Damage and Destruction Provisions of a Commercial Lease

Example 2A: Destruction Clause (Long Form)

Example 2A:

Destruction of the Premises

(a) If the Premises are totally damaged or rendered wholly unusable by fire, earthquake or other casualty, then the Rental shall be proportionately paid up to the time of the casualty and thenceforth shall cease until the date on which, in Tenant's reasonable judgment, the Premises may be used by Tenant for the conduct of its business. Landlord shall repair and restore the Premises and all items of Landlord's Work, or provide the alteration allowance as set forth in Section of this Lease, at Tenant's election, at Landlord's own expense, subject to Landlord's right to elect not to restore the same as hereinafter provided. If the Premises are partially damaged or rendered partially unusable by fire, earthquake or other casualty, the damages thereto shall be repaired by and at the expense of Landlord and the rental, until such repair shall be substantially completed, shall be apportioned from the day following the casualty according to the part of the Premises which is usable. If in excess of Thirty Five (35%) percent of the Premises is damaged or rendered wholly or substantially untenantable or if Tenant's operations area, computer or communications facilities are destroyed or if the Premises cannot be reasonably expected to be restored to its condition prior to the destruction by Landlord under a normal working schedule within a period of One Hundred Eighty (180) days after the occurrence of such fire, earthquake or other casualty, Tenant may elect to terminate this Lease by written notice to Landlord given within Sixty (60) days after such fire, earthquake or other casualty. If the Building, whether or not the Premises are damaged in whole or in part, shall be so damaged by fire, earthquake or other casualty that Landlord shall decide to demolish it or rebuild it, then Landlord may elect to terminate this Lease by written notice to Tenant given within Sixty (60) days after such fire, earthquake or other casualty, provided that Landlord's election to terminate this Lease shall be ineffective unless all leases covering space in the Building and in existence on the day of such fire, earthquake or other casualty have been terminated or notice of termination of said leases has been given to the respective tenants thereunder no later than the date on which the Landlord gives Tenant notice of its exercise of its election to terminate this Lease.

(b) If either Landlord or Tenant shall give notice of termination pursuant to this Section, such notice shall specify a date for the expiration of this Lease, which date shall not be more than Sixty (60) days after the giving of such notice. Upon the date specified in such notice, the term of this Lease shall expire as fully and completely as if such date were the date set forth above for the termination of this Lease. Tenant shall forthwith quit, surrender and vacate the Premises without prejudice, however, to the rights and remedies of either party against the other under the Lease provisions in effect prior to such termination. Any rental owing shall be paid up to the date of such fire, earthquake or other casualty and any payment of rent made by Tenant that was on account of any period subsequent to such date shall be returned to Tenant. Unless Landlord or Tenant shall serve an effective termination notice as provided herein, Landlord shall make repairs and restoration required herein, as expeditiously as possible, subject to delays due to labor troubles, delivering of materials, governmental controls or procedures, adverse weather conditions, any form of act of God, adjustment of an insurance claim. If Landlord has not completed restoration within the One Hundred Eighty (180) days specified above, plus an additional Sixty (60) day period for delays caused by the circumstances set forth in the preceding sentence, Tenant may terminate this Lease on Ten (10) days notice to Landlord.