Common use of Structural Maintenance Clause in Contracts

Structural Maintenance. Effective March 1, 2011 and notwithstanding anything to the contrary in Paragraph 11.A above, (i) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, roof structure and roof membrane (provided Landlord replaces the entire roof membrane) (but not the interior improvements or glazing) of the Building leased hereunder at Landlord’s cost; however, Landlord shall amortize the cost of such repairs or replacements not covered by an insured peril using an interest rate equal to the higher of (i) Landlord’s annual borrowing rate per annum or (ii) the prime rate of interest plus one per annum over the useful economic life of such repairs or replacements as determined by Landlord in its reasonable discretion in accordance with GAAP (“Amortized Cost”) and Tenant shall pay its Proportionate Share of said Amortized Cost monthly as Additional Rent over the term remaining in the Lease subject to Paragraph 50 of the Lease, plus Tenant’s Proportionate Share of the insurance deductible (if such damage is the result of an insured peril); provided Tenant has not caused such damage, in which event Tenant shall be responsible for one hundred percent (100%) of the insurance deductible and any such costs and expense not reimbursed to Landlord by insurance proceeds for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord within thirty (30) days of the invoice date. Tenant hereby waives all rights under, and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or any other defect in the Building that does not endanger the structural integrity of the building for which Tenant is or is not responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in its sole and absolute discretion, not to repair and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days of written notice from Landlord, if Tenant is responsible for the repair and/or replacement. In the event the Term of the Lease is extended for any reason whatsoever, Tenant’s Proportionate Share of the Amortized Cost of the earlier repair and/or replacement cost shall be increased to include the additional amount payable to Landlord due to the Extended Term of the Lease.

Structural Maintenance. Effective March 1, 2011 and notwithstanding anything to the contrary in Paragraph 11.A above, (i) Landlord shall repairmaintain in good condition and repair the structure of the Premises including the roof, including replacement related toroof membrane, damage to the structural shelldrains, gutters, downspouts, foundation, roof structure exterior walls, floor slab, parking areas, driveways and roof membrane (provided sidewalks. The sprinkler system suspended in the Premises shall be the sole responsibility of Tenant. Landlord replaces shall make all repairs becoming necessary by reason of any structural defect in the entire roof membrane) (but not the interior improvements or glazing) of the Building leased hereunder at Landlord’s costPremises; provided, however, that Landlord shall amortize not be required to make any repairs necessitated by reason of any act or omission by Tenant, its employees, agents, licensees, invitees or anyone entering the cost of such repairs or replacements not covered Premises by an insured peril using an interest rate equal to the higher of (i) Landlord’s annual borrowing rate per annum or (ii) the prime rate of interest plus one per annum over the useful economic life of such repairs or replacements as determined by force, but if Landlord in its reasonable discretion in accordance with GAAP (“Amortized Cost”) and Tenant shall pay its Proportionate Share of said Amortized Cost monthly as Additional Rent over the term remaining in the Lease subject to Paragraph 50 of the Lease, plus Tenant’s Proportionate Share of the insurance deductible (if such damage is the result of an insured peril); provided Tenant has not caused such damage, in which event Tenant shall be responsible for one hundred percent (100%) of the insurance deductible and does make any such costs and expense not reimbursed repairs, Tenant agrees to Landlord by insurance proceeds for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord promptly, within thirty (30) days after receipt of demand, reimburse Landlord for the invoice datefull cost thereof. Tenant hereby waives all rights underAny capital repairs to the roof or roof membrane, drains, gutters, downspouts, foundation or exterior walls shall be made at Landlord’s sole cost and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effectexpense. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or cost of any other defect in the Building that does not endanger the structural integrity of the building for which Tenant is repairs or is not maintenance incurred by Landlord shall constitute Operating Expenses. Landlord shall be responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in at its sole and absolute discretion, not to repair and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days for all repairs or replacements to the HVAC systems costing over $500.00; provided, however, that the figure of $500 shall be increased by $250 on the fifth anniversary of the Commencement Date, and on the first day of each fifth year thereafter during the Term including any renewals or extensions thereof. Tenant shall be responsible for the repair of any pipes or sprinkler systems rendered inoperative or damaged by Tenant’s failure to keep the Premises adequately heated and for any damages or injuries caused by such failure. No liability shall be imposed on Landlord because of any injury or damage to personal property, or because of any interference with the services and facilities listed above, caused by accidents, riots, strikes, or any other reason beyond the control of Landlord, and Landlord shall be under no duty to restore any of such services and facilities or to make any of the repairs for which Landlord is obligated, except after receipt of written notice from Tenant of a need therefor, and there shall be a reasonable period of time within which Landlord may make such repairs. Any costs which would be considered capital expenses under generally accepted accounting principles shall not be treated as Operating Expenses, and shall be paid solely by Landlord. Landlord hereby represents and warrants to Tenant that, if Tenant is responsible for the repair and/or replacement. In the event the Term as of the Lease Commencement Date, (i) all building systems are in good working order, (ii) Landlord is extended for not aware of any reason whatsoeverstructural or major repairs required to be effected to the Premises; (iii) Landlord has not received any notice of noncompliance with laws with respect to the Premises, Tenantwhich has not been remedied; and (iv) to the best of Landlord’s Proportionate Share knowledge, the Premises presently complies with all laws applicable to the structural components, base building systems and common areas of the Amortized Cost of the earlier repair and/or replacement cost shall be increased to include the additional amount payable to Landlord due to the Extended Term of the LeasePremises.

