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ARTICLE XVI. DAMAGE TO LEASED PREMISES
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<br /> SECTION 16.1 RECONSTRUCTION OF DAMAGED PREMISES OR TERMINATION
<br />OF LEASE.
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<br /> (a) Reconstruction of Premises. In the event the Premises shall be partially or totally destroyed by fire or other
<br />casualty insured under the insurance carried by Landlord pursuant to Section 10.2 of this Lease as to become partially or
<br />totally untenable, then the damage to the Premises shall be promptly repaired unless Landlord shall elect not to rebuild as
<br />hereinafter provided. In the event the Premises become partially or totally untenable, the Minimum Annual Rent and other
<br />charges payable by Tenant to Landlord for the period during which such damage, repair or restoration continues shall be
<br />abated in proportion to the ratio of the Floor Area of the Premises rendered untenable to the total Floor Area of the
<br />Premises. Payment of full rental and all other charges so abated shall commence and Tenant shall be obligated to reopen
<br />for business on the thirtieth (30th) day following the date that Landlord advises Tenant that the Premises are tenantable,
<br />unless Tenant opens at an earlier time or remains open following destruction or damage. Landlord shall be obligated to
<br />cause such repairs to be made unless Landlord, at its sole option, elects to cause Tenant to make such repairs, in which
<br />event Tenant shall promptly complete the same and Landlord will make available to Tenant for the sole purpose of
<br />reconstruction of Tenant's improvements such portion of any insurance proceeds received by Landlord from its insurance
<br />carrier, under a policy carried pursuant to Section 10.2 of this Lease, allocated to the Premises by Landlord. In the event
<br />of any such reconstruction by Tenant, an architect duly registered in the State of California shall be selected and appointed
<br />by Tenant to prepare any necessary drawings and specifications and to supervise the work and direct the payment of such
<br />insurance proceeds. Such insurance proceeds shall be payable to Tenant only upon certificates of said architect stating
<br />that the payments specified therein are properly payable for the purpose of reimbursing Tenant for expenditures actually
<br />made by Tenant in connection with such work. At the election &Landlord or Landlord's mortgagee, direct payments may
<br />be made to material suppliers and laborers upon written certification by said architect that such payments are due and
<br />payable. Any such insurance proceeds in excess of Tenant's actual expenditures in restoring the damage or destruction
<br />shall belong to Landlord. In making repairs, restoration or reconstruction. Tenant, at its expense, shall comply with all
<br />laws, ordinances, and governmental rules and regulations and shall perform all work or cause such work to be performed
<br />with due diligence and in a first-class manner. All permits required in connection with said repairs, restoration and
<br />reconstruction shall be obtained by Tenant at Tenant's sole cost and expense. Any amount expended by Tenant in excess
<br />of insurance proceeds received by Landlord and made available to Tenant shall be the sole obligation of Tenant. In the
<br />event of reconstruction or repair by Landlord, any amount expended by Landlord in repairing the Premises in excess of the
<br />proceeds of insurance received by Landlord pursuant to Section 10.2 of this Lease allocated to the Premises shall be
<br />repayable by Tenant to Landlord within ten (10) days after receipt by Tenant from Landlord of a statement setting forth
<br />the amount of such excess. The party required hereunder to repair the damage to the Premises shall reconstruct such
<br />Premises in accordance with the Working Drawings and Specifications originally approved by Landlord or (at Landlord's
<br />sole election) new drawings prepared by Tenant and acceptable to Landlord and Tenant. in no event shall Landlord be
<br />required to repair or replace Tenant's merchandise, trade fixtures, furnishings or equipment. If either party repairs or
<br />restores the Premises pursuant to the provisions of this Article, Tenant shall continue the operation of its business in the
<br />Premises to the extent reasonably practicable from the standpoint of prudent business management, and the Minimum
<br />Rent payable hereunder for the period during which such damage, repair or restoration continues shall be abated in
<br />proportion to the degree to which the Premises are rendered untenable. There shall be no abatement of the Percentage
<br />Rent payable hereunder, and Tenant shall have no claim against Landlord for any damage suffered by Tenant by reason of
<br />any such damage, destruction, repair or restoration. In no event shall Landlord be required to repair or replace any of
<br />Tenant's property, including, but not limited to, Tenant's leasehold improvements, merchandise, trade fixtures, furnishings
<br />or equipment. Upon completion of such repair or restoration, Tenant shall promptly refixture and restock the Premises
<br />substantially to the condition prior to the casualty and shall reopen for business if closed by the casualty. Notwithstanding
<br />the above, Landlord shall repair as soon as practical all damages to the premises which result from causes
<br />attributable to Landlord.
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<br /> (b) Landlord's Option to Terminate Lease. If (i) more than thirty-five percent (35%) of the Floor Area of the
<br />building in which the Premises are located shall be damaged or destroyed by fire or other casualty, or (ii) during the last
<br />three (3) years of the term hereof, more than ten percent (I 0%) of the Floor Area of the Premises or of the building in
<br />which the Premises are located shall be damaged or destroyed by fire or other casualty, or (iii) all or any part of the
<br />Center or the building or the Premises are damaged or destroyed at any time by the occurrence of any risk not
<br />nsured under the standard form of fire and extended coverage policy then in use in Orange County, California, then
<br />Landlord may elect either to repair or rebuild the building and/or Premises, as the case may be, or, at its sole option, to
<br />terminate this Lease by giving written notice to Tenant of Landlord's election to so terminate, such notice to be given
<br />within ninety (90) days after the occurrence of such damage or destruction. If Landlord is required or elects to repair or
<br />rebuild, Tenant, at Tenant's sole cost, shall repair or replace Tenant's leasehold improvements, merchandise, trade
<br />fixtures, furnishings and equipment in a manner and to at least a condition equal to that prior to the damage or destruction
<br />thereof.
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<br />ARTICLE XVil. EMINENT DOMAIN
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<br /> SECTION 17.1 TOTAL CONDEMNATION OF LEASED PREMISES. if the whole of the Premises shall
<br />be taken by any public authority under the power of eminent domain or sold to public authority under threat or in lieu of
<br />such a taking, except for a taking for a temporary use, then the term of this Lease shall cease as of the day possession shall
<br />be taken by such public authority, and the rent and other charges shall be paid up to that day with a proportionate refund
<br />by Landlord of such rent and other charges as may have been paid in advance for a period subsequent to the date of the
<br />taking.
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