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HomeMy WebLinkAboutA3568 - DESERT ART CENTER LEASE FRANCES STEVENS DOCUMENT TRACKING Page: 1 Report: All Active Documents Detail January 8, 2009 Condition: Document Numbers from A3568 to A3568,ALL Groups,ALL Services,ALL XREFs da_cument# Description Approval Date Expiration Date Closed Date A3568 Lease Francis Stevens Park 03/12/1999 03/01/2019 Company Name: Desert Art Center Address: P 0. Drawer#2813„ Palm Springs, CA 92262 Phone: (760) 323-7973 Contact: Dear Ms. Hollinger Group: ECONOMIC DEVELOPMENT Service: Lease Agreement xRef: COMMUNITY & ECONOMIC DEVELOPMENT Ins. Status: A policy has Expired Document Tracking.Items: Due Completed Tracking Amount Amount Code Item Description Date Date Date Added Paid Converted from Fastrack v5.15 data. 12-11-96 study session ok mo to mo ogburn assigned cab gave copy of file to Jennifer Henning 07/03/2008 Track Notes: File contained copy of Minutes from 1996 regarding status of agreements on property and they were provided to Jennifer too. * * * * * END OF REPORT 5P✓.� �°-�+�-r� J �Y r C"r'Artv6 f.,=w"r_ E•' � rJ �r u Desert Art Ctr Inc of CV 1-74 Lease-Portion of Prances Stevens Park Bldg-550 I AGREEMENT #3568 N8564�-, 8-1?-95 MsHIS LEASE ("Lease") is made and entered into this 1st day of 1 19 95 , by and between the CITY OF PALM SPRINGS, a municipal corporation ("Landlord") , and Desert Art Center. InC of Coachella Valley ("Tenant") . 1.0 LEASE SUMMARY. certain fundamental lease provisions are presented in this Section and represent the agreement of the parties hereto, subject to further definition and elaboration in the respective referenced Sections and elsewhere in this Lease. In the event of any conflict between any fundamental lease provision and the balance of this Lease, the latter shall control. References to specific Sections are for convenience only and designate some of the Sections where references to the particular fundamental lease provisions may appear. 1.1 Property: The term "Property" as used herein shall refer to that certain real property located in the County of Riverside, State of California, as more particularly described in Exhibit "A" hereof together with the improvements located thereon. 1.2 Demised Premises: The "Demised Premises" consist of the area generally crosshatched on the Plot Plan attached as Exhibit "B" hereof. 1.3 Approximate Floor A 33 of Premises: 4,838 square feed; approximate frontage: H feet; approximate depth: UA feet (said measurements being to the center of interior separation partitions and the outside of exterior walls) . 1.4 Lease Commencement Date: October 1 1995 and continuing for a period of one (1) year. (See Section 2.1) . 1.5 Monthly Rental: $ 408.00 (See Section 3.1) . 1.6 Security Deposits $ roo Qo (See Section 3.8) . 1.7 Use of D.emised.Premieee: Artist's studio, workshops, ga ery, lM udding sales b r es iva s. (See Section 4. 1) . 1.8 Tenant's Address for Notices: Desert Art Center, Inc. Of Coachella Vallee Drawer a m prinas Ca 92262 1.9 If Section 4.6 of this Lease relating to charitable leases is applicable, please mark here If Section 4.6 is applicable, the fair market rental value of the Dem sed Premises is $N/A FS2\27099999J000120099D2. W15M • • 2.0 TERM. 2.1 Terms of Lease. The term of this Lease shall commence on the date specified in Section 1.4 ("Commencement Date") and shall be for a period of one (1) year or until this Lease is earlier terminated as provided herein. 2.2 Time. Time is of the essence of this Lease. 2.3 Force Maieure. If either party hereto shall be delayed or prevented from the performance. of any act required hereunder by reason of Acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations or other cause without fault and beyond the control of the party obligated (financial inability excepted) , performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided such party provides the other party written notice of such event within ten (10) days of the commencement of the delay; provided, however, nothing in this Section contained shall excuse Tenant from the prompt payment of any rental or other charge required of Tenant hereunder except as may be expressly provided elsewhere in this Lease. 2.4 Holding Over. Any holding over after the expiration of the term of this Lease, with the consent of Landlord, express or implied, shall be construed to be a tenancy from month to month, cancellable upon thirty (30) days written notice, and at a rental equal to one hundred fifty percent (150%) of the last applicable Monthly Rental and upon terms and conditions as existed during the last year of the term hereof.. 3.0 RENTAL. 3.1 Monthly Rental. Tenant shall pay to Landlord, during the term . of this Lease from and after the Commencement Date as monthly rental ("Monthly - Rental") for the Demised Premises the sum specified in Section 1.5 hereof, which sum shall be paid in advance on the first day of each calendar month. In the event the Commencement Date does not occur on the first day of a calendar month, the Tenant shall pay the rental for the fractional month on the Commencement Date on a per diem basis (calculated on a thirty-day month) . All rental to be paid by Tenant to Landlord shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand at the address designated in Section 13„9 hereof. 3.2 Additional Rental. For purposes of this Lease, all monetary obligations of Tenant under this Lease, including, but not limited to, insurance premiums, property taxes, maintenance expenses, late charges and utility costs shall be deemed to be additional rental. ' 3.3 Real Estate Taxes. In addition to all rentals herein reserved, Tenant shall pay, at the election of Landlord, either directly to the taxing authority or to Landlord., annual real estate taxes and assessments levied upon the Demised Premises (including any possessory interest taxes) and a pro rata share of annual real estate taxes and assessments levied upon the parking and common areas of the Property, if any, as well as taxes of every kind and nature levied and assessed in lieu of, in substitution for, or in addition to, existing real property taxes. Said taxes shall be paid within twenty (20) days of the delinquent date or, if Landlord rather than Tenant receives the tax bill, said taxes shall be paid within ten (10) days of receipt of a tax statement from Landlord, whichever is later. Even though the term of this Lease has expired and Tenant has vacated the Demised Premises, when the final determination is made of Tenant's share of such taxes and .assessments, Tenant shall immediately pay to Landlord the amount of any additional sum owed. 3.4 Personal Property Taxes. During the term hereof Tenant shall pay prior to delinquency all taxes assessed against and levied upon fixtures, furnishings, equipment and all other personal property of Tenant contained in the Demised Premises, and when possible Tenant shall cause said fixtures, furnishings, equipment and other personal property to be assessed and billed separately from the'real property of Landlord. 3.5 Utilities. Tenant shall pay before delinquency all charges for water, gas, heat, electricity, power, sewer, telephone service, trash removal (unless included in the -expenses to maintain the common and parking areas) and all other services and utilities used in, upon, or about the Demised Premises by Tenant or any of its subtenants, licensees, or concessionaires during the term of this Lease. ' 3.6 Late Payment. Tenant hereby acknowledges that late payment by Tenant to Landlord of rental or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which is extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, any payment of any sum to be paid by Tenant not paid when within five (5) days of its due date shall be subject to a five percent (5%) late charge. Landlord and Tenant agree that this M\2700999993000VA0M2. 