2007-09-24 Agenda - Laserfiche WebLink

Home Browse Search

Improvements, and Lessee shall be responsible for any repairs required because of defects in workmanship or materials, or any other cause. Any impermanent structure that is purchased and installed at the cost of the Lessee, shall be the sole property of Lessee. Such structure shall be insured to the same extent as provided in Section 14. Any and all insurance proceeds from the loss to or of the structure shall be the sole and exclusive property of the Lessee. If at any time this Lease is terminated, Lessee has 60 days to remove and retain at its cost such impermanent structure upon the condition that the premises be returned back to such condition that existed prior to the installation of such structure. If the structure is not removed within 60 days of the termination of the Lease, the Lessor has the option to remove the structure at Lessee’s cost or keep the structure at which time it becomes the sole property of the Lessor. DAMAGE OR DESTRUCTION. 13. (a) If the Buildings shall be totally destroyed or partially destroyed to the extent that damage exceeds 50% of the then value of the Buildings, either party may elect to terminate this Lease by providing the other party sixty (60) days prior written notice within sixty (60) days after the occurrence of the damage or destruction. Upon such termination of this Lease, the insurance proceeds from the insurance policy provided for in Section 14 shall be divided into two parts. The first part shall be an amount equal to the Initial Renovation Costs (as defined herein), and the second part shall be the excess of said insurance proceeds over the first part. The amount that is the first part shall be divided between Lessor and Lessee based on the Initial Renovation Costs being amortized on a straight line basis over the initial twenty-five (25) year term of the Lease, with Lessee’s portion being based on a fraction with the numerator being the number of years remaining in the original 25-year term and the denominator being twenty-five (25). By way of example, if the Lease is terminated in year 15, assuming the Initial Renovation Costs equaled $200,000, and the insurance proceeds resulted in a payment of $250,000, Lessee would received $80,000 ($200,000 x 10/25 = $80,000) and Lessor would receive the remaining funds equal to $170,000. The amount that is the second part shall be the sole and exclusive property of Lessor. If neither party elects to terminate the Lease, Lessee shall rebuild the Buildings as provided in Section 13 (b) . (b) In the event the destruction or damage to the Buildings is less than 50% of the then value of the Buildings at the time of such destruction or damage, then Lessee may elect by giving Lessor written notice within sixty (60) days after said occurrence that it intends to restore and rebuild the Buildings as soon as possible to the same condition as existed immediately prior to the destruction or damage, using the receipt of insurance proceeds to the extent required and any additional monies which may be required. Said restoration and rebuilding work shall be done and performed in compliance with the provisions of Section 13(a). In the event Lessee, in its sole discretion, elects not to restore and rebuild the Buildings as provided above, then Lessee shall give Lessor written notice within sixty (60) days of said occurrence that it does not intend to restore and rebuild the Buildings, which event shall produce and work a termination of this Lease. Upon such termination of this Lease the insurance proceeds from the fire and extended coverage insurance policy provided for in Section 14 shall be divided as provided in Section 13 (a). FIRE AND EXTENDED COVERAGE INSURANCE. 14. (a) Lessee agrees to provide, at its sole cost and expense, at all times after the date of this Lease, insurance providing protection against any perils included within the classification “fire and extended coverage” together with insurance against sprinkler damage, earthquake, vandalism and malicious mischief in an amount not less than the full functional replacement cost of the Buildings, including Lessee’s improvements. Said insurance shall be written in the standard form generally in use in the State of Missouri with insurance companies having a current “Best” rating of not less than A and a financial rating not less than Class VII and authorized to do business in the State of Missouri, except that Lessee may elect to self-insure until October 1, 1998. H-5-e September 24, 2007