END OF LEASE. For each Equipment Schedule, Lessor agrees that it will provide written notice to Lessee at least one hundred and twenty (120) days prior to the end of such Equipment Schedule which notifies Lessee of the upcoming end of such Equipment Schedule and requests that Lessee select one of the end of lease options in accordance with the alternatives set forth on such Equipment Schedule. Provided (i) no Event of Default has occurred and is continuing and (ii) Lessee has made all payments in accordance with the Lease, upon written notice furnished by Lessee to Lessor no later than thirty (30) days after Lessor has provided written notice of the upcoming contractual end of an Equipment Schedule, Lessee shall, with respect to each Equipment Schedule elect only such alternatives as may be set forth on the Equipment Schedule. Notwithstanding the foregoing, if Lessee for any reason fails to notify the Lessor of its end of lease selection for any given Equipment Schedule (including as a result of Lessor’s failure to provide written notice as set forth in the first sentence of this Section 13), then the parties agree that Lessee shall have been automatically deemed to have selected end of lease option (c) with respect to such Equipment Schedule to extend the Initial Term for an additional six months at a Monthly Rental equal to 35% of the Monthly Rental paid by Lessee during the Initial Term. Notwithstanding the foregoing, if the Lessor fails to provide written notice as set forth in the first sentence of this Section 13 and the end of lease election automatically defaults to option (c), then the Lessee shall have the option select another end of lease alternative if it so chooses for a period of thirty (30) days from the date on which Lessee is first notified by Lessor that the Monthly Rental has been reset to a rate of 35% of the Monthly Rental paid by Lessee during the Initial Term. To the extent that any of such alternatives involves a determination of Fair Market Value, the Fair Market Value shall be defined and determined by the provisions of this Section. For purposes hereof, Fair Market Value shall mean the amount that would obtain in a retail arm's length transaction between an informed and willing lessee-buyer in possession and an informed and willing lessor-seller. Rental charges previously paid pursuant to the applicable Equipment Schedule shall have no effect on the determination of Fair Market Value. Unless otherwise stated in the Equipment Schedule: the Fair Market Value for items set forth on the Equipment Schedule which do not have a readily ascertainable market value, (including but not limited to software, cabling and certain equipment) shall be determined by multiplying the Lessor's acquisition cost of such items by a fraction, the numerator of which shall be the Fair Market Value of the other items and the denominator of which shall be the Lessor's acquisition cost of such other items; and the determination of Fair Market Value shall be based upon the assumption that all items set forth on the Equipment Schedule or included with the Equipment may be transferred to, and used by, a third party user. In such determination, all alternative uses in the hands of each buyer or lessee, including, without limitation, the further leasing of the Equipment shall be taken into account in making such determination. If, on or before a date which is sixty (60) days prior to the expiration of the Initial Term, Lessor and Lessee are unable to agree upon a determination of the Fair Market Value of the Equipment, the Fair Market Value (to be determined in accordance with the definition set forth in this Section) shall, upon written request by Lessee therefor, be conclusively established not less than thirty (30) days prior to the expiration of the Initial Term by an independent appraiser selected by Lessor. Lessor shall notify Lessee of the name and address of said appraiser. The costs of such appraiser shall be paid by Lessee within ten (10) days after receipt of an invoice therefor. The Lease, including the obligation to pay monthly rentals, shall remain in effect pending the determination of Fair Market Value; provided, however, beginning on the day after the expiration of the Initial Term of any given Equipment Schedule, the monthly rental for such Equipment Schedule will be reduced to 35% of the Monthly Rental amount paid by Lessee during the Initial Term pursuant to the automatic election of the Lessor described in the first paragraph of this Section 13.