09115M -2- late charge represents a reasonable estimate of such costs and expenses and is fair compensation to Landlord for its loss suffered by such late payment by Tenant. 3.7 Interest. Any sum to be paid pursuant to the terms of this Lease not paid when due shall bear interest from and after the due date until paid at a rate equal to three percent (38) over the reference rate being charged by Hank of America, N.A. from time to time during such period so long as the rate does not exceed the maximum non-usurious rate permitted by law in which case interest shall be at the maximum non-usurious rate allowed by law at the time the sum became due. 3.8 Security Deposit. Tenant contemporaneously with the execution of this Lease, has deposited with Landlord the sum specified in Section 1.6 hereof, receipt of which is hereby acknowledged by Landlord, said deposit being given to secure the faithful performance by the Tenant of all terms, covenants, and conditions of this Lease by the Tenant to be kept and performed during the term hereof. Tenant agrees that if the Tenant shall fail to pay the rent herein reserved or any other sum required hereby promptly when due, said deposit may, at the option of the Landlord (but Landlord shall not be required to) be applied to any rent or other sum due and unpaid, and if the Tenant violates any of the other terms, covenants, and conditions of this Lease, said deposit may, at Landlord's option, be applied to any damages suffered by Landlord as a result of Tenant's default to the extent of the amount of the damages suffered. Nothing contained in this Section shall in any way diminish or be construed as waiving any of the Landlord's other remedies as provided in Section 11.1 hereof, or by law or in equity. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall, on the written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore said security deposit to its original amount, and Tenant's failure to do so within five (5) days after receipt of such demand shall constitute a breach of this Lease. Should Tenant comply with all of the terms, covenants, and conditions of this Lease and promptly pay all of the rental herein provided for as it falls due, and all other sums payable by Tenant to Landlord hereunder, said security deposit shall be returned in full to Tenant at the end of the term of this Lease, or upon the earlier termination of this Lease as specified herein. 4.0 USE OF THE PREMISES. 4.1 Permitted Use. The Landlord hereby leases to Tenant and Tenant hereby hires from Landlord the Demised Premises with appurtenances as defined herein, for the purpose of conducting thereon only the use specified in Section 1.7 of this Lease and for no other use. 4.2 Prohibited Uses. Tenant shall not sell or permit to be kept, used, displayed or sold in or about the Demised Premises (a) pornographic or sexually explicit books, magazines, literature, films or other printed material, sexual paraphernalia, or other material which would be considered lewd, obscene or licentious, (b) any article which may be prohibited by standard forms of fire insurance policies, or (c) any alcoholic beverages unless expressly permitted by Section 1.7 hereof. Tenant shall not use, or permit to be used, the Demised Premises or any part thereof for the installation or on-premises use of any vending machine, gaming machine or video or arcade game unless expressly permitted by this Lease. 4.3 Compliance With Laws. Tenant shall, at his sole cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force or which may hereafter be in force pertaining to the use of the Demised Premises, and shall faithfully observe in said use all municipal ordinances, including, but not limited to, the General Plan and zoning ordinances, state and federal statutes, or other governmental regulations now in force or which shall hereinafter be in force. Tenant's violation of law shall constitute an incurable default under this Lease. The judgment of any court of competent jurisdiction, or the admission of Tenant in any action or proceeding against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any such order or statute in said use, shall be conclusive of that fact as between the Landlord and Tenant. Tenant shall not engage in any activity on or about the Demised Premises that violates any Environmental Law, and shall promptly, at Tenant's sole cost and expense, take all investigatory and/or remedial action required or ordered by any governmental agency, Landlord or Environmental Law for clean-up and removal of any contamination involving any Hazardous Material created or caused directly or indirectly by Tenant. The term "Environmental Law" shall mean any federal, state or local law, statute, ordinance or regulation pertaining to health, industrial hygiene or the environmental conditions on, under or about the Demised Premises and the regulations and administrative codes applicable thereto. The term "Hazardous Material" includes, without limitation, any material or substance which is (i) defined or listed as a "hazardous waste", "extremely FszUM09999saaom20099.2. o ISM -3- hazardous waste", "restrictive hazardous waste" or "hazardous substance" or considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii) petroleum or a petroleum product or fraction thereof; (III) asbestos; and/or (iv) substances known by the State of California to cause cancer and/or reproductive toxicity. It is the intent of the parties hereto to construe the terms "Hazardous Materials" and "Environmental Laws" in their broadest sense. Tenant shall provide all notices required pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et sea.. Tenant shall provide prompt written notice to Landlord of the existence of Hazardous Substances on the premises and all notices of violation of the Environmental Laws received by Tenant. 4.4 Signs. Tenant shall not place or permit to be placed any sign that is not in compliance with the sign ordinance of the Landlord upon the exterior or in the windows of the Demised Premises. Any sign not constructed in accordance therewith shall be immediately removed by Tenant and, if said sign is not removed by Tenant within ten (10) days of written notice from Landlord to Tenant, then Landlord may remove and destroy said sign without Tenant's approval and without any liability to Tenant. 4.5 Hours of Business. Subject to the provisions of Section 9.0 hereof, Tenant shall continuously during the entire term hereof conduct and carry on Tenant's business in the Demised Premises and shall keep the Demised Premises open for business and cause Tenant 's business to be conducted therein during the usual business hours of each a.nd every business day as is customary forpQ,// businesses of like character to be open for business in the county in which th Demised Premises are located. In event, however y.,ejlall such hours of bein open for business be less than (a) a.m. through -81'-p.m. at least five days }Pt{t per week or (b) the hours of 70% of the number of tenants in the Property; �a provided, however, that this provision shall not apply if the Demised Premises should be closed and the business of Tenant temporarily discontinued therein on account of strikes, lockouts, or similar causes beyond the reasonable control of / Tenant. It is the intention of Landlord that the Demised Premises be open during evening hours to promote business in the City of Palm Springs and, therefore, T^ n« ehmll .-«t^tp-t- A.. _proq=am ^..4_1.11eh d b Landlord L_ ld_ ..T ntn ahn p4n nA n«vY«,4 n« whth progr-m may ...No _dt..tst_ _d ti the _n^ nto nu-in *mr- •"orat B#etatat.. er eueh ether ant:#`y--t-#>'at—fna be- 1-1,7nated by the Landlerd 4.6 Charitable Lease. The provisions of this Section are required by Resolution No. 14527 of the City Council and shall only apply if so indicated in Section 1.9. Tenant hereby represents and warrants to Landlord that Tenant is exempt from federal income taxation pursuant to Internal Revenue Code Sections 501(c) (1) and/or 501(c) (3) and that Tenant's use of the Demised Premises as specified in Section 1.7 is a tax exempt function. Tenant hereby acknowledges that the Monthly Rent is below fair market- rental rates and that the fair market rental value of the property is as specified in Section 1.9. 