Common use of Title to Improvements Clause in Contracts

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, Improvements and (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 Section 14.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal On the commencement date of the term of this lease, all existing structures, buildings, installations, and improvements of any kind located on the leased premises are owned by and title thereto is vested in Lessee. All said existing structures, buildings, installations and improvements as well as structures, buildings, installations and improvements of any kind placed on the leased premises by Lessee subsequent to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 commencement date of the Participation Agreement term of this lease shall at the option of Lessor be removed by Lessee at Lessee's expense. Lessor may exercise said option as to any or all of the structures, buildings, installations and improvements either before or after the expiration or sooner termination of this lease. If Lessor exercises such option, Lessee shall remove such structures, buildings, installations or improvements within sixty (at no cost 60) days after the expiration of the term of this lease or sooner termination thereof. If Lessee fails to the Owner Lessorremove such structures, the Owner Participant buildings, installations or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rentimprovements within said sixty (60) days, Lessor Section 467 Loan Balanceshall have the right to have such structures, buildings, installations or improvements removed at the expense of Lessee. As to any or all structures, buildings, installations or improvements owned by Lessee Section 467 Loan Balancefor which Lessor does not exercise said option for removal, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) thereto shall vest in the Owner Lessor without cost to Lessor and without any payment to Lessee. Machines, appliances, equipment and trade fixtures of any kind now existing or hereafter placed on the leased premises by Lessee are owned by and title thereto is vested in Lessee and shall be removed by Lessee within sixty (60) days after the expiration of the term of this lease or sooner termination thereof; provided, however, Lessee agrees to repair any and all damage occasioned by the removal thereof. If any such machines, appliances, equipment and trade fixtures are not removed within sixty (60) days after the termination of this lease, the same may be considered abandoned and shall thereupon become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its property of Lessor without cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor and without any payment to Lessee; except that Lessor shall have the rightright to have the same removed at the expense of Lessee. During any period of time employed by Lessee under this paragraph to remove structures, prior buildings, installations, improvements, machines, appliances, equipment and trade fixtures, Lessee shall continue to pay the return of the Undivided Interest full rental to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements accordance with this lease which are Severable Improvements. The purchase price for such undivided interest said rental shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessorprorated daily.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, Improvements and (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease Lease, and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 Section 16.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title Lessor hereby grants to an undivided Lessee without warranty express or implied all right, title, or interest equal in the Improvements hereafter located on the Land. Improvements on the Land during the Lease Term shall be and remain the property of Xxxxxx. provided, however, that Xxxxxx shall have no right to destroy, demolish or remove the Improvements except as specifically provided for in this Lease or as approved in writing by Lessor. When the Lease Term expires or, when the Lease is otherwise terminated under the terms of this Lease, title to the Owner Improvements shall revert to and vest in Lessor without cost to Lessor's Percentage . It is the intent of the Parties that this Lease and Memorandum of Lease shall create a constructive notice of severance of the Improvements from the Land without the necessity of a deed from Lessor to Lessee. The Improvements shall be and remain real property and shall be owned in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed fee by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of Lessee for the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes term of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at At the request of the Owner Lessor shall, remove such Improvements Xxxxxx and at the end of the Facility Lease Term. The Facility Lessee shall repair , Xxxxxx agrees to execute a confirmatory quitclaim deed of the Improvements to Lessor to be recorded at Lessor’s option and expense and any damage other documents that may be reasonably required by Lessor or Lessor’s title company to provide Lessor title to the Facility Land and the Facility Site caused by such removal, all at the Facility Lessee's sole cost Improvements free and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility clear of the Facility as a whole (assuming the Facility is, at such time, Xxxxxx’s leasehold interest in the condition required Land, ownership interest in the Improvements and all monetary liens and monetary encumbrances not caused or agreed to by the terms of this Facility Lease) Lessor. Xxxxxx acknowledges and agrees that any and all depreciation, amortization and tax credits for federal or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior state tax purposes relating to the return of Improvements located on the Undivided Interest pursuant Land and any and all additions thereto, substitutions therefor, fixtures therein and other property relating thereto shall be deducted or credited exclusively to SECTION 5.1, title to an undivided interest equal to Lessee during the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to Lease Term and for the Owner Lessor, tax years during which the Owner Participant or the OP Guarantor) vest in the Owner LessorTerm begins and ends.

