Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).
Appears in 2 contracts
Sources: Lease Agreement (Andersen Group Inc.), Lease Agreement (Andersen Group Inc.)
Contraction Option. Subject to the terms of this Section 2.11, Original (a) Tenant and any Affiliate Assignee shall have the one-time right right, at its sole option, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to terminate Tenant’s lease 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 comprised of which shall comprise the entire sixteenth Surrender Premises; and (16thii) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below)payment to Landlord, provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year on or prior to the Contraction Date. Within thirty (30) days of the Contraction Option Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”Payment” (as hereinafter defined) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space Lease Costs, as hereinafter defined, calculated using an eight percent (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises8%) interest rate, and multiplied by the rentable area of fraction where the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by numerator is the rentable area of the Contraction SpaceSurrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), and (B) an plus the amount which is equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent of Basic Rental payable for the Surrender Premises at the time of the Contraction Space during Lease Year 7Option Date (the “Contraction Payment”). For the purposes of clause (A) abovehereof, the amortization Lease Costs shall be computed on a straight line basis over defined as the period commencing on sum of: (w) the first day Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the Term 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 ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annumno effect. Time is of the essence with respect to the of delivery of any the Contraction Option Notice and the Contraction FeePayment.
(b) In the event that Tenant shall give the Contraction Option Notice and shall otherwise comply with the conditions of the exercise of Tenant’s right to contract the Demised Premises as provided hereunder, including, but not limited to, the payment of the Contraction Payment when due, Tenant shall surrender the Surrender Premises to Landlord on the Contraction Option Date in broom clean condition and otherwise in the condition required by the Lease for the surrender of the Demised Premises upon the Expiration Date and Tenant acknowledges and recognizes that Time is Of the Essence with respect to Tenant’s obligation to vacate the Surrender Premises on the Contraction Option Date.
(c) Upon such surrender of the Surrender Premises, Landlord shall perform all work necessary to separate the Surrender Premises from the balance of the Demised Premises including, but not limited to, the construction of demising walls, public corridors to service the Surrender Premises as required by code (including lighting, HVAC, electric, wall finishes, ceiling finishes, and floor finishes using building standard materials), and the separation of electrical circuiting, fire alarm wiring & devices, sprinkler systems, and ventilation and air conditioning systems. Tenant shall not be entitled to exercise reimburse Landlord for the reasonable cost thereof within thirty (30) days after receipt of an invoice therefor, together with reasonable supporting documentation.
(d) In the event that Tenant shall give the Contraction Option if, at Notice and shall otherwise comply with the time of Landlord’s receipt conditions of the Contraction Noticeexercise of Tenant’s right to contract the Demised Premises as provided hereunder, a monetary or material non-monetary default under Landlord and Tenant shall promptly execute an amendment to this Lease reflecting the surrender of the Surrender Premises and the associated proportionate reduction in Basic Rental and Tenant’s Share, which shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) become effective immediately following the Contraction Option in accordance Date (provided Tenant has otherwise complied with the terms of this Section 2.1136).
(e) Notwithstanding anything to the contrary contained herein, then, effective as any exercise by Tenant of its Contraction Option under this Section 36 shall be void and of no effect unless on the date Tenant issues the Contraction Date, the lease of Option Notice to Landlord and on the Contraction Space shall automatically terminate Option Date: (i) this Lease is in full force and be of no further force or effect, and Landlord and Tenant shall be relieved (ii) no Event of their respective obligations Default has occurred under this Lease with respect to the Contraction Spaceand remains continuing beyond any applicable notice grace or cure periods, except for those obligations of either party set forth in (iii) Tenant has not assigned this Lease with respect or sublet the Premises other than to the period a Tenant Affiliate, and (iv) Tenant has not exercised its Right of Tenant’s tenancy First Refusal for any First Refusal Space pursuant to Section 42 hereof (any of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date conditions described in clauses (including, without limitation, the Contraction Feei), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assigneeii), (iii), or (iv) above may be waived by Landlord at any sublessee or other transferee of Original Tenanttime in Landlord’s interest in this Leasesole discretion).
Appears in 2 contracts
Sources: Lease (Covisint Corp), Lease (Covisint Corp)
Contraction Option. Subject to Provided the terms Premises at all times during the Term contain at least the entire 3rd and 4th floors of this Section 2.11the Building (containing 61,904 square feet of Agreed Rentable Area), Original Tenant and any Affiliate Assignee shall have the one-time right (to reduce the “Contraction Option”) to terminate Tenant’s lease of the portion Agreed Rentable Area of the Premises comprised in an amount not to exceed the rentable area of a full floor of space within the Premises (provided that the Premises remaining after such space reduction will contain the entire sixteenth (16th) floor 3rd and 4th floors of the Building and at least 61,904 square feet of Agreed Rentable Area), subject to the following terms and conditions:
(the a) Tenant shall exercise such contraction right, if at all, by delivering Landlord written notice (a “Contraction SpaceNotice”) effective as designating (i) the amount of space (in rentable area) that Tenant desires to give back (not to exceed 30,000 square feet of Agreed Rentable Area, and provided that the remainder of the date set forth in Tenant’s Contraction Notice (defined belowPremises following such space reduction will contain at least 61,904 square feet of Agreed Rentable Area), provided that (ii) the effective date of such date must be no earlier than the last day of the ninety-sixth contraction (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord and (iii) Tenant’s desired location of such give-back space; provided that the “Contraction Notice”) irrevocably exercising location of the Contraction Option given at least one give-back space shall be determined in the following order of priority: (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise exclude any space on any full floors contained within the Premises unless it has excluded all portions of the Premises located on any multi-tenant floors; (2) such give-back space shall be located on the highest floor on which Tenant then leases space; (3) such give-back space shall be a single block of contiguous space on each floor on which such space is located; and (4) such contraction shall not cause any space remaining within the Premises to become non-contiguous to any other remaining space on the affected floor. The Contraction Option if, Date shall be at least nine (9) months after the time of Landlord’s receipt of date on which Landlord receives the Contraction Notice, but in no event shall the Contraction Date occur prior to the last day of the 36th Lease Month; provided, however, that if Tenant has exercised the Second Expansion Option and any Expansion Space Commencement Date related thereto occurs after the last day of the 24th Lease Month, then the Contraction Date shall not occur prior to the last day of the Extended Contraction Period. The term “Extended Contraction Period” shall mean the period commencing on the latest applicable Expansion Space Commencement Date and ending on the last day of the calendar month thereafter in which Landlord has received 36 full payments of Basic Monthly Rent, excluding any months in which Basic Monthly Rent is $0 (e.g., Lease Months 61-66). Within fifteen (15) days after Landlord’s receipt a monetary Contraction Notice, Landlord shall deliver written notice (any such notice, a “Contraction Response”) to Tenant either approving or material nonobjecting to the location of the give-monetary default under this Lease back space as identified by Tenant. Landlord shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option object to such location only if such give-back space is not Reasonably Leasable (as defined below), in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Landlord’s reasonable opinion (in which event Tenant shall be relieved required to revise the configuration of their respective obligations under this Lease with respect to the give-back space and the foregoing notice and approval process shall be repeated as required). The space ultimately selected by Tenant and approved by Landlord for exclusion from the Premises shall be the “Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)”.
Appears in 1 contract
Sources: Office Lease Agreement (Pfsweb Inc)
Contraction Option. Subject to the terms of this Section 2.11If Tenant has not exercised its Expansion Option granted in Paragraph 33 above, Original Tenant and any Affiliate Assignee shall have the one-time right option to reduce the area of the Premises by up to 20,000 rentable square feet located on the second floor of the Project (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Turnback Space”) effective as on January 31, 2010 upon the following conditions:
(a) Tenant shall give Landlord written notice of Tenant’s exercise of the date set forth in Tenant’s Contraction Notice (defined below)contraction option on or before April 30, provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord 2009 (the “Contraction Notice”) irrevocably exercising which shall include the Contraction Option given at least one amount of space Tenant desires to turn back to Landlord;
(1b) year prior to the Contraction Date. Within thirty (30) days The location and configuration of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which proposed Turnback Space shall be effective upon Tenant’s delivery of the Contraction Notice and approved by Landlord, which approval shall survive the expiration not be unreasonably withheld, conditioned or earlier termination of this Lease), delayed;
(c) Tenant shall pay the costs necessary to Landlord demise the Turnback Space from the balance of the Premises including construction of demising partitions, entrances and similar work and, if required by applicable codes, construction of corridors; and
(d) Tenant shall pay a termination contraction fee (the “Contraction Fee”) to Landlord on the date Tenant turns back the Turnback Space to Landlord equal to Landlord’s unamortized transaction costs for the sum Additional Space which, for the purpose of (A) this provision shall include Landlord’s contribution for the unamortized cost (as of Tenant Finish Improvements, real estate commissions, Tenant’s existing lease obligations and related costs. The amount of the Contraction Date) Fee shall vary depending on the date the Additional Premises are added to the Premises pursuant to Paragraph 1 of the aggregate Lease and shall be determined by multiplying the number of (1) square feet of rentable area included in the brokerage commissions paid Turnback Space by the per square foot amount for the applicable date set forth below. February 2007 $ 15.59 March 2007 16.35 April 2007 17.10 May 2007 17.84 June 2007 18.57 July 2007 19.30 August 2007 20.03 Landlord in connection with and Tenant shall execute an amendment to this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s confirming contraction following receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease Notice which shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as conditioned upon Tenant’s payment of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).
Appears in 1 contract
Sources: Lease Agreement (Vital Images Inc)
Contraction Option. Subject to Provided PMA Capital Insurance Company or its affiliate (as defined in the terms Lease) or corporate successor remains the “Tenant” under the Lease at the time of this Section 2.11Tenant’s exercise of the option herein granted, Original Tenant and any Affiliate Assignee shall have the option to reduce the Premises by one-time right half (1/2) of a full floor on the “Contraction Option”) following terms and conditions.
8.1 Landlord hereby grants to Tenant a single option to terminate this Lease solely with respect to one half (1/2) of the Rentable Area contained on either the uppermost or the lowermost floor on which the Premises (exclusive of the P-2 Space) is located at the time of Tenant’s lease exercise of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building such option (the “Contraction Space”), subject to Landlord’s approval (not to be unreasonably withheld) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day location and configuration of the ninety-sixth Contraction Space on the floor in question in order to insure the reasonable marketability thereof to third parties for office purposes. Provided no Event of Default then exists under the Lease, by written notice to Landlord on or before December 31, 2014 Tenant may terminate this Lease with respect to the Contraction Space effective twelve (96th12) full calendar month of the initial Term (months after the date so specified by ▇▇▇▇▇▇, on which Landlord receives such notice (the “Contraction Date”). Any such exercise by Tenant of the option herein contained shall be irrevocable and shall be absolutely subject to satisfaction of the following terms and conditions:
8.1.1 As a condition to the validity of Tenant’s notice of contraction, upon prior written such notice must be accompanied by Tenant’s good bank check or other payment acceptable to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as in an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) amount equal to the sum derived by multiplying the then unamortized Landlord’s Cost of Leasing (Ahereinafter defined) the unamortized cost (as of the Contraction Date) Date (assuming straight line amortization at a rate of 10% per annum over the entire Extended Term, except with regard to the Refurbishment Allowance (defined in Section 11.1 hereof), which shall be amortized over that period of the aggregate Extended Term commencing on January 1, 2011 and ending on the Contraction Date), by the percentage derived by dividing the Rentable Square Footage of the Contraction Space by the Rentable Square Footage of the entire Premises (1exclusive of the P-2 Space) prior to such termination. The term “Landlord’s Cost of Leasing”shall mean the sum of the following: (i) the brokerage 2003 Allowance to the extent advanced under Section 6, (ii) all leasing commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Amendment, (iii) Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, reasonable legal costs incurred and multiplied by the rentable area of the Contraction Space)paid in negotiating and preparing this Amendment, and (3iv) the portion of the Rent Abatement applicable Refurbishment Allowance, to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default extent theretofore advanced under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)11 hereof.
Appears in 1 contract
Sources: Office Lease (Pma Capital Corp)
Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have a single option to reduce the one-time right (the “Contraction Option”) to terminate Tenant’s lease size of the portion 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 wishes to exercise its contraction option hereunder, Tenant must deliver to Landlord, clear and unconditional written notice of Tenant's election to reduce the size of the Premises comprised (the "Contraction Notice"), at any time prior to the seventh (7th) anniversary of the entire sixteenth Rent Commencement Date; (16thb) floor upon Tenant's timely exercise of its contraction option, the effective date for the reduction in size of the Building 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 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 (the "Contraction Space”"), said Contraction Space being outlined on Schedule 5 attached hereto and made a part hereof; (e) effective as from and after Tenant's exercise such Contraction Option by Tenant's timely delivery of the date set forth in Tenant’s its Contraction Notice and Contraction Fee as required herein, Tenant shall continue to timely perform all of its obligations under this Lease (defined belowincluding, without limitation, its Rental obligations), provided that such date must be no earlier than the last day of the ninety-sixth ; (96thf) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising Tenant shall vacate and surrender the Contraction Option given at least one Space in the condition required under this Lease on or before thirty (130) year days prior to the Contraction Date. Within thirty , time being of the essence, and Tenant shall be deemed to be "holding over" therein if it does not do so; (30g) days from and after the Cancellation Date and Tenant's surrender of the Contraction DateSpace, as consideration for (andthe Fixed Rent, at Landlord’s sole electionTenant's Tax Share, as a condition precedent to) such early terminationTenant's Operating Share, the Electricity Additional Rent, the Cafeteria Additional Rent, Tenant's parking spaces, Tenant's private dining room rights, and as an irrevocable covenant by Tenant (which Tenant's signage rights shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease)proportionately reduced, Tenant shall pay on a per rentable square foot basis, to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by reflect the rentable area of the Contraction Space), Premises remaining after such contraction; and (3h) notwithstanding anything to the portion contrary contained in this Lease, Tenant's contraction option hereunder shall be subject to the following additional conditions: (i) as of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area date of the Contraction Space), Notice (and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s 's receipt of the Contraction NoticeFee), a monetary or material non-monetary default under this Lease no Event of Default shall have occurred and be continuing hereunder beyond any applicable notice continuing; (ii) if Tenant fails to properly and cure period provided under this Lease. Provided 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 properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effectonly, and Landlord and Tenant shall not be relieved transferred or assigned to any other parties; (iv) such contraction shall not release or discharge any of their respective Tenant's obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space accruing up to and including the Contraction Date; (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; (including, without limitation, 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 Fee)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 refunds due to Tenant effect from Landlord for any overpayments the date of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (Landlord's notice with such contraction option being null and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)void.
