THIS LEASE,
made as of the 31st day of March, 2000, by and between the
Landlord and Tenant hereinafter defined in Sections 1(a) and 1(c),
respectively.
1. Basic
Lease Provisions .
The following
sets forth basic data hereinafter referred to in this Lease and,
where appropriate, constitute definitions of the terms hereinafter
listed:
(a)
Landlord : FCN Associates, L.L.C., a Michigan
limited liability company.
(b) Landlord's Address : 26877
Northwestern Highway, Suite 101, P.O. Box 70, Southfield, Michigan
48037-0070.
(c) Tenant : MGC Communications,
Inc. d/b/a Mpower Communications Corp., a Nevada
corporation.
(d) Tenant's
Address : 3301 North Buffalo Drive, Las Vegas, Nevada
89129
(e) Building : That certain office
building known as 300 Galleria Officentre located
in the City of Southfield, County of Oakland and State of
Michigan.
(f) Demised Premises : The premises known
as Suite 100 , located on the first
floor of the Building, containing approximately
12,079 square feet of usable floor area and
13,529 square feet of rentable floor area as shown
on the floor plan attached hereto as Exhibit "A".
(g ) Commencement Date : June 1,
2000 (provided that in the event Tenant shall occupy the switch
room area prior to June 1, 2002, the Lease shall commence on a
pro-rata basis as to the switch room area and any ancillary areas
used in connection therewith on the date Tenant so occupies the
switch room area).
(h) Expiration Date : The last day of the
one hundred twentieth (120 th )
complete calendar month following the Commencement Date.
a. For the
period beginning on the Commencement Date and
ending on May 31, 2001 , Basic Rental shall be
$25,930.58 per month ($23.00 per
square foot per annum), provided in the event the Lease shall
commence as to the switch room area and ancillary areas prior to
June 1, 2000 pursuant to Section 1(g) above, then the Basic Rental
payable for the period beginning on the Commencement Date and
ending on May 31, 2000 shall be prorated based upon the total
rentable area of the switch room area and ancillary areas so
occupied;
b. For the period beginning on June 1,
2001 and ending on May 31, 2002 , Basic
Rental shall be $26,494.29 per month (
$23.50 per square foot per annum);
c. For the period beginning on June 1,
2002 and ending on May 31, 2003 , Basic
Rental shall be $27,058.00 per month (
$24.00 per square foot per annum);
d. For the period beginning on June 1,
2003 and ending on May 31, 2004 , Basic
Rental shall be $27,621.71 per month (
$24.50 per square foot per annum);
e. For the period beginning on June 1,
2004 and ending on May 31, 2005 , Basic
Rental shall be $28,185.42 per month (
$25.00 per square foot per annum);
f. For the period beginning on June 1,
2005 and ending on May 31, 2006 , Basic
Rental shall be $28,749.13 per month (
$25.50 per square foot per annum);
g. For the period beginning on June 1,
2006 and ending on May 31, 2007 , Basic
Rental shall be $29,312.83 per month (
$26.00 per square foot per annum);
h. For the period beginning on June 1,
2007 and ending on May 31, 2008 , Basic
Rental shall be $29,876.54 per month (
$26.50 per square foot per annum);
i. For the period beginning on June 1,
2008 and ending on May 31, 2009 , Basic
Rental shall be $30,440.25 per month (
$27.00 per square foot per annum); and
j. For the period beginning on June 1,
2009 and ending on May 31, 2010 , Basic
Rental shall be $31,003.96 per month (
$27.50 per square foot per
annum).
(j) Base Expenses : Expenses (as defined
in Section 14.1(a) hereof) incurred for the 2000
calendar year.
(k)
Deposit : $31,003.96 .
(l) Renewal
Option : Two (2) five (5)-year options (see Article 29
hereof).
(m) Tenant
Improvement Allowance . $90,238.43 (
$6.67 per rentable square foot).
