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8.7 Indemnity. Except far lessor's gross negggamem wfilMl mnametalt, fesseeshall indemnity, protect, defend and hold harmless the Premises, Lesor and <br />ds agents, Lessee master or ground lesson partners and Lenders, from and agamst am' mM all'Joints, losaof rents and/w damages, lien;judgmems, penalties. <br />attemeys' and consultants' fees, expensesand/pr liabilities arisingaut of, involving, arm connection with, a Breach of the Lease by lessee and/or the use and/or <br />occupancyof the premises ind/su Projectby Lesseeandlor bytener's employees, contactors or invitees. R any action or proceeding is brought agalnst Lessur by <br />reason of any of the foregoing matters, Lessee shall ,an notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lasso, and Le, soshot I <br />cooperate with Lessee in such defense. Lessor need not have find paid any son claim in Order to be defended or indemnified. <br />8.3 Exemption eflessgr and Its Agmis from Whiney. Notwithstanding the negligence or breach of this fease by tessmar Its agents, neither Lessor nor its <br />agents shall be gone under any circumstances for: III injury or damage to the person or goods. wares, merchandise or other property of lessee, Lessee's employees, <br />contractors, inydees, customers, or any other person in or about the P,mses, whether such damage or injury Licensed by or results from flre, steam, electlidty, gas, <br />water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other cents of pipes, fire sprinklers, wires, appliances, plumbing, <br />HVAC or lighting fixtures, at fiom any other cause, whether the said injury or damage results from croa itians arising upon the Premises or upon other pertions fthe <br />building of which the Premises are a part, or from other sources or places, (fil any damages arising from any an or neglect of any other tenant of Lessor or from the <br />Mfiure of Leswror its agents to enforce the provolons of any other lease in the prolept or jail injury to Lessee's business or for any loss Of income or profit therefrom. <br />Instead, it Is intended that lessee's ale recourse in the event of such damages or injury be to fife a claim on the insurance Policy ins)that Lessee is required to <br />maintain pursuant to the provisions of pamgraph & <br />8.9 Rtllum to Pmvide insuance. Lessee acknowledges that any failure an its part toohtain or memen the insurance required herein and; expose Lesson. <br />risks and potentially cause tessorto hoar.=not contemplated by this lease, the extent of which will he extremelydifficult to ascertain. Accwdinglg M, any month <br />or portion thereof that lessee does not maintain the required Imuance and/ar does oat provide Lessor with the nation l binders Or ce"dficale, evidencing the <br />Funtence of the mounted Imamate, the Base Rent shall be autamaUcaliy increased, without any requirement for notice to Lessee, by an amount equal to ID%of the <br />then existing Base Rent ar$100, whichever is greater. The parties agree that such imre use in Base Rent represents fair and reasonable compenation for the <br />additional risk/casts thatteesur will hour by reason of Lessee's failure to maintain the required insurance. Such increase In Base Rent shall in no event constRute a <br />waiver of Lessees Default or Breach with respect to the Miime to malmen such insurance. prevent the exercise of any or the other rights and remedies granted <br />hereunder, oar relieve Lessee of its obiiffativn to maintain the insurance specified in this Lease. <br />9. Damage O, Dest,acdon. <br />9.1 Definitfory, <br />fa) "Premises Partial Damage -shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility <br />Imbilamus, which can reasonably be repaired in 6 months carless from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days <br />from the date ar the damageor destruction as towhether or not the damage is Partial or Total. <br />jb) "Premises Total Destructon"shag meandamagevr destrurmatto the Premhses,otherthan Lessee Owned ABeagFm and Ubfnylastallidans and <br />Tade Fixtures, which anmt reasonably W repaired fan 6 manihsor less from the date of the damage or dlaWMon. Lessor shall notify lessee in wrilingwhhin 30 <br />days from she date ofthe damage ordestruction as to whetherormt the damage is Partial or Total. <br />(0 'Insured Ls' shall mean damage or destruction to lmprmementi On the Premises, other than Lessee Owned Alteratians and Way landamomand <br />Tade Fixtures,whichwascausedbyaneventrequiredmbecoveredbytheinsuancedesadbedfan Paragraph$3(a),inespe veofanydWuctibleamountsor <br />coyeage limits involved. <br />(d) "RePlacementCost' shall mean the cost to repairer rebuild the improvements owned by iesorat the time of the occurrence to their condMan <br />existing immediately prior thereto, Including demolition, debris removal and upending required by the operation ofApplicabie