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PEL-AIRE PARTNERS - 1981-11-16
1411111 � t RE 11c FOR CITY COUNC AC i ION,� � Date Nov 9, 1982 i� Submitted to: Honorable Mayor and City Council Submitted by: Charles W. Thompson, City Admi;_s + �'By CITY CC)UI-ICIL Ax- Prepared by. Earle W. Robitaille, Chief of Poli e ivy' SubjeJt: rental Fees, Aero Bureau Statement of Issue, recommendation,Ana!ysis, Funding Source,Alternative Actions,Attachments: STATEMENT Or^ ISSUE: The City currently leases an aircraft hangar from Pel-Aire Partners at John Wayne Airport for operation of the Police Aero Burew-�. The currant lease wi'l expire 30 November 1982 and additional monies are necessary to continued open-i-on and related costs. RECOMMENDATION: Approve the allocation of $44,000 freer the Contingency Fund for the continued rental of the present location for an additional six months, and appzbve the attached agreement. ANALYSIS: It is necessary for the continued efficient operation of the Police Aero Bureau that there exist a proper hangar and n ai.nten-nce facility. There is at present no viable alternati-ve site available to fill this need. The continued operation from the present site is most desirable until such time as a permanent Helicopter Operations Base can be constructed within the city limits. These ft;.-ids reflect an increase in rental fees for the existing site, as well as past and prorated utility costs. t ALTERNATIVE, ACTIONS: Do not approve the appropriation of ironies to fund the operation. Dcj not continue service from the present location. FUNDING SOURCE: Continggency Fund. ATTACHMEN''T: (1) Amendment to Lease Agreement. LWR:JTF:gsd LIM r t M0 a/a1 will as wry OF U9 TUNG ' BE&CH } INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Charles W. Thompson From B. Arguello City Administrator Chief of Administrative Services Subject Heliport Rental Date November 23, 1982 FIR # 83-25 At the request of the Police Department, this report is submittet' with the request for continued heliport rental appropriation. Should the City Council desire to grant this request . there are funds available in the Contingency Fund. If approved, this appropriation would reduce the unappropriated Contingency Fund balance to $137,860. F. B. Arguell Chief of Administrative Services FBA/DTV/cg j y f' CITY Or HUNTINGTON BEACH FINANCIAL IMPACT REPORT Project Name e li-pox.t Rental _ Description The City currently rents hangar space at the ..'ohn Wayne Airport. Only half a year's rental was budgeted; therefore, space is needed for the remainder of the fi,cai year. I . DIRECT PROJECT COSTS 1 .1 One-Time Costs CaF3 urn. , acr r- Acquisition Construction ties, Equi ment. Other Total Cost $ 44,000 $ 44,000 1 .2 Recurring Annual Costs Additional Materials & utside Pa roll Personnel Supplies4 Services I Revenues Total Cost 1 .3 Replacement/Renewal Costs The City has recently purchased land to be used to develop a heliport site. Therefore, when completed, this development will replace the need to renew this lease. 2. INDIRECT COSTS _�N/A Financial Impact Report Page 2 3. WON-DOLLAR COSTS N/A _--- -- - —------- -------------- --- 4. BENEFITS TO BE DERIVED FROM THE PROJECT Continued use of a facility to base the City's aero program. 5. PROJECT USAGE Service and maintain the City's helicopters. A 6. EXPENDITURE TIMING $Z,031 the first of each month beginning December 1982 and ending June 1 , _ 1983. 7. COST OF NOT IMPLEMENTING THE PROJECT An alternate,_facility would be needed to store the City's helicopters. Ji R r 0 2000 MAIN STREET HUNTIPGTON BEACH, CALI20RNIA 92648 INSURANCE & BENEFITS DIVISION S.I.C.034E CERTIFICATE OF SELF INSURANCE This is to certify that the City of Huntington Beach is insured for general publ-*% liability by the: Twin Cities c/o Coast Insurance 11611 San Vincente L.A. , Ca. Poi . #56ECS SNO107 with limits equal to or in excess of $1,000,000. The City has a self-insured re- tention of $100,000 per occurence. All coverages are subject to change without notice. Su;table cash reserves are maintained to afford coverage for the City's anticipated uninsured losses. The City will furnish you with ten (10) days written notice of any coverage cancellations. i ATTEST: APPROVED AS TO FORM: i ALICIA M, WENTWORTH City Clerk. Ci ty Att rney BY: Deputy 8/17/84 INITIATING DEPARTMENT: i Insurance & Benefits Manager This form provided in conjunction with the lease of TtE HELIPORT located at 19300 Ike Jong Rd. Santa Ana, Ca. Beginning March 17, 1 84 and ending Nov. 15, 1984. Yj Address all inquiries regarding City insurance coverage and limits to the Insurance & Benefits Manager. All c aims shall bp filed with the City Clerk, 2000 Main Street, Huntington Beach, Ca. 92648. „ .,.r. .,�., _ _.. • +.�., ,.. -,,.: t�o a"� ,.. ..six �; _ .:.,, _ r,•mow,:: ..�yrisr y...,�zxt+++n e'.r• 31tr '>x+ ' tell .... ., ... AM � ��J� T FOR UT'Y COa.1�f�� ACC 1A��,�, I Date March 13, 1984 Submitted to: Honorable Mayor and City Council Submitted by: 'Charles W. Thompson, City Administrator PrLpared by: Earle W. Robitaiile, C,, of of Police Subject: Lease for Heliport Fac4.lity at Johns i$rport 19� " �Xyr _ Statement of issue, Recommendation,Analysis, Funding Source,Alternati Ions �c ments: ISSUE: Whether to continue to lease hangar and shop facilitie 4t John Wayn- irport for the police helicopter operations. RECOMt1END.ATION: Approve second amendment to heliport lease and authorize its execution. ANALYSIS: The city has for several years leased hangar and shop facilities at John Wayne Airport for its police helicopter operations. The existing lease with Pel-Aire Partners expired on November 30, 1983. The attached second amendment continues the lease for one year to November 30, 1984. The rent is increased from $7,031 to $7,962 per month. The property has now been substantially improved and remr_deled by the landlord. In addition, the � city has the right (but not the obligation) to purchase fuel at fixed rates during the term of the lease. It is necessary for the continued efficient operation of the Police Aero Bureau that there exist a proper hangar and maintenance facility. There is at present no viable alternative site available to fill this need. The continued operation from the present site is most desirable until such time as a permanent helicopter operations base can be constructed within the city limits.. FUNDING SOURCE: Police Department budget. ALTE1UNATIVE ACTION: Cancel lease. ATTACHMENT: Second Amendment to Standard Industrial Sublease Agreement with. Pel-Aire Partners. r PIO 4/81 REQUAr FOR CITY COUN& ACTION 7'� �*V �VW Date November 13, 1981 Submitted to: Honorable Mayor and City Cotuzcil Submitted by: Charles W. Thompson, City Administrator Preparsd by: Earle W. Robitaille, Chief of Police Subject: RENEGOTIATED LEASE ON ORANGE COUNTI JOIN WXYNE AIRPORT SITE FOR HELICOPTER OPERATION Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: — STATEMENT OF ISSUE: The lease previously negotiated. by the former owners of the building located at 19300 Ike Jones Road (c:n the grounds of the Orange County John Wayne .'airport) and the City of Huntington Beach recently expired. In order to continue operations at the Orange County Airport with the new owners, it was required that we renegotiate a lease with the present owners. RECUNt�ENDATION: Approve the renegotiated lease for a period of one year, with a 90-day cancellation clause, to lease the entire hangar. Further, that the City of Huntington Beach reserve the right to sub-lease any portion of the property to offset costs incurred. The lease amount shall be $7,000.00 per month, and two tie-down locations will be included. The new rate is to become effective no earlier than. November 5th, 1991. The landlord will assign the existing sub-leases to the City. ANALYSIS: The City of Huntington Beach (Police Department Aero Bureau) has been served with an eviction notice by the T.ew owners of the building (Pel-M-re Partners; c/o Paul Hegness). This notice was effective November 7, 1981.. Negotiations between the City of Huntington Beach and the new owners have been concluded, allowing for an additional ore-year lease at the new rate. This new lease will allow the City time to purchase and develop a local heliport site. MMING SOURCE: Existing Aero Bureau accounts or City Contingency Account No. 101593, if Aero Bureau funds are exhausted. ALTERNATIVE ACTIONS: Ac ~-t eviction from the Orange County site and atteir?t to find an to ].ovation for, our operation. Pzo vat. ...