OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 3 contracts
Samples: Lease Agreement (TGPX Holdings I LLC), Lease Agreement (TGPX Holdings I LLC), Sublease (Traeger, Inc.)
OPTION TO RENEW. 43.01. Provided that Tenant is notnot then in default of the terms, covenants, and has not been provisions of this Lease beyond any applicable notice and grace period and opportunity to cure, Landlord hereby grants to Tenant the right to renew the term of this Lease for one (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (21) additional consecutive period of five (5) year options to renew years (the "First Renewal Period") commencing on the day after the initial Expiration Date upon the same terms and extend conditions as set forth in this Lease other than the fixed annual rental which shall be the Fair Market Rental Term as provided herein (“Option”)of the Demised Premises at the time of the commencement of the First Renewal Period. Said fixed annual rental shall be payable in equal monthly installments in advance on the first day of each and every month of the First Renewal Period. The base year for calculation of additional rent for increase in taxes and operating expenses for the First Renewal Period shall be the assessed valuation of the Land and Building for the Tax Year in which the First Renewal Period shall commence, multiplied by the tax rate applicable to such period and the Base Year for Operating Expenses which shall be the first Operational Year in which the First Renewal Period shall commence. Tenant shall exercise the within Option shall only be exercised by Tenant delivering giving written notice thereof to Landlord no earlier not later than the date which is twelve nine (129) months prior to the initial Expiration Date, TIME BEING OF THE ESSENCE. If Tenant fails to give such notice, Tenant will be deemed to have waived such Renewal Option and the provisions of this Section shall be null and void.
43.02. Provided that Tenant is not then in default of the terms, covenants, and provisions of this Lease beyond any applicable notice and grace periods and has exercised its rights under Section 43.01 with respect to the First Renewal Period, Landlord hereby grants to Tenant the right to renew the term of this Lease for a second additional period of five (5) years (the "Second Renewal Period") commencing on the day after the expiration of the First Renewal Period upon the same terms and conditions as set forth in this Lease other than the fixed annual rental which shall be the Fair Market Rental Term of the Demised Premises at the time of the commencement of the Second Renewal Period. Said fixed annual rental shall be payable in equal monthly installments in advance on the first day of each and no every month of the Second Renewal Period. The base year for calculation of additional rent for increase in taxes and operating expenses for the Second Renewal Period shall be the assessed valuation of the Land and Building for the Tax Year in which the Second Renewal Period shall commence, multiplied by the tax rate applicable to such period and the Base Year for Operating Expenses which shall be the first Operational Year in which the Second Renewal Period shall commence. Tenant shall exercise the within Option by giving written notice to Landlord not later than the date which is nine (9) months prior to the expiration of the Rental Term (First Renewal Period, TIME BEING OF THE ESSENCE. If Tenant fails to give such notice, Tenant will be deemed to have waived such Renewal Option and the “Option Notice”). The Base Monthly Rent during the first year provisions of each extension periods this Section shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, null and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processvoid.
Appears in 2 contracts
Samples: Sublease Agreement (I Many Inc), Lease Agreement (Pxre Group LTD)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, 2.5.1. Tenant shall have two the option (2“Renewal Option”) additional to renew this Lease for three (3) consecutive terms of five (5) year options years each (each, a “Renewal Term”), on all the same terms and conditions set forth in this Lease, except that initial Base Rent during any Renewal Term shall be equal to renew Fair Market Rent (as defined in Section 2.5.2 below), and extend as of the Rental first anniversary of the commencement of each Renewal Term as provided herein and continuing on each anniversary thereof through the remainder of that Renewal Term, the Base Rent shall increase at the rate of two percent (2.0%), per annum, on a compounded basis. Tenant shall deliver written notice to Landlord of Tenant’s election to exercise the Renewal Option (“OptionRenewal Notice”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier ) not less than the date which is twelve (12) months months, nor more than eighteen (18) months, prior to the expiration date of the Rental original Term or the then-current Renewal Term, as applicable; and if Tenant fails to timely deliver a Renewal Notice to Landlord, then Tenant shall automatically be deemed to have irrevocably waived and relinquished the Renewal Option.
2.5.2. For the purposes of this Lease, “Fair Market Rent” shall be determined by Landlord, in good faith, based upon the annual base rental rates then being charged in the industrial market sector of the geographic area where the Building is situated for comparable space and for a lease term commencing on or about the commencement date of the applicable Renewal Term and no later than the date which is nine (9) months prior equal in duration to the expiration applicable Renewal Term, taking into consideration: the geographic location, quality and age of the Rental Term Building; the location and configuration of the relevant space within the Building; the extent of service to be provided to the proposed tenant thereunder; applicable distinctions between “gross” and “net” leases; the creditworthiness and quality of Tenant; leasing commissions; and any other relevant term or condition in making such evaluation, all as reasonably determined by Landlord. In no event, however (and notwithstanding any provision to the contrary in this Section 2.5), shall the Fair Market Rent be less than an amount equal to the Base Rent in effect during the one (1) year period immediately preceding the expiration date of the then-applicable term (the “Option NoticeRenewal Rent Floor”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a Rent for any Renewal Term, in writing (the “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessBase Rent Notice”) within sixty (60) days after receiving the applicable Renewal Notice.
Appears in 2 contracts
Samples: Industrial Building Lease (Lenox Group Inc), Purchase and Sale Agreement (Lenox Group Inc)
OPTION TO RENEW. Provided that Tenant is not, not in default under this Lease and provided that the Lease has not been (more than two (2) times), in terminated as a result of Tenant’s default under any of the terms and conditions contained hereinor other acts or failures to act by Tenant, Tenant shall have an option to renew the Lease for two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein terms (each an “OptionExtended Term”). The Option Tenant shall only be exercised by Tenant delivering written notice thereof to provide Landlord no earlier with at least six (6) months but not more than the date which is twelve (12) months prior written notice indicating its intention to exercise such option to renew. The rights contained in this Article 39 shall be personal to the expiration of originally named Tenant and may not be assigned nor transferred except with Landlord’s written consent.
39.1 The monthly base rent during the Rental Extended Term and no later than the date which is nine (9) months prior shall be an amount equal to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Prevailing Rate (as hereinafter defined) at the time of the commencement of the Extended Term for space leased within the previous six months that are Comparable Transactions, as defined below. The term “Prevailing Rate” shall mean the monthly rent per rentable square foot that Landlord has accepted in contemporaneous transactions between nonaffiliated parties for non-expansion, renewal and non-equity tenants of comparable creditworthiness, for comparable space within space, comparable use and comparable lease terms (collectively, “Comparable Transactions”) in the ProjectBuilding. If there are no Comparable Transactions in the Building, then the Prevailing Rate shall be prevailing fair market rental value for Comparable Transactions in the Project area. In any determination of Comparable Transactions, appropriate consideration shall be given to the rental rates, abatement provisions or other concessions, brokerage commissions, if any, that actually have been paid by Landlord (or other landlords) in similar transactions, length of the lease term, size and location of the premises being leased, building standard tenant improvement allowances, if any, and (ii) other generally applicable conditions of tenancy. The intent is that Tenant will obtain the Base Monthly Rent then same rent and other economic benefits that Landlord would otherwise give in effect for Comparable Transactions and that Landlord will make and receive the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, same economic payments and location concessions that Landlord would otherwise make and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided receive in Exhibit “F” – Market Assessment ProcessComparable Transactions.
Appears in 2 contracts
Samples: Lease (National Mercantile Bancorp), Lease (National Mercantile Bancorp)
OPTION TO RENEW. Provided Tenant is not(A) Subject to the provisions set forth below, and has not been the Lease Term may be renewed, at the option of Tenant, for one (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (21) additional consecutive five period of 60 months (5) year options to renew and extend the Rental Term as provided herein (“OptionRenewal Term”). The Option shall only Renewal Term will be upon the same terms, covenants and conditions contained in this Lease, excluding the Work Letter Agreement, and except for the amount of Base Rent payable during the Renewal Term. Any reference in this Lease to the “Term” will be deemed to include the Renewal Term and apply thereto, unless it is expressly provided otherwise. Tenant will be deemed to have accepted the Premises in “as-is” condition as of the commencement of the Renewal Term, it being understood that Landlord will have no obligation to renovate or remodel the Premises or any portion of the Building as a result of Tenant’s renewal of this Lease. Tenant will have no renewal option beyond the aforesaid 60-month period.
(B) The initial Base Rent during the Renewal Term for the Premises will be at a rate equal to the Fair Market Rent (as defined below) for a term equal or comparable to the Renewal Term and taking into account any Fair Market Allowance (as defined below) given. Tenant’s obligation to pay Tenant’s Share of Taxes and Expenses pursuant to this Lease will continue during the Renewal Term. If Tenant exercises the renewal option, Landlord will grant Tenant a Fair Market Allowance for construction of tenant improvements to the Premises for the Renewal Term.
(C) Such option to renew will be exercised by Tenant by delivering written its initial binding notice thereof to Landlord no earlier than in which Tenant expresses its intention to exercise such option to renew (i) if the date which is twelve (12) months prior to the expiration then existing Premises consists of the Rental Term and Premises initially leased hereunder, such notice shall be delivered to Landlord no later than the date which is nine (9) months 270 days prior to the expiration Expiration Date, and not earlier than 90 days before such date, or (ii) if the then existing Premises consists of the Rental Term Premises initially leased hereunder plus additional premises in the Building, such notice shall be delivered to Landlord no later than the date which is 365 days prior to the Expiration Date, and not earlier than 90 days before such date. Thereafter, Landlord will notify Tenant (the “Option Landlord’s Notice”). The Base Monthly Rent during the first year ) of each extension periods shall be the lesser of: Landlord’s calculation of (i) the then current Fair Market Rate (as defined) Rent for comparable space within the ProjectPremises that would be payable per annum for a term commencing on the first day of the Renewal Term, and (ii) the Base Monthly Rent then Fair Market Allowance applicable for such Renewal Term. If Tenant fails to give its initial binding notice of intent to exercise its option to renew when due as provided in effect for the Leased Premises during the last month this Article 32, time being of the initial Rental Term essence, Tenant will irrevocably be deemed to have waived such option to renew.
(increasing each year thereafter by 3%D) Within twenty (20) days after Landlord delivers Landlord’s Notice, compounded). “Tenant will deliver to Landlord a final binding notice in which Tenant (i) elects to renew this Lease and accepts the terms stated in Landlord’s Notice, or (ii) elects to renew this Lease but disputes Landlord’s determination of Fair Market Rate” means Rent or Fair Market Allowance or both, in which event the market rate for rent chargeable for parties will proceed with the Leased Premises based upon dispute resolution mechanism set forth in Exhibit E attached hereto. If Tenant fails to notify Landlord within the 20-day period described above (after having given its initial binding notice within the required time), time being of the essence, then Tenant will conclusively be deemed to have elected to renew this Lease on the terms set forth in Landlord’s Notice and in this Article 32. After Tenant delivers its binding notice exercising its option to renew or after the conclusion of any dispute resolution process, Landlord will deliver to Tenant an amendment to this Lease reflecting the terms of the renewal, and Tenant will execute such amendment and deliver it to Landlord within 30 days after receipt. If Tenant fails to execute and deliver to Landlord the requisite amendment to this Lease within 30 days after Landlord’s delivery of such amendment to Tenant, such failure (i) will, if Landlord so elects in Landlord’s sole and absolute discretion, render Tenant’s exercise of such option to renew null and void; and (ii) will, if Landlord’s so elects in Landlord’s sole and absolute discretion, constitute a Default.
(E) Tenant’s right to exercise its option to renew this Lease pursuant to this Article 32 is subject to the following factors applicable conditions: (i) that on the date that Tenant delivers notice of its election to exercise its option to renew, and at the Leased commencement of the Renewal Term, no Default exists; and (ii) that Tenant has not assigned this Lease or sublet the Premises or any comparable premises: rentportion thereof, escalationother than to a Permitted Affiliated Transferee, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity at any time during the period commencing with the date that Tenant delivers its notice to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s exercise of such option to renew and ending on the commencement date of the Renewal Term, or at any time prior to such period, if such assignment or sublease extends into such period.
(F) For purposes of this Lease, “Fair Market Rate Rent” means a rate comprised of (i) the prevailing basic rental rate per square foot of rentable space available for renewals in the applicable renewal periodPertinent Market (defined below), and (ii) any financial escalation of such prevailing base rental rate (based upon a fixed step or index) prevailing in the Pertinent Market, taking into account comparable leases (on the basis of factors such as, but not limited to, size and location of space and commencement date and term of lease) of space in buildings in Portland. If Landlord disagrees with Tenant’s opinion Oregon that are comparable to the Building in reputation, quality, age, size, location and level and quality of services provided (the foregoing factors not being exclusive in identifying comparable buildings) (the Building and such comparable buildings, as the case may be, being herein referred to as the “Pertinent Market”). For purposes of this Lease, “Fair Market Allowance” means the prevailing leasehold improvement allowance for renewals available in the Pertinent Market, taking into account comparable lease renewals (on the basis of factors such as, but not limited to, size and location of space and commencement date and term of lease), and the rental rate. In determining the Fair Market RateRent and Fair Market Allowance, there will also be taken into consideration (a) the definition of rentable area or net rentable area with respect to which such rental rates are computed; (b) whether the lease comparable is a net or gross lease; (c) the value of rental abatements, allowances for construction of tenant improvements and other financial or economic concessions generally available in the Pertinent Market at such time to tenants renewing comparable space, as well as those being made available to Tenant; and (d) other comparable pertinent factors. Taking into account Tenant’s creditworthiness, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord may require a security deposit or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided an increase in Exhibit “F” – Market Assessment Processany existing security deposit before disbursing any such allowance.
Appears in 2 contracts
Samples: Office Lease (New Relic Inc), Office Lease (New Relic Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year renewal options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration for all or any part of the Rental Term Premises during the Term, provided that any space not included in the renewal shall be leaseable to another tenant. Such renewals shall be upon the same terms and no later than conditions of the date which is Lease except the rental rate shall be established at 95% of prevailing fair market rate (Market Definition defined below) for the Premises, factoring in all market concessions including a refurbishment allowance. Tenant shall provide Landlord with a minimum of nine (9) months prior written notice of its intention to exercise its extension option. For the expiration purpose of any extension or renewal of the Rental Term (Lease, the “Option Notice”). The Base Monthly Rent during the first year of each extension periods market rate shall be the lesser ofrate that is charged to non-renewing/non-extending tenants for space of comparable size, location and conditions in comparable Buildings within the market area. The market rate should take into consideration the following: location, quality, age, floor levels, common area factors, finish allowances, rental abatements, parking charges, lease assumptions, refurbishment allowances, credit standing of tenant, lease term and any other terms that would be relevant in making a market rate determination. Final I-405 CAPA Lease 9-12-07 1 Please Initial _______ Disagreement on the prevailing fair market rate shall be decided by binding arbitration as follows:
(ia) A board of appraisers consisting of three persons shall be selected, one appointed by Landlord, one by Tenant, and the then third appointed by the first two appraisers. Each appraiser must be a certified MAI Appraiser with at least five (5) years of experience in the local rental real estate market.
(b) Upon the appointment of an appraiser by one party, the other party shall appoint its appraiser within ten (10) days after receipt of written notice of the appointment of the first appraiser. The third appraiser shall be appointed within ten (10) days after the second appraiser has been appointed. If either Landlord or Tenant shall fail to appoint a qualified and willing appraiser within the time specified, the appraiser appointed by the other party shall set as the sole appraiser thereunder. If for any reason a third appraiser is not appointed within ten (10) days, then, at the instance of either party, such appointment shall be made by the Presiding Judge of the Superior Court of the State of Washington for King County, or if he is unable or unwilling to so act, by any other Judge of said court willing to so act.
(c) The appraisers shall determine the fair rental value of the Premises as of the date above stated. In determining such fair rental value, the appraiser shall take into account current Fair Market Rate (as defined) real estate values and going rental rates for comparable space within premises in comparable locations in the Project, Seattle Metropolitan Area and all other circumstances ordinarily regarded by real estate appraisers as material.
(iid) the Base Monthly Rent then in effect for the Leased Premises during the last month The determination of the initial Rental Term (increasing each year thereafter by 3%appraisers, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: renta majority thereof, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate be made in writing within fifteen (15) business days after receipt the appointment of Tenant’s opinion appraisers has been completed thereunder. Such determination of Fair Market Rate (“Landlord’s Value Notice”). If the fair rental value by the appraisers thereunder shall be conclusive and binding on the parties are unable to resolve their differences within thirty hereto.
(30e) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as Fees and expenses of the last day third appraiser shall be paid one-half by Landlord and one-half by Tenant. The fees of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processappraisers appointed by each party shall be paid by that party.
Appears in 2 contracts
Samples: Office Space Lease (Captaris Inc), Office Space Lease (Captaris Inc)
OPTION TO RENEW. Provided that Tenant is not, and has not been (more than two (2) times), then in default under any of the terms covenants, terms, conditions, and conditions contained hereinprovisions of this Lease, then Tenant shall have two Two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein this Lease (each an “Option”). The Option shall only be exercised by ) for consecutive Ten (10) year option periods, provided that, in order to exercise this Option, Tenant delivering is required to give to Landlord written notice thereof to Landlord no earlier not less than the date which is twelve Six (126) months prior to the expiration of the Rental Term and no later before nor more than the date which is nine Nine (9) months prior to the date of expiration of the Rental Term (of this Lease or the “then expiring option period. Other than Base Rent due under the Option Notice”Term(s). The Base Monthly Rent during the first year of each extension periods , any renewal pursuant to this Option shall be on the lesser of: (i) same terms and conditions as contained in this Lease.
4.1.1 In the then current event that Tenant exercises its option to extend the term of this lease, the Landlord shall provide written notice to Tenant of the amount which, in Landlord’s reasonable opinion, represents the Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term upcoming Option Term. Tenant shall have twenty (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (3020) days from receipt of Option Notice, said written notice to respond to Landlord in writing as to whether or not Tenant shall notify Landlord of Tenantagrees with Landlord’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion determination of the Fair Market Rate, Landlord Rent. Tenant’s failure to respond within said twenty (20) day period shall notify Tenant of be deemed to be Tenant’s agreement with the Landlord’s opinion determination of Base Rent. In the event Tenant disagrees with the Landlord’s determination, the following procedure shall be used in determining Fair Market Rate Rent for the Option Term: The parties shall jointly choose an impartial real estate appraiser who shall review the market comparables and provide a written assessment of the Fair Market Rent for the Premises. This written assessment shall determine the Base Rent for the Option Term and shall be final and binding; however, under no circumstance will the Base Rent for the Option Term be less than the Base Rent for then current Lease year.
4.1.2 In the event that Landlord and Tenant cannot agree on an impartial real estate appraiser within fifteen Sixty (1560) days after receipt of Tenant’s opinion notice of Fair Market Rate dissent, or if the mutually selected real estate appraiser cannot provide a written assessment within Forty-Five (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (3045) days thereafterof Landlord and Tenant’s joint request, either the Tenant or Landlord or Tenant, at its sole option, may terminate the Lease by providing written notice to the other, failing which, this Lease, effective as Lease shall become a month-to-month lease upon the expiration of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessLease term.
Appears in 2 contracts
Samples: Lease (Radiation Therapy Services Holdings, Inc.), Lease (Radiation Therapy Services Inc)
OPTION TO RENEW. Provided Landlord hereby grants to Tenant is notthe option to renew the Lease, and has not been (more than two (2) times), in default under any for an additional term of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend years (the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than "Renewal Term") with the date which is twelve (12) months prior to option commencing on the expiration of the Rental Lease (the "First Renewal Commencement Date") and ending five (5) years thereafter (the "First Renewal Expiration Date").
1. The lease of the Leased Premises for either of the Renewal Terms shall be on the same terms and conditions as set forth in the Lease, except:
A. That the rental for the Leased Premises during the Renewal Term and no later shall be as set forth below in Paragraph 3, and
B. That the Security Deposit shall be increased to the rental amount determined in Paragraph 3 {the "increased Security Deposit Amount").
2. Tenant shall notify Landlord of Tenant's exercise of its right to renew the Lease for the Renewal Term only by giving to Landlord written notice not sooner than the date which is nine (9) months prior to the expiration Renewal Commencement Date and not later than six (6) months prior to the Renewal Commencement Date (time is expressly of the Rental Term (the “Option Notice”essence to Landlord). The Any attempted exercise of this Option made other than within the time period stated or in the manner stated shall be void and of no force or effect. In the event that Tenant does not or is not entitled to exercise its option Tenant shall have no further rights hereunder.
3. If Tenant shall have properly and timely exercised its right to extend the term of the Lease, the term of tl3e Lease shall be so extended for the Renewal Term on the same terms and conditions contained in the Lease; provided, however, the Base Monthly Rent during for each month of the first year thirty (30) months of each extension periods the Renewal Term shall be calculated as follows: The new Base Monthly Rent for the Renewal Term shall be the lesser greater of: (i) the then current Fair Market Rate (as defined) for comparable space within Base Monthly Rent being paid by Tenant to Landlord during the Projectfinal full month of the final year of the initial Lease Term, and or (ii) the Base Then Market Rental Rate for the Lease Premises.
4. The term "Then Monthly Rent Market Rental Rate" shall be determined by mutual agreement between Landlord and Tenant or, in the event such agreement cannot be made within ten (10) days from the date Tenant shall have exercised this option, Landlord and Tenant shall each appoint a real estate appraiser with at least five (5) years full-time commercial/industrial appraisal experience in Santa Xxxxx County to appraise and determine the fair market monthly rental rate the Leased Premises, in their then existing condition for the use specified in effect the Lease could be leased for, on the same terms and conditions set forth in the Lease, to a qualified tenant ready, willing and able to lease the Leased Premises for a term equal to the Renewal Term. If either party does not appoint an appraiser within ten (10) days after the other party has given notice of the name of its appraiser, the other party can then apply to the President of the Santa Xxxxx County Real Estate Board or the presiding Judge of the Superior Court of that County for the selection of a second appraiser who meets the qualifications stated above. The failing party shall bear the cost of appointing the second appraiser and of paying the second appraiser's fee. The two appraisers shall attempt to establish the Then Monthly Market Rental Rate for the Leased Premises. If the two appraisers are unable to agree on the Then Monthly Market Rental Rate for the Leased Premises within ten (10) days after the second appraiser has been selected or appointed, then the two appraisers shall attempt to select a third appraiser meeting the qualifications stated above. If they fail to agree on a third appraiser, either party can follow the above procedure for having an appraiser appointed by the Real Estate Board or a judiciary. Each of the parties shall bear one-half (1/2) of the cost of appointing the third appraiser and of paying the third appraiser's fee. Unless the three appraisers are able to agree on the Then Monthly Market Rental Rate for the Leased Premises within ten (10) days after the selection or appointment of the third appraiser, the two appraisal amounts being calculated most closely together, after having discarded the appraisal amount which most greatly varies from the other two appraisal amounts, shall be added together then divided by two (2). The resulting rental amount shall be defined as the. Then Monthly Market Rental Rate for the Leased Premises. In no event, however, shall the resulting Then Monthly Market Rental Rate for the Renewal Term be less than the Base Monthly Rent paid during the last final full month of the initial Rental Lease Term. The Base Monthly Rent shall be adjusted at the end of the thirtieth (30th) month of the Renewal Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means multiplying the market rate for rent chargeable Base Monthly Rent for the Leased Premises based upon thirtieth (30th) month times a fraction the following factors applicable numerator of which shall be the Consumer Price Index published immediately prior to the Leased Premises or any comparable premises: rentperiod including the thirtieth (30th) month of the Renewal Term and the denominator of which shall be the Consumer Price Index published immediately prior to the first (1st) month of the Renewal Term. In no event, escalationhowever, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within shall the Base Monthly Rent for the last thirty (30) days months of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate either Renewal Term be less than the Base Monthly Rent for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within first thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as months of the last day of the then-current Rental Renewal Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 2 contracts
Samples: Industrial Space Lease (Atroad Inc), Industrial Space Lease (Atroad Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, A. Tenant shall have the option (but shall not be required) to extend the Lease Term with respect to all (but not less than all) of the Premises for two (2) additional consecutive periods of five (5) year options to renew and extend years, each (the Rental Term as provided herein (“OptionExtension Term(s)”). The Option shall only be exercised Tenant may elect to exercise such option(s) by Tenant delivering written notice thereof to received by Landlord no earlier not less than the date which is twelve eighteen (1218) months prior to the expiration of the Rental Term Lease Term, or the first Extension Term, as the case may be, time being of the essence for the giving of such notice. During the Extension Term(s), the Lease will continue on the terms and no later conditions set forth herein, other than the date Base Rent, which is nine (9) months prior shall be adjusted to the expiration current “Market Rental Rate” for the Premises as of the date the applicable Extension Term is to commence with appropriate increases each year thereafter.
B. Landlord shall advise Tenant of the Market Rental Rate for the applicable Extension Term within twenty (20) days after the “Option Notice”). The Base Monthly Rent during the first year earlier of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Projecta request therefore from Tenant, and or (ii) Landlord’s receipt of Tenant’s notice exercising a renewal option. Tenant’s failure to timely make such request shall not extend the Base Monthly Rent then in effect date upon which Tenant must give notice of its exercise of the option to renew. Tenant shall have twenty (20) days from the receipt of Landlord’s notice to either accept or dispute Landlord’s determination of the Market Rental Rate. In the event that Tenant disputes Landlord’s determination, Tenant shall so notify Landlord and advise Landlord of Tenant’s determination of the Market Rental Rate for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%Renewal Term. If, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based after engaging in good faith negotiations, Landlord and Tenant cannot agree upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within Market Rental Rate within thirty (30) days of Option Notice, Tenant shall notify Landlord after Landlord’s receipt of Tenant’s option notice of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenantobjection to Landlord’s opinion determination of the Fair Market Rental Rate, Landlord the “Dispute Resolution Mechanism” described in subparagraph C below shall notify Tenant of Landlord’s opinion of Fair Market Rate within apply.
C. The Dispute Resolution Mechanism shall be as follows: no later than fifteen (15) days after receipt the end of Tenant’s opinion the 30-day period described in subparagraph B above, Landlord and Tenant shall jointly appoint as arbitrator a commercial real estate broker licensed in Michigan with a minimum of Fair Market Rate five (“Landlord’s Value Notice”)5) years experience in the applicable office market. If the parties are unable to resolve their differences Landlord and Tenant cannot agree on an acceptable arbitrator, Landlord and Tenant shall each choose, within thirty an additional fifteen (3015) days thereafter, its own arbitrator who meets the qualifications described above. The arbitrators shall then jointly select, within an additional ten (10) days, an arbitrator to serve as the arbitrator hereunder. If either Landlord or Tenant fails to choose its own arbitrator within said fifteen (15) day period, then the arbitrator chosen by the other shall resolve the dispute. Within ten (10) days after appointment (whether mutually by the parties, by default of one party to choose an arbitrator, or by selection by the two arbitrators), Landlord and Tenant shall each submit to the arbitrators) in writing its good faith estimate of the Market Rental Rate for the Extension Term. Within ten (10) days after receipt of the last of the determinations, the arbitrators) shall choose either Landlord’s or Tenant’s determination of Market Rental Rate. The cost of the arbitrator(s) shall be borne by the party whose determination of the Market Rental Rate was not selected by the arbitrator.
D. Tenant’s exercise of the foregoing option to renew is subject to the conditions that (i) the Lease is in full force and effect, (ii) Tenant is not in default hereunder beyond any applicable notice or cure period at its sole optionthe time of notification or at any time after notification and through commencement of the Renewal Term, may terminate (iii) neither the Premises nor any part thereof have been sublet (other than a Permitted Transfer), (iv) Tenant has not assigned the Lease (other than a Permitted Transfer), (v) Tenant is an occupant of the Premises under this Lease and intends to continue to use the Premises itself, and (vi) that both at the time of notification and commencement there has been no material adverse change in the financial condition of the Tenant since the date of the Lease, as reasonably determined by Landlord.
E. For purposes of this Lease, effective “Market Rental Rate” shall mean the rental, as of the last day date for which such Market Rental Rate is being calculated, per annum per rentable square foot, for lease renewals for comparable space of comparable size, which Landlord is offering or prepared to offer for renewals in good faith at that time to third parties for a similar term for such other space in the Building, as well as in other comparable buildings within a five (5) mile radius of the then-current Rental Term. AlternativelyProperty, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processtaking into account prevailing market conditions.
Appears in 2 contracts
Samples: Sublease Agreement (Voyager Learning CO), Office Lease (Proquest Co)
OPTION TO RENEW. Provided Landlord grants to Tenant is not, and has not been an option to extend the Lease Term for three (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (23) additional consecutive terms of five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term years each (the “Option NoticeExtended Term”), commencing on the expiration date of the original Lease Term, upon the same terms and conditions as set forth in this Lease, except as provided in this Section with respect to Base Rent; provided, however, that no Event of Default by Tenant has occurred that has not been cured at any time such option is to be exercised. The Base Monthly Rent during for the first year of each extension periods Extended Term shall equal the Market Rate for the Premises in “as is” condition, which shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space determined within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days after Tenant exercises its option to extend the Lease Term. The Base Rent shall be determined for the entire Premises, including the Expansion Premises, if applicable. The Base Rent may be adjusted upwards, but in no event shall be adjusted downwards from the preceding year’s Base Rent, based on the determination of Option Noticethe Market Rate applicable to the Premises. The Base Rent for the entire Premises, including the Expansion Premises if applicable, during any Extended Term shall increase in accordance with the amount determined at the time the Market Rate is set, which shall be at least [***] per twelve (12) month period. If Landlord and Tenant shall notify Landlord of Tenant’s option of Fair cannot agree [***]: Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. on a Market Rate for the applicable renewal Extended Term within the above-stated thirty (30) day period. If , then Tenant shall provide Landlord disagrees with Tenant’s opinion written notice of the Fair name of an appraiser selected by Tenant to determine the Market RateRate for the Premises. Within fifteen (15) days after Tenant provides such notice, Landlord shall notify provide written notice to Tenant of Landlord’s opinion the name of Fair an appraiser selected by Landlord to determine the Market Rate for the Premises. The two appraisers shall then jointly determine the Market Rate for the Premises for the Extended Term and provide a written report of same to Landlord and Tenant. If the two appraisers cannot agree on a Market Rate for the Premises within fifteen (15) days after receipt of Tenant’s opinion of Fair Tenant receives notice from Landlord identifying its appraiser, then the two appraisers shall jointly select a third appraiser, which third appraiser shall solely determine the Market Rate (“Landlord’s Value Notice”). If for the parties are unable Extended Term and provide a written report of same to resolve their differences Landlord and Tenant within thirty (30) days thereafterof his or selection. Such determination of the Market Rate by the third appraiser shall be binding on Landlord and Tenant. Each party shall pay the cost of its appraiser and one-half (1/2) the cost of the third appraiser. The appraisers shall be M.A.I. appraisers unless Landlord and Tenant otherwise agree in writing. If Landlord fails to choose an appraiser as provided above, then the appraiser chosen by Tenant shall be deemed to be acceptable to Landlord. If Tenant fails to choose an appraiser as provided above, then the appraiser chosen by Landlord shall be deemed to be acceptable to Tenant. Should Tenant elect to exercise any option for an Extended Term, Tenant shall do so by providing written notice to Landlord at least twelve (12) months before the expiration of the Lease Term or the then current Extended Term for which an option has been exercised. If Tenant does not exercise an option to extend the Lease Term or the then Extended Term within the period allowed, all unexercised options to renew shall be null, void and of no further force or effect. No later than fifteen (15) months prior to the date Tenant desires to exercise the option to extend the Lease Term or the then Extended Term, Tenant may (but is not obligated to) make a written request to Landlord to provide Tenant with Landlord’s proposed Market Rate (as that term is defined below) for the Extended Term. If Tenant makes such a request, Landlord shall furnish Tenant with Landlord’s proposed Market Rate (as well as copy of any third party, non-confidential information Landlord used in determining the proposed Market Rate) no later than thirty (30) days after Landlord’s receipt of Tenant’s written request. If Tenant properly exercises the option to extend the Lease Term or the then Extended Term, then prior to the date Tenant is required to identify an appraiser (as set forth in this Section) Tenant may (but is not obligated to) provide Landlord with written notice that Tenant accepts the proposed Market Rate as the Market Rate for the Extended Term, in which case that shall be the Market Rate. If Tenant does not provide Landlord with a written notice that Tenant accepts the proposed Market Rate as the Market Rate for the Extended Term during the time period specified in the foregoing sentence, the parties shall either negotiate a mutually agreeable Market Rate, or if they are unable to do so, the parties shall pursue the appraisal process outlined in this Section. The Market Rate and related information provided by Landlord to Tenant under this paragraph shall be treated as confidential by Tenant, at its sole option, may terminate this Lease, effective as of shall not be disclosed by Tenant to any third party and shall not be used by Tenant or any appraiser to advocate for or set the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessRate.
Appears in 2 contracts
Samples: Lease Agreement (Ulta Salon, Cosmetics & Fragrance, Inc.), Lease Agreement (Ulta Salon, Cosmetics & Fragrance, Inc.)
OPTION TO RENEW. Provided that Tenant is not, in full occupancy and has not been (more than two (2) times), in there exists no default under any by Tenant at the time of Tenant’s exercise of its option hereunder or on the commencement date of the terms and conditions contained hereinRenewal Option Term, Tenant shall have two the right and option to renew (2the “Renewal Option”) additional consecutive this Lease for one (1) five (5) year options to renew and extend renewal term (the Rental Term as provided herein (“OptionRenewal Option Term”). The Tenant shall exercise the Renewal Option shall only be exercised by Tenant delivering giving written notice thereof to Landlord no earlier than of such election to extend the date which is Lease Term at least twelve (12) months prior to the expiration termination of the Rental then-current term. Fixed Rent for the Renewal Option Term shall be the then-current Fair Market Value (“FMV”) for lease renewal transactions for comparable laboratory and office space located in the Seaport commercial markets surrounding the Building. Tenant shall have no later than further renewal options unless expressly granted by Landlord in writing. Landlord shall lease to Tenant the date which is nine Premises for the Renewal Option Term in their then-current condition, and Landlord shall not provide to Tenant any allowances (9e.g., moving allowance, construction allowance and the like) months prior or other tenant inducements. The FMV for the Renewal Option Term shall be based, as applicable, on comparable laboratory and office space located in the Seaport commercial markets surrounding the Building, taking into account all relevant factors, including, without limitation, the size of the Premises, the condition of the Premises, the prevailing market conditions, and the other payments required of Tenant under the Lease. If after one hundred twenty (120) days of the valid exercise by Tenant of the Renewal Option, Landlord and Tenant have failed to reach an agreement as to the expiration FMV of the Rental Term Premises, such FMV shall be determined by the following appraisal process (the “Option NoticeAppraisal Process”)): Either Landlord or Tenant (the “Initiating Party”) shall initiate the proceedings for such determination by notice to the other, and by designating the name and address of an MAI appraiser willing to act in such determination. The Base Monthly Rent during Within fifteen (15) days after receipt by the first year other party (the “Responding Party”) of each extension periods such notice, the Responding Party shall, by notice to the Initiating Party, designate the name and address of another MAI appraiser willing to so act. If the Responding Party shall fail, neglect, or refuse within said fifteen (15) day period to designate another appraiser willing to so act, the appraiser designated by the Initiating Party shall alone conduct the appraisal. All appraisers designated above shall have not less than ten ( 10) years experience dealing with property similar to the Premises. Such appraisers shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable instructed to the Leased Premises deliver their written appraisals on or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within before thirty (30) days following the expiration of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal said fifteen (15)-day period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt the delivery of all such appraisals Landlord and Tenant do not agree in writing upon the FMV of the Premises, then within ten (10) days following the expiration of said fifteen (15)-day period Landlord and Tenant shall select an appraiser (the “Neutral Appraiser”) qualified in the same manner as Landlord’s and Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences appraisers appointed above, and within thirty (30) days thereafter, thereafter the Neutral Appraiser shall deliver to Landlord and Tenant its determination of the FMV of the Premises without knowledge of the determination by either Landlord’s or Tenant’s appraiser. The FMV shall be the determination by Landlord’s or Tenant’s appraiser which is closest to the determination of the Neutral Appraiser. Each of Landlord and Tenant shall bear the cost and expenses of its own appraiser and shall bear equally the costs and expenses of any Neutral Appraiser. If Landlord and Tenant do not timely agree upon or select a Neutral Appraiser, at its sole optionthen Landlord shall so notify the president of the Greater Boston Real Estate Board, may terminate who then shall appoint the Neutral Appraiser (who shall be qualified in the same manner as Landlord’s and Tenant’s appraisers appointed above). Notwithstanding the result of the Appraisal Process, in no event shall the Fixed Rent (exclusive of payments on account of real estate taxes, CAM charges, additional charges and other amounts provided in the Lease) for the Renewal Option Term be less than the Fixed Rent in effect for the year immediately preceding the commencement of the Renewal Option Term. Landlord and Tenant agree to execute and deliver a certificate confirming the exact amount of Fixed Rent payable for the Renewal Option Term, which certificate shall be attached to, and become a part of, this Lease, effective as but the failure of either party to execute and deliver such confirmatory certificate shall not affect or impair the last day validity of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processsuch determination.
Appears in 2 contracts
Samples: Lease Agreement (Akouos, Inc.), Lease Agreement (Akouos, Inc.)
OPTION TO RENEW. Provided this Lease is in full force and effect and Tenant is not, and has not been (more than two (2) times), in default under any of the other terms and conditions contained hereinof this Lease at the time of notification, Tenant shall have two one (21) additional consecutive option to renew (the “Renewal Option”) this Lease for a term of five (5) year options to renew and extend years (the Rental Term as provided herein (“OptionRenewal Term”). The Option shall only be exercised , for the portion of the Premises being leased by Tenant delivering as of the date the Renewal Term is to commence, on the same terms and conditions set forth in this Lease, except as modified by the terms; covenants and conditions as set forth below:
A. if Tenant elects to exercise the Renewal Option, then Tenant shall provide Landlord with written notice thereof to Landlord no earlier than the date which is fifteen (15) months prior to the expiration of the Term of this Lease but no later than the date which is twelve (12) months prior to the expiration of the Rental Term of this Lease. If Tenant fails to provide such notice, Tenant shall have no further or additional right to extend or renew the Term of this Lease.
B. The Annual Rent and Monthly Installment of Rent in effect at the expiration of the Term of this Lease shall be increased to reflect the Prevailing Market (as defined in Section 34.I.) rate. Landlord shall advise Tenant of the new Annual Rent and Monthly Installment of Rent for the Premises no later than thirty (30) days after receipt of Tenant’s written request therefor. Said request shall be made no earlier than thirty (30) days prior to the first date on which is nine Tenant may exercise its Renewal Option under this Article 34. Said notification of the new Annual Rent and Monthly Installment of Rent may include a provision for its escalation to provide for a change in the Prevailing Market rate between the time of notification and the commencement of the Renewal Term. Notwithstanding anything to the contrary set forth herein, in no event shall the rate of the Annual Rent and Monthly Installment of Rent for the Renewal Term he less than the rate of the Annual Rent and Monthly Installment of Rent in the preceding period (9the “Minimum Renewal Rental Rate”).
