Tenant’s Option to Extend. Section 2.3 of the Lease is hereby amended by: (a) deleting the words and numbers “fifteen (15) months” from the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”; (b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and (c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, and (ii) within ninety (90) days following the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension option.”
Appears in 1 contract
Samples: Lease (Gsi Group Inc)
Tenant’s Option to Extend. Section 2.3 Tenant shall have the right to extend the initial terms of this Lease (the Lease is hereby amended by"Extension Option") for one (1) period of ten (10) years, provided the following conditions are met:
(a) deleting There shall be no Event of Default outstanding under this Lease on the words and numbers “fifteen (15) months” from the two places in which they appear in the third sentence date Tenant exercises its option hereunder nor as of the first grammatical paragraph thereof, and by replacing them in both places with beginning of the words and numbers “twelve (12) months”;extended term.
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereofTenant shall send Landlord written notice by certified mail, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth hereinreturn receipt requested, if at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term term of this Lease on or before September 1, 2008. Said notice shall be effective upon mailing. Tenant shall include a check (the "Extension Deposit") for one-twelfth of the then-current annual rent with its mailed extension notice. Landlord shall apply the Extension Deposit towards the first month's rent during the extended term, and Landlord may retain the Extension Deposit as liquidated damages should Tenant fail to occupy the Leased Premises pursuant to its exercise of the Extension Option.
(c) If this Lease as aforesaidis canceled or terminated prior to the natural expiration of the initial term, then Tenant Tenant's option to extend hereunder shall be entitled to a return null and void, having no further force or effect.
(d) The terms of such security deposit this lease shall remain in the event that Tenant subsequently satisfies the Financial Requirement at any time full force and effect during the remaining Term extended term; provided, however, that the annual rent during the first five years of the Lease. Converselyextended term shall be the greater of (i) $500,000 or (ii) Adjusted Rent as defined in Section 4.2 hereunder, if and the annual rent during the second five years of the extended term shall be the greater of (i) $550,000 or (ii) Adjusted Rent as defined in Section 4.2 hereunder.
(e) If Tenant is not required to deliver a security deposit because it satisfied exercises the Financial Requirement at the time of its election right to extend the Term term of the this Lease, Tenant this Lease shall nonetheless be required to deliver such security deposit in extended for the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, and (ii) within ninety (90) days extended term beginning immediately following the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension optioninitial term.”
Appears in 1 contract
Samples: Lease (Cima Labs Inc)
Tenant’s Option to Extend. Section 2.3 of the Lease is hereby amended by:
(a) deleting Tenant shall have the words option to extend the Initial Term of this Lease for sixty (60) successive additional periods of one (1) year each (individually, an “Extension Term” and numbers together, the “fifteen Extension Terms”), commencing on the first day following the Termination Date of the Initial Term or of the Extension Term then in effect, as the case may be; subject, however, to the Renewal Conditions (15) months” from as hereinafter defined). The Extension Terms shall be upon the two places same terms, covenants, conditions and provisions as are in which they appear effect as of the Termination Date of the Initial Term, except that the annual Base Rate in effect for each of the Extension Terms shall be as provided in the third sentence Agreement of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”;Lease.
(b) deleting Tenant’s exercise of an extension option shall be deemed automatically exercised without notice to Landlord unless Tenant, by notice to Landlord at least ninety (90) days prior to the words and numbers “twelve (12) months” from the fifth sentence last day of the first grammatical paragraph thereofInitial Term or the Extension Term then in effect, and by replacing them with as the words and numbers “ten (10) months”; andcase may be, advises Landlord of Tenant’s intention to terminate the Lease as of the Termination Date of the Initial Term or the then effective Extension Term.
