Fill and Sign the Is the Condemnation Clause in Your Lease Going Faegre Form

11.05[5]a Example 1: Condemnation ClauseThe following is an example of a condemnation clause from an early 1980's lease. Although a clause such as this one is rarely seen these days, it illustrates a mild effort to deal with some of the issues discussed above. Section 11. Condemnation: In the event the whole of the building, or the whole of the means of access to the demised premises, or the whole of the facilities and systems serving same, or the whole of the demised premises shall be lawfully condemned or taken in any manner for any public or quasi-public use or purpose, the term of this lease shall cease and terminate from the date of title vesting. In the event of such termination, this lease and the term and estate hereby granted shall expire as of the date of such termination with the same effect as if that were the date hereinbefore set for the expiration of the term of this lease, and the Base Rent and additional rent hereunder shall be apportioned as of such date. In the event that only a "substantial part" of the demised premises is so acquired or condemned, either party, at its option, by delivery of notice to the other within 30 days following the date on which Tenant shall have received notice of vesting of title, may terminate this lease as of the date of vesting of title. "A substantial part" shall be fifty percent (50%) or more of the demised premises provided that for the purpose of determining whether Tenant has an option to terminate by reason of a "substantial part" being taken, if any part of the seventh floor is so acquired or condemned, at Tenant's option, the eighth floor may be deemed so acquired or condemned. In the event either party does not exercise such option, this lease shall remain in effect, except the Base Rent and additional rent shall be abated as of the date of vesting of title in an amount apportioned according to the area so condemned or taken (but for this purpose if any part of the seventh floor is taken, the eighth floor shall be deemed taken to the extent Tenant does not use such floor by reason of such taking) and Landlord and Tenant shall execute an amendment to this lease specifying the new Base Rent, Net Base Rent, additional rent pursuant to Section 5 and electricity factor. Any dispute regarding such reduced Base Rent and additional rent shall be determined by arbitration before the American Arbitration Association in New York City. Pending the determination of said dispute Tenant shall pay without prejudice Base Rent and additional rent in accordance with Landlord's statements. If such dispute is ultimately determined in Tenant's favor, Landlord shall, promptly after such determination, pay to Tenant any amount so overpaid, plus interest, if applicable, as provided in Section 43. In the event only a "substantial part" is condemned or taken as aforesaid and neither party exercises the option, Landlord, at its expense, will restore the remaining portion with reasonable diligence at least to the condition existing prior to such condemnation or taking. Tenant shall be permitted, subject to the prior rights of Superior Mortgagees and Superior Lessors, to make rights of Superior Mortgagees and Superior Lessors, to make a separate claim, in the event of a termination of this Lease in a condemnation proceeding, for the unamortized cost of "Improvements" (as hereinafter defined) made by or on behalf of Tenant, for damage to personal property and Tenant's moving costs. "Improvements" shall mean improvements, alterations, additions, installations, substitutions, betterments and decorations made by or on behalf of Tenant or any person claiming through or under Tenant. If pursuant to Subsection I of Section 5 of this lease, Tenant is obligated to pay real estate taxes based upon a "benefit assessment," then in the event of a condemnation affecting the demised premises, Landlord shall reimburse Tenant for such tax payments made by Tenant for such benefit assessments. The Term "unamortized costs" shall mean the total cost of Improvements made at Tenant's sole cost and expense by or on behalf of Tenant in connection with Tenant's initial occupancy of the Premises, and all other Improvements made by or on behalf of Tenant and at Tenant's sole cost and expense during the Term (provided notice of the total cost thereof shall have been given by Tenant to Landlord within 30 days after the completion of each such Improvement), reduced by a fraction of such costs for each month occurring between the date of incurring such cost and the date on which such vesting or acquisition of title occurs by virtue of said condemnation, the numerator of such fraction being one and the denominator being the number of full calendar months remaining in the term hereof as of the date of incurring such cost.In the event of a condemnation, Tenant's right to participate in any award therefrom, as set forth herein, shall be subject to the prior rights of the Superior Mortgagee and the Superior Lessor.