2.1 Landlord,
in consideration of the rents to be paid and the covenants to be
performed by Tenant, and upon and subject to the terms and
provisions herein set forth, does hereby lease unto Tenant the
demised premises described in Section 1(f) hereof together with the
non-exclusive right and easement to use the exterior and interior
common and public areas and facilities which may from time-to-time
be furnished by Landlord, including parking areas and decks (other
than the enclosed parking garage), in common with Landlord and the
tenants and occupants (their agents, employees, customers and
invitees) of the Building and of adjacent buildings now or
hereafter constructed (such exterior and interior common areas and
facilities to be hereinafter referred to as the "common
areas").
2.2 Landlord
reserves the right (a) to designate certain parking areas for the
exclusive use of designated tenants or for short term parking, (b)
to make changes, alterations, additions, improvements, repairs or
replacements in or to the Building (including the demised premises)
and the fixtures and equipment thereof as well as the interior and
exterior common areas, including the construction of additional
buildings and parking decks; (c) to eliminate, substitute and/or
rearrange the interior and exterior common areas as Landlord deems
appropriate in its discretion, and (d) to erect, maintain and use
pipes, ducts, conduits and wires in and through the demised
premises in locations which will not materially interfere with
Tenant's use thereof.
2.3 Landlord
hereby grants to Tenant, with no additional payment to Landlord,
the right, at Tenant's sole cost and expense, and on a
non-exclusive basis, to install and operate such conduits, fiber
optic and other cables and materials (the "Connecting Equipment")
in the existing shafts, ducts, conduits, chases, utility closets
and other facilities of the Building, as is necessary or desirable
to connect Tenant’s equipment in the demised premises to
Tenant's customers in the Building, to Tenant's communications
network and to any local telephone company. All work by Tenant
pursuant to this Section 2.3 shall be performed in accordance with
Article 8 hereof. Landlord further grants to Tenant a right of
access at all times to the areas where such Connecting Equipment is
located for the purpose of maintaining, repairing, testing and
replacing the same, provided (a) Tenant agrees to comply with
Landlord's reasonable rules and regulations regarding access to the
Building during non-business hours, and (b) Tenant shall not have
the right to enter any other tenant space or non-public space in
the Building other than the demised premises without the prior
consent of Landlord.
3. Term and
Construction .
3.1 The term of
this Lease shall commence on the Commencement Date (as defined in
Section 1(g) hereof) and expire on the Expiration Date (as defined
in Section 1(h) hereof), subject to any extensions pursuant to
Article 29 hereof.
3.2 Tenant
shall accept the demised premises in their then "as is" condition
as of the Commencement Date, and Tenant acknowledges that no
representations as to the condition of the demised premises have
been made by Landlord or its agents (except as expressly set forth
in this Lease), and no obligations as to renovating, improving or
adding to the same have been assumed by Landlord (except as
expressly set forth in this Lease). Any changes, alterations or
improvements which Tenant wishes to make to the demised premises
shall be made at Tenant's sole cost and expense and in accordance
with Article 8 and Exhibit “C” hereto. Landlord shall
use its best efforts to substantially complete the Tenant
Improvement Work (as defined in Exhibit "C" attached hereto) and
obtain all governmental approvals required for the occupancy of the
demised premises within sixty (60)
days following the approval by Tenant of the
Tenant Improvement Cost (as defined in Exhibit "C") subject to any
long lead items
Tenant shall
pay to Landlord as rent for the demised premises the Basic Rental
set forth in Section 1(i) hereof. The installment of Basic Rental
payable with respect to the first month of the
term hereof shall be payable upon the execution of this Lease, and
thereafter the Basic Rental shall be paid, in advance, upon the
first day of each and every successive calendar month after the
first month throughout the term of this Lease;
provided, however, that if the Commencement Date is other than the
first day of a calendar month or the Expiration Date is other than
the last day of a calendar month, then the rental for such first or
last fractional month shall be such portion of the monthly rental
then in effect as the number of days in such fractional month bears
to the total number of days in the calendar month.
