Common use of Contraction Option Clause in Contracts

Contraction Option. (a) Tenant shall have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.

Appears in 2 contracts

Samples: Travelers Tower Ii (Covisint Corp), Travelers Tower Ii (Covisint Corp)

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Contraction Option. Tenant shall have the option ("CONTRACTION OPTION"), provided there is then no uncured Event of Default under this Lease, to reduce the size of the Leased Premises by one (1) full floor, which floor shall, at Tenant's option, be either floor 13 or the lowest full floor of the Leased Premises (excluding floors 9 and 10), such reduction to be effective on a date ("Contraction Date") during the sixth Lease Year (between March 1, 2003 and February 28, 2004) provided (a) Tenant delivers to Landlord at least twelve (12) months prior written notice ("CONTRACTION NOTICE") of its election to exercise the Contraction Option and the Contraction Date, and (b) Tenant pays to Landlord at the time of the delivery of its Contraction Notice a reduction fee equal to the Termination Payment that would have been payable as of the Contraction Date under Article IV of this EXHIBIT B as if the Termination Date had been the Contraction Date provided such fee shall be the amount of the Termination Payment allocable to the floor eliminated from the Leased Premises based on its relative number of square feet of Net Rentable Area and such reduction fee shall be discounted back from the Contraction Date to the date of payment using a discount rate of ten percent (10%) per annum. If Tenant fails to timely exercise the Contraction Option (by delivering written notice by February 28, 2003) the Contraction Option shall terminate automatically and Tenant shall have waived forever its right to exercise the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of . If Tenant timely exercises the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) providedbut fails to timely pay the Termination Payment allocable to such floor simultaneously with the delivery of its Contraction Notice, however, that the effectiveness of the exercise of the Contraction Option by Tenant shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising null and void and the Contraction Option (the “Contraction Option Notice”) not later than the conclusion Lease shall remain in full force and effect for all of the fifth (5th) Lease Year Leased Premises. EXHIBIT C AIR CONDITIONING AND HEATING SERVICES Subject to the provisions of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and Section 3.1.1 (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” Lease, Landlord will furnish Building standard air conditioning and heating (as hereinafter definedspecified below) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent between 7:00 a.m. and 6:00 p.m. from Monday through Friday (8%) interest ratewithout request), and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises 8:00 a.m. and the denominator is the rentable area of the Demised Premises 1:00 p.m. on Saturdays (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment upon request made in accordance with the rules and regulations for the Building), excluding Holidays, . Upon request of Tenant, made in accordance with the rules and regulations for the Building, Landlord will furnish air conditioning and heating at other times (that is, at times other than the times specified above) in which event Tenant shall reimburse Landlord for the cost of furnishing such services at the rates set forth on SCHEDULE II attached hereto and incorporated herein. The following dates shall constitute "HOLIDAYS" as said term is used in this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.Lease:

Appears in 1 contract

Samples: Lease Agreement (Bank United Corp)

Contraction Option. In addition to the reduction option set forth in Paragraph 4 of the Twenty-First Amendment to Office Lease to which this Rider No. 5 is attached (a) the “Amendment”), Tenant shall have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises option (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised surrender all or part of a that portion of the Demised Premises located on floor 15 of the Building (each, a “Contraction Space”), up to three successive instances on, at Tenant’s option, either the last day of the 36th, 48th and/or 60th calendar month following the commencement of the First Extension Period (each, a “Contraction Date”), provided that such portion shall be contiguous and of (a) Tenant gives written notice (each, a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) thereof to Landlord not later less than eight (8) months prior to the conclusion applicable Contraction Date, (b) Tenant is not in default under the Lease beyond any applicable notice or cure period at the time of the fifth (5th) Lease Year giving of the initial Termapplicable Contraction Notice or on the applicable Contraction Date, together with a floor plan identifying and (c) the portion of the Demised Premises which shall comprise floor 15 space not then being surrendered by Tenant is in a configuration that is, in the Surrender Premises; and (ii) reasonable judgment of Landlord, leasable to third parties. Additionally, Tenant’s right to contract hereunder is conditioned upon the payment to Landlordin full by Tenant, on or prior to before the applicable Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) a cash amount equal to the sum of the following: (i) all Rent due by Tenant under the Lease respecting the applicable Contraction Space through and including the applicable Contraction Date, and (ii) the unamortized portion costs incurred by Landlord under the terms of the Lease CostsAmendment and applicable to the applicable Contraction Space, as hereinafter definedincluding, calculated using an eight but not limited to, the Reimbursement Allowance, any other tenant improvement allowances, all Rent abatement, and all leasing commissions paid or incurred by Landlord, all amortized at ten percent (810%) interest rateper annum (collectively, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For Tenant shall continue to comply with all the purposes hereof, terms and provisions of the Lease Costs and shall be defined as remain liable for all of Tenant’s obligations which accrue under the sum of: (w) Lease with respect to the Tenant Improvement Allowance, as hereinafter defined, or applicable Contraction Space up to and including the portion thereof so utilized by applicable Contraction Date. This contraction right is personal to Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render and thus this Contraction Option void shall terminate upon assignment of the Lease or subletting of more than 50% of the Premises, except in the case of a Permitted Transfer. Further, after Landlord’s receipt of the applicable Contraction Payment, and so long as Tenant has surrendered the applicable Contraction Space in the condition required under the Lease, neither party shall have any rights, liabilities or obligations under the Lease with respect to the applicable Contraction Space for the period accruing after the applicable Contraction Date, except those which, by the provisions of no effectthe Lease, expressly survive the termination of the Lease. Time Tenant agrees that time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.with respect to this Rider No. 5. 1301 XXXXXXXX/KEY ENERGY SERVICES, INC. 21st Amendment

Appears in 1 contract

Samples: Office Lease (Key Energy Services Inc)

Contraction Option. Provided that (ai) no Event of Default shall exist, (ii) this Lease shall be in full force and effect at all times mentioned below, and (iii) Tenant shall not have exercised an Offer Space Option for any Offer Space for which the applicable Anticipated Inclusion Date is less than two (2) years prior to the Contraction Option Effective Date (as hereinafter defined), Tenant shall have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises right (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance cancel this Lease with Section 2.2 hereof), comprised of a respect to the entire portion of the Demised Premises provided that such portion shall be contiguous and located on the twelfth (12th) floor of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress the Building (the “Surrender PremisesCancelled Floor) ), effective at the end as of the sixth tenth (6th10th) full Lease Year, anniversary of the Rent Commencement Date applicable to the Twelfth Floor Premises (the “Contraction Option Effective Date”), provided that (A) providedTenant shall have given Landlord written notice of Tenant’s election to exercise the Contraction Option (the “Contraction Notice”), however, that the effectiveness effective as of the Contraction Option Effective Date, by no later than eighteen (18) months prior to the Contraction Option Effective Date, and (B) Tenant shall have paid Landlord, at the time of the giving of the Contraction Notice, as Additional Rent, an amount equal to one-half of the Contraction Payment and (C) Tenant shall have paid Landlord the second half of the Contraction Payment on the date that is at least 30 days prior to the Contraction Option Effective Date. The “Contraction Payment” shall mean (a) an amount equal to the unamortized costs (amortized over a 180 month period at an interest rate of 6%) incurred or paid by Landlord in connection with this Lease for (x) the brokerage commissions applicable to the Cancelled Floor, (y) the Work Allowance applicable to the Cancelled Floor, and (z) the so-called “free rent” applicable to the Cancelled Floor (consisting of the Base Rent which would have been payable for the Twelfth Floor Premises if the same were due during the period commencing on the Commencement Date applicable to the Twelfth Floor Premises and ending on the day immediately preceding the Rent Commencement Date applicable to the Twelfth Floor Premises, but excluding any free rent or rent credits due Tenant under Sections 2.04(b), 7.03, 11.05 and 17.03(b) hereof); and (b) an amount equal to six (6) monthly installments of Base Rent, Tenant’s Operating Payment and Tenant’s PILOT Payment as of the month in which the Contraction Option Effective Date will occur. Tenant may request from Landlord, at any time after the eighth (8th) anniversary of the Rent Commencement Date applicable to the Twelfth Floor Premises, Landlord’s calculation of the unamortized costs payable in accordance with clause (a) of this Section 37.01. Time is of the essence with respect to the giving of the Contraction Notice and the making of the Contraction Payment by the dates specified. If Tenant shall fail timely to deliver the Contraction Notice or shall timely deliver the Contraction Notice but shall fail to pay therewith the first half of the Contraction Payment, Tenant shall conclusively be deemed to have waived the Contraction Option. If Tenant timely delivers the Contraction Notice and the first half of the Contraction Payment, but shall fail timely to pay the second half of the Contraction Payment, then at Landlord’s option, exercisable by notice to Tenant, either (x) Tenant’s exercise of the Contraction Option shall be conditioned upon (i) null and void, the lease of the Cancelled Floor to Tenant delivering a Notice to Landlord exercising shall remain in full force and effect after the Contraction Option Effective Date as if the Contraction Notice had never been given and Tenant shall have no further rights under this Article 37 or (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (iiy) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time exercise of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by remain in effect and Tenant, (x) the aggregate dollar value ’s lease of the rental abatement granted Cancelled Floor shall end on the Contraction Option Effective Date in accordance with all of the provisions of this Article 37, and Landlord may exercise any and all rights and remedies available to Tenant Landlord for Tenant’s failure timely to pay the Demised Premises pursuant Contraction Payment as in the case of any failure to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with pay Rent due under this Lease. Failure of Tenant to make Upon the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery timely giving of the Contraction Option Notice and the timely payment of the Contraction Payment, the Term of this Lease with respect to the Cancelled Floor shall expire on the Contraction Option Effective Date with the same effect as if such date were the Expiration Date with respect to such portion of the Premises, and neither party shall have any further rights or obligations under this Lease with respect to the Cancelled Floor, except for such rights and obligations which expressly survive the termination or expiration of the Term of this Lease.

