Common use of Destruction of Improvements Clause in Contracts

Destruction of Improvements. As soon as is reasonably possible after damage and/or destruction to any or all of the Improvements on the Premises, but no later than 18 months after such damage and/or destruction, Tenant shall, at Tenant’s sole cost and expense (using Tenant’s insurance proceeds available for that purpose, together with Tenant’s own funds), commence to either repair and restore the Improvements as completely as possible to their condition immediately prior to the damage, or, in the alternative, replace the Improvements with buildings, structures, installations, fixtures, betterments, equipment, landscaping, and other improvements approved in advance by Landlord’s City Council. In the event any insurance proceeds of Tenant’s insurance policies shall remain unused after the completion of restoration or rebuilding to Landlord’s satisfaction, evidenced in writing, and if the Tenant shall not be in default under this Lease, then the remaining funds shall be paid to Landlord toward any unpaid rent and other sums due, including liquidated damages, with any remaining sum paid to Tenant. If the Premises have become wholly untenable due to the damage or destruction of the Improvements, Tenant may elect to not make the repairs and replacements and terminate this Lease thirty (30) days after serving Landlord with written notice of Tenant’s intent to terminate the Lease and in such instance cause all insurance proceeds to be assigned and paid to Landlord by such termination date. In either case, Tenant shall be and remain liable for and pay all insurance policy deductibles and all amounts not covered, paid, or reimbursed under Tenant’s insurance policies for the cost and expense to fully repair and/or replace the damaged or destroyed Improvements. Such insurance policy proceeds, deductibles, and other payments from Tenant paid to Landlord may be used by Landlord in Landlord’s sole and absolute discretion. In no case shall Landlord be obligated to make the repairs and/or replacements or otherwise rebuild the Improvements.

Destruction of Improvements. As soon as is reasonably possible after damage and/or destruction to any or all of the Improvements on the Premises, but no later than 18 months after such damage and/or destruction, Tenant shall, at Tenant’s sole cost and expense (using Tenant’s insurance proceeds available for that purpose, together with TenantXxxxxx’s own funds), commence to either repair and restore the Improvements as completely as possible to their condition immediately prior to the damage, or, in the alternative, replace the Improvements with buildings, structures, installations, fixtures, betterments, equipment, landscaping, and other improvements approved in advance by Landlord’s City Council. In the event any insurance proceeds of Tenant’s insurance policies shall remain unused after the completion of restoration or rebuilding to Landlord’s satisfaction, evidenced in writing, and if the Tenant shall not be in default under this Lease, then the remaining funds shall be paid to Landlord toward any unpaid rent and other sums due, including liquidated damages, with any remaining sum paid to Tenant. If the Premises have become wholly untenable due to the damage or destruction of the Improvements, Tenant may elect to not make the repairs and replacements and terminate this Lease thirty (30) days after serving Landlord with written notice of TenantXxxxxx’s intent to terminate the Lease and in such instance cause all insurance proceeds to be assigned and paid to Landlord by such termination date. In either case, Tenant shall be and remain liable for and pay all insurance policy deductibles and all amounts not covered, paid, or reimbursed under Tenant’s insurance policies for the cost and expense to fully repair and/or replace the damaged or destroyed Improvements. Such insurance policy proceeds, deductibles, and other payments from Tenant paid to Landlord may be used by Landlord in Landlord’s sole and absolute discretion. In no case shall Landlord be obligated to make the repairs and/or replacements or otherwise rebuild the Improvements.

