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<br /> injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage.
<br /> obstruction or other defects of pipes. fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause,whether the said
<br /> injury or damage results front conditions arising upon the Premises or upon other portions of the Building, or from other sources or places. (ii) any
<br /> damages arising from any act or neglect of any other levant of Lessor or from the failure of Lessor or its agents 10 enforce the provisions of any other
<br /> lease in the Project,or(iii)injury to Lessee's business or for any loss of income or profit therefrom, instead, it is intended that Lessee's sole recourse in
<br /> the event of such damages or injury be to file a claim on the insurance policy(les) that Lessee is required to maintain pursuant to the provisions of
<br /> paragraph 8.
<br /> 8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required
<br /> herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely
<br /> difficult to ascertain- Accordingly,for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor
<br /> with the required binders or certificates evidencing the existence of the required insurance. the Base Rent shall be automatically increased,without any
<br /> requirement for notice to Lessee, by an amount equal to 10%of the then existing Base Rent or$100,whichever is greater. The parties agree that such
<br /> increase in Base Rent represents fair and reasonable compensation for the additional risklcosts that Lessor will incur by reason of Lessee's failure to
<br /> maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect 10 the
<br /> failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder,nor relieve Lessee of its obligation to
<br /> maintain the insurance specified in this Lease.
<br /> 9, Damage or Destruction.
<br /> 9.1 Definitions.
<br /> (a) "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than
<br /> Lessee Owned Alterations and Utility Installations,which can reasonably be repaired in 3 months or less from the date of the damage or destruction.
<br /> and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the
<br /> damage or destruction as to whether or not the damage is Partial or Total. j
<br /> (b) "Premises Total Destruction" shall mean damage or destruction to the improvements on the Premises, other than
<br /> Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the
<br /> damage or destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent, Lessor shall notify Lessee in writing within 30 days from
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<br /> the date of the damage or destruction as to whether or not the damage is Partial or Total.
<br /> (c) "Insured Loss" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned
<br /> Alterations and Utility Installations and Trade Fixtures,which was caused by an event required to be covered by the insurance described in Paragraph
<br /> 8.3(a),irrespective of any deductible amounts or coverage limits involved, l
<br /> (d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the
<br /> occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of
<br /> Applicable Requirements, and without deduction for depreciation.
<br /> (e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or
<br /> a contamination by, a Hazardous Substance, in,on,or under the Premises which requires restoration.
<br /> 9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessors
<br /> expense, repair such damage(but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible
<br /> and this Lease shall continue in full force and effect: provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or
<br /> destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to
<br /> Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the'required insurance was not in force or the insurance proceeds are
<br /> not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete said repairs.
<br /> In the event. however, such shortage was due to the fact that, by reason of the unique nature of the improvements. full replacement cost insurance
<br /> coverage was not commercially reasonable and available. Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully
<br /> restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover some, or adequate assurance thereof,within 10 days
<br /> following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day
<br /> period. the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and
<br /> effect- If such funds or assurance are not received. Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter 10'1(i) make
<br /> such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case This Lease shall remain in full
<br /> force and effect.or(ii)have this Lease terminale 30 days thereafter. lessee shall not be entitled to reimbursement of any funds contributed by Lessee
<br /> to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that
<br /> there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party-
<br /> 9.3 Partial Damage - Uninsured Loss, if a Premises Partial Damage that is net an Insured Loss occurs, unless caused by a
<br /> negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense). Lessor may either (i)repair such damage as
<br /> soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or(ii) terminate thls Lease by giving
<br /> written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60
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<br /> INITIAL INITIALS
<br /> 01999-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTN-14-2113E
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