Appears in 1 contract
Contraction Option. Subject (a) Tenant may terminate this Lease as to the terms part of the Premises specified by Tenant, but subject to the qualifications in this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right 24 (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Surrendered Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior by giving Landlord at least 365 days written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior of its election to the Contraction Datedo so. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which Such termination shall be effective upon Tenant’s delivery as of the Contraction Notice and which shall survive last day of the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee 84th Lease Month (the “Contraction FeeEffective Date”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) aboveclarification, the amortization Contraction Notice must be delivered not later than the last day of the 72nd Lease Month.
(b) The Surrendered Space must meet the following criteria: (i) the Surrendered Space must not contain any part of the original Premises (i.e., the Surrendered Space may only be space that Tenant added to the definition of “Premises” after the Commencement Date); and (ii) the Surrendered Space (1) must be contiguous, (2) must be in a location and size reasonably acceptable to Landlord, (3) must be in a configuration that is readily leasable as one or more suites, as reasonably determined by Landlord, and (4) must comply with local exit separation requirements and all other laws, all at Tenant’s expense.
(c) In connection with Tenant’s exercise of its contraction option pursuant to this Section 24, Tenant shall pay a Contraction Fee (defined below) to Landlord within 30 days following notice of the Contraction Fee Calculation (defined below) from Landlord. As used herein, the “Contraction Fee” shall equal the sum of (i) the Rent-Based Contraction Penalty (defined below), and (ii) the amount that would be computed outstanding on a straight line basis over hypothetical loan on the period commencing date of the Contraction Notice assuming (1) an original principal balance equal to the Leasing Costs (defined below), (2) an interest rate of 8% per annum, (3) the loan is payable in equal monthly installments of principal and interest, beginning on the first day of the first full calendar month of the Term (as applicable to the Surrendered Space) and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is first day of the essence with respect last scheduled month of the initial Term (as applicable to the delivery of any Contraction Notice Surrendered Space), and (d) all payments were made before the Contraction FeeNotice. The term “Leasing Costs” means all costs incurred by Landlord in leasing the Surrendered Space to Tenant (including leasing commissions, allowances, other tenant inducements, and attorneys’ fees). The “Rent-Based Contraction Penalty” shall not be entitled calculated according to exercise the Contraction Option if, at the time of Landlord’s chart below: Promptly following receipt of the Contraction NoticeNotice from Tenant, a monetary or material non-monetary default under this Lease Landlord shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) calculate the Contraction Option in accordance with the terms of this Section 2.11, then, effective as Fee and deliver written notice of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due Fee to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The (the “Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this LeaseFee Calculation”).
Appears in 1 contract
Sources: Lease Agreement (ReachLocal Inc)
Contraction Option. Subject to Provided Tenant is not in an Event of Default hereunder in excess of the terms Default Threshold at the time of this Section 2.11the delivery of the Contraction Space Notice (as defined herein), Original Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease reduce the Rentable Area of the portion of the Leased Premises comprised of the entire sixteenth by excluding therefrom one (16th1) floor or two (2) full floors of the Building (such floor(s), as determined, being the “Contraction Space”) ), effective as of the date set forth in Tenant’s Contraction Notice (defined below)June 30, provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord 2021 (the “Contraction NoticeSpace Termination Date”). Such Contraction Option shall be subject to the following terms and conditions:
(a) irrevocably exercising Tenant shall exercise the Contraction Option given at least one by providing Landlord with written notice thereof not later than July 1, 2020 (1the “Contraction Space Notice”), including specificity as to the location of the Contraction Space. If Tenant fails to timely exercise the Contraction Option, it shall lapse unexercised and Tenant shall have no further right to reduce the Rentable Area of the Leased Premises pursuant hereto.
(b) year prior Within fifteen (15) business days after Tenant’s exercise of the Contraction Option hereunder and the transmittal of a draft amendment by Landlord to Tenant, Landlord and Tenant agree to use good faith reasonable efforts to negotiate and enter into an amendment to this Lease to document such exercise, which amendment, in addition to the matters outlined above, shall adjust the Rentable Area of the Premises, Tenant’s Proportionate Share and all other provisions of this Lease which are affected by a contraction in the size of the Premises. Tenant shall continue to be liable for its obligations under this Lease to and through the Contraction Space Termination Date, including, without limitation, any reconciliation of Tenant’s Proportionate Share of the amount of Landlord’s Taxes and Tenant’s Proportionate Share of the amount of Operating Costs with respect to the Contraction Date. Within thirty Space.
(30c) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as As a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon to Tenant’s delivery exercise of its Contraction Option, Tenant must have delivered to Landlord, no later than the Contraction Notice and which shall survive the expiration or earlier termination of this Lease)Space Termination Date, Tenant shall pay to Landlord an amount as a termination contraction fee (the “Contraction Fee”) equal to the sum of (Ai) the unamortized cost six (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (36) months monthly Fixed of then current Basic Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease Additional Rent with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect plus (ii) an amount equal to the period unamortized portion (amortized over 180 months at eight percent [8%] per annum) of Tenant’s tenancy the Allowance (i.e., $83.50 per square foot of Rentable Area of the Contraction Space through or such lesser amount as was actually used by Tenant), the Abatement (i.e., not including the Beneficial Occupancy Period), and leasing commissions applicable to the Contraction Date and Space. It is hereby acknowledged that the Contraction Fee is not a penalty but is a reasonable pre-estimate of the damages that will be incurred by Landlord as a result of such obligations of either party contraction (which specifically survive the expiration or earlier termination of this Leasedamages are impossible to calculate more precisely) and, includingin that regard, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease constitutes liquidated damages with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)such loss.
Appears in 1 contract
Sources: Lease Agreement (Carters Inc)
Contraction Option. Subject to Tenant shall, provided that all the terms of this Section 2.11Expansion Conditions are then satisfied, Original Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease of the portion of exclude from the Premises comprised an area of the entire sixteenth (16th) one full floor of Premises designated by Tenant as hereinafter provided, which contraction will be effective as of February 28, 2000, 2005, and 2010 (the Building “Contraction Date”). Space designated by Tenant to be excluded from the Premises (the “Contraction Space”) effective as must be at a non-contiguous floor or the upper [or lower] end of the date set forth in largest contiguous 2 block pace then leased by Tenant’s . The Contraction Notice (defined below)Option shall be exercised, provided that such date must be no earlier than the last day of the ninety-sixth essence, by notice given by tenant to Landlord, on or before twelve (96th12) full calendar month of months prior to any such Contraction Date identifying the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord Space (the “Contraction Notice”) irrevocably exercising the ). Each time Tenant fails to timely deliver its Contraction Notice, Tenant will be deemed to have waived such Contraction Option given at least one for the applicable Lease year. If Tenant timely delivers its Contraction Notice, then as of the relevant Contraction Date: (1) year 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 Date. Within thirty (30) days 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 Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, Premises and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice Proportionate Share and which shall survive the expiration or earlier termination of this Lease)any other appropriate terms, Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal due to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area return of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred execute and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect return such an amendment to the Contraction Space, except for those obligations of either party set forth in this Lease with respect within fifteen (15) days after its submission to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).
Appears in 1 contract
Sources: Lease Agreement (Wells Real Estate Investment Trust Inc)
Contraction Option. Subject to Sections 30(c), 30(d), 30(e), 30(f), 30(g) and the terms last paragraph of this Section 2.11, Original Article 30 of the Lease shall be deleted in their entirety and the following provisions shall be inserted in its place:
2.4.1 Tenant and any Affiliate Assignee shall have the one-time right option (the “Third Contraction Option”) to terminate Tenant’s lease of contract the portion of the Premises comprised consisting of the entire sixteenth eighth (16th8th) floor of the Building (the “Third Contraction Space”), effective December 31, 2014. If Tenant elects to exercise the Third Contraction Option, Tenant shall notify Landlord of its intent to do so (the “Tenant’s Third Contraction Notice”) no less than twelve (12) months prior to the effective as date thereof. Tenant shall pay Landlord a sum equal to two (2) years of the then-escalated gross rent which would next become due in connection with the Third Contraction Space after the effective date set forth in Tenant’s Third Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Third Contraction DatePayment”), . Tenant shall pay the Third Contraction Payment one-half ( 1/2) upon prior written notice to Landlord (the “delivery of Tenant’s Third Contraction Notice”Notice and one-half ( 1/2) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days prior to the effective date.
2.4.2 Tenant shall also have the option (the “Fourth Contraction Option”) to contract the portion of the Premises consisting of the entire seventh (7th) floor (the “Fourth Contraction Space”), effective December 31, 2017. If Tenant elects to exercise the Fourth Contraction Option, Tenant shall notify Landlord of its intent to do so (the “Tenant’s Fourth Contraction Notice”) no less than twelve (12) months prior to the effective date thereof. Tenant shall pay Landlord a sum equal to two (2) years of the then-escalated gross rent which would next become due in connection with the Fourth Contraction Space after the effective date set forth in Tenant’s Fourth Contraction Notice (the “Fourth Contraction Payment”). Tenant shall pay the Fourth Contraction Payment one-half ( 1/2) upon delivery of Tenant’s Fourth Contraction Notice and one-half ( 1/2) thirty (30) days prior to the effective date.
2.4.3 It shall be a condition to Tenant’s exercise of any of the Contraction DateOptions that, as consideration for (and, both at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery the time of the exercise of the Contraction Notice Option and which shall survive at the expiration or earlier termination of effective date thereof, Tenant is not in Default under this Lease), Tenant . All of the terms and provisions of the Lease shall pay be applicable to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as any of the Contraction Date) of the aggregate of Space, except (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied Premises shall be decreased as of the effective date of such contraction by the rentable area of the such Contraction Space), and (2) Tenant’s Share shall be decreased as of the effective date of such contraction to reflect the removal of such Contraction Space from the Premises, (3) the portion of Monthly Base Rent due under the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted Lease shall be decreased by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 the product of (i.e., three x) the rentable square feet of such Contraction Space and (3y) months monthly Fixed the then-escalated Monthly Base Rent rate for the Contraction Space during Lease Year 7). For purposes of clause (A) abovePremises in effect, the amortization shall be computed on a straight line basis over the period commencing on the first day as of the Term and ending on effective date of such contraction.
2.4.4 Tenant’s failure to strictly comply with the Expiration Date, with interest at provisions regarding the (non-compounded) rate of 6% per annum. Time is Contraction Options shall nullify any attempted exercise of the essence with respect Contraction Options by Tenant.
2.4.5 Notwithstanding anything to the delivery contrary contained in this Lease, Tenant’s rights to exercise any of any Contraction Notice and the Contraction Fee. Tenant Options shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt affected by any sublease of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled Premises entered into pursuant to exercise) the Contraction Option in accordance with the terms of this Section 2.11Lease, thenbut in no event shall any sublessee have any rights to exercise any of said Contraction Options. In addition, effective as the right to exercise any of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant Options shall be relieved of their respective obligations under this Lease with respect automatically transferred to an Assignee who leases the entire Premises pursuant to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination terms of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).
Appears in 1 contract
Sources: Office Lease (Northern Trust Corp)
Contraction Option. Subject Provided that (i) 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 terms of this Section 2.11Contraction Option Effective Date (as hereinafter defined), Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) to terminate Tenant’s lease of cancel this Lease with respect to the entire portion of the Premises comprised of located on the entire sixteenth twelfth (16th12th) floor of the Building (the “Contraction SpaceCancelled Floor”) ), effective as of the date set forth in Tenant’s tenth (10th) anniversary of the Rent Commencement Date applicable to the Twelfth Floor Premises (the “Contraction Notice (defined belowOption Effective Date”), provided that such date must be no earlier than the last day of the ninety-sixth (96thA) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior Tenant shall have given Landlord written notice of Tenant’s election to Landlord exercise the Contraction Option (the “Contraction Notice”) irrevocably exercising ), effective as of the Contraction Option given at least one Effective Date, by no later than eighteen (118) year months prior to the Contraction Option Effective Date. Within thirty , and (30B) days Tenant shall have paid Landlord, at the time of the giving of the Contraction DateNotice, as consideration for (andAdditional Rent, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery amount equal to one-half of the Contraction Notice Payment and which shall survive the expiration or earlier termination of this Lease), (C) Tenant shall pay have paid Landlord the second half of the Contraction Payment on the date that is at least 30 days prior to Landlord a termination fee (the Contraction Option Effective Date. The “Contraction Fee”Payment” shall mean (a) an amount equal to the sum unamortized costs (amortized over a 180 month period at an interest rate of (A6%) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions incurred or paid by Landlord in connection with this Lease for (x) the brokerage commissions applicable to Tenant’s Broker and Landlord’s Agentthe Cancelled Floor, (2y) the portion of the Tenant Improvement Work Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space)Cancelled Floor, and (3z) the portion of the Rent Abatement so-called “free rent” applicable to the Contraction Space Cancelled Floor (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area 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, and multiplied by the rentable area of the Contraction Spacebut excluding any free rent or rent credits due Tenant under Sections 2.04(b), 7.03, 11.05 and 17.03(b) hereof); and (Bb) an amount equal to $395,895.50 six (i.e.6) monthly installments of Base Rent, three (3) months monthly Fixed Rent for Tenant’s Operating Payment and Tenant’s PILOT Payment as of the month in which the Contraction Space during Lease Year 7)Option Effective Date will occur. For purposes 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 (Aa) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annumthis Section 37.01. Time is of the essence with respect to the delivery giving of any the Contraction Notice and the making of the Contraction FeePayment by the dates specified. If Tenant shall not 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 entitled 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 if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred be null and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Datevoid, the lease of the Cancelled Floor to Tenant shall remain in full force and effect after the Contraction Space Option Effective Date as if the Contraction Notice had never been given and Tenant shall automatically terminate and be of have no further force rights under this Article 37 or effect(y) Tenant’s exercise of the Contraction Option shall remain in effect and Tenant’s lease of the 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 Tenant all rights and remedies available to Landlord for Tenant’s failure timely to pay the Contraction Payment as in the case of any failure to pay Rent due under this Lease. Upon the timely giving of the Contraction Notice and the timely payment of the Contraction Payment, the Term of this Lease with respect to the Cancelled Floor shall be relieved 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 their respective the Premises, and neither party shall have any further rights or obligations under this Lease with respect to the Contraction SpaceCancelled Floor, except for those such rights and obligations of either party set forth in this Lease with respect to which expressly survive the period of Tenant’s tenancy termination or expiration of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination Term of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).