Appears in 1 contract

Samples: Lease (KCG Holdings, Inc.)

Contraction Option. (a) Tenant shall shall, provided this Lease is in full force and effect and, provided further, Tenant is not then in Default under the Lease, have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises right (the First Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice not less than twelve (12) months’ prior written notice to Landlord exercising the (“First Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the First Contraction Payment” Payment (as hereinafter defined), to reduce the size of the Premises by up to one (1) equal floor (“First Contraction Premises”) as of 11:59 A.M. on the last day of the sixtieth (60th) month subsequent to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Commencement Date (the “First Contraction PaymentDate”). For the purposes hereof, Lease Costs The First Contraction Payment shall be paid to Landlord on the First Contraction Date. The First Contraction Payment shall be in an amount equal to the unamortized cost to Landlord, as of the First Contraction Date, of a prorata portion of (i) the Tenant Improvement Allowance (as defined in the Work Letter), including any amounts either applied to Rent or held in escrow for future improvements, both pursuant to the Work Letter, (ii) the Moving Allowance (as defined in the sum of: Work Letter), and (wiii) leasing commissions incurred by Landlord on account of this Lease, items (i)-(iii) being amortized at nine percent (9%) per annum compounded from the date of this Lease to the First Contraction Date; plus an amount equal to four (4) month’s Base Rent and Rent Adjustments applicable to the First Contraction Premises, based upon the amount thereof applicable to the First Contraction Premises for the sixtieth month subsequent to the Commencement Date. Schedule 8 sets forth the calculation on a rentable square foot basis of that portion of the First Contraction Penalty attributable to the amortization of the Tenant Improvement Allowance, Moving Allowance, and lease commissions applicable to the First Contraction Premises. Landlord shall have the right, in its reasonable discretion, to approve the location of the First Contraction Premises if less than a full floor on the basis of marketability, which First Contraction Premises shall in all events be contiguous space. To the extent the First Contraction Premises is less than a full floor, and prior to the First Contraction Date Tenant occupied the entire floor on which the First Contraction Premises is located, the rentable square footage of that portion of the floor which contains the First Contraction Premises shall be recalculated on the basis of a multi-tenant floor (using a loss factor between usable and rentable of 1.1476). In addition to the First Contraction Payment, Tenant shall, to the extent the First Contraction Premises is less than a full floor and Tenant previously occupied such full floor prior to the First Contraction Date, pay to Landlord all reasonable costs incurred by Landlord to create a multi-tenant floor and demise that portion of the Premises remaining thereon from the balance of the floor. If Tenant exercises the First Contraction Option, Rent for the First Contraction Premises shall be paid through and including the First Contraction Date (in addition to Tenant’s payment of the First Contraction Penalty). Tenant shall deliver the First Contraction Premises to Landlord on or before the First Contraction Date in accordance with the terms of this Lease in the same condition as hereinafter definedif the First Contraction Date were the original date set forth in this Lease for expiration of the Term. The First Contraction Option shall automatically terminate and become null and void upon the earlier to occur of (A) the termination of Tenant’s right to possession of the Premises, or the portion thereof so utilized by Tenant, (xB) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure failure of Tenant to make timely exercise the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction PaymentFirst Termination Option.

Appears in 1 contract

Samples: Office Lease (Taylor Capital Group Inc)

Contraction Option. (a) Tenant shall have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises an ongoing right (the “Contraction OptionRight”) to reduce by up to but not exceeding 10,135 an aggregate of 34,605 rentable square feet (measured in accordance with Section 2.2 hereof)the amount of Office Space leased by Tenant pursuant to the H&P Lease at any time after February 1, comprised of a portion 2015. That part of the Demised Premises provided that such portion Office Space eliminated from the H&P Lease as a result of Tenant’s exercise of the Contraction Right shall be contiguous and of a configuration so that is reasonably marketable referred to herein as the “Eliminated Space” and shall have reasonable and code compliant access and egress be determined as set forth on Exhibit “B” attached hereto. Should Tenant desire to exercise this Contraction Right, Tenant shall provide to Landlord six (the “Surrender Premises”6) effective at the end of the sixth (6th) full Lease Year, months prior written notice (the “Contraction Option DateNotice”) providedand shall pay to Landlord an amount equal to the “Contraction Fee,” as defined below, howeverat the time such Eliminated Space is vacated by Tenant. As used herein, that the effectiveness of the exercise of the term “Contraction Option Fee” shall be conditioned upon the sum of (i) Tenant delivering a Notice to Landlord exercising $7.25 per rentable square feet of Eliminated Space (as specified in the Contraction Option Notice and consistent with Exhibit “B”), plus (ii) the amount of Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial TermUnamortized TI,” as defined below, together with a floor plan identifying the attributable to that portion of the Demised Premises Eliminated Space which shall comprise is Expansion Space, plus (iii) the Surrender Premises; and (ii) Tenant’s payment amount of “Unrecouped Commission,” as defined below, attributable to Landlord, on or prior to the Contraction Option Date, that portion of the Eliminated Space. The Contraction PaymentUnamortized TI(shall be an amount, as hereinafter defined) of the date Tenant vacates the Eliminated Space, equal to the sum remaining unamortized balance of the unamortized Tenant Improvement Allowance attributable to that portion of the Lease CostsEliminated Space which is Expansion Space, as hereinafter definedset forth in Section 2(f)(i) below, calculated when amortized, using an eight percent (8%) % per annum interest rate, and multiplied by over the fraction where period from the numerator is the rentable area Term Commencement Date through January 31, 2020. Within thirty (30) days of the Surrender Premises Term Commencement Date, the parties shall prepare, attach and incorporate into this First Amendment a new, mutually satisfactory Exhibit “C” which will show the denominator is amortization schedule for the rentable area Unamortized TI. The “Unrecouped Commission” shall be an amount, as of the Demised Premises (including date Tenant vacates the Surrender Premises)Eliminated Space, plus the amount which is equal to three the remaining unrecouped balance of the leasing commissions payable with respect to the Eliminated Space, when allocated on a straight line basis over the period from the Term Commencement Date through January 31, 2020. Within thirty (330) months days of Basic Rental payable the Term Commencement Date, the parties shall prepare, attach and incorporate into this First Amendment a new, mutually satisfactory Exhibit “D” which will show the amortization schedule for the Surrender Premises at the time Unrecouped Commission. Landlord shall pay all commissions that may be owing as a result of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs execution of this First Amendment and shall be defined as the sum of: (w) the indemnify and hold Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Paymentharmless therefrom.

