Contraction Option Clause Samples
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Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contra...
Contraction Option. The option to contract granted by Landlord to Tenant under this Lease shall be as set forth in Exhibit C hereto and is specifically incorporated herein by reference.
Contraction Option. ATTACHED TO AND A PART OF THE LEASE AGREEMENT
Contraction Option. Tenant shall have the option (the “Contraction Option”) to contract the Premises by surrendering in its entirety Wing A of the 2nd floor of the Building or the portion of Wing A of the 1st floor of the Building that is then leased to Tenant (the “Contraction Space”), effective as of the last day of the 7th Lease Year (the “Effective Contraction Date”). If Tenant elects to exercise its Contraction Option, Tenant shall do so by giving Landlord written notice (the “Contraction Notice”) no later than the last day of the 6th Lease Year. If Tenant properly and timely gives the Contraction Notice, then as of the Effective Contraction Date, Tenant shall, at its expense, separately demise the Contraction Space from the remainder of the Premises, including separately metering as necessary, and Tenant shall vacate and yield up the Contraction Space in accordance with the terms and requirements of Section 6.1.9 of this Lease, with its failure to do so being treated as a holdover under Section 6.1.9. From and after the Effective Contraction Date, the Contraction Space shall no longer be included in the Premises and shall be deemed deleted from this Lease.
Contraction Option. A. If Tenant exercises its third Contraction Option in accordance with Section 45 of the Original Lease, in addition to the Contraction Fee, Tenant shall reimburse Landlord for an amount equal to the Concessions and Costs, calculated in accordance with Paragraph 5.C of this Amendment (including the interest thereon), multiplied by a fraction, the numerator of which is the RSF of the Excluded Premises and the denominator of which is the RSF of the Existing Premises, provided that such Contraction Option shall be null and void if Tenant exercises the Expansion Option.
B. Tenant, in its sole discretion, shall have the right to reduce the Premises by one (1) floor between the 21st Floor and the 28th Floor, effective December 31, 2020 (the “Expansion Space Contraction Option”), on the same terms and conditions set forth in Section 45 of the Lease with respect to the Contraction Options, except that the Contraction Fee payable by Tenant to Landlord shall be an amount equal to one (1) year of Expansion Space Rent paid in the calendar year 2020.
Contraction Option. (A) Subject to the provisions of Section (B) below and Paragraph 27 hereof, Tenant shall have a one-time option to terminate the Lease effective as of either June 30, 1999 or June 30, 2001 with regard only to the Contraction Space (hereinafter defined in Paragraph 28), and the term of the Lease, with regard solely to the Contraction Space, shall expire in the same manner and with the same effect as if June 30, 1999 or June 30, 2001, as the case may be, were the date set forth in the Lease for the expiration of the term hereof.
(B) Tenant’s option to terminate the Lease, with regard only to the Contraction Space, as provided in Paragraph 26(A) above, shall be strictly conditioned upon and subject to each of the following:
1. If Tenant desires to terminate the Lease with regard only to the Contraction Space, Landlord must simultaneously receive (i) Contraction Space Floor Plan (hereinafter defined in Paragraph 27), (ii) written notice stating that Tenant desires to exercise this option and (iii) in the case only of a June 39, 1999 termination date, a certified bank check drawn on a New Jersey banking institution payable to the direct order of Landlord for an amount equal to the produce of $8.50 and the rentable square foot area of the Contraction Space as shown in a Contraction Space Floor Plan which has first been approved in writing by Landlord. Both items described in subsection (i) and (ii) of this Paragraph 26.(B)1., in the case of a June 30, 2001 termination date, must be received by Landlord no later than October 31, 2000 but no sooner than August 1, 2000. All three (3) items described in subsection (i), (ii) and (iii) of this Paragraph 26.(B).1, in the case of a June 30, 1999 termination date, must be received by Landlord no later then October 31, 1998 but not sooner than August 1, 1998;
2. At all times prior to Landlord’s receipt of the Contraction Space Floor Plan and Tenant’s notice described in Paragraph 26.(B)1. above, and all times prior to the applicable termination date, either June 30, 1999 or June 30, 2001, Tenant shall not have been in breach of any of the terms and provisions of the Lease. The conditions contained in this Paragraph 26.(B)2. may be waived by Landlord at its sole discretion and may not be used by Tenant as a means to negate the effectiveness of Tenant’s exercise of this option;
3. This option to terminate the Lease with regard only to the Contraction Space shall be deemed personal to the Tenant named on the first and last p...
Contraction Option. By virtue of Tenant’s exercise of its Contraction Option, as of the Effective Date, Addendum Four to the Lease is of no further force or effect.
Contraction Option. (a) Tenant shall have one (1) contraction option with respect to the Premises on the terms set forth below. Provided that Tenant is not in Material Default under this Lease, Tenant shall have the right, exercisable upon not less than twelve (12) months prior written notice to Landlord (the “Contraction Notice”), to reduce the size of the Premises (the “Contraction Right”) by surrendering a portion thereof (the “Surrendered Space”) to Landlord effective as set forth below:
Contraction Option. Notwithstanding anything to the contrary contained in the Lease, as of the Effective Date, Tenant hereby forever waives and relinquishes its rights and options, and shall not be responsible for any obligations, contained in Section 31.25 of the Lease.
Contraction Option. Provided that on the date Tenant exercises the Second Contraction Option (a) this Lease is in full force and effect, (b) no Event of Default has occurred and is continuing, (c) Tenant shall not have exercised the Second Expansion Option, (d) Tenant shall not have delivered an Acceptance Notice during the 42 month period immediately preceding the Second Contraction Date, and (e) Tenant shall be a BNYM Tenant, Tenant shall have the one-time right (the “Second Contraction Option”) to surrender to Landlord as of the Second Contraction Date, the Second Contraction Space, all in accordance with the provisions of this Article 42. “Second Contraction Space” means the highest or lowest full Floor or partial Floor, as determined by Tenant. “Second Contraction Date” means the day immediately preceding the 15th anniversary of the Commencement Date.