(c) adding As of both the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time date of Tenant’s election notice to exercise either of Landlord that Tenant exercises its options to extend extension option and the date that the Extension Term of the Lease for an applicable Extension Termcommences, Tenant does shall be in compliance with the following conditions (the “Renewal Conditions”): (i)(A) Tenant shall not satisfy the Financial Requirement be in default under any Public Financing (as defined belowhereinafter defined), Landlord shall have the right to require and (B) there is no monetary Event of Default by Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered under any obligation to Landlord prior to and as a condition precedent and/or the Philadelphia Industrial Development Corporation (“PIDC”) pursuant to the effectiveness of such Extension TermAcquisition Agreement or this Lease that is continuing, in the form instance of an irrevocable standby letter (A) and (B), as the case may be, beyond the expiration of credit in form any applicable notice, grace and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Termcure periods, and (ii) within ninety (90) days following the expiration an Event of each fiscal year of Tenant ending subsequent Default with respect to the date on which Tenant first makes such election Continued Occupancy Covenant, as to exercise an extension optionthe Leased Premises only, shall not have occurred and shall not be continuing.”
Appears in 1 contract
Samples: Acquisition and Development Agreement (Urban Outfitters Inc)
Tenant’s Option to Extend. Section 2.3 Provided this Lease is then in full force and effect and that Tenant is not then in Default under this Lease, Tenant shall have the option to extend the Term of this Lease ("Option to Extend") for an additional five (5) year period ("Extension Period"). Tenant may exercise said option only by serving written notice upon Landlord not less than nine (9) months prior to the expiration of the Further Extended Term. All terms and conditions of this Lease shall apply to the leasing of the Premises during the Extension Period, except that the amount of Rent for the Premises at the commencement of the Extension Period shall be revised to be the Market Rent (as hereinafter defined). Within thirty (30) days following receipt of Tenant's notice, Landlord shall provide Tenant with its assessment of what the Market Rent is hereby amended by:
(a) deleting for the words Premises for such renewal period. In determining the Market Rent Landlord shall take into consideration customary rent and numbers “fifteen (15) months” from the two places in which they appear lease concessions provided to other creditworthy tenants leasing similar sized premises in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if Evanston Office Market at the time of Tenant’s election to 's exercise either of its options to extend the Term this option. Within fifteen (15) days after receipt of the Lease for an applicable Extension TermLandlord's determination of Market Rent, Tenant does not satisfy shall either accept or reject the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit Market Rent in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00)writing. If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term rejects Landlord's determination of the Lease as aforesaidMarket Rent, then Landlord and Tenant shall be entitled attempt to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term mutually agree upon Market Rent within thirty (30) days of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time date of its election to extend the Term receipt by Landlord of Tenant's rejection of Landlord's determination of the LeaseMarket Rate. If Landlord and Tenant are unable to agree upon Market Rent during such thirty (30) day period, Tenant this Option to Extend shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, and (ii) within ninety (90) days following the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension optionimmediately terminate.”
Appears in 1 contract
Tenant’s Option to Extend. Section 2.3 (A) Provided that this lease is then in full force and effect and Tenant is not in default hereunder after notice and expiration of any applicable grace period, Tenant shall have the Lease is hereby amended by:
(a) deleting the words and numbers “fifteen (15) months” from the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options option to extend the Term for two (2) additional periods of five (5) years each (each, an "Extension Term" and collectively the "Extension Terms"). Tenant may not exercise its option for the second Extension Term unless it has also exercised its option for the first Extension Term. The first Extension Term shall commence on the day after the initial Expiration Date (i.e., on May 1, 2006) and shall expire on the fifth (5th) anniversary of the Lease for an initial Expiration Date (i.e., on April 30, 2011), and the second Extension Term shall commence on the day after the extended Expiration Date (i.e., on May 1, 2011) and shall expire on the fifth (5th) anniversary of the extended Expiration Date (i.e., on April 30, 2016), unless in each case such Extension Term shall sooner end pursuant to any of the terms, covenants or conditions of this lease or pursuant to any of the terms, covenants or conditions of this lease or pursuant to law. Tenant shall give Landlord written notice of Tenant's exercise of the first option on or before the date that is one (1) year prior to the initial Expiration Date (i.e., on or before April 30, 2005) and of the second option on or before the date that is one (1) year prior to the extended Expiration Date (i.e., on or before April 30, 2010) (the time of exercise being of the essence), and upon Tenant timely giving such notice, the Term shall be extended without execution or delivery of any other or further documents, with the same force and effect as if the applicable Extension Term had originally been included in the Term; the word "Term," whenever used herein, shall include the applicable Extension Term; and the Expiration Date shall thereupon be deemed to be the last day of the applicable Extension Term. All of the terms, covenants and conditions of this lease shall continue in full force and effect during the Extension Term(s), including items of additional rent and escalation, which shall remain payable on the terms (including the base years) herein set forth, except that: (i) the Fixed Rent shall be as determined in accordance with Section (B) of this Article 67, (ii) there shall be no rent concession, work or work allowance to be furnished by Landlord, and (iii) (x) in the case of the first Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the no further right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of except for the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable second Extension Term, and (iiy) within ninety in the case of the second Extension Term, Tenant shall have no further right to extend the Term.