Appears in 1 contract

Samples: First Amendment to Lease (Helmerich & Payne Inc)

Contraction Option. Tenant shall have a single option to reduce the size of the Premises, which contraction option shall be effective on the "Contraction Date" (as hereinafter defined), subject to all of the following terms and conditions: (a) if Tenant shall have wishes to exercise its contraction option hereunder, Tenant must deliver to Landlord, clear and unconditional written notice of Tenant's election to reduce the one-time right, at its sole option, to surrender to Landlord a portion size of the Demised Premises (the "Contraction Option”Notice"), at any time prior to the seventh (7th) up anniversary of the Rent Commencement Date; (b) upon Tenant's timely exercise of its contraction option, the effective date for the reduction in size of the Premises (the "Contraction Date"), shall be the eighth (8th) anniversary of the Rent Commencement Date; (c) in consideration of said Premises reduction, Tenant shall pay Landlord $100,000.00 (the "Contraction Fee"), said payment to but not exceeding 10,135 rentable be in good funds, subject to collection, by certified check or bank check payable to the order of Landlord and delivered to Landlord on or before the date Landlord receives Tenant's Contraction Notice, time being of the essence; (d) Tenant's Contraction Notice hereunder, if exercised, shall apply solely to (and reduce the size of the Premises solely by) that certain space constituting 10,296 square feet of rentable area (measured in accordance with Section 2.2 hereofthe "Contraction Space"), comprised of said Contraction Space being outlined on Schedule 5 attached hereto and made a portion of the Demised Premises provided that part hereof; (e) from and after Tenant's exercise such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”by Tenant's timely delivery of its Contraction Notice and Contraction Fee as required herein, Tenant shall continue to timely perform all of its obligations under this Lease (including, without limitation, its Rental obligations); (f) provided, however, that the effectiveness of the exercise of Tenant shall vacate and surrender the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising Space in the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) condition required under this Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or before thirty (30) days prior to the Contraction Option Date, time being of the “Contraction Payment” essence, and Tenant shall be deemed to be "holding over" therein if it does not do so; (as hereinafter definedg) equal to from and after the sum Cancellation Date and Tenant's surrender of the unamortized portion of Contraction Space, the Lease CostsFixed Rent, as hereinafter definedTenant's Tax Share, calculated using an eight percent (8%) interest rateTenant's Operating Share, the Electricity Additional Rent, the Cafeteria Additional Rent, Tenant's parking spaces, Tenant's private dining room rights, and multiplied by the fraction where the numerator is Tenant's signage rights shall be proportionately reduced, on a per rentable square foot basis, to reflect the rentable area of the Surrender Premises remaining after such contraction; and (h) notwithstanding anything to the denominator is contrary contained in this Lease, Tenant's contraction option hereunder shall be subject to the rentable area following additional conditions: (i) as of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time date of the Contraction Option Date Notice (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery Landlord's receipt of the Contraction Option Notice Fee), no Event of Default shall have occurred and be continuing; (ii) if Tenant fails to properly and timely exercise its contraction option hereunder, said option shall be null and void; (iii) Tenant's contraction option herein shall be personal to Initial Tenant only, and shall not be transferred or assigned to any other parties; (iv) such contraction shall not release or discharge any of Tenant's obligations under this Lease accruing up to and including the Contraction PaymentDate; (v) such contraction option shall lapse and have no force or effect after the seventh (7th) anniversary of the Rent Commencement Date if not theretofore duly exercised as required herein; (vi) such contraction option shall apply only during the Original Term and not during any Renewal Term; and (vii) in the event there is an Event of Default that occurs and is continuing up to and including the Contraction Date, Landlord, at Landlord's option, may negate Tenant's exercise of such contraction option by written notice to Tenant, in which case this Lease shall continue in full force and effect from the date of Landlord's notice with such contraction option being null and void.

Appears in 1 contract

Samples: Agreement of Lease (National Patent Development Corp)

Contraction Option. Subject to the terms and conditions of this Section 36, in the event of a Material Change, which for purposes of this Section 36 only shall also include the outsourcing of functions performed from the Leased Premises such that the number of people working from the Leased Premises is one hundred thirty (a130) or less for two (2) consecutive calendar quarters, Tenant shall have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises option (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet eliminate from the Leased Premises one (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”1) effective at the end of full Floor comprising either the sixth (6th) full Lease YearFloor or the seventh (7th) Floor (the “Contraction Space”), effective as of April 30, 2012 (the “Contraction Option Effective Date”). In addition, as of the Contraction Option Effective Date, the number of Parking Spaces provided to Tenant under Section 29 shall reduce to twenty (20). The Contraction Option shall be subject to and conditioned upon Tenant giving written notice (the “Contraction Notice”) provided, however, that to Landlord of such election no later than nine (9) months following the effectiveness Lease Commencement Date. In the event of the exercise of the Contraction Option Option, Tenant shall pay the Contraction Fee (as defined below) to Landlord. Landlord shall notify Tenant of the amount of the Contraction Fee within thirty (30) days of Landlord’s receipt of the Contraction Notice and the Contraction Fee shall be conditioned upon due and payable (i) one-half within fifteen (15) days after Landlord delivers to Tenant delivering a Notice to Landlord exercising statement of the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial TermFee, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) one-half by the Contraction Option Effective Date. The failure of Tenant to make any payment of the Contraction Fee as and when due shall render Tenant’s payment to exercise of the Contraction Option void. The “Contraction Fee” shall equal the unamortized amount of Landlord, on or prior ’s transaction costs allocable to the Contraction Space, including, without limitation, brokerage and leasing commissions, and Landlord’s reasonable attorneys’ fees and expenses, as of the Contraction Option Effective Date, as amortized over a ten (10) year period, at an interest rate of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%). Any disputes with regard to the Contraction Fee shall not delay the due dates therefore but shall ultimately be resolved, upon written request of either party, by arbitration under Section 28 hereof. In the event Tenant prevails in such arbitration, Landlord shall pay to Tenant any overpayment of the Contraction Fee within thirty (30) interest rate, and multiplied days after the determination by the fraction where arbiter. If Tenant shall effectively exercise the numerator is Contraction Option as set forth in this Section 36, Tenant shall surrender to Landlord the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time Contraction Space as of the Contraction Option Effective Date (in the “Contraction Payment”). For condition required under this Lease for the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value surrender of the rental abatement granted to Leased Premises and Tenant for the Demised Premises pursuant to Section 1(g) hereofshall, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of on or before the Contraction Option Notice Effective Date, at Tenant’s sole cost and expense, remove the internal staircase between the sixth (6th) and seventh (7th) Floors and repair any and all damage caused thereby, all to the reasonable satisfaction of Landlord. Tenant’s failure to timely surrender the Contraction PaymentSpace to Landlord upon the Contraction Option Effective Date shall subject Tenant to the holdover provisions of Section 27 with respect to such space.

