i -t o"V a 31- • • s • • iaraaaa� ..61:1" 1 met C.5 J 1 • ktau. -ra 'AMINE 4dl1d, :.. '1`146 svr map, � Iq trams , • ;ate .... GENERAL, MOTES; L TFm ISN.L& T4 exr£ FULL 44Elfa44T, VtRef ON SM. ?. lMTC141 ve-1 •udek. WHETZE F3WTIAS 11.T6 Rad COS157• CiTON. 3. PAW T ;t01.1 .S AND t151ttdC_ ARE -413 TO MA7a -t. ALL SIS rcEasigNa A B'A71TM PNIS4tTO fftgrO,6Tta A5 1 TlJ ACCEri - 71.1V PANT colo UL9Yimtv.. A t v4111•L 4 133'fE t3) G T8 w3at 730;,,, rifrfrri STRUCTURE ABOVE FIRE 0.00IONG 3SA' UTL SWUOES Of S" VYPE "h"a GYPSUM 6OARO WALL TYPES NEW 'VALtS cEIui c srs7E,+s CONT. CttANNEL OFFICE LEASE AGREEMENT ADDENDUM LESSOR: CENTURY PLAZA, a Partnership LESSEE: THE CITY OF YAKIMA, a Washington State Municipal Corporation The above named parties agree to amend the lease between the parties dated August 1, 1989 to July 31, 1993 by adding the following Section 30 to the lease. 30.0 FILTER SYSTEM/TERMINATION: "Not withstanding any other provision of this lease, Lessor and Lessee agree that Lessor, at its expense, shall install a charcoal filter system to the heating and air conditioning system for the purpose of eliminating tobacco smoke from Lessee's leased space. Lessor shall have twenty (20) calendar days from the date of signing this addendum to the lease to install the charcoal filter system. Lessee agrees to cooperate with Lessor in monitoring the effectiveness of the charcoal filter system. If after sixty (60) calendar days from the date of installation of the charcoal filter system, the tobacco smoke problem has not been abated from Lessee's space to the Lessee's satisfaction, Lessee may give Lessor a sixty (60) calendar day notice of intent to vacate the leased premises. Lessor, at its expense, shall maintain the filter system so as to maintain a tobacco smoke-free environment within Lessee's premises to Lessee's satisfaction for the term of the lease. If during the remainder of the term of the lease, the filter system fails or tobacco smoke from other tenants' space infiltrates the leased space, then Lessee may give Lessor sixty (60) calendar days notice of intent to vacate the leased premises. This contingent option to terminate the lease is in lieu of all other claims by the Lessee for constructive eviction or breach of the lease based on the claim that tobacco smoke infiltrates the premises. Upon vacation of the premises by Lessee pursuant to the terms of this section, and the payment of all rents accrued up to the date of such vacation, this Lease will be deemed canceled by the mutual agreement of the parties as of the date of such vacation." IN WITNESS Addendum on the WHEREOF, Lessor and Lessee have executed this I a day of February, 1992. LESSEE: LESSOR: CENTURY PLAZA By: Robert R. Dolsen Authorized Partner THE CITY OF YAKIMA By �d Richard A. Zags, Jr. City Manager ATTEST: i �''uz Y— ',j/e-- -e'i _ City Clerk Tr? -oSnes RESOLUTION NO.D 6 0 6 7 A RESOLUTION authorizing the execution of an Office Lease Agreement Addendum with the Century Plaza Part- nership. WHEREAS, the City of Yakima rents office space at 201 East Lincoln, Suite 5, within the City of Yakima, for its Legal Department from the Century Plaza Partnership pursuant to a lease executed on or about August 1, 1989; and WHEREAS, pursuant to Resolution No. D-5864, said lease was renewed for an additional two-year term to extend from July 31, 1991 to July 31, 1993; and WHEREAS, the parties to the aforementioned lease wish to amend that lease to provide for the installation of a charcoal air filtration system within the premises to abate tobacco smoke within the air-conditioning system of the premises; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to enter into an addendum to the aforementioned lease, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and the City Clerk are hereby authorized and directed to execute an Office Lease Agreement Addendum with the Century Plaza Partnership, a true copy of which is attached hereto and incorporated herein by reference. ADOPTED BY THE CITY COUNCIL this / day of , '/ , 1992. Mayor ATTEST: City Clerk (res/dolsen.jv) CITY GF YAK MA LEGAL DEPARTMENT 201 E. LINCOLN, SUITE 5, YAKIMA, WA 98901 Phone: (509) 575-6030 SCAN 278-6030 EXERCISE OF LEASE OPTION FOR LEGAL DEPARTMENT OFFICE SPACE January 15, 1991 Robert R. Dolsen Dolsen Leasing Company 301 North 3rd Street Yakima, WA 98901 Re: Lease Option Extension Dear Mr. Dolsen: Personally Delivered By Resolution No. D-5864, the City Council has authorized and directed me to exercise the lease option extension for Legal De- partment office space in the Century Plaza building for an addi- tional two-year period. I take this action pursuant to Section 1.1 of the lease between the City and Century Plaza Partnership