Requirements, and without decoction <br />for depreciation. <br />(a) "Naxardaus Substance Condftion" shall mean the occurrence or discovery ofa coauto.. imadwag thepresenu of, or a contamination by,a <br />Hazardous Substance, in, on, or under the Premises which requires restoauon. <br />9.2 Rental Wastes. banned Loss. If a Premises pom, Damage that is an Insured Loss occurs, then Lessor shall. atLessor's expense, repair such damage (bill <br />Fiat Lessee's Tradel"Wares or lessee Owned Alteadans and Utility installations) as soon as musona6y possible and this Lease shall onHrwe in full force and effect; <br />provided, however, Mat Lessee shall, at Lessor's afectlear, Make the repair of any damage or destruction the total cost to rapid, of which is $10.000 or less, and, in such <br />evens lessor sha0make anyapplirabie insuance proceeds available tv lessor on a reasanabie basis for that purpose. Natwi mooding the foregen , if the renneed <br />insuawe was net in Mrcewthe insuame proceeds are not sufficient to effect such repail, the Insuring Parry, shall promptly contribute the shortage in proceeds <br />(exceptas to the deductible which Is I(eee'snesponsibfiity) as and when inquire lm complete said repairs. In the event,however, such shortage aasdue to the fact <br />that, by Mason of the unique nature ufthe improvements, full replacement cost insurance cave age was noteommercfally reasonable and available, Lessorshaii have <br />noobiigadon to pay far the shortage in insuance proceeds or to fully lesions the unique aspectsof the Premises unless Lessee proyides Lessor with the funds to cover <br />same, ar adequate assuance thereaF, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives sold funds or <br />adequate aseaance theleofwithin said 10 day period, the pan, respomnble far making the repairs shall complete them as soon as reasonably possibleend this Lease <br />shall remain in full force and effect. If such funds of assurance are not received, Lessor may nevertheless elect by written nobce or Lt." within 10 days thereafter <br />fa: 6) make such mstoahon and mpahas is mmmemialiy reasonable with Lessor paying any shortage in proceed, fan which ot <br />se this tease shall remain tug force <br />and effect a, till have this tease terminate 30 days lAereafter. Lessee shall not be entitled to reimbursement Of any tends contdhuted by Lessee t0 repair airy such <br />damage qr tlestrucbon. Premises Partial Damage due to flood or earthquake shall be sabjact to Paragraph 9.3, notwithstanding that mare may be some insurance <br />carnage, but the net Pmceencif any such insurance shall be made available for the repairs dmatle by either Party. <br />9.3 Partial Damage-Uniroured loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused bea negligent or willful act of Lessee fill <br />which even[ Lesseeshall make the repairs at Lessee's expense), Lessor mayeither: (i) repair such damage as ram as reasonably possible at Lester s expense, in which <br />event this Lease shall condom talon farce and effect, or (ii)terminate this Lease by gvingwritten notice to lessee within 30 days after receipt by Lessor of knowledge <br />of the occurrence of such damage. San termination shall be effecfive 60 days following the dare of such notice. Inihe evem twat elects to terminate this lease, <br />Lessee shall have the right within 10 days after receipt of the termination notice an give written retire Lessorof Lessee's commitment to pay far the "'pair of such <br />damage without reimbursement from lessor, Lessee shall provide Lessor with said funds or adsMctary assurance thereof within 30 days after making such <br />commit e.lit. In such cannot this Lease shall continue in full Mile and effect, and Lessor shall proceed to make such repairs as soon as nOssam ay possible after the <br />requtredfunds are available. If Lessee does not make the required cnmmiamenq this Lease shall terminate as of the date specified in the teftanoman mUce. <br />9.4 ToaiDaVudbn.Notwithstanding any other provision hereal, ifa Premise Total Desvuctom occurs, this Lease shall terminate 60 days fallowing such <br />Destruction. If the damage or destruction was caused by the gross negligence or MUM misconduct of Lessee, Lessor shall have the right to recover L sssorr's damages <br />from Lessee, except as provided in Paagaph 8.6, <br />9-S Damage NesrEMaf'Rema. Ifat anytime dam, the test 6 months ofthis Lease there is damage for which themst tOmPair eunialsom manth's Base Rent, whether or not an Insured toss, Lessor may terminate this lease effective W days fallowing the date of occurrence of such damage by gwiog a written <br />tuldimabon notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, it Lessee A that time has an exercisable <br />j(/CI� E� Page 7 of 16 <br />INITIALS Last Edited: 3/18/20206:29 PM NI <br />0 2017AIR CRE. All Rights Reserved. SM-27.20, Revised 11-01-2017 <br />