First Expansion Option. The "First Expansion Option" is an option to include within the Demised Premises that area (the "First Expansion Space") shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of (i) the date of occupancy of any portion of the First Expansion Space or (ii) 120 days following the delivery of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining in the 120-month Lease Term after the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor Area.
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Samples: Lease Agreement (Indus International), Lease Agreement (TSW International Inc)
First Expansion Option. The "First Expansion Option" is an Tenant shall have the option to include within lease approximately contiguous square feet of Rentable Area on the Demised Premises that area floor of the Building as shown on the plan attached hereto as Exhibit A (the "“First Expansion Space"”), by notice given on or before , subject to the following terms and conditions:
(a) shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is Promptly after receipt of Tenant’s notice, Landlord shall notify Tenant of the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" date (which shall be the earlier of (ibetween and ) the date of occupancy of any portion of on which it will deliver the First Expansion Space or to Tenant.
(iib) 120 days following The First Expansion Space shall become part of the Premises on the aforesaid delivery of date and Tenant agrees to commence paying Rent for the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that after such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay")delivery date. The "Construction Allowance" annual Rent for the First Expansion Space shall be equal to $4.50 (i) multiplied calculated by multiplying the Rent per square foot of Rentable Area in effect for the original Premises on the delivery date by the number Rentable Area of whole months remaining in the 120-month Lease Term after the First Expansion Option Rent Commencement DateSpace.
(c) Except as otherwise specifically provided in this Article, (ii) divided by 120 all of the terms and (ii) multiplied by conditions of this Lease shall apply to the First Expansion Space from and after the aforesaid delivery date;
(d) The First Expansion Space shall be leased to Tenant in its then existing condition and state of improvement and Landlord shall have no obligation to make any improvements, repairs or alterations thereto. However, Landlord shall provide Tenant with a tenant improvement allowance for the First Expansion Space equal to $ per square foot of Rentable Floor AreaArea in the First Expansion Space. Such tenant improvement allowance and the tenant improvements to be performed in the First Expansion Space shall be subject to all of the terms and conditions set forth in Exhibit D attached hereto regarding the Tenant Improvements and the Tenant Improvement Allowance.
(e) Notwithstanding anything to the contrary contained herein, Tenant shall have the right to lease the First Expansion Space only if no Event of Default has occurred and is continuing on the date of Tenant’s notice of its intention to lease the First Expansion Space or on the date of delivery of the First Expansion Space to Tenant.
(f) Within 10 days after Tenant exercises the First Expansion Option, Landlord and Tenant shall execute an amendment to this Lease documenting the expansion of the Premises pursuant to this Section.
(g) Landlord shall have no liability to Tenant for any damages resulting from any delay in delivering possession of the First Expansion Space to Tenant if said delay is caused by the holding over of a previous tenant of the First Expansion Space; provided, that, Landlord shall take all action reasonably necessary, including required legal proceedings, to secure possession of the First Expansion Space.
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First Expansion Option. The "If (i) Tenant shall not have assigned this Lease (other than pursuant to Paragraph 21(C)), (ii) Tenant shall not have subleased more than 25% of the Premises for all or substantially all of the remaining Term (excluding subleases pursuant to Paragraph 21(C)), and (iii) this Lease shall then be in full force and effect, then Tenant shall have the one-time option (the “First Expansion Option" is an option ”) to expand the Premises to include within the Demised Premises that area (the "First Expansion Space") shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is Premises upon the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of following terms and conditions:
(i) Tenant shall exercise the date First Expansion Option, if at all, by giving Landlord written notice of occupancy exercise (the “First Expansion Notice”) on or before December 31, 2003. If Paragraph 35(A)(vi) and clause (b) thereof is applicable, then
(1) Tenant shall specify in such First Expansion Notice whether the First Expansion Premises shall be (X) the North Eighth Floor Premises only, (Y) the Eighth Floor Premises, and
(2) if Tenant fails to so specify the Second Expansion Premises, the Firs Expansion Premises shall be deemed to be the Eighth Floor Premises (i.e., as provided for in clause (Y)).
(ii) If Tenant timely exercises the First Expansion Option, then the First Expansion Premises shall be included in the Premises upon the same terms, covenants and conditions as are applicable to the Primary Office Premises, except to the extent, if any, otherwise provided below:
(1) the term of any portion the letting of the First Expansion Space or Premises shall expire on the Initial Term Expiration Date, subject to extension of the Term pursuant to Paragraphs 35(F) and 35(G) below;
(ii2) 120 days following the delivery Net Rent and Additional Rent in respect of Taxes and Operating Expenses, with respect to the First Expansion Option Exercise Notice Premises, shall commence to be payable on the Rent Commencement Date;
(3) the amount of Net Rent per square foot of Rentable Area with respect to the First Expansion Premises shall be equal to that applicable to the Primary Office Premises, as defined belowsuch Net Rent increases from time to time as set forth in Exhibit B-1.
(4) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do Rentable Area of the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above Premises shall be increased by the number Rentable Area of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining in the 120-month Lease Term after the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor Area.Premises;
Appears in 1 contract
Samples: Office Lease (Hyatt Hotels Corp)
First Expansion Option. The "First Expansion Option" is an option to include within the Demised Premises (a) Provided that area (the "First Expansion Space") shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of (i) the date of occupancy of any portion of the First Expansion Space or (ii) 120 days following the delivery of Tenant exercises the First Expansion Option Exercise Notice and on the First ES Inclusion Date (as defined belowi) to Landlord; providedthis Lease has not been terminated and no valid notice of termination of this Lease has been delivered, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if ii) Tenant has elected to do not exercised the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure Contraction Option with respect to either matter the First Contraction Date, and (iii) Tenant Occupies at least 70% of the Premises, Tenant shall have the option (the “First Expansion Option”) to lease one full floor of the Building as described above is herewith referred to as "Landlord Delay"in the following sentence (the “First Expansion Space”). The "Construction Allowance" for If Tenant is not leasing all of the Total Unit as of the date of the First ES Offer Notice, the First Expansion Space shall be equal contiguous to $4.50 the top floor of the Office Premises then being leased by Tenant within the Total Unit. If Tenant is leasing all of the Total Unit as of the date of the First ES Offer Notice, then the First Expansion Space shall be a full floor determined by Landlord, which may be located anywhere within the Building other than the 20% of the RSF of the Building which is closest to the top of the Building. The First Expansion Option shall be exercisable by Tenant giving Landlord notice thereof (the “First Expansion Notice”) no less than 15 months prior to the Existing ES Lease Expiration Date, as set forth in the First ES Offer Notice (time being of the essence).
