Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 6 contracts
Samples: Lease Agreement (Formfactor Inc), Lease Agreement (Formfactor Inc), Lease Agreement (Formfactor Inc)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option right and option, but not an obligation, to extend the initial lease term renew this Lease for four two (42) additional, successive additional terms of five (5) years each (each, an "OPTION TERM"a “Renewal Term”). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence ; provided that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain is in full force and effect during immediately prior to the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year date of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Renewal Term and that Tenant is not in default under any of the provisions of this Lease at the time Tenant exercises its option to renew or at the time the applicable Renewal Term is scheduled to commence and Tenant shall have no further renewal rights. During each Renewal Term, for premises comparable all of the terms, covenants, conditions and limitations set forth in sizethis Lease shall be, quality and location remain, in comparable class R&D/Office buildings throughout full force and effect, except that the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent due hereunder for the Option first year of the applicable Renewal Term shall be determined prior adjusted to the commencement then-prevailing market rate for similar size and use properties within a five (5) mile radius of the Premises (the “Market Rate”); provided, in no event shall the Base Rent determined from the Market Rate for the first year of the applicable Option Renewal Term decrease from the Base Rent paid during the immediately preceding twelve (12) –month period; provided further, that after the Market Rate is determined and agreed to, the Base Rent shall increase by two-percent (2%) per annum for each subsequent year of the applicable Renewal Term. If Tenant elects to exercise its option to renew, it must do so by delivery of written Notice of the exercise thereof (the “Renewal Notice”) to Landlord no later than one hundred twenty (120) days prior to expiration of the Term (or Renewal Term, as applicable). Following delivery of the Renewal Notice, the Parties shall promptly, but in no event later than ten (10) days following delivery of the following manner: If Landlord and Tenant are unable to Renewal Notice, commence good faith discussions regarding the Market Rate for the applicable Renewal Term. In the event that despite such good faith discussions, the Parties cannot agree on the market rent Market Rate for the applicable Renewal Term within sixty (60) days after Tenant gives notice of its exercise following delivery of the Option TermRenewal Notice, then Tenant shall have may, in its sole and absolute discretion, rescind the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease Renewal Notice and the Lease shall terminate at the end of the initial termelection to exercise its option to renew without any liability or obligation to Landlord, its employees, officers, agents or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldlenders.
Appears in 5 contracts
Samples: Commercial Lease Agreement (CONX Corp.), Purchase and Sale Agreement (CONX Corp.), Commercial Lease Agreement (CONX Corp.)
Options to Renew. Provided that no Event Tenant is not in default of Default by Tenant under this Lease exists as any of the date of exercise terms or conditions of the Lease beyond the applicable option or notice and cure period at the time of exercise, Tenant is granted two (2) successive options (each, an “Option Term”, collectively, the “Option Terms”, and successively the “First Option Term” and the “Second Option Term”) to extend the term of the Lease following the initial Term and then following the First Option Term if so exercised, upon the following terms and conditions. Each Option Term shall be for five years. The Tenant shall deliver written notice of its intent to exercise each Option Term, delivering such written notice to Landlord prior to but not after the date which is 365 days prior to the expiration of the initial term or preceding Term (as to the First Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have ) or 365 days prior to the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice expiration of the exercise First Option Term (for the Second Option Term), but no sooner earlier than the date which is fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option then current Term. Subject to the conditions herein expressed, as applicable. Tenant's right delivery of the written notice of the intent to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the then applicable Option Term. All terms, provisions, conditions and covenants of this Lease Term shall remain in full force and effect during irrevocably commit the Tenant to the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT")so exercised. Base Rent for the Each Option Term shall be determined prior subject to all the terms, covenants and conditions of the Lease, except as modified by this provision (meaning, no further options will be re-imposed, subject only to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Second Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable). If Tenant does not revoke its so exercise any such Option Term in the time and elects to proceed with manner herein provided, time being strictly of the determination essence, any and all of market rent, then Tenant’s option rights for the monthly Option Term at bar (and any otherwise succeeding Option Term) shall irrevocably be deemed waived. The Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent monthly installments thereof for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration year of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional as specified on the attached Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controlsSchedule, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldif exercised.
Appears in 4 contracts
Samples: Lease Agreement (Power REIT), Lease Agreement (Power REIT), Lease Agreement (Power REIT)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option two (2) consecutive options to extend the initial lease term of the Lease (each, a “Renewal Option”) for four (4) additional, successive terms periods of five (5) years each (each, an "OPTION TERM"a “Renewal Term”). , except that, if Tenant leases more than 405,000 rentable square feet of space as of the end of the initial Lease term, then Tenant shall exercise the optioninstead have only one (1) Renewal Option for a Renewal Term of ten (10) years. A Renewal Option must be exercised, if at all, by delivering written notice given by Tenant to Landlord written notice of the exercise no sooner than fifteen (15) months nor not later than twelve (12) months prior to the expiration of the initial then-current Lease Term or preceding Option Termterm. At Landlord’s option, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods right to renew the Lease, and the Base Rent payable during the first Lease Year Tenant’s exercise of each Option Term (and for increases during the Option Terma renewal potion shall be void, if, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout date the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement term of the applicable Option Term in renewal term is to commence, the following manner: If Landlord and original Tenant are unable named herein (and/or an Affiliate or Affiliates thereof to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise which this Lease has been assigned or portions of the Option Term, then Tenant shall Premises have the right to revoke its exercise been sublet in accordance with Paragraph 13.h. above) is not in occupancy of the option by delivering written notice within ten (10) days following the expiration of such 60at least seventy-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten five percent (1075%) of the lower estimatePremises. At Tenant’s option, Tenant may exercise a Renewal Option pursuant to the foregoing for less than the entire Premises then covered by the monthly Base Rent Lease (with the portion of the Premises to be paid covered by Tenant during the Renewal Option Term shall being referred to hereinafter in this Paragraph 60 as the “Renewal Premises”), provided that (i) the Renewal Premises must consist of not less than 135,000 rentable square feet of space and be comprised of space on contiguous floors, (ii) the average portions of the amounts Premises that are not included in the Renewal Premises must be of a size and configuration that are, as reasonably determined by Landlord, leasable to third parties (e.g., the appraisersremaining space must be of adequate size, have an adequate number of exterior windows, have satisfactory elevator exposure and otherwise be reasonably configured) and (iii) Tenant (and/or an Affiliate or Affiliates thereof to which this Lease has been assigned or portions of the Premises have been sublet in accordance with Paragraph 13.h. If the difference between the two estimates exceeds ten above) must occupy and be conducting business in at least seventy five percent (1075%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1Renewal Premises. Notwithstanding the aboveforegoing, the Base Rent payable by Tenant during each Option Term at Landlord’s election, a renewal option shall be in addition null and void and Tenant shall have no right to all Additional Rent and other sums and charges payable by renew this Lease if on the date Tenant under exercises the terms renewal option or on the date immediately preceding the commencement date of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with renewal period there exists an assignment uncured Event of Default or a breach of this Lease except in connection with that subsequently matures into an assignment Event of Default due to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor Tenant’s failure to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldcure the breach within the applicable notice and cure period.
Appears in 2 contracts
Samples: Office Lease (Twitter, Inc.), Office Lease (Twitter, Inc.)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Termis not, and provided further that Tenant has not assigned been, in default of any of its obligations under this Lease, Tenant it shall have three (3) options to renew this Lease for the option to extend the initial lease Premises in "as-is" condition for a term for four (4) additional, successive terms of five (5) years each (eachon the same terms and conditions as set forth in this Lease except that the monthly base rent during the first option period will be $48,796.00. The monthly base rent for the second and third option periods shall be at current market rent, an "OPTION TERM")as determined by Landlord. In no event will the monthly rental be less than the rental for the last month of the previous term. To exercise the first option period, Tenant shall exercise the option, if at all, by delivering to give Landlord written notice of the to exercise no sooner than fifteen (15) months nor later than twelve (12) months its option at least 180 days prior to the expiration of the initial Lease Term or preceding Option Termcurrent lease term. To exercise the second and third option terms, as applicable. Tenant's right Tenant shall give Landlord written notice to exercise each its options at least 180 days prior to the expiration of the then current lease term. Within 15 days after Tenant exercises its option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgmentrenew, Landlord may refuse to accept Tenant's exercise unless will provide Tenant agrees to provide a new Letter(s) with the current market rent for the first five years of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Termrenewal term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year 45 days from notification by Landlord of each Option Term (and for increases during the Option Term, as applicable) shall be the renewal rent to accept Landlord's market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicablerent. If Tenant does not revoke its exercise and elects to proceed with accept Landlord's rental figure within the determination of market rent45 day period, then the monthly Base Rent and Additional Rent payable during the Option Term this option shall be determined null and void. Landlord shall have no further obligation to Tenant and Landlord may enter into leases with a third party. Notwithstanding anything to the contrary herein contained, Tenaxx'x xight to extend the term by appraisal in exercise of any of the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below foregoing options shall be conditioned upon the Base Rent for following: (i) at the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration time of the sixty (60) day period aforesaidexercise of the option, and if one at the time of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees commencement of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the abovesuch extended term, the Base Rent payable by Tenant during each Option Term shall be in addition possession of and occupying the Premises for the conduct of its business therein and the same shall not be occupied by any assignee, subtenant or licensee, the option to all Additional Rent extend being applicable hereunder only with respect to so much of the Premises as is actually occupied by Tenant, and other sums and charges payable (ii) the notice of exercise shall constitute a representation by Tenant under to Landlord effective as of the terms date of this Lease. the exercise and as of the date of commencement of the extended term, that Tenant acknowledges that does not intend to seek to assign the options granted herein are personal Lease in whole or in part, or sublet all or any portion of the Premises, the election to Tenant and may not be assigned with an assignment extend the term being for purposes of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of utilizing the Premises for Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldpurposes in the conduct of Tenaxx'x xusiness therein.
Appears in 2 contracts
Samples: Lease Agreement (Intracel Corp), Lease Agreement (Intracel Corp)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, (a) Tenant shall have the option to extend the initial lease term renew this Lease for four (4) additional, successive terms of an additional five (5) years each year period (eachthe "First Renewal Term") at the end of the initial Lease Term, and the option to renew for an additional five (5) year period at the end of the First Renewal Term (the "OPTION TERMSecond Renewal Term"). Each renewal shall be on the same terms as provided herein except that the base rental during each such renewal term shall be equal to the greater of (a) 95% of the "Fair Market Rental Value" of the Building, as determined as of the first day of such renewal term pursuant to subparagraph (b) below; or (b) the rental for the immediately preceding term of the Lease. To be effective, each such option must be exercised by written notice from Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor not later than twelve (12) six months prior to the expiration end of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice then current term.
(b) In determining the Fair Market Rental Value of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgmentBuilding, Landlord may refuse to accept Tenant's exercise unless shall first inform Tenant agrees to provide of a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market proposed rental rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration after receipt of such 60-day period. In the event Tenant's notice of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicableTenant's renewal option. If Tenant does not revoke its exercise and elects to proceed agree with the determination of market rentproposed rental rate, then at Tenant's expense, the monthly Base Rent and Additional Rent payable during Fair Market Rental Value of the Option Term Building shall be determined by an appraisal in done by a Member of the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within Appraisal Institute ("Institute") with no less than ten (10) years' experience in the Memphis, Tennessee metropolitan area, the arrangements for which must be made by Tenant and which must be completed within forty-five (45) days following after receipt of Landlord's proposed rental rate ("Tenants Renewal Appraisal"). In the expiration of the sixty (60) day period aforesaid, and if one of the parties event that Landlord does not appoint agree with Tenant's Renewal Appraisal, then Landlord may, at Landlord's expense, obtain another appraisal from an appraiser Institute member, with no less than ten (10) years' experience in the Memphis, Tennessee metropolitan area ("Landlord's Renewal Appraisal") which must be completed, within forty-five (45) days of receipt of Tenant's Renewal Appraisal. In the event that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so rental rates determined is within by Tenant's Renewal Appraisal and Landlord's Renewal Appraisal differ by less than ten percent (10%) of ), the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term Fair Market Rental Rate shall be the average of the amounts two rental rates determined by Tenant's Renewal Appraisal and Landlord's Renewal Appraisal. In the event that the two rental rates determined by Tenant's Renewal Appraisal and Landlord's Renewal Appraisal differ by greater than 10%, the appraisers designated by Landlord and Tenant shall within twenty (20) days designate a third Institute member to make a third appraisal. The Fair Market Rental Rate as determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) appraisal of the lower onethird Institute member shall then be averaged with either Tenant's Renewal Appraisal or Landlord's Renewal Appraisal, whichever shall be closest to the appraisal of the third Institute member and the results of said averaging shall be binding on the parties. Tenant's Renewal Appraisal and Landlord's Renewal Appraisal as well as the appraisal of the third Institute member (if applicable) shall be based upon the rental rates then being charged for similar buildings in the immediate area and shall take into consideration all relevant factors including without limitation, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average age of the two closest appraisals shall Building, term of the renewal and the fact that Landlord will not be set incurring concessions, if any, then being offered in the Market such as the monthly Base Rentrent abatement and improvement allowances. Each party shall pay bear the fees expense of the appraiser appointed designated by such party it with the expense of the third appraiser being shared equally by the parties.
(c) if Tenant is in material default under any of the terms, covenants or conditions of the Lease after notice and the parties will share equally expiration of the fees applicable grace periods on the date of any third appraiser appointed pursuant giving the option notice or the date the Renewal Term(s) is to this Section A-2.1. Notwithstanding the abovecommence, the Base Rent payable by Tenant during each Option Term Renewal Term(s) in question shall be in addition to all Additional Rent not commence and other sums and charges payable by Tenant under the terms Lease shall expire at the end of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldthen existing term.
Appears in 2 contracts
Samples: Lease Agreement (Genesis Direct Inc), Lease Agreement (Genesis Direct Inc)
Options to Renew. Provided that no Event (i) this Lease is in full force and effect, (ii) Tenant or its permitted successors or assigns, if any, is in possession of Default by the Property, and (iii) Tenant is not in default of its duties and obligations under this Lease exists as of beyond any applicable grace or notice and cure periods under the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the one (1) option to extend the initial lease renew this Lease, for a term for four of three (4) additional, successive terms of five (53) years each (each, an "OPTION TERMRenewal Term"). Tenant shall exercise the option, if at all, by delivering must notify Landlord of its intent to Landlord written notice of the exercise no sooner than fifteen (15) months nor renew in writing not later than twelve one hundred eighty (12180) months days prior to the expiration of the initial Lease Term or preceding Option Term, as applicablethen current term. Tenant's failure to deliver the notice of exercise prior to such deadline shall be deemed to be a waiver by Tenant of its right to exercise each option renew the term of this Lease, time being of the essence. All terms and conditions of this Lease shall be conditioned upon Tenant delivering applicable during any Renewal Term except that the amount of Base Rent charged for the Renewal Term shall be the then "Prevailing Market Rent," which shall be the rent for properties comparable to Landlord with the Property in the Naples, Florida area; provided, however, that in no event shall the Prevailing Market Rent be deemed to be less than the Base Rent payable under this Lease during the lease year immediately preceding the first lease year of the Renewal Term. If within thirty (30) days following delivery of Tenant's notice of exercisehis intent to renew, current financial reports which evidence that Tenant's financial condition Landlord and Tenant have not mutually agreed on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Prevailing Market Rent for the Option Term shall be determined prior to the commencement of the applicable Option Renewal Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Termquestion, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following after the expiration of such 60thirty-day period. In the event of such revocation, Tenant each party shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving give written notice to the other partysetting forth the name and address of a Broker (as hereinafter defined) selected by such party who has agreed to act in such capacity, to determine the Prevailing Market Rent. If either party shall appoint fail to select a Broker as an appraiser an experienced commercial real estate agent in aforesaid, the area in which the Premises are located. Said appointment Prevailing Market Rent shall be made determined by the Broker selected by the other party. Each Broker shall thereupon independently make his determination of the Prevailing Market Rent within twenty (20) days after appointment of the second Broker. If the two Brokers' determinations are not the same, but the higher of such two values is not more than one hundred ten percent (110%) of the lower of them, then the Prevailing Market Rent shall be deemed to be the average of the two values. If the higher of such two values is more than one hundred ten percent (110%) of the lower of them, then the two Brokers shall jointly appoint a third Broker within ten (10) days following after the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher second of the two estimates so determined is within ten percent (10%) determinations described above has been rendered. The third Broker shall independently make his determination of the lower estimatePrevailing Market Rent within twenty (20) days after his appointment. The highest and the lowest determinations of value among the three Brokers shall be disregarded and the remaining determination shall be deemed to be the Prevailing Market Rent. Within thirty (30) days after the Prevailing Market Rent is determined as aforesaid, then the monthly parties shall execute an amendment to this Lease setting forth the new Base Rent to be paid by Tenant during for the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base RentRenewal Term. Each party shall pay be responsible for the fees of and expenses charged by the appraiser appointed Broker engaged by such party it, and the parties will shall share equally the fees of any and expenses charged by the third appraiser appointed pursuant to this Section A-2.1Broker, if any. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition required to exercise its option to renew with respect to all Additional Rent (and other sums and charges payable by Tenant not less than all) of the Property then under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldunless otherwise mutually agreed upon.
Appears in 2 contracts
Samples: Lease Agreement (Argan Inc), Lease Agreement (Argan Inc)
Options to Renew. Provided that no Event of Default by Tenant under this As long as the Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect and Tenant either at the time of the exercise of the Option or at the following described Option period(s): (i) is occupying and doing business from the Premises at the time the election is exercised; and (ii) is not in default under the Lease at the time of the election; and (iii) has maintained a history of payments within the applicable grace period, if any, provided under the Lease; Tenant is hereby granted the option to renew this Lease for 2 successive renewal terms(s), commencing upon the day next following the expiration of the then current lease term. Each option period shall be for a term of 5 years (the “Extension Period”). The terms of this Lease during the Option TermsPeriods shall be the same as during the current Lease period, except as provided that below. Tenant shall deliver written notice to Landlord of Tenant’s desire to extend the Lease term as provided herein no later than 180 days prior to the termination date of each lease term. The annual Basic Rent as defined in the Lease during each Extension Period shall be at the then prevailing market rate for comparable space. Upon receipt of such notice, Landlord and Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable 30 days to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right rate for annual Basic Rent to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable be charged during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Termextension period. If the parties cannot agree on are unable to reach agreement within 30 days after Landlord receives Tenant's Notice, Landlord and Tenant shall, within 40 days after the date Landlord receives Tenant's Notice, each appoint a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced broker ("Landlord's Rent Broker" and "Tenant's Rent Broker," respectively) who is knowledgeable in commercial real estate agent property values in the area in which the Premises are locatedlocated and is not an employee or affiliate of either Landlord or Tenant. Said appointment Landlord's Rent Broker and Tenant's Rent Broker shall be made attempt to agree upon the market rental rate applicable to the Premises. If Landlord's Rent Broker and Tenant's Rent Broker are unable to reach agreement within ten 70 days after the date of Landlord's receipt of Tenant's Notice, they shall, within 80 days after the date of Landlord's receipt of Tenant's Notice, appoint an additional Rent Broker (10"Additional Rent Broker") with the same qualifications and, within 15 days following the expiration after such appointment, each of Landlord's Rent Broker and Tenant's Rent Broker will submit their respective written reports of the sixty (60) day period aforesaid, and if one of market rental rate applicable to the parties does not appoint an appraiser within that timePremises to the Additional Rent Broker. Within 10 days thereafter, the single appraiser named Additional Rent Broker shall be the sole appraiser and shall set the monthly Base determine annual Basic Rent for the Option Termextended term, which will be the rate proposed by Landlord's Rent Broker or the rate proposed by Tenant's Rent Broker. If If, within 80 days after Landlord' s receipt of Tenant's Notice, Landlord's Rent Broker and Tenant's Rent Broker do not agree upon and designate the two appraisers are appointed as provided hereinAdditional Rent Broker, each shall independently prepare an estimate either Landlord or Tenant may request that the local office of the market rent within sixty American Arbitration Association (60) days. If or, if such organization or its successor shall no longer be in existence, a recognized national arbitration association mutually satisfactory to both parties), designate the higher of Additional Rent Broker, and the two estimates Additional Rent Broker so determined is within ten percent (10%) of designated shall, for all purposes, have the lower estimate, then same standing and powers as though the monthly Base Additional Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser Broker had been initially appointed by such party Landlord's Rent Broker and Tenant's Rent Broker. Landlord and Tenant shall each bear the parties will cost of its Rent Broker and shall share equally the fees cost of any third appraiser appointed pursuant the Additional Rent Broker. Upon determination of the new annual Basic Rent, Landlord and Tenant will execute an amendment to this Section A-2.1. Notwithstanding Lease so confirming the above, extension of the Base Lease and the new Basic Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldsoon as practicable.
Appears in 2 contracts
Samples: Lease Agreement (Solera National Bancorp, Inc.), Lease Agreement (Solera National Bancorp, Inc.)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of (a) Subject to the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leaseconditions hereinafter set forth, Tenant shall have is hereby granted options (individually, a “Renewal Option” and, collectively, the option “Renewal Options”) to extend renew the initial lease term Term with respect to all, or any portion of, the Leased Premises as then demised hereunder for four six (46) additional, successive terms periods of five (5) years each (eachindividually, an "OPTION TERM"a “Renewal Term” and collectively the “Renewal Terms”); provided that the Term shall not extend, for any portion of the Leased Premises, beyond the Outside Expiration Date.
(b) The first Renewal Term (if the first Renewal Option is exercised) shall commence at the expiration of the Initial Term, and each subsequent Renewal Term (if the pertinent Renewal Option is exercised) shall commence at the expiration of the immediately preceding Renewal Term. Tenant shall exercise the optioneach of its Renewal Options, if at all, by delivering notice of such exercise to Landlord written notice of the exercise no sooner than fifteen (15each, a “Tenant’s Renewal Notice”) months nor not later than twelve (12) months prior to the then current expiration of the initial Term. In any case that Tenant exercises a Renewal Option with respect to less than all of the Leased Premises as then demised hereunder, Tenant shall identify the portion(s) of the Leased Premises with respect to which the Renewal Option is being exercised. IN ORDER TO PREVENT TENANT’S INADVERTENT FORFEITURE OF ANY THEN REMAINING RENEWAL OPTION, IF TENANT SHALL FAIL TO TIMELY EXERCISE ANY AVAILABLE RENEWAL OPTION, TENANT’S RIGHT TO EXERCISE SUCH RENEWAL OPTION SHALL NOT LAPSE UNTIL LANDLORD SHALL DELIVER TO TENANT WRITTEN NOTICE THAT SUCH NOTICE OF EXERCISE HAS NOT BEEN DELIVERED AND TENANT SHALL THEREAFTER FAIL TO EXERCISE SUCH RENEWAL OPTION WITHIN TEN (10) BUSINESS DAYS FOLLOWING THE DELIVERY OF SUCH NOTICE.
(c) Tenant’s leasing of the Leased Premises during any Renewal Term shall be upon all the then executory terms and conditions of this Lease (as applicable prior to such Renewal Term), except as follows:
(1) The Annual Basic Rent Factor for each Renewal Term shall be equal to the Fair Market Rental Value Per RSF of the Base Leased Premises for the Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided); provided, however, that:
(A) if, as of the commencement of such Renewal Term, both (i) Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has not ended, then the Annual Basic Rent Factor for such Renewal Term shall be adjusted as provided in Section 2 of the Master Agreement, as applicable;
(B) if, as of the commencement of such Renewal Term, the Tenant hereunder is not a Wachovia Party (whether or not the Integration Period has ended), then the Annual Basic Rent Factor for such Renewal Term shall not exceed a rate equal to 110% of the Annual Basic Rent Factor on the last day of the Initial Term or immediately preceding Option Renewal Term, as applicable. Tenant's right ; and
(C) if, as of the commencement of such Renewal Term, (i) the Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has ended, then the Annual Basic Rent Factor for such Renewal Term shall not exceed the following: (x) in the case of the first Renewal Term, a rate equal to exercise 110% of the Annual Basic Rent Factor on the last day of the Initial Term; and (y) in the case of each option subsequent Renewal Term, a rate equal to 105% of the Annual Basic Rent Factor for the immediately preceding Renewal Term.
(2) The STAS Basic Rental Factor for each Short-Term Additional Space for each Renewal Term shall be conditioned upon equal to the Fair Market Rental Value Per RSF of such Short-Term Additional Space for such Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided).
(d) Within thirty (30) days following the Renewal Option Notice Date with respect to any Renewal Option, Landlord shall deliver to Tenant, a proposal setting forth Landlord’s determination of the Fair Market Rental Value Per RSF for the Leased Premises for the pertinent Renewal Term (which, if the Leased Premises as to which such Renewal Option is exercised includes any Short-Term Additional Space, then such determination shall include separate components for the Fair Market Rental Value Per RSF for the Base Leased Premises, and the Fair Market Rental Value Per RSF of the Short-Term Additional Space). Thereafter, and until the delivery of a Renewal Appraisal Notice, Landlord and Tenant delivering shall endeavor to reach agreement as to the Fair Market Rental Value Per RSF of the Leased Premises for the pertinent Renewal Term (and, as applicable, each component thereof).
(e) If Landlord and Tenant are unable to reach a definitive agreement as to the Fair Market Rental Value Per RSF for Leased Premises for any Renewal Term within sixty (60) days following the Renewal Option Notice Date, then either Landlord or Tenant, by written notice thereof to the other party (herein called a “Renewal Appraisal Notice”), may cause such Fair Market Rental Value Per RSF to be submitted for resolution in accordance with the following provisions of this Section 1.4(e):
(1) Within thirty (30) days after delivery of the Renewal Appraisal Notice, Landlord and Tenant shall each select and engage an Appraiser to determine such Fair Market Rental Value Per RSF. If either party fails to select and engage an Appraiser within such time, and if such failure continues for more than five (5) Business Days following such party’s receipt of written notice that states in all capital letters (or other prominent display) that such party has failed to select an Appraiser as required under the Lease and will be deemed to have waived certain rights granted to it under the Lease unless it selects an Appraiser within five (5) Business Days, then the Appraiser engaged by the other party shall select the second Appraiser.
(2) Within thirty (30) days following the date on which the second Appraiser is selected, (i) each Appraiser shall prepare a sealed determination of the such Fair Market Rental Value Per RSF, (ii) the Appraisers, together with Landlord and Tenant, shall arrange a meeting at the Property during Building Operating Hours (or at such other place and time as is reasonably acceptable to both Appraisers, Landlord and Tenant) for the purpose of distributing such sealed determinations, and (iii) at such meeting, the Appraisers shall each simultaneously present their determinations of such Fair Market Rental Value Per RSF, to the other Appraiser and to Landlord and Tenant. If the higher of the two determinations of such Fair Market Rental Value Per RSF does not exceed one hundred five percent (105%) of the lower of the two determinations of such Fair Market Rental Value Per RSF, then the average of the two (2) determinations shall be such Fair Market Rental Value Per RSF (and the same shall constitute the final determination thereof). If the higher of the two determinations of such Fair Market Rental Value Per RSF exceeds 105% of the lower of the two determinations of such Fair Market Rental Value Per RSF, then within five (5) Business Day after receipt by Landlord and Tenant of both appraisal reports, the Appraisers selected by Landlord and Tenant shall agree on a third Appraiser (the “Third Appraiser”) to make a determination of such Fair Market Rental Value Per RSF. The Third Appraiser shall not make an independent determination, but shall, within ten (10) Business Days after his or her designation, select one (1) of the two (2) determinations already made, whichever of the two determinations the Third Appraiser determines to be closest to such Fair Market Rental Value Per RSF, as the controlling determination with Tenant's notice respect to such Fair Market Rental Value Per RSF. The decision of exercisethe Third Appraiser shall be conclusive and binding; and such Fair Market Rental Value Per RSF shall be as set forth in such controlling determination (which shall constitute the final determination thereof). Each party shall pay the costs of its Appraiser and one-half (1/2) of the cost of the Third Appraiser.