Appears in 1 contract

Samples: Lease Agreement (Fidelity & Guaranty Life)

Contraction Option. (a) Tenant shall have several contraction options with respect to the one-time Premises on the terms set forth below. Provided that Tenant is not in Material Default under this Lease, Tenant shall have the right, at its sole optionexercisable in each instance upon not less than twelve (12) months prior written notice to Landlord (the “Contraction Notice”), to surrender to Landlord a portion reduce the size of the Demised Premises (the “Contraction OptionRight(s)”) by surrendering portions thereof (the “Surrendered Space”) to Landlord effective as set forth below: Contraction Space Allowed Effective Date of Contraction 180,000 (or less) RSF December 11, 2001 180,000 (or less) RSF December 11, 2003 130,000 (or less) RSF December 11, 2005 In addition to the foregoing Contraction Rights, in the event Tenant has exercised at least two (2) of the foregoing three (3) Contraction Rights, Tenant shall have one (1) additional Contraction Right which shall be, if exercised, effective on December 11, 2007, upon the terms set forth in this Section 4, provided however that (i) the maximum amount of space by which Tenant may contract the Premises with this additional Contraction Right shall be 120,000 Rentable Square Feet and (ii) the amount of space by which Tenant contracts the Premises pursuant to this additional Contraction right shall in no event cause the Premises to contain less than 300,000 Rentable Square Feet. The exercise by Tenant of the foregoing Contraction Rights shall be subject to the following conditions: (i) the Premises may only be contracted by up to but the number of Rentable Square Feet set forth above in the specified year and, to the extent Tenant does not exceeding 10,135 rentable square feet exercise its Contraction Rights in any of the above-specified years with respect to the permitted amount of space, Tenant will have waived its right with respect to the balance of such space for that year and in no event may the amount of unexercised contraction space be carried over to the next contraction option, (measured ii) the space in accordance with Section 2.2 hereof), comprised of a the office tower portion of the Demised Building which may be deleted from the Premises provided that such portion shall be contiguous and of as a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness result of the exercise of Tenant’s contraction options shall (A) be deleted in full floor increments (except that Tenant may delete any amount of space from the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion highest floor of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the remaining office tower portion of the Demised Premises which shall comprise so long as Tenant retains at least approximately one-half of the Surrender Premises; Rentable Square Feet on such floor, and Tenant may delete all of the 79th Floor Premises and all of the 25th and 26th floors other than the PBX Space), (iiB) Tenant’s payment to Landlord, be located on or contiguous floors of the Premises prior to the Contraction Option Datecontraction (not including the 79th Floor Premises, of or any space that has been recaptured by Landlord pursuant to Section 13(c)) so that the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized remaining office tower portion of the Lease CostsPremises, as hereinafter definedafter giving effect to such contraction, calculated using an eight percent shall be located on contiguous floors (8%) interest rateexcept the 79th Floor Premises, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises 29th through 31st floors and the denominator is PBX Space on the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized 25th and 26th floors and not considering any space recaptured by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises Landlord pursuant to Section 1(g13(b)), and (C) hereof, plus (z) constitute the aggregate dollar amount highest floors contained in the office tower portion of all commissions paid the Premises prior to the Brokers contraction (not including the 79th Floor Premises); provided, however that in connection with this Lease. Failure of no event shall Tenant be required to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is delete floors 29-31 as part of the essence of delivery contraction nor shall Tenant be required to delete the PBX Space on the 25th and 26th floors. The Contraction Notice shall specify the size, location and configuration of the Contraction Option Notice Surrendered Space. The size of the Surrendered Space shall be determined, subject to the limitations set forth above, in Tenant’s sole discretion. The Surrendered Space shall be in a legally leasable configuration, provided that to the extent the Tenant elects to contract the Premises on only a portion of a floor, the space contracted from the Premises shall have reasonable access to the elevator lobbies and the Contraction Paymentbathrooms on that floor.

Appears in 1 contract

Samples: Office Lease (Wells Real Estate Investment Trust Inc)

Contraction Option. Borrower shall have the right to decrease the Commitment as described below; provided such decrease of the Commitment is a result of either Borrower’s (i) sale of a Mortgaged Property to a third party as reasonably determined by Lender; or (ii) refinancing of the Mortgaged Property in connection with a Permanent Loan pursuant to the provisions of Section 2.15. Borrower shall exercise such right by (i) delivering to Lender (a) Tenant sixty (60) days prior written notice of its intent to decrease the Commitment, which notice shall have be accompanied by (b) the one-time rightPartial Termination Fee as set forth in Section 2.10, at its sole option(c) all reasonable costs and expenses that Lender and Servicer incur in connection with such decrease, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to including, but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof)limited to, comprised of a portion of the Demised Premises provided that such portion shall be contiguous Attorneys’ Fees and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; Costs and (ii) Tenant’s payment by executing and where appropriate acknowledging (a) amendments to Landlordthis Agreement, on or prior to the Contraction Option Date, Revolving Credit Note and any of the “Contraction Payment” other Loan Documents, in form and substance reasonably acceptable to Lender, as Lender deems reasonably necessary to evidence the decrease in the Commitment, and (as hereinafter definedb) any other amendments or agreements deemed reasonably necessary by Lender. All amendments referred to in clause (ii)(a) of the preceding sentence shall be prepared by Lender’s counsel and delivered to Borrower within a reasonable time of Borrower’s notice to Lender under clause (i) of the preceding sentence. Upon Borrower’s compliance with all of the provisions of items (i) and (ii) above, the Commitment shall be decreased by an amount equal to the sum Allocated Loan Amount of the unamortized portion released Mortgaged Property in the event of a third party sale, or decreased by the amount of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by Permanent Loan in the fraction where event of a refinance pursuant to the numerator is provisions of Section 2.15. Once Borrower has elected to decrease the rentable area Commitment any unexercised expansion of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs Commitment as set forth in Section 2.1.2 shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option deemed null and void and of no further force and effect. Time is If Borrower elects not to decrease the Commitment, then in the event of an early termination pursuant to Section 2.13, Lender shall calculate the essence of delivery of the Contraction Option Notice and the Contraction PaymentEarly Termination Fee as set forth in Section 2.13.4.

Appears in 1 contract

Samples: Credit Agreement (Steadfast Apartment REIT, Inc.)

Contraction Option. (a) Tenant shall shall, provided that all the Expansion Conditions are then satisfied, have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises option (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof)exclude from the Premises an area of one full floor of Premises designated by Tenant as hereinafter provided, comprised which contraction will be effective as of a portion of the Demised Premises provided that such portion shall be contiguous February 28, 2000, 2005, and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, 2010 (the “Contraction Option Date”). Space designated by Tenant to be excluded from the Premises (the “Contraction Space”) provided, however, that must be at a non-contiguous floor or the effectiveness upper [or lower] end of the exercise of the largest contiguous 2 block pace then leased by Tenant. The Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion exercised, of the fifth (5th) Lease Year of the initial Termessence, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment by notice given by tenant to Landlord, on or before twelve (12) months prior to any such Contraction Date identifying the Contraction Space (the “Contraction Notice”). Each time Tenant fails to timely deliver its Contraction Notice, Tenant will be deemed to have waived such Contraction Option for the applicable Lease year. If Tenant timely delivers its Contraction Notice, then as of the relevant Contraction Date: (1) Tenant shall vacate the Contraction Space and surrender possession thereof to Landlord in accordance with the requirements of this Lease; (ii) the Rentable Area of the Premises shall be reduced by the Rentable Area of the Contraction Space so surrendered; and (iii) Tenant’s Proportionate Share shall be reduced by a percentage derived by dividing the Rentable Area of the Contraction Space surrendered by the I Area of the Office Portion of the Building. If Tenant fails to completely vacate the Contraction Space and surrender possession thereof to Landlord in accordance with Paragraph 17 of the Lease on or before the Contraction Date, such failure shall be treated as a holding over by Tenant, and Landlord shall be entitled to all of its remedies thereof pursuant to Paragraph 18 of this Lease. Notwithstanding any such vacation and surrender, Tenant shall remain liable for the payment to Landlord of’ all rent and other sums due or accrued, and for the performance and keeping of all the covenants, agreements and obligations under this Lease to be performed, paid and kept by Tenant with respect to the Contraction Space prior to the Contraction Option Date. Promptly after Tenant’s exercise of its Contraction Option, Landlord shall prepare an amendment to the Lease in a form reasonably satisfactory to Landlord and Tenant to reflect the reduction to the size of the “Contraction Payment” (as hereinafter defined) equal Premises and Tenant’s Proportionate Share and any other appropriate terms, due to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time return of the Contraction Option Date (the “Contraction Payment”)Space. For the purposes hereof, Lease Costs Tenant shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid execute and return such an amendment to the Brokers in connection with this Lease. Failure of Tenant Lease within fifteen (15) days after its submission to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction PaymentTenant.