(b) If Tenant timely gives the First Expansion Notice, then on the First ES Inclusion Date, the First Expansion Space shall become part of the Premises for a term to commence on the First ES Inclusion Date to be coterminous with the Term, without any further act on the part of Landlord or Tenant and upon all of the terms and conditions of this Lease, except that, from and after the First ES Inclusion Date:
(i) multiplied Fixed Rent shall be increased by the number First ES Fair Market Rent for the First Expansion Space;
(ii) Tenant’s Share (and Tenant’s Operating Share, as applicable) shall be appropriately increased to reflect the addition of whole months remaining the rentable square footage of the First Expansion Space to the Qualified RSF of the Premises;
(iii) Tenant shall be entitled to any rent abatement and/or work allowance determined in accordance with Section 12.01(g) below; it being agreed that any such work allowance will be provided to Tenant for Tenant’s Alterations to the 120-month Lease Term First Expansion Space to prepare the same for initial occupancy in accordance with the provisions of Section 3.03 hereof, applied mutatis mutandis; provided, that, if Tenant elects not to use all or any portion of such work allowance to prepare the First Expansion Space for initial occupancy, then Tenant may elect, at any time after the First Expansion Option Rent Commencement ES Inclusion Date, to have the balance of such work allowance applied against the next succeeding installments of Rent due under this Lease;
(iiiv) divided by 120 and (ii) multiplied by Other than as expressly set forth in this Section 12.01(b), Landlord shall not be required to perform any work, to pay any other work allowance or any other amount, or to render any services to make the Building or the First Expansion Rentable Floor AreaSpace ready for Tenant’s use or occupancy or to provide any abatement of Fixed Rent or Additional Charges (but the foregoing shall not vitiate Landlord’s obligations under this Lease or any other abatement expressly permitted pursuant to the terms of this Lease), and Tenant shall accept the First Expansion Space in its “as is” condition on the First ES Inclusion Date, provided that if the First Expansion Space is within the Total Unit, Landlord shall have performed the Base Building Work (other than Landlord MEP Upgrades or Tenant MEP Work) prior to the First ES Inclusion Date, and if the First Expansion Space is not within the Total Unit, Landlord shall have performed such Base Building Work, as may be modified as appropriate taking into account the physical differences between space in the Total Unit and other portions of the Building (the “Modified Base Building Work”). If such Base Building Work or Modified Base Building Work, as applicable, was performed in connection with the initial development of the Building or leasing of the First Expansion Space, then Landlord shall have no obligation to make any improvements or alterations to the Base Building Work or Modified Base Building Work, and Tenant shall accept the Base Building Work or Modified Base Building Work in its “as is” condition as of the First ES Inclusion Date.
(v) Notwithstanding the foregoing, Tenant shall have the right to cause Landlord to deliver the First Expansion Space with any existing leasehold improvements demolished, which shall be a relevant factor for purposes of determining the First ES Fair Market Rent. Tenant shall deliver notice requesting such demolition simultaneously with delivery of the First Expansion Notice, failing which the First Expansion Space shall be delivered in accordance with Section 12.01(b)(iv).
(vi) The Reduced or Increased Premises Operational Mechanism, if applicable, shall apply.
Appears in 1 contract
Samples: Lease (BlackRock Inc.)
First Expansion Option. The "(a) Provided: (i) no Event of Default exists; (ii) this Lease is in full force and effect; (iii) Tenant is the originally named Tenant or a Permitted Transferee; and (iv) Tenant has not subleased more than 50% of the Premises to any entity that is not a Permitted Transferee, then Tenant has the option (“First Expansion Option" is an option ”) to include within lease all (but not less than all) of Suite 4010 upon the Demised Premises that area (the "First Expansion Space") shown on Exhibit "B-4"terms and conditions set forth in this Section. The "First Expansion Option Exercise Deadline" is the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties If Tenant desires to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of (i) the date of occupancy of any portion of exercise the First Expansion Space or (ii) 120 days following the delivery Option, Tenant shall send a written notice to Landlord of its irrevocable exercise of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the “Tenant’s First Expansion Space Construction itselfNotice”), submitted which must be received by Landlord no later than the 2-year anniversary of the Commencement Date, time of the essence. Upon Tenant’s delivery of Tenant’s First Expansion Notice, within ten Tenant may not thereafter revoke Tenant’s exercise of the First Expansion Option. If an Event of Default exists at any time after Landlord receives Tenant’s First Expansion Notice but before the first day that Tenant commences to lease Suite 4010, Landlord, at Landlord’s option, shall have the right to nullify Tenant’s exercise of the First Expansion Option.
(10b) days of Landlord's receipt thereof orIf Tenant timely exercise the First Expansion Option, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above Suite 4010 shall be increased by leased under all of the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure same terms and conditions as set forth in this Lease with respect to either matter described above is herewith referred the Premises, including at the same Fixed Rent per rentable square foot then applicable to the Premises, but with pro rata concessions, and coterminous. Upon Tenant’s leasing of Suite 4010, the “Premises” shall include Suite 4010 and, except as "Landlord Delay"). The "Construction Allowance" for otherwise set forth in this Section, all computations made under this Lease based upon or affected by the rentable area of the Premises shall be recomputed to include Suite 4010.
(c) If Tenant timely exercises the First Expansion Space shall be equal to $4.50 Option: (i) multiplied by Landlord shall tender possession of Suite 4010 to Tenant in vacant and broom-clean condition within 6 months after receipt of Tenant’s First Expansion Notice; (ii) Tenant’s lease of Suite 4010 shall commence 4 months after the number date Landlord tenders possession of whole months remaining Suite 4010 in vacant and broom-clean condition; and (iii) upon Landlord’s request, Tenant shall execute an appropriate new lease or amendment, in form and content reasonably satisfactory to both Landlord and Tenant, memorializing the 120-month Lease Term after expansion of the Premises as set forth in this Section (provided Tenant’s failure to execute such lease or amendment shall not negate the effectiveness of Tenant’s exercise of the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor Area.Option).