(3) The instructions to the Appraisers with respect to the determination of such Fair Market Rental Value Per RSF will be to determine the same solely in accordance with the definition Fair Market Rental Value Per RSF as set forth in this Lease (including the criteria and assumptions set forth therein). The Appraisers shall have no authority to alter any provisions of such definition, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution any other provisions of this Lease.
(4) Within thirty (30) days following the final determination of such Fair Market Rental Value Per RSF, Tenant shall elect one (1) of the following options by written notice to Landlord: (A) to revoke the exercise of the pertinent Renewal Option, in which event, the Term shall automatically, and without further action of Landlord or Tenant, expire on the later of (1) the expiration of the Initial Term (or, if applicable, the expiration of the Renewal Term with respect to the immediately preceding Renewal Option) or (2) the last day of the calendar month that is six (6) months following the month in which Tenant’s notice of revocation was given to Landlord; or (B) to ratify its exercise of the pertinent Renewal Option. If Tenant's financial condition has declined in Landlord's business judgmentTenant fails to exercise either of the foregoing options within such thirty (30) day period, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that then Tenant shall be deemed to have no additional elected option periods (B). If Tenant elects (or is deemed to have elected) option (B), then Tenant thereby shall have irrevocably exercised the pertinent Renewal Option and Tenant may not thereafter withdraw the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement exercise of the applicable Option Term, Renewal Option.
(5) If the Fair Market Rental Value Per RSF of the Leased Premises for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option any Renewal Term shall be not have been final determined prior to the commencement of the applicable Option Renewal Term in (and, accordingly, the following manner: If Landlord actual Annual Basic Rent therefor is not finally known as of the commencement of such Renewal Term), then (i) for the period commencing on such first day of such Renewal Term and Tenant are unable to agree ending on the market rent date that such Fair Market Rental Value Per RSF is finally determined, Tenant shall make payments, on account of the Annual Basic Rent for such Renewal Term (as and when Annual Basic Rent is payable under this Lease) based upon the Annual Basic Rent Factor in effect immediately prior to such Renewal Term, and, for any Short-Term Additional Space, the STAS Basic Rental Factor in effect immediately prior to such Renewal Term, and (ii) upon such Fair Market Rental Value Per RSF being finally determined, such payments on account of Annual Basic Rent shall be reconciled with the actual Annual Basic Rent, and, within sixty thirty (6030) days after such final determination, (x) if such payments on account of Annual Basic Rent made by Tenant gives notice of its exercise of during such period were less than the Option Termactual Annual Basic Rent for such period, then Tenant shall have pay to Landlord the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration amount of such 60-day period. In the event of such revocationdeficiency, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate together with interest thereon at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidPrime Rate, and (y) if one such payments on account of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Annual Basic Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid made by Tenant during the Option Term shall be the average such period were in excess of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower oneactual Annual Basic Rent for such period, the two appraisers then Landlord shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal refund to Tenant and may not be assigned the amount of such excess, together with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldinterest thereon at the Prime Rate.
Appears in 2 contracts
Samples: Lease Agreement (Gramercy Capital Corp), Lease (Gramercy Capital Corp)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have Lessee is given the option to extend the initial lease term subject to all of the provisions contained in this Lease, except for four (4) additionalmonthly Base Rent shall be adjusted has provided in this Paragraph 9, successive terms for a period of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15“First Extended Term”) months nor later than twelve (12) months prior to following the expiration of the initial Lease Original Term or preceding Option Term(i.e., as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's March 31, 2022), by giving notice of exercise, current financial reports which evidence that Tenant's financial condition exercise of the option (“Option Notice”) to Lessor at least six (6) and no more than nine (9) months before the Expiration Date. If Lessee is in Default beyond the applicable notice and cure periods on the date of exercise giving the Option Notice, the Option Notice shall be totally ineffective, or if Lessee is equal to or better than Tenant's financial condition on Default beyond the applicable notice and cure periods on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgmentthe First Extended Term will commence, Landlord Lessor may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms elect that the First Extended Term shall not commence and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during expire at the Option Terms, provided that Tenant shall have no additional option periods and end of the original Term. The Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for set at the commencement of the applicable First Extended Term at 100% of the fair market (based upon same or similar use) rent for lease extensions for similar premises in similar buildings in Sunnyvale. The parties shall have thirty (30) days after Lessor receives the Option Notice in which to agree on monthly Base Rent during the First Extended Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout . If the Tri-Valley/Livermore area taking into account all relevant factors (parties agree on the "MARKET RENT"). monthly Base Rent for the Option First Extended Term during that period, they shall be determined prior immediately execute an amendment to this Lease stating the commencement base monthly rent for the First Extended Term (provided however, failure of either party to execute such amendment shall not affect the exercise of the applicable Option Term in option by Lessee). If the following manner: If Landlord and Tenant parties are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiserFirst Extended Term within that period, then within thirty (30) days after the expiration of that period, each party, at its cost and by giving written notice to the other party, shall appoint as an appraiser an experienced commercial a real estate agent appraiser with at least five (5) years’ full-time commercial appraisal experience in the area in which the Premises are located, to appraise and set the monthly Base Rent for the First Extended Term. Said appointment shall be made If they are unable to agree within ten (10) days following after the expiration of second appraiser has been appointed, they shall attempt to elect a third appraiser meeting the sixty qualifications stated in this paragraph within ten (6010) days after the last day period aforesaidthe two appraisers are given to set the monthly Base Rent. If they are unable to agree on the third appraiser, and if one either of the parties does not appoint an to this Lease, by giving thirty (30) days’ notice to the other party can apply to the President of the county real estate board of Santa Xxxxx County, or the Presiding Judge of the Superior Court of that County, for the selection of a third appraiser within that timewho meets the qualifications stated in this paragraph. 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. The third appraiser, the single appraiser named however selected, shall be a person who has not previously acted in any capacity for either party. Within thirty (30) days after the sole appraiser and selection of the third appraiser, a majority of the appraisers shall set the monthly Base Rent for the Option First Extended Term. If a majority of the two appraisers are appointed as provided herein, each shall independently prepare an estimate unable to set the monthly Base Rent within the stipulated period of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimatetime, then the monthly Base Rent to be paid by Tenant for the premises during the Option First Extended Term shall be the average median value of the amounts determined by the three appraisers. If For the difference between the two estimates exceeds ten percent (10%) purposes of this Paragraph 9, an original Tenant as described in Paragraph 39 of the lower one, the two appraisers Lease shall select include a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldPermitted Transferee.
Appears in 1 contract
Samples: Standard Industrial/Commercial Multi Tenant Lease (EGAIN Corp)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise extend the term of this Lease (with respect to the entire Premises only) for two (2) additional five (5) year lease terms (each, a "Renewal Term"), upon the following conditions:
a. Tenant has not been in default at any time during the Extension Term or first Renewal Term, as applicable;
b. Landlord has made a good faith determination that Tenant remains creditworthy;
c. Tenant has not previously assigned the Lease or sublet any part or all of the option by delivering Premises, except to an Affiliate;
d. Tenant has delivered to Landlord written notice within ten (10) of its intention to exercise this option, not less than 365 days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights prior to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, Extension Term or then Option first Renewal Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with ;
e. All lease terms for the determination of market rentRenewal Terms shall be the same as in the Lease, then except that the monthly Base Basic Rent and Additional Rent payable during Landlord concessions, if any, for the Option Term Renewal Terms shall be determined by appraisal at the then current fair market rate for renewals of leases for tenants with comparable credit-worthiness for comparable space in the following manner: southeast suburban Denver submarket, as negotiated in good faith between the parties, and there shall be no further option to renew the Lease Term after the second Renewal Term; and
f. If Landlord and Tenant can fail to agree on a single appraiseras to all terms and sign an Amendment to the Lease extending the Lease Term as provided in this Section at least 270 days prior to the end of the Extension Term or first Renewal Term, as applicable, all time periods for Tenant herein being of the essence, then Tenant's option to extend the rate set by such appraiser as set forth below term of this Lease shall lapse and Tenant's renewal option shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, no force and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointmenteffect. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are renewal option is personal to Tenant and may not be assigned with an assignment of this Lease is non-transferable, except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldAffiliate.
Appears in 1 contract
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"“Option Term”). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's ’s right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's ’s notice of exercise, current financial reports which evidence that Tenant's ’s financial condition on the date of exercise is equal to or better than Tenant's ’s financial condition on the date of execution of this Lease. If Tenant's ’s financial condition has declined in Landlord's ’s business judgment, Landlord may refuse to accept Tenant's ’s exercise unless Tenant agrees to provide a new Letter(s) Letter of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's ’s obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"“market rent”). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's ’s assets with Landlord's ’s prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Samples: Lease Agreement (Formfactor Inc)
Options to Renew. Provided that no Event of Default by (a) Landlord hereby grants to Tenant one (1) option to renew this Lease for an additional seven (7) month term provided Tenant is not then in default under this Lease exists as of and Alliance Mortgage Company is not then in default under the date of exercise of Lease Agreement dated May 14, 1998, with Landlord covering the applicable option or space located at 0000 Xxxxxxx Xxx (the expiration of “Nations Way Lease”), the initial term or preceding Option Term, Nations Way Lease is in full force and provided further that effect and Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering gives written notice to Landlord written notice of the exercise no sooner not less than fifteen one hundred twenty (15120) months nor later than twelve (12) months days prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution original term of this Lease. If Tenant's financial condition has declined Monthly Base Rent shall be equal to the Monthly Base Rent charged (not including abatements in Landlord's business judgment, rent for reason other than a permanent taking by way of condemnation or deed in lieu thereof) in the final year of the original Term of this Lease.
(b) Landlord may refuse hereby grants to accept Tenant's exercise unless Tenant agrees one (1) option to provide renew this Lease for an additional five (5) year term following the expiration of the extended term set forth in subparagraph (a) above provided Tenant is not then in default under this Lease and Tenant gives written notice to Landlord not less than one hundred twenty (120) days prior to the expiration of the extended term of this Lease. Monthly Base Rent shall be increased for the first year of the renewal term by two percent (2.0%) over the Monthly Base Rent charged (not including abatements in rent for reason other than a new Letter(spermanent taking by way of condemnation or deed in lieu thereof) in the final year of Credit with the original Term of this Lease. The Monthly Base Rent shall be increased for the fourth and fifth years of the renewal term by three percent (3.0%) per annum over the immediately preceding lease year. All other terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall will remain in full force and effect during the Option Terms, provided renewal term other than the requirement that Tenant shall have no additional option periods and Landlord provide Leasehold Improvements to the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, Premises as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option TermCommencement Date. THIS SECOND AMENDMENT TO LEASE is entered into this 30 day of September, for premises comparable in size2003, quality by and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors between HGL PROPERTIES L.P., LTD., a Florida limited partnership (the "MARKET RENT"“Landlord”), and NATIONAL MORTGAGE CENTER, LLC, now known as EVERBANC MORTGAGE COMPANY, LLC, a Delaware limited liability company (“Tenant”). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant All terms not otherwise defined herein shall have the right meaning assigned to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal them in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten “Lease” (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldbelow).
Appears in 1 contract
Options to Renew. Provided that no Event of Default by Tenant under this The Lease exists as is hereby amended to delete all options to renew (including, without limitation, Tenant’s option to renew pursuant to Section 15 of the date Addendum) and all such options are of exercise no further force or effect. Landlord and Tenant hereby agree that Tenant may, at its option and subject to the terms hereof, renew the term of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term Lease for four two (42) additional, successive terms additional periods of five (5) years each (each, an "OPTION TERM"“Extended Term”), provided that the Lease is in full force and, at the time of exercise of any such option to renew and at the time an Extended Term would begin, no event of default under the Lease is continuing or has occurred, beyond any applicable cure period, and no event or conditions exist which, with the giving of notice, the passage of time, or both, could mature into an event of material monetary default under the Lease. Each Extended Term shall be based upon the same terms and conditions contained in the Lease and this Amendment, except that (a) the Lease may not be renewed more often than as set forth above, (b) Landlord shall have no obligation to install improvements in the Leased Premises, and (c) the Base Monthly Rent for each Extended Term shall be at the Market Rate (as hereinafter defined) for the Leased Premises as of the commencement of such Extended Term. If Tenant elects to exercise any such option to renew, Tenant shall exercise the optiondeliver written notice (each, if at all, by delivering “Tenant’s Election Notice”) to Landlord written notice of the exercise by certified mail, return receipt requested, no sooner more than fifteen (15) months nor later months, but no less than twelve (12) months months, prior to the expiration of the initial Lease Term or preceding Option the prior Extended Term, as applicable. Tenant's right Any attempted exercise of any such option to renew 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 each an option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exerciserenew, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional further option periods and to extend the Base Rent payable during term of the Lease, it being agreed that time is of the essence with respect to the giving of Tenant’s Election Notice. Tenant may only exercise its second Extended Term if Tenant previously exercised its first Lease Year Extended Term in accordance with the terms hereof. As used herein, the term “Market Rate” shall mean the fair market monthly rental rate of each Option Term (and for increases during the Option TermLeased Premises, as applicable) shall be determined in accordance with the market rate then prevailing as projected for the commencement procedures set forth in Paragraph 4 of Section 15 of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option TermAddendum. If the parties cannot agree on appointment of a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in appraiser is required to appraise and determine the area in which fair market monthly rental rate of the Leased Premises are located. Said pursuant to Paragraph 4 of Section 15 of the Addendum, such appointment and appraisal shall be made within ten (10) days following conducted in accordance with the expiration procedures set forth in Paragraph 4 of Section 15 of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldAddendum.
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Options to Renew. Provided that no Event a. Subject to the provisions of Default by Tenant under this Lease exists as Section 26 of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option TermLease, and provided further that Tenant has not assigned this Lease, Tenant shall have been in default beyond any applicable cure period more than twice during the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or month period immediately preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on (i) the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless which Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during exercises the applicable Option Term. All termsOption, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term or (and for increases during the Option Term, as applicableii) shall be the market rate then prevailing as projected for the commencement of the applicable Option Termterm, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors Tenant shall have two (the "MARKET RENT")2) five (5) year Options to renew this Lease. Base Rent for the Option Term Tenant shall be determined provide to Landlord on a date which is prior to the commencement date that the applicable Option period would commence (if exercised) by at least two hundred seventy (270) days and not more than three hundred sixty-five (365) days, a written notice of the exercise of the applicable Option to extend the Lease for the applicable additional Option term, time being of the essence. Such notice shall be given in accordance with Section 40 of the Lease. If notification of the exercise of the Option is not so given and received, all Options granted hereunder shall automatically expire. Base Rent applicable to the Premises for such Option Term (the “Option Rent”) shall be equal to the greater of (i) the then current escalated Base Rent in effect for the following manner: Premises as of the expiration of the Term of the Lease (as extended) (and such Base Rent shall escalate annually at the same rate as Base Rent during the initial term), and (ii) the Fair Market Rental (as hereinafter defined). All other terms and conditions of the Lease shall remain the same, except that after the exercise of the first renewal Option, Tenant shall have only one (1) Option to renew this Lease, and after the exercise of the second Option, Tenant shall have no further Options to renew the Lease. In addition, Tenant shall not be entitled to the Base Rent Abatement referenced in Section 1.8 of the Lease or the Improvements or the Improvement Allowance referenced in Paragraph 2 above.
b. If the Tenant exercises either Option, the Landlord shall determine the Option Rent 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 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 Option Rent, using their best good faith efforts. If Landlord and Tenant are unable fail to agree on the market rent reach agreement within sixty fifteen (6015) days after Tenant gives notice of its exercise of following Tenant's Review Period ("Outside Agreement Date") then the Option Term, then Tenant parties shall have the right to revoke its exercise of the option by delivering written notice each within ten (10) days following the expiration Outside Agreement Date appoint a real estate broker who shall be licensed in the State of such 60-day period. In New Jersey and who specializes in the event field of such revocationcommercial office space leasing in the Xxxxxx County, Tenant shall forfeit all rights to thereafter exercise any option under this Lease New Jersey market, has at least ten (10) years of experience and is recognized within the Lease shall terminate at the end of the initial term, or then Option Term, field as applicablebeing reputable and ethical. If Tenant one party does not revoke its exercise and elects to proceed with the determination of market renttimely appoint a broker, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined broker appointed by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party shall promptly appoint a broker for such party, . Such two individuals shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made each determine within ten (10) days following after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the expiration two individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Termqualifications described above. If the two appraisers brokers are unable to agree upon a third broker, the third broker shall be appointed as provided herein, each shall independently prepare an estimate by the President of the market rent within sixty (60) daysXxxxxx County Board of Realtors. In the event the Xxxxxx 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 higher third broker shall be appointed by the Assignment Judge of the two estimates so determined is within ten percent (10%) Superior Court of the lower estimateXxxxxx County, then the monthly Base Rent to be paid by Tenant during the Option Term New Jersey. The third individual shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointmenthis or her appointment make a determination of such Fair Market Rental. The average third individual shall determine which of the determinations of the first two individuals is closest appraisals to his own and the determination that is closest shall be set as final and binding upon the monthly Base Rentparties, and such determination may be enforced in any court of competent jurisdiction. Each party Landlord and Tenant shall pay each bear the fees cost of the appraiser appointed by such party its broker and the parties will shall share equally the fees cost of any the third appraiser appointed broker. Upon determination of the base rent payable pursuant to this Section A-2.1. Notwithstanding the aboveSection, the Base Rent payable by Tenant during each Option Term parties shall be in addition promptly execute an amendment to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldstating the rent so determined.
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Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, (a) Tenant shall have two (2) options (the option “First Renewal Option,” the “Second Renewal Option,” and, collectively, the “Renewal Options”) to extend the initial lease term Term for four (4) additional, successive terms consecutive periods of five (5) years each beyond the Expiration Date (eachthe “First Renewal Term,” the “Second Renewal Term,” and, an "OPTION TERM"collectively, the “Renewal Terms”). The Renewal Options shall be effective only if Tenant is not in Default under this Lease, either at the time of exercise of the applicable Renewal Option or the time of commencement of the respective Renewal Term. The Second Renewal Option shall exercise be effective only if Tenant has previously exercised the optionFirst Renewal Option. The Renewal Options may be exercised by Kyphon Inc. or by any party to whom Kyphon Inc. has assigned this Lease, but not by any sublessee. The Renewal Options may be exercised by Tenant even if Tenant is subleasing all or a portion of the Premises. The Renewal Options must be exercised, if at all, by delivering written notice (each, an “Election Notice”) from Tenant to Landlord written notice of the exercise no sooner than fifteen (15) months nor later given not more than twelve (12) months nor less than nine (9) months prior to the expiration of the initial Lease Term or preceding the First Renewal Term, as applicable (except that the First Renewal Option shall also be exercisable during the period that Tenant is entitled to exercise the Right of First Refusal, to the extent provided in Paragraph 52(b) below). Any such Election Notice given by Tenant to Landlord shall be irrevocable. If Tenant fails to exercise either Renewal Option in a timely manner as provided above, such Renewal Option shall be void (time being of the essence) and this Lease shall automatically terminate on the Expiration Date or the expiration of the First Renewal Term, as applicable, without the necessity of notice from either party to the other. Tenant's right to exercise each option The Renewal Terms shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with same terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during conditions as the applicable Option initial Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided except that Tenant shall have no additional option periods and (i) the Base Rent payable during the first Lease Year of each Option Renewal Term (and for increases during the Option Term, as applicable“Renewal Rate”) shall be equal to one hundred percent (100%) of the prevailing market rate then prevailing as projected for space in similarly situated buildings in Sunnyvale, California taking into account the Premises’ location, condition, quality and type at the commencement of the applicable respective Renewal Term (the “Prevailing Rate”), (ii) no further Renewal Option shall be available to Tenant at the expiration of the Second Renewal Term, (iii) no Right of First Refusal (as hereinafter defined) or Termination Option shall be available to Tenant during the Renewal Terms, and (iv) the restrictions on the development of the Undeveloped Area (as hereinafter defined) contained in Paragraph 55 below shall not be applicable during the Renewal Terms. As used herein, the term “prevailing market rate” shall mean the base annual rental for premises such comparable in sizespace, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account any additional rental and all relevant factors (the "MARKET RENT")other payments and escalations payable hereunder and by tenants under leases of such comparable space. Base Rent for the Option Term The Prevailing Rate shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty accordance with Paragraph 51(b) below.
(60b) Within thirty (30) days after Landlord’s receipt of an Election Notice or as soon thereafter as is reasonably practicable, Landlord shall notify Tenant gives notice of its exercise in writing (the “Renewal Rate Notice”) of the Option Renewal Rate for the respective Renewal Term, then . Tenant shall have fifteen (15) days (the right to revoke its exercise “Response Period”) after receipt of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Renewal Rate Notice to advise Landlord whether or not Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end agrees with Landlord’s determination of the initial term, or then Option Renewal Rate for such Renewal Term, as applicable. If Tenant does not revoke its exercise and elects respond to proceed Landlord in writing within the Response Period, then Tenant shall be deemed to have accepted the Renewal Rate specified by Landlord in the Renewal Rate Notice. If Tenant agrees or is deemed to have agreed with the Landlord’s determination of market rentthe Renewal Rate, then such determination shall be final and binding on the monthly Base Rent and Additional Rent payable parties. If Tenant notifies Landlord in writing during the Option Response Period that Tenant disagrees with Landlord’s determination of the Renewal Rate, then within fifteen (15) days after Landlord’s receipt of Tenant’s written notice, Landlord and Tenant shall each retain a licensed commercial real estate broker with at least ten (10) years’ experience negotiating commercial lease transactions in Sunnyvale, California. If only one broker is appointed by the parties during such fifteen (15) day period, then such broker shall, within twenty (20) days after his or her appointment, determine the Prevailing Rate and the Renewal Rate for such Renewal Term shall be determined by appraisal in the following manner: equal such Prevailing Rate. If Landlord and Tenant can agree on each appoint a single appraiser, then the rate set by broker during such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten fifteen (10) days following the expiration of the sixty (6015) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.as
Appears in 1 contract
Samples: Lease Agreement (Kyphon Inc)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as is in full force and effect and Tenant is not in default under any of the date other terms and conditions of exercise of the applicable option or this Lease at the expiration time of the initial term notification or preceding Option Term, and provided further that Tenant has not assigned this Leasecommencement, Tenant shall have the option two consecutive options to extend the initial lease renew (each, a “Renewal Option”) this Lease for a term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"a “Renewal Term”). , for the portion of the Premises being leased by Xxxxxx as of the date the applicable 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:
43.1 If Tenant elects to exercise the applicable Renewal Option, then Tenant shall exercise the option, if at all, by delivering to provide Landlord with written notice of no earlier than the exercise no sooner than fifteen date which is four hundred fifty (15450) months nor later than twelve (12) months days prior to the expiration of the initial then current Term of this Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on but no later than the date which is three hundred sixty (360) days prior to the expiration of exercise is equal to or better than Tenant's financial condition on the date of execution then current Term of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees fails to provide a new Letter(s) such notice, Tenant shall have no further or additional right to extend or renew the Term of Credit with terms this Lease.
43.2 The Annual Rent and amounts acceptable to Landlord Monthly Installment of Rent in its business judgment to secure Tenant's obligations during effect at the applicable Option Term. All terms, provisions, conditions and covenants expiration of the then current Term of this Lease 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 Lease which will remain in full force constant. Landlord shall advise Tenant of the new Annual Rent and effect during Monthly Installment of Rent for the Option Terms, provided that Tenant Premises no later than thirty (30) days after receipt of Tenant's written request therefor. Said request shall have be made no additional option periods and the Base Rent payable during earlier than thirty (30) days prior to the first Lease Year date on which Tenant may exercise the applicable Renewal Option under this Article 43. Said notification of each Option Term (the new Minimum Monthly Rent may include a provision for its escalation to provide for a change in fair market rental between the time of notification and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Renewal Term.
43.3 The Renewal Options are not transferable; the parties hereto acknowledge and agree that they intend that the aforesaid options 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 rights to exercise the aforesaid options to renew.
43.4 If Tenant fails to validly exercise the first Renewal Option, Tenant shall have no further right to extend the term of this Lease. In addition, if both Renewal Options are validly exercised or if Tenant fails to validly exercise the second Renewal Option, Tenant shall have no further right to extend the term of this Lease.
43.5 For purposes of this Renewal Option, “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 premises space comparable to the Premises in sizethe Building and office buildings comparable to the Building in the same Class “A” office rental market in downtown Seattle, quality and location in comparable class R&D/Office buildings throughout Washington as of the Tri-Valley/Livermore area date the Renewal Term is to commence, taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement specific provisions of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicablewhich will remain constant. If Tenant does not revoke its exercise and elects to proceed with the The determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term Prevailing Market shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference take into account any material economic differences between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this LeaseLease 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. Tenant acknowledges that The determination of Prevailing Market shall also take into consideration any reasonably anticipated changes in the options granted herein are personal to Tenant Prevailing Market rate from the time such Prevailing Market rate is being determined and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is the time such Prevailing Market rate will become effective under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Samples: Lease Agreement
Options to Renew. Provided that no Event of Default by Tenant is not in default under this Lease exists as Lease, after expiration of applicable notice and cure periods, either at the time it exercises the renewal options set forth below, or at the date a Renewal Term begins, Tenant will have the right to renew this Lease for three (3) successive three-year terms (the “Renewal Terms”) by giving notice of exercise of the applicable renewal option or to Landlord at least nine (9) months before the expiration end of the initial term Original Term or preceding Option the then-existing Renewal Term (the Original Term and the Renewal Terms, if any, exercised by Tenant are collectively referred to as the “Lease Term”), If Tenant fails to deliver timely written notice of exercise of a renewal option to Landlord, all future renewal options shall lapse and provided Tenant will have no further that privilege to extend the Lease Term. Each Renewal Term shall be on the same terms and conditions of this Lease as to the portion of the Premises so leased by Tenant has not assigned this Lease(unless by their very nature inapplicable). In addition to paying the Rent, Tenant shall have the option continue to extend the initial lease term for four (4) additional, successive terms of five (5) years pay all other sums required under this Lease during each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Renewal Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise each renewal option as to less than all of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid leased by Tenant during the Option Original Term shall be (“Original Premises”), provided that Tenant identifies the average portion of the amounts determined Premises to be leased by Tenant in its notice exercising the appraisersrenewal option. If the difference between the two estimates exceeds ten percent (10%) Tenant exercises its renewal option to lease less than all of the lower oneOriginal Premises, the two appraisers shall select then any future renewal options may be exercised by Tenant only with respect to all or a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointmentportion of such leasable area identified by Tenant. The average Prior to commencement of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees first Renewal Term (if any) in which Tenant elects to lease less than all of the appraiser appointed by such party Original Premises, Landlord and the parties will share equally the fees of any third appraiser appointed pursuant Tenant shall negotiate in good faith to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under amend the terms of this Lease. Tenant acknowledges Lease (other than Rent) so that the options granted herein are personal Lease would be in the customary form of a triple net lease for a portion of office space in a building similar to the Building, with Tenant and may not be assigned with an assignment paying its pro rata share of this Lease except operating expenses incurred by Landlord in connection with an assignment Landlord’s maintenance of the Building and related common areas, based on the ratio of the Rentable Area of the Premises to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 the Rentable Area of this Lease) or which is a successor the Building. This Lease shall also be amended to allocate to Tenant by merger, consolidation or sale an equitable share of substantially the parking spaces on the Premises. Signage on the Premises shall be subject to the provisions of Section 9.3. If Tenant exercises is renewal option to lease less than all of Tenant's assets with Landlord's prior written consent, not the Original Premises and the portion of the Premises to be unreasonably withheld.leased by Tenant consists of one or more of four (4) of the discrete leasable areas shown on the floor plan of the Original Premises attached as Exhibit C, then Tenant shall pay the reasonable cost to retrofit the Building in order to separate Tenant’s leased premises from the balance of the Building and to conform Tenant’s retained premises to all applicable building, fire and other codes and regulations. For purposes hereof, the cost to retrofit the Building shall mean only the reasonable cost to rekey all Jocks and security devices, as reasonably necessary, and the cost to install separate utility meters, as reasonably determined by Landlord and Tenant. If Tenant is retaining only a portion of the Premises on a single floor, the cost to retrofit the Building shall also include the cost to construct a single demising wall to separate the Premises, and Landlord shall pay any costs to reconfigure the common areas within
Appears in 1 contract
Samples: Sublease Agreement
Options to Renew. Provided that As long as there is then no uncured Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option TermDefault, and provided further that Tenant has not assigned this the Lease or sublet the Leased Premises except as permitted in Section 8.1.6 of the Lease, and Tenant, a Permitted Assignee, and their Permitted Affiliates together lease and occupy at least 150,000 square feet of Net Rentable Area of the Leased Premises, Tenant shall have or such Permitted Assignee is hereby granted the option (i) to extend renew the initial lease term for four Term of the Lease with respect to all (4but not part) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the optionSecond Space and, if at allthe Fourth Space Option has been exercised by Tenant, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior Fourth Space for a period commencing on the Termination Date as to the expiration of Second Space, and the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition Fourth Space and expiring on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors Termination Date (the "MARKET RENTExpansion Space Option #1"). Base Rent for , and (ii) to renew the Option Term shall be determined prior of the Lease with respect to the commencement of First Space and the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree Third Space for a period commencing on the market rent within sixty Termination Date as to the First Space and the Third Space and expiring on the Lease Termination Date (60the "Expansion Space Option #2") days after Tenant gives notice of its exercise of (Expansion Space Option #1 and Expansion Space Option #2 are hereinafter referred to as the Option Term"EXPANSION SPACE RENEWAL OPTIONS", then and the renewal terms therefor are hereinafter referred to as the "EXPANSION RENEWAL TERMS"), on the terms and conditions hereinafter set forth. Tenant shall have the right to revoke its exercise either or both of Expansion Space Option #1 and/or Expansion Space Option #2. Tenant shall exercise the Expansion Space Renewal Options in accordance with the provisions of Section 1.2 of Exhibit B to the Lease. The renewal of the option Lease as to the First Space, Second Space, Third Space and, if the Fourth Space Option has been exercised by delivering written notice within ten (10) days following Tenant, the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term Fourth Space shall be determined by appraisal in upon the following manner: If Landlord same terms and Tenant can agree on a single appraiser, then the rate set by such appraiser conditions as set forth below in the Lease as amended by this Amendment with respect to the Expansion Term, except that (a) Base Rental shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice prevailing Market Rate (defined in Section 3.1 of Exhibit B to the other partyLease), (b) Tenant shall appoint not have the right to assign its renewal rights to any assignee of the Lease or sublessee of the Leased Premises except as permitted in Section 8.1.6 of the Lease, (c) the applicable Expansion Space will be provided in its then existing condition (on an appraiser an experienced commercial real estate agent "AS IS" basis) at the time the applicable Expansion Renewal Term commences, without any obligation on the part of Landlord to furnish, install or alter any leasehold improvements and (d) each parking permit described in Paragraph 7 shall be leased by Tenant for a cost to Tenant equal to the then market monthly rate for such parking in the area in which Parking Garage plus any applicable sales taxes.
