Common use of Damage and Destruction — Repairs by Tenant Clause in Contracts

Damage and Destruction — Repairs by Tenant. Notwithstanding anything to the contrary contained in the Lease, the following shall apply to repairs and restoration upon damage or destruction: (A) If the Leased Premises are damaged or destroyed by any peril after the Commencement Date of this Lease, then Tenant shall repair the damage and restore the Leased Premises in accordance with this Section, except as provided in subsection (B) below. Unless Tenant is not required to effect the repairs and restoration pursuant to subsection (B) below, Tenant shall promptly apply for and diligently seek to obtain all necessary governmental permits and approvals for the repair and restoration of the Leased Premises and, upon issuance of such governmental permits and approvals, promptly commence and diligently prosecute the completion of the repairs and restoration of the Leased Premises (to the extent permitted by applicable law) to substantially the same condition in which the Leased Premises were immediately prior to such damage or destruction (subject to any alterations which Tenant would be permitted to make to the Leased Premises pursuant to this Lease). (B) If the Leased Premises are damaged or destroyed by fire or other casualty which occurs after the Effective Date and if the cost to repair such damage or to restore the Leased Premises as required in subsection (A) exceeds twenty percent (20%) of the replacement cost of the Lease Premises (as determined by an independent architect selected by Tenant and approved by Landlord in Landlord’s reasonable discretion), then (i) Tenant may elect, upon notice to Landlord not later than thirty (30) days following the occurrence of the applicable casualty, not to undertake the repairs and restoration of the Leased Premises as provided in subsection (A) (provided, however, that Landlord may nullify Tenant’s election not to undertake the repairs and restoration, within 30 days after receiving Tenant’s notice, by confirming either (x) that Landlord shall reimburse Tenant for such excess costs within thirty (3) days after the completion of the repairs and restoration and Landlord’s receipt of reasonable supporting documentation of such costs, or (y) that Landlord waives it right to terminate this Lease pursuant to Section 17 prior to the date which is 12 months after the repairs and restoration are completed), and (ii) if Tenant so elects not to undertake the repairs and restoration, then Tenant nevertheless shall raze Tenant’s Building and remove from the Leased Premises all building materials and debris and all underground installations that serve only the Leased Premises (including the footings and foundations of Tenant’s Building and the utility lines serving Tenant’s Building) and restore the surface of the Premises to a graded and landscaped surface.

Damage and Destruction — Repairs by Tenant. Notwithstanding anything to the contrary contained in the Lease, the following shall apply to repairs and restoration upon damage or destruction: (A) Tenant’s Obligation to Repair, If the Leased Premises are damaged or destroyed by any peril after the Commencement Date of this Lease, then Tenant shall repair the damage and restore the Leased Premises in accordance with this Section(A) and (B), except as provided in subsection (B) belowhereinbelow. Unless Tenant is not required to effect the repairs and restoration pursuant to subsection (B) below, Tenant shall promptly apply for and diligently seek to obtain all necessary governmental permits and approvals for the repair and restoration of the Leased Premises and, upon issuance of such governmental permits and approvals, promptly commence and diligently prosecute the completion of the repairs and restoration of the Leased Premises (to the extent permitted by applicable law) to substantially the same condition in which the Leased Premises were immediately prior to such damage or destruction (subject to any alterations which Tenant would be permitted to make to the Leased Premises pursuant to this Lease). (B) Damage in Excess of 20%. If the Leased Premises are damaged or destroyed by fire or other casualty which occurs after in the Effective Date last two years of the Initial Term or any Renewal Term and Tenant has no further options to extend the term of the Lease, and if the cost to repair such damage or to restore the Leased Premises as required in subsection Section (A) exceeds twenty percent (20%) of the replacement cost of the Lease Leased Premises (as determined by an independent architect selected by Tenant and approved by Landlord in Landlord’s reasonable discretion)) and such damage makes it impracticable to operate the Leased Premises in the reasonable business judgment of Tenant, then (i) Tenant may electshall have the option, upon notice to Landlord not later than thirty one hundred eighty (30180) days following the occurrence of the applicable casualty, not to undertake the repairs and restoration of the Leased Premises as provided in subsection (A) (provided, however, that Landlord may nullify Tenant’s election not to undertake the repairs and restoration, within 30 days after receiving Tenant’s notice, by confirming either (x) that Landlord shall reimburse Tenant for such excess costs within thirty (3) days after the completion of the repairs and restoration and Landlord’s receipt of reasonable supporting documentation of such costs, or (y) that Landlord waives it right to terminate this Lease pursuant to Section 17 prior to the date which is 12 months after the repairs and restoration are completed)Premises, and (ii) if Tenant so elects not to undertake the repairs and restoration, then Tenant nevertheless shall raze Tenant’s Building and remove from the Leased Premises all building materials and debris and all underground installations that serve only the Leased Premises (including the footings and foundations of Tenant’s Building and the utility lines serving Tenant’s Building) and restore the surface of the Premises to a graded and landscaped surface. Notwithstanding anything to the contrary contained in the Lease, the proceeds of any property insurance maintained by Tenant (including proceeds of self-insurance, if applicable), net of actual out-of-pocket costs to adjust and settle the loss, shall be distributed to and used by Tenant, in accordance with the Lease.