4.7 Rules and Regulations. Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate and/or modify. The rules and regulations, if any, are attached hereto as Exhibit "D" ("Rules and Regulations") . Any amendment or modification of the Rules and Regulations shall be binding upon the Tenant upon delivery of a copy of such amendment or modification to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any said rules and regulations by any other tenants or occupants. The Rules and Regulations shall apply and be enforced as to all tenants in the Property on a uniform basis. 4.8 Tenant shall join, ak �IJ•�// ,.hretvjhetthmil._ term of this Leas �,- 5.0 PARKING AND COMMON AP'.EAS. 5.1 Definitions. The term "parking and common areas" as used herein shall mean those portions of the Property that are from time to time established by Landlord as automobile parking areas, roadways, walkways, landscaped areas, malls, service areas, and the like. During the term of this Lease and any extension thereof, Landlord gives to Tenant for the use and benefit of Tenant, its agents, employees, customers, licensees and subtenants a non- exclusive license in common with Landlord and other present and future owners and tenants of the Property and their agents, employees, customers, licensees and subtenants, and others authorized by Landlord to use the parking and common areas of the Property for ingress, egress and automobile parking, provided that the condemnation or other taking by any public authority, or sale in lieu of condemnation, of any or all of such parking and common areas shall not constitute a violation of this covenant. Nothing herein contained shall be deemed to prevent Landlord from using or authorizing others to use said parking and common areas. FS2%276109999"0WaffiM2. 0et15t9s -4- 5.2 Maintenance of Common Areas. During the entire term hereof, Landlord shall keep or cause to be kept the parking and common areas as same are established and completed by Landlord in a good, neat, clean and orderly condition, properly lighted and landscaped, and shall repair any damage to the facilities thereof as well as the exterior walls and roof of the Demised Premises as provided in Section 6.2. uk a," -e11pa in pn a,onm ahall hO rhargAd and ^7- .1 JA h^ - h.. MFa 4 F^ 4b-- "or41..., •-i 41,-*h=- ..v.�.^,gam^.d Tonant'o pr-c gaga ehae e€ eeah- shall h thm�gR—..£ "11, Ruch which equal a.. the th cre. f ...h:nh the mhor of f—t of £1..... . 4he h..l l.i1 4hc Dr r4. .+1 e.i ..F 4he ..4 ..F ,.}1- �a):eadar--m^^ah Tharg shall-]- he ^ a4.. adi" .a..ent e f T....^_..a%hq�p th^ expanse na:^ wi3 h t.h.� ^parking and of ahF ..4� and ptrat-i .-.F 4L... term ^c this 6.0 ALTERATIONS AND REPAIRS. 6.1 Alterations and Fixtures. Tenant shall not make, or suffer to be made, any alterations to the Demised Premises, or any part thereof, or the building containing the Demised Premises or change the appearance of the building containing the Demised Premises without the prior written consent of Landlord, and any alterations to the Demised Premises, except movable furniture and trade fixtures, shall become at once a part of the realty and shall at the expiration or earlier termination of this Lease belong to Landlord. Tenant shall not in any event make any changes to the exterior of the Demised Premises. Any such alterations shall be in conformance with the requirements of all municipal, state, federal, and other governmental authorities, including requirements pertaining to the health, welfare or safety of employees or the public and in / conformance with reasonable rules and regulations of Landlord. Landlord may require that any such alterations be removed prior to the expiration of the term hereof. Any removal of alterations or furniture and trade fixtures shall be at Tenant's expense and accomplished in a good and workmanlike manner. Any damage occasioned by such removal shall be repaired at Tenant's expense so that the Demised Premises can be surrendered in a good,, clean and sanitary condition as required by Section 6.2 hereof. Any and all fixtures and appurtenances installed by Tenant shall conform with the requirements of all municipal, state, federal, and governmental authorities including requirements pertaining to the health, welfare, or safety of employees or the public. 6.2 Maintenance and Repair. Tenant shall, -aubjeet a^ band ^-.ma's r at all times during the term hereof, and at Tenant's sole cost and expense, keep, maintain and repair the Demised Premises, Tenant's portion of the building containing the Demised Premises and other improvements within the Demised Premises in good and sanitary order, condition, and repair (except as hereinafter provided) , including without limitation, the maintenance and repair of any store front, doors, window casements, glazing, heating and air conditioning system, plumbing, pipes, electrical wiring and conduits. Tenant shall also at its sole cost and expense be responsible for any alterations or improvements to this Demised Premises necessitated as a result of the requirement of any municipal., state or federal authority. Tenant hereby waives all right to make repairs at the expense of Landlord., and Tenant hereby waives all rights provided for by the� Civil Code of the State of California to make said repairs. By entering into the Demised Premises, Tenant, shall be deemed to have accepted the Demised Premises as being in, good and sanitary order, condition and repair, and Tenant agrees on the last day of said term or sooner termination of this Lease to surrender the Demised Premises with appurtenances, in the same condition as when received and in a good, clean and sanitary condition, reasonable use and wear thereof and damage by fire, act of God or by the elements excepted. Tenant shall periodically sweep and clean the sidewalks adjacent to the Demised Premises, as needed. n Landlord shall maintain in good repair the exterior walls, reef and {� J sidewalks. Tenant agrees that it will not, nor will it authorize any person to,c. ,V ,� go onto the roof of the building of which the Demised Premises are a part without (y\\r the prior written consent of Landlord. ' Said consent will be given only upon V Landlord's satisfaction that any repairs necessitated as a result of Tenant's action will be- made by Tenant at: Tenant's expense and will be made in such a manner so as not to invalidate any guarantee relating to said roof. Landlord shall not be required to make any repairs to the exterior walls, recce wand sidewalks unless and until Tenant has notified Landlord in writing of the nee for such repairs and Landlord shall have had a reasonable period of time thereafter to commence and complete said repairs. 