Extension Options. (a) Tenant shall have the right, at its option, to extend the term of this Lease for the Extension Period(s) upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void. (b) In the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne by
Appears in 1 contract
Samples: Lease (Carrollton Bancorp)
Extension Options. (a) Tenant Borrowers shall have the right, at its option, to extend the term of this Lease for the Extension Period(s) upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise extend the Maturity Date from the Initial Maturity Date to the First Extended Maturity Date (the “First Extension Option and if Tenant Option”) and, provided Borrower has validly exercised the First Extension Option, Borrowers shall default hereunder after such have the right has been exercised but within to extend the six Maturity Date from the First Extended Maturity Date to the Second Extended Maturity Date (6the “Second Extension Option”), in each case subject to Borrowers’ satisfaction of the following conditions:
(a) month period preceding Borrowers shall give Administrative Agent written notice of Borrowers’ request for an extension of the Maturity Date not earlier than ninety (90) days, nor later than forty-five (45) days, prior to (x) the Initial Maturity Date, with respect to the First Extension Period such election shallOption, at Landlord’s optionor (y) the First Extended Maturity Date, be null and void.with respect to the Second Extension Option;
(b) In the event that Tenant shall dispute Landlord’s determination As of the market rate date of rent being charged for similar space pursuant such notice, and as of (x) the Initial Maturity Date, with respect to the paragraph aboveFirst Extension Option, Tenant or (y) the First Extended Maturity Date, with respect to the Second Extension Option, there shall give notice exist no Default or Potential Default (provided that Borrowers shall have an opportunity to Landlord cure such Potential Default prior to such Maturity Date to the extent of applicable cure periods under this Agreement or the applicable Loan Document);
(c) At Administrative Agent’s request, Borrowers shall have caused to be issued to Lenders, at Borrowers’ sole cost and expense, appropriate endorsements to the Title Policies (but only to the extent available) which confirm the existence and priority of the Liens securing the Obligations in connection with the requested extension;
(d) There shall have been no change in the financial condition of Borrowers, or in the condition of the Properties from that which existed on the Effective Date (or with respect to a Property that became a Property hereunder after the Effective Date, from the condition of such Property on the date on which it first became a Property hereunder) which change, as determined by Administrative Agent in its reasonable discretion, has a Material Adverse Effect;
(e) The Loan-to-Value Percentage based upon new (or recently obtained) Appraisals obtained by Administrative Agent at Borrowers’ sole cost and expense and with valuation dates within ten sixty (1060) days of Tenant’s receipt of such Landlord’s determination(x) the Initial Maturity Date, and with respect to the market rate First Extension Option, or (y) the First Extended Maturity Date, with respect to the Second Extension Option, shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with not exceed the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and Maximum Applicable Loan-to-Value Percentage;
(f) Borrowers shall have provided to Administrative Agent satisfactory evidence (which evidence shall include, without limitation, a detailed current rent roll and a current historical operating statement for each Property) that the Net Operating Income from the Properties is sufficient to yield a Loan Constant which is not less than ten the Minimum Applicable Loan Constant as of (10x) year’s experience in the County where the Shopping Center is locatedInitial Maturity Date, in a calling related with respect to the leasing of commercial space in premises comparable First Extension Option, or (y) the First Extended Maturity Date, with respect to the Shopping Center. Within fifteen Second Extension Option;
(15g) days following The Net Operating Income from the appointment Properties shall be sufficient to yield a Debt Service Coverage Ratio of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other not less than the market rate submitted by Landlord or TenantMinimum DSCR as of (x) the Initial Maturity Date, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior with respect to the determination of First Extension Option, or (y) the arbitratorFirst Extended Maturity Date, Tenant with respect to the Second Extension Option; and
(h) Borrowers shall pay Minimum Rent to Administrative Agent a non-refundable extension fee in an amount equal to two tenths of one percent (0.20%) of the Landlord’s determination of market rate submitted then-current Aggregate Loan Commitment on or before (x) the Initial Maturity Date, with respect to Tenant pursuant to this Sectionthe First Extension Option, and following (y) the arbitrator’s final determinationFirst Extended Maturity Date, with respect to the Second Extension Option. Notwithstanding the foregoing, with respect to the exercise of both the First Extension Option and the Second Extension Option, Borrowers shall have the right to repay principal outstanding under the Loan in such amount of any overpayment or underpayment shall as may be adjusted between required to reduce the parties on demand. The cost of arbitration shall be borne byAggregate Loan Commitment, after giving effect to the required reduction, to an amount such that Borrowers are in compliance with subsections (e), (f) and (g) above.
Appears in 1 contract
Samples: Loan Agreement (KBS Real Estate Investment Trust II, Inc.)
Extension Options. Provided no Event of Default exists, Tenant may renew this Lease for two additional periods of five years each on the same terms provided in this Lease (except as set forth below), by delivering written notice of the exercise thereof to Landlord not later than six months before the expiration of the Term in question. On or before the commencement date of the extended Term in question, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms provided in this Lease, except as follows:
(a) The Base Rent payable for each month during each such extended Term shall be the fair market rental rate (the “Fair Market Rental Rate”) for the time period such determination is being made for space in similar buildings in the vicinity of the Building of comparable age, quality and condition for space of equivalent quality, size, utility and location, with the length of the extended Term and the credit standing of Tenant to be taken into account;
(b) Tenant shall have no further renewal options (other than those set forth herein) unless expressly granted by Landlord in writing; and
(c) Landlord shall lease to Tenant the rightPremises in their then-current condition, at its optionand Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other lessee inducements, unless any such allowances were included when determining the Fair Market Rental Rate. Within 30 days after receipt of Tenant’s written notice to extend the term of this Lease for the Extension Period(s) upon the same termsrenew, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period Landlord shall be increased deliver to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration Fair Market Rental Rate and shall advise Tenant of the then current Extension Periodrequired adjustment to Base Rent, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Optionif any, and all remaining Extension Options, to lapse the other terms and be of no further force and effectconditions offered. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at within ten business days after receipt of Landlord’s optionnotice, be null and void.
(b) In the event that notify Landlord in writing whether Tenant shall dispute accepts or rejects Landlord’s determination of the market rate Fair Market Rental Rate. If Tenant rejects Landlord’s determination of rent being charged for similar space pursuant to the paragraph aboveFair Market Rental Rate and timely notifies Landlord thereof, Tenant shall give may, in its notice to Landlord Landlord, require that the determination of the Fair Market Rental Rate be made by brokers. In such event, within ten (10) days of Tenant’s receipt of such Landlord’s determinationthereafter, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit select a report setting forth its determination qualified commercial real estate broker with at least ten years experience in appraising property and buildings in the city or submarket in which the Premises are located. The two brokers shall give their opinion of prevailing rental rates within 20 days after their retention. In the event the opinions of the market rate of two brokers differ and, after good faith efforts over the Leased Premises for succeeding 20 day period, they cannot mutually agree, the applicable term, together brokers shall immediately and jointly appoint a third broker with such other information as such party the qualifications specified above. This third broker shall deem relevant. The arbitrator shall, immediately (within thirty (30five days) days following such hearing and submission of evidence render his decision by selecting choose either the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord Landlord’s broker or Tenant, ’s broker and the decision such choice of such arbitrator this third broker shall be final and binding upon the on Landlord and Tenant. Prior to Each party shall pay its own costs for its real estate broker. Following the determination of the arbitratorFair Market Rental Rate by the brokers, the parties shall equally share the costs of any third broker. The parties shall immediately execute an amendment as set forth above. If Tenant shall pay Minimum Rent fails to timely notify Landlord in an amount equal to the writing that Tenant accepts or rejects Landlord’s determination of market rate submitted the Fair Market Rental Rate, time being of the essence with respect thereto, Tenant’s rights under this Exhibit shall terminate and Tenant shall have no right to renew this Lease. Tenant’s rights under this Section 31 shall terminate if (1) this Lease or Tenant’s right to possession of the Premises is terminated, or (2) Tenant fails to timely exercise its option under this Exhibit, time being of the essence with respect to Tenant’s exercise thereof. Tenant’s rights under this Section 31 are personal to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment may only be exercised by Tenant or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne bya Permitted Transferee.
Appears in 1 contract
Extension Options. (a) A. Tenant shall have the right, at its option, option to extend the term Term hereof for two (2) additional periods of five (5) years each (hereinafter each an “Option Period”), subject to the following terms and conditions:
(i) Tenant may exercise such option by giving Landlord Notice (“Extension Notice”) of its intent to exercise said option, such Extension Notice to be received by Landlord at least twelve (12) months prior to the expiration of the original Term of this Lease for or the then current Option Period, as applicable; and
(ii) At the time of the Extension Period(sNotice and as of the commencement of the applicable Option Period, Tenant (i) upon is not in monetary or material non-monetary Default, and (ii) has not assigned this Lease or sublet more than twenty-five percent (25%) of the same termsLeased Premises, covenants other than to a Permitted Transferee (as hereinafter defined).