Appears in 1 contract
END OF LEASE. For each Equipment Schedule(a) Unless specified otherwise, Lessee must give Lessor agrees that it will provide written notice to Lessee at least one hundred and twenty (120) days prior to the end of such Equipment Schedule which notifies Lessee of the upcoming end of such Equipment Schedule and requests that Lessee select one of the end of lease options in accordance with the alternatives set forth on such Equipment Schedule. Provided (i) no Event of Default has occurred and is continuing and (ii) Lessee has made all payments in accordance with the Lease, upon written notice furnished by Lessee to Lessor no later than thirty (30) days after Lessor has provided written notice of the upcoming contractual end of an Equipment Schedule, Lessee shall, with respect to each Equipment Schedule elect only such alternatives as may be set forth date on which the Equipment Scheduleis to be returned.
(b) If Lessee, without any further written agreement or the consent of the Lessor, continues to possess or occupy the Equipment after the expiration of the initial Lease Term and/or any subsequent renewal terms of the Lease, the Lease Agreement shall be deemed month to month. Notwithstanding the foregoing, if Lessee for any reason fails Lessor declares to notify the Lessor of its end of lease selection for any given Equipment Schedule be in effect (including as a result of Lessor’s failure to provide written notice as set forth and in the first sentence absence of this Section 13such declaration at the most recent Lease Payment rate applicable to the Equipment), then the parties agree that .
(c) So long as no Default or Event of Default shall have occurred and be continuing and Lessee shall have been automatically deemed to have selected end of lease option given Lessor at least one hundred twenty (c120) with respect to such Equipment Schedule to extend the Initial Term for an additional six months at a Monthly Rental equal to 35% of the Monthly Rental paid by Lessee during the Initial Term. Notwithstanding the foregoingdays prior written notice, if the Lessor fails to provide written notice as set forth in the first sentence of this Section 13 and the end of lease election automatically defaults to option (c), then the Lessee shall have the option select another end of lease alternative if it so chooses to purchase the Equipment for a period of thirty (30) days from the date on which Lessee is first notified price agreed to by Lessor that the Monthly Rental has been reset to a rate of 35% (“Purchase Option Price”). Payment of the Monthly Rental paid Purchase Option Price, all applicable sales or use taxes, together with all other amounts due and owed by the Lessee under the Lease (including without limitation, Lease Payments) during the Initial Term. To the extent that any of such alternatives involves a determination of Fair Market Value, the Fair Market Value Lease Period Term shall be defined and determined by the provisions of this Section. For purposes hereof, Fair Market Value shall mean the amount that would obtain in a retail arm's length transaction between an informed and willing lessee-buyer in possession and an informed and willing lessor-seller. Rental charges previously paid pursuant to the applicable Equipment Schedule shall have no effect made on the determination last day of Fair Market Value. Unless otherwise stated the Lease in immediately available funds against delivery of a xxxx of sale transferring to Lessee all rights, title and interest of Lessor in the Equipment Schedule: the Fair Market Value for items set forth on the Equipment Schedule which do not have a readily ascertainable market value, (including but not limited to software, cabling and certain equipment) shall be determined by multiplying the Lessor's acquisition cost of such items by a fraction, the numerator of which shall be the Fair Market Value of the other items and the denominator of which shall be the Lessor's acquisition cost of such other items; and the determination of Fair Market Value shall be based upon the assumption that all items set forth on the Equipment Schedule or included with the Equipment may be transferred to, and used by, a third party user. In such determination, all alternative uses in the hands of each buyer or lessee, includingan "AS IS" "WHERE IS" basis, without limitationany warranties, the further leasing express or implied as defined in Section 5 of the Equipment shall be taken into account in making such determination. If, on or before a date which is sixty this Agreement.
(60d) days Lessee may terminate this Lease prior to the expiration of the Initial TermLease Term with (120) days written notice to the Lessor, Lessor subject to all terms and Lessee are unable to agree upon a determination conditions of the Fair Market Value Lease, and the Lessee will pay the following termination charges (“Termination Charges”):
i. The remaining unpaid Lease Payments for the Lease Term or the Lease renewal period per Section 7 (b) of this Lease.
ii. Tear down, removal; return delivery, repair, and disconnection of utilities, and Site restoration the Equipmentcost of which shall not exceed the Lessor’s actual cost plus 12%. Lessee shall only be obligated to pay said costs upon presentation of appropriate invoices. Lessor agrees that Lessee shall not be charged to transport the building further than 300 miles from the Site.
