Common use of Casualty to Premises Clause in Contracts

Casualty to Premises. In the event of substantial damage (as hereinafter defined) to the Premises from fire or other cause, either party may terminate this Lease by giving written notice to the other within 30 day after the occurrence of such substantial damage. “Substantial damage” shall mean damage to or destruction of the improvements leased to such extent that it will reasonably cost in excess of 40% of the then current replacement cost of all improvements leased to repair or rebuild such improvement (to the extent only that such improvements were demised on this date by Landlord) to substantially their condition as they existed prior to such substantial damage. If the improvements are materially damaged or destroyed (as hereafter defined) from a cause which is not covered by insurance then maintained with respect thereto and which could not at such time be insured against under standard fire and extended coverage insurance policies available from companies licensed to do business in Texas, then, in such event, at Landlord’s option, this Lease may be terminated effective as of the date of such damage or destruction; provided that notice of termination under this paragraph must be given by Landlord to Tenant 30 days after such occurrence. “Materially damaged or destroyed” shall mean damage or destruction to the improvements leased to such extent that it will reasonably cost in excess of 40% of the then current replacement cost of all improvements leased to repair or rebuild such improvements to substantially their condition as they existed prior to such damage or destruction. Except as above provided, this Lease shall continue in effect in the event of casualty to Premises, and Landlord shall, subject to any unavoidable delay, repair or rebuild the same (to the extent only that such improvements are demised on this date by Landlord), to substantially the condition in which same were immediately prior to the occurrence of such damage or destruction, at Landlord’s cost and expense; provided, however, that in no event shall Landlord’s obligation to repair or rebuild extend beyond the expenditure of a sum equal to the total of all insurance proceeds actually received by Landlord from fire and extended coverage insurance policies maintained with respect to the Premises. Should Landlord repair or rebuild, then Tenant shall, at its sole cost and expense, replace or repair all signs, fixtures, equipment, display cases and other equipment installed by Tenant, so as to continue or resume operation of Tenant’s business in the Premises. Tenant agrees during any period of reconstruction or repair that Tenant will continue the operation of its business in the Premises to the extent reasonably practicable. Until completion hereunder, fixed rent payable by Tenant shall be reduced proportionately during any period in which there is substantial interference with the operation of its business.

Casualty to Premises. If the Premises, or any part thereof, are damaged or destroyed by a casualty, then within ninety (90) days following the Casualty Date Landlord shall give Tenant a Repair Notice setting forth the Repair Completion Date by which Landlord estimates that Landlord, in the exercise of commercially reasonable diligence, can adjust the casualty damage with any third-party insurer of Landlord and complete the repair and reconstruction of the casualty damage. In the event that the Repair Completion Date is (i) within nine (9) months of substantial damage the Casualty Date if the casualty occurs other than during the last twelve (as hereinafter defined12) months of the Term; or (ii) within ninety (90) days of the Repair Notice and prior to the expiration of the Term if the casualty occurs during the last twelve (12) months of the Term, then (except as otherwise agreed in writing by the parties) this Lease shall remain in force and effect and Landlord shall proceed with commercially reasonable diligence to repair and rebuild the casualty damage to the Premises. If the conditions in the foregoing sentence requiring Landlord’s restoration of the Premises from fire or other causeare not met, then either party may terminate this Lease by giving upon written notice of termination given to the other party within 30 day after the occurrence of such substantial damage. “Substantial damage” shall mean damage to or destruction twenty-one (21) days of the improvements leased to such extent Repair Notice. In the event that it will reasonably cost in excess of 40% of the then current replacement cost of all improvements leased to repair or rebuild such improvement (Lease is not terminated pursuant to the extent only that provisions of this Section 9.04, (i) Landlord shall at its sole cost and expense proceed with reasonable diligence to rebuild and repair such improvements were demised on this date by Landlord) to substantially their condition as they existed prior to such substantial damage. If the improvements are materially damaged or destroyed (as hereafter defined) from a cause which is not covered by insurance then maintained with respect thereto and which could not at such time be insured against under standard fire and extended coverage insurance policies available from companies licensed to do business in Texas, then, in such event, at Landlord’s option, this Lease may be terminated effective as of the date of such damage or destruction; provided that notice of termination under this paragraph must be given by Landlord to Tenant 30 days after such occurrence. “Materially damaged or destroyed” shall mean damage or destruction casualty to the improvements leased to such extent that it will reasonably cost in excess of 40% of Premises (other than for the then current replacement cost of all improvements leased to repair or rebuild such improvements to substantially their condition as they existed prior to such damage or destruction. Except as above provided, this Lease shall continue in effect in the event of casualty to Premises, Tenant Alterations and Landlord shall, subject to any unavoidable delay, repair or rebuild the same (to the extent only that such improvements are demised on this date by Landlord), Tenant’s personal property) to substantially the condition in which same were immediately prior to they existed before the occurrence of such damage or destruction, at Landlord’s cost casualty; and expense; provided, however, that in no event shall Landlord’s obligation to repair or rebuild extend beyond the expenditure of a sum equal to the total of all insurance proceeds actually received by Landlord from fire and extended coverage insurance policies maintained with respect to the Premises. Should Landlord repair or rebuild, then (ii) Tenant shall, at its sole cost and expense, proceed with reasonable diligence to rebuild, repair and/or replace or repair all signs, fixtures, equipment, display cases any damaged personal property of Tenant and other equipment installed any damaged Tenant Alterations to substantially the condition in which they existed before the casualty. Rent payable by Tenant, so as to continue or resume operation of Tenant’s business in the Premises. Tenant agrees during any period of reconstruction or repair that Tenant will continue the operation of its business in the Premises under this Lease shall be equitably abated to the extent reasonably practicable. Until completion hereunder, fixed rent payable and for the period that Tenant’s Permitted Use of the Premises are limited or obstructed by Tenant shall be reduced proportionately during any period in which there is substantial interference with the operation of its businesscasualty to the Premises.