B. All other terms and conditions herein set forth; provided, however, of this Lease shall remain unchanged and apply during the applicable Option Period except that the Minimum Rent for the first Lease Year of each Extension such Option Period (including any periodic increases therein) shall be increased the then-prevailing fair market value for use of the Leased Premises (as determined below) during such Option Period (“Fair Rental Value”), taking into consideration all relevant factors, including, without limitation, then-current rental rates for comparable office space in the City of Somerville, Massachusetts, then-current rates for office space in the Building and in the Project, and assuming the then as-is condition of the Leased Premises. Without limiting the foregoing, office space shall be deemed to be “comparable office space” if it is located in Class A buildings located in Somerville, Massachusetts, which are comparable to the greater Building with respect to age, size, quality and access to public transportation, retail and other amenities. If Tenant desires to get an estimate of what Landlord believes the Fair Rental Value will be, Tenant may request that Landlord give such an estimate by written notice delivered not more than eighteen (18) months prior to the commencement of the applicable Option Period, and within thirty (30) days after receipt of Tenant’s request, Landlord will provide Tenant with its good faith non-binding estimate of the Fair Rental Value for the applicable Option Period.
C. Within thirty (30) days after receipt of Tenant’s Extension Notice (but Landlord shall not be obligated to deliver Notice of Landlord’s proposed Fair Rental Value more than fifteen (15) months prior to the expiration of the original Term of this Lease or the then current Option Period), Landlord shall give Tenant Notice of the proposed Fair Rental Value and the basis therefor. The parties shall then, in good faith, endeavor to agree between themselves on the Fair Rental Value. If the parties fail to so agree on the Fair Rental Value within thirty (30) days after Landlord’s Notice of the proposed Fair Rental Value, then the Fair Rental Value shall be decided by the “broker” method as provided herein.
(i) If the market rate parties have not agreed on the Fair Rental Value within thirty (30) days after Landlord’s Notice of the proposed Fair Rental Value, Landlord and Tenant shall each send the other Notice of the broker it wishes to designate to determine the Fair Rental Value on its behalf within ten (10) business days thereafter. If either party fails to notify the other of the designation of its broker within such ten (10) business day period, and such failure continues for five (5) business days after Notice of such failure, then being charged the broker designated by the party that delivered its Notice shall be the broker to determine the Fair Rental Value for similar space in the Shopping Center or Leased Premises. Each broker (if two (2) brokers are designated hereunder) shall have fifteen (15) business days after the later date of each party’s Notice to the other hereunder to make and deliver to both parties a written determination of the Fair Rental Value.
(ii) If the Minimum Rent for two (2) brokers so appointed agree on the preceding Lease Year increased by three percent (3%). ThereafterFair Rental Value, the Minimum Rent for Fair Rental Value shall be the amount so determined.
(iii) If the two brokers so appointed do not agree on the Fair Rental Value within such fifteen (15) business day period, and if the difference between the Fair Rental Value determined by each successive Lease Year during each Extension Period broker is not more than One Dollar ($1.00) per square foot of Floor Area, the Fair Rental Value shall be an amount equal to the Minimum Rent for quotient obtained by dividing the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration sum of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six Fair Rental Values determined by each broker by two (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void2).
(biv) In If the event that Tenant two (2) brokers so appointed do not agree on the Fair Rental Value within such fifteen (15) business day period, and if the difference between the Fair Rental Value determined by each broker is more than One Dollar ($1.00) per square foot of Floor Area, the two (2) brokers shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by thereafter jointly appoint a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten third (103rd) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevantbroker. The arbitrator shall, third (3rd) broker shall make a valuation within thirty (30) days following such hearing after its appointment, and submission the Fair Rental Value shall be an amount equal to the quotient obtained by dividing the sum of evidence render his decision the two closest Fair Rental Values (calculated on an absolute dollar basis) determined among all three (3) brokers by selecting two (2).
D. Each broker appointed pursuant to Paragraph C shall be a disinterested person of recognized competence who has had a minimum of ten (10) years of experience in the determination leasing of market rate then being charged for similar office space in the Shopping Centergreater Boston market area. It is expressly understood that such arbitrator All valuations of the Fair Rental Value shall have no power or authority to select any market rate other than be in writing. Landlord and Tenant shall pay for the market rate submitted expenses of the broker each has designated and the expenses of the third (3rd) broker shall be borne one-half (1/2) by Landlord or and one-half (1/2) by Tenant, and the decision of such arbitrator . The determination made hereunder shall be final and binding upon the on both Landlord and Tenant. Prior .
E. If such option is not timely exercised, Tenant’s right to extend shall expire and the Lease shall terminate at the end of the original Term or the then current Option Period, as applicable, it being agreed that time is of the essence with respect to the determination giving of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant any exercise Notice pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne bySection 3.04.
Appears in 1 contract
Extension Options. (a) So long as this lease is in full force and effect and Tenant is not in default beyond any applicable notice and cure period in the performance of any of the covenants or terms and conditions of this lease at the time of notification to Landlord or at the time of commencement of the applicable Extension Term, as that term is hereinafter defined, Tenant shall have the rightoption (each, at its option, an “Extension Option”) to extend the term Term, at Tenant’s election, for either (a) the entire Premises or (b) a portion of the Premises consisting of a minimum of 150,000 square feet of net rentable area in the Building in full floor increments, and subject to the criteria set forth in the immediately succeeding sentence, for up to four (4) additional periods of five (5) years each (each, an “Extension Term”), on the same terms and conditions of this Lease for lease, except the Extension Period(s) upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period Base Rental shall be increased adjusted to ninety-five percent (95%) of the Prevailing Market Rate (as that term is defined in Exhibit I attached to this lease), subject to the greater following terms and conditions: Tenant shall provide Landlord with no less than eighteen (18) months written notice prior to the expiration of the initial Term or the applicable Extension Term of its desire to extend the Term and shall identify to Landlord whether or not Tenant proposes to lease all of the Premises or the portion of the Premises to be extended. If Tenant elects to renew with respect to only a portion of the Premises, the portion of the Premises to be returned to Landlord shall be in full floors in up to three (3) “blocks” of space with each “block” being at least two (2) full floors, except Tenant shall have the right to elect to not renew (and thereby exclude from the Premises) with respect to one (1) single full floor wherever located. Within fifteen (15) days after Tenant’s exercise of the applicable Extension Option, Landlord shall advise Tenant in writing of its determination of the Prevailing Market Rate, on a rentable square foot basis, as of the beginning of the then-applicable Extension Term and any escalations of said Prevailing Market Rate during the then-applicable Extension Term. Within thirty (30) days of receipt of Landlord’s applicable notice, Tenant shall advise Landlord, in writing, whether or not Tenant accepts or rejects the Prevailing Market Rate proposed by Landlord. If Tenant accepts such rate in writing, then the Base Rental rate during the applicable Extension Term shall be said rate with escalations as provided in the determination, if any. If Tenant rejects in writing the Prevailing Market Rate proposed by Landlord, Landlord and Tenant shall negotiate diligently and in good faith for a period of fifteen (15) days to reach a mutual agreement on the Prevailing Market Rate. If the parties are unable to come to an agreement within such period, Tenant shall have the option, exercisable by written notice delivered to Landlord within fifteen (15) days after the expiration of such fifteen (15) day period, to elect to either (i) the market rate then being charged for similar space in the Shopping Center arbitrate such Rate or (ii) withdraw and rescind Tenant’s notice of exercise of the Minimum Rent for applicable Extension Option and allow the preceding Lease Year increased by three percent (3%)then-current Term to expire. Thereafter, If Tenant elects to arbitrate the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension OptionPrevailing Market Rate, Tenant shall be required have the option to give specify in such notice its selection of a real estate broker, who shall act on Tenant’s behalf in determining the Prevailing Market Rate. Within fifteen (15) days after Landlord’s receipt of Tenant’s selection of a real estate broker, Landlord, by written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Leasedesignate a real estate broker, Tenant who shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at act on Landlord’s option, be null and void.