Appears in 1 contract

Samples: Lease (Wells Real Estate Investment Trust Inc)

Contraction Option. (a) If Tenant does not exercise the Swap Option under Article 10 above, then Tenant shall have the one-time right, at its sole option, option (the “500 Contraction Option”) to surrender to Landlord a portion exclude the entire 18th Floor Space from the Leased Premises under the 500 Boylston Lease effective as of the Demised Premises end of day on February 28, 2007 (the “Contraction Date”). If Tenant wishes to exercise the 500 Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised Tenant shall deliver notice of a portion its exercise of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress 500 Contraction Option to the 500 Xxxxxxxx Xxxxxxxx xx or before December 31, 2005 (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “500 Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Exercise Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence in the timely exercise of delivery the 500 Contraction Option. If Tenant fails to timely exercise the 500 Contraction Option by such date strictly in accordance with this Section 12.02, then Tenant shall be deemed to have irrevocably waived the 500 Contraction Option and this Section 12.02 shall have no further force or effect. Tenant’s exercise of the 500 Contraction Option shall be irrevocable and unconditional. If Tenant provides an exercise notice that purports to condition the exercise of the 500 Contraction Option, to change the terms of the 500 Contraction Option as set forth herein, or to exercise the 500 Contraction Option only in part, such exercise notice shall be invalid and without force or effect. If Tenant shall timely and validly deliver the 500 Contraction Exercise Notice in accordance with this Section 12.02, effective as of the Contraction Option Notice Date the entire 18th Floor Space shall cease to be part of the Leased Premises under the 500 Boylston Lease for all purposes, and the floor sheets for the 18th Floor Space shall be deemed deleted from Exhibit A to the 500 Boylston Lease. Such exclusion of the 18th Floor Space from the Leased Premises shall be self-operative without the need for further action by the parties, but in confirmation thereof the parties shall execute and deliver an amendment to the Lease confirming the exercise of the 500 Contraction PaymentOption and the adjustments to the Leased Premises provided for herein. If the 500 Contraction Option is exercised, then Tenant shall surrender and vacate the 18th Floor Space to Landlord on the Contraction Date in the condition required under Section 4.06 of the Lease. Any failure by Tenant to timely surrender and vacate the 18th Floor Space to Landlord on or before the Contraction Date shall constitute a holdover as to which the provisions of Section 8.01 of the Lease shall apply as though such Section referred solely to the 18th Floor Space.

Appears in 1 contract

Samples: Houghton Mifflin Co

Contraction Option. Tenant shall have the option ("Contraction Option"), provided there is then no uncured Event of Default under this Lease, to reduce the size of the Leased Premises by one (1) full floor, which floor shall, at Tenant's option, be either floor 13 or the lowest full floor of the Leased Premises (excluding floors 9 and 10), such reduction to be effective on a date ("Contraction Date") during the sixth Lease Year (between March 1, 2003 and February 28, 2004) provided (a) Tenant delivers to Landlord at least twelve (12) months prior written notice ("Contraction Notice") of its election to exercise the Contraction Option and the Contraction Date, and (b) Tenant pays to Landlord at the time of the delivery of its Contraction Notice a reduction fee equal to the Termination Payment that would have been payable as of the Contraction Date under Article IV of this Exhibit B as if the Termination Date had been the Contraction Date provided such fee shall be the amount of the Termination Payment allocable to the floor eliminated from the Leased Premises based on its relative number of square feet of Net Rentable Area and such reduction fee shall be discounted back from the Contraction Date to the date of payment using a discount rate of ten percent (10%) per annum. If Tenant fails to timely exercise the Contraction Option (by delivering written notice by February 28, 2003) the Contraction Option shall terminate automatically and Tenant shall have waived forever its right to exercise the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of . If Tenant timely exercises the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) providedbut fails to timely pay the Termination Payment allocable to such floor simultaneously with the delivery of its Contraction Notice, however, that the effectiveness of the exercise of the Contraction Option by Tenant shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising null and void and the Contraction Option (the “Contraction Option Notice”) not later than the conclusion Lease shall remain in full force and effect for all of the fifth (5th) Lease Year Leased Premises. EXHIBIT C AIR CONDITIONING AND HEATING SERVICES Subject to the provisions of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and Section 3.1.1 (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” Lease, Landlord will furnish Building standard air conditioning and heating (as hereinafter definedspecified below) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent between 7:00 a.m. and 6:00 p.m. from Monday through Friday (8%) interest ratewithout request), and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises 8:00 a.m. and the denominator is the rentable area of the Demised Premises 1:00 p.m. on Saturdays (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment upon request made in accordance with the rules and regulations for the Building), excluding Holidays, Upon request of Tenant, made in accordance with the rules and regulations for the Building, Landlord will furnish air conditioning and heating at other times (that is, at times other than the times specified above) in which event Tenant shall reimburse Landlord for the cost of furnishing such services at the rates set forth on Schedule II attached hereto and incorporated herein. The following dates shall constitute "Holidays" as said term is used in this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.Lease:

Appears in 1 contract

Samples: Lease Agreement (FSP Phoenix Tower Corp)

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Contraction Option. (a) ATTACHED TO AND A PART OF THE LEASE AGREEMENT BY AND BETWEEN GK TRIANGLE CORPORATE PARK III, LLC, and HEALTH NET HEALTH PLAN OF OREGON, INC. Provided no event of default shall then exist under the Lease and no condition shall then exist which with the passage of time or giving of notice, or both, would constitute an event of default under the Lease, Tenant shall have the one-right at any time righton or after the date this Lease is executed, at its sole optionbut prior to December 31, 2009, to surrender to send Landlord a portion of the Demised Premises irrevocable written notice (the “Contraction OptionNotice”) up that Tenant has elected to but not exceeding 10,135 rentable terminate this Lease only as to the 11,237 square feet (measured in accordance with Section 2.2 hereof), comprised of a foot portion of the Demised third floor Premises provided that such portion shall be contiguous and shown on Schedule 1 of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, this Addendum Four (the “Contraction Option Area), effective on a date to be specified in the Contraction Notice. Tenant shall give Landlord at least one hundred twenty (120) days prior written notice to Landlord of such contraction date (the “Contraction Date”) provided). If Tenant elects to exercise its herein provided contraction option, however, that the effectiveness of the such exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising surrendering the Contraction Option (Area in the “Contraction Option Notice”) not later than the conclusion condition required for surrender of the fifth (5thPremises by Section 5(c) of this Lease Year of on or before the initial TermContraction Date, together with and constructing a floor plan identifying demising wall between the Contraction Area and the remaining 12,898 square foot portion of the Demised third floor Premises which shall comprise (as further described in the Surrender Premises; and (iiExhibit B Work Letter) Tenant’s payment to Landlord, on or before the Contraction Date, it being stipulated that reconfiguring the third floor to be a multi-tenant floor will result in Tenant retaining such 12, 898 square foot portion). After the Contraction Date, Landlord and Tenant shall be relieved of all obligations accruing under this Lease as to the Contraction Area only, but not any obligations accruing under the Lease prior to the Contraction Option Date, of and not any obligations accruing under the “Contraction Payment” (Lease as hereinafter defined) equal to the sum of the unamortized that portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area Premises exclusive of the Surrender Contraction Area (as to which remaining portion this Lease shall remain in full force and effect). If Tenant elects to exercise its contraction option, Landlord and Tenant shall enter into a commercial reasonable form of amendment to the Lease reflecting revisions to the Premises (i.e., replacing Exhibit A-1 to the Lease), Basic Annual Rent schedule, Tenant’s Proportionate Share of Operating Costs and Landlord’s Construction Allowance. If Tenant does not timely deliver the Contraction Notice to Landlord, or timely surrender, in the condition required by this Addendum, the Contraction Area, then this Contraction Option shall become null and void and the denominator is Lease shall continue in full force and effect as to the rentable area of the Demised entire Premises (including the Surrender PremisesContraction Area). Upon the delivery of a Contraction Notice to Landlord, plus notwithstanding Section 5 of the amount which is equal Basic Lease Provisions to three (3) months the contrary, Tenant shall receive an abatement of Basic Rental payable Annual Rent for the Surrender Premises at Contraction Area only for a period of ninety (90) days following the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence date of delivery of the Contraction Option Notice and the Contraction PaymentNotice.

