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<br />GRANTEE'S AUTHORIZED REPRESENT A TlVES, AGENTS, EMPLOYEES, ASSIGNEES, SUBLESSEES, <br />CONTRACTORS, CUSTOMERS OR INVITEES TAKEN OR NOT TAKEN IN CONNECTION WITH THE PREMISES <br />OR THIS EASEMENT, OR ARISING FROM ANY INJURY TO OR DEATH OF ANY PERSON OR FROM DAMAGE <br />TO OR DESTRUCTION OF ANY PROPERTY OCCURRING IN, ON OR ABOUT THE PREMISES. GRANTEE <br />ASSUMES RESPONSIBILITY FOR THE CONDITION OF THE PREMISES. GRANTEE EXPRESSLY AGREES TO <br />USE AND OCCUPY THE PREMISES AND PLACE ITS IMPROVEMENTS, FIXTURES, EQUIPMENT, <br />MERCHANDISE AND OTHER PROPERTY THEREIN AND THEREON AT ITS OWN RISK, AND HEREBY <br />RELEASES GRANTOR AND GRANTOR'S OFFICIALS, EMPLOYEES AND AGENTS FROM ALL CLAIMS FOR <br />ANY DAMAGE OR INJURY TO THE FULL EXTENT PERMITTED BY LAW, EVEN IF SUCH CLAIM ARISES <br />FROM OR IS ATTRIBUTABLE TO THE SOLE OR CONCURRENT NEGLIGENCE OF INDEMNIFIED PARTY. <br />GRANTEE SHALL BE RESPONSIBLE FOR THE SAFETY AND WELL BEING OF GRANTEE'S EMPLOYEES, <br />CUSTOMERS AND INVITEES, AND GRANTEE AGREES TO INDEMNIFY AND HOLD GRANTOR HARMLESS <br />FROM ALL LOSSES, CLAIMS, SUITS, ACTIONS, DAMAGES AND LIABILITIES, INCLUDING CLAIMS OF <br />STRICT LIABILITY, (INCLUDING COSTS AND EXPENSES OF DEFENDING AGAINST THE AFORESAID) <br />ARISING (OR ALLEGED TO ARISE) FROM ANY INJURY, DEATH OR DAMAGE OR LOSS OF GRANTEE, ITS <br />EMPLOYEES, CUSTOMERS AND INVITEES. <br /> <br />ARTICLE XII. Damage or Destruction of Premises <br /> <br />12.01. Subject to termination, as described in this section, no damage to the Premises or damage to or destruction of any <br />Improvements shall in any way alter, affect or modify Grantee's obligations hereunder, including specifically Grantee's <br />obligations to pay Rent, Taxes and other [mancial obligations hereunder. In the event of any damage to the Premises <br />which will exceed the cost of One Thousand and NollOO Dollars ($1,000.00) per event to repair, Grantee shall give <br />written notice to Grantor within seven (7) calendar days of the damage or destruction, including a description of the <br />damage and, as far as known to Grantee, the cause of the damage. Grantee shall immediately remove all debris resulting <br />from such damage or destruction and take such action as is necessary to place the Premises in a neat, safe condition. <br />Within ninety (90) days after the event causing the damage or destruction, Grantee must either repair or replace the <br />Improvements of, if permitted by law, or return the Premises to their natural condition. Grantee's failure to satisfy its <br />obligations in this regard is an Event of Default hereunder. Grantor may make repairs or replacements pursuant to this <br />section, whereupon Grantee shall be liable to pay Grantor, upon demand, the cost and expense incurred by Grantor in <br />accomplishing such action. Any failure by Grantee to make such payment to Grantor may be treated by Grantor as a <br />default in the payment of Rent due and owing by Grantee hereunder. <br /> <br />ARTICLE XIII. Condemnation <br /> <br />13.01. In the event of a condemnation proceeding that affects all or part of the Premises, Grantor will have the exclusive <br />authority to negotiate with the condemning authority. In the event of (i) a total condemnation, this Easement shall <br />terminate, and (ii) a partial condemnation, Grantor may decide whether or not to terminate this Easement, but if Grantor <br />elects to continue the Easement, the Rent will be proportionately reduced. All condemnation proceeds shall be payable to <br />Grantor. <br /> <br />ARTICLE XIV. Encumbrance of Easement Interest <br /> <br />14.01. Grantee may not mortgage, hypothecate, encumber or grant any deed of trust or mortgage covering the easement <br />interest created under this Easement or any interest therein or any Improvements thereon nor may Grantee collaterally <br />assign any rent or other income. Grantee will, prior to or upon tender of the Premises to Grantor upon expiration or <br />termination of this Easement, provide Grantor with documentation sufficient to evidence Grantor's ownership of all such <br />alterations, additions and Improvements. <br /> <br />ARTICLE XV. Default <br /> <br />15.01. Each ofthe following acts or omissions of Grantee or occurrences shall constitute an "Event of Default": <br />(a) failure or refusal by Grantee to timely pay Rent or any other sum when due hereunder; <br />(b) failure or refusal by Grantee to comply with the obligations of Grantee set forth in Article VI of this <br />Easement; <br /> <br />CE20050145 <br />lsouthar <br /> <br />6 <br /> <br />newce.doc V3.2 <br />