exe- cuted on or about August 1, 1989. Under the terms and conditions of that section, a copy of which is provided, the City may extend its lease for an additional two-year term beyond July 31, 1991 at the same terms and conditions of the existing lease for that space which it rents from your partnership at 201 East Lincoln, Suite 5, within the City of Yakima. Can you please provide me with formal written acknowledgement of the City's exercise of this lease option extension. Thank you. Very truly yours, R. A. ZAIS, JR. City Manager /las enclosure c: Legal Department RESOLUTION NO. A RESOLUTION authorizing the execution of a lease option for Legal Department office space. WHEREAS, the City of Yakima rents office space at 201 East Lincoln, Suite 5 within the City of Yakima for its Legal Department from the Century Plaza Partnership pursuant to a lease executed on or about August 1, 1989; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to extend the aforementioned lease for an additional two-year period on the same terms and c ndations as the existing lease, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the attached and incorporated letter entitled "Exercise of Lease Option for Legal Department Office Space" with the Century Plaza Partnership. -� ADOPTED BY THE CITY COUNCIL this %✓ day of January, 1991. Mayor ATTEST: City Clerk (res century . jv ) EFFECTIVE DATE: OFFICE LEASE AGREEMENT 1st day of August, 1989 LESSOR: CENTURY PLAZA, a Partnership LESSEE: THE CITY OF YAKIMA, a Washington State Municipal Corporation LEASED OFFICE SPACE: That portion of the west end of the upper level of the CENTURY PLAZA office building, the same of which is described on Exhibit A attached hereto. The term "leased premises," unless the context indicates to the contrary, means the "leased office space" and Lessee's right with respect to the "common areas" as hereinafter defined. LOCATION OF BUILDING AND RELATED COMMON AREAS: The said office building and related common areas are located on the following described real property situate in Yakima County, State of Washington: Lots 14, 15, 16 of Block 47, Town of North Yakima, now Yakima, accord- ing to plat thereof recorded in Volume "A" of Plats, Page 10, and re-recorded in Volume "E" of Plats, Page 1, records of Yakima County, Washington. COMMON AREAS: In addition to the leased office space, this Lease shall give Lessee the nonexclusive (in common with other tenants of the office building) right to the use of the common areas of the building. "Common areas" means exterior walkways, stairways, restrooms, mechanical areas, janitorial storage area, sidewalks and the parking facilities designated for the use of the build- ing and its tenants. Lessee shall be entitled to the use of not more than thirty percent (30%) of the unassigned parking spaces within the parking facil- ities provided for the lessees of the building. LESSOR DOES HEREBY LEASE TO LESSEE THAT PORTION OF THE WEST END OF THE UPPER LEVEL OF THE CENTURY PLAZA OFFICE BUILDING AS HEREINABOVE SPECIFIED, TOGETHER WITH THE NONEXCLUSIVE RIGHT TO THE USE OF THE COMMON AREAS, SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: 1.0 TERM: The term of this Lease shall be for a period of two (2) years, commencing on the 1st day of August, 1989 and terminating at 12:00 midnight on the 3lstday of •July, 1991. Notwithstanding the foregoing, Lessee reserves the OFFICE LEASE AGREEMENT 1 MGS/LEAS20 right during the initial two-year term of this Lease, upon giving sixty (60) days' written notice, to terminate the Lease prior to the initial expiration date. In order to exercise this right, Lessee must pay to Lessor an amount equal to the product of FOUR HUNDRED FIFTY and NO/100 DOLLARS ($450.00) times the number of months remaining in the initial two-year term (e.g., in the event the Lease is terminated after the 10th month, then the number of months remain- ing would be 14). This payment requirement relating to early termination is intended to compensate Lessor for the costs incurred in renovating the leased premises for Lessee's purposes, said renovation being generally described on Exhibit B attached hereto. 1.1 Option to Extend Lease: Provided that Lessee remains current in the payment and performance of its obligations under this Lease and provided that Lessee has not exercised the right of early termination as provided for above, Lessor hereby grants to Lessee the option to extend this Lease for an additional two (2) years ("option term") following the end of the initial two-year term hereof. The following terms and conditions shall be applicable to the option and to the option term: (a) Exercise of Option: In order to exercise the option to extend this Lease, Lessee must give to Lessor written notice of intent to extend the Lease, said notice to be personally delivered to Lessor not later than six (6) months prior to the end of the initial_ two-year term of this Lease. (b) Terms and Conditions Applicable to Option Term: If Lessee exercises its option to extend this Lease for said additional two-year term (i.e., option term), then all of the terms and conditions of this Lease shall be applicable to the option term, including the amount of base rental as provided for in paragraph 2.0 hereof. 