Common use of Damage to or Destruction of Property Clause in Contracts

Damage to or Destruction of Property. Lessee shall be responsible for any loss of the Property from any cause at all, whether or not insured, from the date of Property Acceptance. If the Property is lost, stolen, or damaged, Lessee will promptly notify Lessor of such event. In no event shall such loss or damage relieve Lessee of its obligations under these Terms and Conditions. In the event of such loss or damage, Lessee at its option shall: (a) promptly repair the Property to return it to good working order; or (b) Replace the Property with like Property of the same or later model, in good condition and working order, free and clear of all liens and encumbrances and xxxxx Xxxxxx the right to perfect its security interest in the replacement Property and such replacement shall be substituted in this lease by appropriate endorsement; or (c) Pay Lessor the replacement value per Exhibit A, less any rental payments previously paid. On such payment Lessee may mutually agree with Lessor that Lessee will be entitled to the Property as is, without warranties, express or implied, including warranties of merchantability or fitness for any particular purpose, except that such Property shall not be subject to any lien or encumbrance created by or arising through Lessor. Notwithstanding anything to the contrary above contained in this Section 11, Lessee shall have no responsibility or obligations if such loss or damage to the Property is caused by Lessor, its employees, or agents.