Section 1.1 of Exhibit B to the Premises are located. Said appointment shall be made within ten (10) days following Lease is hereby amended to provide that Tenant must renew the expiration Term of the sixty (60) day period aforesaidLease, and if one Tenant elects to exercise such renewal option, with respect to at least the greater of the parties does not appoint 150,000 square feet of Net Rentable Area or an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten amount equal to seventy percent (1070%) of the lower estimatenumber of square feet of Net Rentable Area contained in the then existing Leased Premises at the time Tenant exercises such right, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, but not to be unreasonably withheldexceed the then existing Leased Premises.
Appears in 1 contract
Samples: Lease Agreement (Bank United Corp)
Options to Renew. Provided Subject to the following notice requirements and provided that no Event at the time of Default by Tenant under this Lease exists as of such notice and on the date of exercise first day of the applicable option or at Renewal Term Lessee is not in default under the expiration terms of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have Lessor hereby grants to Lessee the option to extend renew the initial lease term of this Lease for four (4) additional, successive terms additional periods of five (5) years each pursuant to the same terms and conditions as set forth in this Lease, except for the amount of the Base Rent, which shall be calculated as set forth below. Each of the five (each, an "OPTION TERM")5) year renewal terms described in this Paragraph 5 shall be referred to herein as a “Renewal Term”. Tenant The Lessee shall have the right to exercise the option, if options to renew as set forth in this Paragraph 5 by providing written notification thereof to Lessor at all, by delivering to Landlord written notice of any time after the exercise no sooner than fifteen (15) months nor later Commencement Date but not less than twelve (12) months prior to the expiration last day of the initial Lease Initial Term or preceding Option the current Renewal Term, as applicable. Tenant's Lessee shall have no right to exercise the right to renew as set forth in this Paragraph 5 in the event Lessee fails to satisfy any term or provision contained in this Agreement which is not cured within any applicable grace period. In the event Lessee does not exercise its option to renew in accordance with the provisions of this Paragraph 5, the right of the Lessee to renew the Lease Term thereafter shall cease and terminate. Base Rent for each option Renewal Term shall be conditioned determined upon Tenant delivering to Landlord with Tenant's notice expiration of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods Initial Term and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option prior Renewal Term, as applicable) , and shall be equal to one hundred two percent (102%) of the market rate then prevailing as projected Base Rent for the previous twelve (12) month period and Base Rent shall increase on each annual anniversary of the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors Renewal Term to an amount equal to one hundred two percent (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement 102%) of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten immediately preceding twelve (1012) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldmonth period.
Appears in 1 contract
Samples: Building and Ground Lease (Phoenix Container, Inc.)
Options to Renew. Provided that no Event 27.1 Landlord hereby grants to Tenant the right, exercisable at Tenant’s option, to renew the term of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Termfor up to two (2) additional periods, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms each of five (5) years each (each, an "OPTION TERM"a “Renewal Term”), for a maximum renewal period not to exceed ten (10) years. If exercised, and if the conditions applicable thereto have been satisfied, each Renewal Term shall commence immediately following the end of the initial Lease Term provided in Section 3.1 of this Lease or the then current Renewal Term, as applicable. The right of renewal granted in this Lease to Tenant shall be subject to, and shall be exercised in accordance with, the following terms and conditions of this Article XXVII.
27.2 If Tenant elects to exercise its right of renewal with respect to any Renewal Term, at its option, Tenant shall exercise the option, if at all, such right by delivering to giving Landlord written notice of the exercise no sooner thereof (each, “Tenant’s Renewal Notice”) not less than thirteen (13) months and fifteen (15) months nor later than twelve (12) months days prior to the expiration of the initial then-current Lease Term (as such Lease Term may have been previously extended in accordance with this Article XXVII). In the event that Tenant’s Renewal Notice is not given in a timely manner, Tenant’s right of renewal with respect to all Renewal Terms shall lapse and be of no further force or preceding Option Termeffect. Within fifteen (15) days after Landlord’s timely receipt of Tenant’s Renewal Notice, as applicable. Tenant's right to exercise each option Landlord shall provide Tenant with Landlord’s determination of the annual base rent for the Premises being renewed, the escalation factor, lease concessions (if any) and additional rent (collectively, the “Renewal Economic Terms”) that shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations applicable during the applicable Option Renewal Term. All terms, provisions, conditions and covenants The parties shall have thirty (30) days after Tenant’s receipt of this Lease shall remain Landlord’s determination in full force and effect which to agree on the Renewal Economic Terms applicable during the Option Terms, provided that Tenant applicable Renewal Term. The parties shall have no additional option periods and the Base Rent attempt to agree upon an annual base rent payable during the first Lease Year year of each Option the applicable Renewal Term (and for increases during which would equal the Option Termapplicable market rent, as applicable) well as the remainder of the Renewal Economic Terms. Among the factors to be considered by the parties during such negotiations shall be the general office rental market rate for office buildings of comparable quality, size, age and location (“Comparable Buildings”) in the vicinity of the Building (“Market Area”), including equitable adjustments for any leasing concessions for renewals of leases (concessions for new leases shall not be considered), base rental rates for renewals of leases, leasehold improvements for renewals of leases, including allowances and build-out periods (leasehold improvements for new leases shall not be considered) and brokerage fees which are then prevailing as projected prevalent for Comparable Buildings in the Market Area, but are not to be included in the Renewal Economic Terms for the commencement of applicable Renewal Term and other then relevant market factors. If during such thirty (30)-day period the applicable Option Termparties are unable, for premises comparable in sizeany reason whatsoever, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of Renewal Economic Terms for the Option applicable Renewal Term, then Tenant shall have the right to revoke terminate its exercise option to renew by delivery of the option by delivering written notice to Landlord within two (2) business days after the expiration of such thirty (30) day period, in which case Tenant’s rights under this Article XXVII shall automatically lapse and be of no further force and effect. If Tenant does not or fails to deliver such termination notice to Landlord within two (2) business days after the expiration of such thirty (30) day period, then the following shall apply:
(a) Landlord and Tenant shall, within ten (10) days following after the expiration of such 60the foregoing thirty (30)-day period, each appoint a disinterested licensed real estate broker who shall (i) be licensed as a broker in the District of Columbia, (ii) have at least ten (10) years of experience in commercial real estate leasing in the District of Columbia, (iii) have particular and current experience in the first-day period. In class office market in the Market Area, and (iv) be recognized within the field as being reputable and ethical (collectively, an “Appraiser”), provided, however, in no event shall any Appraiser be a broker that either Landlord or Tenant (including any parent company, subsidiary or affiliate of either Landlord or Tenant) has engaged pursuant to a written agreement during the five (5) year period prior to appointment of such revocation, Tenant Appraiser. Each party shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving give written notice to the other partywithin such ten (10) day period. If either Landlord or Tenant shall fail timely to appoint an Appraiser, then the single Appraiser appointed by one party shall appoint as an appraiser an experienced commercial real estate agent proceed to make the determination of the Renewal Economic Terms, in accordance with the terms and conditions therefor set forth in the area preceding paragraph of this Section 27.2. Such Appraisers (or Appraiser) shall, within fifteen (15) days after the appointment of the last of them to be timely appointed, complete their written determinations of the Renewal Economic Terms in which accordance with the Premises are locatedterms and conditions therefor set forth in the preceding paragraph of this Section 27.2, and furnish the same to Landlord and Tenant. Said appointment Each party shall pay the fees and costs of the Appraiser appointed by it (however, if only one Appraiser is timely appointed, the parties shall share the fees and costs of such Appraiser equally).
(b) If the valuations taken as a whole vary by five percent (5%) or less of the higher value, then the Renewal Economic Terms shall be made the average of the two valuations. If the valuations (taken as a whole) vary by more than five percent (5%) of the higher value, the two Appraisers shall within ten (10) days following the expiration after submission of the sixty last appraisal report, appoint a third disinterested Appraiser who shall meet all the criteria set forth in this Section as an Appraiser with the same qualifications set forth for the original two Appraisers described above. Such third Appraiser shall, within fifteen (6015) day period aforesaiddays after the appointment, and if one make a determination of the parties does not appoint Renewal Economic Terms and submit an appraiser within that time, the single appraiser named shall be the sole appraiser appraisal report to Landlord and shall set the monthly Base Rent for the Option TermTenant. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of determination by such third Appraiser is between the two estimates so determined is within ten percent (10%) of the lower estimateprevious determinations, then the monthly Base Rent Renewal Economic Terms applicable to the applicable Renewal Term shall be paid as set forth in the report from the third Appraiser; but if the determination by Tenant during such third Appraiser is not between the Option two previous determinations, then the Renewal Economic Terms applicable to the Renewal Term shall be the average of the amounts determined two (2) closest valuations. All fees and costs incurred in connection with the determination of the Renewal Economic Terms by the appraisers. If the difference between the two estimates exceeds ten percent third Appraiser shall be paid one half by Landlord and one half by Tenant.
27.3 Within fifteen (10%15) business days after determination of the lower oneEconomic Terms in accordance with this Article, Landlord and Tenant each shall endeavor in good faith to draft and execute an amendment to this Lease which shall state the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average terms so agreed upon and modify any of the two closest appraisals shall other terms of this Lease only as may be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant necessary to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under reflect the terms of such renewal.
27.4 Notwithstanding anything set forth in this Lease. Tenant acknowledges that Lease to the options granted herein are personal contrary, if an Event of Default exists under this Lease on the date Tenant’s Renewal Notice is given to Tenant Landlord or at any time thereafter prior to commencement of the applicable Renewal Term there remains an uncured Event of Default (Landlord being under no obligation to accept a cure), then, at Landlord’s option, the applicable Renewal Term shall not commence and may not be assigned with an assignment the term of this Lease except in connection with an assignment shall expire at the expiration of the then-current Lease Term.
27.5 Tenant’s right of renewal under this Article XXVII may at all times be fully exercised by and assignable to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is only a successor to Tenant by merger, consolidation or sale of substantially Permitted Transferee that has assumed all of Tenant's assets with Landlord's prior written consent’s obligations under this Lease in its entirety. Except as otherwise expressly permitted in the immediately preceding sentence, Tenant’s right of renewal under this Article XXVII shall not be exercised by any other transferee, sublessee or other assignee of Tenant.
27.6 Tenant’s right of renewal under this Article XXVII is only applicable to be unreasonably withheldthe entire Premises being leased by Tenant at the time of Tenant’s Renewal Notice and not for any portion thereof.
Appears in 1 contract
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of (a) Subject to the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leaseconditions hereinafter set forth, Tenant shall have is hereby granted options (individually, a “Renewal Option” and, collectively, the option “Renewal Options”) to extend renew the initial lease term Term with respect to all, or any portion of, the Leased Premises as then demised hereunder for four six (46) additional, successive terms periods of five (5) years each (eachindividually, an "OPTION TERM"a “Renewal Term” and collectively the “Renewal Terms”); provided that the Term shall not extend, for any portion of the Leased Premises, beyond the Outside Expiration Date.
(b) The first Renewal Term (if the first Renewal Option is exercised) shall commence at the expiration of the Initial Term, and each subsequent Renewal Term (if the pertinent Renewal Option is exercised) shall commence at the expiration of the immediately preceding Renewal Term. Tenant shall exercise the optioneach of its Renewal Options, if at all, by delivering notice of such exercise to Landlord written notice of the exercise no sooner than fifteen (15each, a “Tenant’s Renewal Notice”) months nor not later than twelve (12) months prior to the then current expiration of the initial Term. In any case that Tenant exercises a Renewal Option with respect to less than all of the Leased Premises as then demised hereunder, Tenant shall identify the portion(s) of the Leased Premises with respect to which the Renewal ________________________________________________________________________________________________________________________ Option is being exercised. IN ORDER TO PREVENT TENANT’S INADVERTENT FORFEITURE OF ANY THEN REMAINING RENEWAL OPTION, IF TENANT SHALL FAIL TO TIMELY EXERCISE ANY AVAILABLE RENEWAL OPTION, TENANT’S RIGHT TO EXERCISE SUCH RENEWAL OPTION SHALL NOT LAPSE UNTIL LANDLORD SHALL DELIVER TO TENANT WRITTEN NOTICE THAT SUCH NOTICE OF EXERCISE HAS NOT BEEN DELIVERED AND TENANT SHALL THEREAFTER FAIL TO EXERCISE SUCH RENEWAL OPTION WITHIN TEN (10) BUSINESS DAYS FOLLOWING THE DELIVERY OF SUCH NOTICE.
(c) Tenant’s leasing of the Leased Premises during any Renewal Term shall be upon all the then executory terms and conditions of this Lease (as applicable prior to such Renewal Term), except as follows:
(1) The Annual Basic Rent Factor for each Renewal Term shall be equal to the Fair Market Rental Value Per RSF of the Base Leased Premises for the Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided); provided, however, that:
(A) if, as of the commencement of such Renewal Term, both (i) Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has not ended, then the Annual Basic Rent Factor for such Renewal Term shall be adjusted as provided in Section 2 of the Master Agreement, as applicable;
(B) if, as of the commencement of such Renewal Term, the Tenant hereunder is not a Wachovia Party (whether or not the Integration Period has ended), then the Annual Basic Rent Factor for such Renewal Term shall not exceed a rate equal to 110% of the Annual Basic Rent Factor on the last day of the Initial Term or immediately preceding Option Renewal Term, as applicable. Tenant's right ; and
(C) if, as of the commencement of such Renewal Term, (i) the Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has ended, then the Annual Basic Rent Factor for such Renewal Term shall not exceed the following: (x) in the case of the first Renewal Term, a rate equal to exercise 110% of the Annual Basic Rent Factor on the last day of the Initial Term; and (y) in the case of each option subsequent Renewal Term, a rate equal to 105% of the Annual Basic Rent Factor for the immediately preceding Renewal Term.
(2) The STAS Basic Rental Factor for each Short-Term Additional Space for each Renewal Term shall be conditioned upon equal to the Fair Market Rental Value Per RSF of such Short-Term Additional Space for such Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided).
(d) Within thirty (30) days following the Renewal Option Notice Date with respect to any Renewal Option, Landlord shall deliver to Tenant, a proposal setting forth Landlord’s determination of the Fair Market Rental Value Per RSF for the Leased Premises for the pertinent Renewal Term (which, if the Leased Premises as to which such Renewal Option is exercised includes any Short-Term Additional Space, then such determination shall include separate components for the Fair Market Rental Value Per RSF for the Base Leased Premises, and the ________________________________________________________________________________________________________________________ Fair Market Rental Value Per RSF of the Short-Term Additional Space). Thereafter, and until the delivery of a Renewal Appraisal Notice, Landlord and Tenant delivering shall endeavor to reach agreement as to the Fair Market Rental Value Per RSF of the Leased Premises for the pertinent Renewal Term (and, as applicable, each component thereof).
(e) If Landlord and Tenant are unable to reach a definitive agreement as to the Fair Market Rental Value Per RSF for Leased Premises for any Renewal Term within sixty (60) days following the Renewal Option Notice Date, then either Landlord or Tenant, by written notice thereof to the other party (herein called a “Renewal Appraisal Notice”), may cause such Fair Market Rental Value Per RSF to be submitted for resolution in accordance with the following provisions of this Section 1.4(e):
(1) Within thirty (30) days after delivery of the Renewal Appraisal Notice, Landlord and Tenant shall each select and engage an Appraiser to determine such Fair Market Rental Value Per RSF. If either party fails to select and engage an Appraiser within such time, and if such failure continues for more than five (5) Business Days following such party’s receipt of written notice that states in all capital letters (or other prominent display) that such party has failed to select an Appraiser as required under the Lease and will be deemed to have waived certain rights granted to it under the Lease unless it selects an Appraiser within five (5) Business Days, then the Appraiser engaged by the other party shall select the second Appraiser.
(2) Within thirty (30) days following the date on which the second Appraiser is selected, (i) each Appraiser shall prepare a sealed determination of the such Fair Market Rental Value Per RSF, (ii) the Appraisers, together with Landlord and Tenant, shall arrange a meeting at the Property during Building Operating Hours (or at such other place and time as is reasonably acceptable to both Appraisers, Landlord and Tenant) for the purpose of distributing such sealed determinations, and (iii) at such meeting, the Appraisers shall each simultaneously present their determinations of such Fair Market Rental Value Per RSF, to the other Appraiser and to Landlord and Tenant. If the higher of the two determinations of such Fair Market Rental Value Per RSF does not exceed one hundred five percent (105%) of the lower of the two determinations of such Fair Market Rental Value Per RSF, then the average of the two (2) determinations shall be such Fair Market Rental Value Per RSF (and the same shall constitute the final determination thereof). If the higher of the two determinations of such Fair Market Rental Value Per RSF exceeds 105% of the lower of the two determinations of such Fair Market Rental Value Per RSF, then within five (5) Business Day after receipt by Landlord and Tenant of both appraisal reports, the Appraisers selected by Landlord and Tenant shall agree on a third. Appraiser (the “Third Appraiser”) to make a determination of such Fair Market Rental Value Per RSF. The Third Appraiser shall not make an independent determination, but shall, within ten (10) Business Days after his or her designation, select one (1) of the two (2) determinations already made, whichever of the two determinations the Third Appraiser determines to be closest to such Fair Market Rental Value Per RSF, as the controlling determination with Tenant's notice respect to such Fair Market Rental Value Per RSF. The decision of exercisethe Third Appraiser shall be conclusive and binding; and such Fair Market Rental Value Per RSF shall be as set forth in such controlling determination (which shall constitute the final determination thereof). Each party shall pay the costs of its Appraiser and one-half (1/2) of the cost of the Third Appraiser. ________________________________________________________________________________________________________________________
(3) The instructions to the Appraisers with respect to the determination of such Fair Market Rental Value Per RSF will be to determine the same solely in accordance with the definition Fair Market Rental Value Per RSF as set forth in this Lease (including the criteria and assumptions set forth therein). The Appraisers shall have no authority to alter any provisions of such definition, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution any other provisions of this Lease.
(4) Within thirty (30) days following the final determination of such Fair Market Rental Value Per RSF, Tenant shall elect one (1) of the following options by written notice to Landlord: (A) to revoke the exercise of the pertinent Renewal Option, in which event, the Term shall automatically, and without further action of Landlord or Tenant, expire on the later of (1) the expiration of the Initial Term (or, if applicable, the expiration of the Renewal Term with respect to the immediately preceding Renewal Option) or (2) the last day of the calendar month that is six (6) months following the month in which Tenant’s notice of revocation was given to Landlord; or (B) to ratify its exercise of the pertinent Renewal Option. If Tenant's financial condition has declined in Landlord's business judgmentTenant fails to exercise either of the foregoing options within such thirty (30) day period, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that then Tenant shall be deemed to have no additional elected option periods (B). If Tenant elects (or is deemed to have elected) option (B), then Tenant thereby shall have irrevocably exercised the pertinent Renewal Option and Tenant may not thereafter withdraw the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement exercise of the applicable Option Term, Renewal Option.
(5) If the Fair Market Rental Value Per RSF of the Leased Premises for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option any Renewal Term shall be not have been final determined prior to the commencement of the applicable Option Renewal Term in (and, accordingly, the following manner: If Landlord actual Annual Basic Rent therefor is not finally known as of the commencement of such Renewal Term), then (i) for the period commencing on such first day of such Renewal Term and Tenant are unable to agree ending on the market rent date that such Fair Market Rental Value Per RSF is finally determined, Tenant shall make payments, on account of the Annual Basic Rent for such Renewal Term (as and when Annual Basic Rent is payable under this Lease) based upon the Annual Basic Rent Factor in effect immediately prior to such Renewal Term, and, for any Short-Term Additional Space, the STAS Basic Rental Factor in effect immediately prior to such Renewal Term, and (ii) upon such Fair Market Rental Value Per RSF being finally determined, such payments on account of Annual Basic Rent shall be reconciled with the actual Annual Basic Rent, and, within sixty thirty (6030) days after such final determination, (x) if such payments on account of Annual Basic Rent made by Tenant gives notice of its exercise of during such period were less than the Option Termactual Annual Basic Rent for such period, then Tenant shall have pay to Landlord the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration amount of such 60-day period. In the event of such revocationdeficiency, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate together with interest thereon at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidPrime Rate, and (y) if one such payments on account of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Annual Basic Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid made by Tenant during the Option Term shall be the average such period were in excess of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower oneactual Annual Basic Rent for such period, the two appraisers then Landlord shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal refund to Tenant and may not be assigned the amount of such excess, together with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldinterest thereon at the Prime Rate.
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Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, 23.1 Tenant shall have the option two (2) consecutive options to extend the initial lease term Term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"a “Renewal Option”; the term of each Renewal Option shall be referred to as a “Renewal Term”). , upon the terms and conditions contained herein, including without limitation the payment of Tenant’s Pro Rata Share of Expenses and Taxes determined on the same basis as set forth in Section 4.2 of this Lease, except that the Base Rent for each such Renewal Option shall be at ninety seven and five-tenths percent (97.5%) of the then-fair market rate for the applicable period including fair market concessions (e.g., Base Rent abatement, tenant improvements, etc.) (the “Fair Market Rate”) as set forth below.
23.2 Tenant shall exercise the option, if at all, by delivering provide notice to Landlord written notice (“Renewal Notice”) of Tenant’s exercise of the exercise Renewal Option no sooner than fifteen (15) months nor later than twelve the twelfth (1212th) months month prior to the expiration of the initial Lease Term (as may have been extended). The Fair Market Rate is the rental rate then being charged Similar Owners (including Landlord) to tenants of a similar credit quality to Tenant for space of similar quality and size as the Premises, taking into account, all relevant factors, including without limitation, age, extent and quality of tenant improvements (but without regard to any moveable fixtures or preceding Option Termequipment within the Premises or the Property or any other improvements to the Property which were paid for by Tenant), as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice length of exerciseterm, current financial reports which evidence that Tenant's financial condition on amenities of the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods Building and the Property, location and/or floor height and definition of net rentable area, reasonable projections of Base Rent payable during Rent, annual Expenses and Taxes and allowances or concessions that have been granted such as abatements, lease assumptions and existing conditions of leasehold improvement and moving allowances.
23.3 No later than the first Lease Year of each Option Term eighth (and for increases during the Option Term, as applicable8th) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined month prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty Term (60) day period aforesaidas may have been extended), and if one Landlord shall advise Tenant of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly applicable Base Rent rate for the Option Premises for the applicable Renewal Term. If the two appraisers are appointed as provided hereinTenant, each shall independently prepare an estimate of the market rent within sixty fifteen (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (6015) days after the appointment. The average date on which Landlord advises Tenant of the two closest appraisals applicable Base Rent rate for the applicable Renewal Term, shall be either (i) give Landlord final binding written notice (“Binding Notice”) of Tenant’s exercise of its Renewal Option, or (ii) if Tenant disagrees with Landlord’s determination, provide Landlord with written notice of rejection (the “Rejection Notice”). If Tenant provides Landlord with a Binding Notice, Landlord and Tenant shall enter into the renewal amendment described in Section 23.6 below upon the terms and conditions set as forth herein. If Tenant provides Landlord with a Rejection Notice, or if Tenant fails to provide Landlord with either a Binding Notice or a Rejection Notice, Landlord and Tenant shall work together in good faith to agree upon the monthly Base RentFair Market Rate for the Premises during the Renewal Term. Each party Upon agreement, Landlord and Tenant shall pay enter into the fees of renewal amendment in accordance with the appraiser appointed by such party terms and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1conditions hereof. Notwithstanding the aboveforegoing, if Landlord and Tenant fail to agree upon the Base Rent payable by Tenant during each Option Term Fair Market Rate within thirty (30) days the Fair Market Rate shall be determined in addition to all Additional Rent and other sums and charges payable by Tenant under accordance with the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except arbitration procedures described in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldSection 23.4 below.
