Common use of Material Taking Clause in Contracts

Material Taking. (a) (i) In the event of a Taking of the entire Demised Premises, this Lease shall automatically cease and terminate upon the date that title is vested in the Taking authority and all Fixed Rent and Additional Rent shall be paid up to that date. In the event of a Taking of the entire Demised Premises during the Term, in addition to any award received by Landlord and in addition to all other payments required to be made by Tenant hereunder, and in the event such Taking is effected by the City of New York or any of its agencies or instrumentalities, or by the MTA, or by New York State on behalf of the MTA, Tenant shall pay Landlord an additional amount equal to twenty-five (25%) percent of the award received by Landlord in the condemnation proceeding (which award, for purposes of calculating the additional amount paid to Landlord, shall not be reduced by such amount). Landlord and Tenant agree that this additional amount represents Landlord’s recovery of its loss of business opportunity and such amount is not a penalty.