Appears in 1 contract

Samples: The Lease Agreement (Health Net Inc)

Contraction Option. Subject to and in accordance with the terms and provisions set forth in this Article 9, and provided that American Express Travel Related Services Company, Inc. (aor an “affiliate” thereof, as defined in Article 20 of the Lease) is the Tenant under this Lease, Tenant shall have the one-time right, at its sole option, right to surrender terminate this Lease with respect to Landlord a portion of the Demised Premises and thereby contract the Demised Premises by not less than 5,000 and not more than 10,000 rentable square feet (hereafter, the “Contraction Premises”), said contraction to be effective, at Tenant’s sole option, as of February 28, 2011 (which would be the first Contraction Option) or as of February 28, 2013 (which would be the second Contraction Option) (either being herein referenced to as a “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that . Either such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice effective by providing Landlord with written notice of Tenant’s election to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of so contract the Demised Premises which shall comprise the Surrender Premises; and at least twelve (ii12) Tenant’s payment to Landlord, on or months prior to the Contraction Option Date, applicable proposed date of contraction and by paying to Landlord the “Early Contraction Payment” (as hereinafter defined) equal within thirty days after agreement by the parties with respect to the sum size and location of the unamortized portion of Contraction Premises. Tenant may not exercise the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of option to contract the Demised Premises (including as provided herein if any event of default by Tenant under the Surrender Premises), plus Lease has occurred and is continuing beyond the applicable period for notice and cure. The Early Contraction Payment under this Paragraph 9 shall be in the amount which is equal to three (3i) months the aggregate of Basic the unamortized balances, as of the effective date of the proposed contraction, of the Refurbishment and Build Out Allowance amount and brokerage commission amounts incurred by Landlord with respect to the extension of the Lease Term under this Second Amendment which are proportionately attributable to the Contraction Premises (i.e. allocated on a square foot basis over the entire Demised Premises), amortized on a straight-line basis over the period from the Effective Date through February 28, 2016, assuming that such amounts bear interest at the rate of 10.0% per annum, with the unamortized balance calculated with respect to the period following the effective date of contraction, plus (ii) an amount equal to (a) four (4) times the Base Rental payable proportionately attributable to the Contraction Premises which is due for the Surrender Premises at month of February, 2011, if the time of the first Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized is exercised by Tenant, or (xb) two (2) times the aggregate dollar value of Base Rental proportionately attributable to the rental abatement granted to Tenant Contraction Premises which is due for the Demised Premises pursuant to Section 1(g) hereofmonth of February, plus (z) 2013, if the aggregate dollar amount second Contraction Option is exercised by Tenant. Upon the giving of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment a valid contraction notice in accordance with this paragraph shall render this Contraction Option void Article 9 and of no effect. Time is the timely payment to Landlord of the essence Early Contraction Payment, the Contraction Premises shall cease to be leased by Tenant as of delivery the effective date of contraction as if the same were the date herein originally fixed for the expiration of the Lease Term with respect thereto, and Tenant and Landlord shall remain liable for all of their respective obligations and undertakings with respect to the Contraction Premises through such early contraction date as though such early contraction date were the natural expiration date of the Lease Term. The exact size and location of the Contraction Option Notice Premises shall be initially proposed by Tenant in Tenant’s written notice of its election to contract the Demised Premises and shall be subject to Landlord’s prior approval, not to be unreasonably withheld, conditioned or delayed. In determining the acceptability of the size and location of the proposed Contraction Payment.Premises, the following standards shall apply:

Appears in 1 contract

Samples: Lease Agreement (Wells Real Estate Fund Vi L P)

Contraction Option. (a) Notwithstanding anything in this Lease to the contrary, Tenant shall have the one-time right, exercisable at its Tenant’s sole option, to surrender to Landlord a portion terminate this Lease, effective as of the Demised last day of the seventh (7th) Lease Year or the last day of the ninth (9th) Lease Year, with respect to up to two (2) floors in the Premises (such space with respect to which Tenant elects to terminate this Lease is hereinafter referred to as the “Contraction Space”). Tenant may exercise such right by delivering notice thereof (the “Contraction OptionNotice”) up to but Landlord, which Contraction Notice shall set forth a date of termination (the “Contraction Date”) which is specified to be the last day the seventh (7th) Lease Year or the last day of the ninth (9th) Lease Year, and which notice shall be given, if at all, not exceeding 10,135 rentable square feet later than sixteen (measured 16) months prior to the Contraction Date specified in accordance the Contraction Notice. The Contraction Space shall (i) be located on the upper-most floors of the Building on which the Premises is located or on the lower-most floors of the Building on which the Premises is located, (ii) be contiguous space and (iii) with Section 2.2 hereof), comprised of a respect to any portion of the Demised Contraction Space located on a floor upon which Tenant shall retain space as part of the Premises provided that following the Contraction Date, the portion of the Premises which is not part of the Contraction Space located on such portion floor shall be contiguous and of in a configuration so location that is reasonably marketable and shall have reasonable and code compliant access and egress (following the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise deduction of the Contraction Option Space. In the event that Tenant exercises its contraction option under this Section 50, (A) this Lease shall continue in full force and effect with respect to the Contraction Space until the Contraction Date, whereupon Tenant shall surrender possession of the Contraction Space in accordance with the provisions of this Lease, (B) this Lease shall terminate with respect to only the Contraction Space as if the Contraction Date were, as to the Contraction Space, the Lease Expiration Date set forth herein, and (C) all Rent pursuant to Section 5 hereof with respect to the Contraction Space shall be conditioned upon (i) prorated as of the Contraction Date, and neither party shall have any obligations hereunder accruing after the Contraction Date with respect to the Contraction Space. In the event Tenant delivering a Notice exercises its contraction option under this Section 50, then Tenant shall pay to Landlord exercising on the Contraction Option date which occurs sixty (the “Contraction Option Notice”60) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or days prior to the Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.following amounts:

Appears in 1 contract

Samples: Deed of Lease (Watson Wyatt & Co Holdings)