(90B) days following The Fixed Rent payable by Tenant for the expiration premises during the applicable Extension Term shall be the fair market rental value of each fiscal the premises based upon the criteria set forth in subsection (3) of this Section (B) (the "FMRV"), determined as follows:
(1) Beginning on the date that is one (1) year of Tenant ending subsequent prior to the commencement of the applicable Extension Term, Landlord and Tenant shall negotiate in good faith to agree upon the FMRV. If Landlord and Tenant cannot reach agreement by the date on which that is nine (9) months prior to the commencement of the applicable Extension Term, Landlord and Tenant first makes shall each select a reputable, qualified, licensed real estate broker having an office in New York County and familiar with the rentals then being charged in the Building and in comparable buildings in lower Manhattan for the type of space represented by the premises (such election brokers are referred to exercise an extension option.”herein, respectively, as "Landlord's Broker" and "Tenant's Broker"), who shall confer promptly after their selection by Landlord and Tenant and shall negotiate in good faith to agree upon the FMRV. If Landlord's Broker and Tenant's Broker cannot reach agreement by the date that is seven (7) months prior to the commencement of the applicable Extension Term, then, no later than the date that is six (6) months prior to the commencement of the applicable Extension Term, they shall designate a third reputable, qualified, 36
Appears in 1 contract
Tenant’s Option to Extend. Section 2.3 of the Lease is hereby amended by:
(a) deleting the words and numbers “fifteen (15) months” from the two places in which they appear in the third sentence of the first grammatical paragraph thereofProvided that, and by replacing them in both places with the words and numbers “twelve (12) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either such exercise, this Lease is still in full force and effect without default by Tenant beyond applicable grace periods and Tenant occupies at least seventy-five percent (75%) of the Premises Rentable Area for its options own business purposes, Tenant shall have the right and option (the "Extension Option") to extend the Term of the this Lease for an one (1) extended term of five (5) years (the "Extended Term") (or such shorter period as Landlord and Tenant shall mutually agree). The Extended Term shall commence on the day immediately succeeding the expiration date of the Initial Term and shall end on the day immediately preceding the fifth anniversary of the first day of such Extended Term. Tenant shall exercise its Extension Option for the Extended Term by giving written notice to Landlord of its desire to do so not later than twelve (12) months prior to the expiration date of the Initial Term. The giving of such notice by Tenant shall automatically extend the Term of this Lease for the applicable Extension Extended Term, and no instrument of renewal need be executed. In the event that Tenant does not satisfy fails to give such notice to Landlord this Lease shall automatically terminate at the Financial Requirement (as defined below), Landlord end of the Initial Term and Tenant shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election no further option to extend the Term of the Lease as aforesaid, then Tenant this Lease. The Extended Term shall be entitled to a return on all the terms and conditions of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the this Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both except (i) at during any Extended Term, the time extension provisions of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Termthis Section shall not be effective, and (ii) within ninety the Base Rent for the Extended Term shall be the prevailing base rental rate projected to the time of commencement of the Extended Term for comparable space in the Building or comparable space in the market, but in any event not less than the Base Rent in effect immediately prior to the Extended Term. Landlord and Tenant shall attempt to agree upon the applicable Base Rent but, if agreement is not reached