C. If Tenant and Landlord are unable to agree on a mutually acceptable Annual Rent and Monthly Installment of Rent for the Renewal Term not later than sixty (60) months days prior to the expiration of the Rental initial Term, then Landlord and Tenant, within five (5) days after such date, shall each simultaneously submit to the other, in a sealed envelope, its good faith estimate of the Prevailing Market rate for the Premises during the Renewal Term (collectively referred to as the “Option NoticeEstimates”), subject to the terms of Section 34.E below regarding the Minimum Renewal Rental Rate. The Base Monthly Rent during If the first year higher of each extension periods such Estimates is not more than one hundred five percent (105%) of the lower of such Estimates, then the Prevailing Market rate shall be the lesser of: average of the two Estimates. If the Prevailing Market rate is not established by the exchange of Estimates, then, within seven (i7) Business Days after the then current Fair exchange of Estimates, Landlord and Tenant shall each select an appraiser to determine which of the two Estimates most closely reflects the Prevailing Market Rate rate for the Premises during the Renewal Term. Each appraiser so selected shall be certified as an MAI appraiser or as an ASA appraiser and shall have had at least five (as defined5) for comparable space years experience within the Projectprevious ten (10) years as a real estate appraiser working in the San Mateo/Xxxxxx City/Redwood Shores, California area, with working knowledge of current rental rates and practices. For purposes hereof, an “MAI” appraiser means an individual who holds an MAI designation conferred by, and is an independent member of, the American Institute of Real Estate Appraisers (iior its successor organization, or in the event there is no successor organization, the organization and designation most similar), and an “ASA” appraiser means an individual who holds the Senior Member designation conferred by, and is an independent member of the American Society of Appraisers (or its successor organization, or, in the event there is no successor organization, the organization and designation most similar).
D. Upon selection, Landlord’s and Tenant’s appraisers shall work together in good faith to agree upon which of the two Estimates most closely reflects the Prevailing Market rate for the Premises. The Estimates chosen by such appraisers shall be binding on both Landlord and Tenant, subject to the Minimum Renewal Rental Rate. If either Landlord or Tenant fails to appoint an appraiser within the seven (7) Business Day period referred to above, the Base appraiser appointed by the other party shall be the sole appraiser for the purposes hereof. If the two appraisers cannot agree upon which of the two Estimates most closely reflects the Prevailing Market rate within twenty (20) days after their appointment, then, within ten (10) days after the expiration of such twenty (20) day period, the two appraisers shall select a third appraiser meeting the aforementioned criteria. Once the third appraiser (i.e., the arbitrator) has been selected as provided for above, then, as soon thereafter as practicable but in any case within fourteen (14) Business Days, the arbitrator shall make his or her determination of which of the two Estimates most closely reflects the Prevailing Market rate and such Estimate shall be binding on both Landlord and Tenant as the Prevailing Market rate for the Premises, subject to the Minimum Renewal Rental Rate. If the arbitrator believes that expert advice would materially assist him or her, he or she may retain one or more qualified persons to provide such expert advice, The parties shall share equally in the costs of the arbitrator and of any experts retained by the arbitrator. Any fees of any appraiser, counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such appraiser, counsel or expert.
E. If the Prevailing Market rate has not been determined by the commencement date of the Renewal Term, Tenant shall pay Monthly Installments of Rent then upon the terms and conditions in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%until such time as the Prevailing Market rate has been determined. Upon such determination, compounded). “Fair Market Rate” means the market rate for rent chargeable Annual Rent and Monthly Installments of Rent for the Leased Premises based upon the following factors applicable shall be retroactively adjusted to the Leased Premises commencement of such Renewal Term for the Premises.
F. This Renewal Option is not transferable; the parties hereto acknowledge and agree that they intend that the aforesaid option to renew this Lease shall be “personal” to Tenant as set forth above and that in no event will any assignee or sublessee have any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity rights to services. Within thirty (30) days of Option Noticeexercise this Renewal Option.
G. If Tenant validly exercises or fails to exercise this Renewal Option, Tenant shall notify Landlord have no further right to extend the Term of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease.
H. For purposes of this Renewal Option, effective “Prevailing Market” shall mean the arms length fair market annual rental rate per rentable square foot under renewal leases and amendments entered into on or about the date on which the Prevailing Market is being determined hereunder for space comparable to the Premises in the Building and buildings comparable to the Building in the same rental market in the San Mateo/Xxxxxx City/Redwood Shores, California area as of the last day date the Renewal Term is to commence, taking into account the specific provisions of the then-current Rental Termthis Lease which will remain constant. Alternatively, Tenant and Landlord may mutually agree to submit the The determination of Fair Prevailing Market Rate to a “shall take into account any material economic differences between the terms of this Lease and any comparison lease or amendment, 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 and taxes. The determination of Prevailing Market Assessment Process,” as provided shall also take into consideration any reasonably anticipated changes in Exhibit “F” – the Prevailing Market Assessment Processrate from the time such Prevailing Market rate is being determined and the time such Prevailing Market rate will become effective under this Lease.
Appears in 2 contracts
Samples: Office Lease Agreement (GoPro, Inc.), Office Lease Agreement (GoPro, Inc.)
OPTION TO RENEW. (Section 28.01): Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by three percent (3%, ) compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – — Market Assessment Process.
Appears in 2 contracts
Samples: Lease Agreement (TGPX Holdings I LLC), Lease Agreement (TGPX Holdings I LLC)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive the option to renew the initial --------------- five (5) year options to renew term of the Lease for one (1) additional period of five (5) years ("Option Period") on the same terms and extend covenants and conditions provided herein, except that upon such renewal the Rental Term Monthly Rent due hereunder shall be determined as provided herein (“Option”)below. The Option Tenant shall only be exercised exercise such option by Tenant delivering giving Landlord written notice thereof to Landlord no earlier than the date which is twelve (12"Option Notice") months at least one hundred eighty (180) days prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration initial term of the Rental Term (the “Option Notice”)this Lease. The Base Monthly Rent during initial monthly rent for the first year of each extension periods Option Period shall be the lesser of: determined as follows:
(i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within The parties shall have thirty (30) days of after Landlord receives the Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate Notice within which to agree on the initial Monthly Rent for the applicable renewal period. If Landlord disagrees with Tenant’s opinion Option Period based upon the then fair market rental value of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)Premises. If the parties are unable to resolve their differences agree on the initial Monthly Rent for the Option Period within thirty (30) days thereafterdays, Landlord or Tenant, at its sole option, may terminate they shall immediately execute an amendment to this Lease stating the initial Monthly Rent for the Option Period.
(ii) The "then fair market rental value of the Premises" shall mean the fair market monthly rental value of the Premises as of the commencement of the Option Period; taking into consideration the uses permitted under this Lease, effective as the quality, size, design and location of the last day Premises, and comparable buildings located in Fremont, California. If Landlord and Tenant area are unable to agree on the "then fair market rental value of the then-current Rental Premises" then this Lease shall expire at the end of the Initial Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 2 contracts
Samples: Sublease Agreement (Atroad Inc), Sublease Agreement (Atroad Inc)
OPTION TO RENEW. Provided A. If Tenant is not, and has not been (more than two (2) times), in default under any this Lease at the time of the terms and conditions contained hereinexercise of this option or at the commencement of the applicable Lease Term extension, Tenant shall have two is granted the option (2the OPTION) additional consecutive to extend the Lease Term for one (1) extension term of five (5) year options to renew and extend years commencing on the Rental next day after the expiration of the initial Lease Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written giving Landlord an extension notice thereof to Landlord no earlier than the date which is at least twelve (12) months months, but not more than fifteen (15) months, prior to the expiration of the Rental initial Lease Term. Tenant's lease of the Premises during the extended Lease Term will be upon the same terms as in the Lease for the initial Lease Term, except that (i) Base Monthly Rent will adjust on the first day of the extended Lease Term to the Market Rate (defined below), (ii) during the extended Lease Term Tenant will have no further options or rights to extend the Lease Term, and (iii) Paragraph 5B shall be deemed omitted.
B. Within thirty (30) days after Landlord receives Tenant's written notice of its exercise of the Option, Landlord shall deliver a notice to Tenant (the MARKET RATE NOTICE) specifying the Market Rate for the extended Lease Term, such to be based upon Landlord's determination of rents being charged for comparable space in similar properties in the Dallas/Fort Worth area for terms commensurate with the extended Lease Term and no later than for tenants similarly situated. Tenant shall have fifteen (15) days (the date which is nine (9EXAMINATION PERIOD) months from its receipt of the Market Rate Notice to accept or reject Landlord's designation of the Market Rate. If Tenant accepts Landlord's designation of the Market Rate, the MARKET RATE will be as set forth in the Market Rate Notice. If Tenant fails to reject in writing Landlord's designation of the Market Rate set forth in the market Rate Notice during the Examination Period, Tenant shall be deemed to have accepted Landlord's designation of the Market Rate, and Tenant's election to exercise the Option shall be irrevocable. If Tenant timely rejects Landlord's designation of the Market Rate prior to the expiration of the Rental Term (Examination Period and Landlord and Tenant cannot agree in writing on the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt the date Landlord receives Tenant's timely rejection of Landlord's designation of the Market Rate set forth in the Market Rate Notice (the NEGOTIATION PERIOD), Tenant shall have the right to revoke its exercise of the Option by written notice to Landlord within five (5) days after the expiration of the Negotiation Period. If Tenant fails to revoke its exercise of the Option within this five (5) day period, then Tenant's exercise of the Option will be irrevocable and the Base Monthly Rent for the extended Lease Term will be based upon the Market Rate set forth in the Market Rate Notice.
C. Tenant may not assign the Option to any assignee of the Lease. No sublessee and no assignee may exercise the Option.
D. If the Lease Term is extended under this Xxxxxxxxx 00, Xxxxxxxx shall prepare, and Landlord and Tenant will execute and deliver an amendment to the Lease extending the Lease Term within fifteen (15) days after the Market Rate is determined but in no event later than the date that the applicable extension term commences; provided, however, that the failure of the parties to enter into such an amendment will not affect the validity of Tenant’s opinion 's exercise of Fair Market Rate (“Landlord’s Value Notice”). If the Option or the obligations of the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of during the last day of the then-current Rental extended Lease Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 2 contracts
Samples: Commercial Lease Agreement (Mannatech Inc), Commercial Lease Agreement (Mannatech Inc)
OPTION TO RENEW. Provided Tenant is notshall have, and has not been is hereby granted, one (more than two 1) option to renew and to extend the term of this Lease for a period of Five (25) timesyears (the “Renewal Term”), such option to follow consecutively upon the expiration of the initial term of this Lease, provided that at the time such option to renew is exercised, this Lease shall be in full force and effect and Tenant shall not be in default hereunder. Such option shall be exercised, if at all, by Tenant giving written notice of its intention to renew and extend the term of this Lease to Landlord at least six months before the Expiration Date of this Lease. Any assignment or subletting by Tenant in violation or breach of Paragraph 9 of this Lease shall terminate all rights of renewal and extension set forth herein. The renewal, if elected by Tenant, shall unless otherwise mutually agreed in writing be under any all of the terms and conditions contained herein, Tenant shall have two of this Lease except Basic Rental (2below provided) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only which will be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior changed in an amount corresponding to the expiration new Basic Rental, and except that no further renewal option shall exist. Commencing with the first (1st) day of the first (1st) calendar month for the Renewal term, the applicable Basic Annual Rental for each calendar month for the Renewal Term and no later than the date which shall be adjusted so that it is nine (9) months prior equal to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) mutually agreed prevailing market rate per annum for comparable space available in buildings of a quality similar to the Building within reasonable proximity thereto at such time. Landlord and Tenant shall, after reviewing market conditions, mutually agree on the Project, and (ii) the Base Monthly Rent then in effect Basic Annual Rental to be charged for the Leased Premises during the last month of the initial Rental Renewal Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises and any other incentives or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processterms related thereto.
Appears in 2 contracts
Samples: Commercial Lease Agreement (Mavenir Systems Inc), Commercial Lease Agreement (Mavenir Systems Inc)
OPTION TO RENEW. Provided Tenant shall, provided the Lease is in full force and effect and Tenant is not, and has not been (more than two (2) times), in default beyond applicable notice and cure periods under any of the other terms and conditions contained hereinof the Lease at the time of notification or commencement, have one (1) option to renew this Lease for one additional three (3) year term, for the portion of the Premises being leased by Tenant as of the date the renewal term is to commence, on the same terms and conditions set forth in the Lease, except as modified by the terms, covenants and conditions as set forth below:
a. If Tenant elects to exercise said option, then Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering provide Landlord with written notice thereof to Landlord (the “Option Notice”) no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later less than the date which is nine (9) months prior to the expiration of the Rental Term (then current term of the “Option Notice”)Lease. If Tenant fails to provide such notice, Tenant shall have no further or additional right to extend or renew the term of the Lease.
b. The Base Annual Rent and Monthly Rent during Installment in effect at the first year expiration of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) term of the Lease shall be increased to reflect the current fair market rental for comparable space within in the ProjectBuilding and in other similar buildings in the Sorrento Mesa rental market as of the date the renewal term is to commence, taking into account the specific provisions of the Lease which will remain constant. Landlord shall advise Tenant of the new Annual Rent and (ii) the Base Monthly Rent then in effect Installment for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within no later than thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion written request therefore. Said request shall be made no earlier than thirty (30) days prior to the first date on which Tenant may exercise its option under this Paragraph. Said notification of Fair Market Rate (“the new Annual Rent may include a provision for its escalation to provide for a change in fair market rental between the time of notification and the commencement of the renewal term. In the event Tenant exercises its option to extend but objects to Landlord’s Value Notice”)determination of the Option Rent concurrently with its exercise of the option to extend, Landlord and Tenant shall attempt to agree in good faith upon the Option Rent. If the parties are unable Landlord and Tenant fail to resolve their differences reach agreement within thirty (30) days thereafterfollowing Tenant’s delivery of the Option Notice (the “Outside Agreement Date”), then each party shall make a separate determination of the Option Rent within five (5) business days after the Outside Agreement Date, concurrently exchange such determinations and such determinations shall be submitted to arbitration in accordance with Sections (i) through (vii) below.
(i) Landlord and Tenant shall each appoint one arbitrator who shall by profession be a real estate broker or appraiser who shall have been active over the five (5) year period ending on the date of such appointment in the leasing (or appraisal, as the case may be) of commercial high-rise properties in the Sorrento Mesa area of San Diego. The determination of the arbitrators shall be limited solely to the issue of whether Xxxxxxxx’s or Tenant’s submitted Option Rent is the closest to the actual Option Rent, at its sole optionas determined by the arbitrators, taking into account the requirements of this Addendum (i.e., the arbitrators may terminate this Lease, effective as only select Landlord’s or Tenant’s determination and shall not be entitled to make a compromise determination). Each such arbitrator shall be appointed within fifteen (15) business days after the applicable Outside Agreement Date.
(ii) The two (2) arbitrators so appointed shall within five (5) days of the date of the appointment of the last day appointed arbitrator agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of the then-current Rental Term. Alternativelyinitial two (2) arbitrators.
(iii) The three (3) arbitrators shall within five (5) days of the appointment of the third arbitrator reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted Option Rent and shall notify Landlord and Tenant thereof.
(iv) The decision of the majority of the three (3) arbitrators shall be binding upon Landlord and Tenant.
(v) If either Landlord or Tenant fails to appoint an arbitrator within fifteen (15) business days after the applicable Outside Agreement Date, the arbitrator appointed by one of them shall reach a decision, notify Landlord and Tenant thereof, and such arbitrator’s decision shall be binding upon Landlord may mutually and Tenant.
(vi) If the two (2) arbitrators fail to agree upon and appoint a third arbitrator, or both parties fail to submit appoint an arbitrator, then the determination appointment of Fair Market Rate the third arbitrator or any arbitrator shall be dismissed and the Option Rent be decided shall be forthwith submitted to arbitration under the provisions of the American Arbitration Association, but subject to the instruction set forth in this Section 3.
(vii) The cost of arbitration shall be paid by Landlord and Tenant equally.
c. This option is not transferable; the parties hereto acknowledge and agree that they intend that the aforesaid option to renew this Lease shall be “personal” to Tenant as set forth above and that in no event will any assignee or sublessee (other than any assignee or sublessee in a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessPermitted Transfer) have any rights to exercise the aforesaid option to renew.
Appears in 1 contract
Samples: Lease (Phenomix CORP)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two one option to renew (2"Option to --------------- Renew") additional consecutive this Lease for five (5) year options to renew and extend years (the Rental Term as provided herein (“Option”"Renewal Period"). The If Tenant desires to exercise its Option to Renew, Tenant shall only be exercised by Tenant delivering give Landlord written notice ("Renewal Notice") thereof to Landlord no earlier than on or before the date which is twelve (12) months 6/th/ month prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last 48/th/ month of the initial Rental Term (increasing each year thereafter by 3%, compounded)current Lease Term. “Fair Market Rate” means During the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty thirty- (30) days day period following Landlord's receipt of Option the Renewal Notice, Landlord and Tenant shall notify Landlord of Tenant’s option of Fair use reasonable efforts to negotiate a mutually agreeable base rent ("Market Rate Base Rent") for the applicable renewal periodRenewal Period. If Landlord disagrees with Tenant’s opinion The Market Base Rent shall be negotiated in light of then current terms for renewing tenants for comparable space, including market rents, term of renewal, and operating expense pass throughs. In no event shall the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within Base Rent for the Renewal Period be less than the current Base Rent per rentable square foot per annum for the initial Leased Premises. Within fifteen (15) business days after of agreement by the parties on the Market Base Rent and other terms of the renewal, Landlord shall deliver to Tenant an amendment to this Lease extending this Lease on such terms. Such amendment shall not contain any further option to renew. Tenant shall execute and deliver the amendment to Landlord within ten (10) business days following receipt of Tenant’s opinion such amendment. The foregoing option and rights are subject to there having been no Event of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate Default under this Lease, effective as are personal to the original Tenant executing the Lease, may not be assigned, and shall be available to and exercisable by the Tenant only when the original Tenant is in actual possession and physical occupancy of the last day entire Lease Premises. Time is of the then-current Rental essence in the exercise of Tenant's Option to Renew. Should Tenant fail to exercise such option, execute and deliver any required documents, or perform any of its required obligations under this section, or should the parties be unable to agree on Market Base Rent for the Renewal Period, within the time periods set forth above, then this Option to Renew and any other rights of Tenant under the Lease in the nature of options, shall be null and void, and the Lease shall terminate at the end of the Lease Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
Samples: Lease Agreement (Seagate Software Information Management Group Holdings Inc)
OPTION TO RENEW. Provided Tenant the Sublease is notin full force and effect, and has Subtenant is not been (more than two (2) times), in default under any of the other terms and conditions contained hereinof the Sublease at the time of notification or commencement, Tenant and this Sublease has not been assigned, Subtenant shall have two (2) additional consecutive five (5) year options an option to renew and extend the Rental Term as provided herein (“Renewal Option”) this Sublease for a term for the period commencing on the date following the Expiration Date under Section 1.8 above and continuing until April 14, 2018. (“Renewal Term”). The Option , on the same terms and conditions set forth in this Sublease, except as modified by the terms, covenants and conditions as set forth below: If Subtenant elects to exercise the Renewal Option, then Subtenant shall only be exercised by Tenant delivering provide Sublandlord with written notice thereof to Landlord no earlier than the date which is eighteen (18) months prior to the Expiration Date under Section 1.8 above, and no later than the date which is twelve (12) months prior before such Expiration Date. If Sublandlord fails to provide such notice, Subtenant shall have no further or additional right to extend or renew the Term of this Sublease. The annual Base Rent and Monthly Base Rent in effect at the expiration of the Rental then current Term of this Sublease shall be adjusted to reflect the Prevailing Market (defined below) rate as of the date the applicable Renewal Term is to commence, taking into account the specific provisions of this Sublease which will remain constant. Sublandlord shall advise Subtenant of the new Annual Base Rent and Monthly Base Rent for the Premises thirty (30) days after receipt or Subtenant’s written notice of exercise of the Renewal Option. Unless Subtenant notifies Sublandlord of its objection to Sublandlord’s determination of the Prevailing Market Rate within thirty (30) days after receipt thereof, the same shall be the Annual Base Rent and Monthly Base Rent for the Renewal Term. If Subtenant makes timely objection to Sublandlord’s determination of the Prevailing Market Rate, the parties shall negotiate in good faith the Prevailing Market Rate. However, if the parties have not reached agreement on the Prevailing Market Rate within ninety (90) days after exercise of the Renewal Option, Subtenant, by written notice to Sublandlord (the “Arbitration Notice”) shall have the right to have the Prevailing Market Rate for the Premises within the ninety day (90) period described and Subtenant fails to timely exercise its right to arbitrate, Subtenant’s Renewal Option shall be deemed to be null and void and of no later further force and effect. In no event shall the Annual Base Rent and Monthly Base Rent for the applicable Renewal Term be less than the Annual Base Rent and Monthly Base Rent in the preceding period.
17.2.1 If Subtenant provides Sublandlord with an Arbitration Notice, Sublandlord and Subtenant, within five (5) days after the date of the Arbitration Notice, shall each simultaneously submit to the other, in a sealed envelope, its good faith estimate of the Prevailing Market rate for the Premises during the Renewal Term (collectively refereed to as the “Estimates”). If the higher of such Estimates is not more than 105% of the lower of such Estimates, then prevailing Market rate shall be the average of the two Estimates. If the Prevailing Market rate is not resolved by the exchange of Estimates, then, within seven (7) days after the exchange of Estimates, Sublandlord and Subtenants shall each select an appraiser to determine which of the two Estimates most closely reflects the Prevailing Market rate for the Premises during the Renewal Term. Each appraiser so selected shall be certified as an MAI appraiser of as an ASA appraiser and shall have had at least five (5) years experience within the previous ten (10) years as a real estate appraiser working in San Francisco, California, with working knowledge of current rental rates and practices. For purposes hereof, an “MAI” appraiser means an individual who holds a MAI designation conferred by, and its an independent member of, the American Institute of Real Estate Appraisers (or its successor organization, or in the event there is nine no successor organization, the organization and designation most similar), and an “ASA” appraiser means an individual who holds the Senior Member designation conferred by, and is in independent member of, the American Society of Appraisers (9or its successor organization, or, in the event there is no successor organization, the organization and designation most similar).
17.2.2 Upon selection, Sublandlord’s and Subtenant’s appraisers shall work together in good faith to agree upon which of the two Estimates most closely reflects the Prevailing Market rate for the Premises. The Estimate chosen by such appraisers shall be binding on both Sublandlord and Subtenant as the Base Rent rate for the Premises during the Renewal Term. If either Sublandlord or Subtenant fails to appoint an appraiser within the seven (7) months prior day period referred to above, the appraiser appointed by the other party shall be the sole appraiser for the purposes hereof. If the two appraisers cannot agree upon which of the two Estimates most closely reflects the Prevailing Market within twenty (20) days after their appointment, then, within ten (10) days after the expiration of such twenty (20) day period, the Rental Term two appraisers shall select a third appraiser meeting the aforementioned criteria. Once the third appraiser (i.e. arbitrator) as been selected as provided for above, then, as soon thereafter as practicable but in any case within fourteen (14) days, the “Option Notice”)arbitrator shall make his determination of which of the two Estimates most closely reflects the Prevailing Market rate and such Estimate shall be binding on by Sublandlord and Subtenant as the Base Rent rate for the Premises. If the arbitrator believes that expert advice would materially assist him, he may retain one or more qualified persons to provide such expert advice. The Base Monthly Rent during parties shall share equally in the first year costs of each extension periods the arbitrator and of any experts retained by the arbitrator. Any fees of any appraiser, counsel or experts engaged directly by Sublandlord or Subtenant, however, shall be home by the lesser of: (i) party retaining such appraiser, counsel or expert.
17.2.3 If the then current Fair Prevailing Market Rate (as defined) for comparable space within rate has not been determined by the Projectcommencement date of the renewal Term, Subtenant shall pay Base Rent upon the terms and (ii) the Base Monthly Rent then conditions in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon until such time as the following factors applicable Prevailing Market rate has been determined. Upon such determination, the Base Rent for the Premises shall be retroactively adjusted to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days commencement of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate the Renewal Term for the applicable renewal periodPremise. If Landlord disagrees with Tenant’s opinion such adjustment results in an underpayment of Base Rent by Subtenant, Subtenant shall pay Sublandlord the Fair Market Rate, Landlord shall notify Tenant amount of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences such underpayment within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit after the determination thereof. If such adjustment results in an overpayment of Fair Market Rate Base Rent by Subtenant, Sublandlord shall credit such overpayment against the next installment of Base Rent due under the Sublease and, to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthe extent necessary, any subsequent installments, until the entire amount of such overpayment has been credited against Base Rent.
Appears in 1 contract
Samples: Sub Sublease Agreement (Enernoc Inc)
OPTION TO RENEW. Provided Tenant that at the time the option is not, exercised there is no default by Lessee that remains uncured after such notice and has not been (more than two (2) times), in default under any of opportunity to cure as may be provided by the terms and conditions contained hereinof this lease, Tenant Lessee shall have two (2) the option to renew this lease for an additional consecutive period of five (5) year options years on the same terms and conditions except the rent. Base rent for the renewal term shall be at market rate for renewal of a lease of comparable office space in Seattle (exclusive, however, of any improvements paid for by Lessee. The term “market rate” mean the prevailing market rental rate on a level basis for renewal of a lease for a tenant occupying an amount of space comparable to the amount then leased by Lessee, taking into consideration any concessions (e.g., rent abatement, refurbishment, carpeting and other allowances) then being offered by landlords to renewing tenants for comparable space, and excluding the value of improvements made and paid for by Lessee. Lessee agrees to give Lessor notice of its intent to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (initial lease term. Any dispute concerning base rent for the “Option Notice”). The Base Monthly Rent during the first year of each extension periods renewal term shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then resolved by arbitration in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)manner. If the parties are not able to agree on the market rate within 90 days after Lessee gives Lessor its notice of intent to renew (“Notice Date”), then each party shall appoint a disinterested, independent appraiser who is a member of the American Institute of Real Estate Appraisers (an “Appraiser”) and has at least ten years experience appraising rental properties in the Seattle area. If the Appraisers are unable to resolve their differences reach agreement about market rent within thirty one hundred twenty (30120) days thereafterafter the Notice Date, Landlord then the two Appraisers shall together appoint a third Appraiser having the same qualifications and the third Appraiser shall be the arbitrator. Once the arbitrator is appointed, each Appraiser promptly shall submit to the arbitrator within seven days a written statement of his or Tenanther determination of market rate, at its sole optionsupported by the reasons for that determination, may terminate this Lease, effective as with counterpart copies given to each party. The role of the last day arbitrator will be to select which of the then-current Rental Termtwo proposed determinations of market rate mostly closely approximates his or her own determination on the matter. AlternativelyThe arbitrator will have no right to propose a middle ground or any modification of either of the two determinations. The arbitrator will determine the matter within 10 days after his or her receipt of the written statement of each of the two Appraisers. The determination of the arbitrator will be final and binding on all parties, Tenant and Landlord may mutually agree to submit the market rate so determined shall be the base rent for the renewal term. Each party shall bear the expense of retaining its Appraiser. The fees and expenses of the arbitrator and other expenses of the arbitration shall be borne equally by the parties. The arbitrator’s determination of market rate shall be final and binding on the parties. Judgment upon the determination of Fair Market Rate to a “Market Assessment Process,” as provided market rate rendered by the arbitrator may be entered in Exhibit “F” – Market Assessment Processany court having jurisdiction.
Appears in 1 contract
Samples: Office Lease (Neorx Corp)
OPTION TO RENEW. Provided (a) Subject to the provisions of Section 26 of the Lease, and provided that Tenant is not, and has not been (more than two (2) times), in default under any at the time of Tenant's exercise of the terms and conditions contained hereinOption or at the commencement of the extended term, Tenant shall have two (2) additional consecutive five (5) year options Options to renew and extend the Rental Term as provided herein (“Option”)this Lease. The Option Tenant shall only be exercised by Tenant delivering written notice thereof provide to Landlord no earlier than the on a date which is twelve (12) months prior to the expiration date that each option period would commence (if exercised) by at least two hundred seventy (270) days and not more than three hundred sixty days (360) days, a written notice of the Rental Term and no later than the date which is nine (9) months prior to the expiration exercise of the Rental Term (option to extend the “Lease for the additional Option Notice”)term, time being of the essence. The Base Monthly Rent during the first year of each extension periods Such notice shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then given in effect for the Leased Premises during the last month accordance with Section 40 of the initial Rental Term (increasing each year thereafter by 3%Lease. If notification of the exercise of either Option is not so given and received, compounded)all Options granted hereunder shall automatically expire. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors Base Rent applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity for each Option term shall be equal to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of the "Fair Market Rate for Rental" as hereinafter defined. All other terms and conditions of the applicable renewal period. Lease shall remain the same.
(b) If Tenant exercises an Option, Landlord disagrees with Tenant’s opinion of shall then propose the Fair Market Rate, Rental by using its good faith judgment. Landlord shall notify provide Tenant with written notice of Landlord’s opinion of Fair Market Rate such amount within fifteen (15) days after Tenant exercises an Option. Tenant shall have fifteen (15) days ("Tenant's Review Period") after receipt of Tenant’s opinion Landlord's notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rate Rental, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (“Landlord’s Value Notice”)15) days following Tenant's Review Period ("Outside Agreement Date") then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of Maryland and who specializes in the field of commercial office space leasing in the Rockville, Maryland market, has at least five (5) years of experience and is recognized within the field as being reputable and ethical. If one party does not timely appoint a broker, then the broker appointed by the other party shall promptly appoint a broker for such party. Such two individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on base rent, then the two individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the qualifications described above. If the parties two brokers are unable to resolve their differences within thirty (30) days thereafteragree upon a third broker, Landlord or Tenant, at its sole option, may terminate this Lease, effective as the third broker shall be appointed by the President of the last day District of Columbia Board of Realtors. In the event the District of Columbia Board of Realtors is no longer in existence, the third broker shall be appointed by the President of its successor organization. If no successor organization is in existence, the third broker shall be appointed by the Chief Judge of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.Circuit Court of
Appears in 1 contract
OPTION TO RENEW. Provided As of the end of the original Term, Tenant is not, and has not been shall have the right to renew this Lease for an additional period of years (more than two (2) timesthe “Renewal Term”), in default under any of subject to the following terms and conditions:
(a) All terms and conditions of this Lease shall continue in effect during the Renewal Term except that (i) Rent during the Renewal Term shall be the fair market Rent for the Premises (as reasonably determined by Landlord as of the date of receipt of Tenant’s notice based on Landlord’s current (or most recent) bona fide written proposals for leases for comparable space, terms and concessions in the Building); and (ii) Tenant shall have no further option to renew at the end of the Renewal Term;
(b) Tenant shall exercise such right to renew by giving written notice thereof to Landlord not less than 12 months before the end of the original Term;
(c) Within 60 days after receipt of such notice from Tenant, Landlord shall give written notice to Tenant setting forth the Rent Landlord will charge for the Premises during the Renewal Term. Within 30 days after receipt of such notice from Landlord, Tenant shall give written notice to Landlord of whether it will accept such Rent. If Tenant rejects the Rent, this Lease shall expire at the end of the original Term. Failure to respond within the aforesaid 30-day period shall be deemed a rejection of the Rent;
(d) Landlord shall have no obligation to make any improvements or alterations to the Premises or to provide any improvement allowance with respect thereto during the Renewal Term;
(e) Notwithstanding anything to the contrary contained herein, Tenant shall only have two (2) additional consecutive five (5) year options the right to renew this Lease if no Event of Default has occurred and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than is continuing, and/or this Lease has not theretofor been terminated, on the date which is twelve of Tenant’s notice of its intention to renew or on the date of commencement of the Renewal Term; and
(12f) months prior Prior to the commencement of the Renewal Term, Landlord and Tenant shall execute an amendment to this Lease confirming the renewal of this Lease pursuant to this Section; the commencement and expiration of the Rental Term Renewal Term; and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent payable during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Renewal Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, A. Tenant shall have two (2) additional consecutive five (5) year options the right, at its election made in its sole discretion, to renew and extend the Rental Term as provided herein (the “Renewal Option”) for the consecutive, additional periods set forth in Section 1.E (each, a “Renewal Term”), provided that each of the following occurs:
1. The Option shall only be exercised by Tenant delivering Landlord receives irrevocable written notice thereof to Landlord no earlier of exercise of the Renewal Option (the “Renewal Notice”), not less than the date which is twelve (12) full months prior to the expiration of the Rental then existing Term (or Renewal Term, as case may be); and
2. There is no uncured Event of Default beyond any applicable notice and no later than cure period at the date which is nine (9) months prior time that Tenant delivers the Renewal Notice or at the time the applicable Renewal Term will commence.
B. The Renewal Term shall be upon the same terms and conditions as in this Lease except Base Rent for the first lease year of the applicable Renewal Term shall be equal to the expiration greater of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) one hundred two percent (102%) of the then current Fair Market Rate (as defined) Base Rent for comparable space within the Projectlease year immediately preceding the first lease year of the applicable Renewal Term, and (ii) the Base Monthly Rent then in effect then-current Market Rate (as hereinafter defined) for the Leased Premises Premises. The Base Rent shall increase by two percent (2%) annually during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded)Renewal Term. “Fair Market Rate” means for the market Premises shall mean the base rent rate for the first lease year of the applicable Renewal Term that the Premises would be expected to be leased for, for a term commencing on the applicable commencement date of the Renewal Term in question and ending on the applicable expiration date of the Renewal Term in question, in its then-existing condition, in an arms-length transaction between a willing landlord and tenant in the commercial space market existing in the vicinity of the Premises at the time such rate is established. Such determination shall take into account all relevant factors, including consideration of (1) the size and location of the Premises, and the quality of, condition of, and the nature of the improvements in, the Building, including without limitation, the necessity to remove such improvements, but shall exclude the value of improvements installed by Tenant in the Premises that are to be removed by Tenant at the expiration of the Term; (2) other Comparable Buildings to the Building; (3) other comparable leasing transactions in comparable locations in the vicinity of the Premises for new leases (with appropriate adjustments for different size premises and different length terms), and the rents and concessions, allowances and commissions granted along with the other terms of such transactions; (4) the financial condition of Tenant; and (5) the fact that there shall not be any Landlord work, inducement allowances, or rent chargeable abatements for the Leased Premises based upon Renewal Term. Notwithstanding the following factors applicable to foregoing, in no event shall the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion be less than one hundred two percent (102%) of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If Base Rent in effect at the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as expiration of the last day of the then-then current Rental Term (or Renewal Term. Alternatively, Tenant and Landlord as case may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processbe).
Appears in 1 contract
Samples: Lease Agreement (Big Lots Inc)
OPTION TO RENEW. Provided (a) Tenant is not, and has not been shall have one option to renew this Lease (more than two (2a "Renewal Option") times), in default under any of on the same terms and conditions contained hereinand in the manner set forth below, for a term of FIVE (5) years, provided that there has been no Event of Default (or event or condition which, with the passage of time or giving of notice, or both, would constitute an Event of Default) that has occurred and is continuing at the time of exercise of the option and that there have not been repeated recurring Events of Default (whether or not previously cured) during the Term. In the event Tenant desires to elect the Renewal Option, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering give Landlord written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of its exercise of the Rental Term and no later than the date which is nine Renewal Option NINE (9) months prior to the expiration Expiration Date of the Rental Term Term. If Tenant fails to timely notify Landlord of its exercise of the Renewal Option, then the Renewal Option shall expire.