2.0 BASE RENTAL: The base rental for the leased office space and the nonexclusive use of common areas shall be ONE THOUSAND EIGHT HUNDRED THIRTEEN and NO/100 DOLLARS ($1,813.00) per month, payable in advance on or before the first day of each calendar month. 3.0 BUSINESS PURPOSES: The leased office space is to be used for the City Attorney's office and/or other City office purposes and for no other purpose OFFICE LEASE AGREEMENT 2 MGS/LEAS20 without the written consent of Lessor, which consent shall not unreasonably be withheld. 4.0 ASSIGNMENT AND SUBLETTING: Lessee shall not assign this Lease or sublet the premises, or any part thereof, without first obtaining Lessor's written consent, which consent shall not be unreasonably withheld. No such assignment or subletting shall relieve Lessee of Lessee's liability under this Lease. Consent to any such assignment or subletting shall not operate as a waiver of the necessity for a consent to any subsequent assignment or sub- letting, and the terms of such consent shall be binding upon any person holding by, under or through Lessee. 5.0 CARE OF PREMISES: In consideration of Lessee paying the rental as provided for in paragraph 2.0 hereof, all repairs to the premises, including, but not limited to, repairs to heating, air-conditioning, electrical and plumb- ing systems, necessary to keep the same in proper order and tenantable condition shall be made by Lessor, at Lessor's expense, unless said repairs are made necessary through the negligence of Lessee or its employees. Repairs, changes, alterations or additions to the premises required to be made by order of federal, state or municipal authorities, or board of fire underwriters, shall be made by Lessor, at Lessor's expense. Lessor agrees that if Lessor does not repair or commence to repair the aforementioned within ten (10) days after notice by Lessee, Lessee may make the repairs at Lessor's expense and deduct the cost thereof from the rent. Lessee has examined the leased premises and accepts the same in their present condition. Subject to the requirement of Lessor to provide daily janitorial service, and further subject to the maintenance requirements of Lessor, as provided above in this paragraph, Lessee will at all times keep the premises neat, clean and in a sanitary condition. Lessee shall, at the expiration or earlier termination of this Lease, surrender possession thereof to Lessor in their condition as originally accepted hereunder, ordinary wear and tear, damage by act of God or by elements excepted; subject, however, to the provisions with respect to special alterations or improvements made by Lessee as hereinafter provided in this Lease. OFFICE LEASE AGREEMENT 3 MGS/LEAS20 6.0 POSSESSION: Lessee shall be entitled to possession of the leased office space commencing on the date the term of this Lease commences, pursuant to the terms of paragraph 1.0 hereof. 7.0 SERVICES AND UTILITIES: Provided that Lessee remains current in the payment and performance of its obligations under the terms of this Lease, Lessor shall furnish heat and air conditioning (comparable with the heating and air conditioning furnished in other first—class office buildings situate in the County of Yakima, State of Washington), light, janitor services, and water and power for ordinary office machines, when reasonably necessary for the use and occupancy of the leased office space. Lessor shall not be liable for any damage, injury or otherwise which may arise or accrue, nor shall the rental herein reserved be abated for failure to furnish or delay in furnishing any of the foregoing services when such failure or delay is caused by accident or conditions beyond the control of Lessor, or by labor disturbances or labor disputes of any character, or by the making of necessary repairs or improvements to the premises or to the building, nor shall the temporary failure to provide such services be construed as a constructive or other eviction of Lessee. If Lessee's future use of the premises results in an electrical power requirement materially in excess of that required for the premises at the commencement of the Lease term, Lessee shall bear the cost of such increase power requirement. 