by that date which is eleven (9011) days following months prior to the expiration commencement date of the Extended Term, either Landlord or Tenant may elect to follow the Appraisal Process for determination of such Base Rent. The Appraisal Process shall be a determination of the market rate by three (3) appraisers, one selected by the Landlord, one by the Tenant and the third by the two appraisers so selected, each of whom shall have had at least ten (10) years experience in appraising commercial real estate in the Route 495/Route 9 Area. Each appraiser shall independently determine the projected market rate of the Premises as of the commencement date of the Extended Term, taking into account all of the terms and conditions of this Lease. The market rate of the Premises shall be deemed to be the appraisal, if any, which is the average of the other two, or, if there is no such appraisal, the average of the two appraisals arithmetically closest in amount. The cost of the third appraiser shall be borne equally by the Landlord and Tenant, and the cost of each fiscal year of Tenant ending subsequent the other two appraisers shall be borne by the party selecting them. Upon determination of the Base Rent for the Extended Term pursuant to the date on which Tenant first makes such election foregoing, the parties agree to exercise execute an extension optionamendment to the Lease acknowledging the same.”
Appears in 1 contract
Tenant’s Option to Extend. Section 2.3 of the Lease is hereby amended by:
(a) deleting the words and numbers “fifteen (15) months” from the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx Tenant subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, and (ii) within ninety (90) days following the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension option.”
Appears in 1 contract
Samples: Lease (Gsi Group Inc)
Tenant’s Option to Extend. Section 2.3 (A) Tenant shall have the one-time right, at its option, to extend the Term for a single five (5) year period (the “Extension Term”). The Extension Term shall commence on the day after the Expiration Date and shall expire on the fifth anniversary of the Expiration Date unless the Extension Term shall sooner end pursuant to any of the terms, covenants or conditions of this Lease is hereby amended by:
or pursuant to law. Provided this Lease shall then be in full force and effect and Tenant shall not be in default hereunder and the expiration of any applicable notice and grace period and Landlord shall not have previously delivered more than two (a2) deleting written notices of any monetary default hereunder within the words and numbers “fifteen preceding forty-eight (1548) months” from , Tenant may exercise its option to extend the two places Term by giving Landlord written notice of such election no later than one (1) year prior to the Expiration Date, the TIME OF EXERCISE BEING OF THE ESSENCE, and upon the giving of such notice, this Lease and the Term shall be extended without execution or delivery of any other or further documents, with the same force and effect as if the Extension Term had originally been included in the Term and the Expiration Date shall thereupon be deemed to be the last day of the Extension Term. Notwithstanding Tenant’s exercise of its option under this Subsection (A), at Landlord’s option the Extension Term shall not commence if Tenant shall be in monetary default hereunder as of the Expiration Date and Landlord has delivered a written notice of default, in which they appear in event the third sentence Term shall expire on the Expiration Date and the provisions of this Section shall be deemed null and void and of no further force or effect. All of the first grammatical paragraph thereofterms, covenants and conditions of this Lease shall continue in full force and effect during the Extension Term, except that (i) the Base Rent shall be as determined in accordance with Subsection (B) of this Section 4.14, and by replacing them in both places with the words and numbers “twelve (12ii) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options Tenant shall have no further right to extend the Term of this Lease pursuant to this Section 4.14.