�-' ®J CRTY OF H PATI G® 14 BEACH v INTER-DEPARTMENT COMMUNICA"i i,'JN HUNTINGTON BEACH To Charles W. Thompson From F. 8. Arguello City Administrator Chief or Administrative Services Subject Requested Appropriation Revision Date November 13, 1981 To Accommodate ine Renegotiated Lease Hangar Agreement At The John Wayne Airport FIR # 81-83 In response to the request of the Police Department, a Financial Impact Report has been prepared and submitted relative to the additional funding necessary to provide for the following: 1 . Increase of the monthly rental fee from $2,900 to $7,000 on 11/6/81 . 2. Extension of the revised agreement up through 11/5/82. I A revision to the presently adopted appropriation account (#327381)- in the amount of $60,083 - will suffice to adequately fund this project through the duration of i the contract. Adequate monies are available in the Contingency Fund (#101593) for this purpose. Should the City Council approve this request, the balance in the account will be reduced to $60,195. F. B. A guello Chief of Administrative Services a FBA/AR/cg 1s j REQUEST FOR CITY COU& ACTION -2- November 13, 1981 r � ATTACHMENTS: (I) Eviction Noti,cc (dated 10/7/81). (2) Notice of Termination of Tenancy (dated 10/7/81). (3) Letter from Robert Hahnau (dated 10/l/81). r REQ I T FOR CITY C"OU A ACTION/ 4?0 7'0 81 Date November l0, 19a�`�� Submitted to: Honorable Mayor and City Council Submitted by: Charles IV. Thompson, City Administrator Y Prepared by: Earle W. Robitaille, Chief of Police �VNII, r---" Subject: M- 1EGOTIATED LASE ON ORANGE COUNTY JOHN lNA FOR HELICOPTER OPERATION Statement of Issue, Recommendation,Analysis, Funding Source, Alternative A Lions,.Attachments: STATEMENT OF ISSUE: The lease previously negotiated by the former others of the buildi g located at 19300 Ike Jones Road (on the ground,of the Orange Coun John Wayne Airnort) and the City of Htmtingt n Beach recently expir d. In order to continue operations at the Orr ge County Airport with th new owners, it was required that we renegoti e a lease with the present Owners. RECONVIENDATION: Approve the renegotiated lease for period of one year, with a 90-day cancellation clause to lease the tire hangar. Further, tha the City of' Huntington Beach reserve the ght to sub-lease any portion the property to offset costs incur e the lease amount to be $7,0' J.00 per month, retroactive to the tei i ation of the former lease negotiated on April 1, 1981. ANALYSIS: The City of Huntington . acl (Police Department Aero Burcau) has been served with an evictlo natice by the new owners of the building (Pel-Aire Partners; c/ Paul Hegness). This notice was effective November 7, 1981. Negotiations betwee the City of Huntington Beach and the new owners have been conclude'; allowing for an additional one-year lease at the new rate. This new lease will allow the City time to purchase and develop a local heliport site. FUNDING SOURCE: Existing Aero Bureau accounts or the City's Contingency Fund, if Acro Bureau funds are exhausted. AL'TERNATIVF ACTIONS Accept eviction from the Orange County site and attempt to find an al- ternate location for our operation. P10 4/81 y f REQUEST FOR CITY COUS ACTION -2- VW November 10, 1981 ATTACH%1ENTS: L•+ (1) Eviction Notice (dated 10/7/81). (2) Notice of Termination of Tenancy (dated 10/7/81). (3) Letter from Robert Haluiau (dated 10/l/81). I I I r. i October 1, 19811 20971 CaVe Cefe.s-te H Tone, CaE:i.6o&nia 92630 f Huntington Beach PoUce Dept. 2000 Main Stee-t Hunt,Zng,ton Beach Ca.U6on.n,i.a, 92648 Re: P.O. 29878 Att: Lt. Robeht MoAA.ison Dean Bob, The 6ac•i,f..i,ty atJohn IUayne A.uipoU has been sufd as 6 Oc.tobeh 1, 1981 .to Pet<A�ne Pahtnens, C/O Pam Hegness, 5000 Campus Dki.ve, Newport Beach, Cati.6wmia. 92660. 1 Have .in6osuned Paul Hegnms o6 your dmi.ne to speak with h.i,m and tie w.iU be .in -touch with you within .the next hew dap. P.fease make aU 6utute tentaf payment .to Pef.-Abbe PwUnetz. Thank you bon the pfeasunabCe n.etationship we have enjoyed oven •the yea&& with your e26 and •the Huntington Beach Po Uce Dept. S Ficen 'c 24f o butt F. Hahnau ee; M. Paut Hegnes3 s LAW OFFICES OF GOOD, `�TILD?fAN, 7T1;GNi,,ss 8: WAT.LEY JOSEP. E.DUEIOIS S000 CAMPUS DRIVE ROY M "L)OD WIIl1AM R 11AR7 VLN'I'0HT 111KACII,CA-.11'OHVIA 02000 OF COUNSEL PAUL C.1+EG NESS GARY R"KING (7i4)955-1100 LOUIS A.CAPPADONA 1011ER LI LJESTROM 1 GARY V SPENCER �7 7-1CMA5 E.WAL LEY October / , 1981 .PAUL W.WILDMAN TO- The City of Huntington Beach Dear Lt. Morr son: Attached please find a formal Notice of Termination of Tenancy for that portion of the premises you are presently occupying at 19300 Ike Jones Road. As you probably know b;, now, the prior owners have sold these premises ':o Pel-Aire Partners, a partnership, of which I am a general partner. While the notice is legally required to terminate a land- lord/tenant relationship that exists on a month-to-month basis, as your relationship presently exists, and while it does seem somewhat final, I am nevertheless agreeable to sitting down with you and attempting to negotiate a new lease agreement with you in the event you are desirous of remaining in the premises. Needless to say, time is somewhat of the essence due to the fact that at the and of the 'thirty day period, if we have not reached an agreement, it will be necessary for you to vacate I:he premi s(-s . Accordingly, I %•could appreciate you contacting me at your earliest convenience in the event you are interested in formalizing the continuation of your tenancy. If you conclude that you do not wish to continue your tenancy, I will thank you in advance for your prompt vacation of the premises not later than tine date recited i.n the Notice of Termination of Tenancy. The odd date of November 6, 1981, is necessitated due to statutory provisions That ricluire we give you thirty days notice before bringing eviction proceedings. In the event you lotend to clove out later than November 1, but prior to November 6, it will be necessary to pro-rate your rent for that period of time. Very truly yours, r %�1 112, GOOD, IILDMAN, 11EGNESS & WALLEY NbT Paul C. 11egp PCII:l j nj, OFFICE C F CN1f r t 4: CITY OF HUNTINGTON BEACH FINANCIAL iMDACT REPORT Project Name Renegotiated Lease on Airport Site for Helicopter Operation Description Appropriation revision to accommodate lease hangar agreement at _the_John Wayne Airport through 11/5/82. 