Title to Improvements. Title Notwithstanding anything contained in this Lease to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessorcontrary, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except parties hereto agree as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately follows: (a) become subject to this Facility Lease All trade fixtures, equipment and (b) be deemed part of the Undivided Interest for other personal property including, but not limited to, all purposes of this Facility Lease. The Facility Lessee shallsigns, at its own cost and expenseice machines, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement soda fountains, fryers, grills, toasters, freezers, coolers (other than Severable Improvements which are financed walk-in coolers and affixed bars and counters and hoods), tables, chairs, carpeting, lighting fixtures, fans, hoods and other kitchen and dining room equipment installed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of Tenant, shall be, remain and continue to be the Owner Lessor shall, remove such Improvements sole and absolute property of Tenant and may be replaced at any time during the term of this Lease and may be removed prior to or at the end expiration or termination of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removalthis Lease; provided, all at the Facility Lessee's sole cost and expense; provided however, that such removal shall not (i) materially diminish impair the value, remaining economic useful life or utility structural integrity of the Facility as building, and that Tenant shall not remove a whole significant portion of its personalty from the Premises at any time in which there is a monetary default which remains uncured after written notice. Landlord further acknowledges that all such property is personal property and is not to become a part of the realty no matter how affixed to it. Any damage to the Premises caused by removal of these items shall be paid for by Tenant. (assuming b) Title to the Facility isimprovements and any repairs, alterations, additions or improvements thereto shall be vested in and remain in Tenant at such time, in all times during the condition required by the terms term of this Facility Lease) , including any renewal or (ii) cause extension thereof. Upon the Facility to become "limited use property" within the meaning expiration of Rev. Proc. 2001-28this Lease, 2001-19 IRB 1156 any extension or Rev. Proc. 2001-29renewal hereof, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1or its sooner termination, title to an undivided interest equal the improvements shall automatically pass to and become vested in Landlord. The parties are desirous of seeking to clarify which items (a) shall become Landlord's upon the Owner Lessor's Percentage expiration or termination of this Lease, and (b) which items Tenant may remove upon the expiration or termination of this Lease, as follows: (a) Not Removable by Tenant: items which are ordinarily thought of as fixed, leasehold improvements, such as permanent construction items, HVAC, doors, and, non-movable items such as walk-in such Optional Improvement shall coolers, affixed bars and counters, hoods, fixed lighting fixtures (at no cost to the Owner Lessore.g. recessed lighting), the Owner Participant or the OP Guarantorand (b) vest Removable by Tenant: all items described in the Owner LessorSection 12.1(a), under conditions described therein.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvementsstructures, (ii) all Non-Severable Improvements buildings and (iii) any and all other Improvements which are financed permanent improvements constructed, erected or placed upon the demised premises by either the Owner Lessor by an Additional Equity Investment Port or a Supplemental Financing pursuant to SECTION 12.1 the Lessee, and additions or improvements made thereto, shall vest in and become the property of the Participation Agreement Port upon completion thereof and shall (at no cost to be surrendered with the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except Premises as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor part thereof upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes termination of this Facility Lease. The Facility Lessee shall; provided, that the Port, at its own cost and option, may upon prior written notice require Lessee to remove at Lessee's expense, improvements or portions of improvements constructed, erected or placed upon the Premises by Lessee during the term of this Lease or any improvements or portions of improvements built by Lessee prior to the commencement of this Lease, including but not limited to Building Nos. L-900 and L-914, and the new Test Cell Facility and if the Port so notifies Lessee of its exercise of its right to require such removal Lessee shall complete said removal with all reasonable dispatch but in no event shall said removal completion exceed thirty (30)days after termination of this Lease. Lessee may, at the termination of this Lease, if Lessee is not then in default under any provision of this Lease, remove its machinery, boilers, equipment, movable partitions and other trade fixtures placed upon the demised premises by it; provided, that in such event Lessee shall repair any damage caused by such removal and, provided further, that usual and customary lighting, plumbing, wall-to-wall carpeting, window coverings, air conditioning and heating fixtures shall remain upon the Premises and be surrendered therewith upon termination of this Lease. Upon termination of this Lease, Lessee shall remove all equipment, furniture, furnishings and trade fixtures from the Premises unless otherwise agreed by the Port. Lessee agrees and hereby makes the irrevocable and binding election not to take such steps as for federal income tax purposes investment tax credits or depreciation on assets financed with the Owner Lessor may reasonably require proceeds of tax exempt Port bonds or notes, unless the Port otherwise expressly agrees in advance in writing signed by the Port's Chief Executive Officer. Lessee also agrees at the Port's request from time to time to confirm that title to execute such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed additional documents reasonably requested by the Owner Lessor by an Additional Equity Investment Port or a Supplemental Financing pursuant its bond counsel to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost effectuate and/or evidence said agreement and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvementselection. