Common use of Damage or Destruction in Last Five Years of the Term Clause in Contracts

Damage or Destruction in Last Five Years of the Term. During the last five (5) years of the Term, Tenant may elect not to repair or restore the Improvements as otherwise required by Section 9.2.1 if such damage or destruction is more than fifty percent (50%). Similarly, during the last two (2) years of the Term, Tenant may elect not to repair or restore the Improvements as otherwise required by Section 9.2.1 if such damage or destruction is more than twenty percent (20%) of the then replacement value of the Improvements. If Tenant makes such an election not to repair or restore the Improvements, Tenant shall automatically and unconditionally pay all insurance proceeds to Landlord, which shall be applied as set forth in Section 9.2.1 above, and to the extent that the insurance proceeds do not cover the then replacement cost of the Improvements, Tenant shall pay Landlord the balance not covered by such insurance proceeds. Landlord may, following such termination, elect to direct Tenant to use the insurance proceeds plus, as necessary, any portion of the balance to be paid by Tenant to Landlord to demolish the Improvements, remove all debris and grade and clean the Premises in which case Landlord shall retain all remaining insurance proceeds, if any, plus the remaining portion of Tenant’s contribution of the balance not covered by insurance proceeds.