8.0 ALTERATIONS: 8.1 Lessor Alterations: Prior to the commencement of this Lease, Lessor shall make those alterations and modifications to the leased premises which have been agreed to by the parties and which are more fully disclosed on Exhibit B attached hereto and by this reference incorporated herein. 8.2 Lessee Alterations: Lessee shall not make or permit to be made any alterations, additions or improvements to or of the premises, or any part thereof, without the prior written consent of Lessor, which consent shall not be unreasonably withheld; and any alterations, additions or improvements to or of the premises, except movable furniture and trade fixtures, shall at once become a part of the realty and belong to Lessor. Any alterations, additions or improvements to the premises by Lessee shall be made at Lessee's sole cost and expense, and the selection of any contractor or person to construct or install OFFICE LEASE AGREEMENT 4 MGS/LEAS20 the same shall be subject to the prior written approval of Lessor. Upon the expiration or sooner termination of the term hereof, Lessee shall, upon demand by Lessor, at Lessee's sole cost and expense, forthwith and with all due dili- gence remove any "special alterations, additions or improvements" made by Lessee and designated by Lessor to be removed; and Lessee shall forthwith, with all due diligence, at its sole cost and expense, repair any damage to the premises caused by the installation of or removal of such "alterations, additions or improvements." "Special alterations, additions or improvements" means leasehold modifications or improvements made to the leased premises by Lessee which are not considered as usual and ordinary for general business offices in Yakima County, State of Washington. 9.0 DAMAGE OR DESTRUCTION: In the event the premises or building are destroyed or damaged by fire, earthquake or other casualty to such an extent as to render the same untenantable in whole or in substantial part thereof, Lessor shall have the option, exercisable by written notice to Lessee within ninety (90) days after the occurrence of the damage, to repair or rebuild the same, provided such repair or rebuilding can be accomplished in nine (9) months. In such an event, the rent payable during the period the premises remain damaged shall be abated in proportion to that part of the premises which is unusable by Lessee. If Lessor does not so elect to make said repairs, or if the repairs or rebuilding cannot be reasonably accomplished within a nine-month period, then either party may, by written notice to the other, cancel this Lease. 10.0 ACCIDENT - WAIVER OF SUBROGATION: Lessee will save and hold Lessor harmless from all loss, damage, liability or expense, including attorney's fees, resulting from any injury to any person or any loss of or damage to any property caused by or resulting from negligence of Lessee in or about the leased office space. Lessor shall not be liable for any loss or damage to persons or property sustained by Lessee, or other persons, which may be caused by the building or the leased office space, cr any appurtenances thereto, being out of repair; or by the bursting or leakage of any water, gas, sewer or steam pipes; or by theft; or by any act of neglect of any tenant or occupant of the building, or of any other persons; or by any other cause of whatsoever nature, unless caused by the negligence of the Lessor. OFFICE LEASE AGREEMENT 5 MGS/LEAS20 Whether the loss or damage is due to the negligence of Lessor or Lessee, their agents or employees, or any other cause, Lessor and Lessee do each here- with and hereby release and relieve the other from responsibility for and waive their entire claim of recovery for (a) any loss or damage to the real or personal property of either located anywhere in the building, and including the building itself, arising out of or incident to the occurrence of any of the perils which may be covered by the fire and lightning insurance policy, with extended coverage endorsement, in common use in the Central Washington locality, and policies covering any loss by theft or water damage; or (b) loss resulting from business interruption at the premises or loss of rental income from the building arising out of or incident to the occurrence of any of the perils which may be covered by the business interrup- tion insurance policy and by the loss of rental income insurance policy in common use in the Central Washington locality. To the extent that such risks under (a) and (b) are, in fact, covered by insur- ance, each party shall cause its insurance carriers to consent to such waiver and to waive all rights of subrogation against the other party. 