(B) The annual Base Rent payable by Tenant for the Lease for an applicable Premises during the Extension Term shall be the fair market rental value of the Premises determined as of the day immediately preceding the Extension Term, . Immediately after the exercise by Tenant does not satisfy the Financial Requirement of its option under Subsection (as defined below)A) above, Landlord and Tenant shall have use their best efforts to agree upon the right to require Tenant to provide Landlord with a security deposit in an amount equal to six fair market rental value of the Premises (6) months’ exclusive of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlordelectricity charges). For the purposes hereofof this Lease, the term “Financial Requirementfair market rental value” of the Premises shall mean that the total cash balance annual rental value for comparable office space renewals for a comparable class of office buildings in Downtown Manhattan, taking all relevant factors into consideration. In the event Landlord and Tenant cannot reach agreement within forty-five (45) days after the date of Tenant’s notice of exercise of its option. Landlord and Tenant shall confer and appoint a reputable, qualified, licensed real estate broker who shall have an office in the county in which the Building is located, who is familiar with the rentals then being maintained by Tenant is equal to charged in the Building and in comparable buildings and who has at least Twenty Million Dollars 10 years’ experience ($20,000,000.00the “Independent Broker”). If Landlord and Tenant is required shall fail to deliver a security deposit as a result of its failure to satisfy agree upon the Financial Requirement at the time of its election to extend the Term designation of the Lease as aforesaidIndependent Broker, then upon ten (10) days’ notice, either party may apply to the Supreme Court of the county in which the Building is located to appoint the Independent Broker. Concurrently with such appointment, Landlord and Tenant shall each submit a letter to the Independent Broker, with a copy to the other, setting forth their respective estimates of the fair market rental value of the Premises, taking into consideration the duration of the Extension Term and all other terms and conditions of this Lease which are applicable to the Extension Term (respectively, “Landlord’s Letter” and “Tenant’s Letter”). The Independent Broker shall determine the fair market rental value of the Premises during the Extension Term and shall choose the fair market rental value set forth in either Landlord’s Letter or Tenant’s Letter to be entitled the Base Rent during the Extension Term. The fees and expenses of the Independent Broker and all costs incurred in connection with the appointment of the Independent Broker shall be shared equally by Landlord and Tenant. In the event the Extension Term shall commence prior to a return determination of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time Base Rent during the remaining Extension Term having been made in accordance with Subsection (B) of this Section 4.14, then the Lease. Conversely, if Base Rent to be paid by Tenant is not required to deliver a security deposit because it satisfied Landlord until such determination has been made shall be the Financial Requirement at the time greater of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenantfair market rental value as set forth in Landlord’s election Letter plus all sums payable pursuant to exercise either of its options to extend any other Additional Rent, or (ii) the Term Base Rent for the twelve (12) month period immediately preceding the commencement of the Lease for an applicable Extension Term, including any other Additional Rent payable pursuant to Article 3 hereof or as otherwise provided herein. After such determination has been made for the Base Rent during the Extension Term, any excess rental for the Extension Term theretofore paid by Tenant to Landlord shall be credited by Landlord against the next ensuing monthly Base Rent payable by Tenant to Landlord and any deficiency in Base Rent due from Tenant to Landlord during the Extension Term shall be paid within ten (ii10) within ninety (90) days following the expiration of each fiscal year of Tenant ending subsequent business days. Notwithstanding anything to the date on which contrary, Tenant’s rights under this Section 4.14 are personal to the Tenant first makes such election to exercise an extension optionnamed herein and may not be exercised by any permitted successor, assign or subtenant of the Premises.”
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Tenant’s Option to Extend. Section 2.3 So long as this Lease is then in full force and effect and Tenant is not in default, beyond the expiration of any applicable grace and/or cure periods, in the performance of its obligations hereunder, Tenant shall have the option to extend this Lease for one period of sixty (60) months (the "New Term"), commencing on the first day of the sixty-first full calendar month following the Commencement Date. If Tenant shall exercise such option in a timely manner, then this Lease is hereby amended byshall automatically be extended for the New Term, on all of the terms and conditions set forth herein, without the execution of any further instrument. If, however, Tenant shall not exercise such option in a timely manner, then Tenant shall have no further right to extend the Term of this Lease, and this Lease shall expire on the Expiration Date specified in Section 1.1. Tenant's option to extend the Term for the New Term shall be exercised (and Annual Rent for tile New Term shall be determined) in the following manner:
(a) deleting the words and numbers “fifteen Not later than with eight (15) months” from the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything 8) months prior to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision"Expiration Date", Tenant shall provide Landlord with audited financial statements for Tenant both notice (ithe "Intention Notice") at the time of Tenant’s election 's potential desire to extend the Term. If Tenant falls to deliver the Intention Notice on or before with eight (S) months prior to the Expiration Date, Tenant shall have no further right to extend the Term.
