TABLE OF CONTENTS
SUBLEASE OF CONDOMINIUM
AND
GRANT DEED OF IMPROVEMENTS
- FIRE INSURANCE.
A.Sublessee shall, by paying his proportionate share of the Common Expenses of the Association, which share is set forth in the Declaration, at all times during the term of this Sublease, keep all buildings and other improvements on the Project insured against loss or damage by fire, with extended coverage in an insurance company authorized to do business in the State of California, in an amount as near as possible to the full replacement cost thereof, without deduction for depreciation, by blanket policy or policies, written in accordance with the terms of the Declaration in the name of the board of directors of the Association, as trustee, for the Lessor under the Master Lease, Sublessor, all Unit Owners and their mortgagees. Sublessee shall provide insurance on his personal property and fixtures within his Unit to protect against fire, vandalism, malicious mischief and the perils of the extended coverage endorsement to the California standard policy of fire insurance, or any form of coverage providing equal or greater protection, in the amount of the full insurable value of such property insured in accordance with the provisions of the Declaration.
Sublessee hereby expressly waives on behalf of its insurers hereunder any right of subrogation against Sublessor, and Sublessor likewise waives on behalf of its insurers any right of subrogation against Sublessee, which any such insurers may have against Sublessor or Sublessee by reason of any claim, liability, loss, or expense arising under this Sublease. Sublessor and Sublessee agree that any and all insurance policies required to be carried by Sublessee shall contain a standard mortgage protection clause in favor of Sublessee's mortgagee, if any, ("Lender"). All such policies issued by the respective insurers shall contain an agreement by the insurers that such policies shall not be cancelled or modified to reduce or eliminate coverage or insured risks at least thirty (30) days' prior written notice to the named insureds. Lender shall be entitled to participate in the settlement or adjustment of any losses covered by such policies of insurance and no such settlement or adjustment shall be accepted or approved without the specific consent in writing of Lender. Notwithstanding anything contained in the body of this Sublease, the proceeds from any insurance policy are to be held and distributed pursuant to the provisions of the Declaration.
- RESTORATION OF IMPROVEMENTS.
If, during the term hereof, any portion of the Condominium of Sublessee or other improvements, if any, situated in the Project, or any portion thereof, are damaged or destroyed by fire or other casualty, Sublessee shall promptly and punctually pay any and all assessments levied by the board of directors pursuant to the provisions of the Declaration, for the purpose of defraying the cost of refurbishing, rebuilding or replacing any portion of the improvements so damaged or destroyed by fire or other casualty. Any failure on the part of the board of directors to cause any such damaged or destroyed improvements in the Project of which the Subleased Property is a part to be fully refurbished, rebuilt or replaced, as the case may be, in accordance with the requirements of the Declaration, shall be deemed to constitute a breach in and under this Sublease and all insurance proceeds shall then be paid to Sublessor subject to the rights of the Mortgagees, if any, of Sublessor and Sublessee; provided, however, that should there be an election in accordance with Section 10.02 of the Declaration, not to repair or restore the Project, then no breach of the covenants and conditions of this Sublease shall arise. If the board of directors of the Association shall elect not to repair or restore as aforesaid, this Sublease shall cease and terminate upon completion of the clean-up operation referred to in Section 10.02 of the Declaration. In such event, the insurance proceeds shall be distributed in accordance with the Declaration and Sublessee shall be relieved of any further obligations hereunder, subject to payment to Sublessor of all rent, taxes, assessments and other charges hereunder payable by Sublessee, prorated to the date on which the Sublease is so terminated.
- LIENS AND CLAIMS.