11.0 CONDEMNATION: If the whole of the leased office space, or such portion thereof as shall be required for its reasonable use, shall be taken by virtue of any condemnation or eminent domain proceeding, this Lease shall automatically terminate as of the date of such condemnation or as of the date possession is taken by the condemning authority, whichever is earlier. Current rent shall be apportioned as of the date of such termination. In case of a taking of a part of the leased office space not required for the reasonable use of premises, then this Lease shall continue in full force and effect, and the rental shall be equitably reduced based on the proportion by which the rentable area of the premises is reduced; such rent reduction to be effective on the date of such partial taking. No award for any partial or entire taking shall be apportioned, and Lessee hereby assigns to Lessor any award which may be made in such taking or condemnation, together with any and all rights of Lessee now or hereafter arising in or to the same or any part thereof; provided, however, that nothing shall be deemed to give Lessor any interest in or to require Lessee to OFFICE LEASE AGREEMENT 6 MGS/LEAS20 assign to Lessor any award made to Lessee for the taking of personal property or fixtures belonging to Lessee, or for the interruption of or damage to Lessee's business, or for loss of possession of the leased office space, or for Lessee's relocation expenses, which shall be the exclusive rights of Lessee. 12.0 ENTRY AND INSPECTION: Lessee will permit Lessor and its agents to enter into and upon the premises at all reasonable times for the purpose of inspecting the same or for the purpose of cleaning, repairing, altering or improving the premises or the building; and when absolutely necessary, Lessor may temporarily close entrances, doors, corridors, or other facilities without liability to Lessee by reason of such closure; provided, however, in the event of such temporary closure, Lessor shall maintain open at least one access to the leased office space so that Lessee's use and occupancy of the same will not be unreasonably restricted or interfered with as a result of the temporary closure. Nothing herein shall require Lessor to make any repair or improvement other than such as Lessor may, in its sole judgment, deem necessary or desirable. Lessor shall have the right to enter the premises at reasonable times for the purpose of showing the premises to prospective tenants for a period of one hundred twenty (120) days prior to the expiration of the Lease term. 13.0 PRIORITY: This Lease shall automatically be subordinate to any mortgage or deed of trust heretofore cr hereafter placed upon the building or to any sale and/or leaseback, to any and all advances made or to be made theca -- under, to the interest on the obligations secured thereby, and to all renewals, replacements and extensions thereof; provided, however, that in the event of sale or foreclosure of any such mortgage or deed of trust, or exercise of the power of sale thereunder, Lessee shall attorn to the purchaser of building at such foreclosure or sale and recognize such purchaser as Lessor under this Lease, if so requested by such purchaser. If any mortgagee or beneficiary elects to have this Lease superior to its mortgage or deed of trust and gives notice of its election to Lessee, then this Lease shall thereupon become superior to the lien of such mortgage or deed of trust, whether this Lease is dated or recorded before or after the mortgage or deed of trust. Within fifteen (15) days of presentation, Lessee shall execute, acknowledge and deliver to Lessor OFFICE LEASE AGREEMENT 7 MGS/LEAS20 (a) any subordination or nondisturbance agreement or other instrument that Lessor may require to carry out the provisions of this article, and (b) any estoppel certificate requested by Lessor from time to time in the standard form of any such mortgagee or beneficiary certifying in writing, if such be true, that Lessee shall be in occupancy, that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifica- tions), and that the dates to which the rent and other charges shall have been paid, and that there shall be no rental offsets or claims. The requirements of this paragraph shall not be construed as requiring the Lessee to waive any rights granted to it by virtue of this Lease Agreement. 14.0 HOLDOVER: If Lessee shall, with the written consent of Lessor, hold over after the expiration of the term of this Lease, such tenancy shall be for an indefinite period of time on a month-to-month tenancy, which tenancy may be terminated as provided by the laws of the State of Washington. During such tenancy, Lessee agrees to pay to Lesser the same rental as set forth herein, unless a different rate is agreed upon, and to be bound by all of the terms, covenants and conditions as herein specified, so far as applicable. 