(b) If Tenant delivers the Intention Notice in a timely manner, then, not later than seven (7) months prior to the Expiration Date, Landlord shall notify Tenant, in writing, of' Landlord's estimate ("Landlord's Estimate") of the fair market rental value for the Premises with respect to the first twelve (12) months of the New Term.
(c) Within 15 days after Tenaxx'x xeceipt of Landlord's Estimate, Tenaxx xxxll inform Landlord if Tenant disputes Landlord's Estimate. Tenant's failure to notify Landlord prior to the expiration of such fifteen (15) day period shall be deemed to constitute a waiver of Tenant's right to dispute Landlord's Estimate, and, if the Term is extended for the New Term. Annual Rent for the first twelve (12) months of the New Term will be deemed to have been established as Landlord's Estimate.
(d) If Tenant notifies Landlord of Tenaxx'x xesire to dispute Landxxxx'x Xstimate, Landlord and Tenant shall each select an independent appraiser, who shall attempt to reach agreement as to the fair market rental value for the Premises for the first twelve (12) months of the New Term. If they are unable to agree, the appraisers selected by Tenaxx xxx Landlord shall mutually agree upon a third appraiser, who shall choose either the value proposed by Tenaxx'x xppraiser or the value proposed by Landxxxx'x xppraiser as being the fair market rental value for the Premises for the first 12 months of the New Term. The Annual Rent for the first 12 months of the New Term shall be deemed to be the fair market rental value as determined by the appraiser(s); provided, however, that the Annual Rent for the first 12 months of the second New Term shall be not less than the annual rent payable with respect to the 12 months immediately preceding the Expiration Date. Each appraiser shall be a reputable independent MAI real estate appraiser, with at least 5 years of experience in the Commonwealth of Massachusetts. The costs and expenses of the appraiser selected by Landlord shall be borne by Landlord; the costs and expenses of the appraiser selected by Tenant shall be borne by Tenant: and tile costs and expenses of the third appraiser (if any) shall be shared equally by Tenaxx xxx Landlord.
(e) Tenant shall have the right to exercise either of its options option to extend the Term by notice to Landlord not later than that date (the "Last Notice Date") which is the later to occur of (i) thirty (30) days after the date on which the Annual Rent payable with respect to the first twelve (12) months of the Lease for an applicable Extension Term, New Term has been established and (ii) within ninety six (906) months prior to the Expiration Date. If Tenant shall fall to exercise its option to extend tile Term prior to the Last Notice Date, Tenant shall have no further right to extend the Term and this Lease shall expire as of the Expiration Date. However, notwithstanding such failure by Tenant, Landlord shall have the option (which option shall be exercised, if at all, by notice to Tenant not later than thirty (30) days following after the expiration of each fiscal year of Tenant ending subsequent Last Notice Date), if the Last Notice Date is a date which is later than six (6) months prior to the Expiration Date, to extend the Term for a period equal to the number of days between the date which is six (6) months prior to the Expiration Date and the Last Notice Date, for Annual Rent which is the Annual Rent in effect immediately prior to the Expiration Date.
