Initial Lease Agreement Clause Samples

Initial Lease Agreement. Unless it is otherwise extended, the Lease Agreement shall expire as of December 31, 2014 (the “Initial Lease Expiration Date”). Under the Lease Agreement, Shippers Transport, the lessee, has the right to extend the Lease Agreement for an additional five (5) year term, subject to cancellation by TLO on 180 days’ notice. The Parties acknowledge that TRMC shall have a right to request that the Leased Premises be instead used for construction of additional tanks or other uses associated with the Refinery (a “Construction Project”). In such an instance, TRMC shall notify TLO, in writing (the “Construction Notice”), at least twelve (12) months prior to the proposed Lease Agreement cancellation date, of TRMC’s request to TLO that it terminate the Lease Agreement (in accordance with the terms therein and as described below). TRMC and TLO shall negotiate in good faith for a period of up to 180 days from the date of the Construction Notice (the “Negotiation Period”) to determine the pricing and other primary terms regarding the Construction Project. If the Parties agree upon mutually acceptable terms during the Negotiation Period, then TLO shall provide notice of cancellation of the Lease Agreement in accordance with its express terms, and TLO and TRMC shall enter into a Terminal Service Order that provides for TLO to provide additional services to TRMC on the Leased Premises under the negotiated terms.