Sublessee shall not suffer or permit to be enforced against Sublessor, the Condominium, or any portion of the Project, any lien, claim or demand arising from any work of construction, repair, restoration, maintenance, alteration, addition or removal performed by, or on behalf of Sublessee. Sublessee shall pay all such liens, claims and demands before any action is brought to enforce the same against Sublessor, the Condominium of Sublessee or any portion of the Project. Sublessee agrees to hold Sublessor, the Condominium of Sublessee and the Project, free and harmless from all liability for any and all liability for any and all such liens, claims or demands, together with all costs and expenses, including, but not limited to, reasonable attorney's fees and court costs incurred by Sublessor in connection therewith. Sublessee shall give Sublessor at least fifteen (15) days prior written notice before commencing any such construction, repair, restoration, maintenance, alteration, addition or removal. Sublessor shall have the right at any time to post and maintain on the Condominium of Sublessee and on any portion of the Project such notices as may be necessary to protect Sublessor against liability for all such liens or to otherwise protect Sublessor's interest in the Subleased Property. Notwithstanding anything to the contrary contained in this Paragraph, if Sublessee shall in good faith contest the validity of such lien, claim or demand, then Sublessee shall, at its expense, defend itself and Sublessor against the same and shall pay and satisfy any adverse judgment that may be rendered thereon before the enforcement thereof against Sublessor, the Condominium of Sublessee or any portion of the Project. If Sublessor shall require, Sublessee shall furnish to Sublessor a surety bond satisfactory to Sublessor in an amount equal to such contested lien, claim or demand indemnifying Sublessor against liability for same, or if Sublessor shall request, Sublessee shall procure and record the bond provided for in Section 3134 of the California Civil Code, or any comparable statue hereafter enacted providing for a bond freeing the Condominium of Sublessee from the Effect of such lien or claim or action thereon.
- LIABILITIES.
Sublessor shall not be liable for any loss, damage or injury of any kind whatsoever to the person or property of Sublessee, or any of Sublessee's employees, guests, tenants or invitees or of any other person whomsoever, caused by any use of the Condominium or the Project, or by any defect in any such property, or arising from any accident anywhere on the Project, or any fire or other casualty, or occasioned by the failure on the part of the Sublessee to maintain his Condominium in safe condition, or by any nuisance made or suffered anywhere on the Project, or by any act or omission of Sublessee, or any member of Sublessee's family, or of Sublessee's employees, guests, tenants or invitees, or arising from any other cause whatsoever in connection with any portion of the Project; and Sublessee hereby waives on its behalf all claims and demands against Sublessor for any such loss, damage or injury of Sublessee, and hereby agrees to indemnify and hold Sublessor free and harmless from any claims, demands or liability for any such loss, damage or injury of other persons claiming by, through or under Sublessee, or other damage (including property damage) and from costs, expenses and other charges arising therefrom and in connection therewith. Sublessee will hold all goods, materials, furniture, fixtures and other property whatsoever within the Unit comprising a portion of the Subleased Property or within any portion of the Project at the sole risk of Sublessee and shall and does hereby hold Sublessor harmless for any loss or damage thereto by any cause whatsoever. Sublessee shall, by paying his proportionate share of the Common Expenses of the Association, cause to be kept and maintained during the whole term of this Sublease a policy of comprehensive general liability insurance in accordance with the terms of the Declaration. When and if requested by Sublessor, Sublessee agrees to obtain additional liability insurance covering such risks and in amounts as may be reasonably required by Sublessor.
- SUBLESSOR PAYING CLAIMS.
Should Sublessee fail or refuse to pay any tax, assessment or other charge upon any portion of the Condominium of Sublessee, when due and payable as provided herein, or any lien or claim arising out of the construction, repair, restoration, maintenance, and use of said Condominium, or any other claim, charge or demand which Sublessee has agreed to pay under the covenants of this Sublease, and if after ten (10) days written notice from Sublessor to Sublessee and to his authorized encumbrancer, if any, Sublessee or said encumbrancer shall fail or refuse to pay and discharge the same, then Sublessor may, at its option, pay such tax, assessment, lien, claim, charge or demand, or settle or discharge any action therefor or judgment thereon. All costs, expenses and other sums incurred or paid by Sublessor in connection therewith shall be repaid to Sublessor by Sublessee upon written demand, together with interest thereon at the rate of ten percent (10%) per annum from the date of payment until repaid, and any default in such repayment shall constitute a breach of the covenants and conditions of this Sublease.
SUBLEASE OF CONDOMIUM |
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