(e) Notwithstanding the foregoing, the Fair Market Value (to be determined in accordance with the definition set forth in Lessee may terminate this Section) shall, upon written request by Lessee therefor, be conclusively established not less than thirty (30) days Lease prior to the expiration of the Initial Lease Term by an independent appraiser selected by Lessorupon thirty day’s written notice of the intent to purchase the Equipment, which right to purchase may be assigned to a third party. The price to purchase the Equipment shall be the “Scheduled Balance” as of the date Lessee intends to purchase the Equipment (“Buyout Price”) as set forth in Exhibit X. Xxxxxx agrees that the Security Deposit and advanced lease payments, if any, shall be applied to reduce the Buyout Price. Upon payment of the Buyout Price, Lessor shall transfer all certificates of title or registration applicable to the Equipment and reflect Lessee or its assignee as the owner of the Equipment. Lessor shall notify Lessee of the name take all steps necessary to transfer title and address of said appraiser. The costs of such appraiser shall be paid by Lessee within ten (10) days after receipt of an invoice therefor. The Lease, including the obligation to pay monthly rentals, shall remain in effect pending the determination of Fair Market Value; provided, however, beginning on the day after the expiration of the Initial Term of any given Equipment Schedule, the monthly rental for such Equipment Schedule will be reduced to 35% of the Monthly Rental amount paid by Lessee during the Initial Term pursuant to the automatic election of the Lessor described all manufacturer’s warranties in the first paragraph of this Section 13Equipment to Lessee or its assignee.
Appears in 1 contract
Samples: Lease Agreement
END OF LEASE. For each Equipment ScheduleWhen the lease ends, Lessor agrees the tenant shall return the home, including furnishings, to the lessor in the same condition as when they moved in. A vacation report shall be made available to the tenant before the lease period ends. This report shall be completed when the tenant moves out. The unit is considered returned when all of the keys have been returned to the lessor and the lessor otherwise has unimpeded access to the home. If the tenant leaves the home in such a condition that the tenancy must clearly be deemed abandoned, the lessor may take control of the lease object immediately. The home, including furnishings, shall be cleared, cleaned and in otherwise good contractual and professional condition. Drill holes and other marks in walls or ceilings shall be filled and painted over to a professional standard. Provided the obligation to maintain the premises, as described in section 13 above, has been met throughout the lease period, the lessor shall accept wear and tear from regular use up to the tenant moving out. In the event changes have been made to the home that the tenant had no right to make, the lessor may demand that the home be restored to its original condition, provided this does not entail disproportionate costs or unreasonable loss of value. In cases where the lessor cannot demand that the home be restored to its original condition, the lessor may claim compensation for the loss of value such changes have caused. Fixtures, wiring, etc., which the tenant has installed or has had installed in the lease object must not be removed, unless the tenant is restoring the home to the condition it will provide written notice was in when the tenant moved in. If the home is not made available to Lessee at least one hundred and twenty (120) the lessor on the day the lease ends, the lessor may claim compensation equivalent to the agreed lease payment, until the tenant’s use of the lease object ceases. If the home is in worse condition than agreed in this contract, or as provided in section 13 above, the lessor may hold the tenant liable for necessary expenses incurred to remedy the situation. The lessor’s claim must be presented within 14 – fourteen – days prior to after the end of such Equipment Schedule which notifies Lessee of the upcoming end of such Equipment Schedule and requests that Lessee select one of lease period, however time needed to obtain quotes, bids or contracts shall be added to the end of lease options reasonable time period. This period shall, however, not apply if the tenant has been grossly negligent or has acted in accordance with bad faith. The tenant shall use the alternatives set forth appropriate form for moving out, “xxxxxxxx.xx”, under “For leietaker” [in Norwegian]. This form shall be filled out in its entirety. The form must be signed by the tenant, as well as the new tenant and/or the lessor for approval. The form must be sent to the