The demised
premises shall be used and occupied for office use and for the
operation of a telecommunications facility and purposes incidental
thereto and for no other purposes without the written consent of
Landlord. Tenant shall comply with all requirements of the
insurance policies, the American Insurance Association and the
National Fire Protection Association relating to the demised
premises and the Building, and Tenant shall not use the demised
premises in any manner which will in any way increase the existing
rate of, or otherwise affect, any fire or other insurance upon the
demised premises or the Building, or adversely affect or interfere
with any services required to be furnished by Landlord to Tenant or
to any other tenants or occupants of the Building or with the
proper and economical rendition of any such service. Tenant shall
not use the demised premises for any purpose in violation of any
law, municipal ordinance, or regulation, nor shall Tenant perform
any acts or carry on any practices which may injure or cause waste
in or about the demised premises or the Building or be a nuisance,
disturbance or menace to the other tenants of the Building. Tenant
shall not use, store or place in or upon the demised premises any
toxic or hazardous substances or materials. Tenant shall comply
with any occupancy certificate or directive issued pursuant to any
law by any public officer as well as the provisions of all recorded
documents affecting the demised premises, insofar as they relate to
the condition, use or occupancy of the demised premises. If any use
of the demised premises shall cause the rate of insurance on the
Building to be increased, Tenant shall pay the amount of any such
increase.
6. Utilities
and Services .
6.1 Landlord
will arrange for the furnishing of electricity to the demised
premises, and Tenant shall pay for such electricity at the
applicable secondary rates dictated by Detroit Edison. Such charge
to Tenant for electricity shall be payable, as additional rent, in
monthly installments payable within thirty (30) days following
receipt of an invoice from Landlord.
6.2 Landlord
shall furnish the demised premises with (a) heat, ventilation and
air conditioning to the extent required for the occupancy of the
demised premises to standards of comfort, and during such hours, as
reasonably determined by Landlord for the Building (which hours,
until Landlord shall otherwise designate, shall be from 7:00 a.m.
to 7:00 p.m. on weekdays and from 8:00 a.m. to 3:00 p.m. on
Saturdays; in each case except holidays), or as may be prescribed
by any applicable policies or regulations adopted by any utility or
governmental agency, provided Landlord shall not be required to
provide supplemental ventilation and air conditioning to the
demised premises required by reason of heat generating equipment or
lighting other than building standard lights, or if the demised
premises shall be occupied by a number of persons in excess of the
design criteria of the air conditioning system, or to accommodate
any other extraordinary ventilation or air conditioning
requirements of Tenant, and (b) elevator service. It is
understood and agreed that the Basic Rental does not include
janitorial services in the demised premises. In the event Tenant
desires to receive janitorial services in any portion of the
demised premises, Tenant shall pay the cost of such
services. In addition, Landlord shall replace all burned
out fluorescent (only) tubes, ballasts and starters.
Landlord shall
not be in default hereunder or be liable for any damages directly
or indirectly resulting from, nor shall the rental herein reserved
be abated or an actual or constructive eviction or partial eviction
be deemed to have occurred by reason of: (1) the installation, use
or interruption of use, of any equipment in connection with the
furnishing of any of the foregoing services, (2) failure to furnish
or delay in furnishing any such services when such failure or delay
is caused by accident or any condition beyond the reasonable
control of Landlord or by the making of necessary repairs or
improvements to the demised premises or to the Building, or (3) any
limitation, curtailment, rationing or restriction on use of water,
electricity, steam, gas or any other form of energy serving the
demised premises or the Building. Landlord shall use reasonable
efforts diligently to remedy any interruption in the furnishing of
such services.
Notwithstanding
the preceding paragraph, in the event that Tenant is prevented from
using, and does not use, the demised premises or any portion
thereof, for more than five (5) consecutive business days as a
result of any failure of Landlord to provide services to the
demised premises as a result of the negligence or willful act of
Landlord, its agents, contractors or employees, then Tenant's Basic
Rental and additional rent shall be abated or reduced, as the case
may be, after expiration of the 5-day period for such time that
Tenant continues to be so prevented from using the demised premises
or a portion thereof, in the proportion that the rentable area of
the portion of the demised premises that Tenant is prevented from
using, and does not use, bears to the total rentable area of the
demised premises.
