Common use of Damage or Destruction of the Property Clause in Contracts

Damage or Destruction of the Property. (a) If, between the Effective Date and the Closing Date, the Property is Materially Damaged or Destroyed (as hereinafter defined), Purchaser may elect in writing, within five (5) days after receipt of notice by Purchaser from Seller of such damage or destruction, accompanied by information regarding the amount and payment of insurance (the "Casualty Notice Date"), to terminate this Agreement or to purchase all of the Property without regard to such damage or destruction. If Purchaser fails to notify Seller of Purchaser's election, Purchaser will be deemed to have elected to proceed with the purchase of all of the Property. In the event that Purchaser purchases all of the Property, Seller shall have no obligation to repair any such damage or destruction, nor shall the Purchase Price be adjusted except as provided in 8.1(b) below. "Materially Damaged or Destroyed" shall mean damage or destruction the repair or replacement of which, as determined by a licensed general contractor reasonably approved by Purchaser and Seller, would exceed $750,000 as to any casualty of a type against which insurance is maintained (a "Major Insured Casualty") or would exceed $100,000 as to any casualty against which insurance is not maintained (a "Major Uninsured Casualty"). If, between the Effective Date and the Closing Date, the Property sustains nonmaterial damage, the parties shall proceed to closing. If between the Effective Date and the Closing Date, the Property is Materially Damaged or Destroyed due to a Major Uninsured Casualty, Seller may elect in writing, within five (5) days after the Casualty Notice Date, to terminate this Agreement. If Seller fails to notify Purchaser of Seller's election, Seller will be deemed to have elected to proceed with the sale of all of the Property.

Damage or Destruction of the Property. (a) If, between the Effective Date and the Closing Date, the Property is Materially Damaged or Destroyed (as hereinafter defined), Purchaser may elect in writing, within five (5) days after receipt of notice by Purchaser from Seller of such damage or destructiondestruction (the "Casualty Notice Date"), accompanied by information regarding the amount and payment of insurance (the "Casualty Notice Date")insurance, to terminate this Agreement or to purchase all of the Property without regard to such damage or destruction. If Purchaser fails to notify Seller of Purchaser's election, Purchaser will be deemed to have elected not to proceed with the purchase of all of the Property. In the event that Purchaser purchases all of the Property, Seller shall have no obligation to repair any such damage or destruction, nor shall the Purchase Price be adjusted except as provided in 8.1(b) below. "Materially Damaged or Destroyed" shall mean damage or destruction the repair or replacement of whichwhich either would not be permitted due to the then effective requirements of any applicable law, ordinance, rule or regulation of any governmental or quasi-governmental agency having jurisdiction, or, as determined by a licensed general contractor having at least five (5) years experience in the construction of commercial office/warehouse buildings, selected by Seller and reasonably approved by Purchaser and SellerPurchaser, would exceed One Hundred Fifty Thousand ($750,000 150,000) Dollars as to any casualty of a type against which insurance is maintained (a "Major Insured Casualty") or would exceed One Hundred Thousand ($100,000 100,000) Dollars as to any casualty against which insurance is not maintained (a "Major Uninsured Casualty"). As used herein, repair or replacement means such repair or replacement to the Improvements as may be required to restore the Improvements to a condition having substantially the same design, specifications and equipment of the Improvements immediately prior to the casualty. If, between the Effective Date and the Closing Date, the Property sustains nonmaterial damage, the parties shall proceed to closingClosing. If between the Effective Date and the Closing Date, the Property is Materially Damaged or Destroyed due to a Major Uninsured Casualty, Seller may elect in writing, within five (5) days after the Casualty Notice Date, to terminate this Agreement. If Seller fails to notify Purchaser of Seller's election, Seller will be deemed to have elected not to proceed with the sale of all of the Property. Notwithstanding the foregoing, in the event that any damage or destruction results in the termination of any Lease, the Property shall be deemed to have been Materially Damaged or Destroyed due to a Major Insured Casualty.