(b) In behalf in the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant Prevailing Market Rate. If the two (2) brokers are unable to agree upon the paragraph above, Tenant shall give notice to Landlord Prevailing Market Rate within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of Landlord’s broker, the two brokers shall select a third broker meeting the qualifications stated below. Within three (3) business days after such arbitrator each party third broker is appointed, the appointed third broker shall submit a report setting forth its select one of the other two brokers determinations and such third broker will notify Landlord and Tenant of such determination of the market rate of the Leased Premises for the applicable termPrevailing Market Rate, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the which determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the both Landlord and Tenant. Prior In the event that the arbitration process has not been completed prior to the determination commencement of the arbitratorapplicable Extension Term, then upon commencement of the applicable Extension Term, and until the process is completed (the “Interim Period”), Tenant shall pay Minimum Rent in an amount Landlord monthly Base Rental equal to the Landlord’s Base Rental for the immediately preceding lease year (as defined in Section 5.01(c) of this lease), until the increase or decrease in the Base Rental is determined by such process as provided herein; provided, however, that such payments made during the Interim Period shall be subject to adjustment based upon the results of such process. If, as a result of such arbitration process, it is determined that Tenant has underpaid Base Rental during the Interim Period, then such underpaid Base Rental shall be due from Tenant to Landlord within ten (10) days after expiration of the Interim Period. If, as a result of such arbitration process, it is determined that Tenant has overpaid Base Rental during the Interim Period, then such overpaid Base Rental shall be due to Tenant by Landlord within ten (10) days after expiration of the Interim Period. All brokers selected in accordance with this Special Stipulation No. 7 must be licensed in the State of Georgia as a real estate broker and shall have at least ten (10) years prior experience in commercial office leasing in the metropolitan Atlanta, Georgia area. If either Landlord or Tenant fails or refuses to select a broker, the other broker shall alone determine the Prevailing Market Rate. Landlord and Tenant agree that they shall be bound by the determination of market rate submitted to Tenant Prevailing Market Rate pursuant to this SectionSpecial Stipulation No. 7 for the applicable Extension Term. Landlord shall bear the fee and expenses of its broker and Tenant shall bear the fee and expenses of its broker. Each of the parties shall bear one-half (1/2) of the cost of the third broker’s fee. If Tenant elects to extend this lease as to only a portion of the Premises, and following then prior to the arbitrator’s final determinationcommencement of the Extension Term, Tenant shall surrender possession of the portion of the Premises for which this lease is not extended to Landlord in the condition required for surrendered premises under Section 4.01 of this lease, but subject to the limitations on such surrender obligations set forth in Section 5.01(e) of this lease. The right granted to Tenant under this Special Stipulation No. 7 is personal to Tenant, but may be exercised by any Affiliate of Tenant or any transferee through a Permitted Transfer. In the event of any other assignment of this lease or sublease by Tenant, the amount Extension Options granted to Tenant herein shall thenceforth be void and of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne byno further force and effect.
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Extension Options. (a) Tenant is hereby granted options to extend the Lease Term for two (2) successive additional periods of three (3) years each (each such additional period being herein referred to as an "Extended Term") by giving written notice of such extension to Landlord at least twelve (12) months prior to the expiration of the initial Lease Term or the then current Extended Term, as the case may be. Tenant shall have the right, at its option, right to exercise these options to extend provided that on the term date of such exercise no default or event of default under this Lease for the Extension Period(s) then exists. Each Extended Term shall be upon all of the same terms, covenants and conditions herein set forth; provided, however, of this Lease then applicable except that the Minimum Rent Base Rental Rate during the Extended Terms shall be the "Market Rate" (as hereinafter defined), and except that after the exercise of the option for the first Extended Term, Tenant shall have only one (1) option to extend, and after the exercise of the option for the second Extended Term, Tenant shall have no further options to extend the Lease Year Term. The term "Lease Term" as used in this Lease shall mean the initial Lease Term and any Extended Term which may become effective. For purposes of each Extension Period this Special Stipulation, "Market Rate" shall be increased to mean the greater annual effective rental rate per square foot of (i) the market rate rentable floor area then being charged for similar by landlords under new leases of office space in that portion of the Shopping Center or (ii) metropolitan Richmond, Virginia market that is located south of the Minimum Rent Xxxxx ------------------ River and west of I-95 for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal space similar to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annumDemised Premises in a building of comparable quality and with comparable parking and other amenities. In order to exercise determining the Extension OptionMarket Rate, Landlord and Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Furtherany appraisers, if Tenant applicable) shall be in default of take into account the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event fact that Tenant shall dispute Landlord’s determination pay Tenant's share of the market rate of rent being charged for similar space pursuant to Operating Expenses. Also, in determining the paragraph aboveMarket Rental Rate, Landlord and Tenant (and any appraisers, if applicable) shall give notice to Landlord within ten compare actual rental rates only (10after making appropriate adjustments resulting from the foregoing facts) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is locatedtake into consideration any discounts, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable termallowances, together with such free rent, remodeling credits, construction allowances and other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing concessions and submission of evidence render his decision inducements granted by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne bylandlords.
Appears in 1 contract
Samples: Lease Agreement (Wells Real Estate Investment Trust Inc)
Extension Options. Subject to Sections 34B, C and D below, the Term of this Lease may be extended, at the option of Tenant, for three additional periods of five (a5) years (each a "Renewal Term"). Any such Renewal Term shall be upon the same terms contained in this Lease, excluding the provisions of Section 32 and Appendix D of this Lease and except for the amount of Base Rent payable during such Renewal Term, and any reference in the Lease to the "Term" of this Lease shall be deemed to include such Renewal Term and apply thereto, unless it is expressly provided otherwise. Tenant shall have no extension options beyond the right, at its option, to extend the term aforesaid options. Any termination of this Lease during the initial Term of this Lease or any Renewal Term shall terminate all further rights under this Section 34.
A. The initial Base Rent during any Renewal Term for any space then constituting a portion of the Extension Period(s) upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period Premises shall be increased at a rate equal to the greater Market Renewal Rate. Tenant's obligation to pay Operating Cost Share Rent and Tax Share Rent pursuant to Section 2A of this Lease shall continue during each Renewal Term.
B. Such option to extend shall be exercised by Tenant delivering an initial non-binding written notice to Landlord not less than twelve (12) full calendar months prior to the expiration of the initial Term or current Renewal Term, as applicable, of this Lease. Thereafter, both parties shall calculate their good faith estimate of the Market Renewal Rate and notify the other of such determination not less than 11 calendar months prior to the expiration of the Term or current Renewal Term, as applicable, and then the terms of Section 33 above shall apply as to the procedure for determining the Market Renewal Rate.
C. Tenant's right to exercise its options to extend this Lease pursuant to this Section 33, is subject to the following conditions: (i) that on the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, date that Tenant shall be required to give delivers its final binding written notice of its intention election to extend at least six (6) months but exercise the subject option to extend, Tenant is not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default under any of the terms of this Lease, after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, and (ii) if applicable, Tenant has exercised its extension option for the prior Renewal Term or Renewal Terms, as the case may be.
D. If Tenant fails to give its initial non-binding written notice of intent or its final binding written notice of intent to exercise its options to extend when due as provided in this Section 34, Tenant will be deemed to have waived such option to extend.