6.3 Free From Liens. Tenant shall keep th9 Demised Premises, the - building containing the Demised Premises, and the property on which the Demised Premises are situated free from any liens arising out of any work performed, material furnished, or obligation incurred by Tenant or alleged to have been incurred by Tenant. FSMW099999800D12009932. O8115M -5- 6.4 Reservation of Right to Modify Property. Landlord hereby reserves the right (but not the obligation) to renovate, modernize, rehabilitate, expand, reduce, reconfigure, enclose and/or otherwise alter all or any portion of the Property (collectively "Modifications") , in such manner and at such time or times, throughout the term of this Lease, as Landlord may, in its sole and absolute discretion, deem to be in the best interests of the Property. Such Modifications may include, without limitation, the right to construct new buildings in the Property for additional retail, office, hotel and/or other uses, to remove, renovate, repair, add to, modernize or otherwise alter the building in which the Demised Premises are situated as well as other buildings, facilities, structures, malls, walkways, landscaping, parking and common areas or other areas within the Property. In connection with any and all such Modifications, Landlord may enter the Demised Premises to the extent reasonably required by Landlord to pursue and complete such Modifications. In addition, Landlord may temporarily close portions of the parking and common areas and cause temporary obstructions in connection with any Modifications. Tenant agrees that under no circumstances shall the Modifications as to any portion of the Property or the construction activity that takes place in the course of making the Modifications, or any aspect thereof, including Landlord's entry into the Demised Premises, constitute an eviction or partial eviction of Tenant or a breach of Tenant's right to quiet enjoyment: or of any other provision of this Lease, nor entitle Tenant to damages, injunctive relief or other equitable relief, nor entitle Tenant to any abatement or reduction in the Monthly Rental, additional rental or other charges or sums due under this Lease; provided Landlord uses reasonable efforts to mitigate any adverse effects on Tenant caused by the Modifications. 7.0 INSURANCE AND INDEMNIFICATION. 7.1 Insurance Provided by Landlord. Landlord shall maintain fire and extended coverage insurance throughout the term of this Lease in an amount equal to at least ninety percent (90%) of the replacement value of the building containing the Demised Premises, together with such other insurance, coverages and endorsements as may be required by Landlord's lender, or as Landlord may f\/ determine in its sole discretion. Tenant hereby waives any right of recovery from Landlord, its officers and employees, and Landlord hereby waives any right of loss or damage (including consequential lose) resulting from any of the perils insured against as a result of said insurance. Tenant agrees to pay to Landlord - its pro rats. share of the cost of said insurance to be determined by the relationship that the gross floor area of the Demised Premises bears to the total gross leasable floor area of the building or buildings for which such policy relates. 7.2 Insurance ProvLded by Tenant. - (a) --- , -Ew. nx�aay,@4; n Tmnants,- i€ i-nvelved---in— feed pvepa er similar ndler feed 1 ..a ..l_11 ....a+ll at ....&..a/.. ejEpeR _.. fj.. deep Fry, and eesking areas %Phieh are d state fi:r-e or-dionansee, and sueh systewyl _..,._.. ingt_ll...l shahs..- :—li€; €g- full fj.-a =pr-at .a3�.e--�......i3�... -allowed by (b) Tenant to Provide Personal Property Insurance. Tenant, at its expense, shall maintain fire and extended coverage insurance written on a per occurrence basis on its trade fixtures, equipment, personal property and inventory within the Demised Premises from lose or damage to the extent of their full replacement value and shall provide plate glass coverage. (c) Tenant to Provide Liability Insurance. During the entire term of this Lease, the Tenant shall, at the Tenant's sole cost and expense, but for the mutual benefit of Landlord and Tenant, maintain comprehensive general liability insurance insuring against claims for bodily injury, death or property damage occurring in, upon or about the Demised Premises and on any sidewalks directly adjacent to the Demised Premises written on a per occurrence basis in an amount not less than either (i) a combined single limit of ONE MILLION DOLLARS ($1,000,000.00) for bodily injury, death, and property damage or (ii) bodily injury limits of $250,000.00 per person, $500,000.00 per occurrence and $500,000.00 products and completed operations and property damage limits of $100,000.00 per occurrence and $250,000.00 in- the aggregate; provided, however, if Landlord so elects Landlord may provide such insurance and, in such event, Tenant agrees to pay its pro rats. share of the cost of said insurance on the same basis as provided in Section 7.1 above. (d) Tenant to Provide Worker's Compensation Insurance. Tenant shall, at the Tenant's sole cost and expense, maintain a policy of worker's compensation insurance in an amount as will fully comply with the laws of the State of California and which shall W521276109999v,3OM009932. aensros —6— indemnify, insure and provide legal defense for both the Tenant and the Landlord against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retrained by the Tenant in the course of conducting Tenant's business in the Demised Premises. (e) General Provisions Applicable to Tenant's Insurance. All of the policies of insurance required to be procured by Tenant pursuant to this Section 7.2 shall be primary insurance and shall name the Landlord, its officers, employees and agents as additional insureds. The insurers shall waive all rights of contribution they may have against the? Landlord, its officers, employees and agents and their respective insurers. All of said policies of insurance shall provide that said insurance may not be amended or cancelled without providing 30 days prior written notice by registered mail to the Landlord. Prior to the Commencement Date or such earlier date as Tenant takes possession of the Demised Premises for any purpose; and at least 30 days prior to the expiration of any insurance policy, Tenant shall provide Landlord with certificates of insurance or appropriate insurance binders evidencing the above insurance coverages written by insurance companies acceptable to Landlord, licensed to do business in the state where the Demised Premises are located and rated A:VII or better by Best's Insurance Guide. Landlord and Tenant hereby waive any rights each may have against the other on account of any loss or damage occasioned by property damage to the Demised Premises, its contents, or Tenant's trade fixtures, equipment, personal property or inventory arising from any risk generally covered by insurance against the perils of fire, extended coverage, vandalism, malicious mischief, theft, sprinkler damage, and earthquake sprinkler leakage. Each of the parties, on behalf of their respective insurance companies insuring such property of either Landlord or Tenant against such loss, waive any right of subrogation that it may have against the other. The foregoing waivers of subrogation shall be operative only so long as available in California and provided further that no policy is invalidated thereby. 7.3 Indemnification of Landlord. Tenant, as a material part of the consideration to be rendered to Landlord under this Lease, hereby waives all claims against Landlord for damage to equipment or other personal property, trade fixtures, leasehold improvements, goods, wares, inventory and merchandise, in, upon or about the Demised Premises and for injuries to persons in or about the Demised Premises, from any cause arising at any time. Tenant agrees to indemnify the Landlord, its officers, agents and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities of Tenant, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the use of the Demised Premises or the parking and common areas by Tenant or its employees and Customers, or arising from the failure of Tenant to keep the Demised Premises in good condition and repair, as herein provided, or arising from the negligent acts or omissions of Tenant hereunder, or arising from Tenant's negligent performance of or failure to perform any term, provision covenant or condition of this Lease, whether or not there is concurrent passive or active negligence on the part of the Landlord, its officers, agents or employees but excluding ouch claims or liabilities arising from the Bole negligence or willful misconduct of the Landlord, its officers, agents or employees, who are directly responsible to the Landlord, and in connection therewith: (a) Tenant will defend any action or actions filed in connection with any of Baid claims or liabilities and will pay all costs and expenses, including legal Costa and attorneys' fees incurred in connection therewith; (b) Tenant will promptly pay any judgment rendered against the Landlord, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or :Failure to perform such work, operations or activities of Tenant hereunder; and Tenant agrees to save and hold the Landlord, its officers, agents, and employees harmless therefrom; (c) In the event the Landlord, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Tenant for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Tenant hereunder, Tenant agrees to pay to the Landlord, its officers, agents or employees, any and aLl costs and expenses incurred by the Landlord, FS2\27aO99999."f0MOOM2. 