Appears in 1 contract
Samples: Lease Agreement (Passage BIO, Inc.)
First Expansion Option. The "(a) Provided that on the date Tenant exercises the First Expansion Option (i) this Lease has not been terminated, (ii) Landlord has not delivered to Tenant a notice electing to terminate this Lease in accordance with Section 6.05 which remains in effect, (iii) Tenant is a Coach Tenant or a successor of a Coach Tenant by assignment of this Lease in accordance with Article 5 and (iv) the Marketing Center Tenant did not timely exercise the Marketing Center Renewal Option, Tenant shall have the option (the “First Expansion Option" is an option ”) to include within lease a single portion of the Demised Premises that area 24th floor of the Building which shall consist of the Marketing Center Space (as defined below) (the "“First Expansion Space") shown on Exhibit "B-4"”). The "First Expansion Option Exercise Deadline" shall be exercisable by Tenant giving Landlord notice thereof (the “First Expansion Notice”) within 30 days after Landlord delivers the Marketing Center Space Vacancy Date Notice to Tenant (time being of the essence). Landlord has informed Tenant that a portion of the 24th floor (the “Marketing Center Space”) of the Building is leased to the last day Xxxxxx Yards Marketing Tenant LLC (the “Marketing Center Tenant”) pursuant to that certain Lease dated as of AugustApril 19, 19952016 (as same may be amended, modified or supplemented from time to time, the “Marketing Center Lease”). The "First Expansion Rentable Floor Area" initial expiration date under the Marketing Center Lease is hereby conclusively agreed by March 31, 2021 and the parties Marketing Center Tenant has a 5-year renewal option to be 10,208 square feetcommence on the day immediately following the expiration of the initial term (the “Marketing Center Renewal Option”). The "“Marketing Center Space Vacancy Date” means (x) if the Marketing Center Tenant exercises the Marketing Center Renewal Option, April 1, 2026 and (y) if the Marketing Center Tenant does not exercise its renewal option, April 1, 2021. Tenant acknowledges that it has received a copy of the Marketing Center Lease. Within 30 Business Days after the date Landlord is able to determine the Marketing Center Space Vacancy Date, Landlord shall provide written notice thereof (the “Marketing Center Vacancy Date Notice”) to Tenant, which notice shall advise Tenant of the Marketing Center Space Vacancy Date; provided, that the failure of Landlord to deliver the Marketing Center Vacancy Date Notice shall not affect the First Expansion Option Rent Commencement or the Marketing Center Space Vacancy Date" . For the avoidance of doubt, (1) if the Marketing Center Tenant exercises the Marketing Center Renewal Option, then the provisions of this Section 10.01 granting to Tenant the First Expansion Option shall be null and void and of no further force or effect and (2) if the earlier Marketing Center Tenant does not exercise the Marketing Center Renewal Option and Tenant fails to timely exercise the First Expansion Option in accordance with the terms of (i) the date of occupancy of any portion this Section 10.01, then Landlord may enter into one or more leases of the First Expansion Space or (ii) 120 days following the delivery of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans with third parties on such terms and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long conditions as Landlord promptly commenced and diligently pursued such construction)shall determine, the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal null and void and of no further force and effect and Landlord shall have no further obligation to $4.50 (i) multiplied by the number of whole months remaining in the 120-month Lease Term after offer the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor AreaSpace to Tenant.
Appears in 1 contract
Samples: Lease (Coach Inc)
First Expansion Option. The (a) First Option to Expand. During the time period beginning on the Commencement Date and ending on the date that is one hundred eighty (180) days prior to the fifth (5th) anniversary of the Rent Commencement Date (the "First Expansion Option" Period"), provided no Event of Default has occurred and is an continuing under this Lease at the time same is exercised, Tenant shall have the option to include within expand the Demised Premises that area (the "First Option to Expand") by no less than 10,000 contiguous rentable square feet on, and no more than the entire remainder of, the fifth (5th) floor of the Tower Building (i.e., 26,772 rentable square feet) (such fifth (5th) floor 77 space being hereinafter referred to as the "First Expansion Space") shown on Exhibit "B-4"), subject to and in accordance with all of the terms hereof. The "exercise of the First Option to Expand shall be accomplished as follows: prior to expiration of the First Expansion Option Exercise Deadline" is Period, Tenant, if it wishes to exercise such option, shall notify Landlord in writing that Tenant elects to expand the last day of August, 1995. The "Premises to include the First Expansion Rentable Floor Area" is hereby conclusively agreed by Space. Tenant's expansion election notice shall include the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of (i) the date of occupancy of any portion approximate size of the First Expansion Space or (iiwhich shall be a minimum of 10,000 contiguous rentable square feet of fifth (5th) 120 days following floor space in the delivery Tower Building, but not exceeding the entire remainder of such fifth (5th) floor space). Following receipt of Tenant's expansion election notice, Landlord and Tenant shall mutually and reasonably agree on the final size and location of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" demised area for the First Expansion Space provided that Landlord and Tenant acknowledge and agree that the final size shall be equal substantially the same size specified in Tenant's expansion notice. Landlord shall deliver to $4.50 (i) multiplied by Tenant exclusive possession of the number of whole months remaining Expansion Space in the 120-month Lease Term after condition required hereunder no later than the First Expansion Option fifth (5th) anniversary of the Rent Commencement Date, subject to per diem adjustment due to Unavoidable Delays (ii) divided by 120 and (ii) multiplied by the "First Expansion Rentable Floor AreaDate").