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee mayThis agreement and election, and at the request obligation to execute said documents relative thereto is binding on each successor or assignee of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION Section 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION Section 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDEDprovided, HOWEVERhowever, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION Section 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title All foundations, buildings, developments, landscaping, and improvements of every kind and nature now or hereafter located upon the leased premises are the property of Lessee. At all times during the term hereof, the improvements shall not be conveyed, transferred, or assigned unless such conveyance, transfer, or assignment shall be to an undivided interest equal a person, corporation, or other entity to whom this Lease is being transferred or assigned simultaneously therewith, and at all such times the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 holder of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic leasehold interest of Lessee under this Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the owner of said improvements. Any attempted conveyance, transfer, or assignment of the improvements, whether voluntarily or by operation of law or otherwise, to any person, corporation, or other entity, shall be void and of no effect whatever unless such conveyance, transfer, or assignment shall be to a person, corporation, or other entity to whom this Lease is being transferred or assigned simultaneously therewith in compliance with the provisions hereof or by reason of any other cause whatsoever. Similarly, so long as said improvements or any part thereof shall remain on the leased premises, any attempted transfer or assignment of the leasehold interest of Lessee under this Lease shall be void and of no effect whatever unless such transfer or assignment shall be to a person, corporation, or other entity to whom said improvements are being conveyed, transferred, or assigned simultaneously therewith. Upon any termination of this Lease, whether by reason of the normal expiration of the term hereof, by reason of the provisions hereof, or by reason of any other cause whatsoever, if said improvements or any part thereof shall then Fair Market Sales Value be on the leased premises, Lessee shall maintain ownership of such undivided interestimprovements and may remove such improvements at its discretion upon notice to Lessor within sixty (60) days of the termination of this Lease. If the Owner Lessor Lessee does not elect to purchase give such Optional Improvements which are Severable Improvements, the Facility Lessee may, notice and at the request remove any improvements within sixty (60) days of the Owner Lessor shalltermination of this Lease, remove such Improvements at the end of the Facility Lease Term. The Facility it shall be presumed that Lessee shall repair any damage has forfeited its ownership rights to the Facility improvements unless Lessor and the Facility Site caused by such Lessee agree to different terms for removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal to A. Any and all improvements on the Owner Lessor's Percentage in (i) all Required ImprovementsDemised Premises, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed including, without limitation, any buildings constructed on the Demised Premises by or for Tenant, shall be owned by Tenant during the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes Term of this Facility LeaseAgreement. The Facility Lessee shall, at its own cost and expense, take such steps as term “improvements” shall mean the Owner Lessor may reasonably require improvements from time to time on the Demised Premises (including, without limitation, the Building Improvements). B. Upon the termination of this Agreement, whether by expiration of the Term hereof or by reason of default on the part of Tenant, or for any other reason whatsoever, the improvements (including, without limitation, the Building Improvements), and all parts thereof, shall merge with the title of the Demised Premises, free and clear of any claim of Tenant and all persons or entities claiming under or through Tenant (including, without limitation, any holder of a leasehold mortgage), and shall become the property of Landlord. In such event (i) Tenant shall deliver up to confirm that title Landlord the Demised Premises clean and free of trash and in good repair and condition in accordance to such Improvement has vested the prevailing Tenant’s Leasehold Minimum Maintenance and Repair Standards and Practices, as amended or modified, with all fixtures and equipment situated in the Owner Lessor Demised Premises delivered in good working order, reasonable wear and tear excepted, and (ii) unless Tenant is subject to this Facility Leasethen default. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor Tenant shall have the rightright to remove all personal property (including aircraft stored in the Building Improvements) and trade fixtures owned by Tenant from the Demised Premises, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest but Tenant shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect required to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site Demised Premises caused by such removal, all removal in a good and workmanlike manner and at the Facility Lessee's Tenant’s sole cost and expense; provided that or (iii) with no less than twelve (12) months remaining to the Term, Landlord may elect to by written notice require Tenant to demolish and remove, or cause to be removed, all improvements from the Demised Premises and restore the Demised Premises to the condition in which the same existed immediately prior to this Lease’s Effective Date, in which event Tenant shall, at Tenant’s sole cost, risk and expense, perform and complete such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as and restoration in a whole (assuming the Facility is, at such timegood and workmanlike manner, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28accordance with all applicable ordinances, 2001-19 IRB 1156 or Rev. Proc. 2001-29codes, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided rules and regulations prior to the return expiration or termination of the Undivided Interest pursuant to SECTION 5.1Term. Upon such termination, title to an undivided interest equal to Tenant shall, at Landlord’s request, execute a recordable instrument evidencing the Owner Lessor's Percentage in such Optional Improvement termination of this Agreement and giving the effective date of said termination or expiration date. C. Tenant’s obligations under this Section 28 shall (at no cost to continue and survive beyond the Owner Lessor, the Owner Participant expiration or the OP Guarantor) vest in the Owner Lessortermination of this Lease.