09/15/95 —7— its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees. 8.0 ABANDONMENT AND SURRENDER. 8.1 Abandonment. Tenant shall not vacate or abandon the Demised Premises at any time during the term of this Lease; and if Tenant shall abandon, vacate or surrender the Demised Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the Demised Premises shall be deemed to be abandoned, at the option of Landlord, except such property as may be mortgaged to Landlord. 8.2 Surrender of Lease. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord, terminate, all or any existing subleases or subtenanciee, or may, at the option of Landlord, operate as an assignment to it of any or all of such subleases or subtenanciee. 9.0 DAMAGE AND DESTRUCTION OF PREMISES. In the event of (a) partial or total destruction of the Demised Premises or the building containing same during the term of this Lease which requires repairs to either the Demised Premises or said building, or (b) the Demised Premises or said building being declared unsafe or unfit for occupancy by any authorized public authority for any reason other than Tenant's act, use or occupation, which declaration requires repairs to either the Demised Premises or said building, Landlord may either (i) make said repairs or (ii) terminate this Lease by providing written notice to Tenant within sixty (60) days following the date of such destruction. If Landlord elects to make said repairs, and provided Landlord uses due diligence in malting said repairs, this Lease shall continue in full force and effect, and the Monthly Rental shall be proportionately reduced while such repairs are being made. If Landlord elects to terminate this Lease, all rentals shall be prorated between Landlord and Tenant as of the date of such destruction. In respect to any partial or total destruction (including any destruction necessary in order to make repairs required by any such declaration of any authorized public authority) which Landlord may elect to repair under the terms of this Section, Tenant waives any statutory right it may have to cancel this Lease as a result of such destruction. 10.0 ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Lease or sublet the Demised Premises, or any interest therein,, without the prior written consent of Landlord, which consent shall not be unreasonably withheld. For purposes of this Lease, an assignment shall be deemed to include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Tenant, taking all transfers into account on a cumulative basis. Any such assignment shall be subject: to all of the terms and conditions of this Lease, and the proposed assignee shall assume the obligations of Tenant under this Lease in writing in form satisfactory to Landlord. Consent by Landlord to one assignment, subletting, 'occupation or use by another person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Any assignment or subletting without the prior written consent of Landlord shall be void, shall constitute a material breach of this Lease, and shall, at the option of Landlord, terminate this Lease. Neither this Lease not any interest therein shall be assignable as to the interest of Tenant by operation of law. If Landlord approves such assignment, Tenant shall pay to Landlord any consideration received by Tenant for such assignment. 11.0 DEFAULT AND REMEDIES. 11.1 Default by Tenant. In addition to the defaults described in Section 10.0 hereinabove, the occurrence of any one or more of the following events shall constitute a default: and breach of this Lease by Tenant: (a) the failure to pay any rental or other payment required hereunder to or on behalf of Landlord more than three (3) days after written notice from Landlord to Tenant that Tenant has failed to pay rent when due; (b) the failure to perform any of Tenant's agreements or obligations hereunder (exclusive of a default in the payment of money) where such default shall continue for a period of thirty (30) days after written notice thereof from Landlord to Tenant which notice shall be deemed to be the statutory notice so long as such notice complies with statutory requirements; (c) the vacation or abandonment of the Demised Premises by Tenant; (d) the making by Tenant of a general assignment for the benefit of creditors; (e) the filing by Tenant of a voluntary petition in bankruptcy or the adjudication of Tenant as a bankrupt; (f) the appointment of a receiver to take possession of all or substantially all the assets of Tenant located at the Demised Premises or of Tenant's leasehold interest in the Demised Premises; (g) the filing by any creditor of Tenant of an involuntary petition in bankruptcy which is not dismissed within sixty (60) days after filing; or (h) the attach- rs:u7mo9999%,10 m2WM2. aensivs -8- ment, execution or other judicial seizure of all or substantially all of the assets of Tenant or Tenant's leasehold where such an attachment, execution or seizure is not discharged within sixty (60) days. Any repetitive failure by Tenant to perform its agreements and obligations hereunder, though intermittently cured, shall be deemed an incurable default. Two (2) breaches of the same covenant within a sixty (60) day period, a notice having been given pursuant to (a) or (b) above for the first breach, or three (3) of the same or different breaches at any time during the term of this Lease for which notices pursuant to (a) or (b) above were given for the first two (2) breaches shall conclusively be deemed to be an incurable repetitive failure by Tenant to perform its obligations hereunder. In the event of any such default or breach by Tenant, Landlord may at any time thereafter, without further notice or demand, rectify or cure such default, and any sums expended by Landlord for such purposes shall be paid by Tenant to Landlord upon demand and as additional rental hereunder. In the event of any such default or breach by Tenant, Landlord shall have the right (i) to continue the lease in full force and effect and enforce all of its rights and remedies under this Lease, including the right to recover the rental as it becomes due under this Lease, or (ii) Landlord shall have the right at any time thereafter to elect to terminate the Lease and Tenant's right to possession thereunder. Upon such termination, Landlord shall have the right to recover from Tenant: (a) The worth at the time of award of the unpaid rental which had been earned at the time of termination; (b) The worth at the time of award of the amount by which the unpaid rental which would have been earned after termination until the time of award exceeds the amount of such rental lose that the Tenant proves could have been reasonably avoided; (c) The worth at the time of award of the amount by which the unpaid rental for the balance of the term after the time of award exceeds the amount of such rental loss that the