Appears in 1 contract
First Expansion Option. The "A. Subject to and upon the terms, provisions and conditions set forth in this Section 52, Tenant shall have, and is hereby granted, the one-time option (the “First Expansion Option" is an option ”) to include within cause Landlord to construct on the Demised Premises that area land identified as “Phase 2” in Exhibit I attached hereto (the "First Expansion Space") shown on Exhibit "B-4". The "“First Expansion Option Exercise Deadline" is the last day of AugustLand”), 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties and to be 10,208 lease from Landlord, certain new improvements to contain not more than thirty-four thousand (34,000) square feet. The ", which improvements may be additions to or expansions of the Building and/or the Improvements (such First Expansion Option Rent Land and improvements, the “First Expansion Option Premises”). Tenant may exercise the First Expansion Option by written notice delivered to Landlord at any time prior to the sixth (6th) anniversary of the Commencement Date" ; provided, however, that if Tenant exercises the First Expansion Option at any time after the third (3rd) anniversary of the Commencement Date, it shall be a condition to the effectiveness of such exercise that Tenant simultaneously exercise the first Renewal Option and extend the term for an additional five (5) year period. If Tenant does not exercise the First Expansion Option by the required time period, the First Expansion Option shall be waived.
B. The First Expansion Options may be exercised only if, at the time of such exercise and at the time of Landlord’s delivery of the First Expansion Option Premises to Tenant (a) no Event of Default exists and (b) Tenant is in possession of and operating from the entire Leased Premises (unless Landlord, in its sole discretion, elects to waive such condition(s)). If such condition(s) are not satisfied or waived by Landlord, any purported exercise of the First Expansion Option shall be null and void.
C. If Tenant elects to exercise the First Expansion Option, the First Expansion Premises shall be subject to all of the terms, covenants and conditions of this Lease, except that Base Rent for the First Expansion Premises shall be determined in accordance with the terms of Section 50 above for the Prevailing Market Rental Rate applied, mutatis mutandis, for the determination of such Base Rent; provided, however, that in no event shall the Prevailing Market Rental Rate be less than an amount that will cause Landlord to recover its costs and expenses to acquire the First Expansion Option Land (including, but not limited to, closing and other typical acquisition costs such as title insurance and environmental studies), to construct the First Expansion Option Premises (including, but not limited to, hard costs, soft costs, contractor’s fees and costs and fees paid or incurred for architect, engineering, permitting, and other related and similar costs), to finance one hundred percent of each of the foregoing (including, but not limited to, interest and fees) and to recover costs which were, in the reasonable judgment of Landlord, necessary for the efficient and proper development of the project and to protect Landlord’s interests therein. Tenant’s obligation to pay the rent for the First Expansion Premises shall commence on the date (the “First Expansion Rental Commencement Date”) that is the earlier to occur of (i) the date of occupancy of that is thirty (30) days after the date on which Tenant commences operations from any portion of the First Expansion Space Premises or (ii) 120 the date that is thirty (30) days following after the delivery of date on which Substantial Completion with respect to the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining in the 120-month Lease Term after the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor AreaPremises occurs.
Appears in 1 contract
Samples: Build to Suit Lease Agreement (Cardiovascular Systems Inc)
First Expansion Option. The "(a) Subject to the terms and conditions of this Section 2.5, Tenant shall have the right to expand the Premises to include either (x) the 21st floor of the Building or (y) the full 11th floor and a portion of the 10th floor of the Building which shall, in the aggregate, contain approximately 25,000 rentable square feet, as designated by Landlord pursuant to the terms set forth below. Landlord shall designate the location of such space by written notice to Tenant, at any time on or prior to September 1, 2009, and such space shall be deemed the “First Expansion Option" Premises.” Landlord’s designation of the First Expansion Premises may later be changed prior to delivery of the same to Tenant, so long as it is an option comprised of either of the spaces referred to hereinabove in clauses (x) or (y), and notice of such change in the designation of the First Expansion Premises is given at least ninety (90) days prior to the delivery of the First Expansion Premises to Tenant. If Tenant shall give Landlord notice (“First Expansion Notice”) on or before November 1, 2009, electing to expand the Premises in accordance with this Section 2.5 to include within the Demised First Expansion Premises, then so long as the conditions to Tenant’s rights to such expansion have been satisfied, Tenant shall be deemed to have leased the First Expansion Premises, subject to the provisions of this Section 2.5. If Tenant shall have timely given First Expansion Notice, Landlord shall deliver possession of the First Expansion Premises that area to Tenant on a date not sooner than December 1, 2009 nor later than March 1, 2011 (the "“First Expansion Space"Premises Delivery Window”) shown on Exhibit "B-4"in broom clean condition, vacant of any tenant or occupant, and free of personal property and otherwise in its then “as is” condition. The "If Tenant shall fail to timely give First Expansion Option Exercise Deadline" is the last day of AugustNotice, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" Tenant shall be the earlier of (i) the date of occupancy of deemed to have waived such right, and Landlord shall thereafter be free to lease all or any portion of the First Expansion Space Premises to such parties and on such terms as Landlord shall determine in its sole discretion. Notwithstanding anything to the contrary herein provided, Tenant shall have waived its right to lease the First Expansion Premises under this Section 2.5 if Tenant elects to exercise the First Contraction Option under Section 2.10.
