Definition; Division Clause Samples

Definition; Division. Lessor, any pertinent Leasehold Mortgagees and, if Lessee is not in default, Lessee, shall cooperate in prosecuting and collecting their respective claims for an award on account of a taking of all or any portion of the Premises and all damages or awards (with any interest thereon) to which Lessor, Lessee or any pertinent Leasehold Mortgagees may be entitled by reason of any taking of all or any portion of the Premises (herein referred to as "Condemnation Proceeds"). In the event of the taking or condemnation by any competent authority for any public or quasi-public use or purpose of all or any portion of the Premises at any time during the Lease Term, the rights of Lessor, Lessee, or any Leasehold Mortgagees, to share in the net proceeds of any award for land, Improvements and damages upon any such taking, shall be apportioned as follows: (a) Lessor shall receive the fair market value of its reversionary interest under this Lease (exclusive of any value attributable to Improvements) plus the net present value of the Rent due pursuant to the terms of this Lease for the period and proportionate acreage so condemned; for purposes of calculating the net present value, the Rent due shall be discounted at a rate equivalent to the current prevailing long-term interest rate established by the state treasurer on the date this Lease was approved by the Arizona State Land Department board of appeals. (b) Lessee shall receive that portion attributed to the then fair market value of Lessee's leasehold interest in the Premises so taken. The fair market value of Lessee's leasehold interest shall be the value of the Improvements constructed thereon, plus the amount, if any, by which economic or market rent for the property so condemned exceeds the contract rent pursuant to the terms of this Lease.