1 . DIRECT PROJECT COSTS 1 .1 One-Time Costs Land urn., aci i- Acquisition Construction ties, Equipment. Other Total Cost 60,083 60,083 1 .2 Recurring Annual Costs Additional Materials & Outside Fa roll Personnel Supplies Services Revenues Total Cost 1 .3 Replacement/Renewal Costs Unavailable at this_�uncture._Approval of this lease should allow a� decuate time for the City to_methodically scrutinize other viable alternatives such as purchasing and developing a local heliport site. 2. INDIRECT COSTS Loss of potential for generating interest on these funds, Financial Impact Repor Page 2 ' 3. NON-DOLLAR COSTS N/A ---- --- - ------- ----- ----- - 4. BENEFITS TO BE DERIVED FROM THE PROJECT City will be allowed additional time to _consider other avenues of pursuit, while maintaining the integrity of the aero program. 5. PROJECT USAGE Daily. 6. EXPENDITURE TIMING Subseguent to City Council approval . 7. COST OF NOT IMPLEMENTING THE PROJECT City would have the option of either terminating the aero program in the immediate future, or fund its continued operation through transfers of unencumbered appro- priated accounts from within other Police Dep�. programs. i NOTICE OF TFRMTNA'PION OF TFNANCY The City of Huntington Beach TO: ATTENTION: Lt. Robert Morrison. Aero Bureau Commander NOTICE IS HEREBY G1V}:N that your tenancy at will of the premises located at 19300 Ike Jones Road, Santa Ana, California, is terminated as of thirty (30 days after service on you of this notice in accordance with the provisions of. California Code of Civil Procedure Section 1162, and you are required to deliver up possession of said premises to the undersigned, the general n�rtner, . on or before the c!xpi.ration of sa-:d thirty (30) day period . This not-.ire is given pursuant to t_he pcovi sions of Section 789/1946 of the California Civil Code for the purpose of terminating your tenancy of :.-,aid premises on November 6, 1981. DATED: October 7, 1981 / 7 I ` L• ' �t 1 C. �ncls, General PlrL r 4 Rpm,VEO v_ 00 _ �- 8 1r N OFFICE OF C p HIEF�V i D. �N CITY OF HUNTINGTON BEACH COUNCIL - ADMINISTRATOR COMMUNICATION CA 81- 31 HUNTINGTON 6b1CH To Honorable Mayor and From Charles W. Thompson, City Council Members City Administrator Subject LEASE AT JOHN WAYNE AIRPORT Dat. November 12, 1981 The lease agreement is being prepared by the City Attorney and may not be available for Council review until Monday, November 16, 1981. If it is available sooner, we will make a special delivery of the document for your review. CWT:pj s A , MARTIN & FA * Telex: 674-671 BMFAVIATIO LSA A1d Y AVIANft N INSURANCE SERVICES, INC. 3200 Wilshire Boulevard• Los Angeles, California 90010 AIA C-trtificate No. 61 (213)386-8120 This is to certify that the following policy(;), subject to the terms, conditions, limitations and endorsements contol AdfgIArlgPN�y�,during their effecti,,e period, have been Issued by the compony(s) Indicated below. In the event of material change or conce17aRb gf said policy(s), the company will endeovor to notify the certificate holder, but failure to do so shall Impose no liability or obligation of any kind upon the undersigned or the company(s) Involved. CERTIFICATISSUED TO . City r,f. Huntington Beach AVIA i I N Insurance & Benefits Office 2000 Maii Street CERTIFICATE Huntington Beach, CA. 92648 Attn: Jack OF 1 NAMED INSURAN c i INSURED _ Associated Helicopter Services, Inc. ti 3501 Lakewood Boulevard sY t f©AYLY, ARTIN 6 FAY Long Beach, CA. 90808 AVIATION INSURANCE SERVICES.INC TYPE OF POLICY III"sitRPAOLICYrNOPANY _ POLICY PERIOD LIMITS OF LIABILITY A AIRCRAFT LIABILITY BODILY INJURY PROPERTY DAMAGE (1) Excluding Each Person G Each Occurrence$ Passenger Houston Casualty Co. 03/26/86 Each Occurrence S to (2) Passenger 86/100446 03/26/87 Each Person $ LiabddY Each Occurrence S (3) Single brnil?ncluding Each Occurrence S 10,000,000.00 Pass:ngers 8 AIRPORT Each Person S Each Accident S LIABILITY Each Occurrence $ Aggregale S SINGLE LIMIT Each Occurrence $ C HANGARKEEPERS Each Aircraft S Each Occurrence LEGAL LIABILITY Deductible 5 D PRODUCTS Ench Person S Each Accident S LIABILITY Each Occurrence S Aggregate $ SINGLE LIMIT Each Occurrence $ E HULL COVERAGE Oeducubles All Risk Ground 8 Flight ❑ In Motion S Nor in Motion S Ground Only ❑ YEAR MAKE 8 MODEL AMOUN1 INSURED REG. NO. LIEN AMOUNT AND BREACH OF WARRANTY All Aircraft OT:nied by and/or Under Long Term Written Not Applicable sow Lease to the Named Insured which are Scheduled in AND LOSS PAYEE policy no. 86/100446 t rut� • Not Applicable ADDITIONAL AGREEMENTS page 1. of 2 pages �r city At,`Larna APPLICABLE ONLY WHEN COMPLETED BY INSERTION OF THE NUMBER OF DAYS: In the event of material change or cancelation of said policy(s),the company(s)agree to give 10 (Ten) days v�ritten notice to the cerfificate holder. IF CANCELLED SY THE COMPAP1hD/rb 03726/86 Page: 2 of 2 Pages Certificate No: 61 It is hereby understood and agreed that the following are included as Additional Insureds City of Huntington Beach Insurance & Benefits Ofice 2000 Main Street Huntington Beach, CA. 92648 But only with respect to the operation of the aircraft by the Named Insured This endorsement does not provide coverage for the Additional Insured with repect to claim arising out of their Legal Liability as manufactuers, repairers, suppliers or servicing agents and shall not operate to prejudice Underwriters' right of recourse against the Additional Insured as manufactuers, repairers, suppliers or servic:;_rg agents, where such rights of recourse would have existed had this endorsemen-c not been effected under this policy. f The inclusion of more than one Insured under the policy in no event shall serve to increase the ccmpany's Limit of Liability beyond the Limits of Liability applying if the policy had been issued to one insured. r ` I � r Mgrsh THIS CERTIFICATE SUPERSEDES AND REPLACES CERTIFICATE NO. 12 ISSUED 1-31-86. CONFIRMATION OF COVERAGE TO: DATE ISSUED: 3-24-86 City of Huntington Beach 2000 Main Street CERTIFICATE NO.: 15 Office of the City Clerk Huntington Beach, CA 92648 ATTN: Alicia Wentworth City Clerk This is to confirm to the above addressee that the policy(ies) as generally described below, subject to all the actual T terms and conditions thereof, and issued to the Insured, is (are) in effect as of this date. Insured: HUGHES AIRCRAFT COMPANY Effective Date: 02-01-86 A DELA14ARE CORPORATION Address: P.O. BOX 45066 Expiration Date: 02-01-87 LOS ANGELES, CALIFORNIA 90045-0066 Coverage: AIRCRAFT LIABILITY, AIRPORT PREMISES LIABILITY, INCLUDING HANGARKEEPERS, PRODUCTS & GROUNDING LIABILITY Amount of Insurance/Limit of Liability: $10,000,000. EACH OCCURRENCE, BODILY INJURY AND PROPERTY DAMAGE Insurer(s) Policy Number(s) United Sates Aviation Underwriters (25%) SIHL1-3840 (United States Aviation Underwriters) Lloyd's London & Companies (60%) X02053 7 . (C.T. Bowring) National Union Fire Insurance Company (10%) AP146-9599 � (Southeastern Aviation (Calif) Ins. Svc.) By., Deputy City Att orn8Y Fireman's Fund Insurance Company ( 5%) 97MPP-2002 (Associated Aviation Underwriters) (Each percentage being a quota share of 100% of the Limit(s) shown) AIRCRAFT: not applicable iUnderwriters have made provision for thirty (30) day notice to you in the event of cancellation of the above described policies for non-payment of premium. n Authorized Representative P.O. Box 75055, Los Angeles, CA 90075 ® Telephone: 1213) 380-1600 o Telex 67-4356 8 4 Dais cenn CONFIRV.ATION OF CGVERAGE CONT'D. PAGE: I INSURED: Hughes Aircraft Company CERTIF' TE NO• 15 IT IS AGREED THAT: 1. The following shall be included as an additional insured: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION OF THE STATE OF CALIFORNIA but only for damages arising out of aircraft operations of the Named Insured on property owned by the City of Huntington Beach 2. The Company's maximum limits of liability as set forth in the Declarations, applicable to the City of Huntington Beach as Additional Insured is amended to read: Limits of Liability $10,000,000.00 uthorized Representative P.O.Box 75055, Lot Angeles, CA 90075 0 'Telephone: (213) 360-1600 o Telex 67-43<: i3�S. SE:;OND AMENDMENT TO STANDARD INDUSTRIAL SUBLEASE AGREEMENT BY AND BETWEEN PEL-HIRE PARTNERS A CALIFORNIA GENERAL PARTNERSHIP AND THE CITY OF HUNTINGTON BEACH A MUNICIPAL CORPORATION FOR HANGAR SPACE AT JOHN WAYNE AIRPORT THIS AMENDMENT to Standard Industrial Sublease Agreement is entered into this __1 A day of March, 1984, in consideration of the following facts and circumstances. 