6.3 Tenant
shall pay, as additional rent, the cost of providing (i) all
heating, ventilating and air conditioning, including all related
utility costs, to the demised premises in excess of that required
to be provided by Landlord pursuant to Section 6.2 hereof, provided
Landlord shall have no obligation to provide heating, ventilating
or air conditioning to the extent same cannot be provided utilizing
the existing equipment servicing the Building, (ii) janitorial
service in excess of the service required to be provided by
Landlord pursuant to Section 6.2 hereof, and (iii) any other
special service required by reason of Tenant's use of the demised
premises during other than normal business hours or for other than
normal office purposes. Tenant shall notify Landlord in writing at
least forty-eight (48) hours prior to the time it requires heating,
ventilating and air conditioning during periods the same are not
otherwise furnished by Landlord pursuant to Section 6.2
hereof.
7.1 Landlord
shall maintain (i) the common areas, including any lobbies, stairs,
elevators, corridors and restrooms, (ii) the windows and exterior
walls, roofs, foundations and structure of the Building, and (iii)
the mechanical, plumbing and electrical equipment servicing the
Building, in good order and condition as reasonably determined by
Landlord. Notwithstanding the foregoing, Tenant shall pay the cost
of any repairs occasioned by the act, neglect or default of Tenant,
its agents, employees, invitees and contractors.
7.2 Subject to
the provisions of Section 7.1 hereof, Tenant shall keep the demised
premises and every part thereof (including any special equipment
installed in the demised premises such as supplemental HVAC
equipment, transformers, plumbing, and fire extinguishers, and any
other alterations, additions or improvements, whether installed by
Landlord or Tenant) in good condition and repair. All repairs made
by or on behalf of Tenant shall be made and performed in such
manner as Landlord may designate, by contractors or mechanics
approved by Landlord and in accordance with the rules and
regulations relating thereto annexed to this Lease as Exhibit "B"
and all applicable laws, codes and regulations. Subject to the
provisions of Article 8 hereof regarding the obligation to restore
improvements, Tenant shall, at the end of the term hereof,
surrender to Landlord the demised premises in the same condition as
when received, except for ordinary wear and tear, repairs required
to be made by Landlord, and damage by fire, earthquake, act of God
or the elements. Landlord has no obligation, and has made no
promise, to alter, remodel, improve, repair, decorate or paint the
demised premises or any part thereof and no representations
respecting the condition of the demised premises or the Building
have been made by Landlord to Tenant except as expressly set forth
herein.
7.3 In the
event that Landlord shall deem it necessary or be required by any
governmental authority to repair, alter, remove, reconstruct or
improve any part of the demised premises or of the Building, then
the same shall be made by Landlord with reasonable dispatch (unless
the same shall result from Tenant's act, neglect, default or mode
of operation, in which event Tenant shall make all such repairs,
alterations and improvements or, at Landlord's option, Landlord
shall make such repairs, alterations and improvements and shall be
promptly reimbursed by Tenant for the cost incurred by Landlord in
so doing), and should the making of such repairs, alterations or
improvements cause any interference with Tenant's use of the
demised premises, such interference shall not relieve Tenant from
the performance of its obligations hereunder nor shall such
interference be deemed an actual or constructive eviction or
partial eviction or result in an abatement of rental.
Notwithstanding the preceding sentence, in the event that Tenant is
prevented from using, and does not use, the demised premises or any
portion thereof, for more than five (5) consecutive business days
as a result of Landlord's performance of such work, then Tenant's
Basic Rental and additional rent shall be abated or reduced, as the
case may be, after expiration of the 5-day period for such time
that Tenant continues to be so prevented from using the demised
premises or a portion thereof, in the proportion that the rentable
area of the portion of the demised premises that Tenant is
prevented from using, and does not use, bears to the total rentable
area of the demised premises.
Tenant shall
not make any alterations, additions or improvements to the demised
premises (whether or not the same may be structural in nature) or
attach any fixtures or equipment thereto without Landlord's prior
written consent, which consent shall not be unreasonably withheld.