Tenant proves could be reasonably avoided; and (d) Any other amount necessary to compensate the Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under the lease or which in the ordinary course of things would be likely to result therefrom. The "worth at the time of award" of the amounts referred to in subparagraphs (i) and (ii) above shall be computed by allowing interest at three percent (3%) over the prime rate then being charged by Bank of America, N.A. but in no event greater than the maximum rate permitted by law. The worth at the time of award of the amount referred to in subparagraph (iii) above shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%) , but in no event greater than ten percent (10%) . As used herein "rental" shall include the Monthly Rental, other sums payable hereunder which are designated "rental" or "additional rental" and any other sums payable hereunder on a regular basis such as reimbursement for real estate taxes. Such efforts as Landlord may make to mitigate the damages caused by Tenant's breach of this Lease shall not constitute a waiver of Landlord's right to recover damages against Tenant hereunder, nor shall anything herein contained affect Landlord's right to indemnification against Tenant for any liability arising prior to the termination of this Lease for personal injuries or property damage, and Tenant hereby agrees to indemnify and hold Landlord harmless from any such injuries and damages, including all attorney's fees and costs incurred by Landlord in defending any action brought against Landlord for any recovery thereof, and in enforcing the terms and provisions of this indemnification against Tenant. Notwithstanding any of the foregoing, the breach of this Lease by Tenant, or an abandonment of the Demised Premises by Tenant, shall not constitute a termination of this Lease, or of: Tenant's right of possession hereunder, unless and until Landlord elects to do so, and until such time Landlord shall have the right to enforce all of its rights and remedies under this Lease, including the right to recover rent, and all other payments to be made by Tenant hereunder, as they become due. Failure of Landlord to terminate this Lease shall not prevent Landlord from later terminating this Lease or constitute a waiver of Landlord's right to do so. 11.2 No Waiver. Acceptance of rental hereunder shall not be deemed a waiver of any default or a waiver of any of Landlord's remedies. 11.3 Landlord's Default. Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant FS2U76\099999-300mmwv2. oensros —9— to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for performance then Landlord shall not be deemed in default if Landlord commences performance within a (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord's default and Tenant's remedies shall be limited to damages and/or an injunction. 12.0 CONDEMNATION. In the event a condemnation or a transfer in lieu thereof results in a taking of any portion of the Demised Premises, Landlord may, or in the event a condemnation or a transfer in lieu thereof results in a taking of twenty-five percent (25%) or more of the Demised Premises, Tenant may, upon written notice given within thirty (30) days after such taking or transfer in lieu thereof, terminate this Lease. Tenant shall not be entitled to share in any portion of the award and Tenant hereby expressly waives any right or claim to any part thereof. Tenant shall, however, have the right to claim and recover, only from the condemning authority (but not from Landlord) , any amounts necessary to reimburse Tenant for the cost of removing stock and fixtures. If this Lease is not terminated as above provided, Landlord shall use a portion of the condemnation award to restore the Demised Premises. 13.0 MISCELLANEOUS. 13.1 Entry and Inspection. Tenant shall permit Landlord and his agents to enter into and upon the Demised Premises at all reasonable times for the purpose of inspecting the same or for the purpose of maintaining the building in which the Demised Premises are situated, or for the purpose of making repairs, alterations or additions to any other portion of said building, including the erection and maintenance of such scaffolding, canopy, fences and props as may be required, or for the purpose of posting notices of nonliability for alterations, additions or repairs, or for the purpose of placing upon the property in which the Demised Premises are located any usual or ordinary "For Sale" signs or any signs for public safety as determined by Landlord. Landlord shall be permitted to do any of the above without any rebate of rent and without any liability to Tenant for any loss of occupation or quiet enjoyment of the Demised Premises thereby occasioned. Tenant shall permit Landlord, at any time within three (3) months prior to the expiration of this Lease, to place upon the Demised Premises any usual or ordinary "For Lease" signs, and during such three (3) month period Landlord or his agents may, during normal business hours, enter upon said Demised Premises and exhibit same to prospective tenants. 13.2 Jurisdiction and Venue. The parties hereto agree that the State of California is the proper jurisdiction for litigation of any matters relating to this Lease, and service mailed to the address of tenants set forth herein shall be adequate service for such litigation. The parties further agree that Riverside County, California is the proper place for venue as to any such litigation and Tenant agrees to submit to the personal jurisdiction of such court in the event of such litigation. 13.3 Partial Invalidity. If any term, covenant, condition or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereof. 13.4 Successors in ]Interest. The covenants herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. 13.5 No Oral Agreements. This Lease (i) covers in full each and every agreement of every kind or nature whatsoever between the parties hereto concerning this Lease, (ii) supersedes any and all previous negotiations, agreements and understandings, if any, between the parties, oral or written and (iii) merges all preliminary negotiations and agreements of whatsoever kind or nature herein. Tenant acknowledges that no representations or warranties of any kind or nature not specifically set forth herein have been made by Landlord or its agents or representatives. 13.6 Authority. In the event that Tenant is a corporation or a partnership, each individual executing this Lease on behalf of said corporation or said partnership, as the case may be, represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation or partnership, in accordance with a duly adopted resolution of the Board of Directors, if a corporation, or in accordance with the Partnership Agreement, if a partnership, and that this Lease is binding upon said corporation or partnership in accordance with its terms. Tenant represents and warrants to F3E1276\099999-30OW1009932. 0en5195 -1 0- Landlord that the entering into this Lease does not violate any provisions of any other agreement to which Tenant is bound. 13.7 Relationship of Parties. The relationship of the parties hereto is that of Landlord and Tenant, and it is expressly understood and agreed that Landlord does not in any way or .for any purpose become a partner of Tenant in the conduct of Tenant's business or otherwise, or a joint venturer with Tenant, and that the provisions of this Lease and the agreements relating to rent payable hereunder are included solely for the purpose of providing a method whereby rental payments are to be measured and ascertained. 13.8 Nondiscrimination. Tenant herein covenants by and for itself, its heirs, executors, administrators and assigns and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account of race, sex, marital status, color, creed, national origin or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Demised Premises herein leased, nor shall the Tenant itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the Demised Premises. 