(the “Option Notice”). The b) Base Monthly Rent during the first year renewal term shall equal the prevailing market rental rate for office space of each extension periods comparable quality, design and location in the Berkeley Heights area (which shall be include the lesser of: Route 78 corridor from and including Exit 43 to and including Exit 33) for tenants occupying an amount of space comparable to the amount then leased by Tenant, taking into consideration any concessions (ie.g., rent abatement, tenant improvement and other allowances; it being understood for purposes of clarification that Landlord shall have no obligation to provide Tenant with any tenant improvement allowance) the then current Fair Market Rate (as defined) being offered by landlords to prospective tenants for comparable space within ("Market Rent"), but in no case less than the Project, and (ii) then existing Base Rent. The parties shall negotiate in good faith to establish the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)Rent. If the parties are unable to resolve their differences agree on Market Rent within thirty (30) days thereafterafter Tenant gives Landlord its notice exercising the Renewal Option (the "NOTICE DATE"), Landlord or Tenant, at its sole option, may terminate this Lease, effective then the Appraisal Procedure (as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided defined in Exhibit “F” – Market Assessment ProcessSection 2.01) shall be utilized.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) Tenant is not in default of any terms or conditions of this Lease, or would be in default with the then current Fair Market Rate (as defined) for comparable space within passage of time, the Projectgiving of notice, or both, and (ii) Tenant has provided Landlord with written notice that Tenant is exercising its Option to Renew under Section 1.2 of this Lease at least 90 days but not more than 270 days prior to the Base Monthly Rent Expiration Date, then in effect for Tenant may extend the Leased Premises during Term by five (5) years (the last month "Extension Term") beginning immediately after the Expiration Date, upon the same terms and conditions of the initial Rental Lease, except that:
(i) the Term will be modified as stated above;
(increasing ii) the Option to Renew in this Article 1.2 will be deleted;
(iii) The Base Rent for each year thereafter by 3of the Extension Term will be at ninety-five percent (95%) of then Fair Rental Value (as hereinafter defined) for similarly situated property. "Fair Rental Value" means the annual rent that a willing tenant would pay, compoundedand a willing landlord would accept, in arms-length, bona fide negotiations, if the Premises were leased to a single tenant for 5 years under a lease pursuant to which such tenant would not receive (and, accordingly, the rental rate that otherwise would be agreed to will be reduced to reflect the fact that Tenant will not receive) any rental concession, such as rental abatements or "free rent" periods or rental assumption, inducements or any leasehold improvement allowance, and otherwise taking into account any other pertinent factors, including, but not limited to, the net effective annual rates per square foot for office leases recently or then being entered into in suburban Minneapolis and St. Pxxx, Minnesota ("Comparable Rates "). “In determining the Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon Rental Value and using Comparable Rates in connection with such determination, the following factors applicable (and any other factors then known to be pertinent) will be considered: the Leased Premises size of the Premises; the length of the term; use; quality of services provided; location and/or floor level; existing leasehold improvements; leasehold improvements to be provided by Landlord, whether directly or any comparable premises: rentby allowance; the quality, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, age and location of the Building; financial strength of the applicable tenant; rental concessions (such as rental abatements or "free rent" periods and proximity rent assumptions); inducements (such as signing bonuses, equity participation, tax benefits, or other participation in ownership); the respective obligations of the Landlord and the tenant, the manner in which the rents are then subject to servicesescalation and the time the particular rate under consideration became or will become effective. The Fair Rental Value will be determined as follows: Within thirty (30) 10 days of Option Notice, after Landlord receives notice from Tenant shall notify Landlord of regarding Tenant’s option election to exercise the Extension Option, Landlord will give notice to Tenant of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion its determination of the Fair Market RateRental Value of the Premises for each year of the Extension Term, Landlord shall notify and Landlord’s determination will constitute the Fair Rental Value unless Tenant objects in writing within 10 days after Tenant’s receipt of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)determination. If Tenant so objects and the parties are unable to resolve their differences agree upon the Fair Rental Value within thirty (30) 20 days thereafterafter the Tenant’s objection, then by written notice to Landlord or Tenant, at its sole option, within 10 days thereafter Tenant may terminate this Lease, effective as request determination of the last day of the then-current Fair Rental TermValue under this Article. Alternatively, If Tenant and Landlord may mutually agree to submit the does not give such notice requesting determination of Fair Market Rate to Rental Value using the appraisal process described below, Tenant’s exercise of the option will be deemed rescinded. If determination by the appraisal process is requested by Tenant, the Fair Rental Value will be determined by appraisal within 30 days after Tenant’s request by a “Market Assessment Process,” as provided board of appraisers consisting of three reputable real estate professionals experienced in Exhibit “F” – Market Assessment Process.the leasing of commercial office/industrial space (each an "Expert"). One Expert will be appointed by Tenant, and the second Expert will be appointed by Landlord. The third Expert will be appointed by the first two Experts. If the first two Experts are unable to
Appears in 1 contract
Samples: Commercial Lease (Aetrium Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than hereby given the option to renew this Lease for two (2) times)periods of three (3) years, in default or one (1) period of either; three (3) years, five (5) years, or seven (7) years, provided that there shall be no Event of Default under any of the terms and conditions contained herein, of this Lease either at the time of the giving of any such notice or at the time of commencement of any renewal. Tenant shall have two give notice in writing to the Landlord of its exercise of such option at least six (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (126) months prior to the expiration termination of the Rental Term Initial Term. Such renewal shall be based on the same terms, covenants and no later than conditions as are contained in this Lease except that the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Basic Rent during for the first year of the renewal period shall be at the then current market rate (for comparable buildings in the general vicinity of the Building), as agreed to by the parties hereto. In the event the parties can not agree to the current market rate as set forth above then the Landlord and Tenant shall each extension periods select a licensed commercial real estate broker doing business in Northern Virginia (the "Selected Brokers"), whereupon the Selected Brokers shall select a third similarly qualified broker, who shall each then provide to the parties their expert opinion as to the then current market rate and the average of the three opinions shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable the purposes of this paragraph. In establishing the Basic Rent for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, renewal term, sizethe parties or the brokers who determine the Basic Rent shall consider and take into account Tenant's continuing obligation to pay Additional Charges for Operating Expense Increases over the Operating Expense Base, expense stopunless the parties have agreed in writing that Tenant's obligation to pay Additional Charges for Operating Expense Increases over the Operating Expense Base shall be terminated and the Operating Expense Base shall be re-set to be the sum of the actual Operating Expenses during the year in which such renewal term commences. Notwithstanding the foregoing, tenant allowancein no event shall the Basic Rent for the first year of the renewal period be less then the current rate at the end of the Initial Term. In the event the Tenant elects to renew, existing tenant finishesthe Landlord shall provide a one time allowance for the re-painting and re-carpeting of the space with specifications matching the original installations which can be utilized at any one renewal term commencement. Person: A natural person, parking availabilitya partnership, a limited liability company, a corporation, and location and proximity to servicesany other form of business or legal association or entity. Within thirty (30) days Project General Contractor: Signet Construction Company, Inc. of Option NoticeFairfax, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessVirginia.
Appears in 1 contract
Samples: Lease Agreement (Comstock Homebuilding Companies, Inc.)
OPTION TO RENEW. Provided Tenant is notshall have a one (1) time right to renew the term of this Lease for one (1) period of three (3) years (the “Renewal Term”), subject to the following terms and has conditions:
a. Tenant shall not been be in default in the performance of any of the terms, covenants, or conditions of this Lease, either at the time of the exercise of the right to renew or at the time of the commencement of the Renewal Term.
b. Base Rent during the Renewal Term shall be the Fair Market Rent (as defined below). Tenant may request from Landlord, not more than two hundred seventy (2270) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months days prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration Extension Term, Landlord’s determination of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market RateRent” (as defined below).
c. For purposes of this Article, “Fair Market Rent” means the market rate for rent chargeable for annual Base Rent that a tenant would pay to a landlord under a net lease containing other terms and conditions substantially as set forth herein with respect to comparable premises in a comparable building in the Leased general geographic area that the Demised Premises based upon are located where both the following factors applicable landlord and tenant are willing and able to the Leased Premises or enter into such a lease transaction but neither would be under any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availabilitycompulsion to do so, and location taking into account all relevant facts and proximity circumstances concerning the Building, the parties and the relevant market (i.e., rental concessions, leasehold improvement allowances, and brokerage fees). In determining, for purposes of this Article 38.0, Fair Market Rent, Landlord shall give notice to services. Within thirty (30) days Tenant of Option Notice, Tenant shall notify Landlord of Tenant’s option its determination of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Rent, after request by Tenant’s opinion of the Fair Market Rate, Landlord within at least ten (10) days subsequent to such request, and such determination shall notify Tenant of constitute Landlord’s opinion determination of Fair Market Rate within fifteen (15) days after receipt of TenantRent. In the event Tenant disagrees with Landlord’s opinion determination of Fair Market Rate Rent, Fair Market Rent shall be determined by the following methodology: Both parties shall then have a period of sixty (“Landlord’s Value Notice”)60) days in which to reach a mutual agreement on Fair Market Rent for the Renewal Term. If In the event the parties are unable to resolve their differences reach acceptable terms within thirty (30) days thereafterthis period, Landlord then this renewal option shall no longer be of any force or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processeffect.
Appears in 1 contract
Samples: Commercial Lease (EnteroMedics Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), then in default under any of the terms and conditions contained hereindefault, Tenant shall have two (2) additional consecutive one five (5) year options option to renew the Lease at the then prevailing "fair market" rent to be mutually agreed upon between Landlord and extend the Rental Term as Tenant, provided herein (“Option”). The Option shall only be exercised by Tenant delivering must give Landlord written notice thereof on or before January 1, 2006. In the event that full agreement is not reached on such values by February 1, 2006, Landlord and Tenant shall each designate an MAI real estate appraise to Landlord no earlier than appraise the date which is twelve (12) months prior to the expiration of the Rental Term property and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) determine the then current Fair Market Rate (as defined) for comparable space market rental rate. In the event one party does not appoint an appraiser within such period, the Projectappraisal of the then current market rental rate of the appraiser chosen by the other party shall be controlling. In the event both parties timely appoint an appraiser, and (ii) those two appraisers, together with a third appraiser appointed by the Base Monthly Rent previously appointed appraiser, shall value the then in effect current market rental rate for the Leased Premises. All appraisals shall be completed within 30 days. In the event the appraisers designated under this procedure are unable to agree upon a third appraiser within 30 days of their appointment, the chief judge of the Fourth Judicial District of the State of Minnesota shall appoint such third appraiser and the agreement of any two of such appraisers shall determine the then current fair market rental rate of the Leased Premises during for the purpose of the renewal term contained herein and if no two such appraises can so agree, then the average of the two closest appraiser's determinations of fair market rental rate shall be controlling. The then current market rental rate shall be for comparable square footage in comparable rental markets for similar uses in similar communities with similar amenities, for tenants renewing leases and shall not include any allowances for tenant improvements. Notwithstanding anything contained herein to the contrary, the then current market rental rate, as determined by t he appraisers, shall not be less that the amount paid in the last month year of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion term of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)Lease. If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as Time is of the last day essence. This option to renew is personal to 2nd Swing, Inc. and shall not be available to any of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processtheir successors or assigns.
Appears in 1 contract
Samples: Lease Agreement (2nd Swing Inc)
OPTION TO RENEW. Provided The Tenant is not, and has not been granted one (more than two (21) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options option to renew the lease under the same terms and extend conditions as set forth herein, except that the Rental Term rent shall be increased as provided herein (“Option”)set forth below. The Option option period shall only be exercised by automatically commence ten (10) years from the commencement date of the above referenced lease and terminate five (5) years from the commencement date of the option period. If Tenant delivering does not desire to renew the lease, the Tenant must serve written notice thereof to by certified mail, return receipt requested, on the Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration date of the Rental Term (above lease, TIME BEING OF THE ESSENCE. If notice is not received by such time, the “Option Notice”)lease will automatically renew. Landlord may void Tenant's option to renew this lease at its option if Tenant has not fulfilled completely in a timely manner all terms and conditions of this lease. The Base Monthly Rent rent for the five (5) year option period shall be as follows: The rents for the option period shall be paid in 1/12 equal monthly installments due on the first of each month. Tenant agrees that the demised space is accepted during the first year renewal period(s) in an "AS IS" condition. Tenant further under-stands that the above figures do not include the taxes, insurance and maintenance (XXX) reimbursements, as called for in Paragraph 31st of each extension periods the above lease, which shall continue to be due and payable in addition to the lesser of: (i) rent. Broker ------ 54th - The Tenant warrants and represents that it has not dealt or negotiated with any real estate broker or salesperson in connection with this Lease other than Progressive Properties of Stuart, Inc., who Tenant acknowledges is an agent for and represents the then current Fair Market Rate (as defined) for comparable space within the ProjectLandlord, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify indemnify, defend and hold the Landlord of Tenant’s option of Fair Market Rate for free and harmless from any and all loss, liabilities, expenses, costs, claims or damages by any person or firm claiming to have negotiated or brought about this lease, except as herein provided. Landlord will give prompt notice to Tenant after any such claim is made by any broker. Tenant will have the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable right to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant defend such claim and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” will not pay or settle such claim as provided in Exhibit “F” – Market Assessment Process.long as Tenant is defending same. Hazardous or Toxic Chemicals ----------------------------
Appears in 1 contract
Samples: Purchase Agreement (Floridinos International Holdings Inc)
OPTION TO RENEW. (a) Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained hereinLease, Tenant shall have two (2) the right at, its option by notice to Landlord not earlier than January 1, 1985, nor later than April 30, 1985, to extend the term of this Lease for an additional consecutive five (5) year options to renew and extend the Rental Term as provided herein period (“Option”). The hereinafter called "Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12Period") months prior to the expiration under all of the Rental Term same terms and no later than the date which conditions contained herein except that the-fixed rent as is nine set forth Preamble (97) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: greater of (i) the then current Fair Market Rate Thirty-Four Thousand Six Hundred Forty Five and 00/100 (as defined34,645.00) for comparable space within the Project, and DOLLARS or (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month a sum equal to Thirty-Four Thousand Six Hundred Forty-Five and 00/100 ($34,645.00) DOLLARS and one hundred (100%) percent of the initial Rental Term increase from the date hereof until the commencement of the Option Period in the fair market rental value of the demised premises.
(increasing b) The fair market rental value of the demised premises shall be determined by a Qualified Appraiser or Appraisers (as hereinafter de- fined) estimated in terms of money, which the demised premises will bring on the date the Option Period commences if exposed for rental in the open market by a landlord, who is willing but not obliged to lease, allowing a reasonable time to find a tenant, who is willing but not obliged to lease.
(c) Tenant shall furnish to Landlord on the date of its exercise of its option to renew, an appraisal by a member of the American Institute of Real Estate Appraisers, or its successor (any such member being herein- after referred to as a "Qualified Appraiser") of the fair market rental value of the demised premises. If Landlord shall disagree with the results of such appraisal, it shall cause an appraisal of the demised premises to be made by another Qualified Appraiser and shall furnish such appraisal to Tenant within twenty (20) days after receipt of Tenant's appraisal. If Landlord and Tenant's appraisals are within ten (10%) percent of each year thereafter other, the fair market rental value shall be the average of the two appraisals. If not and if within ten (10) days after submission by 3%Landlord to Tenant of Landlord's appraisal, compounded)Landlord and Tenant are unable to agree on the amount of the fair market rental value, the Qualified Appraisers of Land- lord and Tenant respectively, shall select a third Qualified Appraiser whose appraisal of the fair market rental value of the demised premises shall be conclusive for purposes of this Article. “Fair Market Rate” means If Landlord and Tenant's Appraisers cannot select a third Qualified Appraiser, such Appraiser shall be selected in accordance with the market rate for rent chargeable for provisions of Article 33. Landlord shall bear the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availabilityentire cost of Landlord's Appraisal, and location Tenant shall bear the entire cost of Tenant's Appraisal. Landlord and proximity to servicesTenant shall equally share the cost of the services rendered by the third Qualified Appraiser. Within thirty In all events, the selection of the third Qualified Appraiser and its determination shall be made within thirty-five (3035) days of Option Noticethe date upon which Landlord's appraisal is submitted.
(d) If the third Qualified Appraiser's determination of the fair market rental value of the demised premises is in excess of 110% of the fair market rental value determined by Tenant's Qualified Appraiser, then in that event Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate have a right within fifteen (15) days after of its receipt of the third Qualified Appraiser's determination to terminate its option to renew by notice to Landlord, which notice and Tenant’s opinion 's right to terminate shall be strictly conditioned upon Landlord simultaneously receiving a similar termination notice from Fittin, and Tenant furnishing Landlord with its check made payable to Landlord in the amount of Fair Market Rate one-half the cost of the services rendered by the third Qualified Appraiser.
(“e) The option to renew as set forth above is expressly made subject to the following two conditions: (i) simultaneous with Tenant's exercise of this option, Landlord shall have received notice of an option to renew from Fittin, and (ii) any tenant of the building who occupies in excess of 5,882 rentable square feet has not as of June 1, 1985, entered into a lease covering the demised premises or the premises occupied by Fittin.
(f) In the event either of the conditions set forth in the sub- division (e) has occurred, then in that event Tenant shall not have the right to extend the term of the Lease and in lieu thereof Tenant shall have the right at its election by notice to Landlord ("New Lease Notice"), which notice shall be given within fifteen (15) days of its receipt of Landlord’s Value Notice”'s notice advising Tenant that the conditions set forth in sub- division (d) have not been met, to enter into a new lease with Landlord (hereinafter called the "New Lease") covering premises of approximately 2,306 rentable square feet presently occupied by Timeplex, Inc. (herein- after called the "New Premises"). If In the parties are unable event Tenant elects to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this enter into a New Lease, effective as then the term of this Lease shall expire on December 31, 1985, and the term of the last day New Lease covering the New Premises shall commence January 1, 1986, and expire December 31, 1990. All of the then-current Rental Term. Alternativelyterms, Tenant conditions and Landlord may mutually agree to submit covenants of the determination of Fair Market Rate to a “Market Assessment Process,” New Lease shall be the same as provided in Exhibit “F” – Market Assessment Process.this Lease except for the following: (i) the demised premises shall be the New Premises;
Appears in 1 contract
Samples: Lease (Medicore Inc)
OPTION TO RENEW. Provided (a) Landlord hereby grants Tenant is not, and has not been the right to renew the term of this Lease for one period of five (more than two 5) years (2the "Renewal Term") times), in default under any of on the same terms and conditions contained hereinin the Lease, except that (i) Basic Rent for the Renewal Term shall be as set forth hereinbelow, (ii) except as expressly provided in this Section 3.04, Tenant shall have two not be entitled to any concessions with respect to the Renewal Term including, without limitation, commissions or allowances, and (2iii) no additional consecutive five (5) year options to renew and extend shall apply following the Rental expiration of the Renewal Term. Written notice (the "Tenant's Election") of Tenant's exercise of its option to renew ("Option to Renew") the Term as provided herein (“Option”). The Option shall only of this Lease for a Renewal Term must be exercised by Tenant delivering written notice thereof given to Landlord no earlier less than the date which is nine (9) months but no more than twelve (12) months prior to the expiration date the Term of the Rental Lease would otherwise expire. Tenant shall have no right to renew this Lease if Tenant is in default at the time of Tenant's Election or at any time thereafter before the commencement of the Renewal Term.
(b) In the event Tenant validly exercises its Option to Renew the Term of this Lease as herein provided, Basic Rent shall be adjusted as of the commencement date of the Renewal Term as follows:
(1) Commencing within ten (10) days after Landlord's receipt of Tenant's Election, Landlord and no later than Tenant shall attempt to agree upon Basic Rent for the date which is nine Premises for the Renewal Term, such rent to equal the estimated fair market rental value of the Premises for the Renewal Term. If the parties are unable to agree upon the rent within thirty (930) months prior days, then within thirty (30) days thereafter each party, at its own cost and by giving notice to the expiration other party, shall appoint a real estate appraiser with at least five (5) years full- time commercial real estate appraisal experience in the area in which the Premises are located to appraise and set rent for the Renewal Term. If a party does not appoint an appraiser within ten (10) days after the other party has given notice of the Rental Term (name of its appraiser, the “Option Notice”). The Base Monthly Rent during the first year of each extension periods single appraiser appointed shall be the lesser of: sole appraiser and shall set rent for the Renewal Term. If each party shall have so appointed an appraiser, the two appraisers shall meet promptly and attempt to set the rent for the Renewal Term. If the two appraisers are unable to agree within thirty (i30) days after the second appraiser has been appointed, they shall attempt to select a third appraiser meeting the qualifications herein stated within ten (10) days after the last day the two appraisers are given to set rent. If the two appraisers are unable to agree on the third appraiser within such ten (10) day period, either of the parties to this Lease, by giving five (5) days notice to the other party, may apply to the then current Fair Market Rate (as defined) for comparable space within presiding judge of the Project, and (ii) the Base Monthly Rent then in effect Superior Court of King County for the Leased Premises during selection of a third appraiser meeting the last month qualifications stated in this paragraph. Each of the initial Rental Term parties shall bear one-half (increasing each year thereafter by 3%1/2) of the cost of appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, compounded). “Fair Market Rate” means the market rate however selected, shall be a person who has not previously acted in any capacity for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. either party
(2) Within thirty (30) days after the selection of the third appraiser, a majority of the appraisers shall set rent for the Renewal Term. If a majority of the appraisers are unable to agree upon the rent within the stipulated period of time, the three appraisals shall be added together and their total divided by three (3). The resulting quotient shall be the rent for the Premises during the Renewal Term. If, however, the low appraisal and/or the high appraisal is/are more than five percent (5%) lower and/or higher than the middle appraisal, the low appraisal and/or the high appraisal shall be disregarded. If only one (1) appraisal is disregarded, the remaining two (2) appraisals shall be added together and their total divided by two (2), and the resulting quotient shall be rent for the Premises during the Renewal Term.
(3) For purposes of determining the rent for the Renewal Term, including the determination of rent by the appraisers, the "fair market rental value" shall be based on the actual rental rates which ready and willing renewal tenants are paying or would pay, as of the Renewal Term commencement date, as annual rent for a primary renewal premises (as distinguished from the rent payable for a sublet premises or with respect to an assignment of an interest in an existing lease) to a ready and willing landlord of such primary renewal premises for space comparable to the Premises in a building comparable to the Building, taking into consideration any allowances, concessions or other special benefits being offered to such renewal tenants. Rental rates quoted or used under sublease agreements shall be considered rates of special circumstances and shall be excluded from the definition of "fair market rental value" under this Section 3.04. During the Renewal Term, the Base Year for Operating Expenses shall not change.
(c) The Option Noticeto Renew may not be assigned or transferred by Tenant except in connection with an assignment of this Lease.
(d) In the event Tenant timely and properly exercises the Option to Renew, Landlord and Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate rent for the Renewal Term, execute an amendment to a “Market Assessment Process,” as provided this Lease extending the Lease Term on the terms and conditions set forth in Exhibit “F” – Market Assessment Processthis Section 3.05, but this Lease will be extended in accordance with Tenant's exercise of the Option to Renew whether or not the amendment is signed.
Appears in 1 contract
Samples: Lease Agreement (Fine Com Corp)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any options to renew the lease for a period of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew years each provided that in exercising each Tenant (i) is not in default hereunder beyond any applicable cure period and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering ii) gives Landlord written notice thereof to via registered mail return receipt requested and received by Landlord no earlier not later than the date which is twelve (12) months prior to initial lease expiration or first extended option period as applicable. All terms and conditions as contained in the Lease shall remain the same except that the renewal rate shall be the "prevailing market rate" for similar space in comparable buildings for similar inducements, and lease term in downtown Boca Raton area. If Tenant should fail to exercise the first option to renew within the time period aforementioned upon the terms and conditions herein stated, both the first and second option to renew shall automatically lapse and expire and Tenant shall have no further right, title or interest in and to the Premises upon expiration of the Rental Term initial Lease term. The tern "prevailing market rate" per rentable square foot shall mean the annual rate of rent determined by Landlord and no later than accepted by Tenant, as the prevailing market base rental rate in the downtown area of Boca Raton, Florida for comparable office space which has been built out for occupancy (taking into consideration the duration of the terms for which such space is being leased, location and/or floor level within the applicable building, when the applicable rate first becomes effective, quality and location of the applicable building, rental concessions, build-out allowances and other relevant factors) for a lease term commencing on the Option Period commencement date. Executed leases and bona fide written offers to lease comparable space in the Building received by Landlord from third parties (at arm's length) may be used by Landlord as an indication of the prevailing market rate. In the event of Tenant's rejection of Landlord's quoted prevailing market rate with ten (10) days of receipt of same from Landlord, Landlord and Tenant shall thereafter each select a broker with substantial experience in the downtown area of Boca Raton, Florida, office market for the purpose of making a determination of the prevailing market rate for each option period commencement date; provided that if either Landlord or Tenant shall fail to notify the other of the identity of its selected broker as aforesaid within twenty (20) days of the others' written demand therefore (which demand shall identify the notifying party's broker and make specific reference to the consequences imposed by this provision for non-selection), the party who shall have failed to identify its broker shall be deemed to have irrevocably consented to the prevailing market rate determined in good faith by the broker selected by the other party. Assuming that both brokers are timely selected, however, the two selected brokers shall then each independently make a determination of prevailing market rate for each subsequent option period commence date and shall together select a third broker, experienced as aforesaid. The jointly selected broker shall then select one of the two determinations as aforesaid for each remaining option period commencement date which is nine (9) months prior closest to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the prevailing market rate for rent chargeable for the Leased Premises based upon the following factors applicable purposes of this provision. This determination, so long as it is made in good faith, shall be final and not subject to appeal. Each party to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, Lease shall pay the fees and location cost of its own broker and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion one-half of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen fees and costs payable to the jointly-selected broker determined as aforesaid (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”the foregoing collectively referred to as the "Three-Broker Method"). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
OPTION TO RENEW. Provided (a) Landlord hereby grants to Tenant is not, and has not been one (more than two 1) option (2the “Option”) times), in default under any to extend the term of the terms and conditions contained herein, Tenant shall have two (2) this Lease for an additional consecutive period of five (5) year options to renew years (the “Option Term”), all on the following terms and extend conditions:
(1) The Option must be exercised, if at all, by written notice irrevocably exercising the Rental Term as provided herein Option (“OptionOption Notice”). The Option shall only be exercised ) delivered by Tenant delivering written notice thereof to Landlord no not earlier than the date which is fifteen (15) months and not later than twelve (12) months prior to the expiration Term Expiration Date. Further, at Landlord’s option, the Option shall not be deemed to be properly exercised if, as of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Option Notice or at the Term Expiration Date, (i) Tenant is in material default under this Lease, or (ii) Tenant has assigned this Lease or sublet any portion of the “Option Notice”Leased Premises (other than with respect to a Permitted Transfer). The Base Monthly Rent during Provided Tenant has properly and timely exercised the first year Option, the term of each extension periods this Lease shall be extended for the lesser of: period of the Option Term, and all terms, covenants and conditions of this Lease shall remain unmodified and in full force and effect, except that (i) the then current Fair Market Rate Landlord Improvements set forth in Exhibit B and the Base Building Upgrades set forth in Exhibit B-1 shall not apply to the Option Term (as defined) for comparable space within Tenant shall accept the ProjectLeased Premises in its AS IS condition existing prior to the Option Term), and (ii) the Base Monthly Rent then shall be modified as set forth in effect subsection 8.1(a)(2) below.
(2) The Base Rent payable for the Leased Premises during the last month initial year of the initial Rental Option Term shall be the greater of (increasing each year thereafter by 3%i) the Base Rent payable on the Term Expiration Date, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30ii) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Termrental rate per rentable square foot (as further defined below, “FMRR”) being agreed to (with annual market increases) in renewal leases by the Landlord and other landlords of buildings in the Emeryville, California area which are comparable in quality, location and prestige to the Building (“Comparable Buildings”) and tenants leasing space in the Building or Comparable Buildings. AlternativelyAs used herein, Tenant “FMRR” shall mean the rental rate per rentable square foot for which Landlord and/or other landlords are entering into renewal leases with tenants leasing space from Landlord and other landlords in the Building and/or Comparable Buildings (“Comparative Transactions”), taking into consideration fair market annual increases, and the value of existing tenant improvements in the Leased Premises. To the extent such other Comparable Buildings have historically received lower or higher rents from the rents in the Building, then for the purpose of arriving at the FMRR, such rates when used to establish the FMRR in the Building shall be increased or decreased as appropriate to reflect such historical differences. Landlord may mutually agree to submit the shall provide its determination of Fair Market Rate the FMRR to Tenant within twenty (20) days after Landlord receives the Option Notice. Tenant shall have ten (10) days (“Tenant’s Review Period”) after receipt of Landlord’s notice of the FMRR within which to accept such FMRR or to reasonably object thereto in writing. In the event Tenant objects to the FMRR submitted by Landlord, Landlord and Xxxxxx shall attempt to agree upon such FMRR. If Landlord and Tenant fail to reach agreement on such FMRR within ten (10) days following Tenant’s Review Period (the “Outside Agreement Date”), then each party shall place in a “Market Assessment Process,” separate sealed envelope its final proposal as provided to FMRR and such determination shall be submitted to arbitration in Exhibit “F” – Market Assessment Processaccordance with subparagraph 8.1(b) below.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant shall have the option to extend the Term of this Lease until December 31, 2001 ("Option Term") upon the expiration of the initial Term of this Lease, by giving notice of exercise of the option ("Option Notice") in writing to Landlord at least six (6) months before the expiration of the initial Lease Term. Notwithstanding the foregoing, if Tenant is not, and has not been (more than two (2) times), in default under any term or provision of this Lease as of the date of the giving of the Option Notice, the Option Notice shall be null, void, and of no effect, or if Tenant is in default on the date the Option Term is to commence, the Option Term shall not commence, and this Lease shall expire at the end of the initial Lease Term. The monthly Base Rent for the Premises during the Option Term shall be set at the then prevailing Monthly Base Rent for comparable quality office buildings in the Santa Xxx area. Included in this calculation shall be Monthly Base Rent, any escalations thereto that are common in the market at the time and other terms and conditions contained herein, Tenant then common in the market. The parties shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of after Landlord receives the Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate Notice in which to agree on the Monthly Base Rent and other Terms and Conditions during the Option Term. If the parties agree on the Monthly Base Rent and other terms and conditions for the applicable renewal extended term within such thirty (30) day period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord they shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)promptly execute an amendment to this Lease stating such terms and conditions. If the parties are unable not able to resolve their differences agree within thirty such period, then Landlord and Tenant shall seek two (302) independent appraisers who shall determine these issues. In the event the two (2) appraisers cannot agree with one another, then the two (2) appraisers are to select a third appraiser, and the average of the three (3) appraisals will be used by the appraisers to determine the fair market value for comparable buildings in the Santa Xxx area. The three (3) appraisers will have sixty (60) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as to finalize these issues. The cost of the last day of the then-current Rental Term. Alternatively, Tenant appraisers shall be split equally between Landlord and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessTenant.
Appears in 1 contract
Samples: Office Building Lease (Scoop Inc/Ca)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than hereby granted the option to extend the Lease Term for two (2) times), in default under any additional terms of five years each. Such extended terms will be on the same terms and conditions contained hereinas are set forth in this Lease, Tenant shall have two except that the Base Rent (2as hereinafter defined) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised payable by Tenant delivering written notice thereof during such extended terms shall be equal to Landlord no earlier than the date which is twelve (12) months prior to the expiration 95% of the Rental Term prevailing fair rental which non-renewing, non-equity tenants are then receiving in connection with the lease of comparable space and no later than length at Class A office space in Clayton, Missouri and constructed in or after calendar year 2000. Fair rental shall mean and take into account in addition the date which is age of the building, location and floor level, definition of rentable square footage, leasehold improvement allowances, rental concessions and/or abatements, moving expenses, term of lease under consideration and extent of services provided, base year operating expenses and any other relevant term or condition in making such evaluation. At least nine (9) months (but no greater than 12 months) prior to the expiration end of the Rental Term (the “Option Notice”). The Base Monthly Rent during Lease Term, or, if applicable, the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, extended term, sizeTenant shall notify Landlord, expense stopin writing, tenant allowance, existing tenant finishes, parking availability, and location and proximity of its desire to services. Within renew; within thirty (30) days of Option Notice, Tenant shall notify Landlord receipt of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Ratesuch notice by Landlord, Landlord shall notify Tenant Tenant, in writing, of Landlord’s opinion 's estimation of Fair Market Rate the prevailing fair rental for the Leased Premises. If, within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within next thirty (30) days thereafterdays, Landlord or Tenantand Tenant cannot agree as to the prevailing fair rental, then they each shall immediately select an MAI appraiser with at its sole optionleast ten (10) years experience in the appraisal of office space in the St. Louis metropolitan area. Upon selection, may terminate this Lease, effective as such appraisers shall work together in good faith to agree upon the prevailing fair rental of the last Leased Premises. If said appraisers cannot agree within twenty (20) days after their appointment, then, within ten (10) days after the expiration of such twenty (20) day period, such appraisers shall select a third MAI appraiser with at least ten (10) years of experience in the appraisal of office space in the St. Louis metropolitan area. Once the third appraiser has been selected, then such third appraiser shall within ten (10) days after appointment make its determination of the then-current Rental Termprevailing fair rental amount and such determination shall be binding upon both Landlord and Tenant as the rental rate for such extended term. Alternatively, Tenant The parties shall each bear the costs of their own appraiser and Landlord may mutually agree to submit shall share equally in the determination costs of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthe third appraiser.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and has not been Sublandlord hereby grants to the Subtenant the right to renew the Term of this Sublease for an additional forty-five (more than two 45) months (2) timesthe "Renewal Term"), in default under any of subject to the following terms and conditions contained herein, Tenant shall have two conditions:
(2i) additional consecutive five (5) year options Subtenant must give Sublandlord notice of Subtenant's intention to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof "Intention to Landlord Renew Notice") no earlier than the date which is twelve eight (128) months and no later than six (6) months prior to the expiration of the Rental Term and no later than Term. If Subtenant fails to give any notice within the date which time period set forth above, then, this Sublease Agreement shall expire at the end of the initial Term. Time is nine (9) months prior of the essence with respect to the expiration giving of the Rental Term (the “Option such intention to Renew Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and .
(ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Sublandlord's receiving Subtenant's Intention to Renew Notice, Tenant Sublandlord shall notify Landlord Subtenant of Tenant’s option of Fair Market Rate for the market minimum rental rate to be applicable renewal periodduring the Renewal Term. If Landlord Subtenant disagrees with Tenant’s opinion Sublandlord's determination of the Fair Market Ratemarket rental rate to be applicable during the Renewal Term, Landlord it shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)so Notify Sublandlord and the parties agree to negotiate in good faith to arrive upon the market rental rate to be applicable during the Renewal Term. If the parties are unable to resolve their differences cannot agree within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day Sublandlord's initial notification of its determination of the then-current Rental Term. Alternativelymarket rental rate, Tenant than Subtenant's right to renew shall lapse and Landlord may mutually agree to submit the this entire Article shall become null, void and of no further force and effect.
(iii) If Subtenant accepts Sublandlord's determination of Fair Market Rate the market rental rate, or the parties agree upon a market rental rate during the period set forth in the foregoing Paragraph (2), and if Subtenant is not in default under any of the terms or provision of this Sublease Agreement, then the parties shall memorialize the exercise of the Renewal by executing an amendment to a “Market Assessment Process,” the Sublease Agreement to extend the Term of this Sublease Agreement for the Renewal Term, upon the same terms and conditions herein contained; provided however, the monthly base rent payable by Subtenant to Sublandlord for the Renewal Terms shall be at the market rate as provided in Exhibit “F” – Market Assessment Processdetermined by Paragraph (2) above and there shall be no further right to renew the Term of this Sublease Agreement.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not(a) Lessor hereby grants to Lessee two options (each, and has not been a "Renewal Option") to renew the term of this Lease, each for an additional term of five (more than two 5) years (2) timeseach, a "Renewal Option Term"), in default under any of upon and subject to the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew set forth in this Paragraph 39 of this Addendum and extend Paragraph 39 of the Rental Term as provided herein (“Option”)Lease. The first Renewal Option Term will commence immediately following the Expiration Date of the initial term of this Lease (the "Initial Term") and will terminate on the fifth anniversary of the Expiration Date of the Initial Term. The first Renewal Option shall only be exercised exercised, if at all, by Tenant delivering written notice thereof to Landlord no earlier than Lessor on or before the date which that is twelve (12) months prior to the Expiration Date of the Initial Term. The second Renewal Option Term will commence immediately following the expiration date of the first Renewal Option Term and will terminate on the fifth anniversary of the expiration date of the first Renewal Option Term. The second Renewal Option shall be exercised, if at all, by written notice to Lessor on or before the date that is twelve (12) months prior to the expiration date of the Rental first Renewal Option Term. If Lessee exercises a Renewal Option, each of the terms, covenants and conditions of this Lease shall apply during the applicable Renewal Option Term and no later than as though the expiration date of the applicable Renewal Option Term was the date which is nine originally set forth herein as the Expiration Date of this Lease, provided that: (91) months prior during the first Renewal Option Term, there shall only be one more Renewal Option under this Paragraph 39, and during the Second Renewal Option Term, there shall be no further Renewal Options under this Lease, (2) the monthly Base Rent to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent be paid during the first year of each extension periods the Renewal Option Term shall be the lesser of: greater of (i) one hundred five percent (105%) of the then current Fair Market Rate (as defined) monthly Base Rent payable for comparable space within the Projectmonth immediately prior to the commencement of the applicable Renewal Option Term, and or (ii) the Base Monthly Rent then in effect Fair Market Rent, as hereinafter defined, for the Leased Premises for the Renewal Option Term, and (3) the monthly Base Rent to be paid during each year after the last first year of the Renewal Option Term shall be equal to one hundred five percent (105%) of the monthly Base Rent payable for the preceding year. As used herein, the term "Fair Market Rent" for the Premises shall mean the monthly Base Rent that Lessor could obtain for each month of the initial Rental first year of the applicable Renewal Option Term from a third party desiring to lease the Premises for a five (increasing each year thereafter by 5)-year term commencing at the commencement of the applicable Renewal Option Term, taking into account the increases in rent provided under clause (3%), compounded)above, the age of the Building, the size of the Premises, the quality of construction of the Building, the other terms of this Lease, the rental and any other consideration then being obtained for new leases of space comparable to the Premises in the locality of the Building and all other factors that would be relevant to a third party desiring to lease the Premises for a five (5)-year term commencing at the commencement of the applicable Renewal Option Term in determining the rental such party would be willing to pay therefor, but excluding any rental value attributable to any items Lessee is permitted to remove from the Premises upon expiration of the term of this Lease pursuant to Paragraph 7.4 of this Addendum. “(b) If Lessee exercises a Renewal Option, Lessor shall send to Lessee, on or before the date that is one hundred twenty (120) days prior to the Expiration Date of the Initial Term, in the case of the first Renewal Option, or one hundred fifty (150) days prior to the expiration date of the first Renewal Option Term, in the case of the second Renewal Option, a notice setting forth the Fair Market Rate” means the market rate for rent chargeable Rent for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the first year of the applicable renewal periodRenewal Option Term. If Landlord disagrees with Tenant’s opinion Lessee disputes Lessor's determination of the Fair Market RateRent for the first year of a Renewal Option Term, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences Lessee shall, within thirty (30) days thereafterafter the date of Lessor's notice setting forth Lessor's determination thereof, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree send to submit the Lessor a notice stating that Lessee disagrees with Lessor's determination of Fair Market Rate Rent for the first year of the Renewal Option Term and elects to a “Market Assessment Process,” resolve the disagreement as provided in Exhibit “F” – subparagraph 39(c) below. If Lessee does not send to Lessor a notice as provided in the previous sentence, Lessor's determination of the Fair Market Assessment ProcessRent shall be the basis for determining the monthly Base Rent to be paid by Lessee hereunder during the first year of the applicable Renewal Option Term. If Lessee elects to resolve the disagreement as provided in subparagraph 39(c) below and such procedures shall not have been concluded prior to the commencement of the applicable Renewal Option Term, Lessee shall pay monthly Base Rent in an amount equal to the greater of (i) one hundred five percent (105%) of the monthly Base Rent payable for the month immediately prior to the commencement of the applicable Renewal Option Term or (ii) the Fair Market Rent (on a monthly basis) as determined by Lessor in the manner provided above. If the amount of Fair Market Rent for the first year of the applicable Renewal Option Term as finally determined pursuant to subparagraph 39(c) is greater than Lessor's determination, Lessee shall pay to Lessor the difference between the amount paid by Lessee and the Fair Market Rent as so determined pursuant to subparagraph 39(c) within thirty (30) days after the determination. If the Fair Market Rent for the first year of the applicable Renewal Option Term as finally determined pursuant to subparagraph 39(c) is less than Lessor's determination, the difference between the amount paid by Lessee and the Fair Market Rent as so determined pursuant to subparagraph 39(c) shall be credited against the next installment(s) of monthly Base Rent due from Lessee to Lessor hereunder.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not5.1 Lessee, faithfully performing its obligations and has undertakings hereunder and not been being in default, shall have the option to renew this Lease for one (more than two 1) period of three (23) times), in default under any years commencing at the expiration of the Term, on the same terms and conditions contained hereinas those provided in this Lease, Tenant except rental which shall have two (2) additional consecutive five (5) year options be the then fair market rental rate for similar buildings in the area.
5.2 In order to renew and extend exercise the Rental Term as provided herein (“Option”). The Option said option to renew, the Lessee shall only be exercised by Tenant delivering give written notice thereof to Landlord no earlier than the date which is twelve Lessor at least six (126) months prior to the expiration expiry of the Rental Term and no later than the Term, of its intention to renew this Lease for a further period of three (3) years. The date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year giving of each extension periods such notice shall be hereinafter referred to as the lesser of: (i) "EXERCISE DATE".