Appears in 1 contract
Sources: Lease (KCG Holdings, Inc.)
Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right option (the “"Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below"), provided that such date must be there is then no earlier than uncured Event of Default under this Lease, to reduce the last day size of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified Leased Premises by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior 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 the be effective on a date ("Contraction Date. Within thirty ") during the sixth Lease Year (30between March 1, 2003 and February 28, 2004) days of the Contraction Date, as consideration for provided (and, at Landlord’s sole election, as a condition precedent toa) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay delivers to Landlord a termination fee at least twelve (the “12) months prior written notice ("Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction DateNotice") of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled its election to exercise the Contraction Option ifand the Contraction Date, and (b) Tenant pays to Landlord at the time of Landlord’s receipt the delivery of its Contraction Notice a reduction fee equal to the Termination Payment that would have been payable as of the Contraction NoticeDate 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, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise2003) the Contraction Option shall terminate automatically and Tenant shall have waived forever its right to exercise the Contraction Option. If Tenant timely exercises the Contraction Option but fails to timely pay the Termination Payment allocable to such floor simultaneously with the delivery of its Contraction Notice, the exercise of the Contraction Option by Tenant shall be null and void and the Lease shall remain in full force and effect for all of the Leased Premises. EXHIBIT C AIR CONDITIONING AND HEATING SERVICES Subject to the provisions of Section 3.1.1 (ii) of the Lease, Landlord will furnish Building standard air conditioning and heating (as specified below) between 7:00 a.m. and 6:00 p.m. from Monday through Friday (without request), and 8:00 a.m. and 1:00 p.m. on Saturdays (upon request made in accordance with the terms rules and regulations for the Building), excluding Holidays, Upon request of this Section 2.11Tenant, thenmade in accordance with the rules and regulations for the Building, effective as of Landlord will furnish air conditioning and heating at other times (that is, at times other than the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and times specified above) in which event Tenant shall be relieved reimburse Landlord for the cost of their respective obligations under this Lease with respect to furnishing such services at the Contraction Space, except for those obligations of either party rates set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date on Schedule II attached hereto and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxesincorporated herein. The Contraction Option following dates shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest constitute "Holidays" as said term is used in this Lease).:
1. New Year's Day; 2. Good Friday;
Appears in 1 contract
Sources: Office Space Lease Agreement (FSP Phoenix Tower Corp)
Contraction Option. Subject to Provided Tenant fully and completely satisfies each of the terms of conditions set forth in this Section 2.118, Original Tenant and any Affiliate Assignee shall have the one-one time right option (the “"Contraction Option”") to terminate Tenant’s lease of the Lease (as amended) as to a portion of the Premises comprised 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 entire sixteenth following conditions: (16tha) floor Tenant must give Landlord written notice ("Contraction Notice") of its exercise of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Option, which Contraction Notice must (defined belowi) state the effective date of such termination ("Contraction Date"), provided that such which date must be no earlier than after the last day of the ninety-sixth thirtieth (96th30th) full calendar month of the initial Term Extended Term, (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice ii) be delivered to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one hundred twenty (1120) year days prior to the Contraction Date. Within thirty , and (30iii) days designate the Contraction Space (which designation shall be subject to the parameters described in this Section 8 above and shall be subject to Landlord's reasonable approval); and (b) at the time of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease)to Landlord, Tenant shall pay to Landlord a termination fee (not be in default under the “Lease, as amended, after expiration of applicable notice and cure periods. If Tenant properly exercises its Contraction Fee”) equal to the sum of Option, (A) upon the unamortized cost (as Contraction Date, 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 Date) of the aggregate of (1) the brokerage commissions paid by Space to Landlord in connection with this Lease to and, thereupon, Tenant’s Broker 's Proportionate Share and Landlord’s AgentTenant's parking allocation shall be reduced on a pro rata basis, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal notwithstanding Section 8(A) above, from and after the Contraction Date, Tenant shall still be required to $395,895.50 (i.e., three (3) months monthly Fixed pay Base Rent for the Contraction Space during Lease Year 7). For purposes throughout the remainder of clause (A) abovethe Extended Term, but the amortization rate of Base Rent payable for such space shall be computed on a straight line basis over reduced from the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option specified in accordance with the terms Section 5 of this Section 2.11, then, effective as of the Contraction Date, the lease Third Amendment above by $12.50 per rentable square foot of the Contraction Space shall automatically terminate and be of no further force or effectper year, and (C) Landlord and Tenant shall be relieved 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 their respective obligations under this 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, except for those obligations of either party set forth in this Lease with respect Landlord shall perform the following work (collectively, the "Demising Work"): (1) install a full-height demising wall(s) to the period of Tenant’s tenancy of separate the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, from Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to remaining space in the New Premises; and (2) separate the systems serving the Contraction Space up 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 and including any abatement of rent in connection therewith. However, Landlord shall use commercially reasonable efforts to conduct those portions of the Contraction Date Demising Work which are most likely to be disruptive to Tenant's business (specifically including, without limitationbut not limited to, the Contraction Fee)demolition work) either (i) during non-business hours, or (ii) on weekends, and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not extent that any other assigneedisruptive work needs to be done during normal business hours, or any sublessee or other transferee Landlord shall endeavor to complete such portion of Original Tenant’s interest the work in this Lease)as minimally disruptive a manner as practicable. Once commenced, Landlord shall diligently pursue the completion of the Demising Work.
Appears in 1 contract
Sources: Lease (Data I/O Corp)
Contraction Option. Subject Notwithstanding anything in this Lease to the terms of this Section 2.11contrary, Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) right, exercisable at Tenant’s sole option, to terminate Tenant’s lease this Lease, effective as of the portion last day of the Premises comprised seventh (7th) Lease Year or the last day of the entire sixteenth ninth (16th9th) floor of Lease Year, with respect to up to two (2) floors in the Building Premises (such space with respect to which Tenant elects to terminate this Lease is hereinafter referred to as the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that . Tenant may exercise such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified right by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written delivering notice to Landlord thereof (the “Contraction Notice”) irrevocably exercising to 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 later than sixteen (16) months prior to the Contraction Option given at least one Date specified in the Contraction Notice. The Contraction Space shall (1i) year 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 respect to any portion of the Contraction Space located on a floor upon which Tenant shall retain space as part of the Premises following the Contraction Date, the portion of the Premises which is not part of the Contraction Space located on such floor shall be in a location that is reasonably marketable following the deduction of the Contraction 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 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 exercises its contraction option under this Section 50, then Tenant shall pay to Landlord on the date which occurs sixty (60) days prior to the Contraction Date. Within thirty , the following amounts:
(30I) days of with respect to the Contraction DatePremises initially demised under this Lease (the “Initial Premises”), as consideration for (andbut not any Expansion Space, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant First Refusal Space or Available Space which is leased by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Leasehereinafter collectively referred to as “Future Leased Space”), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) an amount equal to the sum of (Aa) the then unamortized cost sum (as i.e., amortized over the initial twelve (12) year Term of this Lease, at the Contraction Daterate of eight percent (8%) per annum) of the aggregate Pro Rata Portion (as hereinafter defined) of (1i) the Tenant Allowance (as defined in Exhibit C) as to the Initial Premises paid by Landlord to Tenant, (ii) all reasonable brokerage commissions paid by Landlord with respect to this Lease and any amendments hereto which relate to the Initial Premises, excluding amendments which relate to Future Leased Space, and (iii) all reasonable attorneys’ fees paid by Landlord in connection with the preparation and negotiation of this Lease (which attorneys’ fees shall not exceed Twenty-Five Thousand Dollars ($25,000.00)) with respect to Tenant’s Broker and Landlord’s Agentthis Lease); and
(II) with respect to all Future Leased Space, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 the sum of (a) the then unamortized sum [i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis amortized over the period commencing on the first day term of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction particular portion of the Future Leased Space at issue, at the rate of eight percent (8%) per annum] of the Pro Rata Portion (as hereinafter defined) of (i) any tenant allowance with respect to such Future Leased Space paid by Landlord to Tenant, (ii) all reasonable brokerage commissions paid by Landlord with respect to such Future Leased Space, except for those obligations and (iii) all reasonable attorneys’ fees paid by Landlord in connection with the preparation and negotiation of either party set forth in any amendment to this Lease with respect to such Future Leased Space; together with (b) (i) the period amount of Tenant’s tenancy two (2) times the amount of the Contraction Space through Monthly Base Rent for the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this seventh (7th) Lease with respect Year) allocable to the Contraction Space up to and including in the event the Contraction Date is the last day of the seventh (including7th) Lease Year, without limitation, or (ii) the amount of the Monthly Base Rent for one month for the ninth (9th) Lease Year allocable to the Contraction Fee), Space if the Contraction Date is the last day of the ninth (9th) Lease Year and refunds due to Tenant from Landlord for any overpayments (c) (i) in the event that the Contraction Date is the last day of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee seventh (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this 7th) Lease).
Appears in 1 contract
Contraction Option. Subject to the terms and conditions of this Section 2.1136, Original 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 (130) or less for two (2) consecutive calendar quarters, Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease of eliminate from the portion of Leased Premises one (1) full Floor comprising either the Premises comprised of sixth (6th) Floor or the entire sixteenth seventh (16th7th) floor of the Building Floor (the “Contraction Space”) ), effective as of the date set forth in Tenant’s Contraction Notice April 30, 2012 (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction 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 prior Tenant giving written notice to Landlord (the “Contraction Notice”) irrevocably exercising to Landlord of such election no later than nine (9) months following the Lease Commencement Date. In the event of the exercise of the Contraction Option given at least one (1) year prior to Option, Tenant shall pay the Contraction DateFee (as defined below) to Landlord. Within Landlord shall notify Tenant of the amount of the Contraction Fee within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction NoticeNotice and the Contraction Fee shall be due and payable (i) one-half within fifteen (15) days after Landlord delivers to Tenant a statement of the Contraction Fee, a monetary or material nonand (ii) one-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) half by the Contraction Option in accordance with the terms Effective Date. The failure of this Section 2.11, then, effective as Tenant to make any payment of the Contraction Date, the lease Fee as and when due shall render Tenant’s exercise of the Contraction Space Option void. The “Contraction Fee” shall automatically terminate and be equal the unamortized amount of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect Landlord’s transaction costs allocable to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, brokerage and leasing commissions, and Landlord’s reasonable attorneys’ fees and expenses, as of the parties’ respective indemnity obligationsContraction Option Effective Date, Tenant’s obligation as amortized over a ten (10) year period, at an interest rate of 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 all amounts owed to Tenant any overpayment of the Contraction Fee within thirty (30) days after the determination by the arbiter. If Tenant shall effectively exercise the Contraction Option as set forth in this Section 36, Tenant shall surrender to Landlord the Contraction Space as of the Contraction Option Effective Date in the condition required under this Lease for the surrender of the Leased Premises and Tenant shall, on or before the Contraction Option 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 Space to Landlord upon the Contraction Option Effective Date shall subject Tenant to the holdover provisions of Section 27 with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)such space.
Appears in 1 contract
Contraction Option. Subject to If Tenant does not exercise the terms of this Section 2.11Swap Option under Paragraph 2 above, Original then if and only if Tenant and any Affiliate Assignee shall have timely exercised the one-time right (the “Contraction Option”) to terminate Tenant’s lease contraction option under Section 12.02 of the portion 500 Boylston Lease to surrender the 18th Floor of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ 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, upon prior written Tenant shall deliver notice of its exercise of the 222 Contraction Option to the 222 Berkeley Landlord on or before December 31, 2005 (the “222 Contraction Exercise Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence in the timely exercise of the 222 Contraction Option. If Tenant fails to timely exercise the 222 Contraction Option by such date strictly in accordance with respect to the delivery of any Contraction Notice and the Contraction Fee. this Paragraph 4, then Tenant shall not be entitled 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 ifonly in part, at such exercise notice shall be invalid and without force or effect. If Tenant shall timely and validly deliver the time of Landlord’s receipt of the 222 Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option Exercise Notice in accordance with the terms of this Section 2.11, thenParagraph 4, effective as of the Contraction Date, Date the lease entire 11th Floor shall cease to be part of the Contraction Space shall automatically terminate and be of no further force or effectLeased Premises under the 222 Berkeley Lease for all purposes, and Landlord 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 Option 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 be relieved of their respective obligations under this Lease with respect surrender and vacate the 11th Floor to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through Landlord on the Contraction Date and such obligations in the condition required under Section 4.06 of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed . Any failure by Tenant under this Lease with respect to timely surrender and vacate the Contraction Space up 11th Floor to and including Landlord on or before the Contraction Date (including, without limitation, shall constitute a holdover as to which the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments provisions of Tenant’s Proportionate Share Section 8.01 of Operating Expenses or Taxes. The Contraction Option the Lease shall be personal apply as though such Section referred solely to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)11th Floor.