All such alterations, additions or improvements shall be performed
by contractors or mechanics approved by Landlord (which approval
shall not be unreasonably withheld) and in accordance with the
rules and regulations annexed hereto as Exhibit "B" and all
applicable laws, codes and regulations. Tenant shall furnish
Landlord with such sworn statements and waivers of lien as Landlord
shall request in connection with such work and shall comply with
such other reasonable safeguards and controls as Landlord shall
require. Any such alterations, additions or improvements made by
either party hereto to the demised premises shall become the
property of Landlord upon their installation or completion and
shall remain upon, and be surrendered with, the demised premises at
the expiration or termination of this Lease (except that Tenant
shall have the right to remove any trade equipment, emergency
generator and/or supplemental HVAC equipment installed by Tenant at
Tenant’s cost and expense, provided (i) Tenant shall repair
any damage caused by such removal, and (ii) in the event Tenant
desires to remove supplemental HVAC equipment servicing a
particular area, Tenant shall restore the base building system in
such area, including ductwork, diffusers and VAV boxes, to the
extent such improvements existed as of the date hereof).
Notwithstanding the foregoing, (i) Landlord may require Tenant to
remove any additions made by Tenant to the demised premises after
the completion of the Tenant Improvements (as defined in Exhibit
“C”) and to repair any damage caused by such removal
(so long as Landlord shall have indicated that such removal and
restoration may be required at the time Landlord consented to such
addition), and (ii) if Tenant has not removed its property and
equipment within ten (10) days after the expiration or termination
of this Lease, Landlord may elect to retain the same as abandoned
property.
9. Insurance
and Indemnification .
9.1 Landlord
shall provide and keep in force, or cause to be provided or kept in
force, during the term hereof: (a) commercial general liability
insurance with respect to Landlord's operation of the Building and
the common areas for bodily injury or death and damage to property
of others; (b) fire insurance (including standard extended coverage
endorsement perils and leakage from fire protection devices) in
respect of the Building and the common areas, excluding Tenant's
trade fixtures, equipment, personal property and leasehold
improvements; and (c) loss of rental income insurance; together
with such other insurance as Landlord, in its sole discretion,
elects to obtain. Insurance provided by Landlord shall have such
limits of liability, deductibles and exclusions, and shall
otherwise be on such terms and conditions as Landlord shall from
time to time determine reasonable and sufficient. Tenant
acknowledges that Landlord's loss of rental income insurance may
provide that (i) payments thereunder by the insurer will be limited
to a period of twelve (12) months following the date of any
destruction and damage, and (ii) no insurance proceeds will be
payable thereunder in the case of destruction or damage caused by
any occurrence other than fire and other risks included in the
standard extended coverage endorsement perils of a fire insurance
policy.
9.2 Tenant
shall indemnify and hold Landlord harmless from any damage to any
property or injury to or death of any person occurring in, upon or
about the demised premises, unless caused by the negligence or
willful act of Landlord, its agents or employees. The foregoing
indemnity obligation of Tenant shall include reasonable attorney's
fees, investigation costs and all other costs and expenses incurred
from the first notice that any claim or demand is to be made or may
be made. The provisions of this Section 9.2 shall survive the
termination of this Lease with respect to any damage, injury or
death occurring prior to such termination.
9.3 Tenant
shall procure and keep in effect commercial general liability
insurance, including property damage and contractual liability, on
an occurrence basis with bodily injury and property damage combined
single limits of liability of not less than Two Million Dollars
($2,000,000) per occurrence, insuring Landlord and Tenant against
any liability arising out of the ownership, use, occupancy or
maintenance of the demised premises and all areas appurtenant
thereto. From time to time, Tenant shall increase the limits of
such policies to such higher limits as Landlord shall reasonably
require.
9.4 Tenant
shall procure and keep in effect fire insurance (including standard
extended coverage endorsement perils and leakage from fire
protection devices) for the full replacement cost of Tenant's trade
fixtures, equipment, personal property and any leasehold
improvements installed by Tenant.
9.5 Tenant
shall deliver policies of the insurance required pursuant to
Sections 9.3 and 9.4 hereof or certificates thereof to Landlord on
or before the Commencement Date, and thereafter at least thirty
(30) days before the expiration dates of the then current policies.