Structural Maintenance. Effective March 1, 2011 and notwithstanding Notwithstanding anything to the contrary in Paragraph 11.A 11.B above, (i) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure and roof membrane (provided Landlord replaces the entire roof membrane) (but not the interior improvements improvements, roof membrane, or glazing) of the Building leased hereunder that exist as of the Commencement Date at Landlord’s cost; , and (ii) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure (but not the interior improvements, roof membrane, or glazing) of the Building leased hereunder occurring after the Commencement Date at Landlord’s cost, however, Landlord shall amortize the cost of such repairs or replacements not covered by an insured peril using an the repair (together with interest rate equal to at the higher of (i) Landlord’s annual borrowing rate ten percent (10%) per annum or annum, (ii) the prime rate of interest plus one per annum or (iii) Landlord’s borrowing rate as of the date of said repair and/or replacement on the unamortized balance) over the useful economic life of such repairs or replacements as determined by Landlord in its reasonable discretion in accordance with GAAP said repair (the “Amortized Cost”) ), and Tenant shall pay its be responsible for paying to Landlord (i) Tenant’s Proportionate Share of said Amortized Cost monthly as Additional Rent over the term remaining in cost of repair for the Lease subject to Paragraph 50 full Initial: [Illegible] Multi Tenant/Single Parcel Page 10 of 30 BUILDING: Potrero 1 PROPERTY: 01-0034 UNIT: 1 LEASE ID: 0034-RUCK01-01 expired Term of the Lease, and (ii) monthly thereafter, Tenant’s Proportionate Share of the Amortized Cost throughout the remaining Term of the Lease plus Tenant’s Proportionate Share of the insurance deductible (if such damage is the result of an insured peril); provided Tenant has not caused such damage, in which event Tenant shall be responsible for one hundred percent (100%) of the insurance deductible and any such costs and expense not reimbursed to Landlord by insurance proceeds for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord within thirty (30) days of Tenant’s receipt of an invoice from Landlord. For Example: In the event (i) the cost of a roof structure repair is $10,000 during the sixth (6th) month of the Lease Term, and (ii) said repair has a useful life of twenty years, Tenant shall pay to Landlord, (a) within thirty days of receipt of an invoice dateTenant’s Proportionate Share of the cost of said repair for the six months of the Lease Term that have expired in the amount of $120.54 ($10,000 / 20 years /12 months = $41.67 per month x 48.21% = $20.09 x 6 months), and (b) at the beginning of each month thereafter throughout the remaining Lease Term, its Proportionate Share of the Amortized Cost in the amount of $46.14 ($10,000 (plus 10% interest) / 20 years /12 months = $95.70 per month x 48.21%), and in the event the Lease is extended for any reason whatsoever, Tenant shall continue to pay said $46.14 each month throughout the Extended Term; however, in no event shall Tenant’s total cost, excluding interest costs, exceed the total cost of said repair and/or replacement. Tenant hereby waives all rights under, and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or any other defect in the Building that does not endanger the structural integrity of the building for which Tenant is or is not responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in its sole and absolute reasonable discretion, not to repair and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days of written notice from Landlord, if Tenant is responsible for the repair and/or replacement. In the event the Term of the Lease is extended for any reason whatsoever, Tenant’s Proportionate Share of the Amortized Cost of the earlier repair and/or replacement cost shall be increased to include the additional amount payable to Landlord due to the Extended Term of the Leaseresponsible.