Appears in 1 contract
Sources: Lease (Houghton Mifflin Co)
Contraction Option. Subject to the terms of this Section 2.11, Original A. Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease of reduce the portion size of the Premises comprised of demised under Lease by an amount not to exceed 30,000 rentable square feet in the entire sixteenth (16th) floor of the Building aggregate (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth effective on October 31, 2012 (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior which Contraction Option shall be exercised by Tenant as follows:
(1) Tenant shall give Landlord binding written notice to Landlord (the “Contraction Notice”) irrevocably exercising of Tenant’s election to exercise the Contraction Option given at least one no later than nine (19) year months prior to the effective Contraction Date. Within thirty (30) days The Contraction Notice shall specify the total rentable square feet and the approximate location of that portion of the Premises that will be reduced from the Premises (“Contraction DatePremises”) on such date (the final area of such reduction shall be mutually agreed upon by Landlord and Tenant, as consideration for (and, at and such reduction shall in all events leave the Contraction Space marketable in Landlord’s sole election, as a condition precedent toreasonable discretion).
(2) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination contraction fee (the “Contraction Fee”) equal to in the sum amount of (Ai) the unamortized cost (as portion of the Contraction Date) of the aggregate of (1) the brokerage rent abatement, allowances, all leasing commissions and all legal fees paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable respect to the Contraction Space in connection with entering into this Lease (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area all of the Premises, and multiplied by the rentable area which costs shall be amortized at a rate of the Contraction Spaceeight percent (8%) per annum), and plus (ii) three (3) the portion months’ of the Rent Abatement applicable (including Base Rent, Operating Cost Share Rent, Tax Share Rent, and Additional Rent) with respect to the Contraction Space at the then-prevailing amount of such Rent payable hereunder on such Contraction Date.
(i.e.3) The Contraction Fee shall be due and payable one hundred twenty (120) days prior to the Contraction Date as selected by Tenant, or at the total Rent Abatement actually granted option of Tenant, 25% concurrently with Tenant’s Contraction Notice and 75% no later than thirty (30) days prior to the Contraction Date.
B. The proposed size, location and configuration of the Contraction Space shall be determined by Tenant, but the location and configuration shall be subject to approval by Landlord, divided by not to be unreasonably withheld, conditioned or delayed. In the aggregate rentable area of the Premises, event Tenant timely and multiplied by the rentable area of properly exercises the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) aboveOption, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant Space shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, terminate effective as of the Contraction Date, the lease of Rent attributable to the Contraction Space shall automatically terminate cease to accrue as of the Contraction Date and Tenant’s Proportionate Share shall be reduced accordingly. Rent for the Contraction Space shall be paid through and apportioned as of no further force or effectthe Contraction Date, and neither Landlord and nor Tenant shall be relieved of their respective have any rights, estates, liabilities or obligations first accruing under this Lease after the Contraction Date with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to such rights and liabilities which, by the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination terms of this Lease, includingare obligations which survive the expiration of the Lease, without limitationand Tenant shall pay to Landlord, the parties’ respective indemnity obligationsupon demand, Tenant’s obligation to pay any and all amounts owed reasonable costs and expenses incurred by Tenant under this Lease Landlord in connection with respect to separating and demising the Contraction Space up from the balance of the Premises, including without limitation any demising walls, common corridor and other costs attributable to the floor on which such contraction occurs and including incurred as a result of such contraction.
C. Any termination of this Lease or of Tenant’s right of possession hereunder shall terminate all of Tenant’s rights under this Section 33. Tenant’s exercise of its Contraction Option is further subject to the condition that Tenant is not in default beyond any applicable notice and cure period under any of the terms, covenants or conditions of this Lease at the time of the Contraction Notice or upon the Contraction Date. Tenant shall deliver the Contraction Space to Landlord on or before the Contraction Date (including, without limitationin accordance with the terms and conditions of this Lease, the same as if the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or TaxesDate were the original Termination Date hereof. The Contraction Option shall be is personal to United Stationers Supply Co. and any Affiliate (as defined in Section 17.G. above) and may not be exercised by or for the Original Tenant or its Affiliate Assignee (and not benefit of any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)party.
Appears in 1 contract
Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below"CONTRACTION OPTION"), provided that such date must be there is then no earlier than uncured Event of Default under this Lease, to reduce the last day size of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified Leased Premises by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior 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 the be effective on a date ("Contraction Date. Within thirty ") during the sixth Lease Year (30between March 1, 2003 and February 28, 2004) days of the Contraction Date, as consideration for provided (and, at Landlord’s sole election, as a condition precedent toa) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay delivers to Landlord a termination fee at least twelve (the “Contraction Fee”12) equal to the sum of months prior written notice (A) the unamortized cost (as of the Contraction Date"CONTRACTION NOTICE") of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled its election to exercise the Contraction Option ifand the Contraction Date, and (b) Tenant pays to Landlord at the time of Landlord’s receipt the delivery of its Contraction Notice a reduction fee equal to the Termination Payment that would have been payable as of the Contraction NoticeDate 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, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise2003) the Contraction Option shall terminate automatically and Tenant shall have waived forever its right to exercise the Contraction Option. If Tenant timely exercises the Contraction Option but fails to timely pay the Termination Payment allocable to such floor simultaneously with the delivery of its Contraction Notice, the exercise of the Contraction Option by Tenant shall be null and void and the Lease shall remain in full force and effect for all of the Leased Premises. EXHIBIT C AIR CONDITIONING AND HEATING SERVICES Subject to the provisions of Section 3.1.1 (ii) of the Lease, Landlord will furnish Building standard air conditioning and heating (as specified below) between 7:00 a.m. and 6:00 p.m. from Monday through Friday (without request), and 8:00 a.m. and 1:00 p.m. on Saturdays (upon request made in accordance with the terms rules and regulations for the Building), excluding Holidays, . Upon request of this Section 2.11Tenant, thenmade in accordance with the rules and regulations for the Building, effective as of Landlord will furnish air conditioning and heating at other times (that is, at times other than the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and times specified above) in which event Tenant shall be relieved reimburse Landlord for the cost of their respective obligations under this Lease with respect to furnishing such services at the Contraction Space, except for those obligations of either party rates set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date on SCHEDULE II attached hereto and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxesincorporated herein. The Contraction Option following dates shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest constitute "HOLIDAYS" as said term is used in this Lease):
1. New Year's Day; 2. Good Friday; 3.
Appears in 1 contract
Contraction Option. Subject Landlord hereby grants to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below)option, provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified exercisable by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Exclusion Notice”), to reduce the size of the Premises (“Contraction Option”) irrevocably exercising on the terms and conditions set forth below. Tenant’s exercise of the Contraction Option given at least one shall be effective on the day preceding the September 30, 2013 (1the “Exclusion Date”). Tenant shall deliver the Exclusion Notice to Landlord no later than nine (9) year prior full calendar months before the Exclusion Date (“Exclusion Exercise Date”), time being of the essence. If Tenant exercises the Contraction Option, the area to be deleted from the Premises (“Excluded Premises”) shall consist of the portion of the Premises currently located on the eleventh (11th) floor of the Building containing 5,865 square feet of rentable area.
(a) If Tenant exercises the Contraction Option, the Term shall terminate (except as otherwise provided herein) as to the Contraction Excluded Premises as of the Exclusion Date, as if the Lease had expired by lapse of time, and the remainder of the Premises shall be the Premises under the Lease (“Remainder Leased Premises”). Within thirty Tenant shall vacate and deliver possession of the Excluded Premises to Landlord on the Exclusion Date in the manner set forth in the Lease for surrender of the Premises. Any retention of possession by Tenant of all or part of the Excluded Premises after the Exclusion Date shall be deemed a holding over under the Lease without the consent of Landlord, and shall be subject to the terms and conditions of this Lease with respect to such retention of possession. Effective as of the Exclusion Date, the number of square feet of rentable area in the Premises, Base Rent provided to be paid pursuant to the Lease for the Excluded Premises and Tenant’s Share shall be reduced based upon the number of square feet of rentable area in the Remainder Leased Premises.
(30b) days As a condition to the effective exercise of the Contraction DateOption, as consideration for Tenant shall pay Landlord the Contraction Fee (and, at Landlord’s sole election, as a condition precedent tohereinafter defined) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon concurrently with Tenant’s delivery of the Contraction Exclusion Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the Landlord. The term “Contraction Fee”) ” shall mean $49,655.05, which amount is equal to the sum unamortized balance of the Excluded Premises Leasing Costs (Ahereinafter defined) the unamortized cost (as of the Contraction Date) Exclusion Date had the Excluded Premises Leasing Costs been loaned to Tenant as of the aggregate Surrender Date at the interest rate of eight percent (8%) per annum and had such loaned amount been repaid in equally monthly installments commencing on the Surrender Date in amounts sufficient to fully amortize such loaned amount and the imputed interest thereon on the Extension Term Expiration Date. The term “Excluded Premises Leasing Costs” shall mean the sum of the product of (1x) 0.19, and (y) the (i) total brokerage commissions paid commission payable by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space)Amendment, and (3ii) the portion actual amount of the Allowance applied against Base Rent Abatement applicable or against the cost of Landlord’s Work pursuant to this Amendment. If Tenant elects to exercise the Contraction Space (i.e.Option, then Tenant thereby waives and releases any and all defenses, whether known or unknown and whether by way of defense, offset, repayment, recoupment, or otherwise, that it may have with regard to its obligation to pay the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the PremisesContraction Fee, and multiplied by the rentable area of the Contraction Space)that nothing that may occur after Tenant’s election shall in any way discharge, and (B) an amount equal modify or suspend its obligation to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and pay the Contraction Fee. Tenant Landlord shall not be entitled to exercise have the Contraction Option if, at the time of Landlord’s receipt same remedies for non-payment of the Contraction Notice, Fee as for Rent. Tenant acknowledges that the Contraction Fee constitutes a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond refundable prepayment of Rent, notwithstanding any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as subsequent leasing of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed Excluded Premises by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Landlord.
Appears in 1 contract
Sources: Lease Amendment (Mesa Air Group Inc)
Contraction Option. Subject Landlord grants Tenant the one-time right to contract the Premises during the Term of the Lease, as extended hereby (the "Contraction Option"), subject to and accordance with the following terms of this Section 2.11and conditions:
a. Provided Tenant is not in default under the Lease beyond any applicable notice and cure periods, Original Tenant and any Affiliate Assignee shall have the one-time right by delivering written notice (the “"Contraction Option”Notice") to terminate Tenant’s lease Landlord on or before June 30, 2009 (the "Contraction Notice Deadline") to return possession of that certain space known as Suite 700 having eight thousand nine hundred ninety-six (8,996) rentable square feet and more particularly shown as "Suite 700" on Exhibit C-3 attached hereto and incorporated herein by this reference ("Suite 700"). This Contraction Option shall be applicable to the entire portion of the Premises comprised of Suite 700 and may only be exercised with respect to the entire sixteenth (16th) floor portion of Suite 700.
b. As a condition precedent to any release of Suite 700 pursuant to the Building (the “Contraction Space”) effective as provisions of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by this ▇▇▇▇▇▇▇▇▇ ▇, ▇▇▇▇▇▇ must have delivered to Landlord, together with its Contraction Notice, a contraction payment in the amount of Five Hundred Thousand Three Hundred Eighty-Four and 41/100 Dollars ($589,384.41) in readily available U.S. funds (the "Contraction Payment"). Failure by Tenant to deliver the Contraction Notice (accompanied by payment of such Contraction Payment) on or before the Contraction Notice Deadline shall mean that Tenant shall have waived Tenant's right to release Suite 700 pursuant to this Paragraph 6.
c. If Tenant duly and timely delivers the Contraction Notice to Landlord, together with the Cancellation Payment, on or before the Contraction Notice Deadline, such contraction shall be effective as of December 31, 2009 (the "Release Date").
d. If Tenant duly and timely delivers the Contraction Notice, together with the Contraction Payment, then from and after the Release Date, (i) all references in the Lease to the "Premises" shall be deemed to refer to the Premises, as contracted, (ii) Landlord and Tenant shall account between themselves for all Monthly Rental, additional rental and other charges as provided for in the Lease with respect to Suite 700, (iii) Tenant shall have no further rights or obligations arising out of or related to the Lease with respect to Suite 700, except those that by their express terms survive the expiration or sooner termination of the Lease, and (iv) Suite 700 shall be released from the Lease.
e. Tenant shall surrender Suite 700 to Landlord in accordance with the terms and provisions therefor set forth in the Lease on or before the Release Date, the “Contraction Date”)same as if the Release Date were the Expiration Date of the Term of the Lease with respect to Suite 700. Thereafter, upon prior written notice Tenant shall have no further right, claim or interest with respect to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year Suite 700 and shall remove all its equipment and property therefrom. Any property not removed prior to the Release Date shall be deemed abandoned, and Landlord shall be authorized to retain such property, or any portion thereof, as Landlord's own property or to dispose of such property in any manner Landlord deems appropriate, in Landlord's sole discretion. Tenant shall remain liable for any and all cost relating to any removal or disposition of any such property and releases Landlord of any and all liability in connection therewith. Tenant acknowledges that Landlord has relied and will rely on Tenant's covenants set forth in this subparagraph in entering into a new lease with a third party with respect to Suite 700 and in performing Landlord's obligations under such new lease. If Tenant fails to vacate Suite 700 on or before the Release Date after providing a Contraction Notice, Tenant shall be required to pay rental for Suite 700 at a rate of one hundred ten percent (110%) of the Rent provided for in the Lease as of the Release Date for each calendar month that Tenant remains in occupancy of Suite 700. Notwithstanding anything in this Third Amendment to the contrary, Tenant shall remain obligated to pay Rent with respect to Suite 700 for the period prior to the Release Date. Within .
f. Tenant's Share shall be adjusted to reflect the release of Suite 700.
g. At least thirty (30) days of before the Contraction Release Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, Landlord and as Tenant agree to enter into an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of amendment to the Contraction Notice and which shall survive Lease to document the expiration or earlier termination exercise of this Lease)Contraction Option.
h. Notwithstanding anything in this Paragraph 6 to the contrary, Tenant shall pay have no right to Landlord exercise this Contraction Option under this Paragraph 6 at any time after which either (i) a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence default occurs with respect to Tenant under the delivery of any Contraction Notice Lease and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder remains uncured beyond any applicable notice and cure period provided periods under this Lease. Provided Tenant properly exercises the Lease or (and is entitled to exerciseii) the Contraction Option Lease is not in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate full force and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).