13.9 Notices. Wherever in this Lease it shall be required or permitted that notice and demand be given or served by either party to this Lease to or on the other, such notice or demand shall be given or served in writing and shall not be deemed to have been duly given or served unless in writing, and personally served or forwarded by certified mail, postage prepaid, addressed, if to Landlord, to the City of Palm springs, P.O. Box 2743, Palm Springs, California, 92263, Attention: City Manager and, if to Tenant, as specified in Section 1.8. Either party may change the address set forth herein by written notice by certified mail to the other. Any notice or demand given by certified mail shall be effective one (1) day subsequent to mailing. 13.10 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Lease. 13.11 Exhibits. The Exhibits and Addenda attached to this Lease are made a part hereof as if fully set forth herein. In the event of a conflict between the terms and provisions of an Addenda and the terms and provisions of this Lease, the terms and provisions of the Addenda shall prevail. IN WITNESS WHEREOF, the parties have duly executed this Lease together with the herein referred to Exhibits which are attached hereto, on the day and year first above written in Palm Springs, California. ATTEST: CIT OF PALM SPRING , nicipal cor oration Byy;La�-LL By: Ci:ty�Clerk city a ger "LANDLORD" REVIEWED AND APPROVED City Attorney F�3 Desert Art Center of the Coachella Valley 550 N. Palm Canynn Dr. By.r�Its: President Presiden t By: I) )�L�Lf ALL' -- Its secretary : "TENANT" FS2\27aO99999.900D2009932. 08115/95 -1 1— Z. EXHIBIT 'A' LEGAL DESCRIPTION OF THE PROPERTY That portion of the Southeast quarter of the Southeast quarter of Section 10, Township 4 South, Range 4 East, San Bernardino Base and Meridian, described as follows: Beginning at a point on the South line of said Section 10, Township 4 South, Range 4 East, San Bernardino Base and Meridian, 30 feet . West of the Southeast corner thereof; thence, South 89 42' West on said South line, 297.40 feet; thence North on the East line of a public highway 550.4 feet; thence North 89 42' East, 296.75 feet to a point distant 30 feet, measured at a right angle, from the East line of said Section 10; thence South 0 2' 30" East and parallel with said East line, 550.4 feet to the point of beginning. Said property is also situated in the City of Palm Springs, and known as Buildings A & B of the former Senior Center, 550 North Palm Canyon Drive. EXHIBIT 'A' TO LEASE r MON EXHIBIT 'B• PLOT PLAN OF THE PROPERTY SHORING THE LOCATION OF DEMISED PREMISES .i,f,t(.;�..f ...p .A�. :(•'I• •�'«�: .', s4+ \ T 1.�� . i �4 :. . f.•'.•• � ' 1,h�x. t.. ..1,..:. {lJ"*,�"'.: 1�" `rkt�•%\iY•.I�'I'.•I�'I� ice•' � I ' •� t ,• 't' ,,,1 •�� �.,•,1 •'.•{. I 1 '.j Pa r .[ ,. 7:�1'I'11`v' �I " 1 Er .i:; '.t.. •ti•l;P' ,��� 'w•Y il' t '• !". 'Ai,i?: I'4`(t!;.r W. 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' . .''•.1 '^.oil �• ,� ,.;. :, r^' SITE PLAN ;1 QQ EXHIBIT 'B' TO LEASE EXHIBIT "C" ESTOPPEL CERTIFICATE Tenant; Desert Art Center, Inc. of Coachella Valley Landlord: CITY OF PALM SPRINGS, a municipal corporation Date of Lease: 10/1/95 Shopping Center: Frances Stevens Demised Premises: Bldg. A E B To; Linda McElroen-Smith The undersigned hereby certifies as follows: I. The undersigned is the tenant ("Tenant') under the above-referenced lease ("Lease") covering the above-referenced premises ("Demised Premises"). 2. The Lease constitutes the entire agreement between landlord under the Lease ("Landlord") and Tenant with respect to the Demised Premises and the Lease has not been modified, changed, altered or amended in any respect except as set forth above. 3. The term of the Lease commenced on 10/1 19 95 , and, including any presently exercised option or renewal term, will expire on mac' �� G Tenant has acceptedT possession of the Demised Premises and is the actual occupant in possession thereof and has not sublet, assigned or hypothecated its leasehold interest:. All improvements to be constructed on the Demised Premises by Landlord have been completed and accepted by Tenant and any tenant construction allowances have been paid in full. 4. As of this date, to the best of Tenant's knowledge, there exists no breach or default, nor state of facts which, with notice, the passage of time, or both, would result in a breach or default on the part of either Tenant or 'Landlord. To the best of Tenant's knowledge, no claim, controversy, dispute, quarrel or disagreement exists between Tenant and Landlord. 5. Tenant is currently obligated to pay Monthly Rent in installments of E 408 per month, and such monthly installments have been paid not more than one month in advance. -r- •ddiLia -- requires Tempt " payr s �••"P-.-�..�e��,�h in--tk4--ameua oaf parent f_X� nd-P.....ta9a--c"f_ —has been paid threugh Lg ,.a the hpgg A. T,...__t' lonawledge RA qthpp gept has been paid in •d. d T t h 1 I F ^ @_ the -Ad is. assqrtinqG n3_or landlord_Tenant has no claim against Landlord For any security or other deposits except S DUU ,which was paid pursuant to the Lease. 6. Tenant has no option or preferential right to lease or occupy additional -,pace within the Property of which the Oemised Premises are a part. Tenant has no option or preferential right to purchase all of any part of the Demised Premises nor any right or interest with respect to the Demised Premises other than is Tenant under the Lease. Tenant has no right to renew or extend the term of the Lease except as set forth In the Lease. 7. Tenant has made no agreements with Landlord or its agent or employees concerning free `ent. partial rent, rebate of rental payments or any other type of rent or other concession except as exoressli set forth in the Lease. EXHIBIT "C" 10 LEASE C/MAS7ERS/276/PS MASTERS/06 1/15/92 8. There has not been filed by or against Tenant a petition in bankruptcy, voluntary or otherwise, any assignment for the benefit of creditors, any petition seeking reorganization or arrangement under the bankruptcy laws of the United States, or, any state thereof, or any other action brought under said bankruptcy laws with respect to Tenant. 9. All insurance which Tenant is required to maintain under the Lease has been obtained by Tenant and is in full force and effect annJJJd all premiums with respect thereto have been paid. Dated this day of 1995 Linda McEI roen(�--Srni th By Its: President -2- EXHIBIT "D" RULES AND REGULATIONS 1. All loading and unloading of goods shall be done only at the times, in the areas and through the entrances reasonably designated for such purposes by Landlord. 2. The delivery or shipping of merchandise, supplies and fixtures to and from the Demised Premises shall be subject to such rules and regulations as in the reasonable judgment of Landlord are necessary for the proper operation of the Demised Premises or of the Property generally. 3. All of Tenant's refuse and rubbish shall be removed to central trash bins located in the Property, at Tenant's sole cost and expense. 4. No radio or television or other similar device audible outside the Demised Premises shall be installed without obtaining in each instance the written consent of Landlord. No aerial shall be erected on the roof or exterior walls of the Demised Premises or on the grounds of the Property without first obtaining in each instance the written consent of Landlord which consent shall not be unreasonably withheld or delayed. Any aerial so installed without such written consent shall be subject: to removal without notice at any time. 5. No loudspeakers, televisions, phonographs, radios or other devices shall be used in a manner so as to be heard or seen outside of the Demised Premises without first obtaining in each instance written consent of Landlord. 