Destruction of Improvements. As soon as is reasonably possible after damage and/or destruction Prior to any or all Seller’s delivery of possession of the Improvements on Property to Purchaser at Closing, the Premisesrisk of loss or damage to the Property shall remain upon Seller. The risk of loss transfers to Purchaser after delivery of possession of the Property to Purchaser at Closing. If, but no prior to Closing, the Property is materially damaged or destroyed by fire or other casualty, Seller shall promptly notify Purchaser of such fact. Purchaser shall have the option to terminate this Agreement upon notice to Seller given not later than 18 months five (5) days after receipt of Seller’s notice. If this Agreement is so terminated, then the Initial and Second Deposits and all interest accrued thereon in the depository bank shall be refunded to Purchaser. Purchaser and Seller shall pay one-half (1/2) the cost of any cancellation fees and costs of Escrow Agent or Title Company in such event; and neither Purchaser nor Seller shall have any further rights or obligations under this Agreement except for any surviving indemnity provisions of this Agreement. If Purchaser fails to notify Seller of its election within ten (10) days of receiving notification of the material damage and/or or destruction, Tenant shallthe Purchaser shall be deemed to have elected to proceed with Closing and the acquisition under this Agreement. For purposes of this Section 14, at Tenant’s sole cost and expense “material” damage or destruction shall mean damage or destruction that costs in excess of two percent (using Tenant’s insurance proceeds available for that purpose, together with Tenant’s own funds), commence 2%) of the Purchase Price to either repair and restore the Improvements as completely as possible to their condition immediately prior to the damage, or, or replace. If Purchaser does not so terminate this Agreement or in the alternative, replace the Improvements with buildings, structures, installations, fixtures, betterments, equipment, landscaping, and other improvements approved in advance by Landlord’s City Council. In the event any insurance proceeds of Tenant’s insurance policies shall remain unused after the completion of restoration or rebuilding to Landlord’s satisfaction, evidenced in writing, and if the Tenant shall not be in default under this Lease, then the remaining funds shall be paid to Landlord toward any unpaid rent and other sums due, including liquidated damages, with any remaining sum paid to Tenant. If the Premises have become wholly untenable due to the damage or destruction is not material, then neither Purchaser nor Seller shall have the right to either terminate this Agreement by reason of such damage or destruction, or waive its right to terminate, in which case Seller shall promptly comply with the terms and requirements of any Tenant Lease, the PFC Encumbrance or any other applicable agreement binding on Seller and/or the Real Property and any obligations under applicable law with regard to the repair or restoration of such damage, provided, however, that if the date of occurrence of the Improvementsloss is such that it can not reasonably be repaired or restored prior to Closing and the failure to repair does not otherwise (a) prevent the Closing, Tenant may elect including, without limitation, (i) the assumption of the PFC Encumbrance and (ii) the transfer of physical assets under HUD Form 92266 (or its successor application form), or (b) expose Purchaser or the Real Property to not make the repairs any claim for damages or penalty, then at Closing Seller shall assign and replacements and terminate this Lease thirty (30) days after serving Landlord with written notice of Tenant’s intent turn over to terminate the Lease and in such instance cause Purchaser all insurance proceeds paid or payable with respect to be assigned and paid to Landlord by such termination date. In either casedamage or destruction, Tenant shall be and remain liable for and pay all plus the amount of any deductible under Seller’s insurance policy deductibles and all amounts Purchaser and Seller shall proceed to close the transaction pursuant to the terms of this Agreement, without modifications of the terms of this Agreement and without any reduction in the Purchase Price. It is expressly understood and agreed to by Purchaser that except as provided in this paragraph Seller shall not covered, paid, or reimbursed under Tenant’s insurance policies for the cost and expense to fully repair and/or replace the damaged or destroyed Improvements. Such insurance policy proceeds, deductibles, and other payments from Tenant paid to Landlord may be used by Landlord in Landlord’s sole and absolute discretion. In no case shall Landlord be is not obligated to make any repairs to the repairs and/or replacements Property in the event of damage or otherwise rebuild destruction by fire or other casualty and Seller’s assignment of the Improvementsinsurance proceeds and the payment of the deductible under Seller’s insurance policy to Purchaser is made so that Purchaser is responsible for any such repairs.

Destruction of Improvements. As soon as is reasonably possible after damage and/or destruction to any or all If the improvements which constitute a portion of the Improvements on the PremisesLeased Premises shall be damaged by fire or other casualty, but no later than 18 months after then Lessee shall immediately notify Lessor. Within 10 days of its receipt of such notice, Lessor shall give a notice to Lessee ("Lessor's Damage Notice") stating whether, in Lessor's reasonable opinion, such damage and/or destruction, Tenant shall, at Tenant’s sole cost and expense (using Tenant’s can be repaired from the insurance proceeds available alone within 180 days after receipt of all necessary permits for repair of the damaged improvements (the "Repair Permits"). If Lessor's Damage Notice states that purpose, together with Tenant’s own funds), commence to either repair and restore such damage cannot be so substantially repaired from the Improvements as completely as possible to their condition immediately prior to the damage, or, in the alternative, replace the Improvements with buildings, structures, installations, fixtures, betterments, equipment, landscaping, and other improvements approved in advance by Landlord’s City Council. In the event any insurance proceeds of Tenant’s insurance policies shall remain unused after the completion of restoration or rebuilding to Landlord’s satisfaction, evidenced in writing, and if the Tenant shall not be in default under this Leasewithin said 180 day period, then Lessee alone during the remaining funds shall be paid to Landlord toward Initial Term or any unpaid rent and other sums due, including liquidated damages, with any remaining sum paid to Tenant. If the Premises have become wholly untenable due to the damage or destruction of the Improvements, Tenant Renewal Term may elect to not make the repairs and replacements and terminate this Lease by written notice to the Lessor within thirty (30) days after serving Landlord with written notice of Tenant’s intent the date of Lessor's Damage Notice. If this Lease is not terminated as provided herein, then: (i) Lessor shall diligently endeavor to terminate obtain the Lease Repair Permits; and in such instance cause all (ii) from the insurance proceeds paid to Lessor under the insurance policies provided herein, then; (i) Lessor shall diligently endeavor to obtain the Repair Permits; and (ii) from the insurance proceeds paid to Lessor under the insurance policies provided herein to be assigned carried by Lessee, and, to the extent such insurance proceeds are not sufficient to complete such repair and paid reconstruction, from additional funds supplied by Lessee (and not by Lessor), Lessee shall diligently endeavor to Landlord substantially complete the repair and reconstruction of the Leased Premises to substantially the same condition existing immediately prior to such damage or destruction within 180 days after the later of receipt of the Repair Permits or receipt of such insurance proceeds. If this Lease is not terminated by such termination date. In either caseLessee as provided herein, Tenant then until the repair and reconstruction of the Leased Premises is substantially complete, Lessee shall be required to pay the Base Rent and remain liable for and pay all insurance policy deductibles and all other amounts not covered, paid, or reimbursed under Tenant’s insurance policies payable by Lessee hereunder only for the cost portion of the Leased Premises that is usable while such repairs and expense to fully repair and/or replace the damaged or destroyed Improvements. Such insurance policy proceeds, deductibles, and other payments from Tenant paid to Landlord may be used by Landlord in Landlord’s sole and absolute discretion. In no case shall Landlord be obligated to make the repairs and/or replacements or otherwise rebuild the Improvementsreconstruction are being made.