E. For purposes of this Lease, the following terms shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne bymeanings:
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Extension Options. (a) Provided no Event of Default then exists, Tenant shall have the right, at its option, right and option to extend this Lease for two (2) consecutive periods of five (5) years each (each a “Renewal Term”) under the same terms and conditions as stated in this Lease (each an “Extension Option”) by delivering written notice of the exercise thereof to Landlord between fifteen (15) months and nine (9) months before the expiration of the then current term of this Lease. Promptly after the Market Rental Rate (as defined below) has been established, Landlord and Tenant shall execute an amendment to this Lease extending the term of this Lease on the same terms provided in this Lease, except as follows:
(a) The Base Rent payable for each month during each such Renewal Term shall be determined utilizing the Market Rental Rate; (b) Tenant shall have no further renewal options unless expressly provided for pursuant to this Section 3 or granted by Landlord in writing; (c) Landlord shall lease to Tenant the Premises in its then-current condition, and Landlord shall only provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other tenant inducements that are generally available to tenants renewing leases of space comparable to this Lease (the amount of the Market Rental Rate shall reflect the provision of any such market allowances or other tenant inducements) unless Tenant elects in its renewal notice to lease the Premises for the Extension Period(sapplicable Renewal Term without the benefit of any such market allowances and/or inducements (in which case the Market Rental Rate shall reflect the same); and (d) upon the same terms, covenants Cam Base Year and conditions herein set forth; provided, however, that the Minimum Rent for Tax Base Year shall each be modified to become the first Lease Year calendar year of each Extension Period the applicable Renewal Term and rental obligations relative to Operating Expenses and Taxes shall be increased adjusted accordingly. The term “Market Rental Rate” will mean the arms-length fair market annual rental rate per rentable square foot that Landlord and owners of Comparable Properties (as defined in Section 4(A)(2) above) are, on or about the date on which the Market Rental Rate is being determined, charging for space comparable to the greater Premises. The determination of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period Market Rental Rate shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of take into account any material economic differences between the terms of this Lease and any comparison lease, such as rent abatements, construction costs and other concessions and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses, taxes and electrical expenses. The determination of Market Rental Rate shall also take into consideration (1) any reasonably anticipated changes in the Market Rental Rate from the time such rate is being determined and the time such rate will become effective under this Lease, Tenant shall not have (2) the right to exercise location, quality and age of the Extension Option building, (3) floor level on which space is located, (4) any rental abatement, lease takeovers and/or assumptions, moving expenses and if Tenant shall default hereunder after such right has been exercised but within other concessions, (5) the six term of the lease or renewal thereof, (6) month period preceding the Extension Period such election shallextent of the services to be provided, at (7) the distinction between a “gross” and a “net” lease, (8) the base year or estimated basic cost per square foot for escalation purposes (including operating costs, insurance and ad valorem taxes), (9) the time the particular rental rate under consideration became or is to become effective, and (10) any other relevant term or condition. Landlord shall provide Tenant with Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s good faith determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises Market Rental Rate for the applicable term, together with such other information as such party Renewal Term not later than thirty (30) days after Tenant exercises the applicable Extension Option. Tenant shall deem relevant. The arbitrator shallelect, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space thereafter, in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority a writing delivered to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the either (i) accept Landlord’s determination of market rate submitted such Market Rental Rate (in which case the Lease shall be deemed renewed for the applicable Renewal Term at such rate), or (ii) reject the same in which case the Market Rental Rate for the applicable Renewal Term will be determined in accordance with the process identified below in this Section 3. Failure by Tenant to Tenant pursuant provide such election within such 30-day time period shall constitute Tenant’s election under clause (ii) of the preceding sentence. The option herein granted shall be deemed to this Sectionbe personal to Tenant, and following if Tenant subleases the arbitratorentire Premises or otherwise assigns or transfers any interest thereof to another party such option shall lapse, unless such assignment, sublease or transfer was (x) a Permitted Transfer, or (y) at the time of Tenant’s final determinationexercise of an Extension Option the total aggregate amount of space subleased (or transferred) is less than half of the entire area of the Premises. If Tenant rejects or is deemed to have rejected Landlord’s determination of the Market Rental Rate for the applicable Renewal Term, then Landlord and Tenant shall meet in an effort to negotiate, in good faith, the amount Market Rental Rate applicable to the Premises. If Landlord and Tenant have not agreed upon the Market Rental Rate applicable to the Premises within five (5) days, then Landlord and Tenant shall attempt to agree, in good faith, upon a single broker not later than fifteen (15) business days thereafter who shall determine the Market Rental Rate for the Premises. If Landlord and Tenant are unable to agree upon a single broker within such time period, then Landlord and Tenant shall each appoint one broker not later than twenty (20) business days thereafter. Not later than ten (10) business days after the appointment of any overpayment the second broker, the two appointed brokers shall appoint a third broker. If either Landlord or underpayment Tenant fails to appoint a broker within the prescribed time period, the single broker appointed shall determine the Market Rental Rate. If both parties fail to appoint brokers within the prescribed time periods, then the first broker thereafter selected by a party shall determine the Market Rental Rate. If a single broker is chosen, then such broker shall determine the Market Rental Rate applicable to the Premises. Otherwise, the Market Rental Rate shall be adjusted between the arithmetic average of two (2) of the three (3) determinations which are the closest in amount, and the third determination shall be disregarded. Landlord and Tenant shall instruct the brokers to complete their determination of the Market Rental Rate not later than fifteen (15) business days after the appointment of the final broker. Each party shall bear the costs of its own broker, and the parties on demand. The shall share equally the cost of arbitration the single or third broker if applicable. Each broker shall have at least ten (10) years’ experience in the leasing of Comparable Properties and shall be borne bya licensed real estate broker.
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Extension Options. Provided that as of the date of the notice specified below, Tenant is not in default in the payment or performance of its obligations under this Lease after receiving any notice required under this Lease and beyond any applicable grace periods, and has not previously been in monetary default of its obligations under this Lease beyond any applicable grace period during the two (a2) years prior to the date of such notice, Tenant shall have the right, at its option, right to extend the term of this Lease for the Extension Period(sone or both of two additional periods of five (5) years each, each such period to begin immediately upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Periodterm (the "Extended Term" or the "Extended Terms"). All of the terms, covenants and provisions of this Lease shall apply to each such Extended Term except that (i) Base Operating Costs and Base Taxes shall be adjusted to reflect a current base year for Operating Costs and Taxes, and (ii) the Annual Fixed Rent Rate for each such Extended Term shall be the market rate at the commencement of each of the Extended Terms. The "market rate" shall be the annual fair market rental rate during the Extended Term, for leases, on terms and conditions (other than Fixed Rent but including any such adjusted Base Operating Costs and Base Taxes) comparable to this Lease, for a term of five years, for space of similar size to the Premises (but not in no event less than 10,000 square feet) and of an age, quality, condition, amenities and location comparable to the Premises and the Building in the Woburn market area. If Tenant shall elect to exercise either or both of the aforesaid options, it shall do so by giving Landlord notice in writing of its intention to do so not later than 12 months prior to the expiration of the then current term, as the case may be. Failure to deliver timely notice as required above shall cause If Tenant gives such notice, the Extension Option, and all remaining Extension Options, to lapse and be extension of no further force and effect. Further, if Tenant this Lease shall be in default automatically effected without the execution of any additional documents. The original term and the terms Extended Terms are hereinafter collectively called the "term". Within fifteen (15) days following receipt of this Leasesuch notice by Xxxxxx, Landlord shall give notice to Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at setting forth Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s 's determination of the market rate for the Extended Term in question. Within fifteen (15) days following receipt of rent being charged Landlord's notice Tenant shall either propose its determination of the market rate by giving notice thereof to Landlord or shall accept Landlord's determination. Failure on the part of Tenant to give such notice of its determination shall bind Tenant to Landlord's determination. If Tenant proposes its determination of the market rate, then Landlord and Tenant shall meet for similar space pursuant the purpose of reaching agreement. If the parties have been unable to reach agreement within fifteen (15) days following Xxxxxx's notice to Landlord of its determination, then Tenant's exercise shall be deemed revoked and its exercise of the paragraph aboveaforesaid option shall be rendered ineffective unless, within fifteen (15) days thereafter, Tenant shall give call for arbitration by written notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination. If the Tenant calls for arbitration, and then the market rate shall be determined submitted to arbitration as follows: The market rate shall be determined by impartial arbitrators, one to be chosen and paid for by the Landlord, one to be chosen and paid for by Xxxxxx, and a single arbitrator appointed in accordance with third to be selected, if necessary, as below provided. The unanimous written decision of the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be impartial conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall have not less than each notify the other of its chosen arbitrator within ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of call for arbitration and, unless such arbitrator each party two arbitrators shall submit have reached a report setting forth its determination unanimous decision within thirty (30) days after their designation, they shall so notify the then President of the market rate Boston Bar Association and request him to select an impartial third arbitrator. All such arbitrators shall be brokers or appraisers with at least ten years of experience in appraising or valuing properties of the Leased Premises for general location, type and character as the applicable term, together with such other information as such party Property who is either a Senior Real Property Appraiser of the Society of Real Estate Appraisers or a member of the Appraisal Institute (or any successor organization). Such third arbitrator and the first two chosen shall deem relevant. The arbitrator shall, hear the parties and their evidence and render their decision within thirty (30) days following such hearing the appointment of the third arbitrator and submission notify Landlord and Tenant thereof. Landlord and Tenant shall share equally the expense of evidence render his decision by selecting the determination of third arbitrator (if any). If the dispute between the parties as to a market rate has not been resolved before the commencement of the Extended Term, then being charged for similar space Tenant shall pay Fixed Rent under the Lease based upon the rate then in effect at the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority expiration of the then current term until either the agreement of the parties as to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to arbitrators, as the determination of the arbitratorcase may be, at which time Tenant shall pay Minimum any underpayment of Fixed Rent in an amount equal to the Landlord’s determination , or Landlord shall refund any overpayment of market rate submitted Fixed Rent to Tenant pursuant to this Section, and following the arbitrator’s final determinationTenant. In any event, the amount of any overpayment or underpayment Annual Fixed Rent Rate for the Extended Terms shall not be adjusted between less than the parties on demand. The cost of arbitration shall be borne byAnnual Fixed Rent Rate in effect immediately prior to each such Extended Term.
