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attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with,a Breach of the Lease by Lessee and/or the use and/or
<br />occupancy of the Premises and/or Project by Lessee and/or by Lessee's employees, contractors or invitees. If any action or proceeding is brought against Lessor by
<br />reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall
<br />cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.
<br />8.8 Exemption of lessor and its Agents from liability. Notwithstanding the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its
<br />agents shall he liable under any circumstances for: (1) Injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees,
<br />contractors, invitees, customers, or any other person in or aboutthe Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas,
<br />water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or otherdefects of pipes, fire sprinklers, wires, appliances, plumbing,
<br />HVAC or lighting fixtures, or from any other muse, whether the said injury or damage results from conditions arising upon the Premises or upon other portions ofthe
<br />building of which the Premises are a part, or from other sources or places, (it) any damages arising from any act or neglect of any other tenant of lessor or from the
<br />failure of Lessor or its agents to enforce the provisions of any other lease in the Project, or (iii) injury to Lessee's business or for any loss of income or profit therefrom.
<br />Instead, it is intended that Lessees sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to
<br />maintain pursuant to the provisions of paragraph 8.
<br />8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessorto
<br />risks and potentially muse Lessorto incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, for any month
<br />or portion thereof that Lessee does not maintain the required insurance and/or does not provide lessor with the required binders or certificates evidencing the
<br />existence of the required insurance, the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10%of the
<br />then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the
<br />additional risk/costs that Lessor will incur by reason of Lessee's failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a
<br />waiver of Lessee's Default or Breach with respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted
<br />hereunder, nor relieve Lessee of Its obligation to 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 Lessee Owned Alterations and Utility
<br />Installations, which can reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days
<br />from the date of the damage or destruction as to whether or not the damage is Partial or Total.
<br />(b) "Premises Total Destruction" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and
<br />Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30
<br />days from the date ofthe 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 Alterations and Utility Installations and
<br />Trade Fixtures, which was mused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or
<br />coverage limits involved.
<br />(d) "Replacemerrt Cost" shall mean the costto repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition
<br />existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction
<br />fordepreciation.
<br />(e) "Hazardous Substance Condition" shall mean the occurrence or discovery of condition involving the presence of, or a contamination by, a -
<br />Hazardous Substance, in, on, or under the Premises which requires restoration.
<br />9.2 Partial Damage- Insured Loss. If Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage (but
<br />not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shalt continue in full force and effect;
<br />provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such
<br />event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, ifthe required
<br />insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds
<br />(except as to the deductible which is Lessee's responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact
<br />that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have
<br />no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover
<br />same, or adequate assurance thereof, within 10 days following receipt of written notice or such shortage and request therefor. H Lessor receives said funds or
<br />adequate assurance thereof within said 30 day period, the parry responsible for making the repairs shall complete them as soon as reasonably possible and this Lease
<br />shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter
<br />to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force
<br />and effect, or (it) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such
<br />damage or destruction. Premises Partial Damage due to Rood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there maybe same insurance
<br />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 not an Insured Loss occurs, unless mused bya negligent or willful act of Lessee (in
<br />which event Lessee shall make the repairs at Lessees expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor's expense, in which
<br />event this Lease shall continue in full force and effect, or (it) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge
<br />of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease,
<br />Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such
<br />damage without reimbursement from Lessor. Lessee shauprovide Lessor with said funds or satisfactory assurance thereof within 30 days after making such
<br />commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the
<br />required funds areavailable. IfLessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.
<br />9.4 Total Destruction. Notwithstanding any other provision hereof, R a Premises Total Destruction occurs, this Lease shall terminate 60 days following such
<br />Destruction. If the damage or destruction was mused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's damages
<br />from Lessee, except as provided in Paragraph 8.6.
<br />9.5 Damage Near End of Term. If at anytime during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base
<br />Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written
<br />termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable
<br />option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage
<br />in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee's receipt of
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<br />© 2017 AIR CRE. All Rights Reserved.
<br />STG-27.20, Revised 11M-2017
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