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDEDprovided, HOWEVERhowever, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION Section 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvementsstructures, (ii) all Non-Severable Improvements buildings and (iii) any and all other Improvements which are financed permanent improvements constructed, erected or placed upon the demised premises by the Owner Lessor Lessee, and additions or improvements made thereto by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 Lessee shall vest in and become the property of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part completion thereof. Title of the Undivided Interest for all purposes above structures, buildings and improvements shall be vested in and become the property of the Port and shall be surrendered with the Premises as part thereof upon termination of this Facility Lease. The Facility Lessee shall; provided, that the Port, at its own cost and option, may upon prior written notice require Lessee to remove at Lessee's expense, improvements or portions of improvements constructed, erected or placed upon the Premises by Lessee during the term of this Lease and if the Port so notifies Lessee of its exercise of its right to require such removal Lessee shall complete said removal with all reasonable dispatch but in no event shall said removal completion exceed thirty (30)days after termination of this Lease. Lessee may, at the termination of this Lease, if Lessee is not then in default NATIONAL AIRMOTIVE CORPORATION MAIN BUILDING LEASE - 19 - 24 under any provision of this Lease, remove its machinery, boilers, equipment, movable partitions and other trade fixtures placed upon the demised premises by it; provided, that in such event Lessee shall repair any damage caused by such removal and, provided further, that usual and customary lighting, plumbing, wall-to-wall carpeting, window coverings, air conditioning and heating fixtures shall remain upon the Premises and be surrendered therewith upon termination of this Lease. Upon termination of this Lease, Lessee shall remove all equipment, furniture, furnishings and trade fixtures from the Premises unless otherwise agreed by the Port. Lessee agrees and hereby makes the irrevocable and binding election not to take such steps as for federal income tax purposes investment tax credits or depreciation on assets financed with the Owner Lessor may reasonably require proceeds of tax exempt Port bonds or notes, unless the Port otherwise expressly agrees in advance in writing signed by the Port's Executive Director. Lessee also agrees at the Port's request from time to time to confirm that title to execute such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed additional documents reasonably requested by the Owner Lessor by an Additional Equity Investment Port or a Supplemental Financing pursuant its bond counsel to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost effectuate and/or evidence said agreement and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvementselection. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee mayThis agreement and election, and at the request obligation to execute said documents relative thereto is binding on each successor or assignee of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Non- Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION Section 12.1 of the Participation Agreement shall (at no cost to the ------------ Owner Lessor, the Owner Participant Participant, the Equity Investor or the OP Guarantor and with no adjustment to the Purchase Price, or or, except as expressly provided herein, Basic Periodic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to in such Improvement undivided interest has vested in the Owner Lessor and that such undivided interest is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION Section ------- 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become ---- subject to this Facility Lease; PROVIDEDprovided, HOWEVERhowever, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional XXXXXXXXX FACILITY LEASE (L1) ----------------------------- Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided provided, that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as by more than a whole de minimus amount (assuming the Facility is, at such time, in the condition required by the terms of this Facility LeaseImprovement so removed had not been made) or (ii) cause the Facility to become "limited use use" property" , within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION Section 5.1, title to an undivided interest equal ----------- to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant Participant, the Equity Investor or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Non- Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION Section 12.1 of the Participation Agreement ------------ shall (at no cost to the Owner Lessor, the Owner Participant Participant, the Equity Investor or the OP Guarantor and with no adjustment to the Purchase Price, or or, except as expressly provided herein, Basic Periodic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to in such Improvement undivided interest has vested in the Owner Lessor and that such undivided interest is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION Section 12.1 of the Participation Agreement) ------------ shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDEDprovided, HOWEVERhowever, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided provided, that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as by more than a whole de minimus amount (assuming the Facility is, at such time, in the condition required by the terms of this Facility LeaseImprovement so removed had not been made) or (ii) cause the Facility to become "limited use use" property" , within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION Section 5.1, title to an undivided interest equal ----------- to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant Participant, the