Appears in 1 contract
Samples: Lease (Oak Technology Inc)
Extension Options. (a) So long as no Default exists, Tenant shall have the right, at its option, options to renew and extend the term of this Lease Term for the Extension Period(sfour (4) successive five (5) year periods ("Option Terms") upon the same terms, covenants terms and conditions as are provided herein set forth; provided, however, that the Minimum Rent for the first Lease Year initial Term (the "Initial Term"), subject, however to the redetermination of Monthly Base Rent hereinafter provided. The option for each Extension Period such Option Term shall be increased to exercised by the greater giving of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend exercise during, and at least six (6) months but not more than nine (9) months 150 days prior to the Lease Termination Dateexpiration of, the prior Option Term or expiration of the then current Extension Period, Initial Term (as the case may be). Failure The monthly Base Rent shall be redetermined effective as of the beginning of each Option Period at a level equal to deliver timely notice as required above shall cause 95% of the Extension Optionthen current market rate for the rental in the general area in which the Premises are located for comparable warehouse/distribution facilities leased under comparably structured leases (but excluding any rental value attributable to the Tenant Improvements paid for by Tenant and not reimbursed by Landlord). After an exercise by Tenant of an option to renew this Lease for a new Option Term, Landlord and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default use their best efforts to agree, at least 120 days prior to the commencement of such Option Term on the terms new Base Rent. In the absence of this Leasesuch an agreement by such date, then within twenty (20) days after such date, Landlord and Tenant shall not have each appoint an appraiser, the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination two of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by which will appoint a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, third appraiser within thirty (30) days following such hearing after the date of their appointment. Each appraiser shall have a minimum of five years' professional experience in appraising comparable property in the area in which the Property is located. Independently, each of the three appraisers will render an opinion as to the market rental and submission the two appraisers opinions which are closets in value will be averaged to determine the market rental rate on which the new monthly Base Rent of evidence render his decision by selecting the determination 95% of market rate then being charged rent will be based. Such opinions shall be rendered within sixty (60) days after the date the third of such three appraisers is appointed. In no event shall the monthly Base Rent so established be less, however, than the monthly Base Rent in effect at the conclusion of the prior Option Term or Initial Term (as the case may be). Landlord and Tenant will each pay for similar space the cost of their respective appraiser and one-half the cost of the third appraiser. Notwithstanding the foregoing, in the Shopping Center. It is expressly understood that event either party fails to timely appoint an appraiser in accordance with the foregoing, the other party shall notify such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision party in writing of such arbitrator shall be final party's failure and binding upon the Landlord and Tenant. Prior that, if such party fails to make an appointment within five (5) days after such notice, the determination of the arbitratorappraiser timely appointed shall control. If the party which receives such notice fails to make an appointment within such five (5) day period, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Sectionthe appraiser timely appointed shall control. The initial monthly Base Rent for each Option Term, as so determined, will be increased effective on the twenty-fifth (25th) and following forty-ninth (49th) months of such Option Term by ninety-five percent (95%) of the arbitrator’s final determinationchange in the Consumer Price Index (Los Angeles, the amount of any overpayment or underpayment shall be adjusted Long Beach, Santa Ana - 0985 = 100) between the parties on demand. The cost first (1st) and twenty-fourth (24th) and twenty-fifth (25th) and forty-eighth (48th) months, respectively, of arbitration each Option Term, provided that in no event shall any such increase in the monthly Base Rent be borne byless than six percent (6%), or more than twelve percent (12%).
Appears in 1 contract
Extension Options. Tenant shall have two options to extend the Term of this Lease (aeach, an “Extension Option”) for a period of five (5) years (each, an “Option Period”). Each Option Period shall be upon the same terms and conditions contained in this Lease, except for the Base Rent, which shall be the then-current Fair Market Rent for the Premises determined in accordance with the procedures set forth below. Notwithstanding anything to the contrary in the preceding sentence, Tenant shall have the right, at its option, right to extend the term of exercise an Extension Option only so long as (i) this Lease shall be in full force and effect, (ii) Tenant shall not have assigned this Lease or sublet more than twenty percent (20%) of the Premises, and (iii) no Event of Default shall have occurred and be continuing as of either the date Tenant purports to exercise the Extension Option or the first day of the Option Period. Tenant shall exercise an Extension Option by giving Landlord written notice of its election to do so not less than twelve (12) months prior to the end of the Term, time being of the essence, and, upon the giving of such notice, the Term shall be deemed to be extended for the Option Period without the execution of any further lease or instrument.
(i) As used in this Section 3, “Fair Market Rent” shall mean the amount of annual Base Rent, expressed in dollars and cents per rentable square foot, equal to the market rental then being negotiated for renewal leases for comparable space in “Class A” mid-rise office buildings of similar quality in the suburban Wilmington, Delaware office sub-market, taking into account any rent abatement, tenant allowance and base year being offered to renewal tenants. Landlord shall advise Tenant of the Fair Market Rent within thirty (30) days after Tenant provides Landlord with notice of Tenant's intent to exercise an Extension Period(sOption. In the event that Landlord and Tenant are unable to agree on the Fair Market Rent for the Option Period within ten (10) upon days after Tenant’s receipt of Landlord’s rental notice, then either party may require determination of the Fair Market Rent for such Option Period by giving written notice to that effect to the other party within ten (10) days thereafter, which notice shall designate a real estate broker selected by the initiating party with at least ten (10) years experience in the office leasing business in the suburban Wilmington, Delaware office sub-market. Within ten (10) days after receipt of such notice, the other party to the Lease shall select a real estate broker meeting the same termsrequirements and give written notice of such selection to the initiating party. Within ten (10) days after selection of the second broker, covenants the two (2) real estate brokers so selected shall select a third real estate broker with at least ten (10) years experience in the office leasing business in the suburban Wilmington, Delaware office sub-market who (and conditions herein set forthwhose firm) is not then employed as an exclusive leasing broker or management agent by either party or any of their respective affiliates. Each of the three (3) brokers shall determine the Fair Market Rent rate for the Premises as of the commencement of the Option Period for a term equal to the Option Period within ten (10) days after the appointment of the third broker. The Fair Market Rent shall be equal to the arithmetic average of such three determinations; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three if any such broker’s determination deviates more than ten percent (310%). Thereafter, ) from the Minimum median of such determinations the Fair Market Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for average of the last preceding Lease Yeartwo (2) closest determinations. Landlord shall pay the costs and fees of Landlord’s broker in connection with any determination hereunder, increased by three percent (3%) per annum. In order to exercise the Extension Option, and Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to pay the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, costs and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days fees of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed broker in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together connection with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost and fees of arbitration the third broker shall be borne bypaid one-half by Landlord and one-half by Tenant. If a party fails to designate a real estate broker within the time period required by this paragraph, the “third” real estate broker shall be selected by the broker designated by the initiating party, and those two brokers shall determine the Fair Market Rental by averaging their determinations.
Appears in 1 contract
Samples: Lease Agreement (InterDigital, Inc.)
Extension Options. (a) Tenant County shall have the rightright to extend the Initial Term of this Lease (the “Extension Option“) for the additional term(s) specified in the Basic Lease Information (the “Extended Term“). Such Extension Option(s) shall be on all of the terms and conditions contained in this Lease except that the rent for the Extended Term shall be fair market rent on the date of exercise of the Option(s) (but not less than the Base Rent payable at the end of the Initial Term. County, at its optionsole discretion, may exercise the Extension Option(s), if at all, by giving written notice to extend Landlord no earlier than 360 days or later than 270 days prior to expiration of the term of this Lease for the Extension Period(s) upon the same terms, covenants and conditions herein set forthto be extended; provided, however, that if County is in material default under this Lease on the Minimum date of giving such notice and fails to cure such default as set forth in Section 15.1, Landlord may reject such exercise by delivering written notice thereof to County promptly after such failure to cure. At the commencement of the Extended Term, the Base Rent shall be adjusted to equal the prevailing market rate for space of comparable size and location to the Premises then being offered for rent in other buildings similar in age, location and quality to the Premises situated within the Downtown Redwood City area (“Reference Area”); provided, however, in no event shall the Base Rent be reduced below the Base Rent for the first Lease Year lease year prior to commencement of each Extension Period such Extended Term. As used herein, the term “prevailing market rate” shall be increased to mean the greater of base rental for such comparable space, taking into account (i) the market rate then being charged for similar space in the Shopping Center or any additional rental and all other payments and escalations payable hereunder, (ii) floor location and size of the Minimum Rent for premises covered by leases of such comparable space, (iii) the preceding Lease Year increased by three percent duration of the renewal term and the term of such comparable leases, (3%)iv) free rent given under such comparable leases and any other tenant concessions, and (v) building standard tenant improvement allowances and other allowances given under such comparable leases. ThereafterIf County disputes Landlord’s determination of the prevailing market rate, County shall so notify Landlord within fourteen (14) days following Landlord’s notice to County of the Minimum Rent for each successive Lease Year during each Extension Period prevailing market rate and such dispute shall be an amount equal resolved as follows:
(a) Within thirty (30) days following Landlord’s notice to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration County of the then current Extension Periodprevailing market rate, as the case may be. Failure Landlord and County shall attempt in good faith to deliver timely notice as required above shall cause the Extension Optionmeet no less than two (2) times, at a mutually agreeable time and all remaining Extension Optionsplace, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right attempt to exercise the Extension Option and if Tenant shall default hereunder after resolve any such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and voiddisagreement.