Appears in 1 contract
Sources: Lease Agreement (Simmons Co)
Contraction Option. Subject to the terms Provided that Tenant is not then in default of its monetary or nonmonetary, material obligations under this Section 2.11Lease, Original Tenant and any Affiliate Assignee shall have the oneoption to contract up to thirty-time right five thousand (the “Contraction Option”35,000) to terminate Tenant’s lease square feet of the portion rentable area of the Premises comprised at any point during their initial lease term provided the following conditions are met: (i) Tenant shall give Landlord at least two hundred seventy (270) days prior written notice of its intent to exercise such contraction option; (ii) Such contraction space shall be in a mutually agreeable location in the Building, 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 effective date of the entire sixteenth (16th) floor contraction, pay a lump sum lease termination fee to equal the sum of the Building unamortized 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 (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month amortized over months 7 through 126 of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination term of this Lease), Tenant shall pay . Such interest rate to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent be utilized for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization calculations shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the nine percent (non-compounded9%) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those the Additional Allowance (as defined in Section 4.2 of the Lease Improvement Agreement), which shall be amortized at ten percent (10%) per 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 in clean and sanitary condition; and (v) all Rent obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect for such contraction space are paid through the date of contraction. Landlord shall cause the contraction space to be separately metered for electricity following the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee)effective date of such contraction, and refunds due to Tenant from Landlord shall thereafter have no responsibility for any overpayments of Tenant’s Proportionate Share 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 Taxesother 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 Building on which Landlord may collect Rent. The Contraction Option shall be personal If the contraction space is connected to Tenant’s security system, Tenant shall, at Tenant’s option, either remove that system from the contraction space or make whatever changes to the Original system are necessary to permit its use by the next occupant of the contraction space (in no event, however, shall Tenant or its Affiliate Assignee (and not have any other assignee, liability to Landlord or any sublessee or other transferee occupant of Original Tenant’s interest in this Leasethe contraction space by reason of failure of such security system).
Appears in 1 contract
Sources: Lease Agreement (Health Net Inc)
Contraction Option. Subject to During the terms of this Section 2.11, Original Third Extension Term Tenant and any Affiliate Assignee shall have the one-one time right (the “Contraction Option”) to terminate Tenant’s lease of the portion of contract the Premises comprised by the approximately 29,394 square feet of Rentable Area portion thereof located on the entire sixteenth (16th) 4th floor of the Building Tower (identified in the Fourth Amendment as the Fourth Floor Expansion Space and herein as the “Contraction Space”” and depicted on Exhibit D attached hereto) effective as of the date set forth in Tenant’s Contraction Notice on November 1, 2023 (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”). Tenant must exercise the Contraction Option, upon prior if at all, by delivering a written notice to Landlord (the “Contraction Notice”) irrevocably exercising of exercise of the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction DateLandlord not later than October 31, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination2022, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay including with such notice payment to Landlord a termination fee (in immediately available good funds of the “Contraction Fee”) ” in an amount equal to the sum of (Ai) the unamortized cost (as portion of 9.57% of all brokerage fees and legal costs payable by Landlord through the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord Date in connection with this Lease to Amendment, together with five percent (5%) interest, amortized over the Third Extension Term, plus (ii) six (6) months of Base Rent and Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Additional Rent for the Contraction Space during Lease Year 7). For purposes of clause (Abased upon the amounts which Tenant would have been obligated to pay Landlord for the six (6) above, the amortization shall be computed on a straight line basis over the month period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of following the Contraction Date), which sum the lease of the Contraction Space shall automatically terminate and parties stipulate to be of no further force or effect$761,000.00, and Landlord based upon Tenant’s current Additional Rent plus a 3% annual inflation escalator, and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation continue to pay all amounts owed by Tenant rentals and other charges under this the Lease with respect to the Contraction Space up to and including comply with each and every term and provision thereof accruing through the Contraction Date (includingand all such obligations accruing through the Contraction Date shall survive such termination, without 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 the terms of the Lease, subject to the remaining provisions of this Section 9. Without limitation, Tenant shall leave the Contraction Fee)Space in a broom-clean condition and free of all movable furniture, fixtures, equipment, and refunds due 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 Landlord 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 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 Space. If Tenant shall holdover in the Contraction Space beyond the day immediately preceding the Contraction Date, Tenant shall be liable for any overpayments 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 Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal exercise notice and at any time thereafter up to the Original Contraction Date, Tenant or its Affiliate Assignee (is not in default under the Lease beyond any applicable notice and not any other assigneecure period, or any sublessee or other transferee of Original and neither the Lease nor Tenant’s interest right of possession shall have been terminated and the Lease shall then be in this Lease)full force and effect.
Appears in 1 contract
Sources: Lease (Capella Education Co)
Contraction Option. Subject (a) Tenant shall have several contraction options with respect to the Premises on the terms of set forth below. Provided that Tenant is not in Material Default under this Section 2.11Lease, Original Tenant and any Affiliate Assignee shall have the one-time right right, exercisable in each instance upon not less than twelve (the “Contraction Option”12) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon months prior written notice to Landlord (the “Contraction Notice”), to reduce the size of the Premises (the “Contraction Right(s)”) irrevocably exercising by surrendering portions thereof (the “Surrendered Space”) to Landlord effective as set forth below: 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 Option given 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 the number of Rentable Square Feet set forth above in the specified year and, to the extent Tenant does not 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, (ii) the space in the office tower portion of the Building which may be deleted from the Premises as a 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 highest floor of the remaining office tower portion of the Premises so long as Tenant retains at least approximately one-half of the 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), (B) be located on contiguous floors of the Premises prior to the Contraction Date. Within thirty contraction (30not including the 79th Floor Premises, or any space that has been recaptured by Landlord pursuant to Section 13(c)) days so that the remaining office tower portion of the Premises, after giving effect to such contraction, shall be located on contiguous floors (except the 79th Floor Premises, the 29th through 31st floors and the PBX Space on the 25th and 26th floors and not considering any space recaptured by Landlord pursuant to Section 13(b)), and (C) constitute the highest floors contained in the office tower portion of the Premises prior to the contraction (not including the 79th Floor Premises); provided, however that in no event shall Tenant be required to delete floors 29-31 as part of the contraction nor shall Tenant be required to delete the PBX Space on the 25th and 26th floors. The Contraction DateNotice shall specify the size, as consideration for (andlocation and configuration of the Surrendered Space. The size of the Surrendered Space shall be determined, at Landlordsubject to the limitations set forth above, in Tenant’s sole electiondiscretion. The Surrendered Space shall be in a legally leasable configuration, as provided that to the extent the Tenant elects to contract the Premises on only a condition precedent toportion of a floor, the space contracted from the Premises shall have reasonable access to the elevator lobbies and bathrooms on that floor.
(b) such early termination, and as an irrevocable covenant In the event that the Surrendered Space constitutes less than all of the space occupied by Tenant (which shall be effective upon Tenant’s delivery on a given floor or floors of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease)Building, then Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum Landlord, upon demand, one-half of (A) the unamortized cost (as Landlord’s Actual Costs of the Contraction Date) construction of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease demising walls necessary to Tenant’s Broker segregate and Landlord’s Agent, (2) demise the portion of the Tenant Improvement Allowance applicable Premises remaining on such floor and to provide access for such Surrendered Space to the Contraction elevator lobbies and bathrooms on that floor and Tenant shall be responsible for no other costs or expenses.
(c) Except as otherwise provided in Section 6 or Section 9 hereof, Tenant shall deliver the Surrendered Space (i.e.to Landlord in an “AS IS” “WHERE IS” condition, the total Tenant Improvement Allowance actually funded by without any requirement to remove Tenant’s Property or to perform repairs, improvements or other work, regardless of whether or not such space, upon delivery to Landlord, divided complies with Requirements, provided that Tenant shall repair any damage to the Building (other than to the paint, carpeting or wall covering) caused by the aggregate rentable area removal of Tenant’s Property upon request of Landlord delivered within five (5) days after Tenant has vacated the Premises, Surrendered Space and multiplied by shall remove the rentable area Structural Alterations that Landlord required Tenant to remove as a part of the Contraction Space), and (3) the portion of the Rent Abatement applicable Landlord’s consent to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal such Structural Alterations pursuant to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7Section 6(d). For purposes of clause (A) aboveExcept as expressly set forth in this Section 4, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled liable for any fee, charge or other payment because of such contraction, including, without limitation, a fee to exercise reimburse Landlord for its unamortized costs associated with this Lease (e.g., brokerage costs).
(d) Following the Effective Date of Contraction Option if(if any), at the time of Landlord’s receipt term “Premises” under the Lease shall no longer consist of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effectSurrendered Space, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect execute a modification to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy reflect such surrender and to amend such other terms and provisions of the Contraction Space through Lease which are affected by a reduction in the Contraction Date and such obligations size of either party which specifically survive the expiration or earlier termination of this LeasePremises, including, without limitationbut not limited to, the parties’ respective indemnity obligationsBase Rent, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating for Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Proportionate Share for Taxes.
Appears in 1 contract
Sources: Office Lease (Wells Real Estate Investment Trust Inc)
Contraction Option. Subject Provided, as of the 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 of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right conditions (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the ). The “Contraction Space”) effective as of Date” means the date set forth designated as such by Tenant in Tenant’s its Contraction Notice (defined below)Notice, provided that such date must be no earlier than is either the last day of the ninety-sixth (96th) 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 foregoing, if the Contraction Notice is silent as to the designation of the initial Term Contraction Premises, then Tenant shall be deemed to have designated all of Suite 1100 to be the Contraction Premises. If Tenant desires to exercise the Contraction Option, Tenant must give to Landlord irrevocable written notice of Tenant’s exercise of the Contraction Option (“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 received by Landlord no later than the date so specified by ▇▇▇▇▇▇, that is 12 months prior to the Contraction Date (“Contraction Notice/Payment Due Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising failing which the Contraction Option given at least one is deemed waived (1) year prior provided Landlord reserves the right to waive in writing the requirement that Tenant fully and/or timely pay the Contraction DatePayment). Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the The “Contraction Fee”) equal to Payment” means the sum of (A) the unamortized cost (amortized on a straight-line basis with interest at 7% per annum) amount as of the Contraction Date) Date of the aggregate of (1) following with respect to the brokerage commissions paid by Landlord Contraction Premises in connection with this Lease and any amendment to this Lease: (i) brokerage 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 Broker and Landlord’s Agent, (2) the portion payment of the Tenant Improvement Allowance applicable Contraction Payment is a condition precedent to the termination of this Lease with respect to the Contraction Space (i.e., Premises on the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the PremisesContraction Date, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on 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 expected rentals from Tenant. The Contraction Payment is payable only by wire transfer or cashier’s check. Notwithstanding anything to the contrary herein, with interest if Tenant exercises the Contraction Option and the internal staircase between Suite 1000 and Suite 1100 is located within the Contraction Premises, then Tenant shall be solely responsible for removing such staircase at Tenant’s sole cost and expense by no later than the (non-compounded) rate of 6% per annumContraction Date. Time is of the essence with respect to the delivery of any Contraction Notice dates and the Contraction Feedeadlines set forth herein. If Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred timely and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with this paragraph, this Lease and the terms of this Section 2.11, then, effective as of Term shall come to an end on the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease Date with respect to the Contraction SpacePremises only, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of same force and effect as if the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease Term with respect to the Contraction Space up Premises were fixed to and including expire on such date, the Expiration Date with respect to the Contraction Date (including, without limitation, Premises shall be the Contraction Fee)Date, and refunds due the terms and provisions of Section 18 shall apply to Tenant from Landlord for any overpayments of the Contraction Premises. Upon Tenant’s Proportionate Share request after the Commencement Date, Landlord shall notify Tenant of Operating Expenses or Taxesits calculation of the Contraction Payment. The If Tenant requests in writing Landlord’s calculation of the Contraction Option shall be personal Payment at least 30 days prior to the Original 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 or its Affiliate Assignee 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 not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Contraction Payment to Landlord.
