Option to Remarket; Surrender Option Sample Clauses
The "Option to Remarket; Surrender Option" clause grants a party, typically a lessee or borrower, the right to either seek a new user for an asset at the end of a lease or to surrender the asset back to the lessor or lender. In practice, this means that as the lease term concludes, the lessee can attempt to find a third party to take over the asset under new terms, or, if unsuccessful or uninterested, simply return the asset as specified in the agreement. This clause provides flexibility for the lessee to avoid unwanted obligations at the end of the term and helps the lessor manage the asset's disposition, thereby reducing uncertainty and facilitating smoother transitions at lease expiration.
Option to Remarket; Surrender Option. Subject to the ------------------------------------ fulfillment of each of the conditions set forth in this Section 14.6, Lessee ------------ shall have the option to either (i) market the Leased Property for Lessor (the "Remarketing Option") or (ii) surrender the Leased Property to Lessor (the ------------------ "Surrender Option"). ---------------- Lessee's effective exercise and consummation of the Remarketing Option or the Surrender Option, as the case may be, shall be subject to the due and timely fulfillment of each of the following provisions, the failure of any of which shall render the Remarketing Option or the Surrender Option, as the case may be, and Lessee's exercise thereof null and void, in which event, Lessee shall be obligated to perform its obligations under Section 14.2. ------------
(a) Not later than 270 days prior to the Lease Termination Date, Lessee shall give to Lessor and the Agent written notice of Lessee's exercise of the Remarketing Option or the Surrender Option, as the case may be, which exercise shall be irrevocable and shall state whether Lessee has exercised the Remarketing Option or the Surrender Option.
(b) Not later than ten (10) Business Days prior to the Lease Termination Date, Lessee shall deliver to Lessor and the Agent an environmental assessment of the Leased Property dated not later than forty- five (45) days prior to the Lease Termination Date. Such environmental assessment shall be prepared by an environmental consultant approved by the Required Funding Parties in their reasonable discretion, shall be in form, detail and substance reasonably satisfactory to the Required Funding Parties, and shall otherwise indicate the environmental condition of the Leased Property to be the same as described in the Environmental Audit.
(c) On the date of Lessee's notice to Lessor and the Agent of Lessee's exercise of the Remarketing Option or the Surrender Option, as the case may be, each of the Construction Conditions shall have been timely satisfied and no Event of Default or Potential Event of Default shall exist, and thereafter, no Event of Default or Potential Event of Default shall exist under this Lease.
(d) Lessee shall have completed all Alterations, restoration and rebuilding of the Leased Property pursuant to Sections 6.1, 6.2, 10.3 and ------------ --- ---- 10.4 (as the case may be) and shall ---- have fulfilled all of the conditions and requirements in connection therewith pursuant to said Sections, in each case by...