15.0 LIENS AND INSOLVENCY: Lessee shall keep the leased premises, and the property in which the leased premises are situated, free from any liens arising out of any work performed, materials furnished or obligations incurred by the Lessee; provided, however, Lessee reserves the right to contest the merits of any lien claimants and provided that Lessor is given adequate assurance that the lien will be paid to the extent the same is valid. Then in such event, the imposition by a lien claimant shall be considered as a default under the terms of this paragraph 15.0. In the event Lessee shall become insolvent, become bankrupt, go into receivership, make an assignment for the benefit of creditors or take or have taken against Lessee any proceeding of any kind under any provisions of the Federal Bankruptcy Act, then Lessor may cancel this Lease, at Lessor's option. OFFICE LEASE AGREEMENT 8 MGS/LEAS20 16.0 SUCCESSOR: Subject to any limitations on assignment set forth herein, all of the terms and provisions of this Lease shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto. 17.0 COSTS AND ATTORNEY'S FEES: If by reason of any default on the part of Lessee it becomes necessary for Lessor to employ an attorney, or in case Lessor shall bring suit to recover any rent due hereunder or for any breach of the provisions of this Lease or to recover possession of the leased premises, or if Lessee shall bring any action for any relief against Lessor, declaratory or otherwise, arising out of this Lease, the prevailing party shall have and recover against the other party, in addition to the costs allowed by law, such sum as the court may adjudge to be a reasonable attorney's fee. In the event Lessee defaults in the payment of rental, Lessee agrees to pay the cost of any collection agency or attorney employed by Lessor. 18.0 NONWAIVER: Waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition, or of any subsequent breach of the same, or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant or condition of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. 19.0 DEFAULT AND RE-ENTRY: Except for a default under paragraph 15.0 herein, for which immediate right of termination is given to Lessor, if Lessee fails to pay any installment of rent within fifteen (15) days after written notice or to perform any other covenant under this Lease within thirty (30) days after written notice from Lessor stating the nature of the default, Lessor may cancel this Lease and re-enter and take possession of the premises using all necessary force to do so. Notwithstanding such retaking of possession by Lessor, Lessee's liability for the rent provided herein shall not be extin- guished for the balance of the term, of this Lease. Upon such re-entry, Lessor may elect either OFFICE LEASE AGREEMENT 9 MGS%LEAS20 (a) to terminate this Lease, in which event Lessee shall immedi- ately pay to Lessor a sum equal to that by which the then cash value of the total rent reserved under this Lease for the balance of the Lease term exceeds the then reasonable rental value of the premises for the balance of the Lease term; or (b) without terminating this Lease, to relet all or any part of the premises as the agent of and for the account of Lessee upon such terms and conditions as Lessor may deem advisable, in which event the rents received on such reletting shall be applied first to the expenses of reletting and collec- tion, including necessary renovation and alteration of the premises, reasonable attorney's fees and real estate commissions paid, and thereafter, to payment of all sums due or to become due Lessor hereunder; and if a sufficient sum shall not be thus realized to pay such sums and other charges, Lessee shall pay Lessor any deficiency monthly, and Lessor may bring an action therefor as such monthly deficiency shall arise. In the event of any such retaking of possession of the premises by Lessor as herein provided, Lessee shall remove all personal property located thereon, and upon failure to do so upon demand of Lessor, Lessor may remove and store the same in any place selected by Lessor, including, but not limited to, a public warehouse, at the expense and risk of Lessee. If Lessee shall fail to pay the cost of storing any such property after it has been stored for a period of thirty (30) days or more, Lessor may sell any or all of such property at public or private sale and shall apply the proceeds of such sale: first, to the cost of such sale; second, to the payment of the charges for storage, if any; and third, to the payment of any other sums of money which may be due from Lessee to Lessor under the terms of this Lease, and the balance, if any, to Lessee. Lessee hereby waives all claims for damages that may be caused by Lessor's lawfully removing and storing the property of Lessee as herein provided and will save Lessor harmless from loss, costs, or damages occasioned Lessee thereby; and no such lawful re-entry shall be considered or construed to be a forcible entry. 