5.3 Following the then current Fair Market Rate (as defined) for comparable space within Exercise Date, Lessor and Lessee shall in good faith attempt to agree on the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the fair market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal periodrental. If Landlord disagrees with Tenant’s opinion of the Fair Market RateLessee and Lessor are unable to agree upon such fair market rental, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate then within fifteen (15) days after receipt of Tenant’s opinion the Exercise Date, Lessee and Lessor shall jointly appoint a real estate appraisal firm based in Montreal with at lease five (5) years experience in appraising commercial real estate (the "APPRAISER") to determine such fair market rental. Lessee and Lessor agree that the Appraiser in making its appraisal of Fair Market Rate the fair market rental shall take into account the terms of the Lease, including the triple net nature thereof, the condition of the Premises, the rent payable for premises similar to the Premises having regard to the nature, location and usage of the Premises and all other appropriate factors such as tenant improvements, brokerage fees and other inducements offered for comparable buildings. The fair market rental shall be determined by such Appraiser within ninety (“Landlord’s Value Notice”)90) days of the Exercise Date.
5.4 If Lessor and Lessee cannot jointly agree on an Appraiser, then within twenty (20) days of the Exercise Date, each shall appoint an Appraiser. Both appraisals shall be completed and delivered simultaneously to Lessor and Lessee on the fiftieth (50th) day following the Exercise Date. If the parties are unable to resolve their differences higher appraisal is less than 5% greater than the lower appraisal, then the fair market rental shall be the average of both appraisals. If the higher appraisal is more than 5% greater than the lower appraisal, then within thirty sixty-five (3065) days thereafterfollowing the Exercise Date, Landlord or Tenant, at its sole option, may terminate this Lease, effective as the Appraisers shall jointly select another Appraiser to make an additional appraisal of the fair market rental, which shall be completed and delivered to Lessor and Lessee within ninety (90) days following the Exercise Date. In this last day case, fair market rental shall be the average of the then-current Rental Termtwo closest appraisals.
5.5 Each party shall bear the cost of the Appraiser selected solely by such party. Alternatively, Tenant All costs of any Appraisers jointly selected by Lessor and Landlord may mutually agree Lessee shall be borne equally by Lessor and Lessee. The fair market rental determined by (i) the sole jointly elected Appraiser in accordance with Section 5.3 or (ii) by averaging certain appraisals pursuant to submit Section 5.4 shall be final and binding on Lessor and Lessee with respect to the determination of Fair Market Rate to a “Market Assessment Process,” as provided three year renewal term in Exhibit “F” – Market Assessment Processquestion.
Appears in 1 contract
Samples: Lease Agreement (Hasbro Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any hereunder at the time of the terms and conditions contained hereinexercise thereof, Tenant shall have two the option to renew this Lease for one (21) additional consecutive term of five (5) years at a base rental rate as of the beginning of such renewal term, and annual escalations thereof, to be negotiated between Landlord and Tenant, each acting in its own discretion, respectively, as hereinafter provided. In order to exercise its option to renew for the renewal term, Tenant must notify Landlord in writing of the exercise of said option to renew at least one hundred eighty (180) days prior to the end of the Extended Term. If Tenant fails to notify Landlord of its exercise of said option at least one hundred eighty (180) days prior to the end of the Extended Term, or if, within ninety (90) days after Tenant has notified Landlord of the exercise of its option to renew, Landlord and Tenant have not agreed on the base rental rate, and annual escalations thereof, for such renewal term, then in such case, this option to renew shall terminate and expire and be of no further force or effect. However, if Tenant timely exercises its option to renew for the said renewal term, and Landlord and Tenant agree within ninety (90) days thereafter, on the base rental rate and annual escalations thereof for such renewal term, then in such case the Lease shall be renewed for a five (5) year options to renew term at the base rental rate and extend annual escalations thereof as agreed upon by Landlord and Tenant and otherwise upon the Rental Term same terms and conditions as provided herein (“Option”). The Option this Lease except that Tenant shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than accept the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (Premises in "as defined) for comparable space within the Projectis" condition, and Landlord shall have no obligation to upfit the same (ii) unless otherwise agreed by Landlord and Tenant in the Base Monthly Rent then in effect for renewal negotiations to determine the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compoundedbase rental rate and annual escalations thereof). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable not be deemed to have any additional renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
OPTION TO RENEW. (a) Provided that no Event of Default under the Lease, (subject to notice and cure periods provided in this Lease) exists at such time, Tenant is not, and has not been given the option (more than two "Renewal Option") to extend the Term of this Lease on all the provisions contained in this Lease except as to Rental (2) timesas defined below), in default under any of the terms and conditions contained herein, Tenant . Such Renewal Option shall have two be for one (21) additional consecutive five (5) year options term (the "Option Term") following the expiration of the Term hereinabove set forth in Section 2.2 of this Lease. If Tenant elects to renew and extend the Rental Term as provided herein (“Option”). The exercise such Renewal Option such Renewal Option shall only be exercised by Tenant delivering giving written notice thereof of exercise of the Renewal Option (the "Option Notice") to Landlord no earlier than the date which is twelve at least six (126) months but not more than one (1) year before the expiration of the Term. If such Option Notice is not sent during such six (6) month period or an Event of Default under this Lease (subject to notice and cure periods provided in this Lease) exists at such time, at then such Renewal Option shall be null and void and in no event shall Tenant have any right to extend the Term of this Lease beyond the Term even if it validly exercises the Renewal Option set forth herein.
(b) Tenant shall pay to Landlord, as Rental for the Premises during the Option Term, the Renewal Rental Rate (as hereinafter defined). The Renewal Rental Rate shall be prevailing fair market rental rate as reasonably determined by Landlord. The term "prevailing fair market rental rate" for the purposes of the Lease shall mean what a willing, comparable, new, non-expansion, non-renewal, non-equity tenant would pay, and a willing, comparable landlord of a comparable office building in the vicinity of the Building would accept, at arm's length, giving appropriate consideration to the rental rate per rentable square foot, the ratio of rentable square feet to usable square feet, escalation (including type and base year) and abatement provisions reflecting free rent, length of the lease term, size and location of premises being leased, building standard work letter and/or tenant improvement allowances, if any, and other generally applicable conditions of tenancy for the space in question so that this Tenant will obtain the same rent and other benefits that Landlord would otherwise give to any comparable prospective tenant. If the parties hereto are unable to agree upon this Renewal Rate prior to the expiration of the Term, then within ten (10) days each party, at its sole cost, shall appoint a real estate appraiser with at least five (5) years' full-time commercial appraisal experience in the San Fernando Valley to determixx xxx Xenewal Rental Rate for the Option Term and no later than based upon fair market rental rate specified above. If either party does not appoint an appraiser within such ten (10) day period, then the date which is nine single appraiser appointed shall set the Renewal Rental Rate. If the two (92) months prior appraisers are unable to agree on the expiration Renewal Rental Rate but their respective appraisals of the Rental Term fair market rental rate are within ten percent (the “Option Notice”). The Base Monthly Rent during the first year 10%) of each extension periods other, then the Renewal Rental rate shall be determined by adding the two (2) appraisals of fair market rental together and dividing the total by two (2); the resulting quotient shall be the lesser of: Renewal Rental Rate. If the two (i2) appraisals of fair market rental are not within ten percent (10%) of each other, then the then current Fair Market Rate two (as defined2) for comparable space within appraisers shall select a third appraiser who meets the Project, qualifications stated in this Section 2.7. Landlord and Tenant shall each bear fifty percent (ii50%) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means cost of the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesthird appraiser. Within thirty (30) days after the selection of Option Noticethe third appraiser, Tenant the majority of appraisers shall notify Landlord of Tenant’s option of Fair Market set the Renewal Rental Rate for the applicable renewal periodOption Term. If Landlord disagrees with Tenant’s opinion a majority of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties appraisers are unable to resolve their differences set the Renewal Rental Rate within the thirty (30) days thereafterday period, the three (3) appraisals of fair market rental shall be added together and their total divided by three (3) and the resultant quotient shall be the Renewal Rental Rate. Except for the adjustment to Rental as provided above, all Rental payable during the Option Term shall be payable in the same manner as Rental is paid during the Initial Term in accordance with the provisions of Section 3.1.
(c) Landlord and Tenant shall execute and deliver appropriate documentation to evidence any renewal of this Lease and the terms and conditions of this Lease during the Option Term.
(d) The option granted in this Article 2 shall be available only to the original Tenant or Tenanta permitted Assignee (as defined in Section 12.4) under this Lease and shall not be available to any subsequent assignee, at its sole option, may terminate this Lease, effective as sublessee or other transferee of the last day original Tenant. Time is of the then-current Rental essence of all of the provisions of this Article 3 relating to Tenant's exercise of the option to extend the Term. AlternativelyTenant's failure to comply with any of the time or other requirements set forth in this Article 2 shall cause the option to automatically cease and terminate and, Tenant and Landlord may mutually agree to submit in such event, the determination Lease shall terminate upon the expiration of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthe Term.
Appears in 1 contract
Samples: Lease Agreement (Brilliant Digital Entertainment Inc)
OPTION TO RENEW. Provided Landlord hereby grants to Tenant is not, and has not been (more than two (2) timesoptions (the “Renewal Options”) to renew this Lease Agreement for a term of three (3) years each (“Renewal Terms”), in default under any for all portions of the Premises then being leased by Tenant as of the date the applicable Renewal Term is to commence. Each Renewal Term shall be on the same terms and conditions contained hereinas set forth in this Lease Agreement, except as modified by the terms, covenants and conditions as set forth below:
a. If Tenant elects to exercise said option, then Tenant shall provide Landlord with written notice nine (9) months prior to the expiration of the then current Term of the Lease Agreement (“Renewal Notice”). If Tenant fails to provide such notice, Tenant shall have two (2) additional consecutive five (5) year options no right to extend or renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by of the Lease Agreement; provided, however, that Landlord agrees to provide Tenant delivering with written notice thereof to Landlord no earlier than of the date which is deadline for exercising the Renewal Notice twelve (12) months prior to the expiration of the Rental Term and no later than Term. Time is of the date which is nine (9) months prior essence with respect to the expiration giving of the Rental Term (the “Option such Renewal Notice”). The Base Monthly Rent during the first year of each extension periods Renewal Notice shall be given in the lesser of: (i) manner provided in the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect Lease Agreement for the Leased Premises during the last month giving of the initial Rental Term notices to Landlord.
b. Within ten (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (3010) days of Option Notice, Tenant shall notify Landlord of Landlord’s receiving Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market RateRenewal Notice, Landlord shall notify Tenant of Landlord’s opinion determination of the “Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate Rental Rate” to be applicable during the Renewal Term (“Landlord’s Value Rate Notice”). If the parties are unable Fair Rental Rate as set forth in Landlord’s Rate Notice is acceptable to resolve their differences within Tenant, then Tenant’s exercise of said Renewal Option shall be complete. If the Fair Rental Rate as set forth in Landlord’s Rate Notice is not acceptable to Tenant, Tenant must provide Landlord with written notice on or before thirty (30) days thereaftersubsequent to the receipt of Landlord’s Rate Notice. If Tenant has so timely objected in writing to Landlord’s Rate Notice, then Landlord or and Tenant shall negotiate, in good faith, for up to an additional thirty (30) days to arrive at a mutually acceptable Fair Rental Rate, which is within the definition thereof as set forth below. If, however, at the end of said additional thirty (30) day period Landlord and Tenant have failed to arrive at a mutually acceptable Fair Rental Rate, then Tenant, at within ten (10) days after expiration of said thirty (30) day period, shall either terminate the exercise of its sole option, may terminate Renewal Option or elect to have Fair Rental Value be determined by an arbitrator in accordance with this Lease, effective as Article. All notices under this Paragraph shall be given in the manner provided in the Lease Agreement for the giving of notices.
c. Upon the exercise of the last day Renewal Option, whether by Tenant’s acceptance of Landlord’s determination of the then-current Fair Rental Rate as set forth in Landlord’s Rate Notice, or by a mutually acceptable negotiated Fair Rental Rate pursuant to paragraph b of this Article; then the parties shall memorialize the exercise of the Renewal Option by executing an amendment to the Lease Agreement to extend the Term of the Lease Agreement for the Renewal Term. Alternatively, upon the same terms and conditions herein contained; provided, however, that the monthly installments of Base Rent payable by Tenant and to Landlord may mutually agree to submit for the determination Renewal Term shall be at the Fair Rental Rate as determined by the foregoing paragraph b of this Article.
d. For purposes of this Article, “Fair Market Rate Rental Rate” means the Base Rent that a tenant would pay to a “Market Assessment Process,” landlord under a lease containing other terms and conditions substantially as provided set forth herein with respect to comparable premises in Exhibit “F” – Market Assessment Processa comparable building in the western suburban metropolitan area of Minneapolis, Minnesota.
Appears in 1 contract
Samples: Commercial Lease (Ciprico Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than shall have the right to further extend the Term of this Lease for two (2) times)periods of five (5) years each as hereinafter provided, in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive each such five (5) year options renewal period being sometimes herein referred to as a "Renewal Term". The conditions to such renewals shall be as follows:
(a) The Lease shall be in full force and effect and Tenant shall not be in default in the performance of any of the terms, covenants and conditions of the Lease, in respect to which notice of default has been given and has not been or is not being remedied in the time limits specified in the Lease; provided, however, that Landlord shall have the right, at its sole discretion, to waive the non- default condition;
(b) Such Renewal Term shall be on the same terms, covenants and conditions as in this Lease; provided, however, the annual Base Rent for such Renewal Term shall be the fair market Base Rental rate for such space on the date such Renewal Term shall commence in relation to comparable (in quality and location) space located in the relevant market area. The fair market Base Rent of the Leased Premises shall be determined as of the date three hundred sixty (360) days prior to commencement of the Renewal Term in question. If Tenant has properly elected to renew the Term of this Lease, and extend Landlord and Tenant fail to agree at least three hundred thirty (330) days prior to commencement of the Rental applicable Renewal Term as provided herein upon the fair market Base Rent of the Leased Premises, the amount of the fair market Base Rent of the Leased Premises shall be determined by arbitration in accordance with the provisions of paragraph 7, below (“Option”"Arbitration"). The Option fair market Base Rent of the Leased Premises shall only be exercised based upon Tenant's presently contemplated use of the Leased Premises. In no event shall the Base Rent of the Leased Premises for the Renewal Term in question be less than the Base Rent payable by Tenant delivering written notice thereof to Landlord no earlier than under the date which is twelve (12) months Term of this Lease immediately prior to the expiration commencement of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental applicable Renewal Term (the “Option Notice”"Minimum Renewal Rent"). The Base Monthly Rent during If, however, the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within Base Rent determined in accordance with the Projectprovisions of paragraph 10, and (ii) below, is less than the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option NoticeMinimum Renewal Rent, Tenant shall notify Landlord have the option to cancel its election to renew the Term; provided, however, that Tenant's option to rescind its exercise of its option to renew must be exercised, if at all, not later than three (3) business days following Tenant’s option 's receipt of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion notice of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen Base Rent;
(15c) days after receipt of Tenant’s opinion of Fair Market Rate amount to each other (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as if one appraisal is less than one of the last day of other appraisals and more than the then-current Rental Term. Alternativelyother appraisal by the same amount, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processall three appraisals shall be averaged).
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OPTION TO RENEW. Provided this Lease is in full force and effect and provided further Tenant is notnot then in Default in the payment of Base Rent or Rent Adjustment Deposits, and has not been nor in Default as of any Renewal Commencement Date (more than as defined herein), Tenant is hereby granted two (2) times)successive options (the “Options”) to extend the Term of this Lease on the same terms, conditions and provisions as contained in default under any of the terms and conditions contained Lease, except as otherwise provided herein, Tenant shall have for two (2) additional consecutive five (5) year options to renew and extend periods (the Rental Term as provided herein “Option Periods”), which first option period (“OptionFirst Option Period”). ) shall commence upon the day after the expiration of the initial Term (the “First Renewal Commencement Date”) and end on the day before the fifth (5th ) anniversary of the First Renewal Commencement Date and which second option period (“Second Option Period”) shall commence upon the day after the expiration of the First Option Period (“Second Renewal Commencement Date”) and end on the day before the fifth (5th) anniversary of the commencement of the First Option Period.
(a) The Option Options shall be exercisable only be exercised by Tenant delivering written notice thereof from Tenant to Landlord given no earlier later than the date which is twelve (12) months prior to the expiration of the Rental Term as to the First Option Period and no later than the date which is nine twelve (912) months prior to the expiration of the Rental Term First Option Period as to the Second Option Period, time being of the essence.
(the “Option Notice”). b) The Base Monthly Rent during the first year of each extension periods Option Periods shall be the lesser of: (i) as to the First Option Period ninety-five percent (95%) of the Fair Market Rental Value multiplied by the then current Fair Market Rate (as defined) for comparable space within Rentable Area of the Project, Premises and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable as to the Leased Premises or any comparable premises: rentSecond Option Period, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty one hundred percent (30100%) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market RateRental Value multiplied by the then Rentable Area of the Premises. Tenant shall also continue to pay the Rent Adjustments as determined in accordance with the provisions of Article 4 hereof.
(c) Tenant may only exercise the option applicable to the Second Option Period if Tenant has previously exercised the option applicable to the First Option Period.
(d) Upon the valid exercise of the Options and at the request of either party hereto, Landlord and Tenant agree to enter into a written supplement to this Lease confirming the terms, conditions and provisions applicable to the Option Periods as determined in accordance with this Article 34. If Tenant does not exercise the Options strictly in accordance with this Article 34, the Options shall notify Tenant become null and void.
(e) Landlord shall advise Tenant, not less than six (6) months prior to the commencement of Landlord’s opinion any Option Period, if Landlord believes the definition of Fair Market Rate within fifteen (15) days after receipt Non-Controllable Common Area Charges or Non-Controllable Expenses respectively referenced in Schedules 3 and 5 attached hereto should be modified to incorporate additional categories of Tenant’s opinion of Fair Market Rate Non Controllable Common Area Charges or Non Controllable Expenses and identify such proposed additions (“Landlord’s Value NoticeProposed Additions”). If In the parties are unable event Landlord and Tenant fail to resolve their differences agree on such additions within thirty sixty (3060) days thereafter, Landlord or Tenantthe parties shall submit the dispute to arbitration pursuant to the terms of Schedule 6(b), at its sole option, may terminate this Lease, effective as of modified to cause the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually arbitrators to either agree to submit include or exclude the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessProposed Additions.
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OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive - five (5) year options to renew and extend its lease for all of the Rental Term as provided herein premises upon six (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (126) months prior to the expiration written notice. The beginning rental rate for each renewal term shall be ninety five percent (95%) of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the fair market rate for rent chargeable the Premises and then it will increase by two and one half percent (2.5%) annually for the Leased remainder of each renewal term. For purposes of this Lease, the fair market rate shall mean the amount of Base Rent determined by Landlord in its commercially reasonable discretion as the fair market rate for the Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, on retail use in a building of similar size, expense stopconfiguration, tenant allowance, existing tenant finishes, parking availabilityquality, and location location. If Tenant objects to Landlord’s determination of the fair market rate for the Premises, and proximity Landlord and Tenant are unable to services. Within thirty reach an agreement within ten (3010) days after Landlord provides Tenant with written notice of Option Noticeits determination of fair market rate, Tenant, at its sole cost and expense, shall appoint a qualified MAI appraiser (“Tenant’s Appraisal”) for the purpose of determining the fair market rate. Tenant shall notify Landlord of submit Tenant’s option Appraisal to Landlord, together with a written summary of Fair Market Rate for the applicable renewal methods used and data collected to make such determination within twenty (20) days after Tenant provides Landlord with Tenant’s written objection to Landlord’s determination of fair market rate. If Tenant does not make such objection and appoint such appraiser within twenty (20) days after receipt of written notice of Landlord’s determination, or deliver Tenant’s Appraisal to Landlord within such twenty (20) day period, then Landlord’s determination shall be deemed conclusive. If Landlord disagrees with objects to Tenant’s opinion Appraisal, Landlord, at Landlord’s sole cost and expense, shall appoint a qualified MAI appraiser (“Landlord’s Appraisal”) for the purpose of determining the fair market rate. Landlord shall submit Landlord’s Appraisal to Tenant, together with a written summary of the Fair Market Rate, methods used and data collected within twenty (20) days after Landlord shall notify provides Tenant of with Landlord’s opinion written objection to Tenant’s determination of Fair Market Rate the fair market rate. If Landlord does not make such objection and appoint such appraiser within fifteen twenty (1520) days after receipt of Tenant’s opinion Appraisal, then Tenant’s Appraisal shall be deemed conclusive. If Landlord’s Appraisal and Tenant’s Appraisal differ by (x) less than ten percent (10%), the average of Fair Market Rate the two appraised amounts shall be the fair market rate for the Premises, or, if (y) ten percent (10%) or more. Landlord and Tenant shall promptly instruct their appraisers to jointly appoint a third MAI appraiser to determine the fair market rate for the Premises (“Landlord’s Value NoticeThird Appraisal”). If the parties are unable to resolve their differences within thirty Landlord and Tenant shall each pay one-half (301/2) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day expenses of the then-current Rental TermThird Appraisal. Alternatively, Tenant The appraisal among the three (3) that is farthest from the average of all the appraisals shall be disregarded and the average of the other two shall be the fair market rate for the Premises and binding upon Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processand Tenant.
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OPTION TO RENEW. Provided that the Tenant is not, then in possession of the premises and has not been (more than two (2) times), in default under any of the terms and conditions contained hereinof its Lease, the Landlord grants to the Tenant shall have two (2) additional consecutive five (5) year options to renew this Lease, upon all of the same terms and extend conditions except as to base rental, the Rental Term as provided herein (“Option”)first option commencing on the first day of May 2010 and terminating on the 30th day of April, 2015 and the second option commencing on the first day of May 2015 and terminating on the 30th day of April 2020. The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during base rental for the first year of each extension periods the First Renewal Term shall be the lesser greater of: (ia) 95% of the fair market rental value of the Premises as of May 1, 2009 for comparable buildings in the area in which the Building is located, leased on terms comparable to this lease as of May 1, 2009 or (b) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then base rental in effect for the Leased Premises during on the last month of the initial Rental Term (increasing each year thereafter original Lease Term. Such fair market rental value shall be determined by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, written agreement between Landlord and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify and Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences agree within thirty (30) 30 days thereafterafter Tenant's exercise of the option, Landlord or Tenantand Tenant shall each appoint a certified commercial real estate appraiser with a minimum of ten (10) years experience. The two appraisers shall jointly agree on the fair market rental value for the Premises within 30 days. If they are unable to agree, at they shall jointly select a third appraiser who meets the qualifications described above. A decision of a majority of the appraisers shall be binding on the parties. Each party shall bear the cost of its sole optionown appraiser and they shall share the cost of the third appraiser, may terminate this Lease, effective if necessary. The base rental for the first year of the second option term shall be 100% of the fair market rental value of the Premises as of May 1, 2014 but in no event less than the base rental paid for the last day year of the then-current first option term and shall be determined in the same manner as set forth herein above. The base rental for the 12th through 15th years and 17th through 20th years shall be determined by cost of living increases as set forth in paragraph 46, Rental Schedule Renewal Term. AlternativelySaid right shall be exercised if at all by the Tenant delivering to the Landlord in writing its exercise of said right on or before May 1, Tenant 2009 and Landlord may mutually May 1, 2014, for the first and second renewal terms, respectively. Failure to exercise the right in writing in the above manner prior to May 1, 2009, and May 1, 2014 shall cause the right to terminate without further act by either party. The parties covenant and agree to submit that time shall be of the determination essence in the exercise of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthis right.
Appears in 1 contract
Samples: Lease Agreement (Priceline Com Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions Lease from the time of exercising the right contained hereinherein to the commencement of any renewal thereof, Tenant shall have two the option to renew the Lease (2“Renewal Option”) for one (1) additional consecutive five sixty (560) year options month term (“Renewal Term II”) commencing upon the expiration of the then current Renewal Term. The Base Rent rate for Renewal Term II shall be 95% of the then Fair Market Terms (as hereinafter defined) at the time the Renewal Option is exercised. Tenant’s election to renew and extend the Rental Term as provided herein (“Option”). The Option Lease shall only be exercised by Tenant delivering written notice thereof made in writing to Landlord no earlier not more than the date which is twelve nine (129) months or less than six (6) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesRenewal Term. Within thirty fifteen (3015) days of Option Notice, Tenant shall notify Landlord of after receipt Tenant’s option written notice of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rateits intent to exercise its Renewal Option, Landlord shall notify provide Tenant with its good faith determination of Landlord’s opinion of the then Fair Market Rate within Terms. Within fifteen (15) days after receipt of TenantLandlord’s opinion notice of such determination, Tenant shall provide Landlord with written notice of its acceptance or rejection of Landlord determination of the then Fair Market Rate (“Landlord’s Value Notice”)Terms. If the parties Landlord and Tenant are unable to resolve their differences agree on the Fair Market Terms within thirty (30) days thereafterafter negotiations commence, Landlord or Tenantthen each party shall appoint a licensed Texas real estate broker to determine the Fair Market Terms. If such two (2) brokers are unable to agree on the Fair Market Terms (if their stated values are within five percent (5%) of each other, at its sole optionthe values will be average and such average will be the Fair Market Terms), may terminate this Lease, effective as if the difference of the last day two stated rates is greater than 5%, then they will jointly appoint a third (3rd) broker. The value determined by the third (3rd) broker will be binding on each party, unless it is higher than the higher of the then-current Rental Termfirst two (2) brokers or lower than the lower of the first two (2) brokers, in either case the average of the opinions of the two (2) brokers rates which differ by the least amount will prevail. Alternatively, Tenant and Landlord may mutually agree to submit shall pay their respective brokers and Tenant and Landlord will share the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthird broker’s cost.
Appears in 1 contract
Samples: Lease Agreement (Georesources Inc)
OPTION TO RENEW. Provided a. So long as Tenant is not, and has shall not been (more than two (2) times), be in default of a monetary obligation or a material non-monetary obligation under any of this Lease beyond the terms and conditions contained hereinapplicable grace periods, Tenant shall have two (2) additional consecutive five (5) year options the option to renew this Lease for a term of Ten (10) years ("Option Period"), with said extended term commencing on the day after the last day of the Initial Term and terminating Ten (10) years thereafter upon the same terms and conditions as contained in this Lease except as otherwise provided.
b. The option is exercisable by Tenant, if at all, only in strict compliance of the aforesaid conditions and by giving Landlord written notice of its election to extend the Rental Initial Term as provided herein not later than One Hundred Eighty (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12180) months days prior to the expiration termination date of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal periodInitial Term. If Landlord disagrees with Tenant’s opinion of the Fair Market Ratedoes not receive such notice within said time, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen such fact. Tenant shall have ten (1510) days after from receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If said notice from Landlord to then exercise its option by written notice to Landlord received within
c. The fixed annual rental during the parties are unable to resolve their differences within first thirty (30) days thereaftermonths of the Option Period shall be equal to the fixed annual rental during the last thirty months of the Initial Term increased by a fraction, Landlord the numerator of which is the Revised Consumer Price Index for Urban and Clerical Workers-All Items, N.Y.C., N.Y. - Northeastern New Jersey, ("CPI"), (BASE - 1982-84 = 100) (or Tenantany successor or similar index, at its sole optionif subsequently discontinued), may terminate this Leasefor the last day of the Initial Term, effective as and the denominator is the CPI for the calendar month of the last day of the then-current Rental ninetieth month of the Initial Term. AlternativelyHowever, in no event shall said percentage increase in the fixed annual rental for this time period exceed eight (8%) percent per annum nor be less than Four (4%) Percent per annum. Until the CPI calculation can be made, Tenant shall pay a fixed annual rental equal to the fixed annual rental for the last year of the Initial Term, with any deficiency paid in the month following Landlord's notice setting forth the fixed annual rental calculated in accordance with this paragraph.
d. Tenant covenants and agrees to pay Landlord may mutually agree during the second thirty (30) months of the Option Period a fixed annual rental equal to submit the determination fixed annual rental for the first thirty (30) months of Fair Market Rate the Option Period increased by the percentage increase in the CPI for the period from the first day of the first thirty (30) months of the Option Period to the last day of the first thirty (30) months of the Option Period. However, in no event shall said percentage increase in the fixed annual rental for this time period exceed eight (8%) Percent per annum nor be less than Four (4%) Percent per annum. Until the CPI calculation can be made, the same rent
e. Tenant convenants and agrees to pay Landlord during the third thirty (30) months of the Option Period a “Market Assessment Process,” as provided fixed annual rental equal to the fixed annual rental for the second thirty (30) months of the Option Period increased by the percentage increase in Exhibit “F” – Market Assessment Processthe CPI for the period from the first day of the second thirty (30) months of the Option Period to the last day of the second thirty (30) months of the Option Period. However, in no event shall said percentage increase in the fixed annual rental for this time period exceed eight (8%) Percent per annum nor be less than Four (4%) Percent per annum. Until the CPI calculation can be made, the same rent percentage paid shall be paid with any deficiency paid in the month following Landlord's notice setting forth the fixed annual rental calculated in accordance with this paragraph.
f. Tenant covenants and agrees to pay Landlord during the fourth thirty (30) months of the Option Period a fixed annual rental equal to the fixed annual rental for the third thirty (30) months of the Option Period increased by the percentage increase in the CPI for the period from the first day of the third thirty (30) months of the Option Period to the last day of the third thirty (30) months of the Option Period. However, in no event shall said percentage increase in the fixed annual rental for this time period exceed eight (8%) Percent per annum nor be less than Four (4%) Percent per annum. Until the CPI calculation can be made, the same rent percentage paid shall be paid with any deficiency paid in the month following Landlord's notice setting forth the fixed annual rental calculated in accordance with this paragraph.
Appears in 1 contract
Samples: Lease (Viasource Communications Inc)
OPTION TO RENEW. Provided Tenant shall have the right to renew the term of this Lease for one (1) period of one (1) year (the “Renewal Term”) subject to the following terms and conditions:
A. Tenant shall not be entitled to extend the term hereof if on the date provided for the exercise of its rights hereunder, or on the date of commencement of the Renewal Term, Tenant is notin default of the performance of any of the terms, covenants and conditions herein contained for which notice of default has been given by Landlord to Tenant in the manner provided in this Lease, which default has not been (more than two (2) times), or is not being remedied in default under any of the terms and conditions contained herein, time provided in this Lease;
B. Tenant shall have two (2) additional consecutive five (5) year options exercise its right to extend the term of this Lease, if at all, by notifying Landlord in writing of its election to exercise its right to renew and extend the Rental Term as provided herein term hereof (a “OptionRenewal Notice”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier ) not later than the date which is twelve six (126) months prior to the expiration of the Rental term;
C. The Renewal Term shall be upon the same terms, covenants and conditions as contained in this Lease; provided, however, that the Gross Rent for the Renewal Term shall be determined by mutual agreement between Landlord and Tenant based upon the then prevailing market rental rate per square foot charged by Landlord for comparable warehouse space in buildings of like quality in the same rental market as the building as of the date the Renewal Term is to commence, but in no later event shall the Gross Rent for the Renewal Term be lower than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Gross Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month year of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means term of the market rate for rent chargeable Lease;
D. In the event Landlord and Tenant are unable to agree upon the Gross Rent for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate Renewal Term within fifteen (15) days after receipt delivery of Tenant’s opinion the Renewal Notice, the option to renew shall be deemed null and void and the Lease shall expire in accordance with its term; and
E. The option to renew shall be personal to Tenant and shall be null and void and of Fair Market Rate (“Landlord’s Value Notice”). If no further force or effect in the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate event Tenant assigns this Lease. [Signatures appear on following page] EXECUTED BY LANDLORD, effective as of the last this 29th day of the thenAugust, 2006. Attest/Witness AMB PARTNERS II LOCAL, L.P., a Delaware limited partnership Title: By: AMB PROPERTY II, L.P., a Delaware limited partnership Its: General Partner By: TEXAS AMB I, LLC, a Delaware limited liability company Its: General Partner By: AMB PROPERTY HOLDING CORPORATION, a Maryland corporation Its: Sole Member By: Xxxxxxxxxxx X. Xxxxx, Vice President ADDRESS: AMB Property Corporation Attn: Regional Manager-current Rental Term. AlternativelyChicago One X’Xxxx Centre 0000 Xxxxx Xxxxx Xxxx, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to Xxxxx 0000 Xxxxxxxx, Xxxxxxxx 00000 With a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.copy to: AMB Property Corporation
Appears in 1 contract
Samples: Lease Agreement
OPTION TO RENEW. Provided that Tenant shall not be in default of any terms, provisions, conditions or covenants herein at the time of the exercise of the option set forth in this Article XXIV, and at the time said option shall take effect, and provided further that Tenant is notsubstantially physically occupying the Leased Premises as so to enable Tenant to carry out its business at the time of the exercise of the option set forth in this Article XXIV, and has not been (more than two (2) times), in default under any of at the terms and conditions contained hereintime said option takes effect, Tenant shall have two (2) the right to extend the term of this Lease for an additional consecutive period of five (5) year options years commencing on the date following the termination of the initial Term. Said option to renew and extend the Rental Term shall be on the same terms, conditions, provisions and covenants as provided herein are set forth herein, with the following exceptions:
(“Option”)a) The Minimum Annual Rent during the option period shall be at Fair Market Rent. The Option term "Fair Market Rent" shall only be exercised mean the Minimum Annual Rent, (real estate taxes and operating expenses and other charges known as Additional Rent are excluded) per square foot of the Premises as of the date the option period commences (Adjusted Minimum Annual Rent), but in no event less than the Minimum Annual Rent payable by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months immediately prior to the expiration of "Adjusted Minimum Annual Rent." More specifically, it is defined as the Rental Term Minimum Annual Rent then being charged to tenants under any new leases being made in the building or in comparable office buildings located in the Goshen and Orange County office market, "the Area." In addition, in determining the Fair Market Rent, no later than the date which is nine (9) months prior consideration shall be given to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser offollowing facts: (i1) that no vacancy or reletting expenses will be incurred by Landlord (including without limitation, advertising or promotional expenses; (2) that Landlord shall not perform work at its expense for the then current Fair Market Rate Tenant or pay Tenant any special work allowance; (as defined3) for comparable space within that Landlord shall not grant any rent concession to Tenant; and (4) that Tenant will not incur the Projectcost and expense of (a) having to locate other premises in which to move, (b) designing and constructing improvements to same, (c) relocating to said new premises, and (iid) the Base Monthly Rent then in effect for the Leased Premises having its operations disrupted during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processrelocation.
Appears in 1 contract
OPTION TO RENEW. Provided Subject to the provisions set forth below, the Lease Term may be renewed, at the option of Tenant is not, and has not been (more than two (2) timesthe “Renewal Option”), in default under any of the terms and conditions contained herein, Tenant shall have two for one (21) additional consecutive five period of 60 months (5) year options to renew and extend the Rental Term as provided herein (“OptionRenewal Term”). The Option shall only Renewal Term will be exercised by Tenant delivering written notice thereof to Landlord no earlier than upon the date which is twelve (12) months prior to the expiration of the Rental Term same terms, covenants and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: conditions contained in this Lease, except (i) the then current Fair Market Rate (as defined) for comparable space within rent abatement rights set forth in Paragraph 1.1 and leasehold improvement allowances granted under this Lease will not apply to the Project, and Renewal Term; (ii) Paragraph 37 (Right of First Offer) will not apply during the Renewal Term; (iii) the Work Letter attached hereto will not apply to the Renewal Term; and (iv) the Base Monthly Rent then Rental due for such Renewal Term will be as set forth in effect this Paragraph. Any reference in the Lease to the “Lease Term” will be deemed to include the Renewal Term and apply thereto, unless it is expressly provided otherwise. Tenant will have no renewal option beyond the aforesaid 60-month period.
(a) The Base Rental during the Renewal Term for the Leased Premises will be at a rate equal to the then Fair Market Rent (as defined in Exhibit J-1), and for a term equal or comparable to the Renewal Term. Tenant’s obligation to pay Tenant’s Proportionate Share of Excess Operating Expenses will continue during the Renewal Term; provided, however, during the Renewal Term, Operating Expenses will not include the amortization of any capital expenditures incurred in the initial Lease Term.
(b) If Tenant exercises the Renewal Option, Landlord will grant to Tenant a leasehold improvement allowance equal to the Fair Market Allowance (as defined in Exhibit J-1), which Tenant may apply toward Tenant’s leasehold improvements (upon which Landlord and Tenant must mutually agree) to the Premises. All costs of such leasehold improvements in excess of such allowance will be borne by Tenant. Such leasehold improvements will be performed by Tenant, and such allowance will be disbursed by Landlord, subject and pursuant to a work letter under which Tenant performs the work using an allowance, which work letter will be prepared by Landlord and substantially the same as the Work Letter attached hereto as Exhibit D. Except as otherwise expressly set forth in this Paragraph, Tenant will be deemed to have accepted the renewed Premises in “as-is” condition as of the commencement of the Renewal Term (except that Landlord’s ongoing repair and maintenance obligations as expressly set forth in this Lease will continue during the Renewal Term), and except as otherwise expressly set forth in this Paragraph, Landlord will have no additional obligation to improve, renovate or remodel the Premises or any portion of the Building or provide any allowance therefor as a result of Tenant’s exercise of its option to renew. Landlord’s obligation to replace the roof as set forth in the last month sentence of Paragraph 9.3 will not apply to the Renewal Term, and Landlord’s Work (as defined in Paragraph 7.2) will not apply to the Renewal Term. If Tenant’s net worth at the time Tenant exercises its option to renew is less than 90% of Tenant’s net worth as of December 31, 2011 (as set forth on Tenant’s 10-Q for the quarterly period ended 12-31-2011), Landlord may reasonably require a commercially reasonable security deposit or letter of credit (or a commercially reasonable increase in any existing security deposit or letter of credit under this Lease) before disbursing any such allowance; if Tenant’s net worth at the time Tenant exercises its option to renew is at least 90% of Tenant’s net worth as of December 31, 2011 (as set forth on Tenant’s 10-Q for the quarterly period ended 12-31-2011), and if the last month’s Base Rental for the Renewal Term (as determined pursuant to this Paragraph 35) exceeds the last month’s Base Rental for the initial Lease Term, then the required security deposit or letter of credit under this Lease will be increased to an amount equal to the last month’s Base Rental for the Renewal Term, and Tenant will provide Landlord with such increase as a condition to Landlord’s disbursement of such allowance. Tenant will provide Landlord with reasonable evidence of such net worth (or make the same available to Landlord on the internet) promptly after Tenant exercises such option to renew.