lessor at xxxxxxxx@xxxxxxxx.xx. The deposit will not be returned to the tenant before the completed form has been sent to the lessor. The parties shall agree on such Equipment Schedule. Provided (i) no Event of Default has occurred and is continuing and (ii) Lessee has made all payments in accordance with a time for the Lease, upon written notice furnished by Lessee to Lessor joint inspection no later than thirty (30) days after Lessor has provided written notice 1 week before the tenant moves out. The inspection shall take place Monday–Friday between 09:00 and 17:00. If the tenant prefers a time outside these hours, they will incur a fee of NOK 1,000.00. If any defects are pointed out at the upcoming contractual end inspection, these shall be remedied within 1 day, regardless of an Equipment Schedule, Lessee shall, with respect to each Equipment Schedule elect only such alternatives as may be set forth whether the next day falls on a weekday or weekend. If the Equipment Schedule. Notwithstanding the foregoing, if Lessee for any reason tenant fails to notify be present for the Lessor of its end of lease selection for any given Equipment Schedule agreed time (including as a result of Lessor’s failure to provide written notice as set forth in the first sentence of this Section 13wasted trip), then the parties agree that Lessee shall have been automatically deemed to have selected end they will incur a fee of lease option (c) with respect to such Equipment Schedule to extend the Initial Term for an additional six months at a Monthly Rental equal to 35% of the Monthly Rental paid by Lessee during the Initial Term. Notwithstanding the foregoing, if the Lessor fails to provide written notice as set forth in the first sentence of this Section 13 and the end of lease election automatically defaults to option (c), then the Lessee shall have the option select another end of lease alternative if it so chooses for a period of thirty (30) days from the date on which Lessee is first notified by Lessor that the Monthly Rental has been reset to a rate of 35% of the Monthly Rental paid by Lessee during the Initial Term. To the extent that any of such alternatives involves a determination of Fair Market Value, the Fair Market Value shall be defined and determined by the provisions of this Section. For purposes hereof, Fair Market Value shall mean the amount that would obtain in a retail arm's length transaction between an informed and willing lessee-buyer in possession and an informed and willing lessor-seller. Rental charges previously paid pursuant to the applicable Equipment Schedule shall have no effect on the determination of Fair Market Value. Unless otherwise stated in the Equipment Schedule: the Fair Market Value for items set forth on the Equipment Schedule which do not have a readily ascertainable market value, (including but not limited to software, cabling and certain equipment) shall be determined by multiplying the Lessor's acquisition cost of such items by a fraction, the numerator of which shall be the Fair Market Value of the other items and the denominator of which shall be the Lessor's acquisition cost of such other items; and the determination of Fair Market Value shall be based upon the assumption that all items set forth on the Equipment Schedule or included with the Equipment may be transferred to, and used by, a third party user. In such determination, all alternative uses in the hands of each buyer or lessee, including, without limitation, the further leasing of the Equipment shall be taken into account in making such determination. If, on or before a date which is sixty (60) days prior to the expiration of the Initial Term, Lessor and Lessee are unable to agree upon a determination of the Fair Market Value of the Equipment, the Fair Market Value (to be determined in accordance with the definition set forth in this Section) shall, upon written request by Lessee therefor, be conclusively established not less than thirty (30) days prior to the expiration of the Initial Term by an independent appraiser selected by Lessor. Lessor shall notify Lessee of the name and address of said appraiser. The costs of such appraiser shall be paid by Lessee within ten (10) days after receipt of an invoice therefor. The Lease, including the obligation to pay monthly rentals, shall remain in effect pending the determination of Fair Market Value; provided, however, beginning on the day after the expiration of the Initial Term of any given Equipment Schedule, the monthly rental for such Equipment Schedule will be reduced to 35% of the Monthly Rental amount paid by Lessee during the Initial Term pursuant to the automatic election of the Lessor described in the first paragraph of this Section 13NOK 1,000.00.
