Laserfiche WebLink
31 <br />4859-3312-3005v4 <br />Section 11.1 Damage or Destruction to Leased Premises. Lessee shall give prompt <br />written notice to Lessor after the occurrence of any fire, earthquake, act of God or <br />other casualty to or in connection with the Leased Premises, the Improvements or <br />any portion thereof (hereinafter sometimes referred to as “Casualty”). Subject to <br />Section 11.2 below, if during the Term the Improvements shall be damaged or <br />destroyed by Casualty, Lessee shall repair or restore the Improvements, so long as <br />Lessee determines, in its reasonable discretion, that it is feasible to do so and in <br />such event Lessee provides or causes to be provided sufficient additional funds <br />which, when added to such insurance proceeds, will fully effect such repair or <br />restoration. Upon the occurrence of any such Casualty, Lessee, promptly and with <br />all due diligence, shall apply for and collect all applicable insurance proceeds <br />recoverable with respect to such Casualty, for the benefit of the Lenders. In the <br />event that Lessee shall determine, with Investor’s prior written consent during the <br />Compliance Period (as defined in Section 42 of the Code), subject to the rights of <br />the Lenders, by notice to Lessor given within thirty (30) days after receipt by <br />Lessee of any such insurance proceeds, that it is not economically practical to <br />restore the Improvements and/or the Leased Premises to substantially the same <br />condition in which they existed prior to the occurrence of such Casualty, then, <br />subject to the written approval of Lenders, Lessee may terminate this Lease as of a <br />date that is not fewer than thirty (30) days after the date of such notice. If Lessee <br />terminates this Lease pursuant to this Section 11.1, Lessee shall surrender <br />possession of the Leased Premises to Lessor immediately and assign to Lessor (or, <br />if same has already been received by Lessee, pay to Lessor) all of its right, title and <br />interest in and to the proceeds from Lessee’s insurance upon the Leased Premises, <br />subject to the prior rights of any Lender therein, as referenced in Section 11.3 <br />below. <br />Section 11.2 Damage or Destruction Near End of Term. If, during the last seven (7) <br />years of the Term, the Improvements shall be damaged by Casualty, then Lessee <br />shall have the option, to be exercised within one hundred twenty (120) days after <br />such Casualty: <br />(a) to repair or restore the Improvements as hereinabove provided in this <br />Article 11; or <br />(b) subject to the rights and approval of Lenders, to terminate this Lease by <br />notice to Lessor, which termination shall be deemed to be effective as of the date of Casualty. If <br />Lessee terminates this Lease pursuant to this Section 11.2, Lessee shall surrender possession of <br />the Leased Premises to Lessor immediately and assign to Lessor (or, if same has already been <br />received by Lessee, pay to Lessor) all of its right, title and interest in and to the proceeds from <br />Lessee’s insurance upon the Leased Premises, subject to the prior rights of any Lender therein, as <br />referenced in Section 11.3 below. <br />Section 11.3 Distribution of Insurance Proceeds. In the event that this Lease is <br />terminated pursuant to Sections 11.1 or 11.2 hereof, the insurance proceeds <br />received as the result of such Casualty shall be distributed as follows: (a) first, if <br />Leasehold Mortgage(s) are in place, to the Lenders to the extent of any <br />Page 111 of 428