1 . The parties hereto, Pel-Aire, as Sublessor, and the City of Huntington Beach, as Sublessee, have previously entered into a Sublease Agreement dated November 16, 1981 for a certain portion of those premises located at 19300 Ike Jones Road as more particularly depicted in Exhibit A to said Sublease Agreement. On November 3, 1982, the parties amended said Sublease Agreement to extend the term until November 30, 1983, unless sooner terminated pursuant to the terms of the Sublease Agreement, or any Amendment thereto, including that Amendment. 2. The term of the Sublease Agreement dated November 16, 1981 was for a period of one year commencing on December 1, 1981 and ending on November 30, 1982. The Amendment to the Sublease i extendea the term of the lease for an additional one-year period from December 1 , 1982 until November 30, 1983. 3. The parties hereto, in consideration of extending the existing Sublease Agreement, and in consideration of other changes intended and desired to be made to the Sublea.j Agreement, by them, mutually, as expressly set forth herein, intend by this Amendment, to modify the terms and conditions of v the original Sublease Agreement dated November 16, 1981 , only as k� expressly set forth hereinafter. - 1 - NOW, THEREFORE, in consideration of the foregoing, and the mutual promises, covenants and agreements herein contained as well as other consideration, the parties hereto agree to modify the afore-referenced Sublcase Agreement dated November 16, 1981, and the amendment thereto dated November 2, 1982, as follows: 1 . The term of the Sublease is hereby extended for an additional one-year period from December 1 , 1983 until November 30, 1984, unless sooner terminated pursuant to the terms of the Sublease Agreement, or any amendment thereto, including this Amendment. 2. The premises described in Exhibit A to the original Lease Agreement dated November 16, 198i , and Exhibit A itself are hereby agreed to be modified as depicted on Exhibit A hereto, which replaces in entirety Exhibit A to the Agreement dated November 16, 1981 . 3. The rent to be paid by Sublessee to Sublessor is hereby increased from Seven Thousand Thirty-One Dollars ($7,031 ) per month, a - recited in the Amendment dated November 30, 1982, to Seven Thousand Nine Hundred Sixty-Two Dollars ($7, 962) per month, payable in equal monthly installments, in advance, on the first day of each month of the term of this extension as above set forth. Sublessee has previously paid to Fublessor the sum of Twelve Thousand Seven Hundred Eighty-Four Dollars ($12,784) which has been applied, Six Thousand Three Hundred Ninety-Two Dollars v ($6, 392) as rent for the month of December 1981 and the balance 1. of Six Thousand Three Hundred Ninety-Two Dollars ($6,392) held by Sublessor as last month's rent for the term of the lease. 2 - . Last month's rent of Six Thousand Three Hundred Ninety-Two Dollars ($6, 392) was, upon execution of the amendment dated November 3, 1982, augmented by the additional sum of Six Hundred Thirty-Nine Dollars ($639) , which combined total of Seven Thousand Thirty.-One Dollars ($7, 031 ) was retained by Sublessor as rent fo:� the last month of the term set forth in the Amendment dated November 3, 1982. Last month's rent shall of Seven Thousand Thirty-one Dollars ($7, 031 ) , shall continue to be retained by Sublessor as a portion of the rent for the last month of the term of this extension. Sublessor shall pay the balance of last month's rent on the first day of the last month. 4. Paragraph 3 set forth in the Amendment to the Sublease dated November 3, 1982 is hereby eliminated in its entirety. Sublessee shall no longer pay its approximate pro rate share of utilities, but rather such utility expenses have been included by Sublessor as part and parcel of the basic rent specified in Paragraph 3 above . 5. Paragraph 4 of the Amendment dated November 3, 19821 adding Subparagraph (Ii) to paragraph 12 is amended to include additional provisions, so that paragraph 12 (h) now reads as follows : 1112. (h) SublesQee understands that as of the date of this amendment, Sublessor is in the process of constructing certain improvements (shown rn attached Exhibit "A") on the real property of which the subject premises are a part. 3 - Sublessee acknowledges that such construction, and related activities may require the relocation, on a temporary basis, some portions of Sublessee's activities in and around the sublet premises. Sublessor and Sublessee agree to cooperate in order to accomplish the implementatioi; of any such improvements, including the relocation of any storage activities of Sublessee, and agree to act reasonably in not hindering, delaying, or interfering with the activities of the construction and/or relocation as might be required. Any relocation shall be at Sublessor's cost, and Sublessor shall provide suitable interim facil- ities and security. Notwithstanding the fact that during the term of the extension recited in this Second Amendment, construction on certain portions of the premises 'to be occupied by Subles--ne will be incomplete, , Sublessee shall nevertheless pay full rent up to March 1, 1984, as described in this Second Amendment to Sublease Agreement and occupy the newly improved premises described on the attached Exhibit "A" upon their completion, on or about March 1 , 1984. " 6. Paragraph 5 of the Amendment to Sublease Agreement dated November 3, 1982 is hereby amended to read as follows: "As part of the leased premises, Sublessor shall provide the Sublessee with a designated heli-landing, takeoff and tie-down pad located approximately in. front of the hanger building rented by Sublessee , in such place as the parties shall agree and consistent with Sublessoe's operation of the common area for other aircraft operations. Such heli-landing, takeoff and tie-down area shall be marked, designated, and kept clear for use by Sublessee's helicopters." 7. Paragraph 6 of the Standard Industrial Sublease Agreement dated November 16, 1981 is hereby amended to eliminate the existing Subparagraph 6. 1 "Use" and replace the same with the following: 4 _ e :r , 116. 