(b) In If within this thirty (30) day period Landlord and County cannot reach agreement as to the event that Tenant prevailing market rate, they shall dispute Landlord’s each select one appraiser or commercial real estate broker to determine the prevailing market rate. Each such appraiser shall arrive at a determination of the prevailing market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice and submit his or her conclusions to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following of the expiration of the thirty (30) day consultation period described in (a) above.
(c) If only one appraisal is submitted within the requisite time period, it shall be deemed to be the prevailing market rate. If both appraisals are submitted within such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenanttime period, and if the decision two appraisals so submitted differ by less than ten percent (10%) of such arbitrator the higher of the two, then the average of the two shall be final and binding upon the Landlord and Tenantprevailing market rate. Prior to If the two appraisals differ by more than ten percent (10%) of the higher of the two, then the two appraisers shall immediately select a third appraiser who will within thirty (30) days of his or her selection make a determination of the arbitratorprevailing market rate and submit such determination to Landlord and County. This third appraisal will then be averaged with the closer of the two previous appraisals and the result shall be the prevailing market rate.
(d) If County’s County Manager or designee does not approve of the prevailing market rate as determined by the appraisal procedure specified above, Tenant the County Manager shall revoke the exercise of the Extension Option by County.
(e) All appraisers specified herein shall be members of the American Institute of Real Estate Appraisers (MAI) with not less than five (5) years’ experience appraising leases of commercial properties similar to the Premises in the San Mateo County area. Landlord and County shall pay Minimum Rent in an amount equal to the Landlord’s determination cost of market rate submitted to Tenant pursuant to this Section, the appraiser selected by such party and following one-half of the arbitrator’s final determination, cost of the amount third appraiser plus one-half of any overpayment or underpayment shall be adjusted between other costs incurred in the parties on demand. The cost of arbitration shall be borne byarbitration.
Appears in 1 contract
Samples: Office Lease
Extension Options. (a) Tenant shall have the righttwo options (each, at its option, an "Extension Option") to extend the term of this Lease for further the Extension Period(sTerm for all of the Premises as of the then expiration date of the Extension Term, for two (2) additional periods of five (5) years each (each, an "Option Term") upon the same terms, covenants following terms and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, conditions:
A. Tenant shall be required to give gives Landlord written notice of its intention to extend exercise of said Extension Option at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or then expiration of the Extension Term.
B. No Event of Default is then current Extension Period, as continuing either on the case may be. Failure date Tenant delivers the notice required under Section 4A above or at any time thereafter prior to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be commencement of no further force and effect. Further, if Tenant shall be in default the Option Term.
C. All of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination provisions of the market rate of rent being charged for similar space pursuant Lease (except this Section 4) shall be applicable to the paragraph aboveOption Term, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and except that Base Rent for the market rate Option Term shall be determined as follows: The market rate Base Rent for the Option Term shall be equal to Landlord's determination of the Fair Value (as hereinafter defined). For purposes of this Amendment, "Fair Value" shall mean Landlord's determination, utilizing its reasonable judgment, of an annual amount per rentable square foot for a term equivalent to the period for which Fair Value is being determined by a single arbitrator appointed in accordance beginning with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial first (1/st/) day of the subject period that a willing, creditworthy, new non-equity tenant leasing comparable space to Tenant's would pay and shall have not less than ten (10) year’s experience in the County where the Shopping Center is locateda willing, in a calling related to the leasing comparable landlord of commercial space in premises an industrial building comparable to the Shopping CenterBuilding in the Chicago metropolitan area (hereinafter referred to as the "Market") would accept at arm's length, giving appropriate consideration to terms of the Lease, as amended hereby, annual rental rate per rentable square foot, rental escalations (including type, base year and stops), length of lease term, size and location of the premises being leased, and other generally applicable terms and conditions prevailing for comparable space in comparable buildings located in the Market. Within fifteen (15) days following In the appointment of such arbitrator each party shall submit a report setting forth its event that Tenant does not agree in writing to Landlord's determination of Fair Value prior to the market rate date which is seven (7) months prior to the then expiration of the Leased Premises Extension Term ("Option Expiration Date"), then Tenant's exercise of the Extension Option shall be deemed null and void and this Section 4 shall be deemed null and void unless Tenant, prior to the Option Expiration Date, notifies Landlord in writing that Tenant will agree that Base Rent for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator Option Term shall be final and binding upon the Landlord and Tenant. Prior to the determination One Hundred Two percent (102%) of the arbitrator, Tenant Base Rent for the last year of the then Extension Term and shall pay Minimum Rent in an amount equal to increase by two percent (2%) each July 1 thereafter during the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne byOption Term.
Appears in 1 contract
Samples: Lease (Radnor Holdings Corp)
Extension Options. Provided that (a) there has been no Event of Default on the part of Tenant which is uncured and continuing, other than any which have been waived by Landlord, and (b) Tenant is as of the date of the exercise and as of the commencement date of any Extension Term (as hereinafter defined) itself (including all entities for which Landlord's consent to assignment or sublease is not required under Section 6.8) in occupancy of at least fifty-one percent (51%) of the Premises, but in no event less than the rentable square footage equal to ________ of the Original Premises, Tenant shall have the right, at its option, right to extend the term Term hereof for two (2) successive periods of this Lease for the five (5) years each (each an "Extension Period(s) upon the same termsTerm"), covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention such options to extend to be exercised by the giving of notice by Tenant to Landlord at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Term. Upon the giving of such notice, this Lease and the Term hereof shall be extended, for an additional term of five (5) years, without the necessity for the execution of any additional documents. In no event shall the Term hereof be extended for more than five (5) years after the expiration of the Initial Term with respect to the first Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension OptionTerm, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default five (5) years after the expiration of the terms of this Leasefirst Extension Term with respect to the second Extension Term, nor shall Tenant shall not have the right to exercise succeeding extension options unless it has exercised the extension option next preceding the extension option being currently exercised by Tenant. The Extension Term shall be upon all the terms, conditions and provisions of this Lease, except, that the increase in the Annual Fixed Rent during the Extension Option Term shall be calculated in the following manner: Landlord shall compare the Consumer Price Index, which is published for the calendar month most immediately preceding the date the relevant Extension Term commences (the "Extension Index"), with the Consumer Price Index published for the calendar month most immediately preceding the date the Initial Term commenced (the "Beginning Index"). If, at the time the Annual Fixed Rent payable with respect to the relevant Extension Term is established, the Extension Index has increased over the Beginning Index, then the Annual Fixed Rent payable during each Extension Term shall be set by multiplying rentable square foot by a fraction, the numerator of which is the Extension Index and if Tenant shall default hereunder after such right the denominator of which is the Beginning Index. After the Annual Fixed Rent for the relevant Extension Term has been exercised but within the six (6) month period preceding the Extension Period such election shalldetermined, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant Landlord shall give Tenant notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of Annual Fixed Rent for such Extension Term. Notwithstanding the foregoing, however, in no event whatsoever shall Annual Fixed Rent payable during any overpayment or underpayment shall Extension Term be adjusted between less than Annual Fixed Rent payable during the parties on demand. The cost last five (5) years of arbitration shall be borne bythe Initial Term.