Casualty to Premises. In See Paragraph 6 of the event Addendum Tenant shall immediately notify Landlord in writing of substantial damage (as hereinafter defined) to the Premises from fire or other cause, either party may terminate this Lease by giving written notice to the other within 30 day after the occurrence of such substantial damage. “Substantial damage” shall mean any damage to or destruction of the improvements leased to such extent that it will reasonably cost in excess of 40% Premises or the Shopping Center (or any portion of the then current replacement cost of all improvements leased to repair Premises or rebuild such improvement (to the extent only that such improvements were demised on this date by Landlord) to substantially their condition as they existed prior to such substantial damageShopping Center). If the permanent improvements are materially damaged of the Premises shall be partially destroyed by fire, or destroyed other casualty, whereby the Premises shall be rendered untenantable only in part, Landlord shall cause the damage to be repaired (as hereafter defined) due allowance being made for settlement of insurance claims and delays resulting from governmental restrictions or controls, or other causes beyond Landlord’s control), and this Lease shall remain in full force and effect except that the Minimum Guaranteed Rent, real estate taxes, insurance costs and common area expenses payable by Tenant hereunder, shall be abated in proportion to that portion of the Premises rendered untenantable, until such portion of the Premises is restored. If by reason of said fire or other casualty the Premises shall be rendered wholly untenantable, or if the damage results from a cause which is not covered by insurance then maintained with respect thereto and which could not at such time be insured against under standard Landlord’s fire and extended coverage insurance policies available from companies licensed insurance, or if the casualty occurs during the last twenty-four months of the Term or any extension thereof, Landlord shall have the option to do business in Texas, theneither (a) cause such damage to be repaired, in such event, at Landlord’s option, which event this Lease may shall remain in full force and effect except that the Minimum Guaranteed Rent, real estate taxes, insurance costs and common area expenses payable by Tenant hereunder shall be terminated effective abated in proportion to that portion of the Premises rendered untenantable until said Premises are restored; or (b) terminate this Lease by providing Tenant with written notice thereof within sixty (60) days after the casualty, in which event this Lease and the tenancy hereby created shall cease as of the date of such said damage or destruction; provided and the Minimum Guaranteed Rent and other payments due herein shall be adjusted equitably as of such date. In the event that twenty five percent (25%) or more of the rentable area of the Shopping Center is damaged or destroyed by fire or other casualty, notwithstanding that the Premises may be unaffected, Landlord may terminate this Lease by providing Tenant with written notice of termination under this paragraph must be given by Landlord to Tenant 30 within sixty (60) days after such occurrence. “Materially damaged or destroyed” shall mean damage or destruction to the improvements leased to such extent that it will reasonably cost in excess of 40% occurrence of the then current replacement cost of all improvements leased to repair or rebuild such improvements to substantially their condition as they existed prior to such damage or destruction. Except as above provided, this Lease shall continue in effect in the event of casualty to Premises, and Landlord shall, subject to any unavoidable delay, repair or rebuild the same (to the extent only that such improvements are demised on this date by Landlord), to substantially the condition in which same were immediately prior to the occurrence of such damage or destruction, at Landlord’s cost and expense; provided, however, that in no event shall Landlord’s obligation to repair or rebuild extend beyond the expenditure of a sum equal any damage hereunder shall be limited to the total of all insurance proceeds actually received by Landlord from fire insurance coverage, and extended coverage insurance policies maintained with respect shall be limited to the basic building, store front (other than Tenant decoration or modification thereof), and interior structural work existing as of the date of Lease Commencement, and in no event shall include repair of any alterations, improvements, betterments or fixturing made by Tenant in or about the Premises. Should Landlord repair Tenant, after the occurrence of any such fire or rebuild, then Tenant other casualty shall, at its sole own cost and expense, replace or promptly repair all signsand restore the portion of the Premises Landlord is not obligated to restore, as well as Tenant’s fixtures, equipment, display cases equipment and other equipment installed by Tenant, so as appurtenances. Tenant shall not be entitled to continue or resume operation any abatement of Tenant’s business rent in the Premises. Tenant agrees during any period event of reconstruction or repair that Tenant will continue a casualty if the operation of its business in the Premises damage is due to the extent reasonably practicable. Until completion hereundernegligence or willful misconduct of Tenant or its employees, fixed rent payable by Tenant shall be reduced proportionately during any period in which there is substantial interference with the operation of its businessagents, servants or invitees.