Appears in 1 contract
Samples: Lease Agreement
END OF LEASE. For each Equipment Schedule(a) Unless specified otherwise, Lessee must give Lessor agrees that it will provide written notice to Lessee at least one hundred and twenty (120) days prior to the end of such Equipment Schedule which notifies Lessee of the upcoming end of such Equipment Schedule and requests that Lessee select one of the end of lease options in accordance with the alternatives set forth on such Equipment Schedule. Provided (i) no Event of Default has occurred and is continuing and (ii) Lessee has made all payments in accordance with the Lease, upon written notice furnished by Lessee to Lessor no later than thirty (30) days after Lessor has provided written notice of the upcoming contractual end of an Equipment Schedule, Lessee shall, with respect to each Equipment Schedule elect only such alternatives as may be set forth date on which the Equipment Scheduleis to be returned.
(b) If Lessee, without any further written agreement or the consent of the Lessor, continues to possess or occupy the Equipment after the expiration of the initial Lease Term and/or any subsequent renewal terms of the Lease, the Lease Agreement shall be deemed month to month. Notwithstanding the foregoing, if Lessee for any reason fails Lessor declares to notify the Lessor of its end of lease selection for any given Equipment Schedule be in effect (including as a result of Lessor’s failure to provide written notice as set forth and in the first sentence absence of this Section 13such declaration at the most recent Lease Payment rate applicable to the Equipment), then the parties agree that .
(c) So long as no Default or Event of Default shall have occurred and be continuing and Lessee shall have been automatically deemed to have selected end of lease option given Lessor at least one hundred twenty (c120) with respect to such Equipment Schedule to extend the Initial Term for an additional six months at a Monthly Rental equal to 35% of the Monthly Rental paid by Lessee during the Initial Term. Notwithstanding the foregoingdays prior written notice, if the Lessor fails to provide written notice as set forth in the first sentence of this Section 13 and the end of lease election automatically defaults to option (c), then the Lessee shall have the option select another end of lease alternative if it so chooses to purchase the Equipment for a period of thirty (30) days from the date on which Lessee is first notified price agreed to by Lessor that the Monthly Rental has been reset to a rate of 35% (“Purchase Option Price”). Payment of the Monthly Rental paid Purchase Option Price, all applicable sales or use taxes, together with all other amounts due and owed by the Lessee under the Lease (including without limitation, Lease Payments) during the Initial Term. To the extent that any of such alternatives involves a determination of Fair Market Value, the Fair Market Value Lease Period Term shall be defined and determined by the provisions of this Section. For purposes hereof, Fair Market Value shall mean the amount that would obtain in a retail arm's length transaction between an informed and willing lessee-buyer in possession and an informed and willing lessor-seller. Rental charges previously paid pursuant to the applicable Equipment Schedule shall have no effect made on the determination last day of Fair Market Value. Unless otherwise stated the Lease in immediately available funds against delivery of a bill of sale transferring to Lessee all rights, title and interest of Lessor in the Equipment Schedule: the Fair Market Value for items set forth on the Equipment Schedule which do not have a readily ascertainable market value, (including but not limited to software, cabling and certain equipment) shall be determined by multiplying the Lessor's acquisition cost of such items by a fraction, the numerator of which shall be the Fair Market Value of the other items and the denominator of which shall be the Lessor's acquisition cost of such other items; and the determination of Fair Market Value shall be based upon the assumption that all items set forth on the Equipment Schedule or included with the Equipment may be transferred to, and used by, a third party user. In such determination, all alternative uses in the hands of each buyer or lessee, includingan "AS IS" "WHERE IS" basis, without limitationany warranties, the further leasing express or implied as defined in Section 5 of the Equipment shall be taken into account in making such determination. If, on or before a date which is sixty this Agreement.
(60d) days Lessee may terminate this Lease prior to the expiration of the Initial TermLease Term with (120) days written notice to the Lessor, Lessor subject to all terms and Lessee are unable to agree upon a determination conditions of the Fair Market Value Lease, and the Lessee will pay the following termination charges (“Termination Charges”):
i. The remaining unpaid Lease Payments for the Lease Term or the Lease renewal period per Section 7 (b) of this Lease.
ii. Tear down, removal; return delivery, repair, and disconnection of utilities, and Site restoration the Equipmentcost of which shall not exceed the Lessor’s actual cost plus 12%. Lessee shall only be obligated to pay said costs upon presentation of appropriate invoices. Xxxxxx agrees that Lessee shall not be charged to transport the building further than 300 miles from the Site.
