Fill and Sign the Example 2 Clause Dealing with Fire Damage Form

11.02[4]a Example 2: Clause Dealing with Fire Damage(1) mandatory obligation of the landlord to rebuild; (2) time periods for reconstruction; (3) continuation of abatement periods; (4) appropriate "what ifs" in the event portions of the premises cannot be restored and are deemed to be indispensable; and (5) circumstances when the landlord or tenant can elect to terminate the lease. Many issues are not covered in the example, however, including the obligation of the landlord to restore the property of the tenant within the premises. Clauses generally tend to require the tenant to insure its personal property. Typically, the building fire casualty insurance only covers the fixtures and tenant installation that become a portion of the real property. Section 11.01. If the Building or the Demised Premises shall be partially or totally damaged or destroyed by fire or other cause (and if this Lease shall not have been terminated as in this Article 11 hereinafter provided), the Landlord shall repair the damage and restore and rebuild the Building and/or the Demised Premises, except for Tenant's Work and Tenant's personal property, at its expense with reasonable dispatch in accordance with good construction practice after notice to it of the damage or destruction. Section 11.02. If the Building or the Demised Premises shall be damaged or destroyed by fire or other cause, then the rents payable hereunder shall be abated to the extent that the Demised Premises shall have been rendered untenantable or inaccessible for the reasonable conduct of Tenant's normal business operations for the period from the date of such damage or destruction to the earlier to occur of (x) 180 days following the date on which Landlord substantially completes the repair and restoration work that Landlord is required to perform under this Article 11 and (y) the date of Tenant's occupancy of the Demised Premises for the conduct of its normal business following such casualty, such abatement to be granted on a pro rata basis if only a portion of the Demised Premises is so rendered untenantable or inaccessible; provided, however, that should Tenant reoccupy a portion of the Demised Premises as to which the abatement is in effect during the period the restoration work is taking place and prior to the date that the whole of said Demised Premises are made tenantable, Basic Annual Rent and Additional Rent allocable to such portion shall be payable by Tenant from the date of such occupancy. Landlord shall be deemed to have substantially completed the repair and restoration work that Landlord is required to perform under this Article 11 notwithstanding that (i) Punchlist Work remains to be performed, the non-completion of which does not unreasonably interfere with Tenant's ability to perform Tenant's Work and (i) portions thereof are incomplete which under good construction scheduling practice should be done after the completion of the still incomplete portions of Tenant's Work (which Punchlist Work will be diligently completed by Landlord as soon as reasonably practical). Notwithstanding anything to the contrary contained herein, in the event that substantial completion by Landlord of such repair and restoration work is delayed by reason of any delays caused or occasioned by Tenant, its agents, servants, employees, architects, engineers, servants, contractors or subcontractors, then Tenant (in addition to paying the costs and damages Landlord may sustain by reason thereof) agrees that substantial completion by Landlord of such repair and restoration work shall be deemed to have occurred on the date on which substantial completion of such work would have occurred had not the completion of such work been so delayed by Tenant, et al. Section 11.03. (a) If the Building shall be so damaged or destroyed by fire or other cause (whether or not the Demised Premises are damaged or destroyed) as to require a reasonably estimated expenditure made by Landlord or a reputable contractor designated by Landlord of more than forty percent (40%) of the full insurable value of the Building immediately prior to the casualty (or ten percent (10%) if such casualty occurs during the last two years of the Term) then Landlord may terminate this Lease by giving Tenant notice to such effect within one hundred eighty (180) days after the date of the casualty and upon such notice this Lease and the estate hereby granted, whether or not the Term shall have theretofore commenced, shall terminate as if that date was the Expiration Date.