Structural Maintenance. Effective March 1, 2011 and notwithstanding Notwithstanding anything to the contrary in Paragraph 11.A 11.B above, (i) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure and roof membrane (provided Landlord replaces the entire roof membrane) (but not the interior improvements improvements, roof membrane, or glazing) of the Building leased hereunder that exist as of the Commencement Date at Landlord’s cost; , and (ii) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure (but not the interior improvements, roof membrane, or glazing) of the Building leased hereunder occurring after the Commencement Date at Landlord’s cost, however, Landlord shall amortize the cost of such repairs or replacements not covered by an insured peril using an the repair (together with interest rate equal to at the higher of (i) Landlord’s annual borrowing rate ten percent (10%) per annum or annum, (ii) the prime rate of interest plus one per annum or (iii) Landlord’s borrowing rate as of the date of said repair and/or replacement on the unamortized balance) over the useful economic life of such repairs or replacements as determined by Landlord in its reasonable discretion in accordance with GAAP said repair (the “Amortized Cost”) ), and Tenant shall pay its be responsible for paying to Landlord (i) Tenant’s Proportionate Share of said Amortized Cost monthly as Additional Rent over the term remaining in cost of repair for the Lease subject to Paragraph 50 full BUILDING: Potrero 1 PROPERTY: 01-0034 UNIT: 1 LEASE ID: 0034-RUCK01-01 expired Term of the Lease, and (ii) monthly thereafter, Tenant’s Proportionate Share of the Amortized Cost throughout the remaining Term of the Lease plus Tenant’s Proportionate Share of the insurance deductible (if such damage is the result of an insured peril); provided Tenant has not caused such damage, in which event Tenant shall be responsible for one hundred percent (100%) of the insurance deductible and any such costs and expense not reimbursed to Landlord by insurance proceeds for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord within thirty (30) days of Tenant’s receipt of an invoice from Landlord. For Example: In the event (i) the cost of a roof structure repair is $10,000 during the sixth (6th) month of the Lease Term, and (ii) said repair has a useful life of twenty years, Tenant shall pay to Landlord, (a) within thirty days of receipt of an invoice dateTenant’s Proportionate Share of the cost of said repair for the six months of the Lease Term that have expired in the amount of $120.54 ($10,000 / 20 years /12 months = $41.67 per month x 48.21% = $20.09 x 6 months), and (b) at the beginning of each month thereafter throughout the remaining Lease Term, its Proportionate Share of the Amortized Cost in the amount of $46.14 ($10,000 (plus 10% interest) / 20 years /12 months = $95.70 per month x 48.21%), and in the event the Lease is extended for any reason whatsoever, Tenant shall continue to pay said $46.14 each month throughout the Extended Term; however, in no event shall Tenant’s total cost, excluding interest costs, exceed the total cost of said repair and/or replacement. Tenant hereby waives all rights under, and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or any other defect in the Building that does not endanger the structural integrity of the building for which Tenant is or is not responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in its sole and absolute reasonable discretion, not to repair and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days of written notice from Landlord, if Tenant is responsible for the repair and/or replacement. In the event the Term of the Lease is extended for any reason whatsoever, Tenant’s Proportionate Share of the Amortized Cost of the earlier repair and/or replacement cost shall be increased to include the additional amount payable to Landlord due to the Extended Term of the Leaseresponsible.

