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(b) Service Contracts. Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for,
<br />and with contractors specializing and experienced In the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (1)
<br />HVAC equipment, (it) boiler, and pressure vessels, (III) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems,
<br />and (v) clarifiers. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.
<br />(c) Fallureto Perform. If Lessee fails to perform Lessee's obligations underthis Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior
<br />written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee's behalf, and put the
<br />Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof.
<br />(d) Replacement. Subject to Lessee's indemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from
<br />Lessee's failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at acost which is in excess
<br />of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only
<br />be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying
<br />the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144(In. 1/144th of the cost per month). Lessee shall pay
<br />Interest on the unamorthed balance but may prepay its obligation at any time.
<br />7.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2(Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14(Condemnation), it is
<br />intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which
<br />obligations are Intended to be that of the Lessee, except for the surface and structural elements of the roof, foundations and bearing walls, the repair of which shall be
<br />the responsibility of lessor upon receipt of written notice that such a repair is necessary. It is the Intention of the Parties that the terms of this Lease govern the
<br />respective obligations of the Parties as to maintenance and repair of the Premises.
<br />7.3 Utility Installations; Trade FLmures,Alterations.
<br />(a) Definitions. The term "Utility Installations" refers to all floor and window coverings, air and/or vacuum lines, power panels, electrical distribution,
<br />security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing In or on the Premises. The term "Trade
<br />Fbrtures"shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any
<br />modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alteratlorts and/or Utility
<br />Installations" are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7A(a).
<br />(b) Consent... Lessee shall not make. any Alterations or. Utility. Installations to the -Premises -without- Lessor's prior written consent. Lessee may, however,
<br />make non-structural Alterations or Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as
<br />they are not visible from the ou ide, do not involve puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC,
<br />and/or life safety systems, do not trigger the requirement for additional modifications and/or improvements to the Premises resorting from Applicable Requirements,
<br />such as compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate
<br />or a sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install
<br />anything on the roof without the prior written approval of Lessor. Lessor may, as precondition to granting such approval, require Lessee to utilize a contractor
<br />chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be
<br />presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon lessee's: (1) acquiring all applicable governmental permits, (III
<br />furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (Hi) compliance with all conditions of said
<br />permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner
<br />with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as -built plans and specifications. For work which costs an amount in
<br />excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a Hen and completion bond in an amount equal to 150%of the estimated
<br />cost of Such Alteration or Utility installation and/or upon Lessee's posting an additional Security Deposit with Lessor.
<br />(c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on
<br />the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not
<br />less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non -responsibility. If
<br />Lessee shall contest the validity of any such lien, claim or demand, then Lessee shag, at its sole expense defend and protect itself, Lessor and the Premises against the
<br />same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish
<br />a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, Indemnifying Lessor against liability for the same. If Lessor elects
<br />to participate in any such action, Lessee shall pay Lessors attorneys' fees and costs.
<br />7.4 Ownership; Removal; Surrender, and Restoration.
<br />(a) Ownership. Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by
<br />Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of
<br />the Lessee Owned Alterations and Utility installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations
<br />shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.
<br />(b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of this Lease,
<br />Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the
<br />removal at any time of all or arty part of any lessee Owned Alterations of Utility Installations made without the required consent
<br />(c) Sumenderitesturation. Lessee shall surrender the Premises by the Expiration Date Many earliertermination date, with all of the improvements,
<br />parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary
<br />wearand tear" shall not Include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if the
<br />Lessee occupies the Premises for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO
<br />allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned
<br />Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank Installed by or for Lessee. Lessee shall also remove from
<br />the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via
<br />underground migration from areas outside of the Premises) to the level specified in Applicable Requirements. Trade Fixtures shall remain the property of Lessee and
<br />shall be removed by Lessee. Any personal property of lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have
<br />been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this
<br />Paragraph 7A(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below.
<br />S. Insurance; Indemnity.
<br />8.1 Payment of Premium Increases.
<br />(a) Lessee shall pay to Lessor any insurance cost increase ("Insurance Cost Increase") occurring during the term of this Lease. Insurance Cost increase is
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<br />0 2017AIR CRE. All Rights Reserved. STG-27.20, Revised 11-01-2017
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