(b) In case of any damage or destruction mentioned in this Article 11 which Landlord is required to repair and restore, if (1) more than thirty- five percent (35%) of the rentable square footage of the Demised Premises shall be damaged or destroyed and rendered untenantable or inaccessible or (2) Tenant's main computer room or main mail room shall be damaged or destroyed and rendered untenantable or inaccessible (each a "Substantial Casualty") and, in the reasonable good faith opinion (the "Estimate") of an independent licensed architect or engineer selected by Landlord having at least five (5) years' experience in such matters, the repair and restoration required to be performed by Landlord pursuant to this Article 11 cannot be substantially completed within fifteen (15) months after the Adjustment Date (as hereinafter defined) then Tenant shall be entitled to terminate this Lease on sixty (60) days' notice to Landlord given within thirty (30) days after receipt of the Estimate, and upon delivery of such notice and the expiration of such 60-day period, this Lease and the Term shall expire as fully and completely as if such date were the date set forth above for the termination of this Lease and Tenant shall forthwith quit, surrender and vacate the Demised Premises in accordance with the provisions of this Lease. The Estimate shall set forth the date (the "Estimated Date") by which it is reasonably estimated that the repair and restoration required to be performed by Landlord pursuant to this Article 11 will be completed and the Estimate shall be provided by Landlord to Tenant within sixty (60) days after such fire or casualty. For purposes hereof the "Adjustment Date" is the date which is (i) ninety (90) days after the date of such Substantial Casualty if the estimated time to perform such repair and restoration is fifteen (15) months or less or (ii) one hundred eighty (180) days after the date of such Substantial Casualty if the estimated time to perform such repair and restoration is greater than fifteen (15) months. (c) In addition, and notwithstanding anything herein to the contrary, in the event of any Substantial Casualty, if ninety percent (90%) (as reasonably estimated by said independent architect or engineer) of such work of repair or restoration to both the Demised Premises and the Building required to be performed by Landlord pursuant to this Article 11 is not substantially completed by the Outside Restoration Date (as hereinafter defined), as such Outside Restoration Date may be extended due to Force Majeure Clauses (not to exceed six (6) months in the aggregate) and delays caused or occasioned by Tenant, its agents, employees, contractors, subcontractors, architects, engineers or servants, then, if Landlord shall have failed to substantially complete the repair and restoration by the ninetieth (90th) day following the Outside Restoration Date, subject to Force Majeure Causes (not to exceed six (6) months in the aggregate) and such delays of Tenant et al., Tenant shall be entitled to terminate this Lease on sixty (60) days' notice to Landlord given within thirty (30) days after the expiration of said (90) day period following the Outside Restoration Date and, upon the giving of such notice and the expiration of such (60) day period, this Lease and the term shall expire as provided in Section 11.03(b). For purposes hereof the Outside Restoration Date is the date which is later to occur of (1) fifteen (15) months after the Adjustment Date and (2) the Estimated Date if the Estimated Date was greater than fifteen (15) months after the Adjustment Date and Tenant did not elect to terminate this Lease as provided above.Section 11.04. Except for the rent abatements expressly provided for in Section 11.02, no damages, compensation or claim shall be payable by Landlord for inconvenience, loss of business or annoyance arising from any repair or restoration of any portion of the Demised Premises or of the Building or of the Complex arising from damage or destruction caused by fire or other casualty and Landlord shall not be required to do any such repair or restoration except on Business Days from 9:00 A.M. to 5:00 P.M. Section 11.05. Notwithstanding any of the foregoing provisions of this Article 11, if Landlord or the lessor of any superior lease or the holder of any superior mortgage shall be unable to collect all of the insurance proceeds (including rent insurance proceeds) applicable to damage or destruction of the Demised Premises or the Property by fire or other cause by reason of some wrongful action or inaction after the date of the damage or destruction on the part of Tenant or any of its officers, partners, directors, employees, agents or contractors, then, without prejudice to any other remedies which may be available against Tenant, there shall be no abatement of Tenant's rent, but the total amount of such rent not abated (which would otherwise have been abated) shall not exceed the amount of uncollected insurance proceeds. Section 11.06. Landlord will not carry separate insurance of any kind on Tenant's property (including, without limitation, any property of Tenant's which shall become the property of Landlord as provided in Article 6), and, except as provided by law, shall not be obligated to repair any damage thereto or replace or clean the same, or any decorations, installations, equipment or fixtures installed by or for Tenant at Tenant's expense. Section 11.07. The provisions of this Article 11 shall be considered an express agreement governing any cause of damage or destruction of the Demised Premises by fire or other casualty and any law providing for such a contingency now or hereinafter erected shall have no application in such case. Section 11.08. In the event that either Landlord or Tenant terminates this Lease pursuant to this Article 11, the parties hereto agree that (i) Tenant shall have no obligation to restore or repair the Demised Premises and (ii) Tenant shall have the sole right to make a claim for and retain the proceeds of any insurance carried by Tenant on Tenant's Work and Tenant's property.