(b) Landlord shall exercise good faith efforts to notify Tenant, at least thirty (30) days in advance, of the date that Landlord will deliver possession of the First Expansion Premises. On the date that possession of the First Expansion Premises has been delivered in the condition required under paragraph (a) (the “First Expansion Premises Commencement Date”), the Premises under this Lease shall be expanded to include the First Expansion Premises. However, if Tenant earlier takes possession of the First Expansion Premises, the First Expansion Premises Commencement Date shall be deemed to have occurred upon Tenant so taking possession. Landlord shall have no obligation to perform any work or (ii) 120 days following improvements in connection with the delivery of the First Expansion Option Exercise Notice (as defined below) Premises to Landlord; providedTenant. The failure to have so delivered possession of the First Expansion Premises on or prior to March 1, however2011 shall in no way affect the validity of this Lease or the obligations of Tenant hereunder, nor shall the same be construed in any way to extend the Term of this Lease. Notwithstanding any provision contained herein to the contrary, if occupancy is delayed solely due the First Expansion Premises Commencement Date occurs during the period from March 2, 2011 to March 31, 2011, inclusive, then and in such event Tenant shall be entitled to one day of abatement of Annual Base Rent applicable to the First Expansion Premises for each day during such period in which the First Expansion Premises Commencement Date has not occurred. If delivery of possession of the First Expansion Premises Commencement Date occurs on or after April 1, 2011, then and in such event Tenant shall be entitled to two days of abatement of Annual Base Rent applicable to the First Expansion Premises for each day from and after April 1, 2011 in which the First Expansion Premises Commencement Date has not occurred. The foregoing right to xxxxx Annual Base Rent applicable to the First Expansion Premises shall be Tenant’s sole and exclusive remedy for Landlord's ’s failure to approve or disapprove timely deliver the plans and specifications and contractors (if First Expansion Premises to Tenant has elected prior to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as the First Expansion Premises Delivery Window, and Tenant shall not otherwise have any claim against Landlord, nor shall Landlord promptly commenced have any liability to Tenant, by reason thereof. However, if the inability to deliver the First Expansion Premises prior to the expiration of the First Expansion Premises Delivery Window is due to the holding over of the then current occupant thereof, Landlord will diligently pursue the prosecution of an action for possession in accordance with Landlord’s good faith commercial judgment, and diligently pursued if such constructioninability to deliver the First Expansion Premises is due to any other reason, Landlord shall use commercially reasonable efforts to cause the First Expansion Premises to be available for delivery to Tenant in the condition required under paragraph (a).
(c) Once incorporated into the Premises, the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure Tenant’s rights and obligations with respect to either matter described above is herewith referred the First Expansion Premises shall be subject to and with the benefit of all of the terms and conditions of this Lease, except that (i) the Annual Base Rent applicable to the First Expansion Premises shall equal the Fair Market Rental Value of such First Expansion Premises, considering the terms of this Lease applicable thereto, which shall be determined pursuant to paragraph (d) below; and (ii) Tenant shall commence payment of such additional amount of Annual Base Rent with respect to the First Expansion Premises (subject to the application of any Inducements established in connection with the determination of its Fair Market Rental Value) and Tenant’s Rentable Floor Area shall be revised to reflect the addition of the First Expansion Premises to the Premises, upon the First Expansion Premises Commencement Date. Promptly after the First Expansion Premises Commencement Date, Landlord and Tenant agree to enter into an amendment to this Lease memorializing the addition of the First Expansion Premises to this Lease and the amendment to the applicable defined terms hereunder, including, without limitation, Tenant’s Rentable Floor Area and Annual Base Rent, but failure of the parties to execute such an amendment shall have no effect on the effectiveness of the expansion of the Premises to include the First Expansion Premises, and the economic terms associated therewith, as "set forth above.
(d) Promptly after receiving Tenant’s notice electing to exercise its right to expand the Premises to include the First Expansion Premises, but not in any event sooner than December 1, 2009, Landlord Delay"shall provide Tenant with written notice of Landlord’s good faith determination of the Fair Market Rental Value of the First Expansion Premises, taking into account the factors, and describing any components thereof, as contemplated in Section 2.8 (“Landlord’s Rent Estimate”). The "Construction Allowance" If Tenant shall dispute Landlord’s Rent Estimate for the First Expansion Space Premises, and the parties do not agree on the Fair Market Rental Value within thirty (30) days after delivery of such notice, then either party may initiate the arbitration procedure set forth in Section 2.8 by giving notice to the other within an additional thirty (30) days after the end of such thirty (30) day period. If either party shall fail to timely submit such dispute for arbitration, within such additional thirty (30) day period, Landlord’s Rent Estimate for the First Expansion Premises shall be equal binding on the parties.
(e) Notwithstanding any contrary provision of this Article 2.5 or any other provision of this Lease, Tenant’s right to $4.50 expand the Premises to include the First Expansion Premises is conditioned upon (which conditions may be waived by Landlord in its sole discretion) (i) multiplied by the number of whole months remaining Tenant having expressly waived in the 120-month Lease Term after writing, or otherwise not timely having exercised, the First Expansion Contraction Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the absence, on the date Tenant gives Landlord its First Expansion Notice, and on the date that would otherwise be the First Expansion Rentable Floor AreaPremises Commencement Date, of any default under this Lease by Tenant after any applicable notice and opportunity to cure.
Appears in 1 contract
Samples: Lease Agreement (Digitas Inc)
First Expansion Option. The A. Tenant shall have the option (the "First Expansion Option" is an option ") to include within lease the Demised Premises that area 32,152 rentable square feet of space on the third (3rd) floor of Two Riverside Center as shown on Exhibit P attached hereto (the "First Expansion Space"). Tenant acknowledges that the First Expansion Space may be delivered to Tenant in up to two parcels, provided that (i) shown on Exhibit "B-4"the delivery of the last parcel of First Expansion Space shall occur no later than nine (9) months after the deliver of the first parcel of First Expansion Space, and (ii) no single parcel of First Expansion Space shall contain less than 5,000 rentable square feet of space. The Tenant's right to exercise its First Expansion Option shall be subject to the following conditions:
1. Landlord receives written notice (the "First Expansion Notice") from Tenant of the exercise of its First Expansion Option Exercise Deadline" is on or before the last day of August, 1995the sixty-ninth (69th) full calendar month of the Lease Term; and
2. The "Tenant is not in default under this Lease beyond any applicable notice and cure periods at the time Landlord receives the First Expansion Rentable Floor Area" Notice; and
3. no more than fifteen percent (15%) of the Premises is hereby conclusively agreed by sublet (except in connection with a Permitted Transfer) at the parties to be 10,208 square feet. The "time Landlord receives the First Expansion Option Rent Commencement Date" shall be Notice; and
4. this Lease has not been assigned (except in connection with a Permitted Transfer) prior to the earlier of (i) time Landlord receives the date of occupancy of any portion of First Expansion Notice; and
5. the First Expansion Space or (ii) 120 days following is intended for the delivery exclusive use of Tenant only during the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay")Term.
