• December 28, 2016

HVAC System Maintenance Contract Requirement

HVAC System Maintenance Contract Requirement

Pro-Landlord Language:

“Throughout the term of this Lease, Tenant shall at its own cost and expense (i) cause to be performed all maintenance of the HVAC system, equipment and facilities (hereinafter referred to as the “A/C System”), if any, and whether now existing or hereinafter installed, located in or servicing the Premises, including all repairs and replacements thereto, and (ii) maintain in force and provide a copy of same to Landlord an air conditioning service repair and full service maintenance contract in form satisfactory to Landlord with an air conditioning contractor or servicing organization approved by Landlord. Any such contract shall expressly state (i) that it shall be an automatically renewing contract terminable by no less than thirty (30) days prior written notice to the Landlord, and (ii) that the contractor providing such service shall maintain a log at the demised premises detailing the service provided during each visit pursuant to such contract. Tenant shall keep such log at the Demised Premises and permit Landlord to review same promptly after Landlord’s request. The entire A/C System shall at the expiration or sooner termination of this Lease become the property of Landlord, and Tenant shall surrender to Landlord the entire A/C System in good working order and condition.”

Pro-Tenant Language:

“Throughout the term of this Lease, Tenant shall at its own cost and expense (i) cause to be performed all maintenance of the HVAC system, equipment and facilities (hereinafter referred to as the “A/C System”), if any, and whether now existing or hereinafter installed, located in or servicing the Premises, and except as provided for hereinafter, including all repairs thereto, and (ii) maintain in force and provide a copy of same to Landlord an air conditioning service repair and full service maintenance contract in form satisfactory to Landlord with an air conditioning contractor or servicing organization approved by Landlord. Any such contract shall expressly state that it shall be an automatically renewing contract terminable by no less than thirty (30) days prior written notice to the Landlord. The entire A/C System shall at the expiration or sooner termination of this Lease become the property of Landlord, however, provided that Tenant maintained such maintenance contract, (x) Tenant shall be under no obligation to deliver such system to Landlord in working order and condition and (y) Landlord shall be responsible for the cost and replacement of all major components of the A/C System and the replacement thereof. Notwithstanding anything to the contrary contained in this Lease, Landlord shall be responsible for the actual out-of-pocket cost of (i) the required repair, as reasonably determined by Tenant’s air-conditioning engineer and/or air-conditioning service contractor, of the following major parts and components of the HVAC System: Compressors, Evaporators, Condenser Fan Motors, Shafts and Bearings, Replacement of Evaporator Coils and Replacement of Condenser Coils and (ii) any required replacement, as reasonably determined by Tenant’s air-conditioning engineer and/or air-conditioning service contractor, of the HVAC System, including, without limitation, such major parts and components, to the extent, in each case, the same is not caused by the negligence, omissions or willful misconduct of Tenant or its employees, agents, contractors and/or guests, but Tenant shall continue to remain obligated to maintain the service contract and otherwise maintain and repair the HVAC System.”

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