(c) In order to exercise such option to renew, Tenant must first deliver an initial nonbinding notice to Landlord no later than 45 days before the Renewal Exercise Deadline (defined below), and no earlier than 15 months before the Expiration Date of the initial Rental Term (increasing each year thereafter by 3%Lease Term, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable in which Tenant expresses its intention to the Leased Premises exercise or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, interest in exercising such option to renew and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenantrequesting Landlord’s option determination of Fair Market Rate for the applicable renewal periodRent and Fair Market Allowance. If Within 30 days thereafter, Landlord disagrees with Tenantwill notify Tenant (“Landlord’s opinion Renewal Notice”) of Landlord’s calculation of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Rent and Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If Allowance for the parties are unable to resolve their differences within thirty (30) days thereafterPremises, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of which calculation will reflect the last market rate that would be payable per annum for a term commencing on the first day of the then-current Rental Renewal Term. Alternatively, If Tenant and Landlord may mutually agree fails to submit the determination of Fair Market Rate to a “Market Assessment Process,” give its initial nonbinding notice when due as provided in Exhibit this Paragraph, Tenant will irrevocably be deemed to have waived its option to renew. For purposes hereof, the “FRenewal Exercise Deadline” – Market Assessment Processmeans the day that is 9 months before the Expiration Date of the initial Lease Term.
Appears in 1 contract
Samples: Lease Agreement (Fusion-Io, Inc.)
OPTION TO RENEW. Provided the Tenant is not, and has not been (more than two (2) times), in default under any of pursuant to the terms and conditions contained hereinof this lease, the Tenant shall have two is hereby given the right and privilege to renew the within lease for one (21) additional consecutive five (5) year options renewal period, to commence at the end of the initial term of this lease, which renewal shall be upon the same terms and conditions as in this lease contained, except as follows:
(1) The Tenant shall pay during the five (5) year renewal term annual Base Rent based upon the fair market value per square foot applicable to the Leased Premises. The fair market value shall be determined as follows: After the Tenant has given written notice to the Landlord, as hereinafter provided, of its exercise of the within option, the Landlord shall deliver to the Tenant a written notice stating the Base Rent to be paid for the Leased Premises during the five (5)year renewal term. In the event that the Tenant objects to the Base Rent quoted by the Landlord, the issue of fair market value shall be open to negotiation between Landlord and the Tenant. In the event the parties cannot agree within thirty (30) days after the Landlord's notice of the then fair market rental value, the parties shall agree on the appointment of a real estate appraiser (the "Appraiser") having the M.A.I. designation, the cost of which shall be shared equally by the Landlord and the Tenant, which the Appraiser shall be knowledgeable in the Xxxxxx County, New Jersey market rental area, who shall make a fair market rental determination. If the parties cannot agree within thirty (30) days subsequent to the appointment of the Appraiser, then the matter shall be submitted to binding arbitration pursuant to the rules for commercial arbitration of the American Arbitration Association, at the equal administrative cost of the Landlord and the Tenant. It is expressly understood and agreed that in any event the renewal Base Rent for the five (5) year renewal term shall not be less than the annual Base Rent of ONE MILLION AND 00/100 ($1,000,000.00) DOLLARS, in the event fair market rent shall be determined to be less than said sum as such determination shall be made in the manner hereinabove provided.
(2) The right, option, and privilege of the Tenant to renew and extend this lease as hereinabove set forth is expressly conditioned upon the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve Landlord, in writing, by certified mail, return receipt requested, nine (129) months prior notice of its intention to renew, which notice shall be given to the expiration of Landlord by the Rental Term and Tenant no later than the date which is nine (9) months prior to the expiration date fixed for termination of the Rental Term original term of this lease.
(3) The obligation to pay the “Option Notice”). The Base Monthly Rent during the first year of each extension periods as hereinabove set forth shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable addition to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, obligation to pay all Additional Rent and location other charges required by the terms and proximity to services. Within thirty (30) days conditions of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processlease.
Appears in 1 contract
Samples: Lease Agreement (Adams Respiratory Therapeutics, Inc.)
OPTION TO RENEW. Provided Tenant is notnot in default in the performance of any of the material terms, covenants and has not been (more than conditions of this Lease, Tenant shall have the option to renew this Lease for two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive successive five (5) year options periods (collectively, the "Option Terms" and individually an "Option Term") commencing on the day following the end of the then applicable Term, upon all the applicable terms, covenants and conditions set forth herein, except that monthly Base Rent payable during each Option Term shall be ninety percent (90%) of the then fair market monthly rental value of the Premises as of the commencement of such Option Term, provided that in no event shall the Base Rent be adjusted as of the commencement of an Option Term to an amount less than the Base Rent in effect immediately prior to such Option Term. The fair market rental value of the Premises shall be determined by mutual consent of the Tenant and Landlord, provided, however, that if Tenant and Landlord fail to mutually agree upon the fair market rental value of the Premises, at or prior to nine months before the commencement of the Option Period, then Tenant and Landlord shall each select an M.A.I. Appraiser, and the two appraisers shall mutually select a third appraiser, each to make an independent determination of the fair market retail value of the Premises, utilizing the then current rental rates for similar properties within a five (5) mile radius of the subject property , and each to submit such determinations to Tenant and Landlord no later than six months prior to commencement of the Option Period. The fair market rental value shall be the average of the amounts submitted by each of the three (3) M.A.I. Appraisers, and such rate shall be the new base rental rate for the Option Period. Costs and expenses of the three appraisers shall be divided and paid equally as between Landlord and Tenant. Within ten (10) days after receipt of the fair market rental value, Tenant may elect to terminate its exercise of the option to extend by giving written notice to Landlord. The option to renew and extend the Rental Term as provided herein (“Option”). The Option pursuant hereto shall only be exercised by Tenant delivering conditioned upon Tenant's giving Landlord written notice thereof of its election to Landlord no earlier renew not less than the date which is twelve one (121) months year prior to the expiration of the Rental then applicable Term. Should Tenant fail to exercise the option to renew the Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (hereof as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Noticehereinabove provided, Tenant shall notify Landlord have no right thereafter to renew the Term of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease. References in this Lease to tile "Term " shall be deemed to mean the initial Term of this Lease as extended by the Option Terms, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processapplicable.
Appears in 1 contract
Samples: Assignment and Assumption of Lease (Aei Income & Growth Fund Xxi LTD Partnership)
OPTION TO RENEW. Provided Section 20.01. Tenant is nothereby granted the option to renew this Lease for two renewal periods of (5) years each upon the following terms and conditions:
(a) At the time of the exercise of the option to renew and at the time of the said renewal, the Tenant shall not be in default in accordance with the terms and provisions of this Lease, and has not been shall be in possession of the Building pursuant to this Lease.
(more than two b) Notice of the exercise of the option shall be sent to the Landlord in writing at least nine (29) times)months before the expiration of the Term of this Lease or, in default under any if applicable, the term of the first renewal period, TIME HEREBY BEING MADE OF THE ESSENCE.
(c) The first renewal term shall be for the term of five (5) years and shall commence at the expiration of the Term of this Lease, and all of the terms and conditions contained hereinof this Lease, Tenant other than the Basic Rent, but including without limitation Additional Rent, shall have two (2) additional consecutive apply during any such renewal term. The second renewal term shall be for the term of five (5) year options to renew years and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to commence at the expiration of the Rental first renewal term, and all of the terms and conditions of this Lease, other than the Basic Rent, but including without limitation Additional Rent, shall apply during any such renewal term.
(d) During the first Lease Year of the first renewal Term, Tenant shall pay Landlord Annual Basic Rent in an amount equal to the greater of (a) the amount equal to the Annual Basic Rent for the last year of the Term plus an amount equal to 3% of the Annual Basic Rent for the last year of the Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (ib) the then current Fair Market Rate (as defined) Rental for comparable space within in the Project, and (ii) Wilmington area. The Annual Basic Rent shall for each subsequent lease year of the Base Monthly renewal term shall increased by the amount equal to 3% of the Annual Basic Rent then in effect for the Leased Premises during prior lease year.
(e) During the last month first Lease Year of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Noticesecond renewal Term, Tenant shall notify pay Landlord Annual Basic Rent in an amount equal to the greater of Tenant’s option of Fair Market Rate (a) the Annual Basic Rent for the applicable last year of the first renewal period. If Landlord disagrees with Tenant’s opinion Term plus an amount equal to 3% of the Annual Basic Rent for the last year of the first renewal Term and (b) the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)Rental for comparable space in the Wilmington area. If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as The Annual Basic Rent for each lease year of the last day second renewal term shall be increased by the amount equal to 3% of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit Annual Basic Rent for the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processprior lease year.
Appears in 1 contract
Samples: Lease Agreement (Pc Connection Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, 26.1 Tenant shall have two the right to extend the term of this Lease for one (21) additional consecutive five (5) year options to renew and extend lease term (the Rental Term as provided herein (“OptionRenewal Term”). The Option shall only be exercised by , upon the following conditions:
a. Tenant delivering has not been in default at any time during the Lease Term;
b. Tenant’s financial net worth is then equal to or greater than such worth as of the Lease Commencement Date;
c. Tenant has not previously assigned the entire Lease, except to an Affiliate of Tenant;
d. Tenant has delivered to Landlord written notice thereof of its intention to Landlord no earlier exercise this option, not less than the date which is twelve (12) months prior to the expiration end of the Rental Lease Term; and
e. All lease terms for the Renewal Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) same as in the then current Lease, except that the annual Base Rent for the Renewal Terms shall be the Fair Market Rate (Rent as defined) for comparable space within of the Projectcommencement of the applicable Renewal Term, as determined in Subsection f below, and (ii) there shall be no further option to renew the Base Monthly Rent then in effect for Lease Term after the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded)second Renewal Term. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable Rent”, as used in this Lease, shall be equal to the Leased Premises or any amount that a willing, comparable premises: renttenant would pay and a willing, escalationcomparable landlord of a comparable office building in the Bridgewater, termNew Jersey market (hereinafter referred to as the “Market”) would accept, sizein an arms’ length transaction, expense stopgiving appropriate consideration to new base year, tenant allowanceimprovements, existing tenant finishes, parking availability, brokerage commission and location any other relevant terms and proximity to services. Within conditions materially affecting the Fair Market Rate.
f. The Fair Market Rate shall be determined as follows:
(i) For a period of thirty (30) days of Option Notice, Tenant shall notify Landlord after receipt of Tenant’s option notice, Landlord and Tenant shall negotiate in good faith the Fair Market Rate;
(ii) If the parties are unable to agree on the new Fair Market Rate, then Landlord and Tenant shall each select an appraiser in the person of an experienced real estate broker, each of whom must have at least ten (10) years commercial leasing experience in the New Jersey market (the “Market”), within forty (45) days after Landlord’s receipt of Tenant’s notice;
(iii) The two appraisers shall confer to see if they can agree on the Fair Market Rate for space in the applicable renewal period. If Landlord disagrees with Tenant’s opinion Market as of the time the Renewal Term is to begin; and, if they reach agreement, the rate upon which they agree shall become the new Base Rent for the first year of the Renewal Term;
(iv) If the two appraisers cannot reach agreement, then each shall designate the rate which he or she believes is the appropriate new Fair Market Rate. Unless either Landlord agrees to the rate specified by Tenant’s appraiser or vice versa, Landlord the two appraisers shall notify Tenant agree on a third appraiser, who shall have no less than the minimum experience required of Landlord’s opinion of Fair Market Rate the initial two appraisers, within fifteen (15) days after receipt both appraisers have been designated; and Table of Tenant’s opinion Contents
(v) The third appraiser shall determine which of the two appraisals for the new Fair Market Rate (“Landlord’s Value Notice”). If more accurately represents the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of new Fair Market Rate which the third appraiser believes is the appropriate new Fair Market Rate. Upon such determination, the new Fair Market Rate selected by the third appraiser shall be used.
(vi) If Landlord or Tenant fails to a “comply with the time guidelines in this Section 26.1, then the Fair Market Assessment Process,” as provided in Exhibit “F” – Rate submitted by the other shall automatically apply.
(vii) Each party shall bear the expense of its own appraiser and shall divide equally the expense of the third appraiser.
26.2 After the Appraisers establish the Fair Market Assessment ProcessRent, the parties shall immediately execute an amendment to this Lease stating the new Base Rent for the Renewal Term. The renewal options are personal to Tenant and are non-transferable.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is notnot currently in default of any provision of this Lease, and has not been Tenant is still occupying the Premises, Landlord shall grant Tenant one (more than two 1) five-year option to renew the Lease (2“Option to Renew”) times), in default under any at the conclusion of the terms and conditions contained herein, Extended Term as to the entire Premises only. Tenant shall have two (2) additional consecutive five (5) year options notify Landlord of Tenant’s intent to renew and extend the Rental Term as provided herein (“Option”). The exercise its Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and Renew no later than the date which is nine (9) months prior to the expiration of the Rental Term (Extended Term, with time being of the “Option Notice”)essence as to this notification period. The Base Monthly Rent during the first year of each extension periods renewal term shall be the lesser of: (i) equal the then current Fair Market Rate (as defined) prevailing market rate for comparable space within buildings in the Projectmarket in which the Building is located. Notwithstanding anything to the contrary herein, and (ii) Base Rent for the renewal term shall in no event be less than the Base Monthly Rent then in effect for payable under the Leased Premises Lease during the last month year of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesExtended Term. Within thirty (30) days of Option Notice, after Tenant shall notify notifies Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rateits intent to exercise its Option to Renew, Landlord shall determine the then prevailing market rate for comparable buildings in the market in which the Building is located and shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)the prevailing market rate. If The then prevailing market rate, as determined in accordance with this Section, multiplied by the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as rentable square feet of the last Premises, shall be the annual Base Rent for the Premises for the first year of the renewal term, payable in advance and without notice, in equal monthly installments, commencing on the first day of the then-current Rental Termrenewal term and continuing on the first day of each and every calendar month thereafter during the first year of the renewal term. AlternativelyCommencing with the first month of the second year and each successive year throughout the renewal term thereafter, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processannual Base Rent shall be increased over the annual Base Rent for the previous year by four percent (4%).
Appears in 1 contract
Samples: Lease Agreement (Fusion Telecommunications International Inc)
OPTION TO RENEW. Provided (a) Tenant is not, and has not been shall have one option to renew this Lease (more than two (2a "Renewal Option") times), in default under any of on the same terms and conditions contained hereinand in the manner set forth below, Tenant shall have two (2) additional consecutive for a term of five (5) year options years, provided that there has been no Event of Default (or event or condition which, with the passage of time or giving of notice, or both, would constitute an Event of Default) that has occurred and is continuing at the time of exercise of the option and that there have not been repeated recurring Events of Default (whether or not previously cured) during the Term. In the event Tenant desires to renew and extend elect the Rental Term as provided herein (“Renewal Option”). The Option , Tenant shall only be exercised by Tenant delivering give Landlord written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of its exercise of the Rental Term and no later than the date which is Renewal Option nine (9) months prior to the expiration Expiration Date of the Rental Term Term. If Tenant fails to timely notify Landlord of its exercise of the Renewal Option, then the Renewal Option shall expire.
(the “Option Notice”). The b) Base Monthly Rent during the first year renewal term shall equal the prevailing market rental rate for office space of each extension periods comparable quality, design and location in the Berkeley Heights area (which shall be include the lesser of: Route 78 corridor from and including Exit 43 to and including Exit 33) for tenants occupying an amount of space comparable to the amount then leased by Tenant, taking into consideration any concessions (ie.g., rent abatement, tenant improvement and other allowances; it being understood for purposes of clarification that Landlord shall have no obligation to provide Tenant with any tenant improvement allowance) the then current Fair Market Rate (as defined) being offered by landlords to prospective tenants for comparable space within ("Market Rent"), but in no case less than the Project, and (ii) then existing Base Rent. The parties shall negotiate in good faith to establish the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)Rent. If the parties are unable to resolve their differences agree on Market Rent within thirty (30) days thereafterafter Tenant gives Landlord its notice exercising the Renewal Option (the "Notice Date"), Landlord or Tenant, at its sole option, may terminate this Lease, effective then the Appraisal Procedure (as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided defined in Exhibit “F” – Market Assessment ProcessSection 2.01) shall be utilized.
Appears in 1 contract
Samples: Lease (Genta Incorporated /De/)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under Subject to any of the terms and conditions contained hereinexisting rights, Tenant shall have two one (21) additional consecutive ------------------------------ option to renew ("Option to Renew") this Lease for five (5) year options to renew and extend years (the Rental Term as provided herein (“Option”"Renewal Period"). The If Tenant desires to exercise its Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option NoticeRenew, Tenant shall notify give Landlord written notice ("Renewal Notice") thereof on or before January 20, 2000. During the thirty-(30) day period following Landlord's receipt of Tenant’s option of Fair the Renewal Notice, Landlord and Tenant shall use reasonable efforts to negotiate a mutually agreeable base rent ("Market Rate Base Rent") for the applicable Renewal Period. The Market Base Rent shall be negotiated in light of then current terms for reviewing tenants for comparable space, including market rents, term of renewal periodand operating expense pass throughs and the tenant improvement allowance of $5.00 per rentable square foot which Landlord will provide Tenant as part of its renewal. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within Within fifteen (15) business days after of agreement by the parties on the Market Base Rent and other terms of the renewal, Landlord shall deliver to Tenant an amendment to this Lease extending this Lease on such terms. Such amendment shall not contain any further option to renew. Tenant shall execute and deliver the amendment to Landlord within ten (10) business days following receipt of Tenant’s opinion such amendment. The foregoing option and rights are subject to there having been no Event of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate Default which has not been cured under this Lease, effective as are personal to the original Tenant executing the Lease, may not be assigned, and shall be available to and exercisable by the Tenant only when the original Tenant is in actual possession and physical occupancy of the last day entire Leased Premises. Time is of the then-current Rental essence in the exercise of Tenant's Option to Renew. Should Tenant fail to exercise such option, execute and deliver any required documents, or perform any of its required obligations under this section, or should the parties be unable to agree on Market Base Rent for the Renewal Period, within the time periods set forth above, then this Option to Renew and any other rights of Tenant under the Lease in the nature of options, shall be null and void, and the Lease shall terminate at the end of the Lease Term. AlternativelyThe option to renew shall include annual rent increases based upon the CPI, Tenant and Landlord may mutually agree not to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processexceed 3% per annum compounded.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant shall have the option to renew this Lease upon the same terms and conditions set forth in this Lease (other than the monthly base rent) for an additional thirty-six (36) month period beginning January 1, 2005 by notifying Landlord of its intention to renew between September 30, 2003 and December 31, 2003, provided that Tenant is not, and has not been (more than two (2) times), in default under beyond any applicable periods of notice and cure of any of the terms terms, covenants and conditions contained hereinof the Lease at the time Tenant gives the required notice or anytime thereafter up to, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend including, the Rental Term as provided herein (“Option”)commencement date of the renewal term. The Option rental rate for the renewal period shall only be exercised by Tenant delivering written notice thereof to Landlord 95% of the Market Rate, but in no earlier event less than the date which is twelve (12) months rental rate in effect immediately prior to the expiration commencement date of the Rental Term renewal term. Market Rate shall be defined as rental rates for suburban Atlanta Class A, high-rise office buildings of similar type and no later than the date which is nine (9) months prior quality to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the ProjectGalleria prevalent at December 31, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period2003. If Landlord disagrees with Tenant’s opinion and Tenant are unable to agree on the Market Rate on or before March 31, 2004, then the determination of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate shall be submitted to arbitration in accordance with the Real Estate Valuation Arbitration Rules of the American Arbitration Association, as amended and in effect on such date (hereinafter called the “Rules”), and the determination of the “Tribunal” (as hereinafter defined in the paragraph) shall be final and binding on Landlord and Tenant. The parties hereby agree that the Real Estate Valuation Arbitration Tribunal (hereinafter called the “Tribunal”) to be appointed pursuant to the Rules shall consist of three “qualified arbitrators”, a qualified arbitrator being defined as an arbitrator certified by the American Arbitration Association with at least ten (10) years of experience in commercial real estate valuation issues with respect to Class “A” office buildings, to be appointed in the following manner: (A) each of the parties hereto shall have the right to appoint one arbitrator within fifteen (15) days after receipt of Tenant’s opinion the notice given of Fair Market Rate intent to arbitrate (the “Landlord’s Value NoticeDemand”, as defined in the Rules). If , provided if either party fails to appoint an arbitrator within such fifteen (15) day period, then the American Arbitration Association shall appoint a neutral arbitrator for such party in accordance with the Rules; (B) the two arbitrators so chosen by the respective parties shall then select the third arbitrator within fifteen (15) days of the appointment of the last party-appointed arbitrator; and (C) if the two party-appointed arbitrators are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as agree on the appointment of the last third arbitrator or fail to make said appointment within such fifteen (15) day period, then the American Arbitration Association shall appoint a neutral arbitrator in accordance with the Rules. The determination of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate by the Tribunal pursuant to a “the Rules shall be the Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessRate for purposes of this Lease and shall be binding on Landlord and Tenant. Landlord and Tenant shall share equally any costs and expenses relating to such arbitration.
Appears in 1 contract
OPTION TO RENEW. Provided that Tenant is not, and has not been (more than two (2) times), then in default under any of the terms covenants, terms, conditions, and conditions contained hereinprovisions of this Lease, then Tenant shall have two Two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein this Lease (each an “Option”). The Option shall only be exercised by ) for consecutive Ten (10) year option periods, provided that, in order to exercise this Option, Tenant delivering is required to give to Landlord written notice thereof to Landlord no earlier not less than the date which is twelve Six (126) months prior to the expiration of the Rental Term and no later before nor more than the date which is nine Nine (9) months prior to the date of expiration of the Rental Term (of this Lease or the “then expiring option period. Other than Base Rent due under the Option Notice”Term(s). The Base Monthly Rent during the first year of each extension periods , any renewal pursuant to this Option shall be on the lesser of: (i) same terms and conditions as contained in this Lease.
4.1.1 In the then current event that Tenant exercises its option to extend the term of this lease, the Landlord shall provide written notice to Tenant of the amount which, in Landlord’s reasonable opinion, represents the Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term upcoming Option Term. Tenant shall have twenty (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (3020) days from receipt of Option Notice, said written notice to respond to Landlord in writing as to whether or not Tenant shall notify Landlord of Tenantagrees with Landlord’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion determination of the Fair Market Rate, Landlord Rent. Tenant’s failure to respond within said twenty (20) day period shall notify Tenant of be deemed to be Tenant’s agreement with the Landlord’s opinion determination of Base Rent. In the event Tenant disagrees with the Landlord’s determination, the following procedure shall be used in determining Fair Market Rate Rent for the Option Term: The parties shall jointly choose an impartial real estate appraiser who shall review the market compatibles and provide a written assessment of the Fair Market Rent for the Premises. This written assessment shall determine the Base Rent for the Option Term and shall be final and binding; however, under no circumstance will the Base Rent for the Option Term be less than the Base Rent for then current Lease year.
4.1.2 In the event that Landlord and Tenant cannot agree on an impartial real estate appraiser within fifteen Sixty (1560) days after receipt of Tenant’s opinion notice of Fair Market Rate dissent, or if the mutually selected real estate appraiser cannot provide a written assessment within Forty-Five (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (3045) days thereafterof Landlord and Tenant’s joint request, either the Tenant or Landlord or Tenant, at its sole option, may terminate the Lease by providing written notice to the other, failing which, this Lease, effective as Lease shall become a month-to-month lease upon the expiration of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessLease term.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any that at the end of the terms and conditions contained hereininitial term of this Lease, Tenant an Event of Default is not then in existence under this Lease, Lessee (or any permitted assignee of sublessee) shall have two (2) additional consecutive five (5) year options the right and option to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised this Lease, by Tenant delivering written notice thereof delivered to Landlord Lessor no earlier later than the date which is twelve (12) months 485 days prior to the expiration of the Rental Term and no later than initial term, for the date which is nine additional term of five (95) months prior to the expiration of the Rental Term years (the “Option NoticeRenewal Term”). , under the same terms, conditions, and covenants contained herein, except:
A. It is the intent of Lessor and Lessee that Lessee shall have one five-year renewal option.
B. The Base Monthly Rent during the first year of rent for each extension periods Renewal term shall be the lesser of: (i) based on the then current Fair Market Rate (as defined) Prevailing net effective rental rates for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month properties of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, termequivalent quality, size, expense stoputility, tenant allowanceage and location, existing tenant finishes, parking availabilitywith the length of the lease term, and location the amount of free rent and proximity other concessions then being granted to services. Within thirty (30) days tenants of Option Noticeproperties of such equivalent quality, Tenant size, utility and location, together with the financial status of Lessee, to be taken into account, but in no event shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion rent be less than the rent paid in the immediately preceding term.
C. Upon notification from Lessee of the Fair Market Rateexercise of the renewal option in question, Landlord Lessor shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after thereafter notify Lessee in writing of the proposed rent for such Renewal Term; Lessee shall within fifteen (15) days following receipt of Tenantsame notify Lessor in writing of the acceptance or rejection of the proposed rent. In event of rejection by Lessee, the rent for the Renewal Term shall be determined as follows:
(1) Within fifteen (15) days following notification of Lessee’s opinion of Fair Market Rate (“Landlord’s Value Notice”)rejection, Lessor and Lessee shall each appoint a disinterested, licensed and qualified real estate appraiser. If these two appraisers cannot agree upon rent for the parties are unable to resolve applicable Renewal Term within thirty (30) days following their differences appointment, the two appointees shall forthwith select a third disinterested, licensed and qualified real estate appraiser, and the decision of such third appraiser shall be made within thirty (30) days thereafter. If such third appraiser is appointed, Landlord or Tenant, at its sole option, may terminate this Lease, effective as the rent for the Renewal Term in questions shall be the arithmetic mean of the last day two values which are numerically closest to one another; provided, however, that if the highest and the lowest values are numerically equidistant to the middle value, then rent for such Renewal Term shall be the middle value. Each party shall pay the fees and expenses of the thenappraiser appointed by such party and one-current Rental Termhalf (1/2) of the fees and expenses of the third appraiser. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a The term “Market Assessment Process,term” as provided used throughout this Lease shall be understood to refer to the term stated in Exhibit “F” – Market Assessment ProcessArticle 1 hereof as well as the Renewal Terms, if applicable.
Appears in 1 contract
OPTION TO RENEW. Provided Landlord hereby grants to Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have option to renew this Lease for two (2) additional consecutive terms of five (5) years each, upon the same terms and conditions as herein contained, except as modified by this section provided that Tenant not be in default under this Lease at the time the option is exercised or upon commencement of the extended term. The new base year options is reset to the first option year. The option to renew and extend shall not include broker’s commission for the Rental Term as provided herein option period, free rent/pre-occupancy, additional option period, and/or new tenant improvements. In the event Tenant desires to exercise its option to extend, Tenant shall so notify Landlord in writing at least six (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (126) months prior to the expiration of the Rental Term and no later than term. Landlord shall then, within fifteen (15) days after the date which is nine (9) months prior to the expiration receipt of said notice, notify Tenant in writing of the Rental Term (the “Option Notice”). The Base Monthly Rent new base monthly rent to apply during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesperiod. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)notice, Tenant shall give written notice to the Landlord either excepting the proposed new base monthly rent or stating its exception to such proposal and appointing a real estate broker who is experienced in leasing similar type business properties. If Within ten (10) days after receipt of such notice, Landlord shall designate a similarly qualified real estate broker and give written notice thereof to Tenant. The two brokers so appointed shall select and appoint in writing a third party similarly qualified real estate broker and then give written notice thereof to Landlord and Tenant. The broker so appointed shall promptly fix a time for the parties are unable to resolve their differences within completion of the appraisal, which shall be no later than thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as from the date of appointment of the last day broker. Broker shall notify Landlord and Tenant as to the date fixed for the completion of that appraisal. On that date, the brokers and Landlord and tenant shall meet and brokers shall each submit their appraisal of fair rental value of the thenPremises for use then being made of the Premises in writing in the usual form to Landlord and Tenant, and the fair rental value shall be determined by taking the numerical average (mean) of the two (2) appraisal figures which are the closest together, provided however, that such appraisals shall reasonably reflect the fair rental value of the Premises. Each of the parties hereto shall pay for the services of his appointee broker and one-current Rental Termhalf (1/2) of the cost of the services of the third broker. AlternativelyFair market rental value for the purpose of this Lease shall mean the then prevailing rent for premises comparable in size to the premises located in buildings comparable in size, Tenant age, quality to, in the general vicinity of the Building and Landlord may mutually agree leased on terms comparable to submit the determination terms contained in this lease. In no event shall the Base Monthly Rent for the option period be less that the Base Monthly Rent for the previous term of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthis Lease.
Appears in 1 contract
Samples: Lease Agreement (Emulex Corp /De/)
OPTION TO RENEW. Provided Tenant If Lessee is not, and has not been (more than two (2) times), in default under any of hereunder, it shall have the following options to renew this lease on the same terms and conditions contained hereinexcept as hereinafter provided, Tenant to-wit.
a. At the end of the initial [Confidential treatment has been requested] term this lease will be automatically renewed for an additional term of [Confidential treatment has been requested] at the rate of [Confidential treatment has been requested] per month unless the Lessee, or its assigns, shall have two (2) give notice in writing to the Lessor at least sixty days prior to the end of the initial term that said lease is not to be so renewed.
b. Provided this lease is renewed at the end of the primary [Confidential treatment has been requested] term and provided Lessee is not in default hereundxx xx the end of the first renewal as provided here in above this lease will automatically be renewed for an additional consecutive five (5) year [Confidential treatment has been requested] period at the rate of [Confidential treatment has been requested] per month unless the Lessee or its assigns, shall give a written notice to the Lessor at least 60 days prior to the end of the first renewed term that said lease is not to be so renewed.
c. Provided this lease is renewed at the end of the primary term of [Confidential treatment has been requested], the first renewal of [Confidential treatment has been requested] and the second renewal of [Confidential treatment has been requested] as provided above, said lease shall be automatically renewed for an additional [Confidential treatment has been requested] period at [Confidential treatment has been requested] per month, unless the Lessee, or its assigns, shall give a written notice to the Lessor at least sixty days prior to the end of the third renewed term that said lease is not to be so renewed. No renewal will be allowed after the third renewal term, of [Confidential treatment has been requested] years from this date. Termination of this lease or failure to exercise any option to renew this lease will terminate all un-exercised options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processlease.
Appears in 1 contract
Samples: Assignment of Lease (Bowlin Outdoor Advertising & Travel Centers Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, 41.1 Tenant shall have two the right to renew its lease for the Demised Premises for one (21) additional consecutive five ten (510) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised period by Tenant delivering providing Landlord with written notice thereof to Landlord no earlier not less than the date which is twelve (12) calendar months prior to the expiration Termination Date, provided and on the condition that the Tenant delivers the written consent of the Rental Term and no later than the date which is nine (9) months prior Guarantor to the expiration extension of the Rental Term (of the “Lease with the notice of Tenant’s exercise of the Option Notice”)to Renew. TIME FOR NOTICE OF EXERCISE OF TENANT’S OPTION IS HEREBY DECLARED TO BE OF THE ESSENCE, and a failure to provide timely notice shall operate as an irrevocable waiver of all rights under this Section 41.1.
41.2 The Base Monthly Rent during initial base rent for the first year of each extension periods renewal option period shall be the lesser greater of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and Fixed Rent set forth on Schedule B-1 annexed hereto or made a part hereof; or (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month ninety-five percent (95%) of the initial then-prevailing Fair Market Rental Term Rate (increasing each year thereafter “FMRR”), and such amount shall increase by 3%% each year. The FMRR shall take into account all relevant factors, compoundedincluding without limitation, the financial strength of the Tenant, and comparable leases (on the basis of factors such as, but not limited to, size and location of space and the term of the lease). “Fair , if any, recently executed for space in other buildings in the Pertinent Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable which are comparable to the Leased Demised Premises or any comparable premises: rentin reputation, escalationquality, termage, size, expense stop, tenant allowance, existing tenant finishes, parking availabilitylocation and quality of services provided, and the fact that landlord will not be required to provide any allowances or free rent or to pay a brokerage commission. For the purposed hereof, “Pertinent Market” shall mean within ten (10) miles of the location of the Demised Premises. If Landlord and proximity to services. Within Tenant do not agree on the FMRR within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for notice that it has exercised its option, the applicable renewal period. If Landlord disagrees FMRR shall be determined by arbitration before a single arbitrator who shall be a real estate broker who is a licensed appraiser in New Jersey with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within at least fifteen (15) years of relevant prior experience and who is actively involved in commercial real estate transactions within the Pertinent Market. The arbitrator shall be selected by mutual agreement of the parties within twenty (20) days after receipt the expiration of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If such 30-day negotiation period, or, if the parties are unable to resolve their differences cannot agree on the selection of an arbitrator, then the arbitrator shall be assigned by the Assignment Judge of the Superior Court of New Jersey in Bergen County. The arbitration shall be conducted in accordance with the Commercial Arbitration, expedited procedures then utilized and in effect with the American Arbitration Association (AAA), although it shall not be conducted before the AAA. The Arbitrator shall render a written decision within thirty not more than forty-five (3045) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processafter submission.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, not in default hereunder and has not been (more than two (2) times), in default under any performed all of the terms its covenants and conditions contained hereinobligations hereunder, Tenant shall have two the option to extend the term of this Lease (2hereinafter the "Option") additional consecutive for one (1) period of five (5) year options to renew years ("Renewal Term") upon the same terms and extend conditions, except for Base Rent, and upon the Rental Term as provided herein (“Option”). The Option following further terms and conditions:
A. Tenant shall only be exercised by Tenant delivering give written notice thereof to Landlord no earlier than the date which is twelve Landlord, six (126) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Projectlease term, and (ii) the Base Monthly Rent then in effect of its request for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors annual Base Rent applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesparticular extension period then provided by the Option. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion 's Notice, Landlord shall advise Tenant in writing ("Landlord's Rent Determination Notice") of Fair Landlord's determination of Market Rate (“Landlord’s Value Notice”)Base Rent. If Landlord and Tenant agree on Market Base Rent, then they shall promptly execute an amendment to this Lease stating and incorporating such agreed-upon Market Base Rent as the parties are unable to resolve their differences within Base Rent for the applicable space. If Tenant disagrees with Landlord's determination, Landlord and Tenant shall have a period of thirty (30) days thereafterafter Tenant's receipt of Landlord's Rent Determination Notice (the "Negotiation Period") in which to further negotiate Market Base Rent. If Landlord and Tenant are unable to agree upon Market Base Rent for the Premises within the Negotiation Period, Landlord or TenantMarket Base Rent shall be determined by three (3) appraisers, at its sole option, may terminate this Lease, effective as each of whom must have experience in appraising rentals in large office buildings and knowledge of the last day of rental real estate market in the thensouth suburban Minneapolis-current Rental Term. AlternativelySt. Paul xxxropolitan market area and no direct or indirect financial or business interest in or in common with Landlord, Tenant or any affiliate of either of them. Landlord and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.Tenant shall each designate one (1) independent
Appears in 1 contract
OPTION TO RENEW. Provided a. Subject to the provisions of Section 26 of the Lease, and provided that Tenant is notnot in default beyond any applicable cure period at the time of Tenant's exercise of the Option or, and has provided Tenant is not been (more than two (2) times), in default under any Section 13.1(a) of the terms and conditions contained hereinLease beyond any applicable cure period at the commencement of the Option term, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”)this Lease. The Option Tenant shall only be exercised by Tenant delivering written notice thereof provide to Landlord no earlier than the on a date which is twelve (12) months prior to the expiration date that each Option period would commence (if exercised) by at least two hundred seventy (270) days and not more than three hundred sixty (360) days, a written notice of the Rental Term and no later than the date which is nine (9) months prior to the expiration exercise of the Rental Term (Option to extend the “Option Notice”)Lease for the additional option term, time being of the essence. The Base Monthly Rent during the first year of each extension periods Such notice shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then given in effect for the Leased Premises during the last month accordance with Section 40 of the initial Rental Term (increasing each year thereafter by 3%Lease. If notification of the exercise of either Option is not so given and received, compounded)all options granted hereunder shall automatically expire. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors Base Rent applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity for each Option Term shall be equal to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market RateRental, as determined in accordance with subparagraph (c) below. All other terms and conditions of the Lease shall remain the same.
b. If the Tenant exercises the Option, the Landlord shall notify Tenant of Landlord’s opinion of determine the Fair Market Rate Rental by using its good faith judgment. Landlord shall provide Tenant with written notice of such amount within fifteen (15) days after Tenant exercises its Option. Tenant shall have fifteen (15) days ("Tenant's Review Period") after receipt of Tenant’s opinion Landlord's notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rate Rental, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (“Landlord’s Value Notice”)15) days following Tenant's Review Period ("Outside Agreement Date") then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of New Jersey and who specializes in the field of commercial office space leasing in the Saddle River, New Jersey market, has at least ten (10) years of experience and is recognized within the field as being reputable and ethical. If one party does not timely appoint a broker, then the broker appointed by the other party shall promptly appoint a broker for such party. Such two individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the two individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the qualifications described above. If the parties two brokers are unable to resolve their differences agree upon a third broker, the third broker shall be appointed by the President of the Bergen County Board of Realtors. In the event the Add-4 Bergen County Board of Realtors is no longer in existence, the third broker shall be appointed by the President of its successor organization. If no successor organization is in existence, the third broker shall be appointed by the Chief Judge of the Circuit Court of Bergen County, New Jersey. The third individual shall within thirty ten (3010) days thereafter, Landlord after his or Tenant, at its sole option, may terminate this Lease, effective as her appointment make a determination of such Fair Market Rental. The third individual shall determine which of the last day determinations of the then-current Rental Term. Alternatively, Tenant first two individuals is closest to his own and Landlord may mutually agree to submit the determination that is closest shall be final and binding upon the parties, and such determination may be enforced in any court of Fair Market Rate competent jurisdiction. Landlord and Tenant shall each bear the cost of its broker and shall share equally the cost of the third broker. Upon determination of the base rent payable pursuant to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthis Section, the parties shall promptly execute an amendment to this Lease stating the rent so determined.