Such insurance shall name Landlord as an additional insured, shall
specifically include the liability assumed hereunder by Tenant, and
shall provide that it is primary insurance and not excess over, or
contributory with, any other valid, existing and applicable
insurance in force for or on behalf of Landlord, and shall provide
that Landlord shall receive thirty (30) days notice from the
insurer prior to any cancellation or change of coverage.
10.
Assignment and Subletting .
10.1 Except as
expressly permitted pursuant to this Article 10, Tenant shall not,
without the prior written consent of Landlord, which consent shall
not be unreasonably withheld, assign, transfer, hypothecate, or
mortgage this Lease or any interest herein or sublet the demised
premises or any part thereof, or permit the use of the demised
premises by any party other than Tenant. Any assignment, transfer
(including transfers by operation of law or otherwise),
hypothecation, mortgage, or subletting without such written consent
shall give Landlord the right to terminate this Lease and to
re-enter and repossess the demised premises, but Landlord's right
to damages shall survive. No consent by Landlord to any assignment,
transfer, hypothecation, mortgage or subletting on any one occasion
shall be deemed a consent to any subsequent assignment, transfer,
hypothecation, mortgage or subletting by Tenant or by any
successors, assigns, transferees, mortgagees or sublessees of
Tenant. The acceptance of rental by Landlord from any other person
shall not be deemed a waiver by Landlord of any provision hereof.
In the event of any such assignment, transfer, hypothecation,
mortgage or subletting (including pursuant to Section 10.3 hereof),
Tenant shall remain fully and primarily liable to perform all of
the obligations of Tenant under this Lease and in the event of a
default hereunder, Landlord may proceed directly against Tenant
without the necessity of exhausting remedies against such assignee
or successor.
10.2 If at any
time or from time to time during the term of this Lease, Tenant
desires to sublet all or any part of the demised premises or to
assign this Lease, Tenant shall give notice to Landlord ("Tenant's
Subletting Notice") setting forth the proposed subtenant or
assignee and the terms of the proposed subletting or assignment.
Landlord shall have the option, exercisable by notice given to
Tenant within twenty (20) days after Tenant's Subletting Notice is
received, (a) to consent or refuse to consent thereto, (b) if
Tenant's request relates to a subletting, to terminate this Lease
as to the portion of the demised premises to be sublet, or (c) if
Tenant's request relates to an assignment, to terminate this Lease.
In the event Landlord shall consent to the proposed subletting or
assignment, Tenant shall be free for a period of one hundred eighty
(180) days thereafter to sublet such space or to assign this Lease,
provided that the subtenant or assignee and the terms of the
sublease or assignment shall be as set forth in Tenant's Subletting
Notice.
In the event
Tenant shall so sublet a portion of the demised premises or assign
this Lease, fifty percent (50%) of all of the sums or other
economic consideration received by Tenant as a result of such
subletting or assignment, whether denominated rentals or otherwise
under the sublease or assignment, which exceed, in the aggregate,
the total sums which Tenant is obligated to pay Landlord under this
Lease (prorated to reflect obligations allocable to that portion of
the demised premises subject to such sublease for the period of
time covered by such sublease and after deducting therefrom the
costs incurred by Tenant in connection with such sublease or
assignment, such as brokerage commissions and tenant improvement
costs) shall be payable to Landlord as additional rental under this
Lease without affecting or reducing any other obligation of Tenant
hereunder.
10.3
Notwithstanding the provisions of Sections 10.1 and 10.2 hereof,
(i) Tenant may assign this Lease or sublet the demised premises or
any portion thereof, without Landlord's consent and without
extending any option to Landlord, to any entity which controls, is
controlled by or is under common control with Tenant, provided that
said assignee assumes, in full, the obligations of Tenant under
this Lease, and (ii) Tenant shall have the right to enter into
co-location and similar agreements, without Landlord’s
consent and without extending any option to Landlord, with certain
suppliers, licensees and customers of Tenant to permit such parties
to install certain communications equipment in the demised premises
in order to interconnect with Tenant’s equipment or to permit
Tenant to manage or operate such parties’ equipment, or as
may be required pursuant to applicable law.
