According to company chairman Gordon Arnell, deputy chair BruceFlatt, president and CEO-elect Ric Clark and John Zuccotti,chairman Brookfield Financial Properties, tenants of two of theaffected properties, comprising roughly half the total space,signed triple net bond leases, which stipulate that they mustcontinue to pay rent regardless of damage to the building. Theother two buildings' tenants, they say, are prohibited fromterminating their leases for the next 18 months.

With regard to insurance coverage on the properties, Clark says,"all costs from the fallout of the attack including the full costsof repairs" are covered. He also says acts of terrorism are coveredunder the policy but that if the government deems the attack an actof war, "I believe it is exclusionary."

Clark disputes statements made over the weekend by Merrill Lynchfollowing a tour of the Financial Center properties by companypresident and COO E. Stanley O'Neal. Merrill Lynch subsequentlyestimated that the firm would need up to three months to get itsspace at Four World Financial Center up and running and as long asa year to repair the damage at Two WFC, estimates that Clark called"conservative." Sticking to his claim of an eight-week rebuild,Clark says, "We continue to believe that we can get people into thebuildings in that time frame."

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