Permitted Assignment and Subletting Clause Samples
The Permitted Assignment and Subletting clause defines the conditions under which a tenant may transfer their lease rights or sublease the premises to another party. Typically, this clause outlines specific requirements such as obtaining the landlord’s prior written consent, meeting certain financial or operational criteria, or restricting assignments to related entities like subsidiaries or affiliates. Its core practical function is to balance the tenant’s flexibility to transfer their interest with the landlord’s need to maintain control over who occupies the property, thereby preventing unauthorized or undesirable occupants.
Permitted Assignment and Subletting. The City and the Developer agree that
Permitted Assignment and Subletting. Notwithstanding any other provision of this Lease to the contrary, Tenant has the right to assign this Lease or sublet the Building in whole or in part to any subsidiary of Tenant, affiliate of Tenant, or successor corporation or successor partnership to Tenant with financial strength equal to or greater than that of Tenant, without Landlord's consent, upon giving Landlord ten (10) days' prior written notice of such assignment or subletting. Any such assignment or subletting is herein referred to as a "No Consent Transfer". A "subsidiary" of Tenant shall mean any corporation having fifty-one percent (51%) or more, of its outstanding voting stock owned, directly or indirectly, by Tenant. An "affiliate" of Tenant shall mean any corporation which, directly or indirectly, controls or is controlled by or is under common control with Tenant. For the purpose of the definition of "affiliate", the word "control" (including "controlled by" and "under common control with"), as used with respect to any corporation, partnership, or association shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policy of a particular corporation, partnership or association, whether through the ownership of voting securities or by contract or otherwise. A "successor corporation or successor partnership" shall mean any corporation or partnership into which Tenant is merged or with which Tenant is consolidated or to which all or a substantial portion of Tenant's assets are transferred. In addition Tenant, without the necessity of Landlord's consent, shall be entitled to enter into subleases or license agreements with parties who are bona-fide joint venture partners with Tenant in particular drug testing projects, provided that Tenant or any subsidiary, affiliate, or successor corporation of Tenant shall continue to occupy not less than eighty percent (80%) of the rentable area of the Building after such sublease or license.
Permitted Assignment and Subletting. Landlord’s consent shall not be required for the following Transfers which shall be considered permitted Transfers: (1) assignments of this Lease or subleases of all or a substantial portion of the Property to an entity that is controlled by ▇▇▇▇ ▇▇▇▇▇▇ and/or B.P.M.P. Family Partners, LLC, a California limited liability company, provided that the form of the assignment and assumption or sublease agreement is reasonably acceptable to Landlord, and (2) the sublease or license of portions of the Property to a single person or entity, provided that such sublease or license (individually or collectively with all prior or concurrent subleases or licenses with the same person or entity) does not cover all or a substantial portion of the Property. Affiliated entities shall be considered a single entity for purposes of determining whether a sublease or license is a permitted Transfer under clause (2) above. As used in this Article 8, the term “substantial portion” of the Property shall mean
(i) all of Lease Area A, or (ii) all of Lease Area B, or (iii) more than forty-nine percent (49%) of the entirety of the Property (i.e., Lease Area A and Lease Area B).
Permitted Assignment and Subletting. Notwithstanding anything in this Section 30 to the contrary, the prohibition of the exercise of any of the option or right granted in Section 30 shall not apply to:
(i) the assignee or sublessee pursuant to a Permitted Transfer , or
(ii) an assignee or sublessee for whom Landlord specifically grants written consent for the transfer of all or part of the rights and options of Tenant in this Section 30; provided a general consent or non-specific or ambiguous consent shall never authorize such assignee or sublessee to exercise any the right or option in this Section 30.
Permitted Assignment and Subletting