Common use of Optional Alterations Clause in Contracts

Optional Alterations. Unless an Event of Default shall have occurred and be continuing, Lessee, at its own expense, may from time to time make any Alteration to the Leased Property unless such Alteration (a) will materially impair the value or utility of the Leased Property or (b) will cause the Leased Property at the time of termination of the Lease not to have the capacity and functional ability to perform on a continuing basis, in normal commercial operation (whether or not then operating) the functions it was performing or capable of performing at Closing; provided, however, that to the extent it shall be reasonably feasible to do so, any such Alteration shall be made in such a manner that title thereto will not pass to Lessor for the reasons described in 11.6 (Title to Parts).

Appears in 2 contracts

Sources: Refinery Lease Agreement (Valero Energy Corp/Tx), Pipeline and Terminal Lease Agreement (Valero Energy Corp/Tx)