Common use of Equipment Replacement Clause in Contracts

Equipment Replacement. Except as otherwise provided herein, if any Unit is lost, stolen, destroyed, seized by governmental action or, in Lessee's opinion or Lessor's opinion, damaged ("Event of Loss"), this Lease shall remain in full force and effect without abatement of Rent and Lessee shall promptly replace such Unit at its sole expense with a Unit of equivalent value and utility, and similar kind and in substantially the same condition as the replaced Unit immediately prior to the Event of Loss. Title to such replacement Unit immediately shall vest and remain in Lessor, and such Unit shall be deemed Equipment under this Lease and the applicable Lease Schedule. Lessor shall cause to be paid to Lessee or the vendor of the replacement Unit any insurance proceeds actually received by Lessor as a result of the Event of Loss promptly upon receipt of such proceeds. Lessee shall promptly notify Lessor of any Event of Loss and shall provide Lessor with and shall enter into, execute and deliver such documentation, as Lessor shall reasonably request with respect to the replacement of any such Unit. Notwithstanding the foregoing, if there occurs an Event of Loss which constitutes, in Lessee's opinion, an actual or constructive total loss of all or a substantial portion of the Equipment, then Lessee shall have the option, exercisable upon written notice to Lessor, to terminate this Lease and purchase the Equipment in accordance with Section 21.2; provided, however, that if Lessee opts to purchase the Equipment under Section 21.2, then any insurance proceeds actually received by Lessor as a result of such Event of Loss shall be used to offset the amount due from Lessee to Lessor under Section 21.2 and the excess, if any, shall be promptly paid to Lessee.

Equipment Replacement. Except Unless Lessee exercises its purchase option under this Lease, the Lease Schedule or the Charter, and except as otherwise provided hereinin the Charter, if any Unit part of the Equipment is lost, stolen, destroyed, seized by governmental action or, in Lessee's opinion or Lessor's opinion, damaged ("Event of Loss"), this Lease shall remain in full force and effect without abatement of Rent and Lessee shall promptly replace such Unit Equipment at its sole expense with a Unit Equipment of equivalent value and utility, and similar kind and in substantially the same condition as the replaced Unit Equipment immediately prior to the Event of Loss. Title to such replacement Unit Equipment immediately shall vest and remain in Lessor, and such Unit Equipment shall be deemed Equipment under this Lease and the applicable Lease Schedule. Lessor shall cause to be paid to Lessee or the vendor of the replacement Unit Equipment any insurance proceeds actually received by Lessor as a result of the Event of Loss promptly upon receipt of such proceeds. Lessee shall promptly notify Lessor of any Event of Loss and shall provide Lessor with and shall enter into, execute and deliver such documentation, as Lessor shall reasonably request with respect to the replacement of any such UnitEquipment. Notwithstanding the foregoing, if there occurs an Event of Loss which constitutes, in Lessee's opinion, an actual or constructive total loss of all or a substantial portion of the Equipment, then Lessee shall have the option, exercisable upon written notice to Lessor, to terminate this Lease and purchase the Equipment in accordance with Section 21.2; provided, however, that if Lessee opts to purchase the Equipment under Section 21.2, then any insurance proceeds actually received by Lessor as a result of such Event of Loss shall be used to offset the amount due from Lessee to Lessor under Section 21.2 and the excess, if any, shall be promptly paid to Lessee.