Appears in 1 contract
Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time an ongoing right (the “Contraction OptionRight”) to terminate reduce by up to an aggregate of 34,605 rentable square feet the amount of Office Space leased by Tenant pursuant to the H&P Lease at any time after February 1, 2015. That part of the Office Space eliminated from the H&P Lease as a result of Tenant’s lease exercise of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (Contraction Right shall be referred to herein as the “Contraction Eliminated Space”) effective ” and shall be determined as of the date set forth in Tenant’s on Exhibit “B” attached hereto. Should Tenant desire to exercise this Contraction Notice Right, Tenant shall provide to Landlord six (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th6) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon months prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising and shall pay to Landlord an amount equal to the “Contraction Fee,” as defined below, at the time such Eliminated Space is vacated by Tenant. As used herein, the term “Contraction Fee” shall be the sum of (i) $7.25 per rentable square feet of Eliminated Space (as specified in the Contraction Option given at least one Notice and consistent with Exhibit “B”), plus (1ii) year prior the amount of “Unamortized TI,” as defined below, attributable to that portion of the Eliminated Space which is Expansion Space, plus (iii) the amount of “Unrecouped Commission,” as defined below, attributable to that portion of the Eliminated Space. The “Unamortized TI” shall be an amount, as of the date Tenant vacates the Eliminated Space, equal to the Contraction Dateremaining unamortized balance of the Tenant Improvement Allowance attributable to that portion of the Eliminated Space which is Expansion Space, as set forth in Section 2(f)(i) below, when amortized, using an 8% per annum interest rate, over the period from the Term Commencement Date through January 31, 2020. Within thirty (30) days of the Contraction Term Commencement Date, as consideration the parties shall prepare, attach and incorporate into this First Amendment a new, mutually satisfactory Exhibit “C” which will show the amortization schedule for (and, at Landlord’s sole electionthe Unamortized TI. The “Unrecouped Commission” shall be an amount, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive date Tenant vacates the expiration or earlier termination of this Lease)Eliminated Space, Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as remaining unrecouped balance of the Contraction Date) of the aggregate of (1) the brokerage leasing commissions paid by Landlord in connection payable with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable respect to the Contraction Space (i.e.Eliminated Space, the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed when allocated on a straight line basis over the period commencing on from the first day Term Commencement Date through January 31, 2020. Within thirty (30) days of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Commencement Date, the lease parties shall prepare, attach and incorporate into this First Amendment a new, mutually satisfactory Exhibit “D” which will show the amortization schedule for the Unrecouped Commission. Landlord shall pay all commissions that may be owing as a result of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination execution of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by First Amendment and shall indemnify and hold Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)harmless therefrom.
Appears in 1 contract
Sources: Lease (Helmerich & Payne Inc)
Contraction Option. Subject All options to contract or delete space from the terms Premises set forth in the Lease prior to execution of this Section 2.11Tenth Addendum, Original including, but not limited to, the option to contract set forth in paragraph 5 of the Eighth Addendum, are hereby superseded and deleted from the Lease. Landlord and Tenant and any Affiliate Assignee agree that Tenant shall have the one-time right and option to reduce or contract the area of the Premises subject the Lease (the “Tenant’s Contraction Option”) subject to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in following terms and conditions:
i. Tenant’s Contraction Option applies only to space within said Building number 2006;
ii. Tenant must give to Landlord written notice (a “Contraction Notice”) of its election to exercise Tenant’s Contraction Option;
iii. The Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (specify the date so specified by ▇▇▇▇▇▇, as of which the contraction shall be effective (a “Contraction Date”), upon provided that the Contraction Date shall not be earlier than December 31, 2006;
iv. The Contraction Notice must be given no later than three (3) months prior written notice to the Contraction Date;
v. The Contraction Notice must describe the area within said Building 2006, which may be all or any portion of said Building 2006, that Tenant wants to surrender to Landlord (the “Contraction NoticeDeleted Area”) irrevocably exercising and a commitment by Tenant to surrender the Contraction Option given at least one (1) year prior Deleted Area to Landlord on the Contraction Date;
vi. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Concurrently with Tenant’s delivery of the giving a Contraction Notice and which shall survive the expiration or earlier termination of this Lease)to Landlord, Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal total amount of the unamortized portion of the brokerage commission, if any, payable to the sum Broker (defined below) under paragraph 12 of (A) this Tenth Addendum and proportionately attributable to the unamortized cost (as Deleted Area;
vii. If Tenant actually surrenders possession of a Deleted Area to Landlord, on or before the Contraction Date) of , then rent under the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Dateproportionately abated, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, using the lease rent per rentable square foot then in effect;
viii. Tenant agrees to pay all out-of-pocket costs and expenses reasonably incurred by Landlord to cause each Deleted Area to become separate premises that can be demised to a separate tenant, including, but not limited to, compliance with legal requirements for ingress and egress and safety. Said payment by Tenant shall be made in one (1) or several installments as, and within ten (10) days after, Landlord presents to Tenant appropriate evidence of such costs or expenses either when incurred by Landlord or after they are owed or paid by Landlord, with copies of invoices from contractors and others who are doing the work and/or supplying the materials being deemed to be such appropriate evidence. Said costs and expenses reasonably incurred by Landlord shall include, but shall not be limited to, costs and expenses for construction of demising walls and corridors, which may include fire walls as required by law, causing electricity to be separately metered to the Deleted Area, and installing standard numbers of electrical outlets and wiring in such demising and corridor walls, but shall in no event include improvement work commonly called “tenant improvements” designed specially for the use and enjoyment of a particular tenant; and
ix. At the request of either Landlord or Tenant, they shall, after any Contraction Date, enter into an amendment to the Lease documenting the facts arising from Tenant’s exercise of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this LeaseOption, including, without limitationbut not limited to, that the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to Deleted Area is no longer part of the Contraction Space up to Premises and including what the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)current rent has become.
Appears in 1 contract
Sources: Lease (Health Net Inc)
Contraction Option. Subject to If Tenant does not exercise the terms of this Section 2.11Swap Option under Article 10 above, Original then Tenant and any Affiliate Assignee shall have the one-time right option (the “500 Contraction Option”) to terminate Tenant’s lease exclude the entire 18th Floor Space from the Leased Premises under the 500 Boylston Lease effective as of the portion end of the Premises comprised of the entire sixteenth (16th) floor of the Building day on February 28, 2007 (the “Contraction SpaceDate”) effective as ). If Tenant wishes to exercise the 500 Contraction Option, Tenant shall deliver notice of its exercise of the date set forth in Tenant’s 500 Contraction Notice (defined below), provided that such date must be no earlier than Option to the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by 5▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇ or before December 31, the “Contraction Date”), upon prior written notice to Landlord 2005 (the “500 Contraction Exercise Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence in the timely exercise of the 500 Contraction Option. If Tenant fails to timely exercise the 500 Contraction Option by such date strictly in accordance with respect to the delivery of any Contraction Notice and the Contraction Fee. this Section 12.02, then Tenant shall not be entitled 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 ifonly in part, at such exercise notice shall be invalid and without force or effect. If Tenant shall timely and validly deliver the time of Landlord’s receipt of the 500 Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option Exercise Notice in accordance with the terms of this Section 2.11, then12.02, effective as of the Contraction Date, Date the lease entire 18th Floor Space shall cease to be part of the Contraction Leased Premises under the 500 Boylston Lease for all purposes, and the floor sheets for the 18th Floor Space shall automatically terminate 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 be deliver an amendment to the Lease confirming the exercise of no further force or effectthe 500 Contraction Option and the adjustments to the Leased Premises provided for herein. If the 500 Contraction Option is exercised, and Landlord and then Tenant shall be relieved of their respective obligations under this Lease with respect surrender and vacate the 18th Floor Space to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through Landlord on the Contraction Date and such obligations in the condition required under Section 4.06 of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed . Any failure by Tenant under this Lease with respect to timely surrender and vacate the Contraction 18th Floor Space up to and including Landlord on or before the Contraction Date (including, without limitation, shall constitute a holdover as to which the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments provisions of Tenant’s Proportionate Share Section 8.01 of Operating Expenses or Taxes. The Contraction Option the Lease shall be personal apply as though such Section referred solely to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)18th Floor Space.
Appears in 1 contract
Sources: Lease (Houghton Mifflin Co)
Contraction Option. (a) Subject to the terms and conditions of this Section 2.112.10, Original Tenant and any Affiliate Assignee shall have two (2) options to eliminate from the one-time right Premises then leased by Tenant either (i) if the highest floor of the Premises is a full floor, such highest full floor, or (ii) if the highest floor of the Premises is not then a full floor, then either (x) such highest partial floor, or (y) the highest full floor (as applicable, the “First Contraction Option” and the “Second Contraction Option,” and collectively, the “Contraction Options”), effective as of December 1, 2010 with respect to the First Contraction Option, and as of December 1, 2015 with respect to the Second Contraction Option (as applicable, the “Contraction Option Effective Date”). The Contraction Options shall be subject to and conditioned upon Tenant giving written notice to Landlord of such election prior to November 1, 2009 with respect to the First Contraction Option, and prior to September 1, 2014 with respect to the Second Contraction Option, and paying the applicable Contraction Fee (as defined below) to terminate Landlord, half of which shall be due simultaneously with (and as a condition to the proper giving of) the notice exercising the applicable Contraction Option, and the remainder of which shall be due on or before the applicable Contraction Option Effective Date. Notwithstanding anything to the contrary herein provided, Tenant shall have waived its right to exercise the First Contraction Option under this Section 2.10 if Tenant elects to lease the First Expansion Premises under Section 2.5.
(b) The “Contraction Fee” shall equal the aggregate of the unamortized amount of the Initial Tenant Work Allowance and out-of-pocket costs actually incurred by Landlord for brokerage commissions, and Landlord’s reasonable attorneys’ fees and expenses, as of the applicable Contraction Option Effective Date, allocated on a per square foot basis to the floor to which the applicable Contraction Option relates, as amortized over the initial Term of this Lease, at an interest rate on the unamortized balance from time to time of ten percent (10%). However, notwithstanding the foregoing, if the floor to which the applicable Contraction Option relates is space incorporated into the Premises pursuant to Section 2.5, 2.6 or 2.7, or otherwise by amendment to this Lease, then the calculation of the Contraction Fee as aforesaid shall be made taking into account the unamortized allowance, free rent period and other Inducements used in establishing the Annual Base Rent for such space, out-of-pocket costs actually incurred by Landlord for brokerage commissions (if any), and Landlord’s reasonable attorneys’ fees and expenses, as of the applicable Contraction Option Effective Date, allocated on a per square foot basis, as amortized over the term for that floor (excluding any Extension Option) at an interest rate on the unamortized balance from time to time of ten percent (10%). For purposes of determining the amount of Tenant’s lease first installment payment of the Contraction Fee that would be due upon the exercise of one of the Contraction Options, the aggregate unamortized amount of costs per square foot, upon which calculation of the Contraction Fee is based, shall be estimated to be Ninety Dollars ($90.00) per square foot for any portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice initially leased to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction DateTenant under this Lease. Within thirty (30) days after receiving Tenant’s notice exercising the Contraction Option pursuant to paragraph (a) above, or such earlier date (but not sooner than July 31, 2004) that Tenant requests that Landlord furnish Tenant the exact calculation), Landlord shall deliver to Tenant a written statement of the actual amount of the Contraction DateFee per square foot for the applicable portion of the Premises determined in accordance with this paragraph (b), as consideration for (andand the second installment payment of the Contraction Fee that would be due upon the effectiveness of the Contraction Option shall equal the total Contraction Fee, at Landlordless the amount of Tenant’s sole electioninitial payment in respect of the Contraction Fee. In addition to the Contraction Fee, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be to the effective upon Tenant’s delivery exercise of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease)Option, Tenant shall pay reimburse Landlord for the reasonable out-of-pocket costs actually incurred by Landlord to remove any internal interconnecting stairway or stairways on such floor and restoring the slab(s) to substantially the condition prior to the installation of such stairways, within forty-five (45) days after written notice from Landlord containing reasonable substantiation of such costs.
(c) If Tenant shall effectively exercise the Contraction Option as set forth in this Section 2.10, Tenant shall surrender to Landlord a termination fee (the “Contraction Fee”) equal to applicable full floor of the sum of (A) the unamortized cost (Premises as of the Contraction Date) of Option Effective Date in the aggregate of (1) the brokerage commissions paid by Landlord in connection with condition required under this Lease to Tenant’s Broker and Landlord’s Agent, (2) for the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area surrender of the Premises. Tenant’s failure to timely surrender such floor to Landlord upon the applicable Contraction Option Effective Date shall subject Tenant to the holdover provisions of Section 5.11 with respect to such floor, and multiplied by provided that if Tenant should take any action that delays, frustrates, or contests Landlord’s obtaining possession of such floor on the rentable area date Tenant is required to surrender the same hereunder (including without limitation requesting discovery or filing an answer in a summary process proceeding), then, in Landlord’s sole discretion, such holding over shall constitute a default of Tenant with respect to this Lease under Article VIII, without need for further notice from Landlord. Any failure to timely make payment of the second half of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization Fee shall be computed on constitute a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) Promptly after the applicable Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Effective Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under agree to enter into an amendment to this Lease with respect memorializing such contraction and the amendment to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Leaseapplicable defined terms hereunder, including, without limitation, Tenant’s Rentable Floor Area, Annual Base Rent, but failure of the parties’ respective indemnity obligationsparties to execute such an amendment shall have no effect on the effectiveness of the expansion of the Contraction Option, and the economic terms associated therewith, as set forth above.
(d) Notwithstanding any contrary provision of this Section 2.10, Tenant’s obligation to pay all amounts owed Contraction Option is conditioned upon (which condition may be waived by Landlord in its sole discretion) the absence, on the date Tenant gives notice exercising the Contraction Option and on the date that would otherwise be the applicable Contraction Option Effective Date, of any default under this Lease with respect by Tenant after any applicable notice and opportunity to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)cure.