Appears in 1 contract
Samples: Standard Office Lease (Pdi Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options the option to renew ("Renewal Option") the Term for three (3) successive periods ("Renewal Term(s)") of thirty-six (36) months each, subject to the following covenants and extend the Rental Term as provided herein (“Option”). The Option conditions: Tenant shall only be exercised by Tenant delivering give Landlord written notice thereof ("Renewal Notice") electing to Landlord no earlier exercise the Renewal Option not later than the date which is twelve six (12) 61 months prior to the expiration of the Rental Term and no later than or the then current Renewal Term, as the case may be. Tenant shall not be in default under this Lease when the Renewal Notice is given nor when the Renewal Term is scheduled to commence. Upon giving a Renewal Notice, the Term of this Lease shall be deemed to be extended as of the date which is nine of such Renewal Notice for a period of thirty-six (936) months prior to months, and the expiration Expiration Date shall be extended accordingly. Except as otherwise provided below, the rights and obligations of the Rental both Landlord and Tenant under this Lease during each Renewal Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: same as applicable during the original Term, including the continued Two and 50/100 percent (i2.5%) annual increase of the then current Fair Market Rate Base Rent due during each ensuing "Lease Year" (as hereinafter defined) for comparable space within ). Landlord shall not be required to make any additional improvements to the ProjectPremises as a result of Tenant exercising any Renewal Option. However, should Tenant elect to exercise the Renewal Option, and (ii) the Base Monthly Rent then provided Tenant is not in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Ratedefault hereunder, Landlord shall notify provide Tenant with a "refurbishment allowance" of up to Three and 00/100 Dollars ($3.00) per square foot of Premises net rentable floor area for the first Renewal Term, which amount shall be increased five percent (5%) for each successive Renewal Term. The refurbishment allowance shall, in each instance, be due and payable to Tenant upon Landlord’s opinion of Fair Market Rate within fifteen (15) days after 's receipt of Tenant’s opinion written evidence of Fair Market Rate (“Landlord’s Value Notice”). If costs and expenses incurred by Tenant in refurbishing the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as Premises following the commencement of the last day of the then-current Rental each Renewal Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
Samples: Office Lease Agreement (E Loan Inc)
OPTION TO RENEW. Provided Tenant shall, provided this Lease is in full force and effect and Tenant is not, not and has not been (more than two (2) times), in default under any of the terms and conditions contained hereinof this Lease beyond any applicable cure period, have one (1) option to renew this Lease for a term of eighteen (18) months, for the Premises in "as is" condition and on the same terms and conditions set forth in this Lease, except as modified by the terms, covenants and conditions set forth below:
(1) If Tenant elects to exercise such option, then Tenant shall provide Landlord with written notice no earlier than January 1, 2000, and no later than 5:00 p.m. (Pacific Standard Time) on April 1, 2000. If Tenant fails to provide such notice, Tenant shall have two no further or additional right to extend or renew the term of this Lease.
(2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to Base Rent in effect at the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration then current term of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods this Lease shall be increased to reflect the lesser of: (i) the then current Fair Market Rate (as defined) fair market rental for comparable space within in the ProjectBuilding or Project and in other similar buildings in the same rental market as of the date the renewal term is to commence, taking into account the specific provisions of this Lease which will remain constant, and the Building amenities, location, identity, quality, age, condition, term of lease, tenant improvements, services provided, and other pertinent items.
(ii3) Landlord shall advise Tenant of the new Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion term based on Landlord's determination of fair market rental value, as well as the Fair Market Rateterms and conditions for the renewal term, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within no later than fifteen (15) days after receipt of notice of Tenant’s opinion 's exercise of Fair Market Rate its option to renew.
(“Landlord’s Value Notice”)4) Landlord and Tenant shall negotiate in good faith to agree on the fair market rental value of the Premises and terms and conditions for each renewal term. If the parties Tenant and Landlord are unable to resolve their differences agree on a mutually acceptable rental rate for any renewal term within thirty (30) days thereafterafter notification by Landlord to Tenant of Landlord's determination of the new Base Rent for the applicable renewal term, but in any event no later than the date which is one hundred twenty (120) days prior to the expiration of the then current term, then on or before such date Landlord and Tenant shall each appoint a licensed real estate broker with at least ten (10) year's experience in leasing office space in the area in which the Building is located to act as arbitrators. The two (2) arbitrators so appointed shall determine the fair market rental value for the Premises for the applicable renewal term based on the above criteria and each shall submit his or her determination of such fair market rental value to Landlord and Tenant in writing, within ten (10) days after their appointment. If the two (2) arbitrators so appointed cannot agree on the fair market rental value for the applicable renewal term within such 10-day period, the two (2) arbitrators shall within five (5) days thereafter appoint a third arbitrator who shall be a licensed real estate broker with at least ten (10) year's experience in leasing office space in the area in which the Building is located. The third arbitrator so appointed shall independently determine the fair market rental value for the Premises for the renewal term within ten (10) days after appointment, by selecting from the proposals submitted by each of the first two arbitrators the one that most closely approximates the third arbitrator's determination of such fair market rental value. The third arbitrator shall have no right to adopt a compromise or middle ground or any modification of either of the proposals submitted by the first two arbitrators. The proposal chosen by the third arbitrator as most closely approximating the third arbitrator's determination of the fair market rental value shall constitute the decision and award of the arbitrators and shall be final and binding on the parties. Each party shall pay the fees and expenses of the arbitrator appointed by such party and one-half (1/2) of the fees and expenses of the third arbitrator. If either party fails to appoint an arbitrator, or if either of the first two arbitrators fails to submit his or her proposal of fair market rental value to the other party, in each case within the time periods set forth above, then the decision of the other party's arbitrator shall be considered final and binding. In the event the third arbitrator fails to present a fair market rental value within such 10-day period, then by mutual consent of the Landlord and Tenant, the time period will be extended.
(5) Notwithstanding anything to the contrary contained in this Paragraph, in no event shall the Base Rent for any renewal term be less than the Base Rent in effect at the expiration of the previous term plus expense escalations over the previous years In addition, Landlord shall have no obligation to provide or pay for any tenant improvements or brokerage commissions during any renewal term.
(6) Tenant's right to exercise any option(s) to renew under this Paragraph shall be conditioned upon Tenant occupying the entire Premises and the same not being occupied by any assignee, subtenant or licensee other than Tenant or its affiliate at its sole option, may terminate this Lease, effective the time of exercise of any option and commencement of the renewal term. Tenant's exercise of the option to renew shall constitute a representation by Tenant to Landlord that as of the last day date of exercise of the then-current Rental Term. Alternativelyoption and the commencement of the renewal term, Tenant does not intend to seek to assign this Lease in whole or in part, or sublet all or any portion of the Premises.
(7) Any exercise by Tenant of any option to renew under this Paragraph shall be irrevocable. If requested by Landlord, Tenant agrees to execute a lease amendment or, at Landlord's option, a new lease agreement on Landlord's then standard lease form for the Building, reflecting the foregoing terms and Landlord may mutually conditions, prior to the commencement of the renewal term. The option(s) to renew granted under this Paragraph is/are not transferable; the parties hereto acknowledge and agree that they intend that each option to submit renew this Lease under this Paragraph shall be "personal" to the determination of Fair Market Rate specific Tenant named in this Lease and that in no event will any assignee or sublessee have any rights to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processexercise such option(s) to renew.
Appears in 1 contract
OPTION TO RENEW. A. Provided Tenant is notnot in default in the payment of rent, additional rent or other material term of this Lease beyond any applicable cure period, Tenant shall have the option of renewing the term of this Lease (the “First Option to Renew”) for an additional term of five (5) years (the “First Renewal Term”), by sending to Landlord written notice that it is extending the term on or before the date that is six months prior to the expiration date of the initial term of this Lease. The premises during the First Renewal Term (the “First Renewal Premises”) shall be the Leased Premises except that in said written notice exercising said First Option to Renew, Tenant may limit the First Renewal Premises to any of the 56 Premises, 88 Premises, 70 Premises and the Parking Lot or any combination thereof; provided, however, that if such written notice does not contain any limitation by Tenant, the Leased Premises shall be the First Renewal Premises. If the First Renewal Premises is less than all of the Leased Premises, Landlord and Tenant shall enter into a parking easement agreement, and has not been record same in the land records for Stamford, Connecticut, which agreement shall allocate the use of parking spaces in, and the maintenance expenses of, the Parking Lot to the owner of each of the 56 Premises, the 88 Premises and the 70 Premises in proportion to the rentable square footage of each Building located thereon and taking into account parking spaces already located thereon or appurtenant thereto. Such agreement shall run with the land comprising all of the Leased Premises for the term of this Lease (more than two (2) timesas the same may be extended or otherwise modified from time to time). Upon receipt of such written notice the parties shall attempt to agree upon a fair Annual Basic Rent which shall be based upon the fair market rental of the First Renewal Premises. The “fair market rental”, as used in default this Article, shall mean the fixed base rent per rentable square foot per annum which a willing landlord under any no compulsion to rent would agree to accept from a tenant having the creditworthiness of Tenant under no compulsion to rent would agree to pay for a lease of such space for such period on all of the terms and conditions of this Lease to be applicable thereto (taking into consideration all relevant facts, including, without limitation, any construction allowance and/or free rent period and/or other concessions to which Tenant will be entitled with respect thereto, or the absence thereof if such be the case; but excluding from consideration tenant’s line of business). When determining the “fair market rental”, as used in this Article, for any space for any period by reference to comparable transactions, the base rents provided for in such comparable transactions shall be adjusted to reflect the differences between the other terms of such comparable transactions and the other terms of the deal to which the aforesaid fair market rental is to be applied, as well as other differences that are relevant, including differences in age, location, quality and size of the spaces and buildings. “Fair market rental”, as used in this Article, shall exclude from its determination the value of all changes, alterations and improvements made to the Leased Premises by, or on behalf of, Tenant. In the event the parties cannot agree on such fair market rental for the First Renewal Premises by at least one hundred forty-five (145) days before the expiration date of the initial term of this Lease, then Landlord and Tenant shall each appoint a member of the American Institute of Appraisers (an “MAIA”) who shall have at least ten (10) years experience in appraising commercial property in Fairfield County, Connecticut. Such appointments shall be made in writing by each party to the other and to the appraisers so appointed. Said appointments shall be made at least one hundred twenty-five (125) days before the expiration date of the initial term of this Lease. In the event said appraisers do not agree upon the fair market rental at least sixty (60) days before said expiration date, they shall promptly appoint a third appraiser with similar qualifications, and said three appraisers shall determine the fair market rental for the First Renewal Premises at least thirty (30) days before said expiration date. If said three appraisers are unable jointly to agree prior to said expiration date on the fair market rental for the First Renewal Premises, then the average of each of the values proposed by each appraiser shall be utilized as the fair market rental, provided that the variation between the highest and lowest value does not exceed five percent (5%). In the event of the failure of the appraisers to agree upon a third appraiser aforesaid, or in the event the variation between the highest and lowest value exceeds five percent (5%), or in the event either Landlord or Tenant shall fail to appoint an appraiser as aforesaid within the time frame set forth above, then either Landlord or Tenant shall make an application to the American Arbitration Association for the appointment of an appraiser, and such appraiser, after receiving advice from the other appraisers, shall determine the fair market rental as soon as possible after his appointment. Except for said Annual Basic Rent change, all of the other covenants and agreements contained hereinherein shall remain in force and effect on the First Renewal Premises during such First Renewal Term. The fees of the appraisers and the costs of any arbitration proceeding shall be borne equally by Landlord and Tenant. Notwithstanding the foregoing, Tenant shall have two the right to rescind its election to renew the term of this Lease, which rescission must be made prior to the expiration date of the initial term of this Lease. If Tenant shall so rescind its election to renew, the lease of the First Renewal Premises shall terminate six (26) months after said expiration date of the initial term of this Lease, during which six month period Tenant shall pay Annual Basic Rent at the new rate fixed by the process above described and shall reimburse Landlord for all reasonable costs and expenses incurred by Landlord in connection with Tenant’s exercise of the First Option to Renew.
B. Provided Tenant is not in default in the payment of rent, additional consecutive rent or other material term of this Lease beyond any applicable cure period, Tenant shall have the option of renewing the term of this Lease (the “Second Option to Renew”) for an additional term of five (5) year options to renew and extend years (the Rental Term as provided herein (“OptionSecond Renewal Term”). The Option shall only be exercised , by Tenant delivering sending to Landlord written notice thereof to Landlord no earlier than that it is extending the term on or before the date which that is twelve (12) six months prior to the expiration date of the Rental Term and no later than First Renewal Term. The premises during the date which is nine (9) months prior to the expiration of the Rental Second Renewal Term (the “Option NoticeSecond Renewal Premises”). The Base Monthly Rent during the first year of each extension periods ) shall be the lesser of: First Renewal Premises except that in said written notice exercising said Second Option to Renew, Tenant may further limit the Second Renewal Premises to any of the 56 Premises, 88 Premises, 70 Premises and the Parking Lot, or any combination thereof, as were contained in the First Renewal Premises; provided, however, if such written notice does not contain any limitation by Tenant, the Second Renewal Premises shall be the First Renewal Premises. If the Second Renewal Premises is less than all of the Leased Premises, Landlord and Tenant shall enter into a parking easement agreement (i) the then current Fair Market Rate (as defined) for comparable space within the Projectif they have not done so previously), and (ii) record same in the Base Monthly Rent then land records for Stamford, Connecticut, which agreement shall allocate the use of parking spaces in, and the maintenance expenses of, the Parking Lot to the owner of each of the 56 Premises, the 88 Premises and the 70 Premises in effect for proportion to the rentable square footage of each Building located thereon and taking into account parking spaces already located thereon or appurtenant thereto. Such agreement shall run with the land comprising all of the Leased Premises during for the last month term of this Lease (as the initial Rental Term (increasing each year thereafter by 3%, compoundedsame may be extended or otherwise modified from time to time). “Fair Market Rate” means Upon receipt of such written notice the market rate for rent chargeable for the Leased Premises parties shall attempt to agree upon a fair Annual Basic Rent, which shall be based upon the following factors applicable to fair market rental of the Leased Second Renewal Premises. In the event the parties cannot agree on such fair market rental for the Second Renewal Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty by at least one hundred forty-five (30145) days before the expiration date of Option Noticethe First Renewal Term, then Landlord and Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord each appoint a MAIA who shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen have at least ten (1510) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Processyears experience in appraising commercial property in Fairfield County,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
Samples: Lease (Gartner Inc)
OPTION TO RENEW. Provided A. If Tenant is not, and has not been (more than two (2) times), in default under any this Lease at the time of the terms and conditions contained hereinexercise of this option or at the commencement of the applicable Lease Term extension, Tenant shall have two is granted the option (2the OPTION) additional consecutive to extend the Lease Term for one (1) extension term of five (5) year options to renew and extend years commencing on the Rental next day after the expiration of the initial Lease Term as provided herein by giving Landlord all extension notice at least nine (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier 9) months, but not more than the date which is twelve (12) months months, prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration initial Lease Term. Tenant's lease of the Rental Premises during the extended Lease Term will be upon the same terms as in the Lease for the initial Lease Term, except that (the “Option Notice”). The i) Base Monthly Rent during will adjust on the first year day of each extension periods shall be the lesser of: (i) extended Lease Term to the then current Fair Market Rate (as defined) for comparable space within the Projectdefined below), and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of extended Lease Term Tenant will have no further options or rights to extend the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Lease Term.
B. Within thirty (30) days after Landlord receives Tenant's written notice of Option Noticeits exercise of the Option, Landlord shall deliver a notice to Tenant shall notify Landlord of Tenant’s option of Fair (the MARKET RATE NOTICE) specifying the Market Rate for the applicable renewal periodextended Lease Term, such to be based upon Landlord's reasonable and good-faith determination of rents being charged for comparable space in similar properties in the Freeport Xxxxx Xxxxxxxxxx Xxxx, Xxxxxxx, Xxxxx, for terms commensurate with the extended Lease Term and for tenants similarly situated. Tenant shall have fifteen (15) days (the EXAMINATION PERIOD) from its receipt of the Market Rate Notice to accept or reject Landlord's designation of the Market Rate. If Landlord disagrees with Tenant’s opinion Tenant accepts Landlord's designation of the Fair Market Rate, the MARKET RATE will be as set forth in the Market Rate Notice, and Tenant's election to exercise the Option shall be irrevocable. If Tenant fails to accept in writing Landlord's designation of the Market Rate set forth in the Market Rate Notice during the Examination Period, Tenant shall be deemed to have rejected Landlord's designation of the Market Rate. If Tenant rejects or is deemed to have rejected Landlord's designation of the Market Rate and Landlord shall notify and Tenant cannot agree in writing on the Market Rate within the earlier to occur of (i) fifteen (15) days after the date Landlord receives Tenant's written rejection of Landlord’s opinion 's designation of Fair the Market Rate set forth in the Market Rate Notice, or (ii) fifteen (15) days after the expiration of the Tenant is deemed to have rejected Landlord's designation of the Market Rate as set forth in the Market Rate Notice (in either of such instances, the NEGOTIATION PERIOD), then Tenant will be deemed to have elected to revoke its exercise of the Option, and this Lease will expire in accordance with Paragraph 1 above.
C. Tenant may not assign the Option to any assignee (except an Affiliate) or sublessee of this Lease. No sublessee and no assignee (except an Affiliate) may exercise the Option.
D. If the Lease Term is extended under this Xxxxxxxxx 00, Xxxxxxxx shall prepare, and Landlord and Tenant will execute and deliver an amendment to the Lease extending the Lease Term within fifteen (15) days after receipt the Market Rate is determined but in no event later than the date that the applicable extension term commences; provided, however, that the failure of the parties to enter into such an amendment will not affect the validity of Tenant’s opinion 's exercise of Fair Market Rate (“Landlord’s Value Notice”). If the Option or the obligations of the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of during the last day of the then-current Rental extended Lease Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.
Appears in 1 contract
OPTION TO RENEW. Provided Subject to Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering providing Landlord with prior written notice thereof to Landlord no earlier sooner than the date which is twelve (12) months prior to the expiration of the Rental Term and no nor later than the date which is nine (9) months prior to the expiration of the Rental Term and Tenant not being in Default (after expiration of all applicable cure periods) of any terms of the Lease as of the delivery of such notice and not being in Default (following written notice from Landlord) as of the end of the initial term of the Lease, Tenant shall have the option to extend the Lease for all space then under lease by Tenant in the Building, for the period designated in Section 1.1(i) (the “Option NoticeTerm(s)”). The Monthly Base Monthly Rent during the first year of for each extension periods Option Term shall be the lesser of: (i) at the then current Fair Market Rate (Rental as defined) for comparable space within determined below. As used herein, the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rental Rate” means determination as described in the market rate for rent chargeable Section 28 shall mean the monthly amount per rentable square foot, projected for the Leased Premises based upon first day of the following factors applicable to Option Term and for each anniversary of the Leased Premises or any first day of the Option Term thereafter occurring during the Option Term, that has been accepted by landlords of comparable premises: Class A office buildings located within the Territory (the “Comparison Market Area”) at arm’s length for renewal space only for improved space as a renewal Tenant, taking into account tenant improvement allowances, free rent, escalationleasing commissions, termwho is paying taxes, size, expense stop, tenant allowance, existing tenant finishes, parking availabilityinsurance and utilities, and location and proximity to servicesrental rates. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion notice of its election to extend the term of this Lease, Landlord shall provide Tenant with a statement as to Landlord’s determination of the Fair Market Rate (“Landlord’s Value Notice”)Rental Rates for the extension period. If the parties are unable Unless Tenant objects to resolve their differences such rate within thirty (30) days thereafter, after Landlord or Tenant, at its sole option, may terminate this Lease, effective as gives Tenant notice of the last day same, such Fair Market Rental Rates shall be applicable for the extension period. If Tenant gives Landlord written objection to Landlord’s determination of the then-current Fair Market Rental Term. AlternativelyRates for the Premises within such thirty (30)-day period (“FMV Notice”), then Landlord and Tenant and Landlord may mutually shall use good faith commercially reasonable efforts to agree to submit upon the determination of the Fair Market Rental Rate for the first year of the extension period and the Fair Market Rental Rates for all subsequent years during the extension period. If Landlord and Tenant are unable to agree on the determination of the Fair Market Rental Rates within fifteen (15) business days after Landlord’s receipt of the FMV Notice, the Fair Market Rental Rates shall be determined by an appraiser mutually selected by both Landlord and Tenant. In the event that Landlord and Tenant cannot mutually agree upon one appraiser within ten (10) business days thereafter, there shall be three appraisers appointed as follows: (a) each party shall appoint an appraiser and give notice of the appointment to the other party set forth below (respectively, “Landlord’s Appraiser” and “Tenant’s Appraiser”), (b) the Landlord’s Appraiser and Tenant’s Appraiser shall jointly choose a third appraiser (“Third Appraiser”) within ten (10) days after appointment of both Landlord’s Appraiser and Tenant’s Appraiser, and (iii) the two appraisals which are closest in value shall then be averaged and the average of the two appraisals shall be the Fair Market Assessment Process,” as provided Rental Rates for the Premises during the extension period, and the other appraisal shall not be utilized in Exhibit “F” – such determination. All of the appraisers selected shall be individuals with at least five (5) years commercial appraisal experience in the area in which the Premises are located, shall be members of the Appraisal Institute (M.A.I.), and in the case of the Third Appraiser, shall not have acted in any capacity for either Landlord or Tenant within five (5) years of his or her selection. Each appraiser shall deliver their determinations of the Fair Market Assessment ProcessRental Rates within ten (10) business days after selection of the Third Appraiser. The cost of the Landlord’s Appraiser shall be borne by Landlord, the cost of the Tenant’s Appraiser shall be borne by Tenant, and the cost of the Third Appraiser shall be shared equally. All other terms and conditions of the initial lease shall remain the same for the extended term of the Lease.
Appears in 1 contract
Samples: Lease Agreement (First California Financial Group, Inc.)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any As part of the terms consideration for the execution of this Lease, Landlord hereby grants to Tenant options to extend and conditions contained herein, Tenant shall have two renew this Lease for three (23) additional consecutive five (5) year options terms upon the same terms and conditions hereof provided:
(a) Tenant shall notify Landlord of its intent to renew and extend the Rental Term as provided herein exercise any such option not less than six (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord 6) months but no earlier more than the date which is twelve (12) months prior to the expiration date of the Rental Term and no later than the date which is nine Lease or any renewal thereof, and
(9b) months prior to the expiration Tenant shall pay Minimum Monthly Rent for its use of the Rental Term (the “Option Notice”). The Base Monthly Rent Premises during the first year Option Term determined by the following formulae: The Minimum Monthly Rental to be paid by Tenant during the First Extended Term of each extension periods the Lease, if exercised by Tenant, shall be the lesser of: (i) same as the Minimum Monthly Rental charged during the Term of the Lease. The Minimum Monthly Rental to be paid by Tenant during the Second Extended Term, if exercised by Tenant, shall be at the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month Value of the initial Rental Term Premises considering the best use of the Premises as a family style restaurant (increasing each year thereafter by 3%, compoundedthe 'FMV Rental"). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, Landlord and location and proximity to services. Within Tenant shall have thirty (30) days of Option Notice, from the date Landlord receives the option notice from Tenant shall notify Landlord of Tenant’s exercising the option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of Second Extended Term in which to agree to the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)FMV Rental during the Second Extended Term. If the parties are unable to resolve their differences agree on the FMV Rental for the Second Extended Term within such thirty (30) day period, then within ten (10) days after the expiration of that period, each party, at its cost and by giving notice to the other party, shall appoint an MAI real estate appraiser with at least five (5) years full-time commercial appraisal experience in the area in which the Premises is located to appraise and set the FMV Rental. If a party does not appoint an appraiser within ten (10) days after the other party has given notice of the name of its appraiser, the single appraiser appointed shall be the sole appraiser and shall set the FMV Rental. If the two (2) appraisers are appointed by the parties as stated in this paragraph, they shall meet promptly and attempt to set the FMV Rental. If they are unable to agree within thirty (30) days thereafterafter the second appraiser has been appointed, Landlord or Tenantthey shall attempt to select a third (3rd) appraiser meeting the qualifications stated in this paragraph within ten (10) days after the last day the two (2) appraisers are given to set the FMV Rental. If they are unable to agree on the third appraiser, at its sole option, may terminate either of the parties to this Lease, effective as by giving ten (10) days' notice to the other party, can apply to the then president of the last day Albuquerque Board of Realtors or to a presiding judge of the thenSecond Judicial District Court for the County of Bernalillo for the selection of a third (3rd) appraiser who meets the qualifications stated in this paragraph. Each of the parties shall bear one-current half (1/2) of the cost of appointing the third (3rd) appraiser and of paying the third (3rd) appraiser's fee. The third (3rd) appraiser, however selected, shall be a person who has not previously acted in any capacity for either party. Within thirty (30) days. after the selection of a third (3rd) appraiser, a majority of the appraisers shall set the FMV Rental. If a majority of the appraisers are unable to set the FMV Rental within the stipulated period of time, the three (3) appraisals shall be added together and their total divided by three (3); the resulting quotient shall be the FMV Rental. If, however, the low appraisal and/or the high appraisal are/is more than twenty percent (20%) lower and/or higher than the middle appraisal, as the case may be, the low appraisal and/or the high appraisal shall be disregarded. If only one (1) appraisal is disregarded, the remaining two appraisals shall be added together and their total divided by two (2); the resulting quotient shall be the FMV Rental. If both the low appraisal and high appraisal are disregarded as stated in this paragraph, the middle appraisal shall be the FMV Rental. After the FMV Rental for the Second Extended Term has been set, the appraiser shall immediately notify Landlord and Tenant. If Tenant objects to the FMV Rental that has been set, Tenant shall have the right to have this Lease expire at the end of the Second Extended Term. AlternativelyTenant's election to allow this Lease to expire after the end of the Second Extended Term must be exercised within thirty (30) days after receipt of notice from the appraisers of the FMV Rental for the Second Extended Term. If Tenant does not exercise its election within such thirty (30) day period, Tenant and Landlord may mutually agree to submit the determination term of Fair Market Rate to a “Market Assessment Process,” this Lease shall be extended as provided for in Exhibit “F” – Market Assessment Processthis paragraph. The Minimum Monthly Rental for the Third Extended Term, if exercised by Tenant, will be calculated in the same manner as the Second Extended Term, including Tenant's election to allow the Lease to expire at the end of the Second Extended Term if Tenant objects to the FMV Rental that has been set.
Appears in 1 contract
Samples: Lease (Westland Development Co Inc)
OPTION TO RENEW. Provided Tenant is nothereby granted the option to renew the Lease for one (1) renewal term (the “Renewal Term”) of three (3) Lease Years, and has not been (more than two (2) times), in default under any of subject to the terms and conditions contained herein, of this Article 14. In the event that Tenant shall have two (2) additional consecutive five (5) year options desires to renew and extend the Rental Term as provided herein (“Option”). The Option Lease it shall only be exercised by Tenant delivering give written notice thereof to Landlord no earlier than of its intention to renew the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is Lease at least nine (9) months prior to the Expiration Date, time being of the essence. Tenant’s renewal notice shall be irrevocable and must be unconditional. All of the terms and conditions of this Lease shall remain in effect during the Renewal Term, except that the Minimum Annual Rent payable during the first Lease Year of the Renewal Term, and each Lease Year thereafter, shall be an amount equal to the Market Rental (defined below) for the Demised Premises as of the first day of first such Lease Year (provided, however, that Minimum Annual Rent will not decrease). Tenant shall not have the right to exercise the option to renew with respect to less than all of the Demised Premises. Tenant shall have no option to renew the Lease beyond the expiration of the Rental Term (the “Option Notice”)Renewal Term. The Base Monthly Rent Tenant shall continue to pay Tenant’s Proportionate Share of Direct Expenses during the first year of each extension periods Renewal Term. Market Rental for the Premises shall be the lesser of: rental rate (iincluding annual and other periodic escalations) the then current Fair Market Rate (at which tenants could lease comparable flex space as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental commencement of the first day of the Renewal Term (increasing each year thereafter by 3%located in buildings that are comparable in age, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable location, quality of construction, services and amenities to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, Building. Market Rental shall be determined with respect to the first Lease Year of the Renewal Term and location and proximity to servicesshall include annual escalations for each Lease Year of the Renewal Term thereafter. Within thirty (30) days after receiving Tenant’s notice electing to renew the Lease for a Renewal Term, Landlord shall inform Tenant of Option NoticeLandlord’s determination of the Market Rental for the Demised Premises. If Tenant agrees with Landlord’s determination of the Market Rental for the Demised Premises, Tenant shall notify Landlord of within thirty (30) days after Tenant’s option receipt of Fair Landlord’s notification. If Tenant disagrees with Landlord’s determination of the Market Rate Rental for the applicable renewal periodDemised Premises, Tenant shall notify Landlord in writing within thirty (30) days after Tenant’s receipt of Landlord’s notification, setting forth Tenant’s determination of the Market Rental for the Demised Premises. If Landlord disagrees with fails to accept Tenant’s opinion determination of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate Rental within fifteen (15) days after receipt (failure to so accept being deemed a rejection of Tenant’s opinion of Fair determination) and a compromise Market Rate (“Landlord’s Value Notice”). If Rental cannot be negotiated by the parties are unable to resolve their differences within thirty (30) days of Tenant submitting its determination of Market Rental, then Landlord and Tenant shall together, within fifteen (15) days thereafter, select an independent commercial real estate broker with at least seven (7) years of experience brokering commercial office lease transactions in Delaware County, who shall be mutually satisfactory to Landlord and Tenant, and who shall, within fifteen (15) days after being selected, pick either Landlord’s determination or Tenant, ’s determination as the Market Rental for the Premises. Such selection shall be the final determination of the Market Rental and shall be binding on both parties. All costs and expenses of the broker shall be paid by the party whose determination of Market Rental was not selected by the broker. It shall be a condition of the exercise of the renewal option set forth in this Article that at its sole the time of the exercise of the option, may terminate this Lease, effective as of Tenant shall not be in default under the Lease beyond any applicable notice and cure period. In no event shall the Minimum Annual Rent during the Renewal Period be less than the Minimum Annual Rent in effect on the last day of the then-current Rental Termmonth in which the Lease term expires. Alternatively, The renewal right granted to Tenant and Landlord may mutually agree under this Article 14 is personal to submit Tenant. The renewal right shall not be exercisable or valid in the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processevent that the Demised Premises have been sublet.
Appears in 1 contract
OPTION TO RENEW. Provided Landlord hereby grants to Tenant is not, and has not been one (more than two (21) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options option to renew and extend the Rental Term as provided herein Lease, for a period of an additional three (3) years (the “OptionRenewal Term”). The Option Renewal Term shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to commence upon the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term preceding lease term (the “Option NoticeRenewal Commencement Date”)) such that there shall not be a gap in the time between the Lease Term and the Renewal Term.
1. The Base Monthly Rent during lease of the first year of each extension periods Leased Premises for the Renewal Term shall be on the lesser of: (i) same terms and conditions as set forth in the then current Fair Market Rate (as defined) for comparable space within Lease, except:
A. That the Project, and (ii) the Base Monthly Rent then in effect rental for the Leased Premises during the last Renewal Term shall be as set forth below in Paragraph 3, and
B. That the Security Deposit shall be increased to the rental amount for the final month of the initial Rental Renewal Term as determined in Paragraph 3 (increasing each year thereafter by 3%, compoundedthe “Increased Security Deposit Amount”).
2. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s exercise of its right to renew the Lease for the Renewal Term only by giving to Landlord written notice one hundred eighty (180) days prior to the Renewal Commencement Date (time is expressly of the essence to Landlord). Any attempted exercise of this Option made other than within the time period stated or in the manner stated shall be void and of no force or effect. In the event that Tenant does not or is not entitled to exercise its option Tenant shall have no further rights hereunder.
3. If Tenant shall have properly and timely exercised its right to extend the term of Fair the Lease, the term of the Lease shall be so extended for the Renewal Term on the same terms and conditions contained in the Lease; provided, however, the Base Monthly Rent for each month of the Renewal Term shall be the Then Market Rental Rate for the applicable renewal periodLeased Premises.
4. If The term “Then Monthly Market Rental Rate” shall be determined by mutual agreement between Landlord disagrees with Tenant’s opinion of and Tenant or, in the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences event such agreement cannot be made within thirty (30) days thereafterfrom the date Tenant shall have exercised this option, Landlord or Tenantand Tenant shall each appoint a real estate appraiser with at least five (5) years full-time commercial/industrial appraisal experience in Alameda County to appraise and determine the fair market monthly rental rate the Leased Premises, at its sole optionin their then existing condition for the use specified in the Lease could be leased for, may terminate this on the same terms and conditions set forth in the Lease, effective as to a qualified tenant ready, willing and able to lease the Leased Premises for a term equal to the Renewal Term. If either party does not appoint an appraiser within ten (10) days after the other party has given notice of the last day name of its appraiser, the other party can then apply to the President of the then-current Rental TermAlameda County Real Estate Board or the presiding Judge of the Superior Court of that County for the selection of a second appraiser who meets the qualifications stated above. Alternatively, Tenant The failing party shall bear the cost of appointing the second appraiser and Landlord may mutually agree of paying the second appraiser’s fee. The two appraisers shall attempt to submit establish the determination of Then Fair Market Rental Rate for the Leased Premises. If the two appraisers are unable to agree on the Then Fair Market Rental Rate for the Leased Premises within ten (10) days after the second appraiser has been selected or appointed, then the two appraisers shall attempt to select a “third appraiser meeting the qualifications stated above. If they fail to agree on a third appraiser, either party can follow the above procedure for having an appraiser appointed by the Real Estate Board or a judiciary. Each of the parties shall bear one-half (1/2) of the cost of appointing the third appraiser and of paying the third appraiser’s fee. Unless the three appraisers are able to agree on the Then Fair Market Assessment Process,” Rental Rate for the Leased Premises within ten (10) days after the selection or appointment of the third appraiser, the two appraisal amounts being calculated most closely together, after having discarded the appraisal amount which most greatly varies from the other two appraisal amounts, shall be added together then divided by two (2). The resulting rental amount shall be defined as provided in Exhibit “F” – the Then Fair Market Assessment ProcessRental Rate for the Leased Premises.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two the option to extend the Term of the Lease for one (21) additional consecutive five (5) year options to renew and extend period (the Rental Term as provided herein (“Option”"Additional Term"). The Option Such option shall only be exercised exercised, if at all, by Tenant delivering written notice thereof of Tenant's election to exercise the option delivered to Landlord no earlier than the date which is twelve two hundred seventy (12270) months days, nor later than one hundred eighty (180) days, prior to the expiration of the Term of the Lease. If Tenant fails timely to exercise or is not entitled to exercise this option to renew, then Tenant's option to renew shall automatically lapse and thereafter not be exercisable by Tenant. If Tenant is entitled to and does give notice in the manner and within the time frame set forth in this paragraph, then the Term shall be extended by the Additional Term, on all of the conditions set forth in the original Lease; provided, however, that:
(1) Monthly Rental for the Additional Term and no later than the date which is nine (9) months prior shall be equal to the expiration then "Fair Market Rental Rate" (as defined below) of the Rental Term (the “Option Notice”)Premises. The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space Landlord shall, in response to and within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion 's notice of exercise of the option to renew, give Tenant written notice of the then applicable "Fair Market Rate Rental Rate" as determined in good faith by Landlord. "Fair Market Rental Rate" means the then prevailing annual rental rate per square foot of rentable area in comparable buildings in the Anaheim, CA, industrial area, comparable in area and location to a Premises. Not later than thirty (“30) days after Landlord’s Value Notice”)'s notice to Tenant of the applicable "Fair Market Rental Rate", Tenant shall timely notify Landlord of Tenant's election to (i) have the "Fair Market Rental Rate" determined by the "appraisal" procedure described below, or (ii) accept Landlord's determination of the "Fair Market Rental Rate", or (iii) elect not to exercise Tenant's option to extend. If Tenant fails to notify Landlord within such thirty (30) day period of Tenant's election, then Tenant shall be deemed to have accepted Landlord's determination of "Fair Market Rental Rate" and to have waived its right to an appraisal. Tenant's notice under subparagraphs (i) or (ii) shall be deemed Tenant's exercise of the parties are unable option to resolve their differences extend the Term. If Tenant exercises its option to renew and timely elects to have the "Fair Market Rental Rate" determined by appraisal, then each party shall appoint an appraiser within forty (40) days after such exercise date. The two appraisers shall within a period of five additional days, agree upon and appoint an additional appraiser. The three appraisers shall, within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as after the appointment of the last day third appraiser, determine the Fair Market Rental Value of the then-current Premises in writing and submit their report to all of the parties. The Fair Market Rental TermValue shall be determined by disregarding the appraiser's valuation that diverges the greatest from each of the other two appraisers' valuations, and the arithmetic mean of the remaining two appraisers' valuations shall be the Fair Market Rental Value. AlternativelyEach party shall pay for the services of the appraiser selected by it, Tenant plus one half of the fee charged by the third appraiser, and Landlord may mutually agree one half of all other costs relating to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.Rental Value;
Appears in 1 contract
OPTION TO RENEW. Provided Tenant shall not then be in default of this Lease, Tenant shall have the option to extend the term of the Lease for one (1) additional term of ten (10) years (the “Extended Term”) upon the same terms and conditions herein contained, except that the Base Rent during the Extended Term shall be the amount which is notdetermined as follows: Base Rent for the first year of the Extended Term shall be the fair market rent for bank facilities with a drive through in the general vicinity of the Leased Premises which amount shall be agreed to by Landlord and Tenant as provided for in this Section 20.3. On the Rent Adjustment Date of the second year of the Extended Term, and has not been annually thereafter, Base Rent shall increase on the Rent Adjustment Date by the increase in the Index during the prior twelve months; provided, however, that in no event shall the monthly Base Rent be less than the amount paid during the prior twelve (12) month period, nor shall it increase by more than four percent (4%) over the amount paid during the prior twelve (12) month period. The Tenant shall exercise this option by delivering written notice to Landlord no earlier than 450 days, and no later than 365 days, prior to the expiration of the initial term of this Lease, failing which this option to renew shall automatically terminate. Upon delivery of such notice, the Landlord shall have two (2) times), weeks in default under any which to deliver a written proposal to Tenant setting forth the amount of Base Rent to be paid during the terms and conditions contained herein, Extended Term. Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration weeks from receipt of the Rental Term and no later than the date Landlord’s notice in which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) to hire at its sole cost and expense (a) a Colorado licensed real estate broker who specializes in bank leasing, or (b) an MAI appraiser to evaluate the then current Fair Market Rate (as defined) for comparable space within the ProjectLandlord’s determination of fair market rent, and (ii) if the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenantthe Landlord’s determination to deliver a written notice to Landlord setting forth its opinion of the Fair Market Ratefair market rent together with supporting documentation, failing which the Landlord’s determination of fair market rent shall be deemed to have been agreed to by the Tenant. If the Landlord does not agree with the Tenant’s determination, the Landlord shall notify Tenant have two (2) weeks in which to hire at its sole cost and expense (a) a Colorado licensed real estate broker who specializes in bank leasing, or (b) an MAI appraiser, to determine the fair market rent and deliver a copy of the same to Tenant, failing which the Tenant’s determination of fair market rent shall be deemed to have been agreed to by the Landlord. If the two evaluations are within ten percent (10%) of each other, the fair market rent shall be the average of the two evaluations. If the two evaluations differ by more than ten percent (10%), the parties which prepared the respective reports shall designate a third Colorado licensed real estate broker who specializes in office leasing or MAI appraiser to determine the fair market rent, but in no event shall the fair market rent be greater than the Landlord’s opinion of Fair Market Rate within fifteen consultant’s evaluation or less than the Tenant’s consultant’s evaluation. The third Colorado licensed real estate broker or MAI appraiser shall prepare its report no later than twenty (1520) days after receipt being selected, its determination of fair market rent shall be binding on the parties, and its cost shall be shared equally by Landlord and Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If Upon the fair market rent for the Extended Term being determined, the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as shall execute a lease extension agreement setting forth the amount of Base Rent during the last day of the then-current Rental Extended Term. Alternatively, Tenant and Landlord may mutually The parties agree to submit the determination of Fair Market Rate negotiate with each other in good faith in connection with this option to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processrenew.