B. 1. The "Construction Allowance" initial annual Base Rent rate per square foot for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining in the 120-month Lease Term after Prevailing Market rate per rentable square foot for the First Expansion Option Rent Commencement DateSpace as defined in Section III.E above, (ii) divided by 120 and (ii) multiplied by provided that any references to the Offering Space in Section III.E. shall be deemed to refer to the First Expansion Rentable Floor Area.Space. Base Rent attributable to the First Expansion Space shall be payable in monthly installments in accordance with the terms and conditions of Article IV of
Appears in 1 contract
First Expansion Option. The "First Expansion Option" is Tenant shall have an option to include within the Demised Premises that area (the "First Expansion SpaceOption") shown to lease the First Option Space for a lease term or terms commencing, at Landlords option, on Exhibit "B-4". The either one or two dates (but if two dates, such dates shall not be more than one year apart) to be hereafter designated by Landlord to Tenant, but which shall occur during the period (the "First Expansion Option Exercise Deadline" is Period") commencing on the first day of the third year of the Term and expiring on the last day of Augustthe fourth year of the Term, 1995. The "upon the following terms and conditions:
(1) Tenant may exercise the First Expansion Rentable Floor Area" is hereby conclusively agreed by option, upon the parties following terms and conditions:
(a) Tenant gives Landlord written notice of Tenant's election to be 10,208 square feet. The "exercise the First Expansion Option Rent on or before the date which is eighteen (18) months after the Commencement Date" Date of the Term; and
(b) There does not exist an event of default under Paragraph 12.1(a) of this Lease either on the date that Tenant exercises the First Expansion Option, or, unless waived in writing by Landlord, on the proposed lease term commencement date for any First Option Space.
(2) If Tenant exercises the First Expansion Option, Landlord shall be the earlier of give Tenant written notice or notices (i"Landlord's Notices") designating (a) the date of or dates upon which the First Option Space shall be available for occupancy of any and which portion of the First Expansion Option Space shall be available on each such date, with respect to such parts of the First Option Space which have previously been improved, or the date or dates upon which the First Option Space shall be available for commencement of construction of tenant improvements, and which portion of the First Option Space shall be available on each such dates with respect to such parts of the First Option Space which have not previously been improved, each of which such Landlord's Notices to be given not later than five months prior to the applicable availability date set forth therein, and all of such Landlord's Notices shall collectively provide to Tenant availability dates for all of the First Option Space within the First Option Period, (iib) 120 days following Landlord's determination of the delivery "market rate" to apply to each portion of the First Option Space, and (c) the per rentable square floor tenant improvement allowance, if any, which Landlord is willing to provide to improve the applicable First Option Space. Tenant may revoke its exercise of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to by giving Landlord written notice thereof within 10 days after Landlord gives Tenant the first Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure Notice with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining Option, in the 120-month Lease Term after which event the First Expansion Option Rent Commencement Date, (ii) divided by 120 shall thereby terminate in its entirety and (ii) multiplied by Tenant shall have further options to lease the First Expansion Rentable Floor Areaoption Space, or any portions thereof.
Appears in 1 contract
First Expansion Option. The "Tenant shall have the option (the “First Expansion Option" ”) to lease between 4,250 and 5,750 rentable square feet of the Building with a commencement date of between the 66th and 81st calendar months after the Early Occupancy Date of the Lease. Landlord will determine the number of net rentable square feet of such expansion space (provided that it consists of at least 4,250 rentable square feet and no more than 5,750 rentable square feet) and the location of such expansion space provided that it is an option to include located within the Demised Premises that area Building (the "“First Expansion Space") shown on Exhibit "B-4"”). The "Landlord will give Tenant written notice between the 62nd and 77th calendar months after the Early Occupancy Date of the Lease of the option to take the First Expansion Space (the “First Option Exercise Deadline" is Offer”) provided that the last day First Option Offer will be made to Tenant at least four (4) months prior to the commencement date of August, 1995. The "the First Expansion Rentable Floor Area" is hereby conclusively agreed by Space. In the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" Offer, Landlord shall be the earlier of either notify Tenant (i) of the date of occupancy of any portion size and location of the First Expansion Space or (ii) 120 days following the delivery of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure together with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" a commencement date for the First Expansion Space shall (all of which must be equal in compliance with the parameters set forth above); or (ii) that Landlord is unable to $4.50 provide Tenant with the First Expansion Space. Tenant will have a period of thirty (i30) multiplied by the number of whole months remaining days to notify Landlord in the 120-month Lease Term after writing that Tenant has elected to exercise the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by based on the First Option Offer. If Tenant fails to exercise the First Expansion Rentable Floor AreaOption within such thirty (30) day period by written notice to Landlord or if Tenant notifies Landlord in writing that Tenant has elected not to exercise the First Expansion Option, then Tenant will be deemed to have waived its right to exercise the First Expansion Option hereunder. If Tenant timely exercises the First Expansion Option and if Landlord is able to satisfy the First Expansion Option pursuant to the First Option Offer, then the First Expansion Space, as identified in the First Option Offer, shall become part of the Premises and shall be subject to the terms of this Lease for the remainder of the Term subject to the Market Base Rental Rate and construction allowance determinations set forth in Paragraph 2 below. If Landlord notifies Tenant that Landlord is unable to satisfy the First Expansion Option in the First Option Offer, then Tenant, as its sole remedy, will have the termination option set forth in Paragraph 4 below.
Appears in 1 contract
Samples: Lease Agreement (Arthrocare Corp)
First Expansion Option. The "(A) On the conditions (which conditions Landlord may waive by written notice to Tenant) that, both at the time that Tenant gives Landlord the First Expansion Option" is an option to include within the Demised Premises that area (the "First Expansion Space") shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is the last day of AugustNotice, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of (i) the date of occupancy of any portion as hereinafter defined, and as of the First Expansion Space or Premises Commencement Date, as hereinafter defined: (i) there exists no Event of Default, (ii) 120 days following this Lease is still in full force and effect, (iii) Tenant has not assigned this Lease nor sublet more than thirty percent (30%) of the delivery Rentable Floor Area of the Premises (excluding any assignment or sublease permitted without Landlord’s consent under Section 12.2) and (iv) Tenant shall not have previously elected to incorporate the Designated First Expansion Space into the Premises, then, subject to Section 17.7(D), Tenant shall have the option to lease a Qualifying Expansion Space in the Building designated by Landlord, as hereinafter provided. Notwithstanding the foregoing, if Tenant shall have previously elected to incorporate less than the entirety of the Designated First Expansion Space into the Premises, then the remainder thereof shall thereafter constitute the Designated First Expansion Space, and shall constitute Qualifying Expansion Space whether or not such space is comprised of less than 16,000 square feet of Rentable Floor Area.