20.0 NOTICES: All notices under this Lease shall be sent by registered or certified mail, return receipt requested, or delivered in person. OFFICE LEASE AGREEMENT 10 MGS/LEAS20 (a) Notices to the Lessor shall be sent to Lessor at P. O. Box 1726, Yakima, Washington 98907. (b) Notices to Lessee shall be sent to Lessee at 201 East Lincoln, Suite 5, Yakima, Washington 98901. 21.0 LESSOR'S RIGHT TO CURE DEFAULTS: All covenants and agreements to be performed by Lessee under any of the terms of this Lease shall be at its sole cost and expense and, except as otherwise specifically provided herein, without any abatement of rent. If Lessee shall fail to pay any sum of money other than rent required to be paid by it hereunder, or shall fail to perform any other act on its part to be performed hereunder, and such failure shall continue for thirty (30) days after notice thereof by Lessor, Lessor may make such payment or perform such other act without waiving any rights of Lessor or releasing Lessee from any obligation of Lessee hereunder, but Lessor shall not be obligated to make such payment or to perform such other act. All sums so paid shall be considered additional rental hereunder; and, except as otherwise in this Lease expressly provided, shall be payable to Lessor on demand or, at the option of Lessor, in such installments as Lessor may elect, and may be added to any rent then due or thereafter becoming due under this Lease; and Lessor shall have (in additionto any other right or remedy of Lessor) the same rights and remedies in the event of the nonpayment thereof by Lessee as in the case of default by Lessee in the payment of rent hereunder. 22.0 SIGNS OR ADVERTISING: Lessee will not inscribe any inscription or post, place, or in any manner display any sign, notice, picture or poster or any advertising matter whatsoever anywhere in or about the leased premises or said building without first obtaining Lessor's written consent thereto. Any consent so obtained from Lessor shall be with the understanding and agreement that Lessee will remove same at the termination of the tenancy herein created and repair any damage or injury to the premises or said building caused thereby. Lessor will install and maintain a building directory of tenants in the princi- pal lobby entrances of the building, or the exterior thereof, and Lessor may, as it may determine from time to time, publish or advertise a tenancy list of Lessor's building. OFFICE LEASE AGREEMENT 11 MGS/LEAS20 22.1 Window Coverings: So as to maintain the aesthetic appearance and maintain uniformity of the exterior of the office building, Lessor reserves the right to approve window coverings (e.g., drapes, shades, etc.) to be installed on the leased premises by Lessee. 23.0 TRANSFER OF LESSOR'S INTEREST: In the event Lessor transfers its reversionary interest in the premises (other than a transfer for security purposes only), Lessor shall be relieved of all obligations accruing hereunder after the effective date of such transfer, provided that such obligations have been expressly assumed in writing by the transferee. 24.0 RESERVATION OF RIGHTS: Except as otherwise expressly provided herein, Lessor hereby reserves the right, exercisable from time to time and at any time during the change the term hereof, and without notice of liability of Lessee, (a) to change the name (provided Lessor agrees that it name of the building so as to identify the same as being a will not building owned or occupied by any particular competitor of Lessee) or street address of the building; and (b) to grant to anyone the exclusive right to conduct any particular business or undertaking in the building. 25.0 SURRENDER OF LEASE: The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger and shall, at the option of Lessor, terminate all or any existing subtera.cies, or may, at the option of Lessor, operate as an assignment to it of any or all such subten- ancies. 26.0 ABANDONMENT: Lessee shall not abandon the premises at any time prior to the expiration or earlier termination of the term hereof. In the event Lessee shall abandon or surrender the premises, or be dispossessed by process of law or otherwise, any personal property belonging to Lessee and left on the premises shall be deemed to have been abandoned. 