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Options to Renew. Provided that no Event So long as Tenant is not or has not been in default (subject to applicable notice and cure periods) during the original Term of Default by Tenant under this Lease exists as of Lease, and subject and secondary to Deloitte Consultings’ right to expand into the date of exercise of the applicable option or Suite 111 at the expiration end of the initial term or preceding Option this original Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, exercisable by delivering to giving Landlord written notice of the exercise no sooner than fifteen (15) months nor later than at least twelve (12) months prior to the expiration of the initial original Term of this Lease to extend the Term of this Lease for an additional period of five (5) years. In the event that Tenant fails to give such notices to Landlord in the way and manner herein provided, or preceding Option fails to execute a lease renewal agreement in the manner described below, this Lease shall automatically terminate at the expiration of the then current Term, as applicableand Tenant shall have no further option to extend this Lease. Tenant's right to exercise each option The terms and conditions shall be conditioned upon the same terms and conditions as during the initial five (5) year Term, except that (i) this option to renew shall be eliminated, and (ii) the Minimum Annual Rent shall be increased to the then current rate as established by Landlord in accordance with the following: Upon receipt of Tenant’s written notice that it is exercising an option to renew, Landlord shall tender to Tenant delivering multiple counterparts of a lease renewal agreement setting forth the new rent established by Landlord, taking into account Landlord’s evaluation of all relevant factors, including without limitation the rent being charged for comparable space in the Center, the length of the renewal term, the conditions of the space, Tenant’s relative financial strength, and the desired tenant mix. Tenant shall perfect its renewal rights by executing and returning to Landlord with thirty (30) days after receipt an executed counterpart of the lease renewal agreement. In the absence of Tenant's notice ’s execution and delivery of exercisethe lease renewal agreement within such thirty (30) day period, current financial reports which evidence that Tenant's financial condition on ’s right to renew shall terminate, and the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants Term of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate expire at the end of the initial term, or then Option current Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
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Samples: Lease (Longport Inc)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as is then in effect and Tenant is not in default under the terms of the date of exercise of the applicable option or this Lease at the expiration time of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leaseexercise, Tenant shall have the option three (3) options to extend the initial lease term renew this Lease for four (4) additional, successive terms a period of five (5) years each (each, an "OPTION TERM"“Extension Period”). Tenant shall exercise the optionan option to renew, if at all, by delivering providing written notice to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve eight (12) 8) months prior to the scheduled expiration date of the initial Lease Term or preceding Option Termthe then-current Extension Period, as applicablethe case may be. Tenant's right to If Tenant shall exercise each option an option, the applicable Extension Period shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on commence immediately following the expiration date of exercise is equal the initial Term or the then-current Extension Period, as the case may be, and shall expire five (5) full years thereafter, subject to or better than Tenant's financial condition on the date of execution of same terms and conditions contained in this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided except that Tenant shall have no additional option periods further options to renew, and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the at then-prevailing market rate then prevailing as projected rates for the commencement space of the applicable Option Term, for premises comparable in size, quality and location location, taking into consideration all of the rental abatement, tenant improvement allowances, commissions and any other tenant inducements then being given to new tenants of similar size and credit in comparable first-class R&D/Office warehouse buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day periodSalt Lake City. In the event Landlord and Tenant cannot reach an agreement on the determination of such revocationfair market rent for an Extension Period, then the parties shall submit the determination to binding arbitration. If Tenant shall forfeit all rights to thereafter exercise default in the payment or performance of any option obligation under this Lease and subsequent to Tenant’s exercise of its renewal option but prior to the Lease shall terminate at the end beginning of the initial termExtension Period, or then Option TermLandlord may, as applicable. If Tenant does not revoke at its exercise option and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent any other remedies, declare Tenant’s renewal option null and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldvoid.
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Options to Renew. Provided that no Event of Default by Landlord hereby grants Tenant under this Lease exists as two (2) options to renew the term of the date of exercise of Lease, upon the applicable option or at following terms and conditions:
(a) Each renewal term shall be for five (5) years, commencing on the day following the expiration date of the initial term or preceding Option Termand the first renewal term, and provided further that as the case may be;
(b) Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years must exercise each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord upon at least ninety (90) days' written notice to Landlord, prior to the expiration date of the exercise no sooner initial term and the first renewal term, as the case may be;
(c) At the time Tenant delivers its notice of election to renew to Landlord, this Lease shall be in full force and effect and Tenant shall not then be in default under any of the material terms and conditions of the Lease beyond any applicable cure period;
(d) Each renewal term shall be upon the same terms, covenants and conditions contained in the Lease, except that the annual Base Rent for the first renewal term shall be the rent set forth in Exhibit I attached hereto, and except that the annual Base Rent for the second renewal term shall be the rent set forth in Exhibit I attached hereto;
(e) Tenant shall continue to pay Tenant's Percentage of operation Costal
(f) In the event that Tenant assigns this Lease to other than fifteen (15) months nor later than twelve (12) months a Permitted Transferee at any time prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution term of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse there shall be no further right or privilege to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during renew the applicable Option Term. All terms, provisions, conditions and covenants term of this Lease shall remain in full force and effect during for the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term second renewal term; and
(and for increases during the Option Term, as applicableg) There shall be no further privilege of renewal beyond the market rate then prevailing as projected for the commencement second renewal term. If Tenant exercises one or both of the applicable Option Termtwo options to renew, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable shall execute and deliver an amendment to agree on this Lease confirming the market rent within sixty (60) days after Tenant gives notice of its exercise commencement and expiration dates of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial renewal term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent the renewal term, and any other sums relevant terms and charges payable conditions agreed upon by Landlord and Tenant under applicable during the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldrenewal term.
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Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have two (2) successive options to renew the option to extend Term of the initial lease term Lease upon its expiration for four (4) additional, successive terms an additional period of five (5) years each (eacheach a “Renewal Term,” which shall be deemed part of the Term), an "OPTION TERM"). subject to the following provisions:
(A) In order to exercise either option to renew the Lease, Tenant shall exercise the option, if at all, by delivering to must give Landlord written notice of the exercise no sooner its interest to renew not earlier than fifteen (15) months nor 365 days and not later than twelve (12) months prior to 180 days before the expiration of the initial Lease Term or preceding Option then-applicable Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice Within ten (10) days of exercise, current financial reports which evidence that Tenant's financial condition on the date receipt of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgmentsuch notice, Landlord may refuse shall provide to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord , in its business judgment to secure Tenant's obligations during writing, the applicable Option proposed Rent for such Renewal Term. All terms, provisions, conditions and covenants terms of this the Lease shall remain in full force and effect for each Renewal Term, except that the Rent applicable during the Option Termsperiod of renewal shall be at the then-prevailing market rate of Rent and all other charges for first-class space, provided with such market rate to reflect such factors as the Tenant’s use of the premises, location of the Building, size of rental area, condition of the Premises, and the time the particular rate under consideration becomes effective. However, in no event shall the Rent for either Renewal Term be less than that in effect at the expiration of the immediately preceding Term of the Lease. Tenant shall, within thirty (30) days of receipt from Landlord of the proposed Rent for the Renewal Term, notify Landlord that it is exercising its option to renew. If Tenant fails to so notify Landlord within such thirty (30) day period, Tenant shall be deemed to have no additional option periods failed to exercise its right for a Renewal Term and the Base Rent payable during the first Lease Year all of each Option Term (Tenant’s then-remaining rights and for increases during the Option Term, as applicable) options to renew shall be automatically terminated and of no further force or effect.
(B) If Tenant does not accept Landlord’s determination of the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable Rent contained in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors a notice to Tenant under subsection (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60A) days after Tenant gives notice of its exercise of the Option Termabove, then Tenant shall within 10 days after receiving Landlord’s statement notify Landlord in writing that it elects to have the right to revoke its exercise such value determined by a panel of the option 3 licensed real estate brokers or appraisers, one of whom shall be selected by delivering written notice Landlord within ten (10) 3 days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at after the end of such 10 day period, one of whom shall be selected by Tenant within 3 days after the initial termend of such 10 day period, and the third of whom shall be selected by the first two within 3 days after the first two are selected. Each broker or then Option appraiser, within 10 days after the third such party is so selected, shall submit a determination of such market Rent, and the average of the two closest determinations shall be binding on the parties for purposes of calculating rent during the relevant Renewal Term, as applicable. Landlord and Tenant shall each pay the fee of the broker or appraiser selected by it and they shall share equally the payment of the fee of the third such party. If Tenant does not revoke notify Landlord within the 10 day period described above of its exercise and elects election to proceed with have the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be rate determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiserindependent panel, then the rate set by such appraiser as set forth below in Landlord’s notice given under subsection (A) above shall be binding on the Base Rent parties for the Option relevant Renewal Term. .
(C) If the parties cannot agree on a single appraiser, then each party, by giving written Tenant fails to give notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration exercising either of the sixty (60) day period aforesaidforegoing options by the date required herein, and or if one at the time Tenant exercises either such option or at commencement of the parties does not appoint an appraiser within that time, applicable Renewal Term the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined Tenant is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees in default of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms term of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of , or if this Lease except is assigned by Tenant or the Premises sublet in connection with an assignment to an entity which controlswhole or in part, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially then all of Tenant's assets with Landlord's prior written consent, not ’s then-remaining rights and options to renew shall be unreasonably withheldautomatically terminated and of no further force or effect.
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Samples: Office Lease Agreement (Republic Airways Holdings Inc)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as Section 3.2 of the date Original Lease (Extension Options) is hereby deleted in its entirety and of exercise of no further force and effect. Provided the applicable option or at Lease, as amended hereby, is in full force and effect and Tenant is not in default beyond the expiration of any applicable notice and cure periods under any of the initial term other terms and conditions of the Lease, as amended hereby, at the time of notification or preceding Option Term, and provided further that Tenant has not assigned this Leasecommencement, Tenant shall have two (2) options to renew (each, a “Renewal Option”) the option to extend Extended Term (thereby extending the initial lease Extended Termination Date accordingly), each for a term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"a “Renewal Term”). , for the entire Premises being leased by Tenant as of the date the applicable Renewal Term is to commence or, at Tenant’s option, two (2) full floors of the Premises as described herein as of the Extension Date (i.e, the third, fourth and fifth floors of the Building), on the same terms and conditions set forth in the Lease, as amended hereby, except as modified by the terms, covenants and conditions as set forth below:
14.1 If Tenant elects to exercise the applicable Renewal Option, then Tenant shall exercise the option, if at all, by delivering to provide Landlord with written notice of exercise (the exercise “Renewal Notice”) no sooner earlier than fifteen the date which is three hundred sixty (15360) months nor later than twelve (12) months days prior to the expiration of the initial Lease then current Term or preceding but no later than the date which is two hundred seventy (270) days prior to the expiration of the then current Term. The Renewal Notice shall designate whether Tenant is exercising the applicable Renewal Option Termwith respect to the entire Premises then leased hereunder, as applicable. Tenant's right or, if Tenant is exercising the applicable Renewal Option with respect to exercise each option two (2) full floors of the Premises, and if the Renewal Notice does not include such designation, it shall be conditioned upon Tenant delivering deemed to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on apply to the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Leaseentire Premises. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees fails to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All termssuch notice, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no further or additional option periods and right to extend or renew the Extended Term.
14.2 The Base Rent payable during in effect at the first Lease Year expiration of each Option the then current Term (and for increases during the Option Term, as applicable) shall be adjusted to reflect the market rate then prevailing Prevailing Market (as projected for the commencement defined in Section 14.8) rate. Landlord shall advise Tenant of Landlord’s opinion of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). new Base Rent for the Option Term Premises no later than thirty (30) days after receipt of Tenant’s written request therefor. Said request shall be determined made no earlier than thirty (30) days prior to the commencement of first date on which Tenant may exercise the applicable Renewal Option Term in the following manner: under this Section 14.
14.3 If Tenant and Landlord and Tenant are unable to agree on a mutually acceptable Base Rent for the market rent within applicable Renewal Term not later than sixty (60) days after Tenant gives notice of its exercise prior to the expiration of the Option then current 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 applicable Renewal Term (collectively referred to as the “Estimates”). If the higher of 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 average of the two Estimates. If the Prevailing Market rate is not established by the exchange of Estimates, then, within seven (7) days after the exchange of Estimates, Landlord and Tenant shall have the right each select an appraiser to revoke its exercise determine which of the option two Estimates most closely reflects the Prevailing Market rate for the Premises during the applicable 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 (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 an MAI designation conferred by, and is an independent member of, the American Institute of Real Estate Appraisers (or 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).
14.4 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 delivering written notice such appraisers shall be binding on both Landlord and Tenant. If either Landlord or Tenant fails to appoint an appraiser within the seven (7) 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 rate within twenty (20) days after their appointment, then, within ten (10) days following after the expiration of such 60-twenty (20) day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove 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 ten fourteen (1014) days thereafter who will likewise independently estimate days, the market rate within sixty (60) days after the appointment. The average arbitrator shall make his or her determination of which of the two closest appraisals Estimates most closely reflects the Prevailing Market rate and such Estimate shall be set binding on both Landlord and Tenant as the monthly Base RentPrevailing Market rate for the Premises. Each party 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 pay share equally in the fees costs of the appraiser appointed arbitrator and of any experts retained by such party and the parties will share equally the arbitrator. Any fees of any third appraiser appointed pursuant to this Section A-2.1appraiser, counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such appraiser, counsel or expert.
14.5 If the Prevailing Market rate has not been determined by the commencement date of the applicable Renewal Term, Tenant shall pay monthly Base Rent upon the same rate (on a per rentable square foot basis) in effect during the last month of the then current Term until such time as the Prevailing Market rate has been determined. Notwithstanding the aboveUpon such determination, the Base Rent payable by Tenant during each Option for the Premises shall be retroactively adjusted to the commencement of such Renewal Term for the Premises.
14.6 The Renewal Options are not transferable except to an Affiliate Transferee; the parties hereto acknowledge and agree that they intend that the aforesaid options to renew the Extended Term shall be “personal” to Tenant as set forth above and that in addition no event will any assignee or sublessee (other than an Affiliate Transferee) have any rights to all Additional Rent exercise the Renewal Options.
14.7 If Tenant fails to validly exercise the first Renewal Option, Tenant shall have no further right to extend the Extended Term. In addition, if both Renewal Options are validly exercised or if Tenant fails to validly exercise the second Renewal Option, Tenant shall have no further right to extend the Extended Term.
14.8 For purposes of this Section 14, “Prevailing Market” shall mean the arms length fair market annual rental rate per rentable square foot under renewal leases and other sums 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 charges payable by Tenant under buildings comparable to the Building in the same rental market in the South of Market district of San Francisco, California as of the date the applicable Renewal Term is to commence, taking into account the specific provisions of this Lease which will remain constant. The determination of Prevailing Market shall take into account any material economic differences between the terms of this LeaseLease 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. Tenant acknowledges that The determination of Prevailing Market shall also take into consideration any reasonably anticipated changes in the options granted herein are personal to Tenant Prevailing Market rate from the time such Prevailing Market rate is being determined and may not be assigned with an assignment of the time such Prevailing Market rate will become effective under this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldAmendment.
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Options to Renew. 28.01 Provided that no Event of Default by the named Tenant under this Lease exists as herein is still occupying the entire Premises and is not in default of the date of exercise of the applicable option or at Lease after notice to Tenant and the expiration of the initial term or preceding Option Termapplicable cure period, and provided further that Tenant has not assigned either at the time of exercise of this Lease, option of upon the commencement of the Extended Term (as hereinafter defined): Tenant shall have the option to extend renew (herein the initial lease term “Option to Renew”) the Lease for four up to two (42) additional, successive terms of additional five (5) years year terms (each such term being an “Extended Term” and collectively referred to as the “Extended Terms”) on the same terms, covenants and conditions of this Lease except that the triple net Base Rent (each, an "OPTION TERM"). net only as to those Landlord Maintenance and Replacement Costs required under Section 6.02 of this Lease to be borne by Landlord) payable by Tenant during each such Extended Term shall exercise the option, be either:
(a) if at allthe time of Tenant’s exercise of its Option to Renew (which shall be within the time period set forth below) the initial Landlord, Rockside-700 LLC. shall not have previously transferred its interest in the Building to a third party, then the triple net Base Rent shall be the lower of i) the prevailing market rate for comparable leases for life science lab office space in Gaithersburg, Maryland (the “Fair Market Rental”) expressly taking into consideration the size of the Premises, the length of the Extended Term, the creditworthiness of the Tenant, any concessions available in the market and the absence of additional Tenant Improvements or ii) 1.02 times the then escalated Base Rent for the last year of the Term or
(b) in all other instances, then the triple net Base Rent shall be equal to 90% of the Fair Market Rental expressly taking into consideration the size of the Premises, the length of the Extended Term, the creditworthiness of the Tenant, any concessions available in the market and the absence of additional Tenant Improvements. If the Fair Market Rental calculation is used and determined as described in either (a) or (b) in the immediately preceding sentence it shall apply to the first Lease Year of the respective Extended Term only. The Base Rent (as same shall be determined and escalated from time to time as set forth herein) shall be escalated annually by delivering 2% during each such Extended Term. Provided that the aforesaid conditions are met, Tenant may exercise its Option to Renew by giving Landlord irrevocable written notice of the exercise no sooner than at least fifteen (15) months nor later but not more than twelve twenty-four (1224) months prior to the expiration then applicable Lease Expiration Date. Once Tenant exercises its Option To Renew as set forth above, Tenant may not revoke said notice and shall be deemed to have renewed the lease for the entire particular exercised Extended Term. If Tenant shall fail to timely exercise the aforesaid Option to Renew for the first Extended Term, then and in such event, all rights of Tenant to both Extended Terms hereof shall be of no further force or effect, time being of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Leaseessence. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have exercised its Option to Renew for the first Extended Term but fail to timely exercise the aforesaid Option to Renew for the second Extended Term, then and in such event, all rights of Tenant to the second Extended Term hereof shall be of no additional option periods further force or effect, time being of the essence. Notwithstanding the foregoing, Tenant shall not be entitled to any Allowance during either Extended Term, nor shall Tenant be entitled to any renewal term beyond the second Extended Term. In the event the parties are unable to agree upon the Fair Market Rental for either of the Extended Terms, within thirty (30) days following Tenant’s written notice to Landlord exercising its option, the Fair Market Rental shall be determined by a board of three (3) licensed real estate brokers, one of whom shall be named by Landlord, one by Tenant, and the third selected by the two (2) brokers selected by the Landlord and the Tenant. All of said brokers shall be licensed real estate brokers in the State of Maryland, shall specialize in commercial leasing having not less than ten (10) years’ experience in the specific submarket in which the Building is located and shall be recognized as ethical and reputable within their industry. The parties agree to select their respective designated brokers within ten (10) days after written request from the other party. The third broker shall be selected within fifteen (15) days after both of the first two (2) brokers have been selected. Within fifteen (15) days after the third broker has been selected all of the brokers shall meet to attempt to agree upon the Fair Market Rental. If they are unable to reach agreement, they shall within said fifteen (15) day period submit in writing the prevailing market rate they deem appropriate and the Fair Market Rental shall be the amount which is the mean between the two (2) closest amounts determined by two (2) of the brokers. Each of the parties shall pay all costs and brokerage fees (if applicable) for the costs of the services of the broker selected by it and the costs and brokerage fees (if applicable) of the third broker shall be divided equally between the Landlord and Tenant. It is understood and agreed by the parties that the determination of the brokers shall be binding upon the parties. Within ten (10) days of the request of Landlord, Tenant shall execute and deliver an amendment to the Lease memorializing the particular Extended Term and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Options to Renew. Provided that Section 5 of the First Amendment (Extension Options) is hereby deleted in its entirety and is of no Event further force or effect. Notwithstanding the foregoing, Tenant, provided the Lease, as amended hereby, is in full force and effect and Tenant is not in default under any of Default the other terms and conditions of the Lease, as amended hereby, at the time of notification or commencement, shall have two (2) options to renew (each, a “Renewal Option”) the Lease, each for a term of sixty (60) months (each, a “Renewal Term”), for the portion of the Premises being leased by Tenant under this Lease exists as of the date of exercise of the applicable option or at Renewal Term is to commence, on the expiration of same terms and conditions set forth in the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, as amended hereby, except as modified by the terms, covenants and conditions as set forth below:
6.1.1 If Tenant elects to exercise the applicable Renewal Option, then Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to provide Landlord with written notice of no earlier than the exercise no sooner than fifteen date which is four hundred fifty (15450) months nor later than twelve (12) months days prior to the expiration of the initial then current Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exerciseamended hereby, current financial reports which evidence that Tenant's financial condition on but no later than the date which is three hundred sixty five (365) days prior to the expiration of exercise is equal to or better than Tenant's financial condition on the date of execution of this Leasethen current Lease Term, as amended hereby. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees fails to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All termssuch notice, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no further or additional option periods and right to extend or renew the Lease Term.
6.1.2 The annual Base Rent payable during and monthly installment of Base Rent in effect at the first expiration of the then current Lease Year of each Option Term (and for increases during the Option Term, as applicable) amended hereby, shall be increased or decreased to reflect the market Prevailing Market (defined below) rate then prevailing as projected of the date the applicable Renewal Term is to commence, taking into account the specific provisions of the Lease, as amended hereby, which will remain constant. Landlord shall advise Tenant of the new annual Base Rent and monthly installment of Base 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 Tenant may exercise the applicable Renewal Option under this Section 6.1. Said notification of the new Base 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 applicable Option Renewal Term, for premises comparable in size, quality . .
6.1.3 If Tenant and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on a mutually acceptable annual Base Rent and monthly installment of Base Rent for the market rent within Renewal Term not later than sixty (60) days after Tenant gives notice of its exercise prior to the expiration of the Option then current Lease 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 applicable Renewal Term (collectively referred to as the “Estimates”). If the higher of such Estimates is not more than one hundred three percent (103%) of the lower of such Estimates, then the Prevailing Market rate shall be the average of the two Estimates. If the Prevailing Market rate is not established by the exchange of Estimates, then, within seven (7) days after the exchange of Estimates, Landlord and Tenant shall have the right each select an appraiser to revoke its exercise determine which of the option two Estimates most closely reflects the Prevailing Market rate for the Premises during the applicable 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 (5) years experience within the previous ten (10) years as a real estate appraiser working in Sunnyvale, California, 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 (or 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).
6.1.4 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 delivering written notice such appraisers shall be binding on both Landlord and Tenant. If either Landlord or Tenant fails to appoint an appraiser within the seven (7) 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 rate within twenty (20) days after their appointment, then, within ten (10) days following after the expiration of such 60-twenty (20) day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove 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 ten fourteen (1014) days thereafter who will likewise independently estimate days, the market rate within sixty (60) days after the appointment. The average arbitrator shall make his or her determination of which of the two closest appraisals Estimates most closely reflects the Prevailing Market rate and such Estimate shall be set binding on both Landlord and Tenant as the monthly Base RentPrevailing Market rate for the Premises. Each party 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 pay share equally in the fees costs of the appraiser appointed arbitrator and of any experts retained by such party and the parties will share equally the arbitrator. Any fees of any third appraiser appointed pursuant appraiser, counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such appraiser, counsel or expert.
6.1.5 If the Prevailing Market rate has not been determined by the commencement date of the applicable Renewal Term, Tenant shall pay monthly installments of Base Rent upon the terms and conditions in effect during the last month of the then current Lease Term until such time as the Prevailing Market rate has been determined. Upon such determination, the annual Base Rent and monthly installments of Base Rent for the Premises shall be retroactively adjusted to the commencement of such Renewal Term for the Premises.
6.1.6 The Renewal Options are not transferable; the parties hereto acknowledge and agree that they intend that the aforesaid options to renew this Lease shall be “personal” to Tenant as set forth above and to a Permitted Assignee and that in no event will any assignee or sublessee have any rights to exercise the Renewal Options.
6.1.7 If Tenant fails to validly exercise the first Renewal Option, Tenant shall have no further right extend the Lease Term. In addition, if both Renewal Options are validly exercised or if Tenant fails to validly exercise the second Renewal Option, Tenant shall have no further right to extend the Lease Term.
6.1.8 For purposes of this Section A-2.16.1, “Prevailing Market” shall mean the arms length fair market annual rental rate per rentable square foot under new and 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 Sunnyvale, California but excluding Xxxxxxx Towers and Technology Corners as of the date the applicable Renewal Term is to commence, taking into account the specific provisions of the Lease, as amended hereby, which will remain constant, and may, if applicable, include parking charges. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term The determination of Prevailing Market shall be in addition to all Additional Rent and other sums and charges payable by Tenant under take into account any material economic differences between the terms of this the Lease. Tenant acknowledges that , as amended hereby, and any comparison lease or amendment, such as rent abatements, tenant improvement allowances, construction costs and other concessions and the options granted herein are personal to Tenant manner, if any, in which the landlord under any such lease is reimbursed for operating expenses, insurance costs and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldtaxes.