(B) If Tenant wishes to lease the First Expansion Premises, Tenant shall exercise its option to lease the First Expansion Premises by giving written notice (“First Expansion Exercise Notice”) to Landlord on or before May 31, 2010, requesting Landlord’s quotation of the annual Fair Market Rental Value for the First Expansion Premises as of the First Expansion Option Premises Commencement Date. If Tenant fails timely to give such notice, Tenant shall have no further right to lease the First Expansion Premises.
(C) Upon the timely giving of such First Expansion Exercise Notice Notice, Landlord shall within thirty (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (1030) days give written notice to Tenant of Landlord's receipt thereof or, if Landlord is doing ’s quotation of the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" proposed annual rent for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number Premises as of whole months remaining in the 120-month Lease Term after the First Expansion Option Premises Commencement Date (“Landlord’s First Expansion Premises Rent Commencement DateQuotation”) which will specify, if any, the leasehold improvement allowance that Landlord proposes to offer in connection therewith (ii) divided by 120 “First Expansion Improvement Allowance”). Landlord and (ii) multiplied by Tenant shall negotiate in good faith to reach agreement on the rent for the First Expansion Rentable Floor AreaPremises. If at the expiration of thirty (30) days after the date when Landlord provides Landlord’s First Expansion Premises Rent Quotation to Tenant, Landlord and Tenant have not reached agreement on a determination of an Annual Fixed Rent for the First Expansion Premises and executed a written instrument adding the First Expansion Premises to the Premises under this Lease pursuant to such agreement, then either party may initiate a Broker Determination of the Prevailing Market Rent for such First Expansion Premises, which Broker Determination shall be made in the manner set forth in Exhibit I. If Tenant leases the First Expansion Premises pursuant to this Section 1.2, Landlord shall be deemed to have leased and demised to Tenant, and Tenant shall be deemed to have hired and taken from Landlord, the First Expansion Premises, without the need for further act or deed by either party, for the Term and upon all of the same terms and conditions of this Lease, except as hereinafter set forth. Landlord shall exercise good faith efforts to deliver possession of the First Expansion Premises to Tenant within the First Expansion Delivery Window.
(D) The leasing to Tenant of the First Expansion Premises shall be upon all the same terms and conditions of the Lease except as follows:
Appears in 1 contract
First Expansion Option. The "Provided no material Default shall have occurred and be continuing (it being understood that a Default in the payment of Rent in excess of an amount equal to one month’s Net Rent and Additional Rent then due and owing hereunder shall in any event be deemed a “material” Default for purposes of the foregoing), this Lease shall be in full force and effect and Tenant’s right of possession shall have not been terminated, and subject to the terms and provisions of this Article 34, Tenant shall have the one-time option (the “First Expansion Option" is an option ”) to expand the Premises to include within all of the Demised Premises that area Rentable Area on one (1) floor of the "First Expansion Space"Building. Such one (1) shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" floor shall be the earlier of be:
(i) the date 23rd floor of occupancy the Building, if Tenant shall not have exercised the Pre-Term Expansion Option under Paragraph 34(A) relative to the 23rd floor; or
(ii) the 22nd floor of the Building, if Tenant shall have exercised the Pre-Term Expansion Option under Paragraph 34(A) relative to the 23rd floor; (such one (1) floor determined in accordance with the foregoing provisions is referred to herein as the “First Expansion Premises”) in each case, to the extent that such floor (or any portion thereof) is not, at the time of the exercise of Tenant’s First Expansion Option, leased by Tenant as First Proposal Space or Accepted Offer Space pursuant to Paragraphs 34(M) or 34(N) (respectively) below. In the event that, at the time of the exercise of Tenant’s First Expansion Option, all or any portion of the space located on a floor that would have constituted the First Expansion Premises is being leased by Tenant as First Proposal Space pursuant to Paragraph 34(M) below or Accepted Offer Space pursuant to Paragraph 34(N) below, then: (x) Tenant shall have no right to exercise Tenant’s First Expansion Option as to the space on such floor so leased by Tenant as First Proposal Space or Accepted Offer Space (iias applicable), and (y) 120 days following Tenant shall have the delivery right to exercise Tenant’s First Expansion Option as to all (but not less than all) of the space on such floor which is not so leased by Tenant as First Proposal Space or Accepted Offer Space (as applicable), as provided in this Paragraph 34(B). Tenant shall exercise the First Expansion Option, if at all, by delivering to Landlord written notice of such exercise (the “First Expansion Notice”) on or before January 1, 2014 (the “First Expansion Notice Deadline”). If Tenant fails to deliver the First Expansion Notice by the First Expansion Notice Deadline, Tenant shall be deemed to have waived its First Expansion Option. Landlord shall also have the right to substitute a different floor in the high-rise portion of the Building in accordance with Paragraph 34(L)(i) below. Within ten (10) Business Days after Landlord’s receipt of the First Expansion Option Exercise Notice Notice, Landlord shall notify Tenant of the date (as defined belowthe “Scheduled First Expansion Delivery Date”) on which Landlord intends to Landlorddeliver possession of the First Expansion Premises to Tenant, which date shall not be earlier than January 1, 2015, nor later than April 1, 2015; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove and in the plans and specifications and contractors (if Tenant event Landlord has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion substitute a floor as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining Premises, as provided in the 120-month Lease Term after preceding sentence, then such notice shall also set forth the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor Areafloor so designated.
Appears in 1 contract
Samples: Office Lease (KBS Real Estate Investment Trust II, Inc.)
