Health Net 2009 Annual Report Download - page 282

either: (i) terminating this Lease effective upon the date of the occurrence of such damage, in which event the Rent shall be abated
during the unexpired portion of this Lease; or (ii) electing to rebuild or repair the Premises diligently and in the manner determined by
Landlord. Landlord shall notify Tenant of its election within 30 days after Landlord’s receipt of notice of the damage or destruction.
If Landlord elects to rebuild or repair pursuant to this Section 14.3, Landlord shall restore and replace any of the Tenant
Improvements paid for by Landlord; provided, however, Landlord shall not be required to rebuild, repair or replace any part of any
Alterations which may have been placed on or about the Premises or paid for by Tenant. If Landlord elects to rebuild the Premises
and provides such written notice to Tenant, Tenant shall have the option to terminate this Lease effective upon the date of the
occurrence of such damage, in which event the Rent shall be abated during the unexpired portion of this Lease. Such option shall be
exercised, if at all, by notice from Tenant to Landlord within 15 days after Tenant’s receipt of Landlord’s notice of Landlord’s
election to rebuild.
14.4 Tenant’s Fault. Notwithstanding anything herein to the contrary, if the Premises or any other portion of the Building are
damaged by Casualty resulting from the negligence or intentional misconduct of Tenant or any of Tenant’s Parties, (i) with respect to
any portion of Rent that is not covered by the rental interruption insurance proceeds received by Landlord (or would have been
received had Landlord maintained rental interruption insurance as required by this Lease), Base Rent and Additional Rent shall not be
diminished during the repair of such damage, and (ii) Tenant shall be liable to Landlord for the cost and expense of the repair and
restoration of the Building caused thereby to the extent such cost and expense is not covered by insurance proceeds received by
Landlord (or would have been received had Landlord maintained the insurance required of Landlord by this Lease). In the event
Tenant is liable to Landlord pursuant to the preceding sentence, Tenant’s liability shall also include Tenant’s payment of Landlord’s
deductible under the property insurance policy required to be maintained by Landlord pursuant to this Lease.
14.5 Insurance Proceeds. Notwithstanding anything herein to the contrary, if the Premises or Building are damaged or
destroyed and are not fully covered by the insurance proceeds received by Landlord (or, in the event Landlord fails to maintain the
insurance required of Landlord by this Lease, would have been received had Landlord maintained the insurance required of Landlord
by this Lease), or if the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises requires that the
insurance proceeds be applied to such indebtedness, then in either case Landlord shall have the right to terminate this Lease by
delivering written notice of termination to Tenant within 30 days after the date of notice to Landlord that said damage or destruction
is not fully covered by insurance or such requirement is made by any such holder, as the case may be, whereupon this Lease shall
terminate.
14.6 Waiver. This Section 14 shall be Tenant’s sole and exclusive remedy in the event of damage or destruction to the Premises
or the Building. With respect to any damage which Landlord is obligated to repair or elects to repair, Tenant, as a material
inducement to Landlord entering into this Lease, irrevocably waives and releases its rights under the provisions of Sections 1932 and
1933 of the California Civil Code.
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