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the fair rental value of the Premises as agreed by the Parties or, in the event they are unable to agree, as <br />determined by an MAI appraiser appointed by the Parties. In the event that the Parties are unable to agree <br />on an MAI appraiser, the appraiser shall be appointed by the Marion County Circuit Court pursuant to ORS <br />36.320. All Rent shall be paid in advance, on the first day of each month during the Term. <br />3.2 All amounts payable under Section 3.1 above, as well as all other amounts payable <br />by Lessee to Lessor under the terms of this Lease, shall be paid at the office of Lessor set forth above„ or at <br />such other place within the continental limits of the United States as Lessor shall from time to time <br />designate by notice to Lessee, in lawful money of the United States which shall be legal tender in payment <br />of all debts and dues, public and private, at the time of payment. <br />3.3 It is intended that the Minimum Rent provided for in this section shall be an <br />absolutely net return to Lessor throughout the Term, free of any expense, charge, or other deduction <br />whatsoever, including all claims, demands, or setoffs of any nature whatsoever. <br />3.4 Lessee shall also pay without notice, except as may be provided in this Lease, and <br />without abatement, deduction, or setoff, as additional rent, all sums, impositions, costs, and other payments <br />which Lessee in any of the provisions of this Lease assumes or agrees to pay, and in th:, °vent of any <br />nonpayment, Lessor shall have (in addition to all other rights and remedies) all the rights and remedies <br />provided for in this Lease or by law in the case of nonpayment of the Minimum Rent. <br />3.5 On each third annual anniversary of the Commencement Date of this Lease, the <br />Minimum Rent shall be established at an amount equal to the fair rental value of the Premises as agreed by <br />the PaRies or, in the event they a:e unable to agree, as determined by an MAI appraiser appointed by the <br />Parties. In the event that the Parties are unable to agree on an MAI appraiser, the appraiser shall be <br />appointed by the Marion County Circuit Court pursuant to ORS 36.320. The losing party shall pay all the <br />costs of the arbitration and the reasonable attorney fees incurred in the arbitration by the prevailing party. <br />Section 4. Use <br />4.1 The Premises may be used for governmental an or private ffice purposes, <br />including without limitation administrative offices, retail stores, pro essiona o ices, hotel and residential <br />uses and, in addition, (if the Salem Area Mass Transit District is the Lessee) for passenger waiting rooms, <br />- ticket sales office, break room, transit mall and other transit related uses. However, the Premises may not be <br />used for the offering, sale or display of obscene materials or obscene performances (as defined in Salem <br />Revised Code 96.030 in as in effect on June 1, 1998); the sale of alcohol (except by a restaurant or eating <br />establishment other than a tavern or bar); or the sale of tobacco products. <br />4.2 Anything in this Lease to the contrary notwithstanding, no party (in its capacity as a <br />party to this Lease and exclusive of the exercise by a party of its police power in a manner generally <br />applicable to the public), shall have the right to burden or interfere with the operation of the transit system <br />by the Salem Area Mass Transit District to the extent that such operation is conducted in a manner <br />reasonably consistent with usual and customary practices of transit system operations, or to burden, <br />interfere with or prevent access to, or ingress to and egress from, any portion of the Premises held (directly <br />or indirectly) by the Salem Area Mass Transit District. Notwithstanding any provision of this Lease to the <br />contrary, this Section 4.2 may not be amended without the approval of the Salem Area Mass Transit District <br />and the Federal Transit Administration, or the successors to their governmental authority. <br />4.3 Lessee shall not use or occupy, or permit or suffer all or any part of the Premises or <br />the Improvements to be used or occupied (1) for any unlawful or illegal business, use, or purpose, (2) in <br />any such manner to constitute a nuisance of any kind, or (3) for any purpose or in any way in violation of <br />the certificate of occupancy, or of any Legal Requirements, including but not limited to Legal <br />Requirements respecting Hazardous Substances, or (4) for any business, use, or purpose deemed <br />disreputable. The term Hazardous Substance means any hazardous, toxic, or dangerous substance, waste, or <br />material that is the subject of environmental protection Legal Requirements, including but not limited to the <br />items listed in the United States Department of Transportation Hazardous Materials Table (49 CFR <br />§ 172.101) or designated as hazardous substances by the United States Environmental Protection Agency <br />Continuing Party Ground Lease Courthouse Square <br />Page - 2 <br />]023980329 <br />