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Samples: Lease Agreement (ShoreTel Inc)
Options to Renew. Provided that no Event Tenant at its option may renew the term of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four two (42) additional, successive additional terms of five (5) years each (each, an a "OPTION TERMRenewal Option"). Tenant shall exercise the option, if at all, give Landlord notice of its intent to renew by delivering written notice delivered to Landlord written notice of the exercise no sooner than fifteen at least eighteen (1518) months nor later than twelve (12) months prior to before the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition , and if the first Renewal Option has declined in Landlord's business judgmentbeen properly exercised, Tenant shall give Landlord may refuse notice of its intent to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable renew for the second renewal Term by written notice delivered to Landlord in its business judgment to secure Tenant's obligations during at least eighteen (18) months before the applicable Option Term. All terms, provisions, conditions and covenants expiration of the first renewal Term of this Lease shall remain in full force and effect during the Option Terms(each, an "Intent Notice"); provided that Tenant shall have no additional option periods and at the Base Rent payable during the first Lease Year time of each Option Term (Intent Notice and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for at the commencement of both the first and second renewal Terms, no event of default by Tenant as defined in this Lease is in existence, and provided further that Tenant furnishes current financial statements to Landlord and that no material, adverse change in the financial condition of Tenant since May 1, 1998, has occurred. Upon the service of the Intent Notice, Landlord shall within thirty (30) days thereafter furnish to Tenant a notice containing the new Annual Rent figure for the applicable Option renewal Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout . The portion of the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base new Annual Rent for the Option figure not attributable to Initial Operating Expense Basic Cost payable during each renewal Term shall be determined prior to the commencement at ninety-five percent (95%) of the applicable Option fair market rental rate as determined for each renewal Term in the following manner: If Landlord and Tenant are unable pursuant to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option TermSection 5 below, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease Annual Rent shall terminate at also include a new amount for the end of Initial Operating Expense Basic Cost, which shall be adjusted to reflect the initial term, or then Option Term, as applicablethen-current Initial Operating Expense Basic Cost figure for the Building. If Tenant does not revoke its exercise and elects to proceed agree with the Landlord's determination of market rentthe new Annual Rent figure, Tenant shall notify Landlord, and the parties shall then proceed to negotiate in good faith concerning the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Termnew Annual rent figure. If the parties canhave not agree on a single appraiseragreed upon the new Annual Rent amount by the date which is ninety (90) days from the date upon which Landlord received Tenant's Intent Notice, then each partyTenant may notify Landlord that it is withdrawing the Intent Notice, and the applicable Renewal Option shall be deemed to be no longer available to Tenant or of any force or effect. If Tenant fails to withdraw its Intent Notice by giving written notice the date which is ninety (90) days from the date upon which Landlord received Tenant's Intent Notice, then Tenant shall be deemed to have exercised the applicable Renewal Option, and subject to the other party, shall appoint as an appraiser an experienced commercial real estate agent conditions set forth in the area in which second sentence of this paragraph, this Lease shall be extended by execution of an amendment to this Lease incorporating the renewal Term and the new Annual Rent rate for the renewal Term, determined as provided below. The first renewal Term shall commence upon the expiration date of the initial Term of this Lease and expire at midnight of the day prior to the annual anniversary of such date five (5) years thereafter, and the second renewal Term shall commence upon the expiration date of the first renewal Term of this Lease and expire at midnight of the day prior to the annual anniversary of such date five (5) years thereafter. Each such renewal Term shall include all of the Premises are located. Said appointment then covered by the Lease, and shall be made within ten upon the same terms, covenants and conditions as provided in this Lease for the initial Term, except that (10i) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does Annual Rent not appoint an appraiser within that time, the single appraiser named attributable to Initial Operating Expense Basic Cost payable during each renewal Term shall be at the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed rate initially proposed by Landlord as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten ninety- five percent (1095%) of the lower estimatefair market rental rate as determined for each renewal Term pursuant to Section 5 below, then unless the monthly Base parties have agreed upon a different rate, in which case the Annual Rent not attributable to Initial Operating Expense Basic Cost shall be at the rate agreed, and (ii) the Annual Rent shall also include a new amount for the Initial Operating Expense Basic Cost, which shall be adjusted to reflect the then-current Initial Operating Expense Basic Cost figure for the Building, and thereafter Tenant shall pay all Additional Rent applicable to the Expansion Space, and Annual Rent shall be increased, adjusted, or augmented as provided in and under this Lease, and (iii) Landlord shall provide a tenant improvement allowance at the commencement of the first Renewal Term of $10.00 per square foot of Rentable Area included within the Premises, and at the commencement of the second Renewal Term of $12.50 per square foot of Rentable Area included within the Premises. Payment of all Additional Rent and any other Rent required to be paid by Tenant as provided in this Lease for the initial Term shall continue to be made during the Option Term shall be the average of the amounts determined by the appraisersrenewal Terms. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms Any termination of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an , any assignment of this Lease and/or any subletting of the Premises terminates the Renewal Options, except in connection with the case of an assignment or sublease by Tenant to an entity which controlscontrolling, is controlled by by, or is under common control with Tenant, or to any firm or company into or within which Tenant (as defined in Article 20 of this Lease) may be merged or consolidated, or which is a successor to Tenant by merger, consolidation purchases all or sale of substantially all of the assets or stock of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
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Options to Renew. A. Provided that no Event default exists and Tenant or a Permitted Transferee (as hereinafter defined) is occupying the entire Premises at the time of Default by such election, Tenant under or a Permitted Transferee may renew this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms an additional period of five (5) years each (each, an "OPTION TERM"the “First Extension Term”) on the same terms provided in this Lease (except as set forth below). Tenant shall exercise the option, if at all, by delivering written notice (the “Renewal Notice”) of the exercise thereof to Landlord written at least twelve (12) months prior to the Expiration Date of this Lease. Upon Tenant’s or a Permitted Transferee’s timely notice of the exercise no sooner than of the option to renew for the First Extension Term, the Lease shall be extended on the same terms provided in this Lease, except as follows:
(a) The Base Rent payable during such First Extension Term shall be the Fair Market Rental Rate (as hereinafter defined), for buildings comparable to the Project in Miami-Dade County, Florida, at the commencement of such First Extension Term, for space of equivalent quality, size, utility and location, with the length of the First Extension Term, concessions, allowances, brokers’ fees and the credit standing of Tenant or the Permitted Transferee to be taken into account; and
(b) Landlord shall lease to Tenant or the Permitted Transferee the Premises in their then current condition, and Landlord shall not provide to Tenant or the Permitted Transferee any allowances (e.g., moving allowance, construction allowance, tenant improvements allowance and the like) or other tenant inducements. For purposes of this Section 52, the Fair Market Rental Rate (the “FMRR”) shall mean the rent, as of the date in question, which a landlord, willing but not obligated to lease, would accept for the Premises, and which a tenant, willing but not obligated to rent, would pay therefor in an arms-length transaction. Landlord shall deliver written notice (the “Landlord Notice”) to Tenant or the Permitted Transferee, within thirty (30) days after Landlord’s receipt of a timely Renewal Notice, which sets forth the FMRR as determined by Landlord to be payable during the applicable Extension Term after consideration of the factors set forth above. Tenant or the Permitted Transferee shall have the right, within thirty (30) days following the date of the Landlord Notice, to deliver written notice that it accepts Landlord’s determination of the FMRR, or that it disagrees with Landlord’s determination of the FMRR. Thereafter, if the parties are unable to agree as to the FMRR by the date that is sixty (60) days following the Renewal Notice, either party may give written notice that it is designating an appraiser (the “First Appraiser”) to determine the FMRR. Within fifteen (15) months nor later days after the service of such notice, the other party shall give written notice to the party giving the first notice, which notice shall designate the second appraiser (the “Second Appraiser”). If the Second Appraiser is not so designated by the time above specified, then the party designating the First Appraiser may request appointment of the Second Appraiser by the president of the Miami Chapter of the American Institute of Real Estate Appraisers (the “Appraisal President”). The First and Second Appraisers so designated or appointed shall meet within ten (10) days after the Second Appraiser is appointed; and if within thirty (30) days after the Second Appraiser is appointed, the First and Second Appraisers do not agree upon the FMRR, they shall then (i) each report to Landlord and Tenant or the Permitted Transferee their respective determinations of the FMRR, and (ii) appoint a Third Appraiser (the “Third Appraiser”). If the First Appraiser and Second Appraiser are unable to agree upon the Third Appraiser within ten (10) days, the parties shall request that such appointment be made by the Appraisal President. In the event of the failure, refusal or inability of any appraiser to act, a new appraiser shall be appointed in his stead, which appointment shall be made in the same manner as herein before provided for the appointment of such appraiser so failing, refusing or being unable to act. Within thirty (30) days after his appointment, the Third Appraiser shall select either the determination of the First Appraiser or the determination of the Second Appraiser as the FMRR, and such determination shall be final and binding upon the parties. Each party shall pay the fees and expenses of the appraiser appointed by such party, and the fees and expenses of the Third Appraiser, and all other expenses, if any, shall be borne by the party whose determination of FMRR was not selected by the Third Appraiser. Any appraiser designated to serve as above provided shall be disinterested, shall be a member of the American Institute of Real Estate Appraisers, and shall be familiar with commercial property values in Miami-Dade County. For purposes of this Section 52, the term “Permitted Transferee” shall mean any Affiliate to whom the Lease has been assigned pursuant to the terms of Section 15 of the Lease. Tenant’s or the Permitted Transferee’s right to extend the term of this Lease for the First Extension Term shall terminate if (i) this Lease or Tenant’s or the Permitted Transferee’s right to possession of the Premises is terminated, (ii) Tenant or the Permitted Transferee, at any time during the Lease Term, assigns any of its interest in this Lease or sublets any portion of the Premises (other than to an Affiliate by Tenant in accordance with the terms of Section 15 of the Lease), or (iii) Tenant or the Permitted Transferee fails to timely exercise its option under this Section 52A. for the First Extension Term, time being of the essence with respect to Tenant’s or the Permitted Transferee’s exercise thereof.
B. Provided no default exists and Tenant or a Permitted Transferee is occupying the entire Premises at the time of such election, Tenant or a Permitted Transferee may renew this Lease for a second additional period of five (5) years (the “Second Extension Term”) on the same terms provided in this Lease (except as set forth below), by delivering written notice (the “Second Renewal Notice”) of the exercise thereof to Landlord at least twelve (12) months prior to the expiration of the initial Lease Term First Extension Term. Upon Tenant’s or preceding Option a Permitted Transferee’s timely notice of the exercise of the option to renew for the Second Extension Term, as applicable. Tenant's right to exercise each option the Lease shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition extended on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of same terms provided in this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(sexcept as follows:
(a) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the The Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Second Extension Term shall be the average FMRR for buildings comparable to the Project in Miami-Dade County, Florida, at the commencement of such Second Extension Term, for space of equivalent quality, size, utility and location, with the length of the amounts determined by Second Extension Term, concessions, allowances, brokers’ fees and the appraiserscredit standing of Tenant or the Permitted Transferee to be taken into account; and
(b) Landlord shall lease to Tenant or the Permitted Transferee, the Premises in their then current condition, and Landlord shall not provide to Tenant or the Permitted Transferee any allowances (e.g., moving allowance, construction allowance, tenant improvements allowance and the like) or other tenant inducements. If Tenant’s or a Permitted Transferee’s right to extend the difference between term of this Lease for the two estimates exceeds ten percent Second Extension Term shall terminate if (10%i) this Lease or Tenant’s or the Permitted Transferee’s right to possession of the lower onePremises is terminated, (ii) Tenant or the two appraisers shall select a third appraiser meeting Permitted Transferee, at any time during the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average First Extension Term, assigns any of its interest in this Lease or sublets any portion of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant Premises (other than to this Section A-2.1. Notwithstanding the above, the Base Rent payable an Affiliate by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under accordance with the terms of Section 15 of the Lease), or (iii) Tenant or the Permitted Transferee fails to timely exercise its option under this Lease. Tenant acknowledges that Section 52.B for the options granted herein are personal Second Extension Term, time being of the essence with respect to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by Tenant’s or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldthe Permitted Transferee’s exercise thereof.
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Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant Lessee shall have the option right, subject to the provisions hereinafter provided, to extend the initial lease term of this Lease for four two (42) additional, successive terms periods of five (5) years each (each, a “Renewal Term”), on the terms and provisions of this Subparagraph provided:
(i) this Lease is in full force and effect and Lessee is not in default in the performance of any of the terms, covenants and conditions herein contained, in respect to which notice of default has been given hereunder which has not been or is not being remedied in the time permitted in this Lease, at the time of exercise of the right of renewal and at the time set for commencement of the Renewal Term, but Lessor shall have the right at its sole discretion to waive the non-default conditions herein;
(ii) that each such Renewal Term shall be upon the same terms, covenants and conditions as provided in this Lease; provided, however, annual Base Rent for the Premises for the particular Renewal Term shall be at the then current Fair Market Rental Rate (as determined in accordance with paragraph (iv) below); provided further, however, the Base Rent for each such Renewal Term shall in no event be less than the Base Rent rate (exclusive of temporary abatement) payable by Lessee immediately prior to commencement of each such Renewal Term. Upon determination of the Base Rent rate for each such Renewal Term, the parties shall execute an "OPTION TERM"). Tenant amendment to this Lease to establish and evidence such Base Rent rate;
(iii) Lessee shall exercise its right to each of the optionRenewal Terms provided herein, if at all, by delivering notifying Lessor in writing of its election to Landlord written notice of exercise the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on renew the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the then applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors Renewal Term at least one hundred eighty (the "MARKET RENT"). Base Rent for the Option Term shall be determined 180) days prior to the commencement date of the then applicable Option Renewal Term;
(iv) Lessee’s Base Rent during each Renewal Term in shall be an amount equal to the following manner: If Landlord and Tenant are unable Fair Market Rental applicable to agree on the market rent within sixty each Renewal Term, determined as hereinafter set forth. Within ninety (6090) days after Tenant gives Lessor receives Lessee’s notice of its exercise of the Option Termelection to renew (“Negotiation Period”), then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each partyLessor shall, by giving written notice to the other partyLessee, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.deliver Lessor’s
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Samples: Build to Suit Industrial Lease Agreement (Accuride Corp)
Options to Renew. A. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the is not then in default beyond any applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leasegrace period, Tenant shall have the an option to extend the initial lease of renewing this Lease for an additional term for four (4) additional, successive terms of five (5) years each (each, an the "OPTION TERMFirst Renewal Term"). Tenant shall exercise ) from the option, if at all, tenth anniversary of the Rent Commencement Date by delivering sending to Landlord written notice postmarked on or before the first day of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration seventh month of the initial tenth Lease Year that it is extending the Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Upon Landlord's business judgment, Landlord may refuse receipt of such written notice the parties shall attempt to accept Tenant's exercise unless Tenant agrees to provide agree upon a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). fair annual Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option First Renewal Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on upon such an annual Base Rent, the determination of same shall be made by arbitration as hereinafter provided. If the annual Base Rent is determined by arbitration, it shall be the fair market rental ("FMR") of the Premises. Landlord and Tenant shall each appoint a single appraisermember of the American Institute of Appraisers who shall have at least ten (10) years' experience in appraising commercial property in Fairfield County, then Connecticut. Such appointment shall be made in writing by each party, by giving written notice party to the other party, shall appoint as an and to the appraiser an experienced commercial real estate agent in the area in which the Premises are locatedso appointed. Said appointment shall be made within ten at least ninety (1090) days following before the expiration end of the sixty (60) day period aforesaid, and if one of tenth Lease Year. In the parties does event said appraisers do not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent agree upon a FMR prior to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after before the appointmentend of the tenth Lease Year, they shall promptly appoint a third appraiser with similar qualifications and said three appraisers shall determine the FMR of the Premises prior to thirty (30) days before the end of the tenth Lease Year. The If said three appraisers are unable jointly to agree prior to thirty days before the end of the tenth Lease Year of the FMR of the Premises, then in that event an average of the two closest appraisals three values for FMR shall be set as utilized to determine same, provided the monthly Base Rentvariation between the high value and the low value does not exceed 5%. Each party shall pay In the fees event of the appraiser appointed by such party and failure of the parties will share equally the fees of any appraisers to agree upon a third appraiser appointed pursuant as aforesaid or in the event the variation between the high rental and low rental exceeds 5% or in the event that either Landlord or Tenant shall fail to this Section A-2.1appoint an appraiser as aforesaid within the time above set forth therefor, then either Landlord or Tenant shall make an application to the American Arbitration Association for the appointment of another appraiser and such appraiser, together with advice from the other appraisers, shall determine the FMR as soon as possible after his appointment. Notwithstanding During the above, First Renewal Term the annual Base Rent payable by Tenant during each Option Term shall be 100% of the FMR of the Premises. Except for said annual Base Rent change, all of the other covenants and agreements contained herein shall remain in addition force and effect during such First Renewal Term.
B. Provided Tenant is not then in default beyond any applicable grace period, Tenant shall have an option of renewing this Lease for an additional term of five (5) years (the "Second Renewal Term") from the fifteenth anniversary of the Rent Commencement Date by sending to all Additional Rent and other sums and charges payable by Tenant under Landlord written notice postmarked on or before the terms first day of the seventh month of the fifteenth Lease Year that it is extending the Term of this Lease. Upon Landlord's receipt of such written notice the parties shall attempt to agree upon a fair annual Base Rent for the Second Renewal Term. In the event the parties cannot agree upon such an annual Base Rent, the determination of same shall be made by arbitration. If the annual Base Rent is determined by arbitration, it shall be FMR of the Premises. Landlord and Tenant acknowledges shall each appoint a member of the American Institute of Appraisers who shall have at least ten (10) years' experience in appraising commercial property in Litchfield County, Connecticut. Such appointment shall be made in writing by each party to the other and to the appraiser so appointed. Said appointment shall be made at least ninety (90) days before the end of the fifteenth Lease Year. In the event said appraisers do not agree upon a FMR prior to sixty (60) days before the end of the fifteenth Lease Year, they shall promptly appoint a third appraiser with similar qualifications and said three appraisers shall determine the FMR of the premises prior to thirty (30) days before the end of the fifteenth Lease Year. If said three appraisers are unable jointly to agree prior to thirty days before the end of the fifteenth Lease Year of the FMR of the Premises, then in that event an average or the options granted herein are personal three values for FMR shall be utilized to determine same, provided the variation between the high value and the low value does not exceed 5%. In the event of the failure of the appraisers to agree upon a third appraiser as aforesaid or in the event the variation between the high rental and the low rental exceeds 5% or in the event that either Landlord or Tenant shall fail to appoint an appraiser as aforesaid within the time above set forth therefor, then either Landlord or Tenant shall make an application to the American Arbitration Association for the appointment of another appraiser and may not such appraiser, together with advice from the other appraisers, shall determine the annual Base Rent as soon as possible after his appointment. During the Second Renewal Term the annual Base Rent shall be assigned with an assignment 100% of this Lease except in connection with an assignment to an entity which controlsthe FMR of the Premises. Except for said annual Base Rate change, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldthe other covenants and agreements contained herein shall remain in force and effect during such Second Renewal Term.
Appears in 1 contract
Options to Renew. Provided that no Event Tenant is not in default as to any provisions of Default this Lease; Tenant shall have two (2) options to renew for a period a period of 5 years each at the then fair market rent as determined in good faith by Landlord. Tenant under this Lease exists must give a minimum of 270 days prior written notice from the then expiration date of Tenants intent to renew. The Landlord shall have 30 days from receipt of such Tenants written notice to reply with the then fair market rent. Tenant shall have the Right to Terminate Early as set forth in the preceding paragraph on each 12- month anniversary during the renewal periods. This Rider is made and entered into by and between BOKP TOWER, LLC, (“Landlord”), and FullWeb, Inc. an Oklahoma corporation (“Tenant”), as of the date of exercise day and year of the applicable option Lease between Landlord and Tenant to which this Rider is attached. Landlord and Tenant hereby agree that, notwithstanding anything contained in the Lease to the contrary, the provisions set forth below shall be deemed to be part of the Lease. All references in the Lease and in this Rider to the “Lease” shall be construed to mean the Lease (and all exhibits attached thereto), as amended and supplemented by this Rider. All capitalized terms not defined in this Rider shall have the same meaning as set forth in the Lease. Tenant has received notification that asbestos containing building materials (ACBM) exist within the Building. Past inspections by two independent consulting firms to determine the location, amount, and type of ACBM concluded that the ACBM was in generally good condition and posed no health hazard unless disturbed. Landlord may engage in future asbestos abatement activities within the Building. As a result, Tenant understands that there may be temporary inconveniences caused by such abatement activities in adjoining or at nearby leased premises. In addition, in order to avoid potential hazards caused by unauthorized disturbance of ACBM within the Building, Tenant agrees that it will not allow any construction activities within the Building that involve removal of ceiling panels, or any form of penetrations above the ceiling or into building columns, without requiring the persons or entities performing such work to obtain clearance for such activities through a written permit application with the Property Manager. Tenant shall take necessary measures to insure staff compliance with these requirements pertaining to asbestos management within the 201 RSK Building. Tenant shall further report immediately to Landlord any observed evidence or indication of unauthorized or accidental disturbance of ACBM. Tenant shall indemnify Landlord for claims resulting from Tenant’s violation of this Rider and the terms of this Rider shall survive the expiration of the initial term or preceding Option TermLease term. TENANT: FullWeb, Inc. _________________________________Date:_______________________________ Xxxxx X. Xxxxxxx, CEO For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and provided further that in consideration for, and as an inducement to Landlord to make the attached Lease with Tenant has not assigned this Lease(FullWeb, Tenant shall have the option to extend the initial lease term for four (4Inc.) additionaldated November 22, successive terms of five (5) years each (each2019 by and between BOKP Tower, LLC and FullWeb, Inc., an "OPTION TERM"). Oklahoma corporation, the undersigned does hereby corporately guarantee to Landlord, without condition or limitations except as hereinafter provided, the payment of Rent and Additional Rent to be paid by the Tenant and the full performance and observance of all the terms, covenants and conditions therein provided to be performed, observed or complied with by Tenant, including the Rules and Regulations as therein provided, without requiring any notice of non-payment, non- performance or non-observance, or proof, or notice, or demand, whereby to charge the undersigned therefor, all of which the undersigned hereby expressly waives and expressly agrees that the validity of this guaranty and the obligations of the guarantor hereunder shall exercise in no way be terminated, affected or impaired by reason of the option, if at all, assertion by delivering Landlord against Tenant of any of the rights or remedies reserved to Landlord written notice pursuant to the provisions of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior attached Lease. Landlord may grant extensions of time and other indulgences and may modify, amend or waive any of the terms, covenants or conditions of the attached lease, and discharge or release any party or parties thereto, all without notice to the expiration undersigned and without in any way impairing, releasing or affecting the liability or obligation of the initial Lease Term or preceding Option Term, as applicableundersigned. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence The undersigned agrees that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse proceed directly against the undersigned without taking any action under the attached Lease and without exhausting Landlord remedies against Tenant; and no discharge of Tenant in bankruptcy or in any other insolvency proceedings shall in any way or to accept Tenant's exercise unless Tenant any extent discharge or release the undersigned from any liability or obligation hereunder. The undersigned further covenants and agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of that this Lease guaranty shall remain and continue in full force and effect during the Option Termsas to any renewal, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement modification or extension of the applicable Option Termattached Lease, for premises comparable and that no subletting and no assignment of the within Lease, without Landlord’s written consent thereto, shall release or discharge the undersigned. However, this Guarantee shall terminate if the Landlord agrees in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior writing to the commencement assignment of the applicable Option Term attached Lease. As a further inducement to Landlord to make the within Lease and in consideration therefor, the undersigned agrees that in any action or proceeding brought by either Landlord or the undersigned against the other on any matter whatsoever arising out of, under, or by virtue of any of the terms, covenants or conditions of the attached Lease or of this guaranty, the undersigned shall pay, in addition to any damages which a court of competent jurisdiction may award, such amount or amounts as the court may determine to be reasonable attorneys’ fees incurred by Landlord or its successors or assigns in the following manner: If enforcement of this guaranty. Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have Guarantor waive the right to revoke its exercise trial by jury in any action, proceeding or counterclaim involving enforcement of this guaranty or involving the option by delivering written notice within ten (10) days following the expiration of such 60-day periodright to any statutory relief or remedy. In the event of such revocation, Tenant shall forfeit all All rights to thereafter exercise any option under this Lease and the Lease Guaranty shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice inure to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees benefit of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms successors or assigns of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at A. If (i) immediately prior to the expiration of the initial term or preceding Option Lease Term, Tenant is in actual occupancy of the Premises and provided further that Tenant has not assigned this Lease or sublet any portion of the Premises (other than pursuant to an assignment or sublease under Section 9.2 of the Existing Lease), (ii) there has not been a default by Tenant shall have under the option to extend Lease beyond all applicable notice and grace periods, (iii) Tenant’s financial condition both at the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice time of the exercise no sooner of the Renewal Option (as hereinafter defined) and immediately preceding the commencement of the Renewal Term (as hereinafter defined) is reasonably acceptable to Landlord and (iv) Tenant, not less than fifteen nine (159) months nor later and not more than twelve eighteen (1218) months prior to the expiration of the initial Lease Term or preceding Option Term, time being of the essence, shall have given Landlord a written notice of the election of Tenant to accept a renewal of this Lease, then Landlord shall grant to Tenant and Tenant shall accept a renewal of the Lease (“Renewal Option”). At Landlord’s request, Tenant shall provide Landlord with its current financial information and any other information regarding the Tenant as applicableLandlord may reasonably request. Tenant's right to exercise each option Said renewal shall be conditioned upon Tenant delivering to Landlord with Tenant's notice for a term of exercise, current financial reports which evidence that Tenant's financial condition on five (5) years from the date of exercise is equal to or better than Tenant's financial condition expiration of the Lease Term (“Renewal Term”) and shall be on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgmentsame covenants, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with agreements, terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provisions as provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on Lease, including the market rent within sixty (60) days after Tenant gives notice payment of its exercise of the Option TermAdditional Rent, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be except that the Base Rent for the Option Renewal Term shall be fixed by agreement not later than four (4) months prior to the date on which the first monthly installment of such Base Rent shall first become payable or, if Landlord and Tenant cannot agree by that time, then by arbitration pursuant to the provisions of Section 11D hereof at the then Fair Market Rental Rate (as hereinafter defined)of the Premises for the Renewal Term. If the parties canBase Rent for the Renewal Term shall not agree have been fixed on a single appraiser, then each party, by giving written notice or prior to the other partydate the same shall first become payable, Tenant shall appoint pay an interim rental at the rental rate last in effect until the arbitration shall have been completed, after which Landlord and Tenant shall make appropriate adjustment of such interim rent, such adjustment to be as an appraiser an experienced commercial real estate agent in of the area in which commencement date of the Premises are locatedRenewal Term. Said appointment In the event that Fair Market Rental Rate is applied, the Base Rent shall be made within ten subject to the provisions of Sections 1.15 and 4 of the Lease. Notwithstanding the foregoing, the Base Rent for any Renewal Term shall not be less than the Base Rent then payable by Tenant for the month immediately preceding the commencement of such Renewal Term.
B. If (10i) days following immediately prior to the expiration of the sixty (60) day period aforesaidRenewal Term, and if one Tenant is in actual occupancy of the parties does Premises and has not appoint assigned this Lease or sublet any portion of the Premises other than pursuant to an appraiser within that timeassignment or sublease under Section 9.2 of the Existing Lease, (ii) there has not been a default by Tenant under the single appraiser named Lease beyond all applicable notice and grace periods, (iii) Tenant’s financial condition both at the time of the exercise of the Second Renewal Option (as hereinafter defined) and immediately preceding the commencement of the Second Renewal Term (as hereinafter defined) is reasonably acceptable to Landlord and (iv) Tenant, not less than twelve (12) months and not more than eighteen (18) months prior to the expiration of the Lease Term, time being of the essence, shall have given Landlord a written notice of the election of Tenant to accept a renewal of this Lease, then Landlord shall grant to Tenant and Tenant shall accept a renewal of the Lease (“Second Renewal Option”). At Landlord’s request, Tenant shall provide Landlord with its current financial information and any other information regarding the Tenant as Landlord may reasonably request. Said renewal shall be for a term of five (5) years from the sole appraiser date of expiration of the Renewal Term (“Second Renewal Term”) and shall set be on the monthly same covenants, agreements, terms and provisions as provided for in the Lease, including the payment of Additional Rent, except that the Base Rent for the Option Second Renewal Term shall be fixed by agreement not later than four (4) months prior to the date on which the first monthly installment of such Base Rent shall first become payable or, if Landlord and Tenant cannot agree by that time, then by arbitration pursuant to the provisions of Section 11D hereof at the then Fair Market Rental Rate of the Premises for the Second Renewal Term. If the two appraisers are appointed Base Rent for the Second Renewal Term shall not have been fixed on or prior to the date the same shall first become payable, Tenant shall pay an interim rental at the rental rate last in effect until the arbitration shall have been completed, after which Landlord and Tenant shall make appropriate adjustment of such interim rent, such adjustment to be as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher commencement date of the two estimates so determined Second Renewal Term. In the event that Fair Market Rental Rate is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the aboveapplied, the Base Rent shall be subject to the provisions of Article 4 of the Lease. Notwithstanding the foregoing, the Base Rent for any Second Renewal Term shall not be less than the Base Rent then payable by Tenant during each Option Term for the month immediately preceding the commencement of such Second Renewal Term.
C. For purposes of this Section 11, the term “Fair Market Rental Rate” shall mean the annual amount per rentable square foot that a willing, non-equity, non-sublease tenant would pay and a willing landlord would accept on a non-sublease, non-renewal basis, at arm’s length, for unencumbered office space comparable to the Premises and in comparable buildings in downtown New York, New York, giving appropriate consideration to economic terms, such as annual rental rates per rentable square foot and escalation clauses, length of lease term, size and location of premises being leased and other generally acceptable terms and conditions for the tenancy of the space in question; provided, however, in calculating the Fair Market Rental Rate, no consideration shall be in addition given to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges fact that the options granted herein are personal to Tenant and may (i) any rental abatement is or is not be assigned with an assignment of this Lease except given such tenants in connection with an assignment to an entity which controlsthe construction of improvements in such comparable space or otherwise, (ii) any tenant improvements or allowances would or would not be provided for such comparable space, or (iii) Landlord is controlled by or is under common control not required to pay a real estate brokerage commission in connection with Tenant the Renewal Term or Second Renewal Term (as defined in Article 20 hereinafter defined), as applicable, or the fact that comparable deals do or do not involve the payment of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldreal estate brokerage commissions).
Appears in 1 contract
Samples: Lease Amendment (Shutterstock, Inc.)
