FOLLOWING
EVENTS SHALL BE A DEFAULT ("DEFAULT") BY TENANT UNDER THIS LEASE:
(A)
PAYMENT DEFAULTS. TENANT SHALL FAIL TO PAY
ANY INSTALLMENT OF RENT OR ANY OTHER PAYMENT HEREUNDER WHEN DUE; PROVIDED THAT
NO MORE THAN ONCE PER ANY CONSECUTIVE TWELVE (12) MONTH PERIOD AND NO MORE THAN
THREE (3) TIMES TOTAL THROUGHOUT THE TERM, TENANT SHALL HAVE A THREE (3)
BUSINESS DAY GRACE PERIOD FOLLOWING NOTICE OF SUCH FAILURE FROM LANDLORD TO PAY
SUCH OVERDUE AMOUNTS; PROVIDED THAT SUCH NOTICE SHALL BE SATISFIED BY DELIVERY
OF A NOTICE TO PAY RENT OR QUIT AS REQUIRED UNDER CALIFORNIA LAW.
(B)
INSURANCE. ANY INSURANCE REQUIRED TO BE
MAINTAINED BY TENANT PURSUANT TO THIS LEASE SHALL BE CANCELED OR TERMINATED OR
SHALL EXPIRE OR SHALL BE REDUCED OR MATERIALLY CHANGED, OR LANDLORD SHALL
RECEIVE A NOTICE OF NONRENEWAL OF ANY SUCH INSURANCE AND TENANT SHALL FAIL TO
OBTAIN REPLACEMENT INSURANCE AT LEAST FIFTEEN (15) DAYS BEFORE THE EXPIRATION OF
THE CURRENT COVERAGE.
(C)
ABANDONMENT. TENANT SHALL ABANDON THE
PREMISES EXCEPT IN THE EVENT THAT TENANT HAS PERFORMED ALL OF ITS OBLIGATIONS
UNDER SECTION 28 PRIOR TO SUCH ABANDONMENT AND CONTINUES TO PERFORM ALL OF ITS
OTHER OBLIGATIONS UNDER THIS LEASE DURING SUCH ABANDONMENT.
(D)
IMPROPER TRANSFER. TENANT SHALL ASSIGN,
SUBLEASE OR OTHERWISE TRANSFER OR ATTEMPT TO TRANSFER ALL OR ANY PORTION OF
TENANT'S INTEREST IN THIS LEASE OR THE PREMISES EXCEPT AS EXPRESSLY PERMITTED
HEREIN, OR TENANT'S INTEREST IN THIS LEASE SHALL BE ATTACHED, EXECUTED UPON, OR
OTHERWISE JUDICIALLY SEIZED AND SUCH ACTION IS NOT RELEASED WITHIN NINETY (90)
DAYS OF THE ACTION.
24
(E)
LIENS. TENANT SHALL FAIL TO DISCHARGE OR OTHERWISE OBTAIN THE
RELEASE OF ANY LIEN PLACED UPON THE PREMISES IN VIOLATION OF THIS LEASE WITHIN
THIRTY (30) DAYS AFTER ANY SUCH LIEN IS FILED AGAINST THE PREMISES.
(F)
INSOLVENCY EVENTS. TENANT OR ANY GUARANTOR OR SURETY OF TENANT'S
OBLIGATIONS HEREUNDER SHALL:
(A) MAKE A GENERAL ASSIGNMENT FOR THE BENEFIT OF
CREDITORS; (B) COMMENCE ANY CASE, PROCEEDING OR OTHER ACTION SEEKING TO HAVE AN
ORDER FOR RELIEF ENTERED ON ITS BEHALF AS A DEBTOR OR TO ADJUDICATE IT A
BANKRUPT OR INSOLVENT, OR SEEKING REORGANIZATION, ARRANGEMENT, ADJUSTMENT,
LIQUIDATION, DISSOLUTION OR COMPOSITION OF IT OR ITS DEBTS OR SEEKING
APPOINTMENT OF A RECEIVER, TRUSTEE, CUSTODIAN OR OTHER SIMILAR OFFICIAL FOR IT
OR FOR ALL OR OF ANY SUBSTANTIAL PART OF ITS PROPERTY (COLLECTIVELY A
"PROCEEDING FOR RELIEF"); (C) BECOME THE SUBJECT OF ANY PROCEEDING FOR RELIEF
WHICH IS NOT DISMISSED WITHIN NINETY (90) DAYS OF ITS FILING OR ENTRY; OR (D)
DIE OR SUFFER A LEGAL DISABILITY (IF TENANT, GUARANTOR, OR SURETY IS AN
INDIVIDUAL) OR BE DISSOLVED OR OTHERWISE FAIL TO MAINTAIN ITS LEGAL EXISTENCE
(IF TENANT, GUARANTOR OR SURETY IS A CORPORATION, PARTNERSHIP OR OTHER ENTITY).
(G)
ESTOPPEL CERTIFICATE OR SUBORDINATION AGREEMENT. TENANT FAILS TO
EXECUTE ANY DOCUMENT REQUIRED FROM TENANT UNDER SECTIONS 23 OR 27 WITHIN FIVE
(5) DAYS AFTER A SECOND NOTICE REQUESTING SUCH DOCUMENT.
(H)
OTHER DEFAULTS. TENANT SHALL FAIL TO COMPLY WITH ANY