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11. DESTRUCTION OF DEMISED PREMISES: <br /> A. If the Premises are totally destroyed by fire or other casualty, <br /> then this Lease shall terminate. If the Premises are damaged or destroyed at any <br /> time during the Term by a casualty that is not ordinarily insurable, to an extent in <br /> excess of thirty percent (30%) of the replacement cost of the Building, then either <br /> party may terminate this Lease by giving written notice to the other within forty-five <br /> (45) days following the date such damage or destruction occurs. If the damage to <br /> the Premises cannot be repaired within one hundred twenty (120) days after the <br /> date of such damage or destruction, either party may terminate this Lease by giving <br /> written notice to the other party within forty-five (45) days following the date such <br /> damage or destruction occurs. In such event, this Lease will be deemed terminated <br /> as of the date such damage occurred and all Rent payments will be prorated as of <br /> such date. <br /> B. If neither party exercises a right pursuant to this Section to <br /> terminate this Lease in the event of damage or destruction, Landlord will promptly <br /> commence and diligently prosecute to completion such repairs as are necessary to <br /> restore the Premises to substantially the same condition as they were in immediately <br /> prior to such damage or destruction. All Rent will be equitably reduced, based on <br /> the extent to which the damage or destruction interferes with Tenant's use of the <br /> Premises, between the date of the damage or destruction and the date of complete <br /> restoration. In the event that such repairs and restoration are not substantially <br /> completed within six (6) months from the date such damage occurred, then Tenant, <br /> at its option, may terminate this Lease by giving written notice to Landlord at any <br /> time prior to Landlord's completion of such repairs and restoration, which termination <br /> shall be effective thirty (30) days following the date of such notice. <br /> C. If either party elects to terminate this Lease pursuant to this <br /> Section, Tenant will deliver the Premises to Landlord in its damaged condition and <br /> neither party will have any obligation to repair or rebuild. In such event any <br /> insurance proceeds will belong to Landlord except any portion covering loss of or <br /> damage to Tenant's personal property. <br /> D. Landlord and Tenant intend that the provisions of this Section <br /> govern fully in the event of any damage or destruction of the Premises, and <br /> accordingly, Landlord and Tenant each hereby waive the provisions of any statute, <br /> including California Civil Code Sections 1932(2) and 1933(4), with respect to any <br /> rights or obligations concerning damage or destruction in absence of any express <br /> agreement among the parties. <br /> 12. PROHIBITED USES; COMPLIANCE WITH LAW: Tenant shall not do, <br /> and shall use Tenant's best efforts to prevent any thing being done, in or about the <br /> Premises or bring or keep anything therein, which will in any way conflict with any <br /> valid law which may now or hereafter be enacted, or create a nuisance, or commit or <br /> 9 <br />