Appears in 1 contract
Samples: Sublease (Viacell Inc)
Extension Options. Provided no Event of Default exists, Tenant may renew this Lease for three (3) additional periods of five (5) years each on the same terms provided in this Lease (except as set forth below), by delivering written notice of the exercise thereof to Landlord not later than eighteen (18) months before the expiration of the Term in question. On or before the commencement date of the extended Term in question, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms provided in this Lease, except as follows:
(a) The Base Rent payable for each month during each such extended Term shall be the fair market rental rate (the "Fair Market Rental Rate") for the Premises, taking into consideration all relevant factors for comparable leases in comparable premises, including, without limitation, the term, rent, rental concessions, allowances, and commissions payable with respect to such leases; the condition, age, quality, location, utility, efficiency and size of such comparable premises; and the credit standing of the tenants under such comparable leases;
(b) Tenant shall have no further renewal options (other than those set forth herein) unless expressly granted by Landlord in writing; and
(c) Landlord shall lease to Tenant the rightPremises in their then-current condition, at its optionand Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other lessee inducements, unless any such allowances were included when determining the Fair Market Rental Rate. Within 30 days after receipt of Tenant's written notice to extend the term of this Lease for the Extension Period(s) upon the same termsrenew, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period Landlord shall be increased deliver to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of the Fair Market Rental Rate and shall advise Tenant of the required adjustment to Base Rent, if any, and the other terms and conditions offered. Tenant shall, within ten business days after receipt of Landlord's notice, notify Landlord in writing whether Tenant accepts or rejects Landlord's determination of the Fair Market Rental Rate. If Tenant rejects Landlord's determination of the Fair Market Rental Rate and timely notifies Landlord thereof, Tenant may, in its intention notice to extend Landlord, require that the determination of the Fair Market Rental Rate be made by brokers. In such event, within ten days thereafter, each party shall select a qualified commercial real estate broker with at least six (6) months but not more than nine (9) months prior to ten years experience in appraising property and buildings in the Lease Termination Datecity or submarket in which the Premises are located, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant which broker shall not have been engaged by such party for any matter during the right to exercise the Extension Option and if Tenant prior three years. The two brokers shall default hereunder give their opinion of prevailing rental rates within 20 days after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) their retention. In the event that Tenant shall dispute Landlord’s determination the opinions of the market rate of rent being charged for similar space pursuant to two brokers differ and, after good faith efforts over the paragraph abovesucceeding 20 day period, Tenant they cannot mutually agree, the brokers shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, immediately and the market rate shall be determined as follows: The market rate shall be determined by jointly appoint a single arbitrator appointed in accordance third broker with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rulesqualifications specified above. Such arbitrator This third broker shall be impartial and shall have not less than ten promptly (10within five days) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting choose either the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord Landlord's broker or Tenant, 's broker and the decision such choice of such arbitrator this third broker shall be final and binding upon the on Landlord and Tenant. Prior to Each party shall pay its own costs for its real estate broker. Following the determination of the arbitratorFair Market Rental Rate by the brokers, the parties, shall equally share the costs of any third broker. The parties shall promptly execute an amendment as set forth above. If Tenant fails to timely notify Landlord in writing that Tenant accepts or rejects Landlord's determination of the Fair Market Rental Rate, time being of the essence with respect thereto, Tenant's rights under this Section 30 shall terminate and Tenant shall pay Minimum Rent in an amount equal have no right to renew this Lease. Tenant's rights under this Section 30 shall terminate if(l) this Lease or Tenant's right to possession of the Landlord’s determination Premises is terminated, or (2) Tenant fails to timely exercise its option under this Section 30, time being of market rate submitted the essence with respect to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne byTenant's exercise thereof.
Appears in 1 contract
Extension Options. (a) Tenant shall have the rightright to extend the term of this Lease for two (2) additional terms of three (3) years each (each such 3-year period, an “Option Term”) by giving written notice of such extension to Landlord not more than two (2) years nor less than nine (9) months days prior to the expiration of the Initial Term or the first Option Term, as applicable, of this Lease, time being of the essence hereof; provided that, at the date of expiration of the Initial Term this Lease shall be in full force and effect and no material or monetary default by Tenant shall exist after expiration of the applicable cure period following notice. If Tenant shall give notice to Landlord of its election to extend the term of this Lease for an Option Term but a material or monetary default (after written notice and expiration of applicable cure period) shall exist on the date of the expiration of the Initial Term or the first Option Term, as applicable, Landlord, at its option, may extend the term of this Lease for the applicable Option Term. The Lease for each Option Term shall be on the same terms, covenants and conditions contained in this Lease except that the Base Rent for each Option Term shall be equal to the Market Rent for the Premises determined as of the commencement of the applicable Option Term. Within thirty (30) days after receipt by Landlord of Tenant’s notice exercising Tenant’s right to extend the term of this Lease for the Extension Period(s) upon the same termsOption Term, covenants and conditions herein set forth; providedas provided above, however, that the Minimum Rent for the first Lease Year of each Extension Period Landlord shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, give Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination of the market rate Market Rent (as herein defined) for the Premises. If Tenant disagrees with Landlord’s determination of rent being charged the Market Rent for similar space pursuant to the paragraph abovePremises, Tenant shall give notice to Landlord within ten thirty (1030) days after the date of TenantLandlord’s notice, time being of the essence. Upon receipt of such Landlord’s determinationnotice, Landlord and Tenant shall for a period of thirty (30) days or such longer period on which Landlord and Tenant may agree (the market rate shall be determined as follows: The market rate “Negotiation Period”) negotiate in good faith in an attempt to reach agreement upon the Market Rent for the Premises. If at the end of the Negotiation Period, Landlord and Tenant are unable to agree upon the Market Rent for the Premises, then the Market Rent for the applicable Option Term shall be determined by appraisal, made by a single arbitrator appointed in accordance Board consisting of three reputable real estate appraisers, each of whom shall be a Member of the American Institute of Real Estate Appraisers with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator designation of “MAI,” shall be impartial experienced in the appraisal of commercial real estate in Hennepin County, Minnesota, and shall have not less than ten no Disqualifying Interest (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Centeras defined herein). Within fifteen (15) days following the appointment of such arbitrator each party One appraiser shall submit a report setting forth be appointed by Landlord or its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party representative and one appraiser shall deem relevantbe appointed by Tenant or its representative. The arbitrator shall, third appraiser shall be appointed by the first two appraisers. If the first two appraisers are unable to agree on a third appraiser within thirty (30) days following after the appointment of the second appraiser, or if either party refuses or neglects to appoint an appraiser as herein provided within twenty (20) days after the appointment of the first appraiser, then such hearing and submission third appraiser or such second appraiser whose appointment was not made as aforesaid shall be appointed by the then President of evidence render his decision the Minnesota chapter of the American Institute of Real Estate Appraisers or such successor body hereafter constituted exercising similar functions, unless such President shall have a direct or indirect financial or other business interest in or in common with any of the parties hereto (a “Disqualifying Interest”), in which case the third appraiser or such other appraiser whose appointment was not made as aforesaid shall be appointed by selecting the then next highest ranking officer of the Minnesota chapter of the American Institute of Real Estate Appraisers or such successor body who shall not have a disqualifying interest. If the Market Rent determination of market rate then being charged for similar space at least two of the appraisers shall be identical in the Shopping Center. It is expressly understood amount, that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator amount shall be final and binding upon the on both Landlord and Tenant. Prior to If the determination determinations of all three appraisers shall be different, the Market Rent shall be the average of the arbitrator, Tenant shall pay Minimum Rent in an amount equal two determinations which are closest to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne byeach other.
Appears in 1 contract
Samples: Lease (Mathstar Inc)
Extension Options. (a) 2.3.1 Subject to and in accordance with the terms and conditions of this Section 2.3, Tenant shall have the right, at its option, following options (“Extension Options”) to extend the term Term of this the Lease. First Extension Term: Three (3) years (months 61-96) Second Extension Term: Three (3) years (months 97-132) [***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. Tenant’s right to extend the Term of the Lease with respect to any Extension Term shall be conditioned upon Tenant having timely and properly exercised its right to extend the Term of the Lease for the all prior Extension Period(s) Terms.
2.3.2 Each Extension Term shall be upon all of the same terms, covenants conditions and conditions herein provisions applicable to the then-current Term of this Lease (except as provided otherwise herein). Tenant shall have no further options to extend the Term, except as expressly set forthforth in this Section 2.3.
2.3.3 The monthly Extension Term Base Rent payable with respect to the Tenant Space for each Extension Term shall be equal to the then prevailing base rent then being charged by Landlord for comparable space in the Building for new leases, taking into consideration the quality, size, utility and location thereof, the length of the Extension Term, the credit standing of Tenant, and the amenities provided to Tenant; provided, however, that in no event shall the Minimum monthly Base Rent for payable by Tenant during the first Lease Year year of each any Extension Period shall Term be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by less than one hundred three percent (3103%). Thereafter, ) of the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum scheduled monthly Base Rent for the last month of the immediately preceding Lease Yearyear of the Term of the Lease; and provided further that, once the Base Rent has been determined in accordance with this Section 2.3 with regard to the first year of an Extension Term, the monthly Base Rent for each subsequent year of such Extension Term shall be increased by hereunder as of the first (1st) day of each such subsequent year to be equal to one hundred three percent (3103%) per annum. In order of the scheduled monthly Base Rent for the last month of the immediately preceding year of the Term of the Lease, as extended.
2.3.4 With respect to exercise the First Extension Option and the Second Extension Option, Tenant shall be required may exercise each such Extension Option only by delivering an Extension Option Interest Notice to give written notice of its intention to extend Landlord at least six (6) months but not more than nine (9) calendar months (and not more than twelve (12) calendar months) prior to the then applicable expiration date of the Term, specifying that Tenant is interested in exercising an Extension Option pursuant to this Section 2.3. Landlord shall thereafter deliver the Extension Option Landlord’s Notice to Tenant. Tenant shall thereafter have the right to exercise the applicable Extension Option by delivering an Extension Option Exercise Notice to Landlord within thirty (30) days after Landlord’s delivery of the Extension Option Landlord’s Notice to Tenant, specifying that Tenant is irrevocably exercising its Extension Option so as to extend the Term of this Lease Termination Dateby an Extension Term on the terms set forth (a) in this Section 2.3, and (b) in the Extension Option Landlord’s Notice.
