Lessees have at the time of delivery hereof deposited with _________ trust company securities approved by trust company, duly assigned to the trust company, having an actual market value, in its opinion, of not less than $_____, which deposit shall be held by trust company as security for the making and completing of the new building within time above limited and as security for full performance of all other covenants, and securities are to be held and disposed of by trust company for such purposes and in the same way that securities deposited under _________ are to be held and disposed of by trust company.
At least 30 days before beginning to tear down and remove building now or at any time hereafter on premises, and at least 30 days before beginning any such remodeling (as the case may be), lessees shall, at their own expense, employ some architect of good standing in the city of _________ satisfactory to lessors, to prepare plans and specifications of the proposed new building or of the repair or reconstruction or remodeling as the case may be, and shall deliver to trust company, having its office in the city of _________ or to such other trust company in the city of _________ as lessors may in writing designate, one set of the plans and specifications (and lessees shall at the same time notify lessors that they have so deposited the plans and specifications) to the end that lessors may be able to see in advance that the plans and specifications comply with and conform to the requirements of this lease concerning new building, repair, reconstruction or remodeling, and lessees shall also at the same time furnish trust company with a sworn statement of architects showing the estimated total aggregate cost of such building, repair, reconstruction or remodeling. And lessees agree that the new building shall be constructed, or such repairs, or reconstruction, or remodeling shall be done, so far as the requirements of this lease are concerned, substantially in accordance with the plans and specifications so furnished, and no contracts shall be let and/or construction work begun in connection with new building, repair, reconstruction or remodeling, as the case may be, until plans and specifications have been approved by lessors. A copy of all plans and specifications shall also be furnished by the lessees to trust company for lessors and may be retained by it.
Such trust company and lessors, or their representatives, agents or employees, shall have the right, without any interference on the part of lessees or any of their representatives, agents or employees, at all times to examine and inspect buildings during construction and immediately on completion, in order that they may be able to see that requirements of this lease are fully complied with, and they shall have at all reasonable times during term of this lease free access to premises and buildings and improvements at any time thereon, for examining or exhibiting the same.
Before tearing down or removing building now on premises, lessees will deposit with trust company cash or first-class securities to be approved by trust company, duly assigned to it, having an actual market value in its opinion, of not less than one-half the estimated cost of proposed new building.
If at any time while securities, or any part thereof, shall remain on deposit with trust company, if in opinion of trust company, securities, or any part thereof, shall be unsuitable for such deposit, lessees will, on notice from trust company, forthwith deposit with trust company other securities approved by it, sufficient in amount to make actual or market value of securities held by trust company and approved by it equal to amount required to be deposited with trust company; and all securities so deposited (or cash, if cash shall and it may be deposited in lieu thereof) with trust company, as aforesaid, shall be held and applied by trust company in trust for following purposes:
Until default shall be made by lessees in the performance of any of agreements in this lease contained, on lessees' part to be kept, observed and performed, all net income received by trust company from securities so deposited shall, after deducting therefrom its costs and reasonable charges in connection with deposits hereunder, be paid over, as and when received, to lessees, on their request.
When lessees shall have commenced to construct a new building or buildings on premises in conformity with requirements of this lease, and shall have so far prosecuted erection of such buildings and made payments on account thereof to such an extent that cash and securities then in possession of trust company hereunder shall be sufficient to pay for completion of new buildings, lessees shall be entitled to have, from time to time as work progresses, such cash and securities then on deposit applied by and paid out by trust company on certificates of lessees' architect to payment of cost of completing new buildings or to withdraw, from time to time, cash and securities so deposited to an amount equal to payments which may be thereafter made by lessees on account of completion or further construction of new buildings, as evidenced by such architect's certificates, which may have been paid by lessees, so that premises and buildings and improvements thereon shall be free from liens of mechanics and materialmen; provided, trust company shall, at all times, keep on hand sufficient of such cash or securities to pay in full for buildings and improvements so that the same shall be free from all such liens; and on completion of erection of a new building on premises in conformity with requirements of this lease, within time by this lease limited, and payment by lessees of all costs, expenses and liabilities incurred in, or in any way connected with, erection of building so that premises and buildings situated thereon shall be free and clear of all liens of mechanics or materialmen and similar liens arising out of construction of buildings, and on performance up to such date of all the other agreements and conditions of lessees in this lease contained, such balance of cash and securities then on deposit under this lease with trust company, if any, shall be paid over and delivered to lessees, on their paying to trust company its reasonable costs and charges in connection with deposit of cash and securities hereunder.
Trust company shall have full authority and power to sell any or all of securities so deposited with it, for such prices as it may deem best, provided it is necessary for it to procure any money or moneys with which to carry out or comply with any provisions of this lease with respect to any cash or securities deposited with trust company under this or any other article of this lease.
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