1 Use. The Premises shall be used and occupied only for City of Huntington Beach Police Helicopter Operations and approved Sublease usage and for no other purpose. It is the specific intent of Sublessor and Sublessee that the Premises which are the subject of this Sublease Agreement will be used for the day-to-day maintenance, repairs, and operation of the City of Huntington Beach's Police Helicopter Operations and associated maintenance. The Premises are not to be used for storage of aircraft helicopters, parts, accessories, or other associated materials, except those utilized in the normal course of the day-to-day operation of the facility. Sublessee may construct a wall or screen on the Premises to provide a screened storage area for Sublessee 's parts and equipment. The premises shall be maintained in a clean and orderly fashion and shall be cleaned, maintained, and picked up by Sublessee on a daily basis, in the normal and ordinary course of the operation of the City of Huntington Beach's Police Helicopter Operation ." 8. Sublessor is presently undertaking to install fuel service facilities in the fuel pit area at Orange County' s John Wayne Airport with the specific intent of supplying fuel to various aircraft users. Sublessor covenants and agrees to supply fuel upon request to the City of Huntington Beach' s Police Helicopter Operation for a six month period from the date of the execution of this Agreement at a price of One and 72/100th Dollars ($1 .72) per gallon including all taxes, fees or assessments. Jet fuel similarly supplied during said six month period shall be at a price of One and 58/100th Dollars ($1 .58) per gallon. K l 9. Subparagraph (g) of paragraph 12 of the Sublease Agreement dated November 16, 1981 is hereby amended to read as follows: 3 I' 1112 (g) . Sublessee understands that a portion of the hangar (not to exceed an area 141 x 58 ' and depicted on attached Exhibit "B") is not included in the leasehold area and may be let by Sublessor to another tenant for helicopter storage. Said tenant shall have the right of access into the hangar for purposes of entry and storage, maintenance, and related uses of helicopters. Sublessee may sublet space for storage of one additional helicopter in the hangar. Sublessee shall have the right to maintain security of the premises and to lock the hangar, provided, however, that Sublessee agrees to allow and permit access to the hangar to persons having legitimate business or possessory interests therein . Sublessor agrees to indemnify, hold harmless and defend Sublessee from any acts or omissions of Sublessor, its agents, assigns, invitees and employees . In any future subleases of the hanger area to other subtenants (other than Koll , Tarnutzer, or Barto) , Sublessor shall require that city be designated as an additional insured in the liability insurance policies required by the master lease and that a certificate of insurance be filed with the city on its form evidencing such insurance and providing for no coneellation without at least ten ( 10) days' prior written notice to city. 10. With the exception of the express changes set forth in this Amendment to Sublease Agreement, the parties hereto hereby confirm each and every other term of the Sublease Agreement dated November 16, 1981 , and the Amendment thereto dated November 3, 1982. (REST OF PAGE NOT USED) 6 - IN WITNESS WHEREOF, the parties execute this second amendment to the sublease agreement as the date hereinabove first written. Sublessor: PEL-AIRE PARTNERS By Paul C. tayrner e s s General Sublessee: CITY OF HUNTINGTON BEACH, a munici al corpora4' n y r �hOT APPROVED: TEST: City Administrator City Clerk APPROVED AS TO FORM: APPROVED: By By_ By_ �.- City Attorney Chief of Pol�e�— -i�dr-8�d Et d" 7 � �. 1 RCS:bb5 3/7/84 7 - AMENDMENT TO STANDARD I14DUSTRIAL SUBLEASE AGREEMENT. BY AND BETWEEN PEL AIRE PARTNERS, A CALIFORNIA GENERAL PARTNERSHIP AND THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION THIS AMENDMENT to Standard Industrial Sublease Agreement is eQAA ntered into this — day of November, 1982, in consideration, of the following facts and circumstances: 1. The patties hereto, Pel-Aire Partners, as Sublessee, and the City of Huntington Beach, as Sublessor, have previously entered into a Sublease Agreement dated November 16 , 1981 for a certain portion of those premises located at 19300 Ike Jones Road, as more F-articularly depicted in Exhibit A to said Sublease Agreement. 2 . The term of the Sublease Agreement dated November 16, 1981 was for a period of one year , commencing on December 1, 1981, and ending on November 30 , 1982 , unless sooner terminated pursuant to a provision of the Agreement. 3 . The parties hereto, in consideration of the fact of the eminent expiration of the Sublease Agreement, and in consideration of other changes intended and desired to be made to the Sublease Agreement, by them, mutually, as expressly set forth herein, intend by this Amendment to modify the terms and conditions of the original Sublease Agreement dated November 16 , 1981, only as expressly set forth hereinafter. NOW, THEREFORE, in consideration of the foregoing, and the mutual promises, covenants, nd agreements herein contained as well as other consideration, the parties hereto agree to -:codify the aforere.ferenced Sublease Agreement dated November 16, 1981 as follows: 1. The term of the Sublease is hereby extended for an additional one year period from December 1, 1982 until November 30, 1983,. unless sooner terminated pursuant to the terms of the Sublease Agreement, or any amendment thereto, including this Amendment. 2 . The rent to be paid by Sublessee to Sublessor is hereby increased from Six Thousand Three Hundred Ninety Two Dollars ($6392) %. per month to Seven Thousand Thirty One Dollars ($7031) per month, payable in equal monthly installments, in advance, on the first day of each month of the term of this extention as above set forth . Sublessee has previously paid to Sublessor the sum of Twelve Thousand Seven Hundred Eighty Four Dollars ($12,784) which has been applied Six a Thousand Three Hundred Ninety Two ($6392) as rent for the month of December, 1981 and the balance of $6392 held by Sublessor as last month's rent for the term of the lease. Last month's rent shall, upon Now execution and acceptance of this Sublease Agreement, be augmented by the additional sum of Six Hundred Thirty Nine Dollars ($639) , which co,abined total of Seven Thousand Thirty One Dollars ($7031) shall be retained by Sublessor as rent for the last month of the term of this extention. 3. paragraph (e) , of "Additional Provisions" set forth on page 3 of the Sublease Agreement dated November 16, 1981, is hereby amended in its entirety and replaced and shall provide as follows: "Sublessee agrees to pay as its pro rata share of utilities attributable to its use of the premises, the sum of the factor of 82% of the electri- cal utility bill based upon the readings and billings of the meters metering electricity to the hangar building which is primarily occupied by Sub- �,.. lessee. Sublessee further agrees to pay the sum of $10 per month as its pro rata share of water attri- butable to its use of the premises." 