Common use of Rent Reduction Clause in Contracts

Rent Reduction. If Tenant does not terminate or if Tenant does not have a right to terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the rent shall be reduced in the proportion that the floor area taken bears to the total floor area of the building included in the Premises. Land areas taken shall not cause a reduction in rent. If this Lease is not so terminated, the condemnation proceeds shall be applied (a) first in satisfaction and discharge of all assessments, if any, for both principal and interest levied on the Premises or any part of the Premises for benefits resulting from the improvements for which or in conjunction with which the condemnation was effected; and (b) so much of the balance as is necessary to pay the cost of restoration of injury to, or damage to, the buildings or improvements located on the Premises resulting from the condemnation.