27.0 RULES AND REGULATIONS: Lessor reserves the right to adopt reasonable rules and regulations in connection with the use and occupancy of the said building and related common areas, provided such rules and regulations shall not be considered as being effective until fifteen (15) days after being mailed or delivered to Lessee. Further, Lessor reserves the right to amend or modify such OFFICE LEASE AGREEMENT 12 MGS/LEAS20 STATE OF WASHINGTON County of Yakima ) ) ) ss. I certify that I know or have satisfactory evidence that ROBERT R. DOLSEN signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the authorized partner of CENTURY PLAZA, a Partnership, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED this day of , 1989. NOTARY PUBLIC in and for the State of Washington, residing at My appointment expires OFFICE LEASE AGREEMENT 14 MGS/LEAS20 rules and regulations in the same manner. Lessee agrees that Lessor shall not be responsible to Lessee for noncompliance by any other lessee or occupant of the building with any of said rules or regulations as may be adopted and published by Lessor. 28.0 RIDERS: The riders, if any, attached hereto are made a part of this Lease by reference. 29.0 QUIET ENJOYMENT: Lessor covenants that if so long as Lessee pays the rent and additional rent, if any, and performs the covenants herein, Lessee shall peaceably have, hold and enjoy the leased premises for the term or renewal term herein mentioned, subject to the provisions of this Lease. TIME IS OF THE ESSENCE IN THIS LEASE IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease on the day of , 1988. LESSOR: CENTURY PLAZA By:, Robert R. Dolsen Authorized Partner OFFICE LEASE AGREEMENT LESSEE: THE CITY OF YAKIMA By: Title: Richard A. Zais, Jr. City Manager '6,1)1.2, City Clerk 13 MGS/LEAS20 City Contract No. g. 4 -41i1 -4-1i1 Resolution No. ll - ss 43 84'9" CITY OF YAKIMA, LEGAL DEPARTMENT OFFICE RENOVATION CENTURY PLAZA BUILDING - 201 E. LINCOLN, SUITE 5 28 10 (1 70 n.f. 360 s.f. Library Kitchen 14 120 s.f. 4 [_3( 14 #6 -Bob 168 n.f. 12 30 a.f. 12 10 —. #4 -Rod r 168 a.f. 12 rrKOi!/ A4,r+o•f -Empty 168 a.f. 12 Waiting 3 6 r: Sec/Reception 210 a.f. 16 Conf.Rm. 12 232 s.f. 18 14 6 168 a.f. 153'3" 6 -1IBIT A" 14 #2 -Sharon 168 a.f. 12 #1 -John 184 s.f. 16 12 36 CENTURY PLAZA BUILDING (HEST END) scale - 1/8" - 1' 31'6" K N "EXHIBIT B" CITY OF YAKIMA, LEGAL DEPARTMENT OFFICE RENOVATION CENTURY PLAZA BUILDING - 201 E. LINCOLN, SUITE 5 OVERALL OFFICE RENOVATIONS Replace carpet throughout. Clean all wood surfaces and refinish as needed. Clean and paint or replace all acoustic ceiling tiles as needed. Clean and wax all wall paneling that is not indicated to be removed. Replace fluorescent bulbs with "vita lite" bulbs; replace clear lighting panels as needed (some are stained or broken; keep conformity throughout). Check roof for leaks and repair as needed. Clean all windows. Clean and check heat/air conditioning. Inspect, repair, and/or replace all inside and outside door locks. All painted surfaces shall be semi-gloss/satin finish. INDIVIDUAL OFFICE RENOVATIONS Waiting/Reception/Secretary Area: Remove flowered wallpaper; finish and paint wall. Clean, refinish, and wax paneling, cabinets, etc. Refinish and wax entry floor tiles. Clean and paint telephone/storage room. Remove grass mat wallpaper; retexture and paint wall. Kitchen/Bathrooms: Strip, clean, and wax floor tiles. Clean and wax wood cabinets; fix closet tract system. Paint walls. Clean refrigerator and stovetop. Clean bathrooms (2), paint walls, wax floors, etc. Install new toilet seats and lighting as necessary. OFCRENOP - 1 (5/23/89) Library: Remove gold carpet and wood strips from wall; refinish and paint wall. Repaint cabinets. Replace wall, finish, and paint. Retain all electrical outlets. Hall: Remove mountain mural from wall, refinish, and paint. Conference Room: Paint walls. Clean baseboard, door frames, etc. Office #1 (John): Remove wallpaper, paneling, and corkboard; refinish and paint all walls. Exchange curtains/drapes with those in Office #2. Office #2 (Sharon): Remove paneling from walls; refinish and paint. Exchange curtains/drapes with those in Office #1. Office #3 (empty): Clean all paneling. Paint walls. Office #4 (Rod): Refinish, repair, and paint unfinished wall. Office #5 (empty): Retexture and paint walls. Replace wall, paneling, and base in door opening between Offices #5 and #6. Office #6 (Bob): Remove mat wallpaper; finish wall and paint. Replace wall, paneling, and base in door opening between Offices #5 and #6. OTHER CONSIDERATIONS Retain all electrical outlets. Certify that existing electrical is adequate for word processors (2), printer (1), copier, fax, typewriters, and any other office equipment needed. OFCRENOP - 2 (5/23/89)