Appears in 1 contract
Sources: Lease Agreement (Digitas Inc)
Contraction Option. Subject In addition to the terms reduction option set forth in Paragraph 4 of the Twenty-First Amendment to Office Lease to which this Section 2.11Rider No. 5 is attached (the “Amendment”), Original Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease surrender all or part of the that portion of the Premises comprised of the entire sixteenth (16th) located on floor 15 of the Building (the each, a “Contraction Space”) effective as of the date set forth in ), up to three successive instances on, at Tenant’s Contraction Notice (defined below)option, provided that such date must be no earlier than either the last day of the ninety-sixth (96th) full 36th, 48th and/or 60th calendar month following the commencement of the initial Term First Extension Period (the date so specified by ▇▇▇▇▇▇each, the a “Contraction Date”), upon prior provided that (a) Tenant gives written notice to Landlord (the each, a “Contraction Notice”) irrevocably exercising the Contraction Option given at least one thereof to Landlord not less than eight (1) year 8) months prior to the Contraction Date. Within thirty (30) days of the applicable Contraction Date, as consideration for (and, b) Tenant is not in default under the Lease beyond any applicable notice or cure period at Landlord’s sole election, as a condition precedent to) such early terminationthe time of the giving of the applicable Contraction Notice or on the applicable Contraction Date, and as an irrevocable covenant (c) the portion of the floor 15 space not then being surrendered by Tenant (which shall be effective upon is in a configuration that is, in the reasonable judgment of Landlord, leasable to third parties. Additionally, Tenant’s delivery right to contract hereunder is conditioned upon the payment in full by Tenant, on or before the applicable Contraction Date, of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) cash amount equal to the sum of the following: (Ai) all Rent due by Tenant under the Lease respecting the applicable Contraction Space through and including the applicable Contraction Date, and (ii) the unamortized cost (as costs incurred by Landlord under the terms of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker Amendment and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the applicable Contraction Space (i.e.Space, including, but not limited to, the total Tenant Improvement Allowance actually funded Reimbursement Allowance, any other tenant improvement allowances, all Rent abatement, and all leasing commissions paid or incurred by Landlord, divided by all amortized at ten percent (10%) per annum (collectively, the aggregate rentable area “Contraction Payment”). Tenant shall continue to comply with all the terms and provisions of the Lease and shall remain liable for all of Tenant’s obligations which accrue under the Lease with respect to the applicable Contraction Space up to and including the applicable Contraction Date. This contraction right is personal to Tenant, and thus this Contraction Option 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 multiplied 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 rentable area provisions of the Contraction Space)Lease, and (3) expressly survive the portion termination of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7)Lease. For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time Tenant agrees that time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Feethis Rider No. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)5.
Appears in 1 contract
Contraction Option. Subject to the terms of this Section 2.11, Original (a) Tenant and any Affiliate Assignee shall have the one-time right option (the “"First Contraction Option”") to terminate contract its premises by 8,000 to 10,000 rentable square feet (the "First Contraction Space") effective any time during the year 2006. If Tenant elects to exercise the First Contraction Option, Tenant shall notify Landlord of its intent to do so (the "Tenant’s lease 's First Contraction Notice") no less than twelve (12) months prior to the effective date thereof. Tenant shall pay Landlord a sum equal to two (2) years of the portion of then-escalated gross rent which would next become due in connection with the Premises comprised of First Contraction Space after the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s 's First Contraction Notice (defined belowthe "First Contraction Payment"). Tenant shall pay the First Contraction Payment one-half (1/2) upon delivery of Tenant's First Contraction Notice and one-half (1/2) thirty (30) days prior to the effective date.
(b) Tenant shall also have the option (the "Second Contraction Option") to contract its premises by 10,000 to 20,000 rentable square feet (the "Second Contraction Space") effective any time during the year 2008. If Tenant elects to exercise the Second Contraction Option, provided that such Tenant shall notify Landlord of its intent to do so (the "Tenant's Second Contraction Notice") no less than twelve (12) months prior to the effective date must be no earlier than the last day thereof. Tenant shall pay Landlord a sum equal to two (2) years of the ninetythen-sixth escalated gross rent which would next become due in connection with the Second Contraction Space after the effective date set forth in Tenant's Second Contraction Notice (96ththe "Second Contraction Payment"). Tenant shall pay the Second Contraction Payment one-half (1/2) full calendar month upon delivery of Tenant's Second Contraction Notice and one-half (1/2) thirty (30) days prior to the effective date.
(c) Tenant shall also have the option (the "Third Contraction Option") to contract its premises by 10,000 to 20,000 rentable square feet (the "Third Contraction Space") effective any time during the year 2012. If Tenant elects to exercise the Third Contraction Option, Tenant shall notify Landlord of its intent to do so (the "Tenant's Third Contraction Notice") no less than twelve (12) months prior to the effective date thereof. Tenant shall pay Landlord a sum equal to two (2) years of the initial Term then-escalated gross rent which would next become due in connection with the Third Contraction Space after the effective date set forth in Tenant's Third Contraction Notice (the "Third Contraction Payment"). Tenant shall pay the Third Contraction Payment one-half (1/2) upon delivery of Tenant's Third Contraction Notice and one-half (1/2) thirty (30) days prior to the effective date.
(d) The First Contraction Option, the Second Contraction Option and the Third Contraction Option are herein collectively referred to as the "Contraction Options".
(e) It shall be a condition to Tenant's exercise of any of the Contraction Options that, both at the time of the exercise of the Contraction Option and at the effective date so specified thereof, Tenant is not in Default under this Lease.
(f) Tenant shall use commercially reasonable efforts to deliver to Landlord space consisting of no less than 5,000 square feet of Rentable Area of a commercially leaseable configuration with a proportional window to floor ratio. If Tenant shall exercise any of the Contraction Options set forth in this Article Twenty-Nine, the next effective Expansion or Subordinate Expansion Option provided for in this Lease shall be waived by Tenant.
(g) Tenant's failure to strictly comply with the provisions regarding the Contraction Options shall nullify any attempted exercise of the Contraction Options by ▇▇▇▇▇▇. Except as set forth below, the “Contraction Date”), upon prior written notice Options may be exercised only by and is personal to Landlord (Tenant or an Affiliate and may not be exercised by or for the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior benefit of any other party. Notwithstanding anything to the Contraction Date. Within thirty (30) days contrary contained in this Lease, Tenant's rights to exercise any of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant Options shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt affected by any sublease of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled Premises entered into pursuant to exercise) the Contraction Option in accordance with the terms of this Section 2.11Lease, thenbut in no event shall any sublessee have any rights to exercise any of said Contraction Options. In addition, effective as the right to exercise any of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant Options shall be relieved automatically transferred to (i) an Assignee who leases the entire Premises pursuant to the terms of their respective obligations under this Lease with respect or (ii) to the Contraction Space, except for those obligations any Assignee pursuant to an Assignment of either party set forth in this Lease with respect to the period for more than 25% of Tenant’s tenancy of 's then leased space in the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination Building, but shall not be transferred to any Assignee pursuant to an Assignment of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments less than 25% of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to 's then leased space in the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Building.
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Sources: Office Lease (Northern Trust Corp)
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. (or an “affiliate” thereof, as defined in Article 20 of the Lease) is the Tenant under this Section 2.11Lease, Original Tenant and any Affiliate Assignee shall have the one-time right to terminate this Lease with respect to 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”) to terminate ). Either such Contraction Option shall be effective by providing Landlord with written notice of Tenant’s lease election to so contract the Demised Premises at least twelve (12) months prior to the applicable proposed date of contraction and by paying to Landlord the “Early Contraction Payment” (as hereinafter defined) within thirty days after agreement by the parties with respect to the size and location of the portion Contraction Premises. Tenant may not exercise the option to contract the Demised Premises as provided herein if any event of default by Tenant under the 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 (i) the aggregate of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective unamortized balances, as of the effective date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month proposed contraction, of the initial Refurbishment and Build Out Allowance amount and brokerage commission amounts incurred by Landlord with respect to the extension of the Lease Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior under this Second Amendment which are proportionately attributable to the Contraction Date. Within thirty Premises (30) days of i.e. allocated on a square foot basis over the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Leaseentire Demised Premises), Tenant shall pay to Landlord amortized on a termination fee (straight-line basis over the “Contraction Fee”) equal 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 sum period following the effective date of contraction, plus (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (Bii) an amount equal to $395,895.50 (i.e., three a) four (34) months monthly Fixed Rent times the Base Rental proportionately attributable to the Contraction Premises which is due for the Contraction Space during Lease Year 7). For purposes month of clause (A) aboveFebruary, the amortization shall be computed on a straight line basis over the period commencing on 2011, if the first day of Contraction Option is exercised by Tenant, or (b) two (2) times the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect Base Rental proportionately attributable to the delivery Contraction Premises which is due for the month of any Contraction Notice and February, 2013, if the Contraction Fee. Tenant shall not be entitled to exercise the second Contraction Option if, at is exercised by Tenant. Upon the time giving of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable valid contraction notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with this Article 9 and the terms timely payment to Landlord of this Section 2.11the Early Contraction Payment, then, effective the Contraction Premises shall cease to be leased by Tenant as of the Contraction Date, effective date of contraction as if the lease same were the date herein originally fixed for the expiration of the Contraction Space shall automatically terminate and be of no further force or effectLease Term with respect thereto, and Tenant and Landlord and Tenant shall be relieved remain liable for all of their respective obligations under this Lease and undertakings with respect to the Contraction SpacePremises 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 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, except for those obligations not to be unreasonably withheld, conditioned or delayed. In determining the acceptability of either party set forth the size and location of the proposed Contraction Premises, the following standards shall apply:
(i) the Contraction Premises shall be internally contiguous;
(ii) to the extent possible, after the removal of the Contraction Premises from the Demised Premises, the remaining Demised Premises shall be internally contiguous;
(iii) the Contraction Premises shall be on the first floor only, shall be of a configuration which is marketable as office space on commercially reasonable terms, and it shall have access to the restrooms and fire stairs on the first floor, it shall have an approximately proportionate share of the exterior window walls on the first floor, and it shall have direct exposure to the elevator lobby on the first floor; and
(iv) no contraction shall leave Tenant with less than 3,000 square feet of Rentable Floor Area on the first floor. Landlord shall notify Tenant of its approval or disapproval of the proposed Contraction Premises within ten (10) days after receipt of Tenant’s written notice thereof. In the event Landlord disapproves of Tenant’s location of the proposed Contraction Premises, then Landlord shall within five (5) business days thereafter, provide Tenant with a floor plan showing a revised location which is acceptable to Landlord and the estimated square footage thereof, which shall not vary by more than 3% of that originally proposed by Tenant. Tenant shall have ten (10) business days after receipt thereof in this Lease which to notify Landlord of its approval or disapproval thereof or any proposed modification to such floor plan. Failure to so notify Landlord within such ten (10) business day period as aforesaid shall constitute acceptance of Landlord’s revised location. In the event Tenant timely notifies Landlord of its rejection of such revised location of the Contraction Premises, then the parties shall continue, in good faith, to reach agreement upon the same, applying again the aforesaid standards and time periods. In the event Tenant shall exercise such right to reduce the size of the Demised Premises as provided herein, and the parties thereafter fail to come to agreement with respect to the period of Tenant’s tenancy size and location of the Contraction Space through Premises, then Tenant shall have the Contraction Date and such obligations right to revoke its notice of either party which specifically survive the expiration or earlier termination exercise of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation contraction via written notice to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Landlord.
Appears in 1 contract
Contraction Option. Subject (i) Notwithstanding anything to the terms of contrary in this Section 2.11Lease, Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) to request to terminate Tenant’s lease of the Lease as to any portion of the Premises comprised of the entire sixteenth (16th) floor of the Building 1,000 square feet or more (the “Contraction Space”) effective as by giving Landlord prior written notice (the “Contraction Notice”) of its election to do so at least sixty (60) days for any Contraction Space in the Office Space and at least one hundred twenty (120) days for any Contraction Space in the Fab Space or Lab Space. The Contraction Notice shall state the date set forth in Tenant’s on which Tenant will surrender the Contraction Notice Space (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon which shall in no event be earlier than the required period of prior written notice set forth in the preceding sentence.
(ii) Landlord shall have the right to Landlord reject Tenant’s Contraction Notice if the Contraction Space, in Landlord’s reasonable opinion, is not in a configuration marketable to other tenants or not subject to reasonable separation from the Remaining Premises. Within ten (10) business days after the “Contraction Notice”) irrevocably exercising , Landlord will provide Tenant with notice of whether or not Landlord will accept the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area surrender of the Contraction Space). If Landlord accepts such surrender, and Landlord at the same time shall provide Tenant with an estimate (3a “Separation Estimate”) the portion of the Rent Abatement applicable cost of the work necessary to separate the Contraction Space (i.e., from the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area balance of the Premises (the “Remaining Premises, and multiplied by the rentable area of the Contraction Space”), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligationsproperly distributed HVAC, sprinkler, telephone and cabling of the Contraction Space. Tenant shall have ten (10) business days after receipt of the Separation Estimate to confirm in writing whether or not Tenant wishes to proceed with the surrender of the Contraction Space. Tenant’s obligation failure to timely provide such written confirmation that it wishes to proceed with the surrender of the Contraction Space shall be deemed Tenant’s election to waive surrender of the Contraction Space and to continue leasing such Contraction Space pursuant to the terms of this Lease.
(iii) If Tenant agrees to proceed with the surrender of the Contraction Space, Tenant shall (a) surrender the Contraction Space to Landlord on the Contraction Date in the condition required pursuant to this Lease, and (b) pay all amounts owed Landlord the reasonable cost of separating the Contraction Space from the Remaining Premises as set forth in the Separation Estimate within ten (10) days before the Contraction Date.
(iv) Landlord shall prepare a lease amendment confirming: (a) the Contraction Date; (b) the Remaining Premises; (c) the Fixed Rent; (d) the cost paid by Tenant under this Lease pursuant to the Separation Estimate; and (e) any other matter that varies with respect the size of the Premises. The Fixed Rent will be a pro rata share of the Fixed Rent, reduced by that proportion that the Contraction Space bears to the Premises. Landlord and Tenant will execute the amendment prior to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Date.