Contraction Option. (a) If Tenant does not exercise the Swap Option under Paragraph 2 above, then if and only if Tenant shall have timely exercised the one-time right, at its sole option, contraction option under Section 12.02 of the 500 Boylston Lease to surrender to Landlord a portion the 18th Floor of the Demised 000 Xxxxxxxx Xxxxxxxx, Xxxxxx shall have the option (the “222 Contraction Option”) to exclude the entire 11th Floor from the Leased Premises under the 222 Berkeley Lease effective as of the end of day on February 28, 2007 (the “Contraction Date”). If Tenant wishes to exercise the 222 Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised Tenant shall deliver notice of a portion its exercise of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress 222 Contraction Option to the 222 Berkeley Landlord on or before December 31, 2005 (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “222 Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Exercise Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence in the timely exercise of delivery the 222 Contraction Option. If Tenant fails to timely exercise the 222 Contraction Option by such date strictly in accordance with this Paragraph 4, then Tenant shall be deemed to have irrevocably waived the 222 Contraction Option and this Paragraph 4 shall have no further force or effect. Tenant’s exercise of the 222 Contraction Option shall be irrevocable and unconditional. If Tenant provides an exercise notice that purports to condition the exercise of the 222 Contraction Option, to change the terms of the 222 Contraction Option as set forth herein, or to exercise the 222 Contraction Option only in part, such exercise notice shall be invalid and without force or effect. If Tenant shall timely and validly deliver the 222 Contraction Exercise Notice in accordance with this Paragraph 4, effective as of the Contraction Option Notice Date the entire 11th Floor shall cease to be part of the Leased Premises under the 222 Berkeley Lease for all purposes, and the floor sheets for the 11th Floor shall be deemed deleted from Exhibit A to the 222 Berkeley Lease. Such exclusion of the 11th Floor from the Leased Premises shall be self-operative without the need for further action by the parties, but in confirmation thereof the parties shall execute and deliver an amendment to the Lease confirming the exercise of the 222 Contraction PaymentOption and the adjustments to the Leased Premises provided for herein. Such amendment shall contain an updated Exhibit E to the Lease, reflecting the foregoing change in the Leased Premises. If the 222 Contraction Option is exercised, then Tenant shall surrender and vacate the 11th Floor to Landlord on the Contraction Date in the condition required under Section 4.06 of the Lease. Any failure by Tenant to timely surrender and vacate the 11th Floor to Landlord on or before the Contraction Date shall constitute a holdover as to which the provisions of Section 8.01 of the Lease shall apply as though such Section referred solely to the 11th Floor.

Appears in 1 contract

Samples: Houghton Mifflin Co

Contraction Option. (a) Tenant shall have the one-time rightProvided, at its sole option, to surrender to Landlord a portion as of the Demised date on which the Contract Notice is delivered: (i) there is no Event of Default and (ii) this Lease is in full force and effect, Tenant has the right to terminate this Lease with respect to the Contraction Premises effective at 11:59 p.m. on the Contraction Date, in accordance with and subject to each of the following terms and conditions (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured ). The “Contraction Date” means the date designated as such by Tenant in accordance with Section 2.2 hereof)its Contraction Notice, comprised provided such date is either the last day of the 36th, 72nd, or 108th full calendar month after the Fixed Rent Start Date. The “Contraction Premises” means, as designated by Tenant in its Contraction Notice, either all of Suite 1100 or a portion of Suite 1100 mutually agreed to by Landlord and Tenant. Notwithstanding the Demised Premises provided that such portion foregoing, if the Contraction Notice is silent as to the designation of the Contraction Premises, then Tenant shall be contiguous and deemed to have designated all of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (Suite 1100 to be the “Surrender Contraction Premises”) effective at . If Tenant desires to exercise the end Contraction Option, Tenant must give to Landlord irrevocable written notice of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the Tenant’s exercise of the Contraction Option shall (“Contraction Notice”), and pay Landlord the Contraction Payment (as defined below) as and when required below. The Contraction Notice and the Contraction Payment must be conditioned upon received by Landlord no later than the date that is 12 months prior to the Contraction Date (“Contraction Notice/Payment Due Date”), failing which the Contraction Option is deemed waived (provided Landlord reserves the right to waive in writing the requirement that Tenant fully and/or timely pay the Contraction Payment). The “Contraction Payment” means the sum of the unamortized (amortized on a straight-line basis with interest at 7% per annum) amount as of the Contraction Date of the following with respect to the Contraction Premises in connection with this Lease and any amendment to this Lease: (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premisesbrokerage commissions paid by Landlord; and (ii) any and all allowances paid to Tenant, including without limitation the Improvement Allowance (as defined in Exhibit C). Tenant’s payment of the Contraction Payment is a condition precedent to Landlord, on or prior the termination of this Lease with respect to the Contraction Option Premises on the Contraction Date, and such obligation survives the Expiration Date. Tenant acknowledges and agrees that the Contraction Payment is not a penalty and is fair and reasonable compensation to Landlord for the loss of the “expected rentals from Tenant. The Contraction Payment” (as hereinafter defined) equal Payment is payable only by wire transfer or cashier’s check. Notwithstanding anything to the sum of the unamortized portion of the Lease Costscontrary herein, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of if Tenant exercises the Contraction Option Date (and the internal staircase between Suite 1000 and Suite 1100 is located within the Contraction Payment”). For the purposes hereofPremises, Lease Costs then Tenant shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized solely responsible for removing such staircase at Tenant’s sole cost and expense by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make no later than the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effectDate. Time is of the essence with respect to the dates and deadlines set forth herein. If Tenant timely and properly exercises the Contraction Option in accordance with this paragraph, this Lease and the Term shall come to an end on the Contraction Date with respect to the Contraction Premises only, with the same force and effect as if the Term with respect to the Contraction Premises were fixed to expire on such date, the Expiration Date with respect to the Contraction Premises shall be the Contraction Date, and the terms and provisions of delivery Section 18 shall apply to the Contraction Premises. Upon Tenant’s request after the Commencement Date, Landlord shall notify Tenant of its calculation of the Contraction Option Payment. If Tenant requests in writing Landlord’s calculation of the Contraction Payment at least 30 days prior to the applicable Contraction Notice/Payment Due Date, and Landlord fails to provide the calculation of the Contraction Payment on or prior to the date which is five (5) business days prior to applicable Contraction Notice/Payment Due Date, then Tenant shall have until the date that is five (5) business days after Landlord provides the calculation of the Contraction Payment to deliver the Contraction Notice and the Contraction PaymentPayment to Landlord.

Appears in 1 contract

Samples: Lease (Pennsylvania Real Estate Investment Trust)

Contraction Option. (a) During the Third Extension Term Tenant shall have the one-one time right, at its sole option, to surrender to Landlord a portion of the Demised Premises right (the “Contraction Option”) up to but not exceeding 10,135 rentable contract the Premises by the approximately 29,394 square feet (measured in accordance with Section 2.2 hereof), comprised of a Rentable Area portion thereof located on the 4th floor of the Demised Premises provided that such portion shall be contiguous Tower (identified in the Fourth Amendment as the Fourth Floor Expansion Space and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (herein as the “Surrender Premises”Contraction Space” and depicted on Exhibit D attached hereto) effective at the end of the sixth (6th) full Lease Yearon November 1, 2023 (the “Contraction Option Date”) provided). Tenant must exercise the Contraction Option, howeverif at all, that the effectiveness by delivering a written notice of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial TermOctober 31, together 2022, and including with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s such notice payment to Landlord, on or prior to the Contraction Option Date, Landlord in immediately available good funds of the “Contraction PaymentFee(as hereinafter defined) in an amount equal to the sum of (i) the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, 9.57% of all brokerage fees and multiplied legal costs payable by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of Landlord through the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure Amendment, together with five percent (5%) interest, amortized over the Third Extension Term, plus (ii) six (6) months of Tenant to make Base Rent and Tenant’s Additional Rent for the Contraction Payment Space (based upon the amounts which Tenant would have been obligated to pay Landlord for the six (6) month period following the Contraction Date), which sum the parties stipulate to be $761,000.00, based upon Tenant’s current Additional Rent plus a 3% annual inflation escalator, and Tenant shall continue to pay all rentals and other charges under the Lease with respect to the Contraction Space and comply with each and every term and provision thereof accruing through the Contraction Date (and all such obligations accruing through the Contraction Date shall survive such termination, including but not limited to, any rentals or other charges not yet determined or billed prior to the Contraction Date). As of the date immediately preceding the Contraction Date Tenant shall completely vacate and surrender the Contraction Space to Landlord in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is the terms of the essence Lease, subject to the remaining provisions of delivery this Section 9. Without limitation, Tenant shall leave the Contraction Space in a broom-clean condition and free of all movable furniture, fixtures, equipment, and other personal property, including all data and telecommunications cabling. However, notwithstanding anything to the contrary set forth in the Lease, Tenant shall have no obligation to remove from the Contraction Space any alterations previously approved by Landlord, but in all events Tenant must (i) repair any damage to the Contraction Space caused by Tenant’s removal of its personal property therefrom, (ii) repair any damage to Building systems or structures caused in connection with Tenant’s use or occupancy of the Contraction Option Notice Space, subject to normal wear and tear, (iii) remove all hazardous materials and substances, if any, brought onto the Contraction Space by Tenant, its employees, agents, contractors, or invitees, and (iv) remove all data and telecommunications cabling that was installed by or on behalf of Tenant back to the point of entry into the Contraction Space. Subject to Tenant’s compliance with the foregoing, if Tenant timely and properly exercises its Contraction Option, then effective as of the Contraction Date the Contraction Space shall be deemed surrendered by Tenant to Landlord, and the Lease shall be deemed terminated with respect to the Contraction PaymentSpace. If Tenant shall holdover in the Contraction Space beyond the day immediately preceding the Contraction Date, Tenant shall be liable for Base Rent, Tenant’s Additional Rent and other charges respecting the Contraction Space in accordance with the hold over provisions of the Lease for such period of holdover. It shall be a condition to Tenant’s right to exercise the Contraction Option that, as of the date of Tenant’s exercise notice and at any time thereafter up to the Contraction Date, Tenant is not in default under the Lease beyond any applicable notice and cure period, and neither the Lease nor Tenant’s right of possession shall have been terminated and the Lease shall then be in full force and effect.

