Common use of Demolition Account Clause in Contracts

Demolition Account. (a) At least five (5) years prior to the expiration of this Lease, Landlord shall notify Tenant if the Improvements are to remain at the expiration of the Lease or be demolished by Tenant upon Lease expiration as set forth in Section 2.12. 1. If Landlord notifies Tenant that the Improvements are to be demolished, then the Demolition Account shall be established by Tenant and used to pay for Tenant’s obligations to demolish the improvements upon expiration or earlier termination of this Lease. Tenant shall maintain the Improvements until they are demolished in accordance with the requirements of this Lease. (b) Within thirty (30) days after delivery of notice that the Improvements are to be demolished at the expiration of the Lease, Tenant shall secure bids from three (3) licensed contractors for the demolition of the Improvements. Tenant shall, on the first day of the second month after the month in which Landlord gives Tenant notice of its election to have the Improvements demolished at the end of the Term, commence making annual payments equal to one fifth (1/5th) of the average of the three (3) bids for the demolition, to cover the cost of Tenant’s demolition obligations. Such payments shall be placed in an independent and interest-bearing trust account with an Institutional Lender. Interest earned on the account shall be applied toward the cost of demolition. Tenant shall apply the proceeds in such trust account toward Tenant’s demolition obligations, except to the extent insurance proceeds are to be applied to such costs in accordance with the provisions of Section 9.2.2 hereof. The actual amount of money in such trust account shall not limit Tenant’s obligation to demolish the Improvements, nor Tenant’s obligation to pay for the entire cost of such demolition. Upon expiration of the Lease and completion of demolition of the Improvements, and restoration of the Premises to a level, unimproved state with all debris removed and all excavations filled in, vacant and free of liens and claims, all amounts in such demolition trust account not expended for such demolition shall be the property of Tenant. (c) Tenant’s demolition of the Improvements shall be performed in a good and workmanlike manner and in compliance with all Laws.

Demolition Account. (a) At least five (5) years prior to the expiration of this Lease, Landlord shall notify Tenant if the Improvements are to remain at the expiration of the Lease or be demolished by Tenant upon Lease expiration as set forth in Section 2.12. 116.2.1. If Landlord notifies Tenant that the Improvements are to be demolished, then the Demolition Account shall be established by Tenant and used to pay for Tenant’s obligations to demolish the improvements upon expiration or earlier termination of this Lease. Tenant shall maintain the Improvements until they are demolished in accordance with the requirements of this Lease. (b) Within thirty (30) days after delivery of notice that the Improvements are to be demolished at the expiration of the Lease, Tenant shall secure bids from three (3) licensed contractors for the demolition of the Improvements. Tenant shall, on the first day of the second month after the month in which Landlord gives Tenant notice of its election to have the Improvements demolished at the end of the Term, commence making annual payments equal to one fifth (1/5th) of the average of the three (3) bids for the demolition, to cover the cost of Tenant’s demolition obligations. Such payments shall be placed in an independent and interest-bearing trust account with an Institutional Lender. Interest earned on the account shall be applied toward the cost of demolition. Tenant shall apply the proceeds in such trust account toward Tenant’s demolition obligations, except to the extent insurance proceeds are to be applied to such costs in accordance with the provisions of Section 9.2.2 hereof. The actual amount of money in such trust account shall not limit Tenant’s obligation to demolish the Improvements, nor Tenant’s obligation to pay for the entire cost of such demolition. Upon expiration of the Lease and completion of demolition of the Improvements, and restoration of the Premises to a level, unimproved state with all debris removed and all excavations filled in, vacant and free of liens and claims, all amounts in such demolition trust account not expended for such demolition shall be the property of Tenant. (c) Tenant’s demolition of the Improvements shall be performed in a good and workmanlike manner and in compliance with all Laws.