Circuit City 1997 Annual Report Download - page 38

pay insurance cost within fifteen days (15) days after Tenant's receipt of statement from Landlord determining Tenant's share of the insurance
cost. The foregoing notwithstanding, upon notice from Landlord, Tenant shall pay as additional rent Tenant's share to Landlord in advance
monthly installments equal to one twelfth (1/12) of Landlord's reasonable estimate of Tenant's share of the insurance premiums payable under
this Lease, together with monthly installments of base rent, and Landlord shall hold such payments in a non-interest bearing account. Landlord
shall determine and notify Tenant of any deficiency in the impound account and Tenant shall pay any deficiency of funds in the impound
account within fifteen days (15) days after Tenant's receipt of statement from Landlord determining Tenant's share of the actual insurance cost.
If Landlord determines that Tenant's impound account has accrued an amount in excess of Tenant's share, then such excess shall be credited to
Tenant within said notice from landlord. Notwithstanding any contribution by Tenant to the cost of insurance premiums as provided herein,
Tenant acknowledges that it has no right to receive any proceeds from any insurance policies carried by Landlord.
17. DESTRUCTION.
If during the Term of this Lease, any portion of the Premises, access to the Premises or any part of the PROJECT which is essential to the use
of the Premises is damaged or destroyed and such damage or destruction can, in Landlord's reasonable estimation, be repaired within 180 days
following such damage or destruction, this Lease shall remain in full force and effect and Landlord shall promptly commence to repair and
restore the damage or destruction to substantially the same condition as existed prior to such damage and shall complete such repair and
restoration with due diligence in compliance with all then existing laws. If (1) such damage or destruction cannot, in landlord's reasonable
estimation, be repaired within 180 days following such damage or destruction; or (2) more than forty percent (40%) of the Building is damaged
or destroyed (regardless of its impact on the Premises); or (3) any mortgage of the Building will not allow the application of insurance proceeds
to be applied to repair and restoration; or (5) the damage or destruction occurs within the last twelve
(12) months of the Term of this Lease or any extension hereof, then Landlord may, in its sole discretion, terminate this Lease by delivery of
notice to Tenant within 30 days of the date Landlord learns of the damage.
IN THE EVENT ANY MORTGAGE OF THE BUILDING DOES NOT ALLOW THE APPLICATION OF INSURANCE PROCEEDS TO
BE APPLIED TO REPAIR AND RESTORE THE BUILDING, LANDLORD SHALL REFUND TO TENANT ANY SPECIFIC PREMIUMS
COLLECTED FROM TENANT FOR THE PARTICULAR COVERAGE INVOLVED.
In the event of repair, reconstruction and restoration by Landlord as herein provided, the rent payable under this Lease shall be abated
proportionately BY AN AMOUNT IN THE SAME RATIO AS THE NUMBER OF SQUARE FEET IN THE DAMAGED PORTION OF
THE PREMISES BEARS TO THE TOTAL NUMBER OF SQUARE FEET OF THE PREMISES; provided that there shall be no abatement of
rent if such damage is the result of Tenant's negligence or intentional wrongdoing. Tenant shall not be entitled to any compensation or damages
for loss of the use of the whole or any part of the Premises, damage to Tenant's Personal Property and/or any inconvenience or annoyance
occasioned by such damage, repair, reconstruction or restoration.
If Landlord is obligated to or elects to repair or restore at herein provided, Landlord shall be obligated to make repair or restoration only to
those portions of the Building and the Premises which were originally provided at landlord's expense, and the repair and restoration of items
not provided at Landlord's expense shall be the obligation of Tenant. Tenant agrees to coordinate the restoration and repair of those items it is
required to restore or repair with Landlord's repair and restoration work and in coordination with a work schedule prepared by Landlord, or
Landlord's contractor. Further, Tenant's work shall be performed in accordance with the terms, standards and conditions contained in Paragraph
14 above.
The provisions of California Civil Code Section 1932, Subsection 2, and
Section 1933, Subsection 4, and any other similarly enacted statute or court decision relating to the abatement or termination of a lease upon
destruction of the leased premises, are hereby waived by Tenant; and the provisions of this PARAGRAPH 17 shall govern in case of such
destruction.
18. CONDEMNATION.
(a) DEFINITIONS. The following definitions shall apply: (1) "Condemnation" means (a) the exercise of any governmental power of eminent
domain, whether by legal proceedings or otherwise by condemnor and (b) the voluntary sale or transfer by Landlord to any condemnor either
under threat of condemnation or while legal proceedings for condemnation are proceeding; (2) "Date of Taking" means the date the condemnor
has the right to possession of the property being condemned; (3) "Award" means all compensation, sums or anything of value awarded, paid or
received on a total or partial condemnation; and (4) "Condemnor" means any public or quasi-public authority, or private corporation or
individual, having a power of condemnation.
(b) OBLIGATIONS TO BE GOVERNED BY LEASE. If during the Term of this Lease there is any taking of all or any part of the Premises or
the Project, the rights and obligations of the parties shall be determined pursuant to this Lease.
(c) TOTAL OR PARTIAL TAKING. If the Premises are totally taken by condemnation, this Lease shall terminate on the date of taking. If any
portion of the Premises is taken by condemnation, this Lease shall remain in effect, except that Tenant can elect to terminate this Lease if the
remaining portion of the Premises is rendered unsuitable for Tenant's continued use of the Premises. If Tenant elects to terminate this Lease,
Tenant must exercise its right to terminate by giving notice to Landlord within 30 days after the nature and extent of the taking have been
finally determined. If Tenant elects to terminate this Lease, Tenant shall also notify Landlord of the date of termination, which date shall not be
earlier than 30 days nor later than 90 days after Tenant has notified landlord of its election to terminate; except that this Lease shall terminate
on the date of taking if the date of taking falls on a date before the date of termination as designated by Tenant. If any portion of the Premises is
taken by condemnation and this Lease remains in full force and effect, on the date of taking the rent shall be reduced by an amount in the same