Common use of Abatement for Untenantability Clause in Contracts

Abatement for Untenantability. Notwithstanding any contrary provisions in this Lease, if the Premises or any portion thereof are rendered untenantable and are not used by Tenant for the operation of its business for a period of more than two (2) consecutive business days (the “Eligibility Period”) as a result of (i) failure in the water, sewage, air conditioning, heating, ventilating, vertical transportation or electrical systems of the Building Property, (ii) Landlord’s failure to perform and complete any repair it is required to make to the Premises under the terms of this Lease, or (iii) any entry by Landlord into the Premises which actually interferes with Tenant’s ability to conduct its business therein for general office uses, Tenant’s Rent shall be reduced and abated after the expiration of the Eligibility Period for such time as the Premises or such portion thereof remain untenantable and are not used by Tenant for the operation of its business, in the proportion that the Rentable Area of the portion of the Premises rendered untenantable and not used by Tenant bears to the total Rentable Area of the Premises. Notwithstanding the foregoing, there shall be no abatement of Rent if the failure of Building Systems is caused primarily or entirely by the negligence or willful misconduct of Tenant, its agents, employees, contractors or licensees. Notwithstanding the foregoing, during any Rent abatement under this Lease, Tenant shall pay Landlord Additional Rent that would otherwise be required under this Lease for all services and utilities provided to and actually used by Tenant during the period of the Rent abatement.

Appears in 3 contracts

Samples: Office Lease (New Century Financial Corp), Office Lease (New Century Financial Corp), Office Lease (New Century Financial Corp)

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Abatement for Untenantability. Notwithstanding any contrary provisions in this Lease, if If the Premises or any portion thereof are rendered untenantable and are not used by Tenant for the operation of its business for a period of more than two five (25) consecutive business days or twelve (12) business days in any twelve (12) month period (the “Eligibility Period”) as a result of (i) failure in the water, sewage, air conditioning, heating, ventilating, vertical transportation ventilating or electrical systems of the Building PropertyProject, or (ii) Landlord’s failure as a result of any Damage (as defined in Section 12.1) (any such event described in clauses (i) and (ii) hereinabove shall be sometimes referred to perform and complete any repair it is required to make to the Premises under the terms of this Lease, or (iii) any entry by Landlord into the Premises which actually interferes with Tenant’s ability to conduct its business therein for general office usesas an “Abatement Event”), Tenant’s Rent rent shall be reduced and abated after the expiration of the Eligibility Period for such time as the Premises or such portion thereof remain untenantable and are not used by Tenant for the operation of its businessTenant, in the proportion that the Rentable Area of the portion of the Premises rendered untenantable and not used by Tenant bears to the total Rentable Area of the Premises. Notwithstanding the foregoing, provided, however, there shall be no abatement of Rent if rent: (a) to the extent Landlord provides to Tenant other space in the Project which is reasonably suited for the temporary operation of Tenant’s business, (b) to the extent the Damage or failure of Building Systems is caused primarily in whole or entirely in part by the negligence negligent or willful misconduct acts or omissions of Tenant, its agents, employees, contractors contractors, licensees or licenseesinvitees, or (c) to the extent the rent abatement is not actually covered by rental loss insurance, which Landlord agrees to carry so long as such coverage is available on commercially reasonable terms. However, if due to the causes referred to in the first sentence of this Article 6, any portion of the Premises is rendered untenantable for a period of time in excess of the Eligibility Period, and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its business therein, and if Tenant does not conduct its business from such remaining portion, then for such time after expiration of the Eligibility Period during which Tenant is so prevented from effectively conducting its business therein, the rent for the entire Premises shall be abated; provided, however, if Tenant reoccupies and conducts its business from any portion of the Premises during such period, the rent allocable to such reoccupied portion, based on the proportion that the Rentable Area of such reoccupied portion of the Premises bears to the total Rentable Area of the Premises, shall be payable by Tenant from the date such business operations commence. Notwithstanding the foregoing, during any Rent rent abatement under this Lease, Tenant shall pay Landlord Additional Rent that would otherwise be required under this Lease for all services and utilities provided to and actually used by Tenant during the period of the Rent rent abatement. To the extent rental loss insurance carried by Landlord, the premiums for which are included in Direct Expenses, covers rent loss for any portion of the Eligibility Period, the Eligibility Period shall be reduced to the extent of such coverage. If the untenantability of the Premises with respect to an Abatement Event described in clause (i) of this Article 6 continues for thirty (30) consecutive days, the same shall be considered an event of Damage under Article 12, and Landlord shall be obligated to give the Repair Notice specified in Section 12.3 as soon as reasonably possible and in any event within thirty (30) days after the expiration of said thirty (30) day period.

Appears in 1 contract

Samples: Office Lease (Genius Products Inc)

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