Common use of Trade Fixtures and Leasehold Improvements Clause in Contracts

Trade Fixtures and Leasehold Improvements. (a) The Tenant will own and install at the Property and keep in good order and condition, free from liens, encumbrances or rights of third parties, only Trade Fixtures of first-class quality. During the Term, should the Tenant desire to remove Trade Fixtures with a value of $100,000 or greater (based on the value of the Trade Fixtures at the date such Trade Fixtures were originally installed) over the course of a short period of time, the Tenant shall notify the Landlord in writing at least three (3) Business Days prior to such removal and shall in such notice advise the Landlord of the purpose of the removal. Any removal of Trade Fixtures shall be completed at the Tenant’s sole cost and expense and the Tenant shall make good any damage caused to the Property by such removal. (b) All Leasehold Improvements, whether placed there by the Tenant or the Landlord, shall be the Landlord’s property without compensation to the Tenant. No Leasehold Improvements shall be removed from the Property during the Term without the Landlord’s prior written consent, acting reasonably. The Landlord agrees that it would be unreasonable to deny consent if the Tenant, acting reasonably, determines that the applicable Leasehold Improvements have become excess for the Tenant’s purposes and/or the Tenant covenants to install new and similar Leasehold Improvements in substitution for the applicable Leasehold Improvements. Notwithstanding the foregoing, the Landlord will not be required to consent if the Tenant is default under this Lease. (c) During the Term, should the Tenant desire to add Leasehold Improvements to the Property, the Tenant shall notify the Landlord in writing: (i) advising of such proposed addition of Leasehold Improvements; and (ii) the purpose of the additional Leasehold Improvements. On or before three (3) Business Days of receipt of such notice, the Landlord will advise the Tenant in writing whether the proposed Leasehold Improvements must be removed by the Tenant upon the expiration or early termination of the Term, in which case the additional Leasehold Improvements will be deemed to be “New Leasehold Improvements” for purposes of Subsection 9.6(a) or whether the Landlord agrees that such proposed Leasehold Improvements may remain upon the expiration or early termination of the Term, in which case the additional Leasehold Improvements will be deemed to be “Original Leasehold Improvements” for purposes of Subsection 9.6(a) or some combination thereof. Should the Landlord fail or omit to respond within the said three Business Day period, the proposed additional Leasehold Improvements will be deemed to be “New Leasehold Improvements” for purposes of Subsection 9.6(a), unless otherwise agreed by the parties in writing. All Leasehold Improvements added to the Property shall be completed at the Tenant’s sole cost and expense in compliance with Section 12.2.