Structural Maintenance. Effective March 1, 2011 and notwithstanding Notwithstanding anything to the contrary in Paragraph 11.A 11.B above, (i) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure and roof membrane (provided Landlord replaces the entire roof membrane) (but not the interior improvements improvements, roof membrane, or glazing) of the Building leased hereunder that exist as of the Commencement Date at Landlord’s cost; , and (ii) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure (but not the interior improvements, roof membrane, or glazing) of the Building leased hereunder occurring after the Commencement Date at Landlord’s cost, however, Landlord shall amortize the cost of such repairs or replacements not covered by an insured peril using an interest rate equal the repair pursuant to the higher of (i) Landlord’s annual borrowing rate per annum or formula referenced in subclause (ii) the prime rate of interest plus one per annum hereof over the useful economic life of such repairs or replacements as determined by Landlord in its reasonable discretion in accordance with GAAP (“Amortized Cost”) said repair, and Tenant shall pay its be responsible for paying to Landlord, within thirty days of written notice from Landlord, one hundred percent (100%) of Tenant’s Proportionate Share of said the Amortized Cost monthly as Additional Rent over the term remaining in the Lease subject to Paragraph 50 Term of the Lease, plus Tenant’s Proportionate Share of the insurance deductible (if such damage is the result of an insured peril); provided Tenant has not caused such damage, in which event Tenant shall be responsible for one hundred percent (100%) of the insurance deductible and any such costs and expense not reimbursed to Landlord by insurance proceeds for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord within thirty (30) days of receipt of an invoice from Landlord. For Example: In the event (i) the Amortized Cost of a roof structure repair is $10,000, and (ii) said repair has a useful life of twenty years, Tenant would be charged its Proportionate Share of $854.28 ($10,000 / 20 years / 12 months = $41.67 x 56.95% = $23.73/month x 36 months = $854.28) as Additional Rent, in which case said amount would be due within thirty (30) days of Tenant’s receipt of an invoice datefrom Landlord. Tenant hereby waives all rights under, and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or any other defect in the Building that does not endanger the structural integrity of the building for which Tenant is or is not responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in its sole and absolute discretion, not to repair and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days of written notice from Landlord, if Tenant is responsible for the repair and/or replacementresponsible. In the event the Term of the Lease is extended for any reason whatsoever, Tenant’s Proportionate Share of the Amortized Cost of the earlier repair and/or replacement cost shall be increased to include the additional amount payable to Landlord due to the Extended Term of the Lease. For Example: In the event: (i) the roof structure was repaired as illustrated above; and (ii) this Lease is extended for an additional two (2)year period, Tenant would be liable for an additional $569.52 payment to Landlord equal to Tenant’s Proportionate Share ($23.73/month x 24 months) as Additional Rent. Said payment would be due in full within thirty (30) days of Tenant’s receipt of an invoice from Landlord.

Structural Maintenance. Effective March 1, 2011 and notwithstanding Notwithstanding anything to the contrary in Paragraph 11.A 11.B above, (i) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure and roof membrane (provided Landlord replaces the entire roof membrane) (but not the interior improvements improvements, roof membrane, or glazing) of the Building leased hereunder that exist as of the Commencement Date at Landlord’s cost; , and (ii) Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure (but not the interior improvements, roof membrane, or glazing) of the Building leased hereunder occurring after the Commencement Date at Landlord’s cost, however, Landlord shall amortize the cost of such repairs or replacements not covered by an insured peril using an interest rate equal to the higher of (i) Landlord’s annual borrowing rate per annum or (ii) the prime rate of interest plus one per annum repair over the useful economic life of such repairs or replacements as determined by Landlord in its reasonable discretion in accordance with GAAP (“Amortized Cost”) said repair, and Tenant shall pay its be responsible for paying to Landlord, within thirty days of written notice from Landlord, one hundred percent (100%) of Tenant’s Proportionate Share of said the Amortized Cost monthly as Additional Rent over the term remaining in the Lease subject to Paragraph 50 full Term of the Lease, plus Tenant’s Proportionate Share of the insurance deductible (if such damage is the result of an insured peril); provided Tenant has not caused such damage, in which event Tenant shall be responsible for one hundred percent (100%) of the insurance deductible and any such costs and expense not reimbursed to Landlord by insurance proceeds for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord within thirty (30) days of the invoice date. For Example: In the event (i) the Amortized Cost of a roof structure repair is $10,000, and (ii) said repair has a useful life of twenty years, Tenant would be charged its Proportionate Share of $346.69 ($10,000 / 20 years /12 months = $41.67 x 22.49% = $9.37/month x 37 months = $346.69) as Additional Rent, in which case said amount would be due within thirty (30) days of Tenant’s receipt of an invoice from Landlord. Tenant hereby waives all rights under, and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or any other defect in the Building that does not endanger the structural integrity of the building Building and/or Premises for which Tenant is or is not responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in its sole and absolute discretion, not to repair and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days of written notice from Landlord, if Tenant is responsible for the repair and/or replacementresponsible. In the event the Term of the Lease is extended for any reason whatsoever, Tenant’s Proportionate Share of the Amortized Cost of the earlier repair and/or replacement cost shall be increased to include the additional amount payable to Landlord due to the Extended Term of the Lease. For Example: In the event: (i) the roof structure was repaired as illustrated above; and (ii) this Lease is extended for an additional one year period, Tenant would be liable for an additional payment to Landlord equal to Tenant’s Proportionate Share of $112.44 ($9.37/month x 12 months) as Additional Rent. Said payment would be due in full within thirty days of Tenant’s receipt of an invoice from Landlord.