Common use of Failure to Commence Construction Clause in Contracts

Failure to Commence Construction. In the event Landlord has failed to (A) secure the issuance of the site permit to commence the construction of the Building and (B) commence demolition of the existing improvements of the future site of the Building (the “Milestone”) on or before August 1, 2014 (the “Milestone Outside Date”) (which date shall be extended by virtue of “Force Majeure Delay” (as defined below), and any delays caused by Tenant), then Tenant shall have the right to terminate this Lease by written notice to Landlord (“Milestone Failure Termination Notice”) effective upon the date occurring five (5) business days following receipt by Landlord of the Milestone Failure Termination Notice (the “Milestone Termination Effective Date”), in which event Landlord shall return any prepaid rent and the L-C forthwith to Tenant. Should the Milestone be satisfied prior to Tenant’s exercise of the foregoing termination right, however, such termination right shall, in such event, expire and be of no further force or effect upon completion of such Milestone. If Tenant delivers a Milestone Failure Termination Notice to Landlord, then Landlord shall have the right to suspend the occurrence of the Milestone Termination Effective Date for a period ending thirty (30) days after the Milestone Termination Effective Date by delivering written notice to Tenant, prior to the Milestone Termination Effective Date, that, in Landlord’s reasonable, good faith judgment, the Milestone will be satisfied within thirty (30) days after the Milestone Termination Effective Date. If the Milestone is satisfied within such thirty (30) day suspension period, then the Milestone Failure Termination Notice shall be of no force or effect, but if the Milestone is not satisfied within such thirty (30) day suspension period, then this Lease shall terminate upon the expiration of such thirty (30) day suspension period. Upon any termination as set forth in this Section 1.4.1, Landlord, KRLP, and Tenant shall be relieved from any and all liability to each other resulting under this Lease. Tenant’s rights to terminate this Lease, as set forth in this Section 1.4.1, shall be Tenant’s sole and exclusive remedy at law or in equity for the failure of the Milestone to have not been satisfied by the Milestone Outside Date.