10.4
Notwithstanding anything to the contrary contained herein, Tenant
shall not have the right to assign this Lease or sublet any portion
of the demised premises (including pursuant to Section 10.3 hereof)
(i) for any medical or dental use, (ii) to any governmental or
quasi-governmental agency, (iii) for any use which will generate
substantially more pedestrian or automobile traffic than that
generated by Tenant, (iv) in violation of any recorded restrictions
applicable to the Building, (v) in violation of any provisions of
any leases covering the Building or adjacent buildings, nor (vi)
for any use which is incompatible with the operation of a
first-class office building.
11. Damage
or Destruction .
11.1 In the
event the demised premises or any portion of the Building necessary
for Tenant's use of the demised premises are damaged or destroyed
in whole or in part during the term hereof by fire or other
casualty insured against by Landlord's fire and extended coverage
insurance policy covering the Building, Landlord shall, at its own
cost and expense, repair and restore the same to tenantable
condition with reasonable dispatch, and during such time as any
portion of the demised premises is unusable by reason of such
damage, the rent herein provided shall abate in such proportion as
that part of the demised premises so rendered unusable bears to the
entire demised premises.
11.2
Notwithstanding the provisions of Section 11.1 hereof, if, in the
reasonable opinion of Landlord, (i) the demised premises cannot be
restored to tenantable condition within a period of one hundred
twenty (120) days following the commencement of such restoration
work, and/or (ii) the cost of performing such restoration work
exceeds the proceeds of such insurance by more than One Hundred
Thousand Dollars ($100,000), then Landlord shall not be required to
make any repairs and Landlord shall have the right to terminate
this Lease upon written notice to Tenant within sixty (60) days
after the date of such fire or other casualty, in which event (i)
this Lease shall terminate ninety (90) days following
Tenant’s receipt of such notice and Landlord and Tenant shall
be released from any and all liability thereafter accruing
hereunder, and (ii) Tenant shall remove any equipment or personal
property from the demised premises within ninety (90) days
following receipt of such notice.
11.3 If the
demised premises are to be repaired under this Article 11, Landlord
shall repair any injury or damage to the Building itself and the
leasehold improvements in the demised premises to be constructed or
installed by Landlord, excluding leasehold improvements in excess
of building standard. Tenant shall perform, and pay the cost of,
repairing any other improvements in the demised premises and shall
be responsible for carrying such casualty insurance as it deems
appropriate with respect to such other improvements. Tenant shall,
at its own cost and expense, remove such of its furniture and other
belongings from the demised premises as Landlord shall require in
order to repair and restore the demised premises.
11.4 Landlord
and Tenant do hereby waive and release each other of and from any
and all rights of recovery, claims, actions or causes of action,
against each other, their agents, officers and employees, for any
loss or damage that may occur (including, without limitation, loss
or damage to the demised premises, the Building, leasehold
improvements, personal property, furniture and fixtures) by reason
of fire, the elements or any other cause which could be insured
against under the terms of standard fire and extended coverage
insurance policies, regardless of cause or origin. Landlord and
Tenant shall each obtain from their respective insurers under all
policies of fire insurance maintained by either of them a waiver of
all rights of subrogation which the insurer of one party might have
against the other party consistent with the foregoing waiver, and
Landlord and Tenant shall each indemnify the other against any loss
or expense, including reasonable attorneys' fees, resulting from
the failure to obtain such waiver from their respective
insurers.
If all or any
substantial part of the demised premises shall be taken by any
public authority under the power of eminent domain, then this Lease
shall terminate as to the part so taken as of the date possession
of that part shall be taken, and Landlord and Tenant shall each
have the right to terminate this Lease upon written notice to the
other, which notice shall be delivered within thirty (30) days
following the date notice is received of such taking. In the event
that neither party hereto shall terminate this Lease, Landlord
shall, to the extent the proceeds of the condemnation award are
available (other than any proceeds awarded for the value of any
land taken), make all necessary repairs to the demised premises and
the Building to render and restore the same to a complete
architectural unit and Tenant shall continue in possession of the
portion of the demised premises not taken under the power of
eminent domain, under the same terms and conditions as are herein
provided, except that the rent reserved herein shall be reduced in
direct
|