First Expansion Option. The A. Subject to the provisions of this Section 4, Tenant shall have the option (the "First Expansion Option" is ") to lease an option to include within the Demised Premises that area (the "First Expansion Space") shown of the Building consisting of a portion of the space identified on Exhibit "B-4"G to this Lease, which First Expansion Space shall be comprised of no less than 6,300 rentable square feet and no more than 11,000 rentable square feet (provided that the exact size and location of the First Expansion Space shall be determined by Landlord in its sole and absolute discretion), if:
1. The Landlord receives notice (the "First Expansion Notice") from Tenant of its exercise of its First Expansion Option Exercise Deadlineno later than September 30, 2000 (which notice shall be irrevocable on Tenant's part, but Tenant's rights shall be subject to the provisions of this Section 4); and
2. at the time Tenant delivers the First Expansion Notice:
a. a Default under this Lease has not occurred and is then continuing; and
b. the original named Tenant herein or its Affiliates continues to occupy at least one full floor of the Building pursuant to this Lease; and
c. Tenant has not exercised its Acceleration Option in accordance with Section 2 of this Rider 2; and
3. the First Expansion Space is intended for the exclusive use of Tenant and its Affiliates during the Term.
B. During the Term of the Lease, Tenant shall pay Monthly Base Rent for the First Expansion Space at the "Prevailing Market for the Expansion Space" is (as defined in subsection I below) and Rent Adjustment for the last day First Expansion Space.
C. Within a reasonable time after receipt of Augustthe First Expansion Notice, 1995. The Landlord shall prepare an amendment (the "First Expansion Rentable Floor Area" is hereby conclusively agreed by Amendment") to reflect the parties to be 10,208 square feet. The size and location of the First Expansion Space, commencement date (the "First Expansion Option Rent Commencement Date" ") of the term for the First Expansion Space (which shall be a date determined in Landlord's sole and absolute discretion, provided that said First Expansion Commencement Date shall be no earlier than October 1, 2001 and no later than September 30, 2003) and the changes in Monthly Base Rent, Rentable Area of the Premises, Tenant's Share, Acceleration Amounts (under Section 2 of this Rider 2 above), and other appropriate terms on account of the addition of the First Expansion Space to the Premises. The First Expansion Amendment shall be executed by Tenant and returned to Landlord within ten (10) days after its submission to Tenant.
D. Effective on the First Expansion Commencement Date, the First Expansion Space shall be deemed added to the Premises subject to all the terms and conditions of the Lease, except as otherwise provided in this Section 4 and except that no allowances, credits, abatements or other rent limitations set forth in the Lease shall apply to the First Expansion Space except to the extent included in the Prevailing Market for the Expansion Space.
E. The First Expansion Space shall be tendered to and accepted by Tenant in its "as-is" condition and "as-built" configuration existing on the earlier of (i) the date of occupancy of any portion Tenant takes possession of the First Expansion Space or (ii) 120 days following as of the First Expansion Commencement Date.
F. If Tenant exercises its rights hereunder by sending the First Expansion Notice as provided in subsection A.1, Tenant's rights hereunder shall, at Landlord's sole option, nevertheless terminate if, after Tenant's delivery of the First Expansion Notice but prior to the commencing of the term for the First Expansion Space, Tenant commits a default under the Lease, or assigns the Lease (other than to an Affiliate), or the original named Tenant herein or its Affiliates cease to occupy at least one full floor of the Building pursuant to this Lease or Tenant exercises its Acceleration Option Exercise Notice (pursuant to Section 2.
G. Tenant agrees that time is of the essence in connection with the valid exercise of its rights hereunder.
H. The rights of Tenant under this Section 4 are personal to the original Tenant named in this Lease and its Affiliates and are not assignable to any other person or entity.
I. For purposes of this Section 4, "Prevailing Market for the Expansion Space" means the monthly base rent and electricity charges which are being offered or which would be offered by Landlord and other landlords of comparable downtown Chicago highrise office buildings to bona fide prospective tenants with a reputation and financial condition similar to Tenant's at that time, for leases with a term commencing at or about the First Expansion Commencement Date and continuing for the period of the lease of the space in question for comparable office space and improvements therein, taking into account concessions which are or would be offered in such circumstances. If Landlord and Tenant are unable to agree as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove what the plans and specifications and contractors (if Tenant has elected to do Prevailing Market for the Expansion Space Construction itself)is for the balance of the Term with thirty (30) days after Landlord's receipt of the First Expansion Notice, submitted by Tenant, within the Prevailing Market for the Expansion Space for the balance of the Term shall be determined as follows: Within ten (10) days of Landlord's receipt thereof or, if after Landlord is doing and Tenant determine that they cannot reach an agreement as to Prevailing Market for the Expansion Space Constructionas provided above, due Landlord and Tenant, at their respective expense, shall each cause an independent MAI appraiser with not less than ten years of experience in the downtown Chicago market and then actively engaged in the real estate appraisal business in such area to Landlord's failure determine the Prevailing Market for the Expansion Space on a basis consistent with the terms of this Lease, said determination to promptly commence be made within thirty (30) days of their appointment by Landlord and diligently pursue to completion as soon as reasonably possible Tenant, respectively. In the improvements described in Tenant's plans and specifications event that the determination differs by less than ten percent (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such constructionl0%), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" Prevailing Market for the First Expansion Space shall be equal to $4.50 the average of the two. In the event that the determination differs by more than ten percent (il0%), then the two appraisers shall select a third independent MAI appraiser with the aforesaid qualifications within fifteen (15) multiplied days, the fees and expenses of which third appraiser shall be paid fifty percent (50%) by Landlord and fifty percent (50%) by Tenant. If the two appraisers cannot agree upon a third appraiser within said fifteen (15)-day period, then either Landlord or Tenant may request that one be appointed by the number local office of whole months remaining the American Arbitration Association. Said third appraiser shall, within fifteen days of his selection (or appointment, as applicable), designate which of the two determinations made by said MAI appraisers selected by Landlord and Tenant most accurately reflects Prevailing Market for the Expansion Space. The determination made in accordance with the 120-month Lease Term after the First Expansion Option Rent Commencement Date, (ii) divided by 120 foregoing shall be final and (ii) multiplied by the First Expansion Rentable Floor Areabinding on Landlord and Tenant."
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