Options to Renew. Provided that no Event of Default by Tenant is not in default under this Lease exists as Lease, after expiration of applicable notice and cure periods, either at the time it exercises the renewal options set forth below, or at the date a Renewal Term begins, Tenant will have the right to renew this Lease for three (3) successive three-year terms (the “Renewal Terms”) by giving notice of exercise of the applicable renewal option or to Landlord at least nine (9) months before the expiration end of the initial term Original Term or preceding Option the then-existing Renewal Term (the Original Term and the Renewal Terms, if any, exercised by Tenant are collectively referred to as the “Lease Term”), If Tenant fails to deliver timely written notice of exercise of a renewal option to Landlord, all future renewal options shall lapse and provided Tenant will have no further that privilege to extend the Lease Term. Each Renewal Term shall be on the same terms and conditions of this Lease as to the portion of the Premises so leased by Tenant has not assigned (unless by their very nature inapplicable). In addition to paying the Rent, Tenant shall continue to pay all other sums required under this Lease, Lease during each Renewal Term. Tenant shall have the right to exercise each renewal option as to less than all of the Premises leased by Tenant during the Original Term (“Original Premises”), provided that Tenant identifies the portion of the Premises to be leased by Tenant in its notice exercising the renewal option. If Tenant exercises its renewal option to extend lease less than all of the initial Original Premises, then any future renewal options may be exercised by Tenant only with respect to all or a portion of such leasable area identified by Tenant. Prior to commencement of the first Renewal Term (if any) in which Tenant elects to lease term less than all of the Original Premises, Landlord and Tenant shall negotiate in good faith to amend the terms of this Lease (other than Rent) so that the Lease would be in the customary form of a triple net lease for a portion of office space in a building similar to the Building, with Tenant paying its pro rata share of operating expenses incurred by Landlord in connection with Landlord’s maintenance of the Building and related common areas, based on the ratio of the Rentable Area of the Premises to the Rentable Area of the Building. This Lease shall also be amended to allocate to Tenant an equitable share of the parking spaces on the Premises. Signage on the Premises shall be subject to the provisions of Section 9.3. If Tenant exercises is renewal option to lease less than all of the Original Premises and the portion of the Premises to be leased by Tenant consists of one or more of four (4) additionalof the discrete leasable areas shown on the floor plan of the Original Premises attached as Exhibit C, successive terms of five (5) years each (each, an "OPTION TERM"). then Tenant shall exercise pay the option, if at all, by delivering reasonable cost to Landlord written notice retrofit the Building in order to separate Tenant’s leased premises from the balance of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior Building and to conform Tenant’s retained premises to all applicable building, fire and other codes and regulations. For purposes hereof, the cost to retrofit the Building shall mean only the reasonable cost to rekey all Jocks and security devices, as reasonably necessary, and the cost to install separate utility meters, as reasonably determined by Landlord and Tenant. If Tenant is retaining only a portion of the Premises on a single floor, the cost to retrofit the Building shall also include the cost to construct a single demising wall to separate the Premises, and Landlord shall pay any costs to reconfigure the common areas within the Building, such as lobby and restroom areas, and any costs associated with changes to the expiration common areas outside the Building. If Tenant exercises is renewal option to lease less than all of the initial Lease Term Original Premises and the portion of the Premises to be leased by Tenant does not consist of one or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice more of exercise, current financial reports which evidence that Tenant's financial condition four (4) of the discrete leasable areas shown on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement floor plan of the applicable Option TermOriginal Premises attached as Exhibit C, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If then Landlord and Tenant are unable shall negotiate in good faith to agree on determine the market rent reasonable cost and scope of work, and the party or parties responsible to pay the cost of same, necessary to separate Tenant’s leased premises from the balance of the Building and to conform Tenant’s retained premises to all applicable building, fire and other codes and regulations. The cost (including the cost sharing, if applicable), design, scope of work and scheduling of any Building retrofit shall be reasonably determined by Landlord and Tenant, in good faith, within sixty (60) days after Tenant gives notice of exercises its exercise of the Option Termrenewal option, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term retrofitting shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate completed within sixty (60) days after the appointment. The average commencement of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees Renewal Term where Tenant has elected to lease less than all of the appraiser appointed by such party Original Premises. Landlord shall, or at Landlord’s option Tenant shall, complete the Building retrofit according to the cost, design and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldschedule so determined.
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Options to Renew. The renewal rights contained in Section 10.01 of the Lease and in the Third Amendment are hereby deleted with respect to the Extension Premises and the Second Floor Space, respectively. Tenant shall have two options to renew the Term of the Lease for the entire Premises (as then constituted) as follows: Provided that no Event of Default (i) the Lease (as amended by Tenant under this Lease exists Agreement) shall be in full force and effect as of the date of exercise the Renewal Notice (as hereinafter defined) and as of the Expiration Date (as the same may be extended for the first Renewal Term), (ii) there shall not then be existing an Event of Default under the Lease (as amended by this Agreement) and (iii) the named Tenant, its Affiliates and any Desk Space User pursuant to Section 5.01(d) of the Lease shall be in actual physical occupancy of at least 75% of the rentable area of the Premises then demised to Tenant under the Lease on the date of each Renewal Notice and upon the commencement of the applicable option or at the expiration of the initial term or preceding Option Renewal Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option two options to extend the initial lease term Term of the Lease with respect to all of the Premises (as then constituted), each for four (4) additional, successive terms a period of five (5) years each (each, an "OPTION TERM"a “Renewal Term”). Tenant Such options shall exercise the optionbe exercisable by written notice (each, if at all, by delivering a “Renewal Notice”) to Landlord written notice of the exercise no sooner than fifteen (15) months nor given not later than twelve (12) months prior to the expiration then Expiration Date. Notwithstanding the preceding sentence, Landlord, in its sole discretion, may waive any default by Tenant and no such default may be used by Tenant to negate the effectiveness of Tenant’s exercise of this option. Each Renewal Term shall constitute an extension of the initial Term of the Lease with respect to the Premises (as then constituted) and shall be upon all of the same terms and conditions as the then existing Term, except that (A) there shall be no further option to renew the Term of the Lease after the second Renewal Term, (B) Landlord shall not be required to furnish any materials or preceding Option perform any work to prepare the Premises for Tenant’s continued occupancy and Landlord shall not be required to reimburse Tenant for any Alterations made or to be made by Tenant to the Premises, and (C) the Fixed Rent for the Renewal Term shall be payable at a rate per annum equal to the Fair Market Rent of the Premises as of the first day of such Renewal Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord determined in accordance with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement Section 10.02 of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
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Samples: Lease Amendment (Thomas Weisel Partners Group, Inc.)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of (a) Subject to the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leaseconditions hereinafter set forth, Tenant shall have is hereby granted options (individually, a “Renewal Option” and, collectively, the option “Renewal Options”) to extend renew the initial lease term Term with respect to all, or any portion of, the Leased Premises as then demised hereunder for four six (46) additional, successive terms periods of five (5) years each (eachindividually, an "OPTION TERM"a “Renewal Term” and collectively the “Renewal Terms”); provided that the Term shall not extend, for any portion of the Leased Premises, beyond the Outside Expiration Date.
(b) The first Renewal Term (if the first Renewal Option is exercised) shall commence at the expiration of the Initial Term, and each subsequent Renewal Term (if the pertinent Renewal Option is exercised) shall commence at the expiration of the immediately preceding Renewal Term. Tenant shall exercise the optioneach of its Renewal Options, if at all, by delivering notice of such exercise to Landlord written notice of the exercise no sooner than fifteen (15each, a “Tenant’s Renewal Notice”) months nor not later than twelve (12) months prior to the then current expiration of the initial Term. In any case that Tenant exercises a Renewal Option with respect to less than all of the Leased Premises as then demised hereunder, Tenant shall identify the portion(s) of the Leased Premises with respect to which the Renewal ________________________________________________________________________________________________________________________ Option is being exercised. IN ORDER TO PREVENT TENANT’S INADVERTENT FORFEITURE OF ANY THEN REMAINING RENEWAL OPTION, IF TENANT SHALL FAIL TO TIMELY EXERCISE ANY AVAILABLE RENEWAL OPTION, TENANT’S RIGHT TO EXERCISE SUCH RENEWAL OPTION SHALL NOT LAPSE UNTIL LANDLORD SHALL DELIVER TO TENANT WRITTEN NOTICE THAT SUCH NOTICE OF EXERCISE HAS NOT BEEN DELIVERED AND TENANT SHALL THEREAFTER FAIL TO EXERCISE SUCH RENEWAL OPTION WITHIN TEN (10) BUSINESS DAYS FOLLOWING THE DELIVERY OF SUCH NOTICE.
(c) Tenant’s leasing of the Leased Premises during any Renewal Term shall be upon all the then executory terms and conditions of this Lease (as applicable prior to such Renewal Term), except as follows:
(1) The Annual Basic Rent Factor for each Renewal Term shall be equal to the Fair Market Rental Value Per RSF of the Base Leased Premises for the Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided); provided, however, that:
(A) if, as of the commencement of such Renewal Term, both (i) Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has not ended, then the Annual Basic Rent Factor for such Renewal Term shall be adjusted as provided in Section 2 of the Master Agreement, as applicable;
(B) if, as of the commencement of such Renewal Term, the Tenant hereunder is not a Wachovia Party (whether or not the Integration Period has ended), then the Annual Basic Rent Factor for such Renewal Term shall not exceed a rate equal to 110% of the Annual Basic Rent Factor on the last day of the Initial Term or immediately preceding Option Renewal Term, as applicable. Tenant's right ; and
(C) if, as of the commencement of such Renewal Term, (i) the Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has ended, then the Annual Basic Rent Factor for such Renewal Term shall not exceed the following: (x) in the case of the first Renewal Term, a rate equal to exercise 110% of the Annual Basic Rent Factor on the last day of the Initial Term; and (y) in the case of each option subsequent Renewal Term, a rate equal to 105% of the Annual Basic Rent Factor for the immediately preceding Renewal Term.
(2) The STAS Basic Rental Factor for each Short-Term Additional Space for each Renewal Term shall be conditioned upon equal to the Fair Market Rental Value Per RSF of such Short-Term Additional Space for such Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided).
(d) Within thirty (30) days following the Renewal Option Notice Date with respect to any Renewal Option, Landlord shall deliver to Tenant, a proposal setting forth Landlord’s determination of the Fair Market Rental Value Per RSF for the Leased Premises for the pertinent Renewal Term (which, if the Leased Premises as to which such Renewal Option is exercised includes any Short-Term Additional Space, then such determination shall include separate components for the Fair Market Rental Value Per RSF for the Base Leased Premises, and the ________________________________________________________________________________________________________________________ Fair Market Rental Value Per RSF of the Short-Term Additional Space). Thereafter, and until the delivery of a Renewal Appraisal Notice, Landlord and Tenant delivering shall endeavor to reach agreement as to the Fair Market Rental Value Per RSF of the Leased Premises for the pertinent Renewal Term (and, as applicable, each component thereof).
(e) If Landlord and Tenant are unable to reach a definitive agreement as to the Fair Market Rental Value Per RSF for Leased Premises for any Renewal Term within sixty (60) days following the Renewal Option Notice Date, then either Landlord or Tenant, by written notice thereof to the other party (herein called a “Renewal Appraisal Notice”), may cause such Fair Market Rental Value Per RSF to be submitted for resolution in accordance with the following provisions of this Section 1.4(e):
(1) Within thirty (30) days after delivery of the Renewal Appraisal Notice, Landlord and Tenant shall each select and engage an Appraiser to determine such Fair Market Rental Value Per RSF. If either party fails to select and engage an Appraiser within such time, and if such failure continues for more than five (5) Business Days following such party’s receipt of written notice that states in all capital letters (or other prominent display) that such party has failed to select an Appraiser as required under the Lease and will be deemed to have waived certain rights granted to it under the Lease unless it selects an Appraiser within five (5) Business Days, then the Appraiser engaged by the other party shall select the second Appraiser.
(2) Within thirty (30) days following the date on which the second Appraiser is selected, (i) each Appraiser shall prepare a sealed determination of the such Fair Market Rental Value Per RSF, (ii) the Appraisers, together with Landlord and Tenant, shall arrange a meeting at the Property during Building Operating Hours (or at such other place and time as is reasonably acceptable to both Appraisers, Landlord and Tenant) for the purpose of distributing such sealed determinations, and (iii) at such meeting, the Appraisers shall each simultaneously present their determinations of such Fair Market Rental Value Per RSF, to the other Appraiser and to Landlord and Tenant. If the higher of the two determinations of such Fair Market Rental Value Per RSF does not exceed one hundred five percent (105%) of the lower of the two determinations of such Fair Market Rental Value Per RSF, then the average of the two (2) determinations shall be such Fair Market Rental Value Per RSF (and the same shall constitute the final determination thereof). If the higher of the two determinations of such Fair Market Rental Value Per RSF exceeds 105% of the lower of the two determinations of such Fair Market Rental Value Per RSF, then within five (5) Business Day after receipt by Landlord and Tenant of both appraisal reports, the Appraisers selected by Landlord and Tenant shall agree on a third Appraiser (the “Third Appraiser”) to make a determination of such Fair Market Rental Value Per RSF. The Third Appraiser shall not make an independent determination, but shall, within ten (10) Business Days after his or her designation, select one (1) of the two (2) determinations already made, whichever of the two determinations the Third Appraiser determines to be closest to such Fair Market Rental Value Per RSF, as the controlling determination with Tenant's notice respect to such Fair Market Rental Value Per RSF. The decision of exercisethe Third Appraiser shall be conclusive and binding; and such Fair Market Rental Value Per RSF shall be as set forth in such controlling determination (which shall constitute the final determination thereof). Each party shall pay the costs of its Appraiser and one-half (1/2) of the cost of the Third Appraiser. ________________________________________________________________________________________________________________________
(3) The instructions to the Appraisers with respect to the determination of such Fair Market Rental Value Per RSF will be to determine the same solely in accordance with the definition Fair Market Rental Value Per RSF as set forth in this Lease (including the criteria and assumptions set forth therein). The Appraisers shall have no authority to alter any provisions of such definition, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution any other provisions of this Lease.
(4) Within thirty (30) days following the final determination of such Fair Market Rental Value Per RSF, Tenant shall elect one (1) of the following options by written notice to Landlord: (A) to revoke the exercise of the pertinent Renewal Option, in which event, the Term shall automatically, and without further action of Landlord or Tenant, expire on the later of (1) the expiration of the Initial Term (or, if applicable, the expiration of the Renewal Term with respect to the immediately preceding Renewal Option) or (2) the last day of the calendar month that is six (6) months following the month in which Tenant’s notice of revocation was given to Landlord; or (B) to ratify its exercise of the pertinent Renewal Option. If Tenant's financial condition has declined in Landlord's business judgmentTenant fails to exercise either of the foregoing options within such thirty (30) day period, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that then Tenant shall be deemed to have no additional elected option periods (B). If Tenant elects (or is deemed to have elected) option (B), then Tenant thereby shall have irrevocably exercised the pertinent Renewal Option and Tenant may not thereafter withdraw the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement exercise of the applicable Option Term, Renewal Option.
(5) If the Fair Market Rental Value Per RSF of the Leased Premises for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option any Renewal Term shall be not have been final determined prior to the commencement of the applicable Option Renewal Term in (and, accordingly, the following manner: If Landlord actual Annual Basic Rent therefor is not finally known as of the commencement of such Renewal Term), then (i) for the period commencing on such first day of such Renewal Term and Tenant are unable to agree ending on the market rent date that such Fair Market Rental Value Per RSF is finally determined, Tenant shall make payments, on account of the Annual Basic Rent for such Renewal Term (as and when Annual Basic Rent is payable under this Lease) based upon the Annual Basic Rent Factor in effect immediately prior to such Renewal Term, and, for any Short- Term Additional Space, the STAS Basic Rental Factor in effect immediately prior to such Renewal Term, and (ii) upon such Fair Market Rental Value Per RSF being finally determined, such payments on account of Annual Basic Rent shall be reconciled with the actual Annual Basic Rent, and, within sixty thirty (6030) days after such final determination, (x) if such payments on account of Annual Basic Rent made by Tenant gives notice of its exercise of during such period were less than the Option Termactual Annual Basic Rent for such period, then Tenant shall have pay to Landlord the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration amount of such 60-day period. In the event of such revocationdeficiency, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate together with interest thereon at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidPrime Rate, and (y) if one such payments on account of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Annual Basic Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid made by Tenant during the Option Term shall be the average such period were in excess of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower oneactual Annual Basic Rent for such period, the two appraisers then Landlord shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal refund to Tenant and may not be assigned the amount of such excess, together with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldinterest thereon at the Prime Rate.
Appears in 1 contract
Options to Renew. Provided Subject to the provisions set forth below, the Lease Term may be renewed, at the option of Tenant (each, a "Renewal Option"), for two (2) additional period of 60 months each (each, a “Renewal Term” and together the “Renewal Terms”). Each Renewal Term will be upon the same terms, covenants and conditions contained in this Lease, except (i) the rent abatement rights and leasehold improvement allowances granted under this Lease will not apply to the Renewal Term; (ii) Section 42 (Xxxxxx Second Amendment) will not apply during the Renewal Term; (iii) the Work Letter attached hereto will not apply to the Renewal Term; and (iv) the Base Rent due for such Renewal Term will be as set forth in this Section. Any reference in the Lease to the “Term” will be deemed to include the Renewal Terms (to the extent that Tenant exercises the corresponding Renewal Option) and apply thereto, unless it is expressly provided otherwise. Tenant will have no renewal option beyond the aforesaid two 60-month periods.
(a) The Base Rent during each Renewal Term for the Premises will be at a rate equal to the then Fair Market Rent (as defined in Exhibit H), as determined by Landlord, and for a term equal or comparable to such Renewal Term. Tenant’s obligation to pay Tenant’s Proportionate Share of Taxes and Expenses will continue during the Renewal Terms. Tenant’s obligation to pay any Monthly Existing Gen Replacement Amortization pursuant to Section 46 will continue during the Renewal Terms.
(b) If Tenant exercises a Renewal Option, Landlord will grant to Tenant a leasehold improvement allowance equal to the Fair Market Allowance (as defined in Exhibit H), as determined by Landlord, 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 Landlord’s then standard form of work letter under which Tenant performs the work using an allowance, which work letter will be prepared by Landlord and substantially comparable to the Work Letter attached hereto as Exhibit D (excluding the Additional Allowance, and except that Tenant’s work will not include common area improvements). Except as otherwise expressly set forth in this Section 44, Tenant will be deemed to have accepted the renewed Premises in “as-is” condition as of the commencement of the Renewal Term, and except as otherwise expressly set forth in this Section 44, 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 Renewal Option.
(c) In order to exercise its first Renewal Option, Tenant must first deliver an initial nonbinding notice to Landlord no later than 45 days before, and no earlier than 120 days before, the applicable Renewal Exercise Deadline (defined below), in which Tenant expresses its intention to exercise or interest in exercising such Renewal Option and requesting Landlord's determination of Fair Market Rent and Fair Market Allowance. Within 30 days thereafter, Landlord will notify Tenant (“Landlord’s Renewal Notice”) of Landlord’s calculation of the Fair Market Rent and Fair Market Allowance for the Premises, which calculation will reflect the market rate that would be payable per annum for a term commencing on the first day of the first Renewal Term. If Tenant fails to give its initial nonbinding notice when due as provided in this Section 44(c), then both Renewal Options will be null and void. For purposes hereof, the “Renewal Exercise Deadline” for the first Renewal Option means the date that is 12 months before the Expiration Date of the initial Term; and for the second Renewal Option means the date that is 12 months before the Expiration Date of the first Renewal Term.
(d) If Tenant exercises its first Renewal Option, then Tenant will have the second Renewal Option as described above. In order to exercise its second Renewal Option, Tenant must first deliver an initial nonbinding notice to Landlord no later than 45 days before, and no earlier than 120 days before, the applicable Renewal Exercise Deadline (defined above), in which Tenant expresses its intention to exercise or interest in exercising such Renewal Option and requesting Landlord's determination of Fair Market Rent and Fair Market Allowance. Within 30 days thereafter, Landlord will deliver Landlord’s Renewal Notice setting forth Landlord’s calculation of the Fair Market Rent and Fair Market Allowance for the Premises, which calculation will reflect the market rate that would be payable per annum for a term commencing on the first day of second Renewal Term. If Tenant fails to give its initial nonbinding notice when due as provided in this Section 44(d), then Tenant’s second Renewal Option will be null and void.
(e) On or before the Renewal Exercise Deadline, Tenant will deliver to Landlord a final binding notice in which Tenant (i) elects to renew the Lease and accepts the terms stated in Landlord’s Renewal Notice, or (ii) declines to renew the Term, in which case Tenant’s rights under this Section 44 will be null and void. If Tenant fails to notify Landlord by the Renewal Exercise Deadline (after having given its initial nonbinding notice within the required time), time being of the essence, then Tenant will conclusively be deemed to have elected not to renew the Lease, in which event Tenant’s rights under this Section 44 will be null and void.
(f) After Tenant delivers Tenant’s binding notice exercising a Renewal Option, 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. However, Landlord's failure to prepare and deliver such amendment, or Landlord's or Tenant's failure or refusal to execute and deliver such amendment, will not affect the validity or enforceability of Tenant's exercise of a Renewal Option. Time is of the essence with respect to the giving of Tenant’s exercise notices.
(g) Tenant’s right to exercise its Renewal Option this Lease pursuant to this Section is subject to the following conditions: (i) that on the date that Tenant delivers notice of its election to exercise its Renewal Option, and at the commencement of the Renewal Term, no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further exists; (ii) that Tenant has not assigned this Lease, Tenant shall have the option Lease (other than to extend the initial lease term for four Permitted Transferees); and (4iii) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives delivers notice of its election to exercise its Renewal Option, Tenant and its Permitted Transferees occupy at least 50% of the Option Term, then Tenant shall have the right to revoke its exercise Premises. Each of the option foregoing conditions is waivable by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease Landlord in Landlord’s sole and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldabsolute discretion.
Appears in 1 contract
Options to Renew. Provided that no Event of Default by (a) Landlord hereby grants Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option two (2) options to extend the initial lease Term (each, an "Extension Option"). Each Extension Option is for one (1) additional term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERMExtension Term"). , commencing as of the date immediately following the expiration of the Term or extension thereof, each such option to be subject to the covenants and conditions hereinafter set forth in this Article 46.
(b) Tenant shall exercise the option, if at all, by delivering to give Landlord written notice (the "Extension Notice") of the Tenant's election to exercise no sooner its Extension Option not less than fifteen Two hundred seventy (15270) months days, nor later more than twelve three hundred sixty-five (12365) months days prior to the expiration of the initial Lease Term or preceding Option Termextension thereof, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice time being of exercise, current financial reports which evidence the essence; provided that Tenant's financial condition on failure to give the date of exercise is equal Extension Notice by said date, whether due to or better than Tenant's financial condition on oversight or failure to cure any existing defaults or otherwise, shall render the date Extension Option null and void and of execution of this no further force or effect.
(c) Tenant shall not be permitted to exercise an Extension Option at any time during which Tenant is in default under the Lease, subject to any applicable notice and grace periods. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse Tenant fails to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during cure any default under the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of an Extension Term, subject to applicable notice and grace periods, the applicable Option Extension Term shall be immediately cancelled, unless Landlord elects to waive such default, and Tenant shall forthwith deliver possession of the Premises to Landlord as of the expiration or earlier termination of the then-current Term of the Lease.
(d) Tenant shall be deemed to have accepted the Premises in "as-is" condition as of the commencement of the Extension Term, subject to any other repair and maintenance obligations of Landlord under the Lease, it being understood and agreed that Landlord shall have no additional obligation to renovate or remodel the Premises or any portion of the Building as a result of Tenant's renewal of the Lease.
(e) The covenants and conditions of the Lease in force during the Term, as the same may be modified from time to time, shall continue to be in effect during each Extension Term, except as follows:
(i) The "Commencement Date" for the purpose of the Lease shall be the first day of the Extension Term.
(ii) The Base Rent for the Extension Term shall be an amount equal to the then Fair Market Rental Value of the Premises. "Fair Market Rental Value" of the Premises shall be an amount determined by Landlord on the basis of the then-prevailing market rental rate for space comparable to the Premises in the following manner: If Princeton, New Jersey submarket within the twelve (12) month period immediately preceding commencement of the Extension Term, but shall not take into account alterations and improvements made by or on behalf of Tenant, including, without limitation, the Landlord and Tenant are unable to agree on the market rent within sixty Work. Within ten (6010) days after Landlord's receipt of Tenant's Extension Notice, Landlord shall notify Tenant gives of its determination of the Fair Market Rental Value of the Premises for the applicable Extension Term. Within ten (10) days after Tenant's receipt of Landlord's notice of its exercise Landlord’s determination of the Option TermFair Market Rental Value of the Premises, then Tenant shall have the right to revoke its (i) rescind the exercise of the option Extension Option, (ii) accept Landlord's determination of the Fair Market Rental Value or (iii) dispute Landlord's determination of the Fair Market Rental Value. If Tenant elects to dispute Landlord's determination of Fair Market Rental Value, Tenant, by delivering written notice to Landlord (the "Arbitration Notice") delivered within the ten (10) days provided hereinabove, Tenant shall have the right to have Fair Market Rental Value determined in accordance with the following procedures. If Tenant fails to notify Landlord of its election within the ten (10) days provided above, Tenant's Extension Option shall be deemed to be null and void and of no further force and effect. If Tenant provides Landlord with an Arbitration Notice, Landlord and Tenant, within ten (10) days following after the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end date of the initial termArbitration Notice, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice simultaneously submit to the other partyother, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaida sealed envelope, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an its good faith estimate of the market rent within sixty Fair Market Rental Value (60) dayscollectively referred to as the "Estimates"). If the higher of the two estimates so determined such Estimates is within ten not more than one hundred five percent (10105%) of the lower estimateof such Estimates, then the monthly Base Rent to be paid by Tenant during the Option Term Fair Market Rental Value shall be the average of the amounts determined two Estimates. If Fair Market Rental Value is not resolved by the appraisersexchange of Estimates, Landlord and Tenant, within seven (7) days after the exchange of Estimates, shall each select "qualified" broker to determine which of the two Estimates most closely reflects Fair Market Rental Value. A qualified broker means a commercial real estate broker with at least 10 years’ experience in handling transactions for comparable commercial properties in the Princeton, New Jersey submarket who has concluded a minimum of 20 such transactions. Upon selection, Landlord's and Tenant's brokers shall work together in good faith to agree upon which of the two Estimates most closely reflects Fair Market Rental Value for the Extension Term. The Estimate chosen by such brokers shall be binding on both Landlord and Tenant as the Base Rent rate for the Extension Term. If either Landlord or Tenant fails to appoint a broker within the seven (7) day period referred to above, the broker appointed by the other party shall be the sole broker for the purposes hereof. If the difference between two brokers cannot agree upon which of the two estimates exceeds ten percent (10%) of Estimates most closely reflects Fair Market Rental Value within the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate after their appointment, then, within sixty five (605) days after the appointmentexpiration of such ten (10) day period, the two (2) brokers shall select a third broker meeting the aforementioned criteria. The average Once the third broker has been selected as provided for above, then, as soon thereafter as practicable but in any case within fourteen (14) days, the broker shall make his/her determination of which of the two closest appraisals Estimates most closely reflects Fair Market Rental Value. If the broker believes that expert advice would materially assist him, he/she may retain one or more qualified persons, to provide such expert advice. The parties shall be set as share equally in the monthly Base Rent. Each party shall pay the fees costs of the appraiser appointed third broker and of any experts retained by such party and the parties will share equally the that broker. Any fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the abovebroker, the Base Rent payable appraiser, counsel or experts engaged directly by Tenant during each Option Term Landlord or Tenant, however, shall be in addition to all Additional Rent and other sums and charges payable borne by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controlsparty retaining such broker, is controlled by appraiser, counsel or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldexpert.