6. The outside sidewalks and loading areas immediately adjoining the Demised Premises shall be kept clean and free from dirt and rubbish by Tenant to the reasonable satisfaction of Landlord, and Tenant shall not place or permit any obstructions or merchandise in such areas, except to the extent specifically permitted by the provisions of Tenant's Lease. 7. Tenant shall not burn any trash or garbage of any kind in or about the Demised Premises or the Property generally. e. Tenant will not allow animals, except seeing-eye dogs, in, about or upon the Demised Premises. 9. Tenant shall not use, and shall not allow anyone else to use, the Demised Premises as a habitation. Such prohibition shall include, without limitation, sleeping, eating or bathing. 10. Tenant shall not place any rubbish or other matter outside any building within the Property, except in such containers as are authorized from time to time by Landlord. 11. Tenant shall keep all window displays in a clean and orderly fashion. If merchandise is to be shown in the window displays, such merchandise shall be changed at least every other month. Landlord shall have the right to require the removal or change of any window display it finds, in its sole and absolute judgment, unattractive or objectionable. EXHIBIT "D" TO LEASE Page 1 of 2 Pages F52\276N099999J00012009932. W15195 LEASE By and Between THE CITY OF PALM SPRINGS and Desert Art Center, Inc. of Coachella Valley [Multi T'errant Building[Single Year Lease] F82276\09999%,10M00MZ- 0e115195 TABLE OF CONTENTS 1.0 LEASE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.0 TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 Terms of Lease . . . . . . . . . . . . . . . . . . . . . . 2 2.2 Time . . . . . . . . . . . 2 2.3 Force Ma jeure . . . . . . . . . . . . 2 2.4 Holding Over . . . . . . . . . . . . . . . . . . . . . . . . 2 3.0 RENTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3.1 Monthly Rental . . . . . . . . . . . . . . . . . . . . . . 2 3.2 Additional Rental . . . . . . . . . . . . . . . . . . . . . . 2 3.3 Real Estate Taxes . . . . . . . . . . . . . . . . . . . . . . 2 3.4 Personal Property Taxes . . . . . . . . . . . . . . . . . . . 2 3.5 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3.6 Late Payment . . . . . . . . . . . . . . . . . . . . . . . . 2 3.7 Interest . . . . . . . . . . . . . . . . . . . . . . . 3 3.8 Security Deposit . . . . . . . . . . . . . . . . . . . . . . 3 4.0 USE OF THE PREMISES . . . . . . . . . . . . . . . . . . . . . . . . 3 4.1 Permitted Use . . . . . . . . . . . . . . . . . . . . . . . . 3 4.2 Prohibited Uses . . . . . . . . . . . . . . . . . . . . . . . 3 4.3 Compliance With Laws . . . . . . . . . . . . . . . . . . . . 3 4.4 Signs . . . . . . . . . . . . . . . . . . . . . . . . 4 4.5 Hours of Business . . . . . . . . . . . . . . . . . . . . . . 4 4.6 Charitable Lease . . . . . . . . . . . . . . . . . . . . 4 4.7 Rules and Regulations . . . . . . . . . . . . . . . 4 4.8 Downtown Business Improvement District . . . . . . . . . . . 4 5.0 PARKING AND COMMON AREAS . . . . . . . . . . . . . . . . . . . . . 4 5.1 Definitions . . . . . . . . . . . . . . . . . . . . . . . 4 5.2 Maintenance of Common Areas . . . . . . . . . . . . . . . 5 6.0 ALTERATIONS AND REPAIRS . . . . . . . . . . . . . . . . . . . . . . 5 6.1 Alterations and Fixtures . . . . . . . . . . . . . . . . . . 5 6.2 Maintenance and Repair . . . . . . . . . . . . . . . . . . . 5 6.3 Free From Liens . . . . . . . . . . . . . . . . . . . . . . . 5 6.4 Reservation of Right to Modify Property . . . . . . . . . . . 6 7.0 INSURANCE AND INDEMNIFICATION . . . . . . . . . . . . . . . 6 7.1 Insurance Provided by Landlord . . . . . . . . . . . . . . . 6 7.2 Insurance Provided by Tenant . . . . . . . . . . . . . . . . 6 7.3 Indemnification of Landlord . . . . . . . . . . . . . . . . . 7 8.0 ABANDONMENT AND SURRENDER . . . . . . . . . . . . . . . . . . . . . 8 8.1 Abandonment . . . . . . . . . . . . . . . . . . . . . . . . 8 8.2 Surrender of Lease . . . . . . . . . . . . . . . . . . . . . 8 9.0 DAMAGE AND DESTRUCTION OF PREMISES . . . . . . . . . . . . . . . . 8 10.0 ASSIGNMENT AND SUBLETTING. . . . . . . . . . . . . . . . . . . . . 8 11.0 DEFAULT AND REMEDIES . . . . . . . . . . . . . . . . . . . . . . . 8 11.1 Default by Tenant . . . . . . . . . . . . . . . . . . . . . . 8 11.2 No Waiver . . . . . . . . . . . . . . . . . . . . . . 9 11.3 Landlord's Default . . . . . . . . . . . . . . . . . . . . . 9 12.0 CONDEMNATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 13.0 MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . 10 13.1 Entry and Inspection . . . . . . . . . . . . . . . . . . . . 10 13.2 Jurisdiction and Venue . . . . . . . . . . . . . . . . . . . 10 13.3 Partial Invalidity . . . . . . . . . . . . . . . . . . . . . 10 13.4 Successors in Interest . . . . . . . . . . . . . . . . . . . 10 13.5 No Oral Agreements . . . . . . . . . . . . . . . . . . . . . 10 13.6 Authority . . . . . . . . . . . . . . . . . . . . . . . . 10 13.7 Relationship of Parties . . . . . . . . . . . . . . . . . . . 11 13.8 Nondiscrimination . . . . . . . . . . . . . . . . . . . . . . 11 13.9 Notices . . . . . . . . . . . . 11 13.10 Waiver . . . . . . . . . . . . . . . . . . it 13.11 Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Exhibit "A" - Legal Description of the Property Exhibit "B" - Plot Plan of the Property Showing Location of Demised Premises Exhibit "C" - Intentionally Deleted Exhibit "D" - Rules and Regulations FS2\276\099999-3000\2009932. 08/15/96ii- RUG. 5. 1997 2:52PM P 1 1=P CAN INSURANCE� . , ��*+'��y,y.} #^►1 ��,y4ull, ,fr(�l�,,p P NO 909 784 0661 MMi.' PRODUOEA fTHIS CERTIFICATE IS ISSUED A8 A MATTER OF INFORMATION ONLY AND CONFERS RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND, VULCAN EXCESS AND SURPLUS TEND ORALTER THE COVEITAGEAFFORDED BY THE POLICIES BELOW P.O. Box , 58 CACOMPANIES AFFORDING COVERAGE Riverside, CA 92516-2158 Phone (909) 784-0661 MPANYALicense #0724092 TTER S�OTTSD�LE.__IlY5Ut2&NCE_C�,. ..._ .. . _— -. COMPANY — INALIMM LETTER DESERT ART CENTER coMrArvY f� LETTER C P. 0. BOA 2813 COMPANY D U PALM SPRINGS CA 92263 LETTER -, t . .. COMPANY E ET ER IN THIS IS TO CERTIFY THAT THE POLICIES OFINSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR ITH. Y—"i Ili lir HE POLICY PERIOD INDICATED,NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT Olt OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN.THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED ON PAID CLAIMS, TYPEOFINSIRANCE PONGYNUMEFA LKOYMMET Sel OLIO(MEM PATION L p D 4o/YY)) NMRe RED PAL LIABILITY GENERALAODREGATE S1_,000,Q00_, IX�M,, COMMERNAL GENERAL LIABILITY CLS 445444 03/01/97 03/O1/98 PRODUCTB-COMP/OPA0G. 1 0Q Q�0 ,7'I: CLAIMS MADE OCCUR, pERSONAL'Z D 1.INJURY 31 T��O r��O OWNER'B A CONTRACTOR'S TROT. -� EACHoccuRRENCE _s1, 000 00 FIRE DAMAGE Al i S 100,000_ MED EXPENSE(Anyone pl S AOTMILE LIABILITY COMBINED SINGLE y ANYAUTO LIMIT ALL OWNED AUTOS '- EODILYINJURY S SCHEDULED AUTOS (i poll HIRED AUTOS BODILY INJURY NON OWNED AUTOS IFer accld.m) GARAGELIASIUTY PROPERTY - ¢ DAMAGE EXCESS LIABILITY Fi OCCURRENCE _$ UMBRELLA POW AGGREGATE S OTHER THAN UMBRELLA FORM 'Illall. ^I',,i,ri" ,"�''JIISII84111: k"KR'S LOPERSATION STATUTORYLIMITs I' fI I' '�'Ii�lBl 9,1'lllll AND CHACCIDENT S DISEASE POLICY LIMIT $ EMPLOYERS' LIABILITY DISEASF�EACH EMPLOYEE S OTHER DESCRIPTION OF OPERATIONS/LBCATIONS/YEIIICt, S/SPECUL ITEMS CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED. THIS CERTIFICATE VOIDS & SUPERCEDES PREVIOUS CERTIFICATE ISSUED 03/04/97 . it PMAIL ULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE IIRATION DATE THEREOF,THE ISSUING COMPANY WILL 110 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE T CITY OF PALM SPRINGS 401 S. PAV I LL I ON WAY A nEB RE sB RAnrE PALM SPRINGS CA 92262` � ll I , BI I , 1 LII L,