(e) Notwithstanding the foregoing, the Fair Market Value (to be determined in accordance with the definition set forth in Lessee may terminate this Section) shall, upon written request by Lessee therefor, be conclusively established not less than thirty (30) days Lease prior to the expiration of the Initial Lease Term by an independent appraiser selected by Lessorupon thirty day’s written notice of the intent to purchase the Equipment, which right to purchase may be assigned to a third party. The price to purchase the Equipment shall be the “Scheduled Balance” as of the date Lessee intends to purchase the Equipment (“Buyout Price”) as set forth in Exhibit X. Xxxxxx agrees that the Security Deposit and advanced lease payments, if any, shall be applied to reduce the Buyout Price. Upon payment of the Buyout Price, Lessor shall transfer all certificates of title or registration applicable to the Equipment and reflect Lessee or its assignee as the owner of the Equipment. Lessor shall notify Lessee of the name take all steps necessary to transfer title and address of said appraiser. The costs of such appraiser shall be paid by Lessee within ten (10) days after receipt of an invoice therefor. The Lease, including the obligation to pay monthly rentals, shall remain in effect pending the determination of Fair Market Value; provided, however, beginning on the day after the expiration of the Initial Term of any given Equipment Schedule, the monthly rental for such Equipment Schedule will be reduced to 35% of the Monthly Rental amount paid by Lessee during the Initial Term pursuant to the automatic election of the Lessor described all manufacturer’s warranties in the first paragraph of this Section 13Equipment to Lessee or its assignee.
Appears in 1 contract
Samples: Lease Agreement
END OF LEASE. For each Equipment ScheduleWhen the lease ends, Lessor agrees the tenant shall return the home, including furnishings, to the lessor in the same condition as when they moved in. A vacation report shall be made available to the tenant before the lease period ends. This report shall be completed when the tenant moves out. The unit is considered returned when all of the keys have been returned to the lessor and the lessor otherwise has unimpeded access to the home. If the tenant leaves the home in such a condition that the tenancy must clearly be deemed abandoned, the lessor may take control of the lease object immediately. The home, including furnishings, shall be cleared, cleaned and in otherwise good contractual and professional condition. Drill holes and other marks in walls or ceilings shall be filled and painted over to a professional standard. Provided the obligation to maintain the premises, as described in section 13 above, has been met throughout the lease period, the lessor shall accept wear and tear from regular use up to the tenant moving out. In the event changes have been made to the home that the tenant had no right to make, the lessor may demand that the home be restored to its original condition, provided this does not entail disproportionate costs or unreasonable loss of value. In cases where the lessor cannot demand that the home be restored to its original condition, the lessor may claim compensation for the loss of value such changes have caused. Fixtures, wiring, etc., which the tenant has installed or has had installed in the lease object must not be removed, unless the tenant is restoring the home to the condition it will provide written notice was in when the tenant moved in. If the home is not made available to Lessee at least one hundred and twenty (120) the lessor on the day the lease ends, the lessor may claim compensation equivalent to the agreed lease payment, until the tenant’s use of the lease object ceases. If the home is in worse condition than agreed in this contract, or as provided in section 13 above, the lessor may hold the tenant liable for necessary expenses incurred to remedy the situation. The lessor’s claim must be presented within 14 – fourteen – days prior to after the end of such Equipment Schedule which notifies Lessee of the upcoming end of such Equipment Schedule and requests that Lessee select one of lease period, however time needed to obtain quotes, bids or contracts shall be added to the end of lease options reasonable time period. This period shall, however, not apply if the tenant has been grossly negligent or has acted in accordance with bad faith. The tenant shall use the alternatives set forth appropriate form for moving out, “xxxxxxxx.xx”, under “For leietaker” [in Norwegian]. This form shall be filled out in its entirety. The form must be signed by the tenant, as well as the new tenant and/or the lessor for approval. The form must be sent to the lessor at xxxxxxxx@xxxxxxxx.xx. The