2.3.5 In the event that Tenant shall duly exercise an Extension Option, the Term shall be extended to include the applicable Extension Term (and all references to the Term in this Lease shall be deemed to refer to the Term specified in Item 5 of the Basic Lease Information, plus all Extension Terms properly exercised by Tenant). In the event that Tenant shall fail to deliver an Extension Option Exercise Notice, or expiration of the then current an Extension PeriodOption Interest Notice, as the case may be. Failure , within the applicable time period specified herein for the delivery thereof, time being of the essence, at the election of Landlord, Tenant shall be deemed to deliver timely notice as required above shall cause the have forever waived and relinquished such Extension Option, and all remaining Extension Options, any other options or rights to lapse renew or extend the Term effective after the then applicable expiration date of the Term shall terminate and shall be of no further force and or effect. Further, if .
2.3.6 Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the any Extension Option only with respect to the entire Tenant Space leased by Tenant at the time that Tenant delivers the applicable Extension Option Exercise Notice. If Tenant duly exercises an Extension Option, Landlord and if Tenant shall default hereunder after execute an amendment reflecting such right has been exercised but within exercise. Notwithstanding anything to the six (6) month period preceding the contrary herein, any attempted exercise by Tenant of an Extension Period such election Option shall, at the election of Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph aboveinvalid, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determinationineffective, and of no force or effect if, on the market rate date on which Tenant delivers an Extension Option Exercise Notice, or an Extension Option Interest Notice, as the case may be, or on the date on which the Extension Term is scheduled to commence, either: (i) there shall be determined as follows: The market rate shall be determined an uncured Event of Default by a single arbitrator appointed Tenant under this Lease, or (ii) the Lease is no longer in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power full force or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne byeffect.
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Extension Options. (a) Tenant Borrowers shall have the right, at its option, to extend the term of this Lease for the Extension Period(s) upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise extend the Maturity Date from the Initial Maturity Date to the First Extended Maturity Date (the "First Extension Option and if Tenant Option") and, provided Borrower has validly exercised the First Extension Option, Borrowers shall default hereunder after such have the right has been exercised but within to extend the six Maturity Date from the First Extended Maturity Date to the Second Extended Maturity Date (6the "Second Extension Option"), in each case subject to Borrowers’ satisfaction of the following conditions:
(a) month period preceding Borrowers shall give Administrative Agent written notice of Borrowers’ request for an extension of the Maturity Date not earlier than ninety (90) days, nor later than forty-five (45) days, prior to (x) the Initial Maturity Date, with respect to the First Extension Period such election shallOption, at Landlord’s optionor (y) the First Extended Maturity Date, be null and void.with respect to the Second Extension Option;
(b) In the event that Tenant shall dispute Landlord’s determination As of the market rate date of rent being charged for similar space pursuant such notice, and as of (x) the Initial Maturity Date, with respect to the paragraph aboveFirst Extension Option, Tenant or (y) the First Extended Maturity Date, with respect to the Second Extension Option, there shall give notice exist no Default or Potential Default (provided that Borrowers shall have an opportunity to Landlord cure such Potential Default prior to such Maturity Date to the extent of applicable cure periods under this Agreement or the applicable Loan Document);
(c) At Administrative Agent’s request, Borrowers shall have caused to be issued to Lenders, at Borrowers’ sole cost and expense, appropriate endorsements to the Title Policies (but only to the extent available) which confirm the existence and priority of the Liens securing the Obligations in connection with the requested extension;
(d) There shall have been no change in the financial condition of Borrowers, or in the condition of the Properties from that which existed on the Effective Date (or with respect to a Property that became a Property hereunder after the Effective Date, from the condition of such Property on the date on which it first became a Property hereunder) which change, as determined by Administrative Agent in its reasonable discretion, has a Material Adverse Effect;
(e) The Loan-to-Value Percentage based upon new (or recently obtained) Appraisals obtained by Administrative Agent at Borrowers’ sole cost and expense and with valuation dates within ten sixty (1060) days of Tenant’s receipt of such Landlord’s determination(x) the Initial Maturity Date, and with respect to the market rate First Extension Option, or (y) the First Extended Maturity Date, with respect to the Second Extension Option, shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with not exceed the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and Maximum Applicable Loan-to-Value Percentage;
(f) Borrowers shall have provided to Administrative Agent satisfactory evidence (which evidence shall include, without limitation, a detailed current rent roll and a current historical operating statement for each Property) that the Net Operating Income from the Properties is sufficient to yield a Loan Constant which is not less than ten the Minimum Applicable Loan Constant as of (10x) year’s experience in the County where the Shopping Center is locatedInitial Maturity Date, in a calling related with respect to the leasing of commercial space in premises comparable First Extension Option, or (y) the First Extended Maturity Date, with respect to the Shopping Center. Within fifteen Second Extension Option;
(15g) days following The Net Operating Income from the appointment Properties shall be sufficient to yield a Debt Service Coverage Ratio of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other not less than the market rate submitted by Landlord or TenantMinimum DSCR as of (x) the Initial Maturity Date, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior with respect to the determination of First Extension Option, or (y) the arbitratorFirst Extended Maturity Date, Tenant with respect to the Second Extension Option; and
(h) Borrowers shall pay Minimum Rent to Administrative Agent a non-refundable extension fee in an amount equal to two tenths of one percent (0.20%) of the Landlord’s determination of market rate submitted then-current Aggregate Loan Commitment on or before (x) the Initial Maturity Date, with respect to Tenant pursuant to this Sectionthe First Extension Option, and following (y) the arbitrator’s final determinationFirst Extended Maturity Date, with respect to the Second Extension Option. Notwithstanding the foregoing, with respect to the exercise of both the First Extension Option and the Second Extension Option, Borrowers shall have the right to repay principal outstanding under the Loan in such amount of any overpayment or underpayment shall as may be adjusted between required to reduce the parties on demand. The cost of arbitration shall be borne byAggregate Loan Commitment, after giving effect to the required reduction, to an amount such that Borrowers are in compliance with subsections (e), (f) and (g) above.
Appears in 1 contract
Samples: Loan Agreement (KBS Real Estate Investment Trust II, Inc.)
Extension Options. (a) Tenant shall have the right, at its option, to extend the term of this Lease for the Extension Period(s) upon the same terms, covenants and conditions herein set forth; provided, however, that the Minimum Rent for the first Lease Year of each Extension Period shall be increased to the greater of (i) the market rate then being charged for similar space in the Shopping Center or (ii) the Minimum Rent for the preceding Lease Year increased by three percent (3%). Thereafter, the Minimum Rent for each successive Lease Year during each Extension Period shall be an amount equal to the Minimum Rent for the last preceding Lease Year, increased by three percent (3%) per annum. In order to exercise the Extension Option, Tenant shall be required to give written notice of its intention to extend at least six (6) months but not more than nine (9) months prior to the Lease Termination Date, or expiration of the then current Extension Period, as the case may be. Failure to deliver timely notice as required above shall cause the Extension Option, and all remaining Extension Options, to lapse and be of no further force and effect. Further, if Tenant shall be in default of the terms of this Lease, Tenant shall not have the right to exercise the Extension Option and if Tenant shall default hereunder after such right has been exercised but within the six (6) month period preceding the Extension Period such election shall, at Landlord’s option, be null and void.
(b) In the event that Tenant shall dispute Landlord’s determination of the market rate of rent being charged for similar space pursuant to the paragraph above, Tenant shall give notice to Landlord within ten (10) days of Tenant’s receipt of such Landlord’s determination, and the market rate shall be determined as follows: The market rate shall be determined by a single arbitrator appointed in accordance with the American Arbitration Association Real Estate Valuation Arbitration Proceeding Rules. Such arbitrator shall be impartial and shall have not less than ten (10) year’s experience in the County where the Shopping Center is located, in a calling related to the leasing of commercial space in premises comparable to the Shopping Center. Within fifteen (15) days following the appointment of such arbitrator each party shall submit a report setting forth its determination of the market rate of the Leased Premises for the applicable term, together with such other information as such party shall deem relevant. The arbitrator shall, within thirty (30) days following such hearing and submission of evidence render his decision by selecting the determination of market rate then being charged for similar space in the Shopping Center. It is expressly understood that such arbitrator shall have no power or authority to select any market rate other than the market rate submitted by Landlord or Tenant, and the decision of such arbitrator shall be final and binding upon the Landlord and Tenant. Prior to the determination of the arbitrator, Tenant shall pay Minimum Rent in an amount equal to the Landlord’s determination of market rate submitted to Tenant pursuant to this Section, and following the arbitrator’s final determination, the amount of any overpayment or underpayment shall be adjusted between the parties on demand. The cost of arbitration shall be borne byby the party whose determination of Market Rate is not selected by the arbitrator.
Appears in 1 contract
Samples: Lease (Carrollton Bancorp)