Appears in 1 contract
Samples: Lease Agreement (Cytosorbents Corp)
Options to Renew. Provided that So long as no Event Lessee event of Default by Tenant default has occurred and is continuing under this Lease exists as Agreement (and, in particular, the Lessee has complied with the provisions of Section 7 and Section 16 hereof), the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant Lessee shall have the option to extend the initial lease term renew this Lease Agreement for four up to five (45) additional, successive terms periods of five (5) years each (eacheach such period a “Renewal Lease Term”) and upon each such exercise, an "OPTION TERM")the Lease Term shall be extended for each such Renewal Lease Term; provided, however, the entire Lease Term shall not exceed fifty- five (55) years in the aggregate. Tenant shall exercise the option, if at allThe Lessee, by delivering to Landlord written notice of Chief Administrative Officer letter, shall notify the exercise no sooner than fifteen (15) months nor later Lessor in writing not less than twelve (12) months prior to expiration of the Lease Term of the Lessee’s intention to exercise each such option. The Lessee shall deliver to the Lessor a written instrument evidencing the actual exercise of the option granted herein together with satisfactory written evidence of the approval of such exercise by the Board of Supervisors of the County of Los Angeles not later than six (6) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's Upon the giving of such notice of exercise, current financial reports which evidence that Tenant's financial condition on this Lease Agreement shall automa tically be extended for a Renewal Lease Term and no further instrument of extension need be executed. In the date of exercise is equal to or better than Tenant's financial condition on event the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees Lessor shall fail to provide a new Letter(s) of Credit the Lessee with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement written notice of the applicable Option TermLease Termination Date as provided in paragraph (a) above, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant Lessee shall have the right to revoke exercise its exercise of the option by delivering to renew upon written notice within ten to the Lessor not later than three (103) days following months prior to the expiration of such 60-day periodLease Termination Date. In the event that the Lessee fails to give notice of such revocation, Tenant shall forfeit all rights its intention to thereafter exercise any its option under to renew this Lease and the Agreement as herein provided, this Lease Agreement shall automatically terminate at the end of the initial term, Lease Term and the Lessee shall have no further right or then Option Term, as applicableoption to extend this Lease Agreement. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Each Renewal Lease Term shall be determined by appraisal upon the same covenants, agreements, provisions, terms and conditions as the Original Lease Term, including specifically the Lessee's obligations to make Rental Payments during each Renewal Lease Term in the following manner: If Landlord amounts and Tenant can agree on a single appraiserat such times as prescribed by this Lease Agreement during the Original Lease Term, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following except that upon the expiration of the sixty (60) day period aforesaid, and if one of fifth Renewal Lease Term the parties does not appoint an appraiser within that time, Lessee shall have no further option to renew or extend the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Lease Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Samples: Lease Agreement
Options to Renew. (a) Provided that no Event Tenant is not in material default of Default by Tenant under this Lease exists as at the time of the date of exercise of the applicable option Extension Option (as defined below) or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned of this Lease, the Tenant shall have three (3) options to renew and extend this Lease (the option to extend the initial lease “Extension Option”) for one term for four (4) additional, successive terms each of five (5) years each (eachthe “Renewal Term”), an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord upon written notice of to the exercise no sooner than fifteen (15) months nor later Landlord delivered not less than twelve (12) months prior to before the expiration of the initial Lease Term or Term. Upon the delivery of such notice by Tenant and subject to the conditions set forth in the preceding Option Termsentence, as applicable. Tenant's right to exercise each option this Lease shall be conditioned extended without the necessity of the execution of any further instrument or document; provided, however, that each party agrees to execute and deliver such further instruments or documents as the other party may reasonably request to memorialize or acknowledge the exercise of the Extension Option. The Renewal Term shall commence upon Tenant delivering to Landlord with Tenant's notice the expiration of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution initial term of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(sshall expire upon the anniversary of such date five (5) of Credit with terms years thereafter, and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during be upon the applicable Option Term. All same terms, provisions, covenants and conditions and covenants of as provided in this Lease shall remain in full force and effect during for the Option Termsinitial Lease Term, provided except that Tenant shall have no additional option periods and (1) the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be ninety-five percent (95%) of the market rate then prevailing fair market rental rate as projected for of the commencement of the applicable Option Term, Renewal Term and (2) the Base Year shall be the calendar year in which the particular Renewal Term commences. The determination of Fair Market Value shall factor in all market inducements given to a non-renewal tenant for premises comparable in size, quality and location space in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement in Mission Viejo, calculated as of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise expiration date of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end basis of a new five year letting of the initial termPremises, or then Option Termincluding, as applicable. If Tenant does but not revoke its exercise and elects to proceed with the determination of market limited to, free rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraisertenant improvements, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiserexpense stops, then each partymoving allowances, by giving written notice to the other partybrokerage commissions, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidwork allowances, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldetc.
Appears in 1 contract
Samples: Office Building Lease (Realogy Corp)
Options to Renew. Provided that no Event of Default by Tenant under this a) Lessor hereby grants the Lessee named in the Lease exists as of (the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option "Original Lessee") two (2) options ("Option") to extend the initial lease term Term for four (4) additional, successive terms the entire Premises for a period of five (5) years each immediately following the initial Expiration Date (each, an "OPTION TERMOption Term"). Tenant , which Option shall exercise the option, if at all, be exercisable only by delivering to Landlord written notice delivered by Lessee to Lessor as set forth below. The rights contained in this Paragraph 63 shall be personal to the Original Lessee and may only be exercised by the Original Lessee (and not any assignee, sublessee or other transferee of the exercise no sooner than fifteen (15Original Lessee's interest in the Lease) months nor later than twelve (12) months prior to if the expiration Original Lessee occupies the entire Premises as of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than TenantLessee's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined Acceptance (as defined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(sParagraph 63(c) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect below).
b) The Base Rent payable by Lessee during the Option TermsTerm ("Option Rent") shall be equal to the "Market Rent" (defined below); provided, provided that Tenant however, in no event shall have no additional option periods and the Option Rent be less than one hundred three percent (103%) of the Base Rent payable during the first Lease Year last month of each Option Term (the Original Term. "Market Rent" shall mean the applicable monthly Base Rent, including all escalations, Common Area Operating Expenses, additional rent and for increases during the Option Termother charges at which Lessees, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable time of Lessor's "Option TermRent Notice" (as defined below), are entering into leases for premises non-sublease space which is not encumbered by expansion rights and which is comparable in size, location and quality and location to the Premises in renewal transactions for a term comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for to the Option Term shall be determined prior which comparable space taking into consideration the value of the existing improvements in the Premises to Lessee, as compared to the commencement value of the applicable Option Term existing improvements in such comparable space, with such value to be based upon the following manner: If Landlord age, quality and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise layout of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease improvements and the Lease shall terminate at extent to which the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed same could be utilized by Lessee with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice consideration given to the other party, shall appoint as an appraiser an experienced commercial real estate agent fact that the improvements existing in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent specifically suitable to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldLessee.
Appears in 1 contract
Samples: Standard Industrial/Commercial Multi Tenant Lease Gross
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option TermLessee is not in default hereunder, and provided further that Tenant has not assigned this Lease, Tenant Lessee shall have the option right to extend renew the initial lease term Term of this Lease for four two (42) additional, successive additional terms of five (5) years years, which periods shall be designated as the “Renewal Term(s)”. Lessee shall accept the Demised Premises in its “Where Is” and “As-Is” condition for each (each, an "OPTION TERM"of said Renewal Term(s). Tenant Lessee shall exercise the option, if at all, this renewal option by delivering to Landlord giving Lessor not more than 18 months but not less than twelve- (12) month’s prior written notice of its intention to renew the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior Term of this Lease. Upon receipt by Lessor of such notice, the Term of this Lease shall be deemed to have been extended for the designated Renewal Term from the expiration of the initial current term as defined herein, upon the same terms and conditions as during the Term hereof, except as otherwise provided for herein.
a. First Five Year Renewal Option (“First Renewal Term”) The Basic Rent during the First Renewal Term shall be based on the prevailing rental rates for properties of equivalent quality, size, utility and location within Xxxxxx County, State of New Jersey, with the length of the Lease Term or preceding Option Term, and credit standing of Lessee herein to be taken into account as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of each renewal, but in no event shall the Basic Rent be less than $12.25 per sq. ft Net Net Net per annum or higher than $18.00 per sq. ft. Net Net Net per annum. Within thirty (30) days of Lessor’s receipt of notice of Lessee’s intent to exercise is equal the renewal option, Lessor and Lessee shall agree upon the prevailing rental rate, which will apply to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations Basic Rent during the applicable Option First Renewal Term. All termsIn the event that Lessor and Lessee cannot come to such an agreement, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market renewal rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior as follows: Within the next thirty (30) days, Lessor and Lessee shall each select an arbitrator who shall be a real estate broker licensed in the area in which the building is situated and having a minimum of five (5) years experience in leasing industrial and office space. Notice shall be given to the commencement other party of the applicable Option Term name of the arbitrator selected. If either Lessor or Lessee fails to appoint such an arbitrator within the allotted time, the arbitrator appointed by the other party shall make the determination of the then prevailing rental rate and this determination shall be final and binding on both parties hereto. Coty Lease 18 Bldg 100 032400 Final If both Lessor and Lessee appoint an arbitrator in accordance with the provisions above and the two arbitrators cannot agree upon a prevailing rental rate within thirty (30) days following manner: If Landlord their appointment, the two arbitrators shall forthwith select a third arbitrator having like qualifications and Tenant are unable each of the original arbitrators will immediately submit his or her judgment as to agree on the fair market rent within sixty (60) days after Tenant gives notice of its exercise in writing to the third arbitrator. The third arbitrator will choose and decide on one of the Option Term, then Tenant shall have two prevailing rental rates submitted by the right to revoke its exercise of the option by delivering written notice two original arbitrators within ten (10) days following and the expiration selection of such 60-day periodthe third arbitrator shall be final and binding on both parties. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease the two arbitrators appointed by the Lessor and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does Lessee cannot revoke its exercise and elects to proceed with the determination of market rentagree upon a third arbitrator, then the monthly Base third arbitrator shall be appointed by the New Jersey Chapter of the Society of Industrial Realtors. The prevailing rental rate agreed to by the two appointed arbitrators or, if applicable, the prevailing rental rate selected by the third arbitrator, shall be final and binding upon the parties hereto. Lessor and Lessee shall each bear the expense of the respective arbitrator appointed by each and the expense of a third arbitrator, if needed shall be shared equally by both parties. To reiterate in no event shall the Basic Rent and Additional be less than $12.25 per sq. ft Net Net Net per annum or greater than $18.00 per sq. ft. Net Net Net per annum.
b. Second Five-Year Renewal Option (“Second Renewal Option”). Based on CPI: The increase in the Basic Rent payable during the Option Second Renewal Term shall be determined by appraisal in related to the following manner: If Landlord Consumer Price Index All Urban Consumers, New York, New York - Northeastern New Jersey and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below Escalation Base for Basic Rent shall be the Base Basic Rent for the Option First Renewal Term. If The Index as of the parties cannot agree on a single appraiser, then each party, by giving written notice to first month of the other party, First Renewal Term shall appoint constitute the Base Index. The Index as an appraiser an experienced commercial real estate agent in of the area in which last month of the Premises are locatedFirst Renewal Term shall constitute the Renewal Index. Said appointment The Renewal Index shall be made within ten (10) days following divided by the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named Base Index; this percentage shall be multiplied by the sole appraiser Escalation Base to determine the Basic Rent during the Second Renewal Term. For example, assume that the Base Index is 120; the Renewal Index is 135; and the Basic Rent during the First Renewal Term is $270,000: The Basic rent for the Second Renewal Term should be (135 / 120 = 1.125% x $270,000 = $303,750). In no event shall set the monthly Base annual Basic Rent for the Option Term. If Second Renewal Term be less than the two appraisers are appointed as provided herein, each shall independently prepare an estimate annual Basic Rent during the last year of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldFirst Renewal Term.
Appears in 1 contract
Samples: Lease Agreement (Coty Inc /)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as shall have two successive options to renew the Term of the date Lease commencing upon its expiration for an additional period of exercise 5 years each (each a "Renewal Term," which shall be deemed to be part of the applicable Term), subject to the following terms:
(A) Tenant's options to renew shall apply to the entire Premises and not any lesser portion thereof.
(B) In order to exercise each such option or at to renew the Lease, Tenant must give Landlord written notice of its election to renew not earlier than 365 days and not later than 330 days before the expiration of the initial term or preceding Option then-current Term. If the applicable option is exercised in accordance with the terms of this section, the Renewal Term shall be under all of the same terms and provided further that Tenant has not assigned this conditions as are contained in the Lease, except that the Base Rent applicable during the Renewal Term shall be at the then-prevailing market rate of rent and all other charges for comparable office space in the area of the Baltimore-Washington International Airport, taking into account any and all factors (e.g., condition of space and improvements, parking and other facilities, location of the Building, length of term, Tenant's needs as a large user of space, etc.). If Tenant exercises the applicable option by the
(C) With respect to either of the foregoing options to renew, if Tenant does not accept Landlord's determination of the market rate of Base Rent contained in the Landlord's notice, then Tenant shall notify Landlord of this fact in writing within 15 days after the Landlord's notice. If Tenant so notifies Landlord within this 15 day period, then the parties shall attempt to resolve their differences regarding the Landlord's figure and agree upon the market rate of Base Rent within 30 days after the Tenant's notice of non-acceptance. In the event that the parties cannot agree upon the market rate within this 30 day period, then the Tenant shall have the option to extend the initial lease term for four (4) additionalright, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering upon written notice to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months given prior to the expiration of such 30 day period, to either (1) rescind the initial Lease Term or preceding Option Termexercise of the applicable option, as applicable. Tenant's right to exercise each in which case the option shall be conditioned upon Tenant delivering null and void, or (2) elect to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing determined by arbitration as projected for described in subsection (D) below. If the commencement Tenant fails to notify the Landlord that it does not accept the Landlord's determination of the applicable Option Termmarket rate within the period of 15 days after the Landlord's initial notice as described above, for premises comparable in size, quality or if the Tenant does so notify the Landlord but Tenant does not either rescind the option or elect to have the market rate determined by arbitration within the 30 day period described above (and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant parties are unable to agree on upon the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day rate in this period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent), then the monthly Base Rent and Additional Rent payable during figure for the Option Term shall be determined by appraisal market rate set forth in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written Landlord's initial notice to the other partyTenant shall govern for the Renewal Term.
(D) If with respect to either of the options described above, Tenant elects to have the market rate of Base Rent to apply during the Renewal Period determined by arbitration, the market rate of Base Rent shall appoint as an appraiser an experienced be established by a panel of 3 licensed real estate brokers, each of whom shall have a minimum of 7 years of experience in the commercial real estate agent brokerage business in the area region in which the Premises are Building is located. Said appointment One such broker shall be made selected by Landlord within ten (10) 7 days following after Tenant's election of arbitration, one such broker shall be selected by Tenant within the expiration of the sixty (60) same 7 day period aforesaidperiod, and if one of the parties does not appoint an appraiser within that time, the single appraiser named third such broker shall be selected by the sole appraiser and first two within 7 days after the first two are so selected. Each broker, within 21 days after the third broker is selected, shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate submit his or her determination of the market rent within sixty rate of Base Rent, which shall be based on the criteria described in subsection (60) days. If the higher of the two estimates so determined is within ten percent (10%B) of this section above, and the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals determinations shall be set as binding on the monthly parties for purposes of calculating Base RentRent during the Renewal Period. Each party Landlord and Tenant shall pay each pay
(E) If Tenant fails to give notice exercising either option to renew by the fees date required herein, or if at the time Tenant exercises either such option or at the beginning of the appraiser appointed applicable Renewal Term there is an uncured Event of Default under this Lease, or if this Lease is assigned by such party and Tenant or the parties will share equally the fees of Premises sublet in whole or in part to any third appraiser appointed pursuant party which is not a parent, subsidiary or other affiliate of Tenant, then Tenant's right and option to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term renew shall be in addition to all Additional Rent automatically terminated and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by no further force or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldeffect.
Appears in 1 contract
Samples: Lease Agreement (Ciena Corp)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of (a) Subject to the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leaseconditions hereinafter set forth, Tenant shall have is hereby granted options (individually, a “Renewal Option” and, collectively, the option “Renewal Options”) to extend renew the initial lease term Term with respect to all, or any portion of, the Leased Premises as then demised hereunder for four six (46) additional, successive terms periods of five (5) years each (eachindividually, an "OPTION TERM"a “Renewal Term” and collectively the “Renewal Terms”); provided that the Term shall not extend, for any portion of the Leased Premises, beyond the Outside Expiration Date.
(b) The first Renewal Term (if the first Renewal Option is exercised) shall commence at the expiration of the Initial Term, and each subsequent Renewal Term (if the pertinent Renewal Option is exercised) shall commence at the expiration of the immediately preceding Renewal Term. Tenant shall exercise the optioneach of its Renewal Options, if at all, by delivering notice of such exercise to Landlord written notice of the exercise no sooner than fifteen (15each, a “Tenant’s Renewal Notice”) months nor not later than twelve (12) months prior to the then current expiration of the initial Term. In any case that Tenant exercises a Renewal Option with respect to less than all of the Leased Premises as then demised hereunder, Tenant shall identify the portion(s) of the Leased Premises with respect to which the Renewal ________________________________________________________________________________________________________________________ Option is being exercised. IN ORDER TO PREVENT TENANT’S INADVERTENT FORFEITURE OF ANY THEN REMAINING RENEWAL OPTION, IF TENANT SHALL FAIL TO TIMELY EXERCISE ANY AVAILABLE RENEWAL OPTION, TENANT’S RIGHT TO EXERCISE SUCH RENEWAL OPTION SHALL NOT LAPSE UNTIL LANDLORD SHALL DELIVER TO TENANT WRITTEN NOTICE THAT SUCH NOTICE OF EXERCISE HAS NOT BEEN DELIVERED AND TENANT SHALL THEREAFTER FAIL TO EXERCISE SUCH RENEWAL OPTION WITHIN TEN (10) BUSINESS DAYS FOLLOWING THE DELIVERY OF SUCH NOTICE.
(c) Tenant’s leasing of the Leased Premises during any Renewal Term shall be upon all the then executory terms and conditions of this Lease (as applicable prior to such Renewal Term), except as follows:
(1) The Annual Basic Rent Factor for each Renewal Term shall be equal to the Fair Market Rental Value Per RSF of the Base Leased Premises for the Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided); provided, however, that:
(A) if, as of the commencement of such Renewal Term, both (i) Tenant hereunder is a Wachovia Xxxxx, and (ii) the Integration Period has not ended, then the Annual Basic Rent Factor for such Renewal Term shall be adjusted as provided in Section 2 of the Master Agreement, as applicable;
(B) if, as of the commencement of such Renewal Term, the Tenant hereunder is not a Wachovia Party (whether or not the Integration Period has ended), then the Annual Basic Rent Factor for such Renewal Term shall not exceed a rate equal to 110% of the Annual Basic Rent Factor on the last day of the Initial Term or immediately preceding Option Renewal Term, as applicable. Tenant's right ; and
(C) if, as of the commencement of such Renewal Term, (i) the Tenant hereunder is a Wachovia Party, and (ii) the Integration Period has ended, then the Annual Basic Rent Factor for such Renewal Term shall not exceed the following: (x) in the case of the first Renewal Term, a rate equal to exercise 110% of the Annual Basic Rent Factor on the last day of the Initial Term; and (y) in the case of each option subsequent Renewal Term, a rate equal to 105% of the Annual Basic Rent Factor for the immediately preceding Renewal Term.
(2) The STAS Basic Rental Factor for each Short-Term Additional Space for each Renewal Term shall be conditioned upon equal to the Fair Market Rental Value Per RSF of such Short-Term Additional Space for such Renewal Term (as determined by the parties or, in the absence of their agreement, determined by appraisal, all as herein-after provided).
(d) Within thirty (30) days following the Renewal Option Notice Date with respect to any Renewal Option, Landlord shall deliver to Tenant, a proposal setting forth Landlord’s determination of the Fair Market Rental Value Per RSF for the Leased Premises for the pertinent Renewal Term (which, if the Leased Premises as to which such Renewal Option is exercised includes any Short-Term Additional Space, then such determination shall include separate components for the Fair Market Rental Value Per RSF for the Base Leased Premises, and the ________________________________________________________________________________________________________________________ Fair Market Rental Value Per RSF of the Short-Term Additional Space). Thereafter, and until the delivery of a Renewal Appraisal Notice, Landlord and Tenant delivering shall endeavor to reach agreement as to the Fair Market Rental Value Per RSF of the Leased Premises for the pertinent Renewal Term (and, as applicable, each component thereof).
(e) If Landlord and Tenant are unable to reach a definitive agreement as to the Fair Market Rental Value Per RSF for Leased Premises for any Renewal Term within sixty (60) days following the Renewal Option Notice Date, then either Landlord or Tenant, by written notice thereof to the other party (herein called a “Renewal Appraisal Notice”), may cause such Fair Market Rental Value Per RSF to be submitted for resolution in accordance with the following provisions of this Section 1.4(e):
(1) Within thirty (30) days after delivery of the Renewal Appraisal Notice, Landlord and Tenant shall each select and engage an Appraiser to determine such Fair Market Rental Value Per RSF. If either party fails to select and engage an Appraiser within such time, and if such failure continues for more than five (5) Business Days following such party’s receipt of written notice that states in all capital letters (or other prominent display) that such party has failed to select an Appraiser as required under the Lease and will be deemed to have waived certain rights granted to it under the Lease unless it selects an Appraiser within five (5) Business Days, then the Appraiser engaged by the other party shall select the second Appraiser.
(2) Within thirty (30) days following the date on which the second Appraiser is selected, (i) each Appraiser shall prepare a sealed determination of the such Fair Market Rental Value Per RSF, (ii) the Appraisers, together with Landlord and Tenant, shall arrange a meeting at the Property during Building Operating Hours (or at such other place and time as is reasonably acceptable to both Appraisers, Landlord and Tenant) for the purpose of distributing such sealed determinations, and (iii) at such meeting, the Appraisers shall each simultaneously present their determinations of such Fair Market Rental Value Per RSF, to the other Appraiser and to Landlord and Tenant. If the higher of the two determinations of such Fair Market Rental Value Per RSF does not exceed one hundred five percent (105%) of the lower of the two determinations of such Fair Market Rental Value Per RSF, then the average of the two (2) determinations shall be such Fair Market Rental Value Per RSF (and the same shall constitute the final determination thereof). If the higher of the two determinations of such Fair Market Rental Value Per RSF exceeds 105% of the lower of the two determinations of such Fair Market Rental Value Per RSF, then within five (5) Business Day after receipt by Landlord and Tenant of both appraisal reports, the Appraisers selected by Landlord and Tenant shall agree on a third Appraiser (the “Third Appraiser”) to make a determination of such Fair Market Rental Value Per RSF. The Third Appraiser shall not make an independent determination, but shall, within ten (10) Business Days after his or her designation, select one (1) of the two (2) determinations already made, whichever of the two determinations the Third Appraiser determines to be closest to such Fair Market Rental Value Per RSF, as the controlling determination with Tenant's notice respect to such Fair Market Rental Value Per RSF. The decision of exercisethe Third Appraiser shall be conclusive and binding; and such Fair Market Rental Value Per RSF shall be as set forth in such controlling determination (which shall constitute the final determination thereof). Each party shall pay the costs of its Appraiser and one-half (1/2) of the cost of the Third Appraiser. ________________________________________________________________________________________________________________________
(3) The instructions to the Appraisers with respect to the determination of such Fair Market Rental Value Per RSF will be to determine the same solely in accordance with the definition Fair Market Rental Value Per RSF as set forth in this Lease (including the criteria and assumptions set forth therein). The Appraisers shall have no authority to alter any provisions of such definition, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution any other provisions of this Lease.
(4) Within thirty (30) days following the final determination of such Fair Market Rental Value Per RSF, Tenant shall elect one (1) of the following options by written notice to Landlord: (A) to revoke the exercise of the pertinent Renewal Option, in which event, the Term shall automatically, and without further action of Landlord or Tenant, expire on the later of (1) the expiration of the Initial Term (or, if applicable, the expiration of the Renewal Term with respect to the immediately preceding Renewal Option) or (2) the last day of the calendar month that is six (6) months following the month in which Tenant’s notice of revocation was given to Landlord; or (B) to ratify its exercise of the pertinent Renewal Option. If Tenant's financial condition has declined in Landlord's business judgmentTenant fails to exercise either of the foregoing options within such thirty (30) day period, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that then Tenant shall be deemed to have no additional elected option periods (B). If Tenant elects (or is deemed to have elected) option (B), then Tenant thereby shall have irrevocably exercised the pertinent Renewal Option and Tenant may not thereafter withdraw the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement exercise of the applicable Option Term, Renewal Option.
(5) If the Fair Market Rental Value Per RSF of the Leased Premises for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option any Renewal Term shall be not have been final determined prior to the commencement of the applicable Option Renewal Term in (and, accordingly, the following manner: If Landlord actual Annual Basic Rent therefor is not finally known as of the commencement of such Renewal Term), then (i) for the period commencing on such first day of such Renewal Term and Tenant are unable to agree ending on the market rent date that such Fair Market Rental Value Per RSF is finally determined, Tenant shall make payments, on account of the Annual Basic Rent for such Renewal Term (as and when Annual Basic Rent is payable under this Lease) based upon the Annual Basic Rent Factor in effect immediately prior to such Renewal Term, and, for any Short Term Additional Space, the STAS Basic Rental Factor in effect immediately prior to such Renewal Term, and (ii) upon such Fair Market Rental Value Per RSF being finally determined, such payments on account of Annual Basic Rent shall be reconciled with the actual Annual Basic Rent, and, within sixty thirty (6030) days after such final determination, (x) if such payments on account of Annual Basic Rent made by Tenant gives notice of its exercise of during such period were less than the Option Termactual Annual Basic Rent for such period, then Tenant shall have pay to Landlord the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration amount of such 60-day period. In the event of such revocationdeficiency, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate together with interest thereon at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidPrime Rate, and (y) if one such payments on account of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Annual Basic Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid made by Tenant during the Option Term shall be the average such period were in excess of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower oneactual Annual Basic Rent for such period, the two appraisers then Landlord shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal refund to Tenant and may not be assigned the amount of such excess, together with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldinterest thereon at the Prime Rate.
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Options to Renew. Provided that no Event of Default by (i) Landlord hereby grants to Tenant under this Lease exists as an option to renew the Term of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term Lease for four two (42) additional, successive additional terms of five (5) years each commencing with the expiration of the then current Term (each, an "OPTION TERM"a “Renewal Term”). , exercisable by Tenant shall exercise the option, if at all, by delivering to giving Landlord written notice of the exercise no sooner its intent to renew not less than fifteen eighteen (15) months nor later than twelve (1218) months prior to the date of expiration of the initial Lease Term or preceding Option the then applicable Renewal Term, as applicable. Tenant's right to exercise each option the case may be and shall be conditioned upon subject to the following conditions: (i) Tenant delivering is not then in default of its obligations under the Lease beyond all applicable notices and opportunities to Landlord with Tenant's notice cure, and (ii) all other terms and conditions of exercise, current financial reports which evidence the Lease for the Renewal Term shall be the same as contained in the original Lease except that Tenant's financial condition on (w) the Annual Base Rent for the Renewal Term shall be at the prevailing market rental rate as of the date the Renewal Term commences but in any event, not less than the Annual Base Rent plus escalations being paid by Tenant at the expiration of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgmentOriginal Term, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s(x) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no further options to renew the Term of this Lease after the second such renewal (if exercised), (y) the Landlord shall have no obligation to provide additional option periods Tenant improvements except as may otherwise be agreed upon in writing by Landlord and Tenant, and (z) the Base Year for the first (1st) Renewal Term shall be calendar year 2015 and the Base Rent payable during Year for the first Lease Year of each Option Term second (and for increases during the Option Term, as applicable2nd) Renewal term shall be calendar year 2020. In determining the prevailing market rate then prevailing as projected for the commencement of the applicable Option Termrental rate, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term consideration shall be determined prior given to then available terms for comparable buildings in downtown Cleveland including free rent, base year, gross-up provisions, tenant improvement allowances, brokerage fees, architectural allowances and Common Area factors.
(ii) In the commencement of the applicable Option Term in the following manner: If event Landlord and Tenant are unable to agree on determine and negotiate the prevailing market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rental rate within sixty (60) days after Tenant’s exercise of its renewal option, then each party’s good faith determination of the appointment“prevailing market rental rate” shall be submitted to arbitration by open bid with a copy to the other party, in accordance with the following procedure:
A. Not later than seventy (70) days after Tenant’s exercise of its renewal option, Landlord and Tenant shall each appoint one independent arbitrator who shall by profession be a real estate appraiser (with the professional designation of M.A.I. or, if M.A.I. ceases to exist, a comparable designation from an equivalent professional appraiser organization) who shall have been active over the ten (10) year period ending on the date of such appointment in appraising or leasing of commercial office properties in Cleveland, Ohio. The average determination of the two closest appraisals arbitrators shall be limited solely to the issue of whether Landlord’s or Tenant’s submitted “prevailing market rental rate” for the Premises is the closest to the “prevailing market rental rate” for the Premises as determined by the arbitrators, taking into account all relevant elements.
B. The two arbitrators so appointed shall within ten (10) days of the date of the appointment of the last appointed arbitrator agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of the initial two arbitrators.
C. The three arbitrators shall within thirty (30) days of the appointment of the third arbitrator reach a final decision as to whether the monthly Base Rent. Each parties shall use Landlord’s or Tenant’s submitted “prevailing market rental rate” and shall notify Landlord and Tenant thereof in writing.
D. The decision of the majority of the three arbitrators shall be deemed the decision of all the arbitrators and shall be binding upon Landlord and Tenant.
E. If the arbitrators fail to agree upon and appoint a third arbitrator both arbitrators shall be dismissed and Landlord and Tenant shall each promptly select and appoint one new arbitrator each possessing the qualifications described in Subsection A. Such new arbitrators shall promptly follow the procedures outlined in Subsections A, B and C.