Appears in 1 contract

Samples: Lease (Capella Education Co)

Contraction Option. Provided Tenant fully and completely satisfies each of the conditions set forth in this Section 8, Tenant shall have the one time option ("Contraction Option") to terminate the Lease (as amended) as to a portion of the Suite 100 (generally in the northwest corner of Suite 100) consisting of between 1,000 and 3,000 rentable square feet as designated by Tenant and reasonably approved by Landlord (the "Contraction Space"). In order to exercise the Contraction Option, Tenant must fully and completely satisfy each and every one of the following conditions: (a) Tenant shall have the one-time right, at must give Landlord written notice ("Contraction Notice") of its sole option, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon Option, which Contraction Notice must (i) Tenant delivering a Notice to Landlord exercising state the effective date of such termination ("Contraction Option (Date"), which date must be after the “Contraction Option Notice”) not later than the conclusion last day of the fifth thirtieth (5th30th) Lease Year full calendar month of the initial Extended Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment be delivered to Landlord, on or Landlord at least one hundred twenty (120) days prior to the Contraction Option Date, of and (iii) designate the Contraction Payment” Space (as hereinafter defined) equal which designation shall be subject to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent parameters described in this Section 8 above and shall be subject to Landlord's reasonable approval); and (8%b) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice to Landlord, Tenant shall not be in default under the Lease, as amended, after expiration of applicable notice and cure periods. If Tenant properly exercises its Contraction Option, (A) upon the Contraction PaymentDate, the Contraction Space shall no longer be a part of the New Premises and Tenant shall have surrendered and delivered exclusive possession of the Contraction Space to Landlord and, thereupon, Tenant's Proportionate Share and Tenant's parking allocation shall be reduced on a pro rata basis, (B) notwithstanding Section 8(A) above, from and after the Contraction Date, Tenant shall still be required to pay Base Rent for the Contraction Space throughout the remainder of the Extended Term, but the rate of Base Rent payable for such space shall be reduced from the rate specified in Section 5 of this Third Amendment above by $12.50 per rentable square foot of the Contraction Space per year, and (C) Landlord and Tenant shall execute a new amendment to the Lease documenting such modification to the New Premises upon the terms specified in this Section 8. If Tenant fails to timely surrender exclusive possession of the Contraction Space to Landlord, then the holdover provisions of Section 15 of the Original Lease shall apply with respect to such Contraction Space. Following the surrender of the Contraction Space to Landlord, and when Landlord secures a new tenant for the Contraction Space, Landlord shall perform the following work (collectively, the "Demising Work"): (1) install a full-height demising wall(s) to separate the Contraction Space from Tenant’s remaining space in the New Premises; and (2) separate the systems serving the Contraction Space from Tenant’s remaining space in the New Premises. Tenant shall reimburse Landlord for the costs incurred by Landlord for such demising wall(s) within ten (10) business days after delivery of an invoice therefor; however, the cost of systems separation and all other costs of such separation shall be borne solely by Landlord. If Tenant properly exercises its Contraction Option, Tenant hereby acknowledges that Landlord will be performing such demising work during the Extended Term, and Landlord's performance of such work shall not be deemed a constructive eviction of Tenant, nor shall Tenant be entitled to any abatement of rent in connection therewith. However, Landlord shall use commercially reasonable efforts to conduct those portions of the Demising Work which are most likely to be disruptive to Tenant's business (specifically including, but not limited to, demolition work) either (i) during non-business hours, or (ii) on weekends, and to the extent that any disruptive work needs to be done during normal business hours, Landlord shall endeavor to complete such portion of the work in as minimally disruptive a manner as practicable. Once commenced, Landlord shall diligently pursue the completion of the Demising Work.

Appears in 1 contract

Samples: Lease (Data I/O Corp)

Contraction Option. (a) Provided that Tenant is not then in default of its monetary or nonmonetary, material obligations under this Lease, Tenant shall have the oneoption to contract up to thirty-time right, at its sole option, to surrender to Landlord a portion five thousand (35,000) square feet of rentable area of the Demised Premises (at any point during their initial lease term provided the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon following conditions are met: (i) Tenant delivering a Notice shall give Landlord at least two hundred seventy (270) days prior written notice of its intent to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premisesexercise such contraction option; and (ii) Tenant’s payment to LandlordSuch contraction space shall be in a mutually agreeable location in the Building, on or but in any event shall be in a location having a prominent lobby entrance; (iii) Tenant shall, no later than six (6) months prior to the Contraction Option Date, effective date of the “Contraction Payment” (as hereinafter defined) contraction, pay a lump sum lease termination fee to equal to the sum of the unamortized portion tenant improvements, free rent, and brokerage commissions equal to the proportionate share of such contraction space, as well as reasonable costs to demise the subject space (amortized over months 7 through 126 of the initial term of this Lease). Such interest rate to be utilized for the amortization calculations shall be nine percent (9%) per annum, except for the Additional Allowance (as defined in Section 4.2 of the Lease CostsImprovement Agreement), as hereinafter defined, calculated using an eight which shall be amortized at ten percent (810%) interest rateper annum); (iv) Tenant shall deliver the contraction space to Landlord in the same condition as received at lease commencement, normal wear and tear excepted, and multiplied by in clean and sanitary condition; and (v) all Rent obligations of Tenant under this Lease for such contraction space are paid through the fraction where date of contraction. Landlord shall cause the numerator is contraction space to be separately metered for electricity following the rentable effective date of such contraction, and Tenant shall thereafter have no responsibility for such electricity costs. Notwithstanding the foregoing, Tenant shall still be obligated for reconciliation of Operating Expenses and Excess Utilities Payments under this Lease for the for the contraction space until such contraction was effective. Tenant agrees that, should the contraction result in the addition of extra corridors or other nonleasable areas, the Load Factor (as defined in Section 1(b) above) may be increased, it being the parties’ intention that the Tenant’s exercise of the contraction option shall not result in a reduction in the area of the Surrender Premises and Building on which Landlord may collect Rent. If the denominator contraction space is connected to Tenant’s security system, Tenant shall, at Tenant’s option, either remove that system from the rentable area contraction space or make whatever changes to the system are necessary to permit its use by the next occupant of the Demised Premises contraction space (including the Surrender Premises)in no event, plus the amount which is equal however, shall Tenant have any liability to three (3) months of Basic Rental payable for the Surrender Premises at the time Landlord or any occupant of the Contraction Option Date (the “Contraction Payment”contraction space by reason of failure of such security system). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.

Appears in 1 contract

Samples: Standard Lease Agreement (Health Net Inc)

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