Appears in 1 contract
Samples: Lease Agreement (Cobiz Inc)
OPTION TO RENEW. Provided Landlord hereby grants to Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have option to renew this Lease for two (2) additional consecutive five terms of three (53) year years each, upon the same terms and conditions as herein contained, except as modified by this section provided that Tenant not be in default under this Lease at the time the option is exercised or upon commencement of the extended term. The rent for the options shall be at the then Fair Market rent, but in no event shall the rent be less than the last months rent prior to the expiration of the lease term. The option to renew and extend shall not include broker's commission for the Rental Term as provided herein option period, free rent/pre-occupancy, additional option period, and/or new tenant improvements. In the event Tenant desires to exercise its option to extend, Tenant shall so notify Landlord in writing at least six (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (126) months prior to the expiration of the Rental Term and no later than term. Landlord shall then, within fifteen (15) days after the date which is nine (9) months prior to the expiration receipt of said notice, notify Tenant in writing of the Rental Term (the “Option Notice”). The Base Monthly Rent new base monthly rent to apply during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesperiod. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Landlord's notice, Tenant shall give written notice to the Landlord either accepting the proposed new base monthly rent or stating its exception to such proposal and appointing a real estate broker who is experienced in leasing similar type business properties. Within ten (10) days after receipt of such notice, Landlord shall designate a similarly qualified real estate broker and give written notice thereof to Tenant’s opinion . The two brokers so appointed shall select and appoint in writing a third party similarly qualified real estate broker and then give written notice thereof to Landlord and Tenant. The broker so appointed shall promptly fix a time for the completion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within appraisal, which shall be no later than thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as from the date of appointment of the last day broker. Broker shall notify Landlord and Tenant as to the date fixed for the completion of that appraisal. On that date, the brokers and Landlord and tenant shall meet and brokers shall each submit their appraisal of fair rental value of the thenPremises for use then being made of the Premises in writing in the usual form to Landlord and Tenant, and the fair rental value shall be determined by taking the numerical average (mean) of the two (2) appraisal figures which are the closest together, provided however, that such appraisals shall reasonably reflect the fair rental value of the Premises. Each of the parties hereto shall pay for the services of his appointee broker and one-current Rental Termhalf (1/2) of the cost of the services of the third broker. AlternativelyFair market rental value for the purpose of this Lease shall mean the then prevailing rent for premises comparable in size to the premises located in buildings comparable in size, Tenant age, quality to, in the general vicinity of the Building and Landlord may mutually agree leased on terms comparable to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided terms contained in Exhibit “F” – Market Assessment Processthis lease.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and granted the right to extend the term of this Lease beyond the expiration date of the initial term for two periods of thirty-six (36) months each (each an "Extended Term"). Tenant may not exercise its Extension Right if it is then in default beyond any applicable cure period or if it has not ever been (in default beyond any applicable cure period more than two (2) times), times in default under any of the terms and conditions contained herein, twelve (12) month period. Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised may exercise its Extension Right by Tenant delivering written notice thereof to Landlord no not earlier than the date which is twelve one (121) months prior to the expiration of the Rental Term year and no not later than the date which is nine (9) months prior to the expiration of the Rental Term initial term or First Extended Term, as applicable. In each Extended Term, all terms and conditions of this Lease shall apply, except (i) there shall be no Tenant Improvement Allowance, (ii) paragraph 30 of this Lease shall not apply, and (iii) the “Option Notice”). The Base Minimum Monthly Rent during the first year of for each extension periods Extended Term shall be the lesser of: then prevailing market rate for a similar lease and term for similarly situated and improved space in the Bothell-Woodinville High-Tech Industrial Market (i) the then current "Fair Market Rate (as defined) for comparable space within Rent"), provided that in no event shall the Project, and (ii) the Base Minimum Monthly Rent then in effect for the Leased Premises during Extended Term be less than the Minimum Monthly Rent for the last month of the initial Rental immediately prior term. In calculating Fair Market Rent, the then- existing monthly rate for non-renewal tenants shall be used, without deduction for commissions or tenant improvement allowances. Extension Rights shall apply to all of the Premises then under lease to Tenant. Tenant's Extension Right is personal and may not be exercised by any assignee or sublessee other than an affiliate of Tenant or a successor by merger or consolidation. If Landlord and Tenant are not able to agree on the Fair Market for the Extended Term within thirty days after Xxxxxx's notice of election to renew, then such Fair Market Rent shall be determined as follows. Landlord and Tenant shall each select an appraiser with at least ten years experience in the office/high-tech industrial market in the eastside area. If the two appraisers are unable to agree within ten days after their selection, they shall select a similarly qualified third appraiser (increasing each year thereafter by 3%, compoundedthe "Neutral Appraiser"). “Fair Market Rate” means Within twenty days after selection of the market rate for rent chargeable for Neutral Appraiser, the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant three appraisers shall notify Landlord of Tenant’s option simultaneously exchange determinations of Fair Market Rate for the applicable renewal periodRent. If Landlord disagrees with Tenant’s opinion the lowest appraisal is not less than ninety percent (90%) of the highest appraisal, then the three appraisals shall be averaged and the result shall be the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)Rent. If the parties are unable to resolve their differences within thirty lowest appraisal is less than ninety percent (3090%) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of highest appraisal, then the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate Rent shall be deemed the rent set forth in the appraisal submitted an appraiser appointed by a party that is closest in dollar amount to a “Market Assessment Process,” the appraisal submitted by the Neutral Appraiser. Landlord: TMT-BOTHELL, LLC By /s/ Xxxxxxx XxXxxxxx ---------------------------- Its Vice-President By ____________________________ Its Tenant:________________________ By /s/ Xxxxx X. Xxxxxxx ---------------------------- Its President, CEO By ____________________________ Its STATE OF WASHINGTON ) )ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that Xxxxxxx XxXxxxxx is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument as the Vice President of TMT-BOTHELL, LLC to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: 5/13/98 /s/ Xxxxx Xxxxxxxx [Stamp Appears Here] ------------------------------- (Signature) XXXXX XXXXXXXX ------------------------------- (Print Name) Notary Public, in and for the State of Washington, residing at Seattle My Commission Expires 2/4/01 XXXXXXXX'S WORK BUILDING IMPROVEMENTS TO BE PROVIDED BY THE LANDLORD ---------------------------------------------------- All improvements provided in Exhibit “F” – Market Assessment Process.by the Landlord shall be considered building standard and will be constructed using building standard materials, and finishes. Landlord shall be solely responsible for the work and expense of providing the following building improvements:
Appears in 1 contract
Samples: Lease Agreement (Sonosight Inc)
OPTION TO RENEW. Provided Tenant shall have the right to renew the term of this Lease for one (1) period of one (1) year (the “Renewal Term”) subject to the following terms and conditions:
A. Tenant shall not be entitled to extend the term hereof if on the date provided for the exercise of its rights hereunder, or on the date of commencement of the Renewal Term, Tenant is notin default of the performance of any of the terms, covenants and conditions herein contained for which notice of default has been given by Landlord to Tenant in the manner provided in this Lease, which default has not been (more than two (2) times), or is not being remedied in default under any of the terms and conditions contained herein, time provided in this Lease;
B. Tenant shall have two (2) additional consecutive five (5) year options exercise its right to extend the term of this Lease, if at all, by notifying Landlord in writing of its election to exercise its right to renew and extend the Rental Term as provided herein term hereof (a “OptionRenewal Notice”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier ) not later than the date which is twelve six (126) months prior to the expiration of the Rental term;
C. The Renewal Term shall be upon the same terms, covenants and conditions as contained in this Lease; provided, however, that the Gross Rent for the Renewal Term shall be determined by mutual agreement between Landlord and Tenant based upon the then prevailing market rental rate per square foot charged by Landlord for comparable warehouse space in buildings of like quality in the same rental market as the building as of the date the Renewal Term is to commence, but in no later event shall the Gross Rent for the Renewal Term be lower than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Gross Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month year of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means term of the market rate for rent chargeable Lease;
D. In the event Landlord and Tenant are unable to agree upon the Gross Rent for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate Renewal Term within fifteen (15) days after receipt delivery of Tenant’s opinion the Renewal Notice, the option to renew shall be deemed null and void and the Lease shall expire in accordance with its term; and
E. The option to renew shall be personal to Tenant and shall be null and void and of Fair Market Rate (“Landlord’s Value Notice”). If no further force or effect in the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate event Tenant assigns this Lease. EXECUTED BY LANDLORD, effective as of the last this 29th day of the thenAugust, 2006. Attest/Witness AMB PARTNERS II LOCAL, L.P., a Delaware limited partnership Title: By: AMB PROPERTY II, L.P., a Delaware limited partnership Its: General Partner By: TEXAS AMB I, LLC, a Delaware limited liability company Its: General Partner By: AMB PROPERTY HOLDING CORPORATION, a Maryland corporation Its: Sole Member By: Xxxxxxxxxxx X. Xxxxx, Vice President ADDRESS: AMB Property Corporation Attn: Regional Manager-current Rental Term. AlternativelyChicago One X’Xxxx Centre 0000 Xxxxx Xxxxx Xxxx, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to Xxxxx 0000 Xxxxxxxx, Xxxxxxxx 00000 With a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.copy to: AMB Property Corporation
Appears in 1 contract
Samples: Commercial Lease Agreement (Power Solutions International, Inc.)
OPTION TO RENEW. Provided Tenant Lessee is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained hereinof the Lease on (i) the date Lessee delivers to Lessor the Renewal Notice (as defined below) and (ii) the date the Renewal Period (as defined below) commences, Tenant Lessee shall have two the option (2"Renewal Option") to extend the Term of the Lease for one (1) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein period (“Option”"Renewal Period"). The Option If Lessee desires to exercise its Renewal Option, Lessee shall only be exercised by Tenant delivering deliver written notice thereof ("Renewal Notice") to Landlord no earlier than the date which is twelve Lessor at least fourteen (1214) months prior to the expiration of the Term. The Renewal Option shall on the same terms and conditions as contained in the Lease, except annual Rent for the Renewal Period shall be the Prevailing Market Rental Term Rate (as defined below). Notwithstanding any of the foregoing, any attempt by Lessee to exercise the Renewal Option by any method, or at any time, or in any circumstance, except as specifically set forth above, shall, at the sole option and discretion of Lessor be null and void and of no later than force or effect. For purposes of this Paragraph 9, "Prevailing Market Rental Rate" shall mean the rental rate, expressed as the annual amount per rentable square foot for a term equivalent to the period for which Prevailing Market Rental Rate is being determined and rental related terms beginning with the first (1st) day of the subject period that a willing, creditworthy, new, non-equity tenant leasing comparable space to Lessee's would pay and a willing, comparable landlord of an industrial complex comparable to the Complex located in the Chicago Metropolitan Industrial Market, includ- ing, Lake County, Indiana (the "Market") would accept at arms length, giving appropriate consideration to 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 industrial complexes located in the Market. It is hereby agreed between Lessor and Lessee that each party shall negotiate in good faith for a period of sixty (60) days subsequent to the date which Lessor is nine in receipt of the Renewal Notice (9"Negotiation Period") months as to the Prevailing Market Rental Rate. In the event Lessor and Lessee are unable to agree upon the Prevailing Market Rental Rate, despite each party's good faith efforts, prior to the expiration of the Rental Term (the “Negotiation Period, Lessee's Renewal Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, deemed no longer to be of any force and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processeffect.
Appears in 1 contract
Samples: Lease Agreement (Alternative Distribution Systems Inc)
OPTION TO RENEW. Provided Tenant (a) If Subtenant is not, not in Default hereunder and has not at any time been in Default hereunder beyond the applicable cure period, Subtenant shall have the option to renew this Sublease (more than two (2) timesthe “Renewal Option”), upon written notice thereof not less than six (6) months prior to the Sublease Expiration Date, either: (i) for a renewal term of one (1) year, commencing at the Sublease Expiration Date; or (ii) for a renewal term equal to the term remaining under the Master Lease. This Renewal Option may not be exercised by any assignee or subtenant of Subtenant, except for any assignee or subtenant permitted under Section 8(b) of this Sublease. If Subtenant timely exercises its Renewal Option provided in default this Section 4(a), then this Sublease shall continue in full force and effect as written except that there shall be no further Renewal Options and the Monthly Base Rent shall be adjusted as provided in this Section 4.
(b) If Subtenant exercises its Renewal Option under any of Section 4(a)(i) above, the terms and conditions contained hereinMonthly Base Rent for the renewal term shall be equal to $1.00 per square foot per month.
(c) If Subtenant exercises its Renewal Option under Section 4(a)(ii) above, Tenant the Monthly Base Rent for the renewal term shall have two (2be an amount equal to the fair market rental rate(s) additional consecutive for a five (5) year options to renew and extend term for comparable space in the Rental Term as provided herein Greater San Francisco/Mid-Peninsula area (collectively “OptionFair Market Rent”), but in no event less than $1.00 per square foot per month. The Option Sublandlord shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration advise Subtenant in writing of the Rental Term and Sublandlord’s calculation of Fair Market Rent no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal periodafter Subtenant has exercised its Renewal Option. If Landlord Subtenant disagrees with Tenant’s opinion of the Fair Market Ratesuch calculation, Landlord it shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences advise Sublandlord in writing thereof within thirty (30) days thereafter. If there is a disagreement on such calculation, Landlord or Tenantthe parties shall promptly meet to attempt to resolve their differences. If these differences as to Fair Market Rent are not resolved within a one (1) month period, at its sole optionthen the parties shall submit the matter to arbitration in accordance with the terms of this Section 4 so that Fair Market Rent is determined no later than one (1) month prior to the Sublease Expiration Date.
(d) If the parties are unable to reach agreement on Fair Market Rent during the period specified in Section 4(c), then within ten (10) days thereafter either party may terminate this Lease, effective as advise the other in writing of the last day name and address of its arbitrator. Each arbitrator shall be an appraiser or commercial real estate broker with at least ten (10) years of experience with commercial rental rates in the greater San Francisco/Mid-Peninsula area. Within ten (10) days after receipt of such notice from the initiating party (the “Initiator”) designating its arbitrator, the other party (the “Recipient”) shall give notice to the Initiator, specifying the name and address of the then-current Rental Termperson designated by the Recipient to act as arbitrator on its behalf who shall be similarly qualified. AlternativelyIf the Recipient fails to notify the Initiator of the appointment of its arbitrator within the time specified above, Tenant then the arbitrator appointed by the Initiator shall be the arbitrator to determine Fair Market Rent. The duty of the arbitrator(s) shall be to determine the Fair Market Rent. The arbitrators so chosen shall meet within ten (10) days after the second arbitrator is appointed, and Landlord may mutually any decision as to Fair Market Rent in which the two arbitrators concur shall be binding and conclusive upon the parties. If within ten (10) days after such first meeting the two arbitrators shall be unable to agree to submit the promptly upon a determination of Fair Market Rate Rent, they shall within ten (10) days thereafter appoint a third arbitrator, who shall be a competent and impartial person with qualifications similar to those required of the first two arbitrators. Concurrently with their selection of the third arbitrator, the two arbitrators selected by the parties shall each furnish the third arbitrator with his or her determination of the Fair Market Rent in writing, supported by the reasons therefor, with counterpart copies to each party. The arbitrators shall arrange for a “simultaneous exchange of such proposed resolutions. The role of the third arbitrator shall be to select one of the two proposed resolutions that most closely approximates the third arbitrator’s determination of Fair Market Assessment Process,” Rent. The third arbitrator shall make such selection within ten (10) days of receipt of the two proposed resolutions, and shall have no right to propose a middle ground or any modification of either of the two proposed resolutions. The resolution that the third arbitrator chooses as provided in Exhibit “F” – most closely approximating his or her determination of Fair Market Assessment ProcessRent shall constitute the decision of the arbitrators and be final and binding upon the parties. Each party shall pay the fees and expenses of its respective arbitrator and both shall share equally the fees and expenses of the third arbitrator (if any), and the attorneys’ fees and expenses of counsel for the respective parties and of witnesses shall be paid by the respective party engaging such counsel or calling such witnesses.
Appears in 1 contract
Samples: Sublease Agreement (Niku Corp)
OPTION TO RENEW. (a) Provided Tenant is not, and that no uncured Event of Default has not been (more than two (2) times), in default under any of the terms and conditions contained hereinoccurred, Tenant shall have two one (21) additional consecutive five option to extend (5“Renewal Option”) year options the Term of this Lease for either (i) the entire twelfth floor, or (ii) the entire Premises (as so selected, the “Extension Premises”) for sixty (60) months, commencing upon the expiration of the initial Term of the Lease (“Extension Term”), subject to renew and the terms of this Article 54. In the event Tenant elects to exercise its option to extend the Rental Lease Term by the Extension Term, as provided herein hereunder, Tenant shall provide Landlord irrevocable written notice of such election (“OptionElection Notice”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord , no earlier than the date which is fifteen (15) months and no later than twelve (12) months prior to the then-existing expiration date of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term this Lease (the “Option NoticePeriod”). The Base Monthly Rent during , which Election Notice must also specify whether the first year Extension Premises will consist of each extension periods shall be the lesser of: space identified in clause (i) the then current Fair Market Rate or (ii), above, of this Section 54(a). Except for Base Rent which shall be determined as defined) for comparable space within the Projectset forth in Section 54(b), and (ii) the Base Monthly Rent then in effect for the Leased possibility that the Extension Premises will consist of less than the entire Premises, in which case the Tenant’s Percentage shall be appropriately adjusted, the terms and conditions of this Lease during the last month Extension Term shall be identical to the terms and conditions of the initial Rental Term this Lease.
(increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable b) Base Rent for the Leased Premises based upon the following factors applicable Extension Term shall be adjusted to the Leased Premises or any comparable premises: rentfair market rental value (“FMV”), escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesas determined herein. Within thirty (30) days of Option Notice, In the event Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for timely exercises the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market RateRenewal Option, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate shall, within fifteen (15) business days after receipt of Tenant’s opinion Election notice exercising the Renewal Option, notify Tenant of Fair Market Rate Landlord’s good faith determination of the Base Rent for the Extension Term (the “Landlord’s Value NoticeOption Rent Response”). Tenant shall accept or reject Landlord’s Option Rent Response by notice to Landlord within ten (10) business days following receipt of Landlord’s Option Rent Response. If Tenant fails to object to Landlord’s Option Rent Response within such time period, then Landlord’s determination of FMV set forth in the Landlord’s Option Rent Response shall be conclusive and binding. If Tenant does not accept Landlord’s Option Rent Response, then Landlord and Tenant shall attempt to agree upon the Base Rent for the Extension Term (“Option Rent”) using their good faith efforts. If Landlord and Tenant fail to reach agreement on the Option Rent within twenty (20) days following Tenant’s receipt of Landlord’s Option Rent Response, then within three (3) business days after demand by either Landlord or Tenant, each party shall simultaneously present to the other and certify to each other such party’s final offer regarding the Option Rent for the Extension Term (each, a “Last Offer”). If the parties are unable fail to resolve their differences agree on the Option Rent within thirty such twenty (3020) days thereafterday period following Tenant’s receipt of Landlord’s Option Rent Response, such Last Offers shall be submitted to arbitration by Landlord or Tenantand/or Tenant (the “Arbitration Demand”) in accordance with Section 54(b)(i) through (b)(viii), at its sole option, may terminate this Lease, effective as below and in accordance with the then existing Rules for Commercial Arbitration of the last day American Arbitration Association, or its successor. The following rules shall apply to such arbitration, in addition to (and controlling over) the then existing Rules for Commercial Arbitration of the then-current Rental Term. AlternativelyAmerican Arbitration Association, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.or its successor:
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, and has not been (more than shall have the option to renew this Lease Agreement for two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive successive five (5) year options terms (each an “Extended Term”) provided that Xxxxxx gives written notice to Landlord of its intention to renew at least one hundred eighty (180) days prior to the end of the then current term of the Lease. Each Extended Term shall be on the same terms and extend conditions as contained herein for the Rental Term initial term of this Lease, except as expressly provided herein (“Option”)to the contrary with respect to Base Rent and except for such as are, by their terms, inapplicable to an Extended Term. The Option Base Rental for the first Extended Term shall only increase at a rate of one hundred three percent (103%) of the rate in effect at the end of the original lease term, with annual escalations at a rate of three percent (3%) per year thereafter, payable in monthly installments on or before the first day of each calendar month in the first Extended Term. The Base Rental for the second Extended Term shall be exercised by Tenant delivering written notice thereof to Landlord upon the same terms and conditions as contained herein except that the annual base rental shall be the fair market rental value (but in no earlier event less than the date current rental rate under the Lease) which is twelve shall be determined as follows:
(12a) months prior Landlord and Tenant will have fifteen (15) days after Landlord receives the renewal notice within which to agree on the then-fair market rental value of the Leased Premises as defined in paragraph (c) below for the renewal period. If they agree on the base monthly rent for the renewal period within fifteen (15) days, they will amend this Lease by stating the base monthly rental for the renewal period.
(b) If they are unable to agree on the base monthly rental for the renewal period within fifteen (15) days, then the base monthly rental for the renewal period will be the then-fair market rental value of the Leased Premises as determined in accordance with paragraph (d) below.
(c) The “then-fair market rental value of the Leased Premises” means what a Landlord under no compulsion to lease the Leased Premises and a Tenant under no compulsion to lease the Leased Premises would determine as rents for the renewal period, as of the commencement of the renewal period, taking into consideration the uses permitted under this Lease, the quality, size, design, and location of the Leased Premises, and the rent for comparable buildings located in the vicinity of the Leased Premises. The then-fair market rental value of the Leased Premises for the renewal period will not be less than that provided during the initial term.
(d) Within seven (7) days after the expiration of the Rental Term fifteen (15) day period set forth in paragraph (b) above. Landlord and no later than Tenant will each appoint a real estate appraiser to appraise the date which is nine (9) months prior to the expiration then-fair market rental value of the Rental Term (the “Option Notice”)Leased Premises. The Base Monthly Rent during two appraisers will meet promptly and attempt to set the first year then-fair market rental value of each extension periods shall be the lesser of: Leased Premises. If they are unable to agree within thirty (i30) days, they will select a third appraiser within ten (10) days to set the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for fair market rental value of the Leased Premises during the last month Premises. Landlord and Tenant will bear one-half (1/2) of the initial Rental Term cost of appointing the third appraiser and of paying the third appraiser’s fee.
(increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. e) Within thirty (30) days after the selection of Option Noticethe third appraiser, Tenant shall notify Landlord a majority of Tenant’s option the appraisers will set the then-fair market rental value of Fair Market Rate for the applicable renewal periodLeased Premises. If Landlord disagrees with Tenant’s opinion a majority of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties appraisers are unable to resolve their differences set the then-fair market rental value of the Leased Premises within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as after selection of the last day of third appraiser, the three appraisals will be averaged and the average will be the then-current Rental Term. Alternatively, fair market rental value of the Leased Premises.
(f) It is expressly understood that Tenant shall have no option to renew this Lease for the renewal term if at the time of the attempted exercise of such option or at the commencement of such renewal term this Lease is not then in full force and Landlord may mutually agree to submit the determination effect or if Tenant is then in default of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processany terms and conditions of this Lease.
Appears in 1 contract
Samples: Office Lease (CNB Holdings Inc /Ga/)
OPTION TO RENEW. Provided that Tenant is not, and has not been (more than two (2) times), in default under of any of the terms and or conditions contained hereinof this Lease at the time Tenant gives notice that it wishes to exercise the renewal option or at the time the option term is scheduled to commence, then the Tenant shall have two (2) additional consecutive five (5) year options the option, to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve at least six (126) months prior to the expiration of the Rental original term of this Lease, and first renewal term respectively, to renew this Lease for one (1) additional five year term ("First Renewal Term"), and then one (1) additional five year term ("Second Renewal Term") upon the terms and conditions provided in the original Lease. Notwithstanding the foregoing, however, the base rent payable during the First Renewal Term shall be 95% of the market value for equivalent space in the Office Complex, as determined by the average of the latest three leases for office space in the Office Complex, which leases shall be for space of at least 6,000 contiguous square feet and no later than on a floor higher that the sixth floor of the Office Complex, as of the date which is nine (9) months Tenant exercises the option. However, if there have not been three leases for such space within the 18 month period prior to the expiration date Tenant exercises its option for the First Renewal Term, then the market value for equivalent space in the Office Complex shall be determined by the average of the Rental Term (latest three leases for office space in the “Option Notice”)same class building within a two mile radius of the Office Complex and which will be for space of at least 6,000 contiguous square feet and on a floor higher than the sixth floor of such building, together with any leases written for office space in the Office Complex for space of at least 6,000 contiguous square feet and on a floor higher than the sixth floor of the Office complex during the 18 month period prior to the date Tenant exercises its option for the First Renewal Term. The Base Monthly Rent base rent payable during the first year of each extension periods Second Renewal Term shall be 95% of the lesser of: (i) market value for equivalent space in the then current Fair Market Rate (Office Complex, as defined) determined by the average of the latest three leases for comparable office space in the Office Complex, which leases shall be for space of at least 6,000 contiguous square feet and on a floor higher than the sixth floor of the Office Complex, as of the date Tenant exercises its Option for the Second Renewal Term. However, if there have not been three leases for such space within the Project, and (ii) 18 month period prior to the Base Monthly Rent then in effect date Tenant exercises its Option for the Leased Premises Second Renewal Term, then the market value for equivalent space in the Office Complex shall be determined by the average of the latest three leases for office space in the same class building within a two mile radius of the Office Complex and which will be for space of at least 6,000 contiguous square feet and on a floor higher than the sixth floor of such building, together with any leases written for office space in the Office Complex for space of at least 6,000 contiguous square feet and on a floor higher than the sixth floor of the Office Complex during the last 18 month of period prior to the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable date Tenant exercises its option for the Leased Premises based upon Second Renewal Term. Notwithstanding the following factors applicable foregoing, if Tenant fails or is unable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of exercise its Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal periodFirst Renewal Term, then Tenant's Option for the Second Renewal Term, shall become void. If Landlord disagrees with Tenant’s opinion There shall be no further right of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processrenewal.
Appears in 1 contract
Samples: Office Space Lease Agreement (Preferred Employers Holdings Inc)
OPTION TO RENEW. Provided Tenant Lessee is notgiven the option to extend the term of this Lease for one (1) additional three (3) year period following the expiration of the initial term, and provided Xxxxxx has not been late in payment of monthly rent (resulting in the service of a three-day notice) more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive five (5) year options times during the initial term or the first extended term of this Lease. The option to renew and extend is conditioned by giving notice of exercise of the Rental Term as provided herein option (“Option”). The "Option shall only be exercised by Tenant delivering written notice thereof Notice") to Landlord no earlier Lessor at least (9) nine months but not more than the date which is twelve (12) months prior to before the expiration of the Rental Term and no later than initial term or any extended term, provided that, if Lessee is in default on the date which is nine (9) months prior to of giving the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during , the first year of each extension periods Option Notice shall be ineffective, or if Lessee is in default on the lesser of: (i) date the then current Fair Market Rate (as defined) for comparable space within extended term is to commence, the Project, extended term shall not commence and (ii) this Lease shall expire at the Base Monthly Rent then in effect for the Leased Premises during the last month end of the initial Rental Term (increasing each year thereafter by 3%term or first extended term. If notification of Xxxxxx's intention to exercise said option is not so given and received, compounded)this option shall automatically expire. “Fair Market Rate” means the market rate for The monthly rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. extended term shall be payable as follows:
39.1 Within thirty (30) days after Lessee exercises the option to renew this lease, and prior to the commencement of Option Noticethe extended term, Tenant the parties shall notify Landlord of Tenant’s option of Fair Market Rate meet and determine whether or not they can agree upon the new monthly rent based on the fair market rental value for the applicable renewal periodpremises at the time extended term is to commence. If Landlord disagrees with Tenant’s opinion In the event the parties cannot agree on the new monthly rent, the monthly rent for the extended period shall be the prevailing fair market rental value for the San Anselmo Avenue area, as determined by appraisal described as follows. However, in no event shall the monthly rent for the extended term be less than the monthly rent paid during the last year of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen initial term.
39.2 Within ten (1510) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the determination by the parties are unable to resolve their differences that they cannot agree upon a mutual agreeable fair market rental value, each party shall select a licensed real estate broker familiar with the San Anselmo Avenue area and commercial rents in said area. The two (2) brokers shall then meet within thirty twenty (3020) days thereafterthereafter in order to determine the prevailing fair market rental for the San Anselmo Avenue area. In the event the two (2) selected real estate brokers cannot mutually agree upon the prevailing fair market rental value for the San Anselmo Avenue area, Landlord or Tenantthey shall then select a third broker, at its sole option, may terminate this Lease, effective as and the majority of appraisals of value and the average of the last day three appraisals of value by the three brokers shall then establish and constitute the prevailing fair market rental. Provided, however, should the appraisal of any one of the thenbrokers selected by the parties differ by more than ten percent (10%) from the appraisal of the third (3rd) broker, such appraisal shall be excluded from consideration and the average of the two remaining appraisals shall constitute the prevailing fair market rental. "Appraisal" or "Opinion" are used in this subparagraph shall be calculated on the basis of price per square foot, modified gross. Each party should bear the cost of the broker which he/she retains pursuant to this paragraph and one-current Rental Termhalf (1/2) of the cost of the third broker. AlternativelyThe fair market rental value, Tenant as determined by said brokers, shall be the monthly rental payable commencing the first year of the extended term. Notwithstanding the foregoing, the monthly rent as determined by said brokers shall not be less than the monthly rent paid during the last year of the initial term.
39.3 The monthly rental payable during the ensuing years of the extended term, i.e., years two (2) through five (5) shall be adjusted pursuant to the change and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” consumer price index as provided set forth in Exhibit “F” – Market Assessment Processparagraph 5.2.
Appears in 1 contract
OPTION TO RENEW. Section 31.1 Provided Tenant that TENANT is not, and has not been (more than two (2) times), in default under any the terms of this lease, TENANT shall have the option to renew this lease for two five year periods. The first option terms shall be for the period of the terms and conditions contained herein, Tenant 1st day of March 2004 through the 28th day of February 2009. The second option term shall have two be for the period of the 1st day of March 2009 through the 28th day of February 2014. The Annual Basic Rent for the option period(s) shall be 90% of fair market value (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”detailed below). The Option During the first option period, the monthly rent shall only not be exercised by Tenant delivering written notice thereof to Landlord no earlier less nor more than 10% more than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then rent paid in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%term. During the second option period, compounded)the monthly rent shall not be less than nor more than 10% more than the last month's rent of the first option term. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify the Landlord of Tenant’s option its intention to exercise its option(s) 12 months prior to the end of Fair Market Rate the term of this lease. To determine fair market value for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of option period(s), LANDLORD and TENANT shall immediately meet to determine the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”then current market value rent for the Demised Premises for the option period(s). If In the parties event that LANDLORD and TENANT are unable to resolve agree on the market value rent for the option period(s) within ninety days of the date hereinabove set forth then within ten days of the expiration of said ninety day period, LANDLORD and TENANT shall each select an M.A.I. real estate appraiser familiar with commercial leasing in the area and notify the other of their differences selection and the said two appraisers shall meet within thirty (30) ten days thereafterafter their selection to determine the Market Value Rent for the ensuing five year term. In the event that the two appraisers are unable to agree on the Market Value Rent, Landlord or Tenantthey shall pick a third appraiser whose determination of the Market Value Rent shall be conclusive upon the parties. In the event that the two appraisers are unable to select a third appraiser, at its sole option, may terminate the question of determining Market Value Rent shall be submitted to the AMERICAN ARBITRATION ASSOCIATION in Nassau County for decision under their rules then obtaining. The term "market value rent" for the purposes of this Lease, effective section shall be deemed to mean the fair market rental rate for like space similarly situated in first class office buildings reasonably proximate to the Building in the same geographical area as of the last day commencement of the then-current Rental Term. Alternativelyfive year period for which the Basic Annual Rent is being determined, Tenant taking into consideration the escalations and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” base periods thereof as provided for in Exhibit “F” – Market Assessment Processthis lease. Notwithstanding the above, TENANT shall have the right to recant its notice to the LANDLORD to exercise the option within said ninety day period. Any monies expended by the LANDLORD, with prior written approval of the TENANT, during such ninety day period shall be reimbursed by TENANT.
Appears in 1 contract
OPTION TO RENEW. A) Provided that Tenant has not assigned this lease or sublet all or any part of the premises and provided that Tenant is not, and has not been (more than two (2) times), in default under any this lease at the time of exercise of the terms and conditions contained hereinhereinafter described option or at the time of termination of the existing term of this lease, Tenant shall have two one (21) additional consecutive five option to extend the term of this lease for a period of Five (5) year options to renew and extend years (the Rental Term as provided herein (“Option”"Extended Term"). The Option Tenant shall only be exercised by Tenant delivering written notice thereof notify Landlord, in writing, of its intent to Landlord exercise said option no earlier later than the date which is twelve one hundred fifty (12150) months days prior to the expiration date of the Rental Term and no later than the date which is nine (9) months this lease. If Tenant does not notify Landlord in writing prior to the expiration time frame as stipulated above, this option to renew shall be null and void. In all respects, the terms, covenants and conditions of this lease shall remain unchanged during the Extended Term, except that the Monthly Installment of rent payable at the commencement of the Rental Extended Term (shall be increased in accordance with subparagraph B below, and except that there shall be no further option to extend the “Option Notice”)term of this lease at the end of the Extended Term. The Base Monthly Rent during option to extend hereby granted is personal to the first year of each extension periods shall be the lesser of: (ioriginal Tenant under this lease and is granted so that such original Tenant can occupy the
B) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month Promptly following exercise of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means option to extend the market rate for rent chargeable for the Leased Premises based parties shall meet and endeavor to agree upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant Rental based on the highest and best use for the premises as of Landlord’s opinion the first day of the Extended Term. In determining the Fair Market Rate Rental for the premises and adjustments in the rental rate, the premises shall be compared only to office buildings of similar quality and size in the City of Mountain View, Santa Xxxxx County and all legal uses of the premises shall be considered. If within fifteen (15) days after receipt exercise of Tenant’s opinion of the option, the parties cannot agree upon the Fair Market Rate (“Landlord’s Value Notice”). If Rental for the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective premises as of the last first day of the then-current Extended Term this option to renew shall be null and void. In no event shall the rental amount for the first year of the option period be less than the previous year.
C) Commencing as of the first day of the thirteenth (13th) month of the Option Term, and continuing on each Rental Adjustment date during the remainder of the Option Term. Alternatively, Tenant and Landlord may mutually agree the Monthly Installment of rent shall be increased in accordance with the procedures set forth in Paragraph 4.3 of the Lease, except that for the purpose of adjusting the Monthly Installment of rent during the Option Term shall have the following meanings: (1) "Initial Index" shall mean the Index last published prior to submit the determination commencement of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthe Option Term.
Appears in 1 contract
Samples: Sublease (Macrovision Corp)
OPTION TO RENEW. Provided Tenant is notshall have the right, and has not been (more than to be exercised as hereinafter provided, to extend the term of this Lease for two (2) times)extension periods of five (5) years each, each such period sometimes hereinafter referred to as a “Renewal Term” and such periods sometimes hereinafter referred to collectively as the “Renewal Terms,” upon the following terms and conditions and subject to the limitations hereinafter set forth.
(a) At the time hereinafter set forth for the exercise of each Renewal Term and as of the commencement of such Renewal Term, this Lease shall be in default full force and effect and no Event of Default by Tenant shall exist under any of the terms terms, covenants and conditions herein contained which has not been remedied within the applicable cure period provided for under this Lease.
(b) Except as otherwise specifically provided in this Lease, each Renewal Term shall be upon the same terms, covenants and conditions contained hereinin this Lease, including, but not limited to, Tenant’s obligation to pay Additional Rent, and any other cost or charge which may be due and payable by Tenant under the Lease shall have two continue to be applicable to such Extension Term, except that the annual Basic Rent for the first Lease Year of each Renewal Term shall be equal to ninety-five percent (295%) additional consecutive of the then Fair Market Basic Rent (as hereinafter defined) for the Premises (the “Renewal Basic Rent”). At the commencement of the second Lease Year and each subsequent Lease Year of each five (5) year options Renewal Term, the Basic Rent shall be increased to an amount equal to 102% of the Basic Rent for the immediately preceding Lease Year. All other payments on the part of Tenant to be made as provided in this Lease shall continue to be made during each of the Renewal Terms including, without limiting the generality of the foregoing, impositions, insurance premiums and other expenses and charges to the extent payable by Tenant hereunder. Landlord and Tenant shall endeavor to agree upon the Fair Market Basic Rent of the Premises prior to commencement of a given Renewal Term. Landlord shall communicate its determination of the Fair Market Basic Rent made in Landlord’s reasonable determination, pursuant to the criteria set forth in Section 1.2.6(c), below, to Tenant not later than fifteen (15) months prior to the expiration of the initial Lease Term or the first Renewal Term, as the case may be. Any agreement reached by the parties hereto with respect to such Fair Market Basic Rent for a given Renewal Term shall be expressed in writing and shall be executed by the parties hereto, and a copy thereof delivered to each of the parties. Should Landlord and Tenant fail to agree at least fourteen (14) months prior to the commencement of a given Renewal Term upon the Fair Market Basic Rent of the Premises, then such Renewal Basic Rent shall be Fair Market Basic Rent determined by arbitration in accordance with the provisions of Section` hereof. “Fair Market Basic Rent “ shall mean the Basic Rent, as determined by Landlord and Tenant on the basis of the then prevailing market rental rates and economic terms for office space in Comparable Buildings for tenants seeking to lease approximately the same amount of rentable area as that of the Premises then leased by Tenant pursuant to this Lease. In determining the Fair Market Basic Rent for the Premises, Landlord shall consider all elements affecting the proposed lease transaction including, but not limited to, those factors set forth in Section 1.2.6 (c).
(c) The Renewal Basic Rent during each Renewal Term shall be payable in equal monthly installments, equal to 1/12 of the annual Renewal Basic Rent, in advance on the first day of each calendar month during a Renewal Term.
