Common use of Building Occupancy Clause in Contracts

Building Occupancy. Notwithstanding any terms to the contrary herein, if more than fifty percent (50%) of the useable ground floor area within the Building (“Occupancy Threshold”) remains unoccupied for more than twelve (12) consecutive months during the Term, then for the period commencing on the first (1st) day following such twelve (12) month period and ending on the first (1st) day thereafter that the occupancy level of the Building exceeds the Occupancy Threshold, as the City's sole and exclusive remedy for the failure of the occupancy level of the Building to exceed the Occupancy Threshold, the Public Benefit Payment shall be increased by twenty-five percent (25%). During any period that any major repair, remodeling or reconstruction is being undertaken with respect to the Building, the occupancy level of the Building shall be deemed to be above the Occupancy Threshold, regardless of the actual occupancy level of the Building during such period, provided that the repair, remodeling or reconstruction is proceeding with due diligence and in no event for longer than a period of eighteen (18) months (which time can be extended by the City Manager based on substantial evidence that the failure to achieve the Occupancy Threshold is based on a natural disaster, earthquake, force majeure event or other event outside the Owner's control). The eighteen (18) month period shall begin to run from the date that the Owner obtains active and valid permits that have been issued by the City for the Building to undergo the applicable repair, remodeling, or reconstruction. The occupancy level of the Building shall also be deemed to be above the Occupancy Threshold, regardless of the actual occupancy level of the Building, during such period that Owner has active and valid permits that have been issued by the City for the Building to undergo mandatory seismic strengthening required under Title 13 of the Code, provided that the work is being diligently pursued, as determined by the City Manager or designee. Notwithstanding the foregoing or anything to the contrary contained herein, in the event that the occupancy level of the Building is beneath the Occupancy Threshold and the Owner is using “Prudent Landlord Efforts” to cause the occupancy level of the Building to exceed the Occupancy Threshold (and has provided City with reasonable supporting documentation of such Prudent Landlord Efforts), then the City Manager may provide one six

Building Occupancy. The Parties acknowledge that the Building use is currently a comedy club operated by a single tenant with a varying schedule of performances and that the Occupancy Threshold (as defined below) is met as of the date hereof. Notwithstanding any terms to the contrary herein, except the force majeure provisions in Section 7.3 of this Agreement, if more than fifty percent (50%) of the useable ground floor area within the Building is not fully occupied, available and open for customers (“Occupancy Threshold”) remains unoccupied for an Entertainment Use as defined in Section 4.10 of this Agreement for more than twelve (12) consecutive months during the Term, then for the period commencing on the first (1st) day following such twelve (12) month period and ending on the first (1st) day thereafter that the occupancy level of the Building exceeds the Occupancy Threshold, as the City's sole and exclusive remedy for the failure of the occupancy level of the Building to exceed the Occupancy Threshold, the Public Benefit Payment shall may be increased by twenty-five percent (25%). During any period that any major repair, remodeling or reconstruction is being undertaken with respect to the Building, the occupancy level of the Building shall be deemed to be above the Occupancy Threshold, regardless of the actual occupancy level of the Building during such period, provided that the repair, remodeling or reconstruction is proceeding with due diligence and in no event for longer than a period of eighteen twenty-four (1824) months (which time can be extended by the City Manager Manager, or designee, based on substantial evidence that the failure to achieve the Occupancy Threshold is based on a natural disaster, earthquake, force majeure event or other event outside the Owner's control). The eighteen twenty-four (1824) month period shall begin to run from the date that the Owner obtains active and valid permits that have been issued by the City for the Building to undergo the applicable repair, remodeling, remodeling or reconstruction. The occupancy level of the Building shall also be deemed to be above the Occupancy Threshold, regardless of the actual occupancy level of the Building, Building during such period that Owner has active and valid permits that have been issued by the City for the Building to undergo mandatory seismic strengthening required under WHMC Title 13 of the Code13, provided that the work is being diligently pursued, as determined by the City Manager or designee. Notwithstanding the foregoing or anything to the contrary contained hereinherein and recognizing that this is a small building with a unique Entertainment Use that has been owned and operated by the same family for over fifty years, and which would be difficult to replace through typical leasing and tenanting procedures, in the event that the occupancy level of the Building is beneath the Occupancy Threshold and the Owner is using “Prudent Landlord Efforts” commercially reasonable efforts to cause the occupancy level of the Building to exceed the Occupancy Threshold (and has provided City with reasonable supporting documentation of such Prudent Landlord Effortscommercially reasonable efforts), then the City Manager may Manager, or designee, shall provide one sixone-year extension before the Public Benefit Payment may be increased by the City.

Building Occupancy. Notwithstanding any terms to the contrary herein, if more than fifty percent (50%) of the useable ground floor area within the Building (“"Occupancy Threshold”") remains unoccupied by the media company and public benefit business space for more than twelve (12) consecutive months during the Term, then for the period commencing on the first (1st) day following such twelve (12) month period and ending on the first (1st) day thereafter that the occupancy level of the Building exceeds the Occupancy Threshold, as the City's sole and exclusive remedy for the failure of the occupancy level of the Building to exceed the Occupancy Threshold, the Public Benefit Payment shall be increased by twenty-five percent (25%). During any period that any major repair, remodeling or reconstruction is being undertaken with respect to the Building, the occupancy level of the Building shall be deemed to be above the Occupancy Threshold, regardless of the actual occupancy level of the Building during such period, provided that the repair, remodeling or reconstruction is proceeding with due diligence and in no event for longer than a period of eighteen (18) months (which time can be extended by the City Manager based on substantial evidence that the failure to achieve the Occupancy Threshold is based on a natural disaster, earthquake, force majeure event or other event outside the Owner's control). The eighteen (18) month period shall begin to run from the date that the Owner obtains active and valid permits that have been issued by the City for the Building to undergo the applicable repair, remodeling, or reconstruction. The occupancy level of the Building shall also be deemed to be above the Occupancy Threshold, regardless of the actual occupancy level of the Building, Building during such period that Owner has active and valid permits that have been issued by the City for the Building to undergo mandatory seismic strengthening required under WHMC Title 13 of the Code13, provided that the work is being diligently pursued, as determined by the City Manager or designee. Notwithstanding the foregoing or anything to the contrary contained hereinherein and recognizing that this is a small building where occupancy rates can be low with the loss of one tenant, in the event that the occupancy level of the Building is beneath the Occupancy Threshold and the Owner is using “"Prudent Landlord Efforts” " to cause the occupancy level of the Building to exceed the Occupancy Threshold (and has provided City with reasonable supporting documentation of such Prudent Landlord Efforts), then the City Manager may provide one six-month extension before the Public Benefit Payment is increased. Notwithstanding the above, if the ground- level rentable floor area that faces Sunset Boulevard remains unoccupied for more than twelve (12) consecutive months, the Permitted Sign shall be turned off until such space is fully occupied. The ground-floor rentable floor area may be occupied by any legally permitted use, including but not limited to retail and office. The City shall give written notice to Owner before the eleventh (11th) month if it deems the ground-floor space is unoccupied.