4. Paragraph 12 "Additional Provisions" set forth on page 3 of the Sublease Agreement of November 16 , 1981, is hereby amended to include a new provision, subparagraph " (h) " which provides as follows: "Sublessee understands that during the term of this extended Sublease Agreement, Sublessor intends to make improvements on or to the real property or appurtenant real property of which the subject premises are a part, and Sublessee acknowledges that such contruction, and related activi- ties may require the relocation, on a temporary basis, some portions of Sublessee's activities in and around _. the sublet premises. Neither Sublessee or Sublessor contemplate any improve- ments in the hangar building which is primarily the subject of this Sub- lease Agreement, but rather such improvements will be exterior to the hangar building, but may include, -2- but not be limited to, resurfacing, and/or replacement of asphalt immedi- ately appurtenant to the hangar build- ing, and the placement of additional building immediately appurtenant to the hangar building which may require the relocation of personal property presently stored or maintained by Sublessee beside and adjacent to the hangar building of which this Lease is in part the subject. Sublessee and Sublessor agree to cooperate in order to accomplish the implementation if any such improvements, including the relocation of any such storage activities of Sublessee, and agree to act reasonably in not hindering, delaying, or interfering with the activities of the construction and/or relocation as might be required. 5 . The Sublease Agreement dated November 16 , 1981 includes Exhibit A which depicts, in part, two heli-landing, takeoff and tiedown pads located at the approximate northern boundary of the present leasehold interest immediately adjacent to the sublet area. By execution of this Amendment to Sublease, it is the intent and agreement of .Sublessee and Sublessor that said two heli-landing, takeoff and tiedown pads be eliminated and replaced by one single hcli-landing, takeoff and tiedown pad located approximately in front of the hangar building, in such place as Landlord shall designate in a manner consistent with Landlord ' s operation of the common area premises and the operations and activities of Sublessor ' s other tenants. 6 . With the exception of the express changes set forth in this Amendment to Sublease Agreement, the parties hereto hereby confirm each and every other term of the Sublease Agreement dated November 16, 1981. PEL-AIRS PARTNERS By aul Olniess, General rtner -3- r CITY OF HUNTINGTON BEACH, a municipal corporation BY t � — Mayor APPROVED: ATTEST: YCity Administrator .;ity Clerk APPRUJ� tb A% Tff' ortK: APPROVED: GA_II, BUTTON 111'7 X City At x e By BY �-- Ci&y Attorney Chief of Police DenutY City Attol4w s Y k ORIGIIJAL STANDARD INDUSTRIAL SUBLEASE American Industrial Real Estate Association m v U rd 1. Parties. This Sublease,dated,for reference purposes only, November 16 ,1 g 81- ,is made by and 04 PEL—AIRE PARTNERS a Californ; W between 3��nc�r__c�a 1 r artnr�rc.�j,;p (herein called"Sublessor")and the City of Huntington Beach, Q a municipal corporation (herein called"Sublessee"). 2. Premises. Sublessor hereby subleases to Sublessee and Sublessee hereby subleases from Sublessor for the term,at the rental,and upon all of r the conditions set forth herein,that certain real property situated in the County of Orange to Stateof California,commonly known as a portion of those premises located at 19300 Tk . Jones rl xr,dx),1=rARck,,9 Road Santa Ana California . and as more p arti r111 arl y r1ppici-r-a t7' upon the attached Exhibit "A", which depicts the lease area as a portion of u) the hanger, including all open hanger area, and the depicted helicopter to i~ landing and taxi area. The leased premises shall include use of the ramp area, for access to the hanger, use of the coiiulion storage area, both of which • are approximately depicted on tne attached Ex. ibit "A", and at least 5. . . . . . . . Said real property,including the land and all improvements thereon,is hereinafter tailed the"Premises". 3. Term. 3.1 Term.The term of this Sublease shall be for one year commencing on and ending on December 1, 1981 November 30, 1982 unless sooner terminated pursuant to any provision hereof. Premises to Sublessee on said date,Sublessor shall not be subject to any liability therefore,nor shall such failure ai o this Lease or the obligations of Sublessee hereunder or extend the term hereof,but in such case Sublessee s gated to pay rent until possession of the Premises is tendered to Sublessee:provided,however,that if Subless at n 1C'e elivered possession of the Premises within sixty(60) i days from said^ommencement date,Sublessee may.a p wn,by notice in writing to Sublessor within ten(10)days thereafter,cancel this Sublease, n which event the t' ischarged from all obligations thereunder. If Sublessee occupies the Premises prior to said commenceme ccupancy shall be subject to all provisions hereof, such occupancy shall not advance the termination date and 4. Rent. Sublessee shall pay to Sublessor as rent for the Premises equal monthly payments of s 6392.00 in advance, on the 1st 12784.00 the day of each month of the term hereof.Sublessee shall pay Sublessor upon the execution hereof$ as rent for month of December 1981 and last month' s rent Rent for any period during the term hereof which is for less than one inonth shall be a prorata portion of the monthly installment. Rent shall be payable in lawful money of the United States to Sublessor at the address stated herein or to such other persons or at such other places as Sublessor may designate in writing. OCF,Ywit. performance of Sublessee's obligations hereunder.If Sublessee fails to pay rent or other charges due herE�.r,or otherw' A with respect to any provision of this Sublease,Sublessor may use,apply or retain all or any portion of said deposit for th, any rent or other ch2rge in default or for the payment of any other sum to which Sublessor may become obligated by reaso s*e's default,or to compensate Sublessor for any loss or damage which Sublessor may suffer thereby.If Sublessor so use a tI all or any portion of said deposit,Sublessee shall within tern (10) days after written demand therefore deposit cash witt r in an amount sufficient to restore said deposit to the full amount hereinabove stated and Sublessee's failure to do so n eac, a!! atea;brh of this Sublease.Sublessor shall not be required to keep said deposit separate from its general accounts. I performs all of Sublessee's obligations hereunder,said deposit,or so much thereof as has not theretofore been ap fipd lz+f Fivt sor,shall be returned,without payment of interest or other increment for its use to Sublessee(or at Sublessor's option. ssignee, if any, of Sublessee's interest hereunder)at the ex 'r ter Sublessee has vacated the sor an u essee with respect to said Security Deposit. 6. Use. City of Huntington Beach helicopter 6.1 Use.The Premises shall be used and occupied only for Y g P g operating and any approved sublease usage and for no other purpose.0 6-2 Compliance with Law. in (a) Sublessor warrants to Sublessee that the Premises, in its existing state, but without regard to the use for which Sublessee will use thea) Premises.does not violate any applicable building code regulation or ordinance at the time that this Sublease is executed.In the event that it is determined-I that this warranty has been violated,then it shall be the obligation of the Sublessor,after written notice from Sublessee,to promptly,at Sublessor's sole cost and expense,rectify any such violation.In the event that Sublessee does not give to Sublessor written notice of the violation of this warranty within 1:7 year from the commencement of the term of this Sublease,it shall be conclusively deemed that such violation did not exist and the correction of the same shall be the obligation of the Sublessee. O (b) Except as provided in paragraph 6.2(a), Sublessee shall, at Sublessee's expense, comply promptly with all applicable statutesd-1 ordinances,rules,regulations,orders,restrictions of record,and requirements in effect during the term or any part of the term hereof regulating the use by Sublessee of the Premises.Sublessee shall not use or permit the use of the Premises in any manner that will tend to create waste or a4-J. nuisance or,if there shall be more than one tenant of the building containing the Premises,which shall lend to disturb such other tenants. 