Equity Investor or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title to an undivided interest equal On the commencement date of the term of this Lease, all, existing structures, buildings, installations, and improvements of any kind located on the leased premises are owned by and title thereto is vested in Lessee, except for a building of approximately 2,879 square feet located at the foot of the southerly extension of 28th Xxxxxx xx Parcel No. 1, formerly known as "Lyon's Cafe" and now commonly known as "NASSCO Building 42," which building is owned by Lessor. All said existing structures, buildings, installations and improvements as well as structures, buildings, installations and improvements of any kind placed on the leased premises by Lessee subsequent to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 commencement date of the Participation Agreement term of this Lease shall at the option of Lessor be removed by Lessee at Lessee's expense. Lessor may exercise said option as to any or all of the structures, buildings, installations and improvements either before or after the expiration or sooner termination of this Lease. If Lessor exercises such option, Lessee shall remove such structures, buildings, installations or improvements within sixty (at no cost 60) days after the expiration of the term of this Lease or sooner termination thereof. If Lessee fails to the Owner Lessorremove such structures, the Owner Participant buildings, installations or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rentimprovements within said sixty (60) days, Lessor Section 467 Loan Balanceshall have the right to have such structures, buildings, installations or improvements removed at the expense of Lessee. As to any or all structures, buildings, installations or improvements owned by Lessee Section 467 Loan Balancefor which Lessor does not exercise said option for removal, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) thereto shall vest in the Owner Lessor without cost to Lessor and without any payment to Lessee. Machines, appliances, equipment and trade fixtures of any kind now existing or hereafter placed on the leased premises by Lessee are owned by and title thereto is vested in Lessee and shall be removed by Lessee within sixty (60) days after the expiration of the term of this Lease or sooner termination thereof; provided, however, Lessee agrees to repair any and all damage occasioned by the removal thereof. If any such machines, appliances, equipment and trade fixtures are not removed within sixty (60) days after the termination of this Lease, the same may be considered abandoned and shall thereupon become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its property of Lessor without cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor and without any payment to Lessee; except that Lessor shall have the rightright to have the same removed at the expense of Lessee. During any period of time employed by Lessee under this Paragraph to remove structures, prior buildings, installations, improvements, machines, appliances, equipment and trade fixtures, Lessee shall continue to pay the return of the Undivided Interest full rental to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements accordance with this Lease which are Severable Improvements. The purchase price for such undivided interest said rental shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessorprorated daily.

Title to Improvements. Title Notwithstanding anything that is or appears to an undivided interest equal be to the Owner Lessor's Percentage in contrary herein, any and all Improvements erected on the Leased Premises (iwhich after amendment of this Lease and recordation of Tenant’s quitclaim deed pursuant to Section 2.3 hereof shall not include the Agency Garage Parcel) as permitted by this Lease, as well as any and all Required Improvementsalterations or additions thereto or any other Improvements or fixtures on the Leased Premises, (ii) shall be owned by Tenant until the expiration of the Term or sooner termination of this Lease. Following the amendment of this Lease and recordation of Tenant’s quitclaim deed pursuant to Section 2.3 hereof, that portion of the Improvements constructed within the Agency Garage Parcel, as well as any and all Non-Severable alterations or additions thereto or any other Improvements or fixtures within the Agency Garage Parcel, shall be owned by Landlord. Upon the expiration or sooner termination of this Lease, all Improvements and (iii) all other Improvements which alterations, additions or improvements thereto that are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed made to or incorporated into placed on the Facility, and such undivided interest Leased Premises by Tenant or any other person shall immediately (a) become subject to this Facility Lease and (b) be deemed considered part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 real property of the Participation Agreement) Leased Premises and shall vest in remain on the Owner Lessor or Leased Premises and become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor shall have the right, prior to the return property of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expenseLandlord; provided that Tenant (or its Subtenants, as the case may be) shall retain ownership of and shall be required to remove furniture, equipment, machinery, trade fixtures and removable personal property except as may be left on the Leased Premises with Landlord’s prior written approval. Except as otherwise expressly provided in this Lease, any non-disturbance agreement approved by Landlord, any easement approved by Landlord, or any written instrument executed by Landlord which expressly states that Landlord is waiving its rights under this Section 6.8 to receive such removal Improvements free and clear of all other claims, said Improvements shall not (i) materially diminish the value, remaining economic useful life become Landlord's property free and clear of any and all rights to possession and all claims to or utility of the Facility as against them by Tenant or any third person or entity. Tenant hereby covenants and agrees to promptly execute and acknowledge a whole (assuming the Facility is, at such time, in the condition quitclaim deed or any other documentation reasonably required by Landlord to effectuate the terms provisions of this Facility Section, which covenant shall survive termination of this Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner Lessor.