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Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right (option to reduce the “Contraction Option”) to terminate Tenant’s lease of the portion size of the Premises comprised with respect to no more than the equivalent of the entire sixteenth one (16th1) full floor of the Building (the “Contraction Space”) effective Office Tower Premises as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth sixtieth (96th60th) full calendar month of the initial Lease Term (the date so specified by ▇▇▇▇▇▇, the “"Contraction Date”), ") upon prior the conditions stated below. This "Contraction Option" shall be void unless exercised according to these conditions:
(a) Tenant shall exercise this Contraction Option by written notice ("Contraction Notice") to Landlord (identifying what portion of the “Premises Tenant intends to contract; such Contraction Notice”) irrevocably exercising the Contraction Option given Notice must be received by Landlord at least one nine (19) year months prior to the Contraction Date. Within thirty That portion of the Premises which Tenant does not elect to retain as identified in Tenant's Contraction Notice shall be referred to herein as the "Contraction Space". The Contraction Space shall be located on the top floor or floors of the Office Tower on which the portions of the Premises are located, except that if such top floor or floors of the Office Tower on which portions of the Premises are located includes Tenant's "chief" level executive offices, then the Contraction Space shall not be required to include such space; and
(30b) days No Default shall have occurred and be continuing with respect to Tenant at the time of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early terminationNotice, and as an irrevocable covenant by Tenant for the remainder of the Term through the Contraction Date; and
(which c) The Contraction Space shall be effective upon contiguous space of a shape, size and location which Landlord, in Landlord's reasonable discretion, considers reasonably marketable. That portion of the Premises which Tenant elects to retain shall be contiguous to Tenant’s delivery 's Premises. In the event Landlord determines such Contraction Space is not reasonably marketable, Landlord shall notify Tenant within ten (10) business days of its receipt of the Contraction Notice and which Tenant and Landlord shall survive thereafter cooperate in good faith to reconfigure the expiration or earlier termination of this Lease)Contraction Space so that it is reasonably marketable; and
(d) Simultaneously with Tenant's Contraction Notice, Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) Termination Option Fee equal to the sum of (Ai) the any unamortized cost Tenant Leasehold Improvement Allowance (as of the Contraction Datedescribed in Exhibit B attached hereto) of the aggregate of (1) the brokerage and leasing commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable attributable to the Contraction Space (i.e.Space, the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent which amortization for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization this purpose shall be computed on a straight line basis over the period commencing on the first day initial term of the Term Lease; and ending on the Expiration Date, with interest at the (non-compoundedii) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease).six months Base Rent with
Appears in 1 contract
Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right option (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of eliminate the entire sixteenth (16th) 46th floor of the Building (the “Contraction Space”) effective as from the Premises by giving Landlord notice thereof on or before the fourth (4th) anniversary of the date set forth in High-Rise Rent Commencement Date. Tenant’s right to exercise the Contraction Notice Option is subject to the following terms and conditions (defined below), provided that as applicable):
(i) Tenant shall designate in such written notice the date must (the “Contraction Effective Date”) on which Tenant shall surrender possession of the Contraction Space to Landlord. Such Contraction Effective Date shall be no earlier than the last day of a calendar month during the ninetyperiod commencing on the fifth (5th) anniversary of the High-Rise Rent Commencement Date and ending on the sixth (96th6th) full calendar month anniversary of the initial Term High-Rise Rent Commencement Date.
(the date so specified ii) Any exercise by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising Tenant of the Contraction Option given at least one shall be null and void and of no force and effect if, on the date of such exercise, (1a) year prior to this Lease has been terminated, or (b) this Lease is not in full force and effect.
(iii) If Tenant properly exercises the Contraction Date. Within thirty Option, then,
(30a) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord, within thirty days following receipt of a statement from Landlord a termination fee setting forth the amount of the Contraction Fee, an amount (the “Contraction Fee”) equal to the sum of (Ai) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Fit-Out Allowance applicable allocable to the Contraction Space (i.e.Space, the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization as same shall be computed have been amortized on a straight line basis over the Initial Term of this Lease, plus (ii) the Net Rent that would otherwise be due and payable by Tenant to Landlord but for Tenant’s exercise of the Contraction Option for the one year period commencing on the first day of the Term and ending on the Expiration Contraction Effective Date, with interest at plus (iii) an amount equal to Tenant’s Pro Rata Share of Taxes and Operating Expenses for the (non-compounded) rate of 6% per annum. Time is of calendar year immediately preceding the essence with respect to the delivery of any Contraction Notice and calendar year in which the Contraction Fee. Effective Date shall occur.
(b) Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt surrender possession of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option Space in accordance with the terms and provisions of this Section 2.11Article 13 hereof. If Tenant fails to surrender possession of the Contraction Space on or before the Contraction Effective Date, thenTenant shall be deemed a holdover tenant in such Contraction Space, effective and shall be liable to Landlord for all damages resulting from such holdover after the Contraction Effective Date. From and after the Contraction Effective Date (or such later date on which Tenant actually surrenders possession of the Contraction Space), the Net Rent and Tenant’s Pro Rata Share shall be appropriately adjusted.
(c) Tenant, notwithstanding its surrender of the Contraction Space, shall remain liable for all Rent allocable to the Contraction Space which shall have accrued prior to the Contraction Effective Date (or such later date on which Tenant actually surrenders possession of the Contraction Space) irrespective of whether such amounts are ascertainable as of the Contraction Effective Date.
(d) From and after the Contraction Effective Date, the lease of the Contraction Space shall automatically terminate no longer be deemed a part of the Premises, and
(e) From and be of no further force or effectafter the Contraction Effective Date, and neither Landlord and nor Tenant shall be relieved of their respective have any further rights or obligations under this Lease with respect to the Contraction SpaceSpace except to the extent provided in Article 35 hereof.
(iv) Following the Contraction Effective Date, except for those obligations of and within thirty days following written request by either party set forth in Landlord or Tenant after either such date, as the case may be, Landlord and Tenant shall enter into a mutually acceptable supplement to this Lease with respect to confirming the period of Tenant’s tenancy deletion of the Contraction Space through from the Contraction Date and such obligations of Premises pursuant hereto. The failure or refusal by either party which specifically survive to do so, however, shall not affect the expiration or earlier termination validity of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to deletion of the Contraction Space up to and including from the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Premises.
Appears in 1 contract
Sources: Office Lease (Hyatt Hotels Corp)
Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee Borrower shall have the one-time right (to decrease the “Contraction Option”) to terminate Tenant’s lease Commitment as described below; provided such decrease of the portion 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 Premises comprised 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) sixty (60) days prior written notice of its intent to decrease the entire sixteenth Commitment, which notice shall be accompanied by (16thb) floor of the Building (the “Contraction Space”) effective Partial Termination Fee as of the date set forth in Tenant’s Contraction Notice Section 2.10, (defined below)c) all reasonable costs and expenses that Lender and Servicer incur in connection with such decrease, provided that such date must be no earlier than including, but not limited to, Attorneys’ Fees and Costs and (ii) by executing and where appropriate acknowledging (a) amendments to this Agreement, the last day Revolving Credit Note and any of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇other Loan Documents, the “Contraction Date”), upon prior written notice in form and substance reasonably acceptable to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction DateLender, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early terminationLender deems reasonably necessary to evidence the decrease in the Commitment, and as an irrevocable covenant (b) any other amendments or agreements deemed reasonably necessary by Tenant Lender. All amendments referred to in clause (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Dateii)(a) of the aggregate 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 (1i) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to preceding sentence. Upon Borrower’s compliance with all of the Contraction Space provisions of items (i.e.i) and (ii) above, the total Tenant Improvement Allowance actually funded Commitment shall be decreased by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e.the Allocated Loan Amount of the released Mortgaged Property in the event of a third party sale, three (3) months monthly Fixed Rent for or decreased by the Contraction Space during Lease Year 7)amount of the Permanent Loan in the event of a refinance pursuant to the provisions of Section 2.15. For purposes Once Borrower has elected to decrease the Commitment any unexercised expansion of clause (A) above, the amortization Commitment as set forth in Section 2.1.2 shall be computed on a straight line basis over the period commencing on the first day of the Term deemed null and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice void and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option in accordance with the terms of this Section 2.11, then, effective as of the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or and effect. If Borrower elects not to decrease the Commitment, and Landlord and Tenant then in the event of an early termination pursuant to Section 2.13, Lender shall be relieved of their respective obligations under this Lease with respect to calculate the Contraction Space, except for those obligations of either party Early Termination Fee as set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease)Section 2.13.4.
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Contraction Option. Subject (i) Tenant, by delivering notice to Landlord on or prior to the terms 180th day after the date of this Section 2.11Lease, Original Tenant and any Affiliate Assignee shall have the one-one time right option (the “South Contraction Option”) to terminate Tenant’s lease eliminate the South Eighth Floor Premises from the Original Premises.
(1) If Tenant fails to timely deliver such written notice to Landlord, Tenant shall be deemed to have elected not to exercise the South Contraction Option and shall forfeit all rights pursuant to this Paragraph 35(I)(i).
(2) If Tenant properly exercises the South Contraction Option, then, from and after the date of such exercise, the South Eighth Floor Premises shall no longer be deemed a part of the portion Original Premises.
(ii) Tenant, by delivering notice to Landlord on or prior to the 180 th day after the date of this Lease, shall have the Premises comprised of the entire sixteenth (16th) floor of the Building one time option (the “Full Contraction SpaceOption”) effective as of to eliminate the date set forth in Tenant’s Contraction Notice Eighth Floor Premises from the Original Premises.
(defined below), provided that 1) If Tenant fails to timely deliver such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay be deemed to have elected not to exercise the Full Contraction Option and shall forfeit all rights pursuant to this Paragraph 35(I)(ii).
(2) If Tenant properly exercises the Full Contraction Option, then, from and after the date of such exercise, the Eighth Floor Premises shall no longer be deemed a part of the Original Premises.
(iii) In no event shall Tenant be permitted to exercise both the South Contraction Option and the Full Contraction Option.
(iv) Following exercise by Tenant of the South Contraction Option or the Full Contraction Option, and within thirty days following written request by either Landlord or Tenant, Landlord and Tenant shall enter into a termination fee mutually acceptable supplement to this Lease confirming the elimination of the South Eighth Floor Premises or the Eighth Floor Premises from the Original Premises pursuant hereto. The failure or refusal by either party to do so, however, shall not affect the validity of the elimination of the South Eighth Floor Premises or the Eighth Floor Premises from the Original Premises.
(the “Contraction Fee”v) equal to the sum of If Tenant shall (A) exercise the unamortized cost (as of South Contraction Option and not exercise the South Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s AgentRescission Option, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and or (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for exercise the Full Contraction Space during Lease Year 7). For purposes of clause (A) above, Option and exercise the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence First Expansion Option with respect to the delivery of any Contraction Notice North Eighth Floor Premises only then, on or before the Substantial Completion Date, Landlord shall construct and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option finish in accordance with Building standards all corridors, elevator lobbies and other common areas on the terms of this Section 2.11, then, effective 8th floor required for the same to be occupied as of a multi-tenant floor (the Contraction Date, the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party set forth in this Lease with respect to the period of Tenant’s tenancy of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assignee, or any sublessee or other transferee of Original Tenant’s interest in this Lease“8th Floor Division Work”).
Appears in 1 contract
Sources: Office Lease (Hyatt Hotels Corp)
Contraction Option. Subject to Tenant shall, provided this Lease is in full force and effect and, provided further, Tenant is not then in Default under the terms of this Section 2.11Lease, Original Tenant and any Affiliate Assignee shall have the one-time right (the “First Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon (i) not less than twelve (12) months’ prior written notice to Landlord (the “First Contraction Notice”) irrevocably exercising and (ii) payment of the First Contraction Option given at least Payment (as hereinafter defined), to reduce the size of the Premises by up to one (1) year prior floor (“First Contraction Premises”) as of 11:59 A.M. on the last day of the sixtieth (60th) month subsequent to the Commencement Date (the “First Contraction Date”). The First Contraction Payment shall be paid to Landlord on the First Contraction Date. Within thirty (30) days 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 consideration 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, (and, at Landlord’s sole election, ii) the Moving Allowance (as a condition precedent to) such early terminationdefined in the Work Letter), and as an irrevocable covenant (iii) leasing commissions incurred by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination Landlord on account of this Lease), Tenant shall pay to Landlord a termination fee items (i)-(iii) being amortized at nine percent (9%) per annum compounded from the “Contraction Fee”) equal to the sum date of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenantthe First Contraction Date; plus an amount equal to four (4) month’s Broker Base Rent and Landlord’s AgentRent Adjustments applicable to the First Contraction Premises, (2) 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 Allowance, Moving Allowance, and lease commissions applicable to the First Contraction Space (i.e.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 total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area square footage of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the that portion of the Rent Abatement applicable 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 Space (i.e.Payment, Tenant shall, to the total Rent Abatement actually granted 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, divided by the aggregate rentable area Landlord to create a multi-tenant floor and demise that portion of the Premises, and multiplied by Premises remaining thereon from the rentable area balance of the floor. If Tenant exercises the First Contraction Space)Option, and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the First Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization Premises shall be computed on a straight line basis over paid through and including the period commencing on the first day First Contraction Date (in addition to Tenant’s payment of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any First Contraction Notice and the Contraction FeePenalty). Tenant shall not be entitled deliver the First Contraction Premises to exercise Landlord on or before the First Contraction Option if, at the time of Landlord’s receipt of the Contraction Notice, a monetary or material non-monetary default under this Lease shall have occurred and be continuing hereunder beyond any applicable notice and cure period provided under this Lease. Provided Tenant properly exercises (and is entitled to exercise) the Contraction Option Date in accordance with the terms of this Section 2.11, then, effective Lease in the same condition as of if the First Contraction Date, Date were the lease of the Contraction Space shall automatically terminate and be of no further force or effect, and Landlord and Tenant shall be relieved of their respective obligations under this Lease with respect to the Contraction Space, except for those obligations of either party original date set forth in this Lease with respect 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 period termination of Tenant’s tenancy right to possession of the Contraction Space through the Contraction Date and such obligations of either party which specifically survive the expiration or earlier termination of this Lease, including, without limitation, the parties’ respective indemnity obligations, Tenant’s obligation to pay all amounts owed by Tenant under this Lease with respect to the Contraction Space up to and including the Contraction Date (including, without limitation, the Contraction Fee), and refunds due to Tenant from Landlord for any overpayments of Tenant’s Proportionate Share of Operating Expenses or Taxes. The Contraction Option shall be personal to the Original Tenant or its Affiliate Assignee (and not any other assigneePremises, or any sublessee or other transferee (B) the failure of Original Tenant’s interest in this Lease)Tenant to timely exercise the First Termination Option.
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