6.3 Condition of Premises.Except as provided in paragraph 6.2(a)Sublessee hereby accepts the Premises in their condition existing as of theE date of the execution hereof,subject to all applicable zoning,municipal,county and state laws,ordinances,and regulations governing and regulating~ the use of the Premises, and accepts this Sublease subject thereto and to all matters disclosed thereby and by any exhibits attached hereto.t7T Sublessee acknowledges that neither Sublessor nor Sublessor's agents have made any representation or warranty as to the suitability of then-1 Premises for the conduct of Sublessee's business. filed with the City 7. Master Lease 7.1 Sublessor is the lessee of the Premises by virtue of a lease,hereinafter referred to as the"Master Lease",a copy of which isit5hlcT 6v?etb xotdct> da1XxxxxxACx ;4btim� consisting of Lease Agreement dated August 23, 1973, as thereafter amended, including the requirements of Consent to. . . . is the lessor,hereinafter referred to as the"Master Lessor". 7.2 This Sublease is and shall beat all times subject and subordinate to the Master Lease. 7.3 The terms,conditions and respective obligations of Sublessor and Sublessee to each other under this Sublease shall be the terms and conditions of the Master Lease except for those provisions of the Master Lease which are directly contradicted by this Sublease in which event the terms of this Sublease document shall control over the Master Lease.Therefore,for the purposes of this Sublease,wherever in the Master Lease the word"Lessor"is used it shall be deemed to mean the Sublessor herein and wherever in the Master Lease the word"Lessee"is used it shall be deemed to mean the Sublessee herein. 7.4 During the term of this Sublease and for all periods subsequent for obligations which have arisen prior to the termination of this Sublease, Sublessee does hereby expressly assume and agree to perform and comply with, for the benefit of Sublessor and Master Lessor, each and every obligation of Sublessor under the Master Lease PLaSbotmid4dt+IpgSa�gta{ilL4�Md4cKNA1�cM0eKlbRtttnn9x a__n i i c-ab 1 c� t c� sublessee's (or its assign' s) use of the premises. ®American industrial Real Estate Association 1978 __ �� 7.5 The obliy�rtnns that Sublessee has assumed under paragraph 7.4 hereof are hereinafter referred to as the "Sublessee's Assumed Obligations".The obliquVons that Sublessee has not assumed under paragraph 7.4 hereof are hereinafter referred to as the"Sublessor's Remaining Obligations". 7.6 Sublessee shall hold Sublessor free and harmless of and from all liability,judgments, costs, damages, claims or demands, including reasonable attorneys fees,arising out of Sublessee's failure to comply with or perform Sublessee's Assumed Obligations. 7.7 Sublessor agrees to maintain the Master Lease during the entire term of this Sublease,subject,however,to any earlier termination of the Master Lease without the fault of the Sublessor,and to comply with or perform Sublessor's Remaining Obligations and to hold Sublessee free and harmless of and from all liability, judgments, costs, damages, claims or demands arising out of Sublessor's failure to comply with or perform Sublessor's Remainina Oblioations. 7.8 Sublessor represents to Sublessee that the Master Lease is in full force and effect and that no default exists on the part of any parlyto the Master Lease. a. Assignment of Sublease and Default. (Not required) therefrom,subject however to terms of Paragraph 8.2 hereof. 8.2 Master Lessor,by executing this document,agrees that until a default shall occur in the performance of Subles rgations under the Master Lease, that Sublessor may receive, collect and enjoy the rents accruing under this Sublease. Howe ublessor shall default in the performance of its obligations to Master Lessor then Master Lessor may,at its option,receive and col ectly from Sublessee,all rent owing and to be owed under this Sublease.Master Lessor shall not,by reason of this assignment of ease nor by reason of the collection of the rents from the Sublessee,be deemed liable to Sublessee for any failure of the Sub less r orm and comply with Sublessor's Remaining Obligations. 8.3 Sublessor hereby irrevocably authorizes and directs Sub upon receipt of any written notice from the Master Lessor stating that a default exists in the performance of Sublessor's obligatio r the Master Lease,to pay to Master Lessor the rents due and to become due under the Sublease. Sublessor agrees that Subless ave the right to rely upon any such statement and request from Master Lessor, and that Sublessee shall pay such rents to M ssor without any obligation or right to Inquire as to whether such default exists and notwithstanding any notice from or claim from sor to the contrary and Sublessor shall have no right or claim against Sublessee for any such rents so paid by Sublessee. bw ma 9. Consent of Master Lesson tbet-S"bit-ssar obS Sublease shall not be effective unless, within 10 days of the date hereof, Master Lessor signs this Sublease thereby giving its consent this Subletting. 9.2 in the event that the obligations of the Sublessor under the Master Lease have been guaranteed by third parties than this lease,nor the Master Lessor's consent,shall not be effective unless,within 10 days of the date hereof,said guarantors sign this Sublease ther giving guarantors consent to this Sublease and the terms thereof. 9.3 In the event that Master Lessor does give such consent then: (a) Such consent will not release Sublessor of its obligations or alter the primary liability of Sub:.Isto.,temyetis'hall ssr e rent and perform and comply with all of the obligations of Sublessor to be performed under the Master Lease. (b) The acceptance of rent by Master Lessor from Sublessee or any one else liable under 1 not be deemed a waiver by Master Lessor of any provisions of the Master Lease. (c) The consent to this Sublease shall not constitute a consent to any subsequent etting or assignment. (d) in the event of any default of Sublessor under the Master Lease.Master ssor may proceed directly against Sublessor,any guarantors or any one else liable under the Master Lease or this Sublease without first ex sting Master Lessor's remedies against any other person or entity liable thereon to Master Lessor. (e) Master Lessor may consent to subsequent sublettings assignments of the V :ter Lease or this Sublease or any amendments or modifications thereto without notifying Sublessor nor any one el cable under the Master Le, end without obtaining their consent and such action shall not relieve such persons from liability. (f) In the event that Sublessor shall default i J obligations under the Master Least .nen Master Lessor,at its option and without being obligated to do so,may require Sublessee to at to Master Lessor in which event Master Lessor shall undertake the obligations of Sublessor under this Sublease from the time of the exe a of said option to termination of this Sublease but Master Lessor shall not be liable for any prepaid rents nor any security deposit paid by S ssee,nor shall Master Lessor be liable for any other defaults of the Sublessor under the Sublease. 