deposit will not be returned to the tenant before the completed form has been sent to the lessor. The parties shall agree on such Equipment Schedule. Provided (i) no Event of Default has occurred and is continuing and (ii) Lessee has made all payments in accordance with a time for the Lease, upon written notice furnished by Lessee to Lessor joint inspection no later than thirty (30) days after Lessor has provided written notice 1 week before the tenant moves out. The inspection shall take place Monday–Friday between 09:00 and 17:00. If the tenant prefers a time outside these hours, they will incur a fee of NOK 1,000.00. If any defects are pointed out at the upcoming contractual end inspection, these shall be remedied within 1 day, regardless of an Equipment Schedule, Lessee shall, with respect to each Equipment Schedule elect only such alternatives as may be set forth whether the next day falls on a weekday or weekend. If the Equipment Schedule. Notwithstanding the foregoing, if Lessee for any reason tenant fails to notify be present for the Lessor of its end of lease selection for any given Equipment Schedule agreed time (including as a result of Lessor’s failure to provide written notice as set forth in the first sentence of this Section 13wasted trip), then the parties agree that Lessee shall have been automatically deemed to have selected end they will incur a fee of lease option (c) with respect to such Equipment Schedule to extend the Initial Term for an additional six months at a Monthly Rental equal to 35% of the Monthly Rental paid by Lessee during the Initial Term. Notwithstanding the foregoing, if the Lessor fails to provide written notice as set forth in the first sentence of this Section 13 and the end of lease election automatically defaults to option (c), then the Lessee shall have the option select another end of lease alternative if it so chooses for a period of thirty (30) days from the date on which Lessee is first notified by Lessor that the Monthly Rental has been reset to a rate of 35% of the Monthly Rental paid by Lessee during the Initial Term. To the extent that any of such alternatives involves a determination of Fair Market Value, the Fair Market Value shall be defined and determined by the provisions of this Section. For purposes hereof, Fair Market Value shall mean the amount that would obtain in a retail arm's length transaction between an informed and willing lessee-buyer in possession and an informed and willing lessor-seller. Rental charges previously paid pursuant to the applicable Equipment Schedule shall have no effect on the determination of Fair Market Value. Unless otherwise stated in the Equipment Schedule: the Fair Market Value for items set forth on the Equipment Schedule which do not have a readily ascertainable market value, (including but not limited to software, cabling and certain equipment) shall be determined by multiplying the Lessor's acquisition cost of such items by a fraction, the numerator of which shall be the Fair Market Value of the other items and the denominator of which shall be the Lessor's acquisition cost of such other items; and the determination of Fair Market Value shall be based upon the assumption that all items set forth on the Equipment Schedule or included with the Equipment may be transferred to, and used by, a third party user. In such determination, all alternative uses in the hands of each buyer or lessee, including, without limitation, the further leasing of the Equipment shall be taken into account in making such determination. If, on or before a date which is sixty (60) days prior to the expiration of the Initial Term, Lessor and Lessee are unable to agree upon a determination of the Fair Market Value of the Equipment, the Fair Market Value (to be determined in accordance with the definition set forth in this Section) shall, upon written request by Lessee therefor, be conclusively established not less than thirty (30) days prior to the expiration of the Initial Term by an independent appraiser selected by Lessor. Lessor shall notify Lessee of the name and address of said appraiser. The costs of such appraiser shall be paid by Lessee within ten (10) days after receipt of an invoice therefor. The Lease, including the obligation to pay monthly rentals, shall remain in effect pending the determination of Fair Market Value; provided, however, beginning on the day after the expiration of the Initial Term of any given Equipment Schedule, the monthly rental for such Equipment Schedule will be reduced to 35% of the Monthly Rental amount paid by Lessee during the Initial Term pursuant to the automatic election of the Lessor described in the first paragraph of this Section 13.NOK 1,000.00
Appears in 1 contract
Samples: Lease Agreement