F. The costs of arbitration shall be paid by Landlord if Tenant’s submitted “prevailing market rental rate” is selected and by Tenant if Landlord’s submitted “prevailing market rental rate” is selected.
G. Notwithstanding the foregoing, if either Landlord or Tenant fails to appoint an arbitrator within seventy days (70) after Tenant exercises its renewal option as provided for in Subsection A and such failure to appoint an arbitrator is not cured within ten (10) days after receipt by such failing party of written demand to do so by the other party (which other party shall pay have appointed its arbitrator prior to sending such written demand), then the fees arbitrator appointed by the party sending such demand shall obtain from the then president of the appraiser appointed by Cleveland Area Board of Realtors (unless such party and person is then in the parties will share equally employ of either party, in which event, from the fees holder of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the abovenext highest elective office) identification of a designated second arbitrator possessing the qualifications described in Subsection A, the Base Rent payable by Tenant during each Option Term who shall be in addition to all Additional Rent appointed and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldserve.
Appears in 1 contract
Options to Renew. Provided that no Event of Default by Tenant under If this Lease exists as is not previously canceled or terminated and if Tenant is not in material default with respect to any of the date terms and conditions of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have two (2) successive options to renew this Lease upon the option to extend the initial lease term same terms and conditions contained in this Lease for four (4) additional, successive two additional terms of five three (53) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord written notice of the exercise no sooner than fifteen (15) months nor later than twelve (12) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition commencing on the date of exercise is equal to the original lease term would expire or better than Tenant's financial condition on the date the first option period would expire, whichever the case may be. Base rent for the two option terms shall be the then current fair market rental for the leased premises in its then as-is condition (except that the non-office space of execution the leased premises shall be valued as if no alterations, installations or improvements had been made by Tenant), but in no event less than base rent for the last year of the immediately preceding term of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the Fair market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term rental shall be determined prior to the commencement of the applicable Option Term in the following manner: If as follows:
31.1 Landlord and Tenant are unable shall endeavor in good faith to agree reach agreement on the then current market rent rental rate.
31.2 In the event that full agreement is not reached on such values within sixty (60) 30 days after Tenant gives notice of its exercise of the Option Termsecond option by Tenant, then then, within 10 days, Landlord and Tenant shall have each designate an MAI real estate appraiser to determine the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day periodthen current market rental rate. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties party does not appoint an appraiser within that timesuch period, the single current market rental rate of the appraiser named chosen by the other party shall be controlling. In the sole event both parties timely appoint an appraiser, those two appraisers, together with a third appraiser appointed by the previously appointed appraisers, shall value the then current market rental rate for the leased premises. All current market rental rate evaluations 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 set determine the monthly Base Rent then current fair market rental rate of the leased premises for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate purpose of the market rent within sixty (60) days. If the higher of the renewal term contained herein and if no two estimates such appraisers can so determined is within ten percent (10%) of the lower estimateagree, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals appraiser's determinations of fair market rental rate shall be set controlling. Notwithstanding anything contained herein to the contrary, the then current market rental rate, as determined by the monthly Base Rent. Each party appraisers, shall pay not be less than the fees amount paid in the last year of the appraiser appointed by such party and immediately preceding term. Tenant must give Landlord 270 days advance written notice of the parties will share equally the fees exercise of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term option specified herein which shall be sent certified mail, return receipt requested at the place for notices specified in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Samples: Lease (Atmi Inc)
Options to Renew. Provided that no Event of Default by Tenant under shall, provided this Lease exists as is in full force and effect and Tenant is not then in monetary or nonmonetary material default under any of the date terms and conditions of exercise this Lease (following the giving of written notice and passage of the applicable option or at the expiration of the initial cure period under Section 24), have three (3) successive option(s) to renew this Lease for a term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (year(s) each, an "OPTION TERM"). 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 exercise the option, if at all, by delivering to provide Landlord with written notice of no earlier than the exercise no sooner than fifteen date which is three hundred sixty-five (15365) months nor later than twelve (12) months days prior to the expiration of the initial Lease Term or preceding Option Termthen current term of this Lease, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition but no later than 5:00 p.m. (Pacific Standard Time) on the date which is two hundred seventy (270) days prior to the expiration of exercise is equal to or better than Tenant's financial condition on the date of execution then current term of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees fails to provide a new Letter(ssuch notice, Tenant shall have no further or additional right to extend or renew the term of this Lease.
(2) The Base Rent in effect at the expiration of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants then current term of this Lease shall be adjusted to reflect the current fair market rental for comparable space in the Building 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 in full force and effect during the Option Termsconstant, provided that Tenant shall have no additional option periods and the Building amenities, location, identity, quality, age, conditions, term of lease, tenant improvements, services provided, and other pertinent items. The “Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) Year” shall be the market rate then prevailing as projected for calendar year in which the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout renewal term occurs.
(3) Landlord shall advise Tenant of the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). new Base Rent for the Option Term shall be determined prior to the commencement of Premises for the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree renewal term which will be based on the Landlord’s determination of fair market rent within sixty rental value no later than fifteen (6015) days after Tenant gives receipt of notice of its Tenant’s exercise of the Option Term, then its option to renew. Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten forty-five (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (6045) days after receipt of such notification from Landlord to accept the appointment. The average of the two closest appraisals shall be set as the monthly new Base Rent. Each party shall pay the fees of the appraiser appointed by such party , terms and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldconditions.
Appears in 1 contract
Samples: Lease Agreement (Health Net Inc)
Options to Renew. A. Provided that no Event default exists and Tenant is occupying the entire Premises at the time of Default by such election, Tenant under may renew this Lease exists as of the date of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four one (41) additional, successive terms additional period of five (5) years each (each, an "OPTION TERM"the “First Extension Term”) on the same terms provided in this Lease (except as set forth below). Tenant shall exercise the option, if at all, by delivering to Landlord written notice (the "First Renewal Notice") of the exercise no sooner than fifteen thereof to Landlord at least nine (15) months nor later than twelve (129) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Upon Tenant's financial condition has declined ’s timely notice of the exercise of the option to renew, the Lease shall be extended on the same terms provided in Landlord's business judgmentthis Lease, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(sexcept as follows:
(a) of Credit with terms and amounts acceptable to The Rent payable during such First Extension Term shall be the prevailing rental rate, as determined by Landlord in its business judgment commercially reasonable discretion (and with Landlord’s delivery, if requested by Tenant, of the basis for such determination), for buildings comparable to secure Tenant's obligations during the applicable Option Building, at the commencement of such First Extension Term. All terms, provisionsfor space of equivalent quality, conditions size, utility and covenants location, with the length of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods First Extension Term and the Base credit standing of Tenant to be taken into account; and
(b) Landlord shall lease to Tenant the Premises in their then current condition, and Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, tenant improvements allowance and the like) or other tenant inducements. Landlord shall deliver written notice (the "Landlord Notice") to Tenant, within thirty (30) days after Landlord's receipt of a timely First Renewal Notice, which sets forth the Rent determined by Landlord to be payable during the first Lease Year of each Option First Extension Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement after consideration of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors set forth under clause (the "MARKET RENT")a) above. Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice right, within ten (10) days following the expiration date of such 60-day periodthe Landlord Notice, to deliver written notice (the "First Revocation Notice") to Landlord that Tenant elects to revoke its exercise of the renewal option. In the event of such revocationIf Tenant delivers a First Revocation Notice, Tenant shall forfeit all rights have no further right to thereafter exercise any option under extend the term of this Lease and the this Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following upon the expiration of the sixty initial term hereof. If Tenant timely delivers a First Renewal Notice but fails to timely deliver a First Revocation Notice, this Lease shall be extended on the terms set forth above and at the Rent specified in the Landlord Notice. Tenant's right to extend the term of this Lease shall terminate if (60i) day period aforesaid, and if one this Lease or Tenant's right to possession of the parties does not appoint an appraiser within that timePremises is terminated, (ii) Tenant, at any time during the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Lease Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate assigns any of its interest in this Lease or sublets any portion of the market rent within sixty Premises other than as permitted under the terms of Section 12.6 hereof, (60iii) days. If the higher Tenant delivers a First Revocation Notice, or (iv) Tenant fails to timely exercise its option under this Section 34A. , time being of the two estimates so determined essence with respect to Tenant's exercise thereof.
B. Provided no default exists and Tenant is within ten percent occupying the entire Premises at the time of such election, Tenant may renew this Lease for a second additional period of five (10%5) years (the “Second Extension Term”) on the same terms provided in this Lease (except as set forth below), by delivering written notice (the "Second Renewal Notice") of the lower estimateexercise thereof to Landlord at least nine (9) months prior to the expiration date of the First Extension Term. Upon Tenant’s timely notice of the exercise of the option to renew, then the monthly Base Lease shall be extended on the same terms provided in this Lease, except as follows:
(a) The Rent to be paid by Tenant payable during the Option such Second Extension Term shall be the average prevailing rental rate, as determined by Landlord in its commercially reasonable discretion (and with Landlord’s delivery, if requested by Tenant, of the amounts determined by basis for such determination), for buildings comparable to the appraisers. If Building, at the difference between commencement of such Second Extension Term, for space of equivalent quality, size, utility and location, with the two estimates exceeds ten percent (10%) length of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party Second Extension Term and the parties will share equally the fees credit standing of any third appraiser appointed pursuant Tenant to this Section A-2.1. Notwithstanding the above, the Base Rent payable be taken into account;
(b) Tenant shall have no further renewal options unless hereafter expressly granted by Tenant during each Option Term Landlord in writing; and
(c) Landlord shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal lease to Tenant the Premises in their then current condition, and may Landlord shall not be assigned with an assignment of this Lease except in connection with an assignment provide to an entity which controlsTenant any allowances (e.g., is controlled by or is under common control with Tenant (as defined in Article 20 of this Leasemoving allowance, construction allowance, tenant improvements allowance and the like) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldother tenant inducements.
Appears in 1 contract
Samples: Office Lease (Opko Health, Inc.)
Options to Renew. Provided that no Event of Default by Tenant under this Lease exists as of the date of exercise of the shall not then be in default hereunder beyond any applicable option grace or at the expiration of the initial term or preceding Option Termcure period, then and provided further that Tenant has not assigned this Leaseonly in such event, Tenant shall have the option right and option, by giving notice as set forth below, to extend and renew the initial lease term of this Lease for four two (42) additional, successive additional terms of five (5) years each (eachhereinafter the "Options to Renew") the first option to renew beginning on April 1, an 2001 (the "OPTION TERMFirst Renewal Term") and the second option to renew beginning upon the expiration of the First Renewal Term (the "Second Renewal Term"). Each renewal term shall be upon the same terms and conditions of the preceding term of this Lease [excluding Base Rent which shall be at the greater of (i) ninety-five percent (95%) of the prevailing market rate, in effect as of the commencement of such renewal term, as determined by the parties no later than sixty (60) days after Tenant's exercise of such Option to Renew, (in accordance with the definition of prevailing market rate in paragraph 38 below) or (ii) the Base Rent due and payable by Tenant during the last lease year of the immediately prior lease term hereof). Notwithstanding the foregoing, Tenant shall exercise not be entitled to any free rent or construction allowance or Landlord's Work otherwise applicable during the optioninitial term of this Lease for either renewal term, except to the extent same is included (if at all) as part of the prevailing market rate determined below. If Tenant desires to exercise the Options to Renew, by delivering to Tenant shall give Landlord written notice of the exercise no sooner than fifteen thereof at least eighteen (15) months nor later than twelve (1218) months prior to the expiration commencement of such renewal term, and in the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice event of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution any earlier termination of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that or if Tenant shall have no additional option periods fail to timely exercise the aforesaid Option(s) to Renew then and in such event, all rights of Tenant to the Base Rent payable during the first Lease Year of each Option First Renewal Term (and for increases during the Option Term, as applicable) Second Renewal Term shall be of no further force or effect. In the market rate then prevailing as projected for event the commencement of parties are unable to agree upon the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option then exercised Renewal Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its Tenant's exercise of the Option Termto Renew, then then, unless Tenant shall have the right elects by writing delivered to revoke its exercise of the option by delivering written notice within ten Landlord at any time not later than five (105) days following the expiration of after such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidto revoke its exercise of such Option to Renew (and thereby have no further obligations with respect to such space), and if the prevailing market rate shall be determined by a board of three (3) licensed real estate brokers, one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.whom
Appears in 1 contract
Options to Renew. Provided (a) Article 42 of the Original Lease is hereby deleted from the Lease in its entirety and replaced with the following text: “Intentionally omitted.” From and after the date of this Agreement, provided that no at the time of the exercise of the Renewal Options (as hereinafter defined): (i) this Lease shall be in full force and effect; (ii) there shall not then be existing an Event of Default by Tenant under this Lease exists as Lease; and (iii) Tenant (and/or its Permitted Transferee) shall not have subleased to a third party more than 5% of the date of exercise rentable area of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this LeaseRenewal Premises (as hereinafter defined), Tenant shall have the option two (2) options to extend the initial lease term Term of this Lease (each, a “Renewal Option”, and collectively, the “Renewal Options”), each for four (4) additional, successive terms a period of five (5) years each (each, an "OPTION TERM"a “Renewal Term”), on the terms of the Lease, as amended by this Agreement (except as set forth below). Tenant Each Renewal Option shall exercise the optionbe exercisable by written notice (each, if at all, by delivering a “Renewal Notice”) given to Landlord written notice of the exercise no sooner than fifteen at least eighteen (15) months nor later than twelve (1218) months prior to the expiration of Fixed Expiration Date (or, with respect to the initial Lease Term or preceding Option second Renewal Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement Expiration Date of the applicable Option Term first Renewal Term), with time being of the essence with respect to the giving of each Renewal Notice. Notwithstanding the first sentence of this Section 13(a), Landlord, in its sole discretion, may waive any default by Tenant or occupancy requirement and no such default or occupancy requirement may be used by Tenant to negate the following manner: If Landlord and effectiveness of Tenant’s exercise of any Renewal Option. The “Renewal Premises” shall be comprised of either (x) the entire Premises then demised to Tenant; or (y) a portion of the Premises consisting of the Original Premises; or (z) a portion of the Premises consisting of the Original Premises together with one or more additional full floors of the Premises; provided, however, that if Tenant are unable to agree shall then lease less than the entire rentable area of any floor of the Building, Tenant may include such space in any Renewal Premises constituted in accordance with clause (z) so long as (1) such space is on the market rent within sixty (60) days after Tenant gives notice of its exercise basement level of the Option TermBuilding or (2) such space shall be vertically contiguous to another portion of the Renewal Premises. Notwithstanding anything to the contrary contained herein, then Tenant shall not have the right to revoke create any non-existing non-contiguity through its exercise composition of the option by delivering written notice within ten Renewal Premises in accordance with clause (10z) days following of the expiration preceding sentence. If Tenant shall fail to indicate the Renewal Premises in any Renewal Notice (with time being of such 60-day period. In the event of such revocationessence), Tenant shall forfeit all rights be deemed to thereafter have elected to exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then applicable Renewal Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice respect to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the entire Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent demised to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheld.
Appears in 1 contract
Samples: Lease (Squarespace, Inc.)
Options to Renew. Provided that no Event of Default by Tenant is not in default or breach under this Lease exists as any of the date terms, covenants, or conditions of exercise of the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have one (1) option (the option "Option to extend the initial lease term Renew") to renew this Lease for four a period of three (4) additional, successive terms of five (53) years each (each, an the "OPTION TERMRenewal Term"). Tenant shall exercise the option, if at all, by delivering ) upon written notice to Landlord written notice of the exercise no sooner not less than fifteen two hundred seventy (15270) months nor later than twelve (12) months days prior to the expiration of the initial Lease Term or preceding Option Termexisting term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with same terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during existing at the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement expiration of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT")existing term. The Base Rent for year one (1) of the Option Term extension shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term$41,849.60 per month, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, or then Option Term, as applicable. If Tenant does not revoke its exercise and elects to proceed with the determination of market rent, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for year two (2) of the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment extension shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaid$43,157.40 per month, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate of the market rent within sixty year three (60) days. If the higher of the two estimates so determined is within ten percent (10%3) of the lower estimate, then extension shall be $44,465.20 per month. The Tenant shall take the monthly Base Rent to be paid by Tenant Premises "as-is" during the Renewal Term, subject to Landlord's continuing repair and maintenance obligations under the Lease. Landlord shall not be responsible for any Tenant broker representative commission if Tenant exercises the Option Term to Renew. All other terms and conditions of the Lease shall continue to apply. Should Tenant decide to exercise this Option to Renew, the Base Year shall be amended to 2014. This Option to Renew shall be personal to Tenant. Additionally Landlord shall grant Tenant the average right to terminate the Lease on either July 31, 2015 or July 31, 2016 provided that the following minimum conditions are met:
(a) Tenant is not in default of the amounts determined by Lease and has no financial responsibility owed to Landlord;
(b) This Right to Terminate is for the appraisers. If entire Leased Premises, not a portion thereof;
(c) Tenant provides Landlord with prior written notice on or before January 31, 2015 to terminate the difference between lease on July 31, 2015 and on or before January 31, 2016 to terminate the two estimates exceeds ten percent lease on July 31, 2016 of its intent to exercise this termination option (10%"Termination Notice Date");
(d) of There is no fee or cost to terminate the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed Lease pursuant to this Section A-2.1. Notwithstanding Section; and
(e) This right to terminate the above, the Base Rent payable by Tenant during each Option Term Lease shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant, and shall be void in the event of an assignment, transfer or sublease; provided, however, that this right to terminate the Lease may be exercised by any acquiror of Tenant and may not be assigned with an assignment in a change in control of this Lease except in connection with an assignment to an entity which controls, is controlled Tenant or by any acquiror of all or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldassets.
Appears in 1 contract
Samples: Lease (Autobytel Inc)
Options to Renew. Provided that no Event (a) Subject to the provisions of Default by Tenant under this Lease exists as Section 26 of the date Lease, and provided that Tenant is not in default at the time of Tenant's exercise of the applicable option Option or at the expiration commencement of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Leaseextended term, Tenant shall have the option to extend the initial lease term for four one (41) additional, successive terms of five (5) years each (each, an "OPTION TERM")year Option to renew this Lease. Tenant shall exercise the option, if at all, by delivering provide to Landlord on a date which is prior to the date that the Option period would commence (if exercised) by at least two hundred seventy (270) days and not more than three hundred sixty-five (365) days, a written notice of the exercise of the Option to extend the Lease for such additional Option term, time being of the essence. Such notice shall be given in accordance with Section 40 of the Lease, as amended by Section 26.6. If notification of the exercise of the Option is not so given and received, all Options granted hereunder shall automatically expire. Base Rent applicable to the Premises for the Option term shall be equal to the "Fair Market Rental" as hereinafter defined. All other terms and conditions of the Lease shall remain the same, except that after Tenant’s exercise of the Option, Tenant shall have no sooner than further Option to renew the Lease.
(b) If the Tenant exercises the Option, the Landlord shall determine the Fair Market Rental by using its good faith judgment. Landlord shall provide Tenant with written notice of such amount within fifteen (15) months nor later than twelve days after Tenant exercises its Option. Tenant shall have fifteen (1215) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. days ("Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with TenantReview Period") after receipt of Landlord's notice of exercise, current financial reports the new base rent within which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless such rental. In the event Tenant agrees fails to provide a new Letter(s) of Credit with terms accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Termattempt to agree upon such Fair Market Rental, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT")using their best good faith efforts. Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable fail to agree on the market rent reach agreement within sixty fifteen (6015) days after Tenant gives notice of its exercise of following Tenant's Review Period ("Outside Agreement Date") then the Option Term, then Tenant parties shall have the right to revoke its exercise of the option by delivering written notice each within ten (10) days following the expiration Outside Agreement Date appoint a real estate broker who shall be licensed in the State of such 60-day period. In Maryland and who specializes in the event field of such revocationcommercial office space leasing in the Rockville, Tenant shall forfeit all rights to thereafter exercise any option under this Lease Maryland market, has at least five (5) years of experience and is recognized within the Lease shall terminate at the end of the initial term, or then Option Term, field as applicablebeing reputable and ethical. If Tenant one party does not revoke its exercise and elects to proceed with the determination of market renttimely appoint a broker, then the monthly Base Rent and Additional Rent payable during the Option Term shall be determined broker appointed by appraisal in the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below shall be the Base Rent for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party shall promptly appoint a broker for such party, . Such two individuals shall appoint as an appraiser an experienced commercial real estate agent in the area in which the Premises are located. Said appointment shall be made each determine within ten (10) days following after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the expiration two individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the sixty (60) day period aforesaid, and if one of the parties does not appoint an appraiser within that time, the single appraiser named shall be the sole appraiser and shall set the monthly Base Rent for the Option Termqualifications described above. If the two appraisers brokers are unable to agree upon a third broker, the third broker shall be appointed as provided herein, each shall independently prepare an estimate by the President of the market rent within sixty (60) daysXxxxxxxxxx County Board of Realtors. In the event the Xxxxxxxxxx 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 higher third broker shall be appointed by the Chief Judge of the two estimates so determined is within ten percent (10%) Circuit Court of the lower estimateXxxxxxxxxx County, then the monthly Base Rent to be paid by Tenant during the Option Term Maryland. The third individual shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointmenthis or her appointment make a determination of such Fair Market Rental. The average third individual shall determine which of the determinations of the first two individuals is closest appraisals to his own and the determination that is closest shall be set as final and binding upon the monthly Base Rentparties, and such determination may be enforced in any court of competent jurisdiction. Each party Landlord and Tenant shall pay each bear the fees cost of its broker and shall share equally the cost of the appraiser appointed third 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 Rental" shall mean the annual amount per rentable square foot that a willing, comparable renewal tenant would pay and a willing, comparable landlord of a similar office building would accept at arm's length for similar space, giving appropriate consideration to the following matters: (i) annual rental rates per rentable square foot; (ii) the type of escalation clauses (including, without limitation, operating expenses, real estate taxes, and CPI) and the extent of liability under the escalation clauses (i.e., whether determined on a "net lease" basis or by such party increases over a particular base year or base dollar amount); (iii) rent abatement provisions reflecting free rent and/or no rent during the lease term; (iv) length of lease term; (v) size and location of premises being leased; (vi) the value of the tenant improvements; and (vii) other generally applicable terms and conditions of tenancy for similar space; provided, however, Tenant shall not be entitled to any tenant improvement or refurbishment allowance. The Fair Market Rental may also designate periodic rental increases, a new Base Year and similar economic adjustments. The Fair Market Rental shall be the Fair Market Rental in effect as of the beginning of the applicable Option period, even though the determination may be made in advance of that date, and the parties will share equally may use recent trends in rental rates in determining the fees proper Fair Market Rental as of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, beginning of the Base Rent payable by Tenant during each applicable Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldperiod.
Appears in 1 contract
Options to Renew. Provided 24.01 The Landlord hereby covenants and agrees that no Event if, upon the termination of Default by Tenant under the original term of this Lease exists as if Tenant is not in default under any of the date material terms, covenants or conditions of exercise this Lease on Tenant's part to be observed or performed beyond any applicable grace period provided for in this Lease for the curing of such default, the applicable option or at the expiration of the initial term or preceding Option Term, and provided further that Tenant has not assigned this Lease, Tenant shall have the option to extend the initial lease term for four (4) additional, successive terms of five (5) years each (each, an "OPTION TERM"). Tenant shall exercise the option, if at all, by delivering to Landlord upon giving written notice of the its exercise no sooner than fifteen thereof six (15) months nor later than twelve (126) months prior to the expiration of the initial Lease Term or preceding Option Term, as applicable. Tenant's right to exercise each option shall be conditioned upon Tenant delivering to Landlord with Tenant's notice of exercise, current financial reports which evidence that Tenant's financial condition on the date of exercise is equal to or better than Tenant's financial condition on the date of execution of this Lease. If Tenant's financial condition has declined in Landlord's business judgment, Landlord may refuse to accept Tenant's exercise unless Tenant agrees to provide a new Letter(s) of Credit with terms and amounts acceptable to Landlord in its business judgment to secure Tenant's obligations during the applicable Option Term. All terms, provisions, conditions and covenants of this Lease shall remain in full force and effect during the Option Terms, provided that Tenant shall have no additional option periods and the Base Rent payable during the first Lease Year of each Option Term (and for increases during the Option Term, as applicable) shall be the market rate then prevailing as projected for the commencement of the applicable Option Term, for premises comparable in size, quality and location in comparable class R&D/Office buildings throughout the Tri-Valley/Livermore area taking into account all relevant factors (the "MARKET RENT"). Base Rent for the Option Term shall be determined prior to the commencement of the applicable Option Term in the following manner: If Landlord and Tenant are unable to agree on the market rent within sixty (60) days after Tenant gives notice of its exercise of the Option Term, then Tenant shall have the right to revoke its exercise of the option by delivering written notice within ten (10) days following the expiration of such 60-day period. In the event of such revocation, Tenant shall forfeit all rights to thereafter exercise any option under this Lease and the Lease shall terminate at the end of the initial term, to further extend the term of the Lease for an additional term of five (5) years (the First Option Period) upon the same terms and conditions herein contained, except that the rental as provided in Article 3 shall be calculated as hereinafter provided. Upon the termination of the first option period, if Tenant is not in default under any of the material terms, covenants or then Option Termconditions of this Lease on Tenant's part to be observed or performed beyond any applicable grace period provided for in this Lease for the curing of such default, as applicable. If the Tenant does not revoke shall have the option, upon giving written notice of its exercise thereof six (6) months prior to the end of the first option period, further to extend the term of the Lease for an additional term of five (5) years upon the same terms and elects conditions herein contained, except that the rental as provided in Article 3 shall be calculated as hereinafter provided, and there shall be no further options to proceed with extend the determination Lease. During the option periods, rental shall be adjusted (hereinafter referred to as the "Adjustment"), effective as of market rentthe commencement of any extension of the Term of this Lease, then to reflect any increase in the monthly Base Rent cost of living based upon the "Consumer Price Index for Urban Wage Earners and Additional Rent payable Clerical Workers, Northeast. All items - (1982-84 = 100)" (hereinafter referred to as the "Index") published by the Bureau of Labor Statistics of the United States Department of Labor. The Adjustment shall be calculated by multiplying the rental in effect during the Option first month of the Original Term shall be determined by appraisal in a fraction, the following manner: If Landlord and Tenant can agree on a single appraiser, then the rate set by such appraiser as set forth below numerator of which shall be the Base Rent Index for the Option Term. If the parties cannot agree on a single appraiser, then each party, by giving written notice to the other party, shall appoint as an appraiser an experienced commercial real estate agent in the area month in which commences each extension of term (or the Premises are located. Said appointment shall be made within ten (10) days following the expiration of the sixty (60) day period aforesaidnearest reported preceding month), and if one the denominator of the parties does not appoint an appraiser within that time, the single appraiser named which shall be the sole appraiser and shall set the monthly Base Rent corresponding Index for the Option Term. If the two appraisers are appointed as provided herein, each shall independently prepare an estimate first full month of the market rent within sixty (60) days. If the higher of the two estimates so determined is within ten percent (10%) of the lower estimate, then the monthly Base Rent to be paid by Tenant during the Option Term shall be the average of the amounts determined by the appraisers. If the difference between the two estimates exceeds ten percent (10%) of the lower one, the two appraisers shall select a third appraiser meeting the qualifications set forth hereinabove within ten (10) days thereafter who will likewise independently estimate the market rate within sixty (60) days after the appointment. The average of the two closest appraisals shall be set as the monthly Base Rent. Each party shall pay the fees of the appraiser appointed by such party and the parties will share equally the fees of any third appraiser appointed pursuant to this Section A-2.1. Notwithstanding the above, the Base Rent payable by Tenant during each Option Term shall be in addition to all Additional Rent and other sums and charges payable by Tenant under the terms of this Lease. Tenant acknowledges that the options granted herein are personal to Tenant and may not be assigned with an assignment of this Lease except in connection with an assignment to an entity which controls, is controlled by or is under common control with Tenant (as defined in Article 20 of this Lease) or which is a successor to Tenant by merger, consolidation or sale of substantially all of Tenant's assets with Landlord's prior written consent, not to be unreasonably withheldinitial term hereof.
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