9.4 The signatures of the Me essor and any Guarantors of Sublessor at the end of this document shall constitute their consent to the terms of this Sublease. 9.5 Master Lessor nowledges that,to the best of Master Lessor's knowledge,no default presently exists under the Master Lease of obligations to be performed by S ssor and that the Master Lease is in full force and effect. 9.6 In th ent that Sublessor defaults under its obligations to be performed under the Master Lease by Sublessor,Master Lessor agrees to deliver to Sable a copy of any such notice of default.Sublessee shall have the right to cure any default of Sublessor described in any notice of default within ten after service of such notice of default on Sublessee.If such default is cured by Sublessee then Sublessee shall have the right of reimbursement r. 10. Brokers Fee. 1 a licensed real estate broker,(herein called"Broker"),a fee as set forth in a separate agreement between Sublessor and Broker,or in the eve re is no separate agreement between Sublessor and Broker,the sum of$ -------- __-.___.___.__ __ for brokerage services rendered oker to Sublessor in this transaction. 10.2 Sublessor agrees that if Sublessee exercises any option or right of first refusal granted by Sublessor h or any or.tion or right subs lantially similar thereto,either to extend the term of this Sublease,to renew this Sublease,to purchase the Premier ,or to lease or purchase adjacent property which Sublessor may own or in which Sublessor has an interest,or if Broker is the procuring cat any lease,sublease,or sale pertaining to the Premises or any adjacent property which Sublessor may own or in which Sublessor has an int then as to any of said transactions Sublessor shall pay to Broker a fee,in cash,in accordance with the schedule of Broker in effect at the time a execution of this Sublease.Notwithstanding the foregoing, Sublessor's obligation under this Paragraph 10.2 is limited to a transaction in Sublessor is acting as a sublessor,lessor or seller. 10.3 Master Lessor agrees,by its consent to this Sublease,that it S r see shall exercise any option or right of first refusal granted to Sublessee by Master Lessor in connection with this Sublease,or any option or ri uustantially similar thereto,either to extend the Master Lease,to renew the Master Lease,to purchase the Premises or any part the or to I or purchase adjacent property which Master Lessor may own or in which Master Lessor has an interest,or if Broker is the procuring cause ty other lease or sale entered inio between Sublessee and Master Lessor pertaining to the Premises,any part thereof,or any adjacent pr y which Master Lessor owns or in which it has an interest,then as to any of said transactions Master Lessor shall pay to Broker a lee,in ca , accurdance with the schedule of Broker in effect at the time of its consent to this Sublease. 10.4 Any fee due from Subl r r or Master Lessor hereunder shall be due and payable upon the exercise of any option to extend or renew,as to any extension or renewal;upo execution of any new lease,as to a new lease transaction or the exercise.of a right of first refusal to lease;or at the close of escrow,as to the isa of any option to purchase or other sale transaction. 10.5 nsferee of Sublessor's interest in this Sublease,or of Master Lessor's interest in the Master Lease,by accepting an assignment thereof, shall eemed to have assumed the respective obligations of Sublessor or Master Lessor under this Paragraph 10. Broker shall be deemed to be a b9poll;c; 11. Attorney's fees.11 any party brings an action to enforce the terms hereof or to declare rights horeend h pr vading Party in any such action,on trial and appeal,shall be enGtted to his reasonable attorneys fees to be paid by the iosrng party as fixed b 1! rt.The r4V1:lO^^i rhic iLmpraph chall loure in the hnnrlil of the Rrnknr namnri hnrnin whn cnnkc In nnfr•rrn n riTir Fnr �rv1,rr, - -.�. -t#..tit ,. . 12. Additional Provisions.[If there are no additional provisions draw a line from this point to the next printed word after the space left here.If there are additional provisions place the same here.] (a) Sublessee shall not sublease more than 50% of the square foot area of the hanger of which sublease is the subject without the express written con- sent of sublessor, which shall be in sublessor' s sole discretion. sub- lessee may, within the terms of the master lease, further sublease up to 50% of the premises without obtaining sublessor's consent. (b) Paragraph 3, "Term", notwithstanding, any party may cancel this lease agreement by giving the other 90 days written notice of such cancellation.. After the lease term described in said Paragraph 3, "Term", no party shall cancel without first giving the other party 90 days written notice of cancellation. (c) Sublessee shall satisfy all requirements of the County of Orange with respect to the furnishing of insurance or self-insurance and shall name Pel-Aire and its partners as additional insureds in any such required policy or certificate. (d) Sublessee shall have the right to remove all nonpermanent trade fixtures installed by it, provided that it shall repair any damage caused by such removal. (e) Sublessee agrees to pay its approximate prorata share of utilities attri- butable to its use of the premises. m (f) Sublessor shall maintain the premises in good repair and tenantable condition. 3 (g) Sublessee understands that some portion of the hanger identified in the o attached Exhibit "A" as not included in the leasehold area may be let to y other tenants who must have access through the hanger in order to gain entry to these now existing office/shop areas. Sublessee agrees to allow a and permit such access and further agrees to indemnify sublessor and hold o sublessor harmless from any acts or omissions of any now, or future 3 tenants of such areas, their agents, assigns irivitees and employees. E Concurrently, sublessor agrees to indemnifyot'n save harmless sublessee s` from the acts or omissions of sublessor, its agents, employees, and in- c vitees. 'U CI U 7 U O O. It this Sublease has been filled in it has been prepared for submission to your attorney for his approval. No representation or recommendation is made by the real estate broker or its agents or employees as to the legal n sufficiency,legal effect,or tax consequences of this Sublease or the transaction relating thereto. E m Executed at Newport Beach _ _ i� Del- _ _ _ s 0 on November/7 , 1981 By address 4490 Von Karman Avenue B y o Newport Beach, Ca 92660 4 "Sublessor"(Corporal eSeal) 0 Huntington Beach, Ca Cit H tin on ch, w { Executed at ,___ _ -_-_-- a 1 rpo iofl November�7 1981 on J �_ BY address 2000 Main Street ___ _._•__JMay_or__ -_eh _ Huntington Beach, Ca 92648 "Sublessee"(Corporate Seal) o --ATTESIF- - l Executed at 2 on f v u — By— - — CITY .ADMINISTRATOR } X address City Clerk w m 1L ?s�4@FC� ATS4rr241SShS : kkkN :& APPROVED AS TO FORM: N F A- G X X U 31(3d7R5 t-•��f_- ll lit L7 d�� Q GA IL HUTTON, CHIEF OF POLICE City AA-- p e;7 !t' "Guarantors" �I r` rn For these forms write Ifie American.Industrial Fbal Estate Association,350 So. Figueroa Street. Suite 275. Los Angeles, California 90071 Form 401 778 1tta, „� :,b 1 .+ q f�. 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