Title to Improvements. Title All structures, installations and improvements of any kind placed on the sub-leased premise by SUBLESSEE shall be deemed owned by SUBLESSEE and, at the option of SUBLESSOR, with written permission of the Port Director, are to an undivided interest equal be removed at SUBLESSEE's expense upon termination of this Sublease. If SUBLESSOR exercises such option SUBLESSEE shall remove such structures, buildings, installations or improvements within sixty (60) days after the expiration of the term of this Sublease or sooner termination thereof. If SUBLESSEE fails to remove such structures, buildings or improvements with the 60 day period, SUBLESSOR shall have the right to have such structures, buildings, installations or improvements removed at the expense of SUBLESSEE. If any structures, buildings, installations or improvements owned by SUBLESSEE are not removed by SUBLESSEE or SUBLESSOR pursuant to this paragraph upon termination of this Sublease, then title thereto shall vest in SUBLESSOR without any cost to SUBLESSOR and SUBLESSEE shall not be entitled to any payment thereon. In such case, SUBLESSOR shall immediately pay any debts or obligation relating to such improvements if such debts or obligations are secured by a perfected lien describing such improvements. Machines, appliances, equipment and trade fixtures of any kind placed on the subleased premises by SUBLESSEE shall be owned by, and title thereto, shall be vested in SUBLESSEE and shall be removed by SUBLESSEE within sixty (60) days after the expiration of the term of this Sublease or sooner termination thereof; provided, however, SUBLESSEE agrees to repair any and all damage to the Owner Lessor's Percentage in (i) all Required Improvements, (ii) all Non-Severable Improvements and (iii) all other Improvements which are financed premises occasioned by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 removal thereof. If any such machines, appliances, equipment and trade fixtures are not removed within sixty (60) days after the termination of this Sublease, the Participation Agreement same may be considered abandoned and shall (at no thereupon become the property of SUBLESSOR without cost to the Owner LessorSUBLESSOR and without any payment to SUBLESSEE, the Owner Participant or the OP Guarantor and with no adjustment to the Purchase Price, or except as expressly provided herein, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values) automatically vest in the Owner Lessor upon being affixed to or incorporated into the Facility, and such undivided interest shall immediately (a) become subject to this Facility Lease and (b) be deemed part of the Undivided Interest for all purposes of this Facility Lease. The Facility Lessee shall, at its own cost and expense, take such steps as the Owner Lessor may reasonably require from time to time to confirm that title to such Improvement has vested in the Owner Lessor and is subject to this Facility Lease. No interest in any Optional Improvement which is a Severable Improvement (other than Severable Improvements which are financed by the Owner Lessor by an Additional Equity Investment or a Supplemental Financing pursuant to SECTION 12.1 of the Participation Agreement) shall vest in the Owner Lessor or become subject to this Facility Lease; PROVIDED, HOWEVER, that if the Facility Lessee shall, at its cost and expense, cause such Optional Improvements which are Severable Improvements to be made to the Facility, the Owner Lessor SUBLESSOR shall have the right, prior right to have the return same removed at the expense of the Undivided Interest to the Owner Lessor hereunder, to purchase an undivided interest equal to the Owner Lessor's Percentage in any such Optional Improvements which are Severable Improvements. The purchase price for such undivided interest shall be the then Fair Market Sales Value of such undivided interest. If the Owner Lessor does not elect to purchase such Optional Improvements which are Severable Improvements, the Facility Lessee may, and at the request of the Owner Lessor shall, remove such Improvements at the end of the Facility Lease Term. The Facility Lessee shall repair any damage to the Facility and the Facility Site caused by such removal, all at the Facility Lessee's sole cost and expense; provided that such removal shall not (i) materially diminish the value, remaining economic useful life or utility of the Facility as a whole (assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or (ii) cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160. If the Facility Lessee shall have failed to remove any Optional Improvement which is a Severable Improvement as above provided prior to the return of the Undivided Interest pursuant to SECTION 5.1, title to an undivided interest equal to the Owner Lessor's Percentage in such Optional Improvement shall (at no cost to the Owner Lessor, the Owner Participant or the OP Guarantor) vest in the Owner LessorSUBLESSEE.