(d) Tenant shall exercise its right to extend the term of this Lease for the aforesaid Renewal Terms by notifying Landlord, in writing, of its election to exercise the right to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than term of this Lease on or before the date which is at least twelve (12) months prior to the expiration of the Rental Term and no later than initial term of this Lease, in the case of the first Renewal Term, or a date which is nine at least twelve (912) months prior to the expiration of the Rental Term (first Renewal Term, in the “Option Notice”)case of the second Renewal Term. The Base Monthly Rent during the first year of each extension periods Time shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term essence with respect to such notices.
(increasing each year thereafter by 3%, compounded)e) There shall be no further or additional right to renew this Lease other than as is herein set forth. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or Any termination of this Lease shall terminate any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days later right of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processhereunder.
Appears in 1 contract
Samples: Office Lease Agreement (Royal Caribbean Cruises LTD)
OPTION TO RENEW. (a) Provided that Tenant is not, and has not been (more than two (2) times), in default under any at the time of Tenant's exercise of the terms and conditions contained hereinoption contemplated by this Paragraph 9 (the "Option") or at the commencement of the Option term, Tenant shall have two one (21) additional consecutive five (5) year options option to renew and extend the Rental Term as provided herein (“Option”)this Lease. The Option Tenant shall only be exercised by Tenant delivering written notice thereof provide to Landlord no earlier than the on a date which is twelve (12) months prior to the expiration date that the Option period would commence (if exercised) by at least two hundred seventy (270) days, a written notice of the Rental Term and no later than exercise of such Option to extend the date which is nine (9) months prior to Lease for the expiration additional Option term, time being of the Rental Term (the “Option Notice”)essence. The Base Monthly Rent during the first year of each extension periods Such notice shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then given in effect for the Leased Premises during the last month accordance with Article 34 of the initial Rental Term (increasing each year thereafter by 3%Lease. If notification of the exercise of the Option is not so given, compounded)the Option shall automatically expire. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors Base Rent applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity for the renewal term shall be equal to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of the "Fair Market Rate for Rental" (defined hereinafter). All other terms and conditions of the applicable renewal period. Lease shall remain the same.
(b) If Tenant exercises the Option, Landlord disagrees with Tenant’s opinion of shall determine the Fair Market Rate, Rental by using its good faith judgment. Landlord shall notify provide Tenant with written notice of Landlord’s opinion of Fair Market Rate such amount within fifteen (15) days after Tenant exercises its Option. Tenant shall have fifteen (15) days ("Tenant's Review Period") after receipt of Tenant’s opinion Landlord's notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rate (“Landlord’s Value Notice”)Rental using good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following the expiration of Tenant's Review Period ("Outside Agreement Date") then the parties are unable to resolve shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of New Jersey and who specializes in the field of commercial, industrial space leasing in the South Brunswick region of New Jersey, has at least five (5) years of experience and is recognized within the field as being reputable and ethical. If one party does not timely appoint a broker, then the broker appointed by the other party shall promptly appoint a broker for such party. Such two individuals shall each determine within ten (10) days after their differences appointment such Fair Market Rental. If such individuals do not agree on Fair Market Rental, then the two individuals shall, within thirty fifteen (3015) days thereafter, Landlord or render separate written reports of their determinations and together appoint a third similarly qualified individual having the qualifications described above. In the event Landlord's and Tenant's respective brokers are unable to agree upon a third broker, at its sole option, may terminate this Lease, effective as the third broker shall be appointed by the Chief Judge of the last day Circuit Court of Middlesex County, New Jersey. The third individual shall within ten (10) days after his or her appointment make a determination of such Fair Market Rental. The third individual shall determine which of the then-current Rental Term. Alternatively, Tenant determinations of the first two individuals is closest to his own and Landlord may mutually agree to submit the determination that is closest shall be final and binding upon the parties, and such determination may be enforced in any court of Fair Market Rate competent jurisdiction. Landlord and Tenant shall each bear the cost of its broker and shall share equally the cost of the third broker. Upon determination of the base rent payable pursuant to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthis Section, the parties shall promptly execute an amendment to this Lease stating the rent so determined.
Appears in 1 contract
Samples: Industrial Lease Agreement (G Iii Apparel Group LTD /De/)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have an option to renew the Lease for --------------- two (2) additional consecutive terms of five (5) year options years each. In order to renew and extend the Rental Term as provided herein (“Option”). The Option exercise each such option, Tenant shall only be exercised by Tenant delivering written notice thereof to notify Landlord no earlier than the date which is twelve (12) months in writing at least 180 days prior to the expiration of the Rental Term and no later than the date respective lease term of its election to exercise option, upon which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods time Landlord shall be the lesser of: (i) submit in writing within 30 days a proposal for the then current Fair Market Base Rental Rate (as definedper rentable square foot per annum, "NNN") for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded)applicable renewal option. “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within Tenant shall have thirty (30) days from the receipt of Option Noticesaid notice to (i) accept the proposed Base Rental Rate in writing to Landlord (ii) to reject the Base Rental Rate and elect the appraisal process set forth below or (iii) elect not to extend. If Tenant elects not to extend or fails to timely exercise its option, time being of the essence, the option shall automatically terminate and be of no further force and effect and this Lease shall terminate upon expiration of the then Lease term. The Base Rental Rate during the respective renewal term shall be at ninety-five percent (95%) of the then current Market Base Rental Rate. Any such renewal shall be upon all of the terms, conditions and covenants of this Lease except as to (i) the amount of Base Rent, (ii) options to renew or expand and (iii) Tenant finish or other allowances or concessions. As used herein, "Market Base Rental Rate" shall notify Landlord of Tenant’s option of Fair Market mean the then Base Rental Rate for comparable first class single tenant office buildings of comparable size, location and age in the applicable renewal periodCounty of Boulder, Colorado, at such time, taking into account the following factors (1) rent per rentable square foot; (2) operating expenses and real estate tax payments; (3) current rental escalators and (4) rental concessions, if any. If Landlord disagrees with Tenant’s opinion any portion of the Fair Market RateBase Rental Rate is attributable to improvements made by Tenant at Tenant's expense, Landlord then the Market Base Rental Rate shall notify Tenant specifically exclude any adjustment made by reason of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as of the last day of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processsuch alterations.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is not, in possession of the Premises and has is not been (more than two (2) times), in default under of any term, covenant or condition of the terms and conditions contained hereinthis Lease, Tenant shall have the options to renew the Term of this Lease for two (2) additional consecutive periods of five (5) year options years (each, a “Renewal Term”) to commence immediately upon the expiration of the initial Term and the first Renewal Term, as applicable, upon the same terms, covenants and conditions as contained in this Lease, except that (i) the Annual Basic Rent during each Renewal Term shall be at the “Prevailing Market Rate” and (ii) following the second Renewal Term there shall be no further option to renew except as specifically provided herein and extend (iii) there shall be no abatement of rent, and (iv) Landlord shall not be obligated to construct, pay for or grant an allowance with respect to tenant improvements unless otherwise specifically provided for in this Lease. “Prevailing Market Rate” shall mean the current market rental rate at which Landlord would offer such space or space of approximately the same size and location to a third party. In no event, however, shall the Annual Basic Rent during the Renewal Term be less than the Annual Basic Rent reserved under this Lease for the Rental Year immediately preceding the Renewal Term as provided herein (“Option”)for which the determination is being made. The Option In order to exercise the option granted herein, Tenant shall only be exercised by Tenant delivering written notice thereof to Landlord notify Landlord, in writing, no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental initial Term (the “Option Notice”). The Base Monthly Rent during or the first year Renewal Term, as applicable, that it is considering exercising its option to renew the Term. On receipt of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Projectsuch notice, and (ii) the Base Monthly Rent then Landlord will, in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%writing, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within not later than thirty (30) days after receipt of Option Noticethe notice from Tenant, quote Tenant shall notify Landlord of Tenant’s option of Fair Market Rate what the new Annual Basic Rent will be for the applicable renewal periodRenewal Term. If Landlord disagrees with Tenant’s opinion of the Fair Market RateTenant shall then notify Landlord, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within in writing, not later than fifteen (15) days after receipt notice received of Tenant’s opinion such Annual Basic Rent, as to whether or not it will exercise the option herein granted and if no such notice of Fair Market Rate (“Landlord’s Value Notice”)exercise of the option is received, the option shall be deemed waived. If In the parties are unable to resolve their differences within thirty (30) days thereafterevent Tenant exercise the option, Landlord or Tenantand Tenant shall execute a modification to this Lease acknowledging such renewal and setting forth the new Annual Basic Rent. The options shall be void if, at its sole optionthe time of exercise of such options, may terminate Tenant is not in possession of the Premises or is in default under this Lease or if Tenant fails to deliver the requisite notice thereof within the time period specified above. The options granted herein shall not be severed from this Lease, effective as of the last day of the then-current Rental Term. Alternativelyseparately sold, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processassigned or transferred.
Appears in 1 contract
Samples: Office Lease (Marpai, Inc.)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than hereby granted two (2) timessuccessive options to renew this Lease on the following terms and conditions:
A. At the time of the exercise of an option to renew and at the time of the commencement of the said renewal, the Tenant shall not be in default in accordance with the terms and provisions of this Lease (all required notices having been given and all relevant cure periods having expired), and shall be in default under any possession of the entire Premises pursuant to this Lease.
B. Notice of the exercise of each option shall be sent to the Landlord, in writing, at least nine (9) months before the expiration of the then current Term of this Lease.
C. Each renewal term (hereinafter “Renewal Term”) shall be for a period of three (3) years to commence at the expiration of the initial Term or the then current Term of this Lease, and all of the terms and conditions contained herein, Tenant of this Lease shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent apply during the first year of each extension periods shall be the lesser of: respective Renewal Term except (i) that Base Rent payable for the then current Fair Market Rate first Renewal Term shall escalate at $0.30 per square foot per year (as defined) i.e. Base rent for comparable space within year one of the Projectfirst Renewal Term shall be $11.45/s.f., year two at $11.75/s.f, and year three at $12.05/s.f. and (ii) the that Base Monthly Rent then in effect payable for the Leased Premises during the last month of the initial Rental second Renewal Term (increasing each year thereafter by 3%, compounded). shall be at “Fair Market Rate” means Rent”.
D. If Tenant fails to exercise the market rate for rent chargeable first renewal option for the Leased Premises based upon the following factors applicable later renewal option shall be considered null and void and of no further force and effect.
E. Fair Market Rent shall be a rental rate equal to the Leased then current market rate, for comparable space in other buildings comparable to the Premises or any comparable premises: rentin the submarket taking into account all relevant factors including the size and cost of the building in question when compared to the Premises and the amenity package available for the building in question when compared to the Premises, escalationthe creditworthiness of the Tenant, termall concessions which are being offered to renewal tenants as new tenant improvements, size, expense stop, tenant allowance, existing tenant finishes, parking availability, size and location of the space and proximity the rate shall specifically exclude amounts previously attributed to servicesTenant’s original Tenant Improvements (collectively the “Market Rate”). Within Upon receiving notice of Tenant’s intent to extend the term of the Lease for the second Renewal Option, Landlord shall notify Tenant in writing of its determination of Market Rate. In the event Tenant rejects Landlord’s determination of the Market Rate, Tenant shall include with its notice of rejection, Tenant’s determination of Market Rate. Landlord and Tenant shall then negotiate in good faith for thirty (30) days of Option Notice, Tenant shall notify Landlord following the delivery of Tenant’s option of Fair notice to Landlord in an attempt to reach an agreement as to the Market Rate for Rate. If, however, Landlord and Tenant are unable to reach an agreement as to the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord then Tenant shall notify Tenant of Landlord’s opinion of Fair Market Rate have the option within fifteen five (155) days after receipt following the end of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within such thirty (30) day period to (1) revoke its election to extend the term for the second Renewal Option period of this Lease, or (2) to request non-binding mediation. In the event that Tenant shall revoke its notice to extend the term of this Lease, the Lease shall expire per its terms. In the event that Tenant shall elect the non-binding mediation, then Landlord and Tenant shall, within ten (10) days thereafter, each designate a qualified real estate professional. The two (2) such appointees shall within five (5) days thereafter, designate a third real estate professional having substantially similar qualifications. After a third real estate professional has been designated in accordance with the above paragraph, then within twenty (20) days after the appointment of the third representative, the group shall present their findings regarding the issues of market terms and conditions to both the Landlord or and Tenant. If, at its sole optionthat time, may terminate this LeaseLandlord and Tenant are in agreement with the mediation group’s findings, effective as then the Lease shall be modified under those terms and conditions. If, at the time of the last day of mediation group’s presentation, no agreement can be reached then, Tenant’s sole option is to cancel the then-current Rental Term. Alternatively, Tenant and Landlord may mutually option to renew or to agree to submit the Landlord’s determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment ProcessRate.
Appears in 1 contract
Samples: Lease (Nanosphere Inc)
OPTION TO RENEW. Provided Tenant an Event of Default is not, and has not been (more than two (2) times), in default under any existence as of the terms and conditions contained hereindate of the Renewal Notice or on the commencement of the Renewal Period, Tenant shall have two the option (2the "Renewal Option") to renew the Term of this Lease for one (1) additional consecutive five (5) year options to renew and extend period (the Rental Term as provided herein (“Option”"Renewal Period"). The Option shall only be exercised by If Tenant delivering desires to exercise the Renewal Option, Tenant must deliver written notice thereof (the "Renewal Notice") to Landlord no earlier not less than the date which is twelve (12) months prior to the scheduled expiration of the Term; otherwise, the Renewal Option will lapse and be deemed forever waived by Tenant. The same terms and conditions that are contained in this Lease will apply during the Renewal Period, except that the Base Rent will be ninety-five percent (95%) the then Prevailing Market Rental Term Rate (as defined on Exhibit J), Landlord will make its determination of the then Prevailing Market Rental Rate and no later send such determination to Tenant not less than the date which is nine ninety (990) months days prior to the expiration commencement of the Rental Term (Renewal Period. Any attempt by Tenant to exercise the “Renewal Option Notice”)by any method, at any time or under any circumstances other than as specifically set forth herein will be null and void and of no force or effect at the sole option and discretion of Landlord. The Base Monthly Rent during In the first year event that Tenant does not agree with Landlord's determination of each extension periods shall be the lesser of: (i) the then current Fair Prevailing Market Rate Rental Rate, then Tenant must notify Landlord within ten (as defined10) for comparable space business days after receipt of Landlord's determination that (a) it rescinds it exercise of the Renewal Option (and the Renewal Option will be deemed waived by Tenant), or (b) that it disputes such determination. In the event Tenant does not notify Landlord of its dispute within the Projectsuch ten (10) business day period, Tenant will be deemed to have accepted Landlord's determination of Prevailing Market Rental Rate. If Tenant does notify Landlord of its dispute within such ten (10) business day period, and (ii) if the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable parties are unable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within resolve such matter within thirty (30) days of Option Noticethe expiration of such ten (10) business day period, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for then either party may request that the applicable renewal period. If Landlord disagrees with Tenant’s opinion matter be resolved by binding arbitration administered and conducted under the Commercial Arbitration Rules of the Fair Market RateAmerican Arbitration Association and pursuant to the provisions of the Illinois Uniform Arbitration Act. The parties agree that the arbitrator must be a real estate professional with at least ten (10) years leasing experience in the leasing of commercial office space in Chicago, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen Illinois. Not less than ten (1510) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If prior to the arbitration hearing, the parties are unable to resolve shall exchange with each other their differences within thirty (30) days thereafterlast, Landlord or Tenant, at its sole option, may terminate this Lease, effective as best determinations of the last day then Prevailing Market Rental Rate. The arbitrator shall be limited to awarding only one or the other of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processtwo amounts submitted.
Appears in 1 contract
Samples: Lease Agreement (Coolsavings Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under of any of the terms and conditions contained hereinhereunder, upon 180 days' prior written notice, Tenant shall have the sole option to extend and renew the Term for up to two (2) additional consecutive periods of five (5) year options years each, upon the same terms and conditions as in this Lease, except Base Rent shall be at the fair market rate to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised mutually agreed by Tenant delivering written notice thereof to Landlord both parties but in no earlier event lower than the date which is twelve (12) months prior to the expiration of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded)prior to the extension. “Fair Market Rate” means the market rate shall mean rental rates for rent chargeable for premises of similar size and quality as the Leased Premises based upon located in the following factors applicable to vicinity of the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal periodPremises. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify and Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties are unable to resolve their differences within thirty agree on the fair market rate, (30unless either party elects not to proceed) days thereaftereach shall appoint (and pay the fees and expenses of) an MAI qualified appraiser with at least ten (10) years experience in similar properties, who shall promptly meet and set the fair market rate. If they are unable to set the fair market rate, the appraisers shall select a third MAI qualified appraiser (with at least ten (10) years relevant experience) whose fees and expenses shall be paid for on an equal basis by Landlord and Tenant and the third appraiser shall select either one or the other fair market rate as set by the first two appraisers and that rate shall be deemed the fair market rate. After the fair market rate has thus been set, either Landlord or Tenant, at its sole option, Tenant may terminate this elect not to proceed with renewal of the Lease, effective as of and thus allow the last day of Term to expire. In order for the then-current Rental Term. Alternativelyrenewal term and the Base Rent to be effective, Tenant an amendment to Lease shall be executed and delivered by and between Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processand Tenant.
Appears in 1 contract
Samples: Assignment and Assumption of Lease (Microage Inc /De/)
OPTION TO RENEW. Provided Tenant that Lessee is not, and has not been (more than two (2) times), in default beyond applicable cure periods under any of the terms and conditions contained hereinof this lease, Tenant Lessee shall have the option to renew this lease for two (2) additional consecutive periods of five (5) year options years each on the same terms and conditions except rent. Base rent for the renewal term shall be at ninety-five percent (95%) of the then market rate for comparable space in Seattle. Lessee agrees to renew and extend the Rental Term as provided herein give Lessor notice if Lessee intends to renew, at least six (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (126) months prior to the expiration of the Rental Term lease term; If Lessor and no later than Lessee are unable to agree as to fair market rate within a thirty day period following Lessee's notice to Lessor of its intent to renew the date which is nine lease, fair market rate shall be determined by appraisal as follows: Within five (95) months prior to days after the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days day period, Lessor and Lessee shall give notice to each other stating the name and address of Option Noticean impartial person to act as appraiser. The appraiser shall be a licensed real estate broker doing business in Seattle, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for Washington and having not less than ten years active experience as a real estate broker in Seattle or an M.A.I. appraiser with commercial property experience in the applicable renewal period. If Landlord disagrees with Tenant’s opinion of Seattle C.B.D. The named appraisers shall, together, determine the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate fair market rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)their appointment. In making such determination the appraisers shall consider the rentals at which leases are being concluded for comparable space in the building in which the premises are located and for comparable space in comparable buildings in Seattle, Washington. If the parties are unable two appraisers shall fail to resolve agree upon fair market rate within fifteen days of their differences within thirty (30) days thereafterappointment, Landlord or Tenant, at its sole option, may terminate this Lease, effective as the appraisers shall appoint a third appraiser similarly impartial and qualified to determine fair market rate. The decision of the last day majority of the then-current Rental Termarbitrators shall control. AlternativelyLessor and Lessee shall each pay the fees of any appraiser appointed by Lessor and Lessee respectively, Tenant and Landlord may mutually agree Lessor and Lessee shall each pay one half of the fees of any third appraiser appointed pursuant to submit the determination provisions of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processthis paragraph.
Appears in 1 contract
Samples: Office Lease (Isilon Systems, Inc.)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than shall have the right to further extend the Term of this Lease for two (2) times)periods of five (5) years each as hereinafter provided, in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive each such five (5) year options renewal period being sometimes herein referred to as a "Renewal Term". The conditions to such renewals shall be as follows:
(a) The Lease shall be in full force and effect and Tenant shall not be in default in the performance of any of the terms, covenants and conditions of the Lease, in respect to which notice of default has been given and has not been or is not being remedied in the time limits specified in the Lease; provided, however, that Landlord shall have the right, at its sole discretion, to waive the non- default condition;
(b) Such Renewal Term shall be on the same terms, covenants and conditions as in this Lease; provided, however, the annual Base Rent for such Renewal Term shall be the fair market Base Rental rate for such space on the date such Renewal Term shall commence in relation to comparable (in quality and location) space located in the relevant market area. The fair market Base Rent of the Leased Premises shall be determined as of the date three hundred sixty (360) days prior to commencement of the Renewal Term in question. If Tenant has properly elected to renew the Term of this Lease, and extend Landlord and Tenant fail to agree at least three hundred thirty (330) days prior to commencement of the Rental applicable Renewal Term as provided herein upon the fair market Base Rent of the Leased Premises, the amount of the fair market Base Rent of the Leased Premises shall be determined by arbitration in accordance with the provisions of paragraph 10, below (“Option”"Arbitration"). The Option fair market Base Rent of the Leased Premises shall only be exercised based upon Tenant's presently contemplated use of the Leased Premises. In no event shall the Base Rent of the Leased Premises for the Renewal Term in question be less than the Base Rent payable by Tenant delivering written notice thereof to Landlord no earlier than under the date which is twelve (12) months Term of this Lease immediately prior to the expiration commencement of the Rental Term and no later than the date which is nine (9) months prior to the expiration of the Rental applicable Renewal Term (the “Option Notice”"Minimum Renewal Rent"). The Base Monthly Rent during If, however, the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within Base Rent determined in accordance with the Projectprovisions of paragraph 10, and (ii) below, is less than the Base Monthly Rent then in effect for Minimum Renewal Rent, Tenant shall have the Leased Premises during option to cancel its election to renew the last month Term; provided, however, that Tenant's option to rescind its exercise of the initial Rental Term (increasing each year thereafter by 3%its option to renew must be -33- exercised, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rentif at all, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within not later than thirty (30) days following Tenant's receipt of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion notice of the Fair Market RateBase Rent;
(c) Tenant shall exercise its right to a Renewal Term, if at all, by notifying Landlord shall notify Tenant in writing of Landlord’s opinion its election to exercise the right to renew the Term of Fair Market Rate within fifteen this Lease no later than three hundred sixty (15360) days after receipt prior to the date of Tenant’s opinion commencement of Fair Market Rate (“Landlord’s Value Notice”)the Renewal Term in question. If the parties are unable to resolve their differences within For a period of thirty (30) days thereafterfollowing the date of notice, Landlord or Tenant, at its sole option, may terminate this Lease, effective as the parties shall make a good faith effort to agree upon the fair market Base Rent of the last day Leased Premises for such Renewal Term. Any agreement reached by the parties with respect to such fair market Base Rent of the then-current Rental TermLeased Premises for such Renewal Term shall be expressed in writing and shall be executed by the parties, and a copy delivered to each of the parties. AlternativelyIn the event that Landlord and Tenant fail to agree within said thirty (30) day time period, Tenant the fair market Base Rent for the Leased Premises for such Renewal Term shall be determined by Arbitration. The arbitrators shall be directed to determine the fair market Base Rent for the Leased Premises as above provided and shall be instructed to make said appraisal independently, without consulting with each other. Upon an established date at an established time, all three (3) arbitrators shall simultaneously submit their determinations as to fair market Base Rent, such determination to be submitted in sealed envelopes and to be opened jointly by Landlord may mutually agree and Tenant. The fair market Base Rent for the Renewal Term shall be determined by averaging the two (2) arbitrators' fair market Base Rent determinations which are closest in amount to submit each other (or if one appraisal is less than one of the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processother appraisals and more than the other appraisal by the same amount, all three appraisals shall be averaged).
Appears in 1 contract
OPTION TO RENEW. Provided Tenant that no Default or Event of Default has occurred and is not, continuing under the Lease to which this Rider relates and that the Lease of the Equipment leased under the Schedule has not been (more earlier terminated, Lessee shall, if so elected in its Renewal Notice, renew the Lease, at the expiration of the term thereof, with respect to all but not less than two (2) times)all of the Equipment leased thereunder, in default under any of on the terms and conditions contained hereinof such Lease, Tenant shall have two (2) additional consecutive five (5) year options for a negotiated renewal term at a periodic rent equal to the Fair Market Rental Value of such Equipment determined at the time of renewal. After giving Lessor the Notice of its intent to renew and extend the Rental Term as provided herein Lease, Lessee shall engage in negotiations with Lessor to determine the periodic rent to be paid during the renewal term. Not less than one hundred eighty (“Option”). The Option 180) days before the Scheduled Expiration Date, Lessee shall only be exercised by Tenant delivering give Lessor written notice thereof of its acceptance of the renewal terms mutually agreed upon during negotiations. Such election shall be effective with respect to Landlord all of the Equipment leased under the Lease. For purposes of this Section, “Fair Market Rental Value” shall be deemed to be an amount equal to the rental, as installed and in use, obtainable in an arms’ length transaction for a complete, erected onshore drilling rig ready and in-place for its intended use and purpose at the drill site (and any implied cost to dismantle, move and re-erect the drilling rig from the drill site shall not be a deduction from value) between a willing and informed lessor and a willing and informed lessee under no earlier than compulsion to lease. If Lessee and Lessor are unable to agree on the date which is twelve Fair Market Rental Value at least one hundred eighty (12180) months days prior to the expiration Scheduled Expiration Date, then an independent appraiser (which appraiser shall be a Senior Accredited Member of the American Society of Appraisers) selected by Lessor and approved by Lessee shall determine Fair Market Rental Term Value, which determination shall be final, binding and no later than conclusive. Lessee shall bear all reasonable costs associated with the date which is nine appraisal. If, at least one hundred eighty (9180) months days prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the ProjectScheduled Expiration Date, Lessee and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”). If the parties Lessor are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as agree on the length of the last day of renewal term (after reasonable negotiations exercised in good faith), Lessee shall provide its Final Notice pursuant to paragraph (a)(ii) above, thereby irrevocably electing to either purchase or return the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” Equipment (as provided in Exhibit “F” – Market Assessment Processabove), and if for any reason Lessee WASHINGTON_DC/#1023.10 fails to timely provide the Final Notice making such election, Lessee shall be deemed to have elected to purchase the Equipment pursuant to paragraph (c) below.
Appears in 1 contract
OPTION TO RENEW. Provided a. Subject to the provisions of Section 53, and provided that Tenant is not, and has not been (more than two (2) times), in default under any Default at the time of Tenant's exercise of the terms and conditions contained hereinOption or at the commencement of the applicable Option Term, as hereinafter defined, Tenant shall have two three (23) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein this Lease (“individually, "Renewal Option”"). The Option Tenant shall only be exercised by Tenant delivering written notice thereof provide to Landlord no earlier than the on a date which is prior to the date that each Renewal Option period would commence (if the Renewal Option is exercised) by not more than fifteen (15) months nor less than twelve (12) months prior a written notice of the exercise of the Renewal Option, time being of the essence. Such notice shall be given in accordance with Section 39 of this Lease. If notification of the exercise of any of the Renewal Options is not so given and received, the Renewal Options granted hereunder shall automatically expire. Base Rent applicable to the expiration of the Rental Term and no later than the date which is nine (9) months prior Premises for each Renewal Option term shall be equal to the expiration greater of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current "Fair Market Rate (Rental" as hereinafter defined) for comparable space within the Project, and (ii) the then current escalated Base Monthly Rent then in effect for Rent. All other terms and conditions of this Lease shall remain the Leased Premises during the last month same, except that that with respect to Tenant's exercise of the initial Rental Term first Renewal Option, there shall be only two (increasing each year thereafter by 3%2) remaining Renewal Options, compounded). “with respect to the exercise of the second Renewal Option, there shall be only one (1) remaining Renewal Option and with respect to the exercise of the third Renewal Option there shall be no further Renewal Option.
b. If the Tenant exercises the Option, the Landlord shall determine Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to servicesRental by using its good faith judgment. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify provide Tenant with written notice of Landlord’s opinion of Fair Market Rate such amount within fifteen (15) days after Tenant exercises its Option. Tenant shall have fifteen (15) days ("Tenant's Review Period") after receipt of Tenant’s opinion Landlord's notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rate Rental, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (“Landlord’s Value Notice”)15) days following Tenant's Review Period ("Outside Agreement Date") then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of New Jersey and who specializes in the field of commercial office space leasing in the Secaucus, New Jersey market, has at least five (5) years of experience and is recognized within the field as being reputable and ethical. If one (1) party does not timely appoint a broker, then the broker appointed by the other party shall promptly appoint a broker for such party. Such two (2) individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the two (2) individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the qualifications described above. If the parties two (2) brokers are unable to resolve their differences agree upon a third (3rd) broker, the third (3rd) broker shall be appointed by the President of the New Jersey Board of Realtors. In the event the New Jersey Board of Realtors is no longer in existence, the third (3rd) broker shall be appointed by the President of its successor organization. If no successor organization is in existence, the third (3rd) broker shall be appointed by the Chief Judge of the Circuit Court of Xxxxxx County, New Jersey. The third (3rd) individual shall within thirty ten (3010) days thereafter, Landlord after his or Tenant, at its sole option, may terminate this Lease, effective as her appointment make a determination of such Fair Market Rental. The third (3rd) individual shall determine which of the last day determinations of the then-current Rental Term. Alternatively, Tenant first two (2) individuals is closest to his own and Landlord may mutually agree to submit the determination that is closest shall be final and binding upon the parties, and such determination may be enforced in any court of competent jurisdiction. Landlord and Tenant shall each bear the cost of its broker and shall share equally the cost of the third (3rd) broker. Upon determination of the base rent payable pursuant to this Section, the parties shall promptly execute an amendment to this Lease stating the rent so determined.
c. The term "Fair Market Rate Rental" shall mean the annual amount per rentable square foot that a willing, comparable renewal tenant using the Premises for a use permitted under this Lease would pay and a willing, comparable landlord of a similar building would accept at arm's length for similar space, giving appropriate consideration to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Process.the following matters:
Appears in 1 contract
Samples: Lease Agreement (Equinix Inc)
OPTION TO RENEW. Provided no event of default shall have occurred and be continuing and this Lease shall still be in effect, Tenant is notshall have the right, and has not been exercisable upon six (more than 6) months prior written notice given prior to the end of the term or the then renewal term as the case may be, to extend the term of this Lease on two (2) times), in default under any of the terms and conditions contained herein, Tenant shall have two (2) additional consecutive occasions for five (5) year options to renew years each under the same terms and extend conditions as herein provided except (a) that the Rental Term fixed rental for each renewal term shall be the fair market rent as provided herein determined (“Option”). The Option shall b) that the rental concession, completion of improvements and other provisions which by their nature relate only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is twelve (12) months prior to the expiration original letting of the Rental Term Premises shall not be a part of this Lease, and no later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during base year for determining Operating Overages under Paragraph 5 hereof shall be the first lease year of each extension periods option term. Fair market rental shall be the lesser of: fixed rental paid by a willing tenant to a willing landlord, neither of whom is compelled to rent for the period of the renewal term, taking into account prevailing concessions or other accommodations then being offered to existing tenants upon renewal of existing leases in comparable buildings, including the Office Building. The fair market rental for each renewal term shall be determined initially by Landlord within thirty (i30) days following timely notice of exercise by Tenant of the then current Fair Market Rate renewal Option. If Tenant shall not contest Landlord's determination of the fair market rental within fifteen (as defined15) days of Landlord's determination, Landlord's determination shall be the fixed rental for comparable space the applicable renewal term. If tenant shall contest Landlord's determination within the Projectaforesaid fifteen (15) day period, Landlord and (ii) Tenant shall each select an appraiser whom together shall agree upon a third appraiser which third appraiser shall establish the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the fair market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within within thirty (30) days of Option Noticeits engagement, Tenant which rental shall notify Landlord of Tenant’s option of Fair Market Rate thereupon be the fixed rental for the applicable renewal periodterm. If In the event either party shall fail to select an appraiser or if the appraisers fail to agree upon a third appraiser, Landlord disagrees with Tenant’s opinion and Tenant hereby authorize the then President of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)New Jersey Charter No. If the parties are unable to resolve their differences within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as 1 of the last day American Institute of Real Estate Appraisers to select an appraiser to act as the third appraiser. Liability for the third appraiser's fees and expense shall be divided equally between Landlord and Tenant; each party shall be solely responsible for the fees and expenses, if any, due from its own appraiser. Notwithstanding anything to the contrary herein, the fixed rental payable monthly for any renewal term shall under no circumstances be less than the fixed rental payable monthly for the final month of the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processpreceding five (5) year term.
Appears in 1 contract
Samples: Lease Agreement (Performance Health Technologies Inc)
OPTION TO RENEW. Provided Tenant is not, and has not been (more than two (2) times), in default under any of the If all terms and conditions contained hereinof this lease have been met and Tenant has not previously been in default of any provision of the Lease, or failed to perform any provision of the lease whether a default has actually been imposed by Landlord, Tenant shall have two (2) additional consecutive five (5) year options the option to renew the Lease for two additional five year periods, once at the conclusion of the initial lease term, and extend once at the Rental Term conclusion of the initial option term at the fair market rental value as provided herein (“Option”)determined by and MAI appraiser, selected by Landlord, and to be agreed upon by both parties. Should the tenant not agree with the fair market rental rate as established by the MAI appraiser, and as presented by Landlord, Tenant at Tenant’s expense may order a second appraisal. If the second appraisal is within 10% of the first appraisal, or higher, the higher of the two fair market rental rates established by the two appraisals will be used. If the appraisals are more than 10% apart on the fair market rental rate, a third appraisal shall be ordered. Landlord and Tenant shall split the costs equally for obtaining third appraisal. Upon receipt of the third appraisal the fair market rental rate will be established by averaging the two highest fair market rental values stated in two of the three appraisals. The Option fair market rental rate valuation shall only not include a premium or excessive rental rate for any specialized improvements made by the tenant, but shall include a fair market rental rate based upon improvements, made either by a Landlord or Tenant, in general warehouse/office distribution facilities. For clarification purposes the current rental rate was established based upon space comparably found in office/warehouse distribution facilities at the time of lease commencement. It would be exercised by Tenant delivering written notice thereof the intent of the parties to establish the fair market value at, either option period, under similar conditions as the initial rental period, utilizing rental rates based upon typical office/warehouse space found in the market at the time of renewal, and not to charge a premium or excess on the fair market rental rate should Shared Communications bring the office space to a Class A or similar standard. Any option period hereby agreed upon or granted shall contain a rental escalation commencing with the fourth year, based upon a CPI escalation as stated above. Said option to extend shall be delivered to Landlord in writing but no earlier later than the date which is twelve (12) months 180 days prior to the expiration of the Rental Term original term. If this lease is renewed, all terms of this Lease shall remain in full force and no later effect except for the revised base rental rate, and term, of this Lease. In any event the base rental rate during said option period shall not be less than the date which is nine (9) months amount equal to the last month’s rent due under the initial term of the lease. If Landlord and Tenant cannot agree upon the fair market rental rate prior to the expiration commencement of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Projectoption term, and (ii) Tenant still occupies the Base Monthly Rent then in effect for premises, the Leased Premises during base rental rate at the commencement of the option term shall not be less than the last month of monthly stated rent in the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, original term, sizeor option term, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days of Option Notice, Tenant shall notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market Rate, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within fifteen (15) days after receipt of Tenant’s opinion of Fair Market Rate (“Landlord’s Value Notice”)thereof whichever is greater. If the parties are unable cannot agree on the base rent to resolve their differences be paid during the option period within thirty (30) days thereafter, Landlord or Tenant, at its sole option, may terminate this Lease, effective as six months form the expiration date of the last day initial term of this lease, said lease shall thereby terminate and tenant shall vacate the then-current Rental Term. Alternatively, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processpremises.
Appears in 1 contract
OPTION TO RENEW. Provided Tenant is notin possession of the Premises and is not then in default of any term, covenant or condition of this Lease beyond any applicable notice and has cure period, Tenant shall have the option to renew the Term of this Lease for one (1) additional period of five (5) years ("Renewal Term") to commence immediately upon the expiration of the initial Term, upon the same terms, convenants and conditions as contained in this Lease, except that (i) the Annual Basic Rent during said Renewal Term shall be at the "Prevailing Market Rate" and (ii) there shall be no further option to renew except as specifically provided herein and (iii) Landlord shall not been (be obligated to construct, pay for or grant an allowance with respect to tenant improvements unless otherwise specifically provided for in this Lease or negotiated at the time Tenant exercises such option. "Prevailing Market Rate" shall mean the current market rental rate for the Premises as determined by Landlord or for similar space in comparable first-class office buildings in the Inner Harbor/Xxxxx Street area, but shall not be more than two (2) times), the rate at which Landlord would offer such space or space of approximately the same size and location to a third party in default under any of a bona fide arm's length transaction. In order to exercise the terms and conditions contained option granted herein, Tenant shall have two (2) additional consecutive five (5) year options to renew and extend the Rental Term as provided herein (“Option”). The Option shall only be exercised by Tenant delivering written notice thereof to Landlord no earlier than the date which is notify Landlord, in writing, not less then twelve (12) months prior to the expiration of the Rental Term and no initial Term, that it is considering exercising its option to renew the Term. On receipt of such notice, Landlord will, in writing, not later than the date which is nine (9) months prior to the expiration of the Rental Term (the “Option Notice”). The Base Monthly Rent during the first year of each extension periods shall be the lesser of: (i) the then current Fair Market Rate (as defined) for comparable space within the Project, and (ii) the Base Monthly Rent then in effect for the Leased Premises during the last month of the initial Rental Term (increasing each year thereafter by 3%, compounded). “Fair Market Rate” means the market rate for rent chargeable for the Leased Premises based upon the following factors applicable to the Leased Premises or any comparable premises: rent, escalation, term, size, expense stop, tenant allowance, existing tenant finishes, parking availability, and location and proximity to services. Within thirty (30) days after receipt of Option Noticethe notice from Tenant, quote to Tenant what the new Annual Basic Rent will be for the ensuing Renewal Term. Tenant shall then notify Landlord of Tenant’s option of Fair Market Rate for the applicable renewal period. If Landlord disagrees with Tenant’s opinion of the Fair Market RateLandlord, Landlord shall notify Tenant of Landlord’s opinion of Fair Market Rate within in writing, not later than fifteen (15) days after receipt notice received of Tenant’s opinion such Annual Basic Rent, as to whether or not it will exercise the option herein granted and if no such notice of Fair Market Rate (“Landlord’s Value Notice”)exercise of the option is received, the option shall be deemed waived. If In the parties are unable to resolve their differences within thirty (30) days thereafterevent Tenant exercises the option, Landlord or Tenantand Tenant shall execute a modification to this Lease acknowledging such renewal and setting forth the new Annual Basic Rent. The option shall be void if, at its sole the time of exercise of such option, may terminate . Tenant is not in possession of the Premises (unless Landlord has consented to a subletting of the Premises or an assignment of this Lease) or is in default under this Lease or if Tenant fails to deliver the requisite notice thereof within the time period specified above. The option granted herein shall not be severed from this Lease, effective as of the last day of the then-current Rental Term. Alternativelyseparately sold, Tenant and Landlord may mutually agree to submit the determination of Fair Market Rate to a “Market Assessment Process,” as provided in Exhibit “F” – Market Assessment Processassigned or transferred.
Appears in 1 contract