(f) If the Annual Rent payable with respect to the first 12 months of the New Term has not been established prior to the Expiration Date, Tenant shall continue to pay Annual Rent on which the basis of the Annual Rent payable with respect to the twelve (12) months immediately preceding the Expiration Date. If the Term is subsequently extended, then, at such time as the new Annual Rent has been established, (i) all future payments of Annual Rent during the first 12 months of the New Term shall be in the amount so established and (ii) if the new Annual Rent is higher than the Annual Rent previously paid by Tenant, Tenant first makes such election to exercise shall make an extension option.”appropriate
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Tenant’s Option to Extend. On the conditions (which conditions Landlord may in its sole discretion waive by notice to Tenant at any time) that (a) both as of the time of the exercise of Tenant’s rights in this Article 11.0 and as of the commencement of the Extension Term there is no Event of Default; (b) that the person originally named as Tenant in Section 2.3 1.1 is occupying the entirety of the Premises then demised by this Lease, Permitted Transfers excepted; and (c) Landlord does not elect to use the Premises for occupancy by Harvard Real Estate – Allston, Inc. or for occupancy or use by an affiliate of Harvard University (collectively, the “Harvard Use”); then Tenant shall have the option to extend this Lease for the Extension Term. Tenant may exercise this option by giving notice (“Extension Notice”) to Landlord not more than eighteen months and not less than one year before the Lease Expiration Date. The termination, expiration, cancellation, assignment (except with respect to a Permitted Transfer), or surrender of this Lease as to the entire Premises shall terminate any rights of Tenant pursuant to this Section. If Landlord elects to use the Premises for the Harvard Use, then Landlord shall so notify Tenant by written notice (“Landlord’s Use Notice”) and Tenant’s option shall be deemed void. If Landlord does not deliver Landlord’s Use Notice on or before the date eleven months before the Lease Expiration Date, Tenant shall by written request require that Landlord confirm its intention to use the Premises (or not to use the Premises) and Landlord shall, within 30 days thereafter, deliver written confirmation of its intention to use (or not use) the Premises for its own use. Such right to reserve the Premises for Harvard Use upon expiration of the Lease is hereby amended by:
(a) deleting the words shall be personal to Harvard Real Estate – Allston, Inc. and numbers “fifteen (15) months” from the two places in which they appear in the third sentence any affiliate and shall not be assignable to any other unaffiliated owner of the first grammatical paragraph thereof, and by replacing them in both places with Building or the words and numbers “twelve (12) months”;
(b) deleting the words and numbers “twelve (12) months” from the fifth sentence of the first grammatical paragraph thereof, and by replacing them with the words and numbers “ten (10) months”; and
(c) adding the following text at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term of the Lease. Conversely, if Tenant is not required to deliver a security deposit because it satisfied the Financial Requirement at the time of its election to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term, and (ii) within ninety (90) days following the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension optionLand.”
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Tenant’s Option to Extend. Section 2.3 41.01 Tenant may extend the Term of this Lease for one (1) period of sixty (60) months each (the "Extension Term") beginning the day immediately succeeding the Expiration Date, upon the same terms and conditions of the Lease is hereby amended byLease, except that:
(a) deleting the words and numbers “fifteen (15) months” from Term is modified to include the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”Extension Term;
(b) deleting the words and numbers “twelve (12) months” from Fixed Rent for the fifth sentence Extension Term shall be at 100% of the first grammatical paragraph thereofthen Fair Market Rent (determined exclusive of any and all allowances, credits and other tenant concessions offered by replacing them with Landlord to tenants leasing new or additional space in the words and numbers “ten (10) months”Building), as defined below; and
(c) adding the following text Option to Extend shall be deleted and shall not be available to Tenant at the end thereof: “Notwithstanding anything to the contrary set forth herein, if at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Term.
41.02 To exercise this Option to Extend, Tenant does not satisfy the Financial Requirement must:
(as defined below), Landlord shall a) never have the right to require Tenant to provide Landlord with a security deposit been in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies the Financial Requirement at any time during the remaining Term default of the Lease. Conversely, if ; and
(b) give Notice to Landlord that Tenant is not required exercising its Option to deliver a security deposit because it satisfied Extend at least 365 days before the Financial Requirement at Expiration Date ("Tenant's Notice "), and
(c) execute an amendment to the time of its election Lease to extend be provided by Landlord incorporating the Term terms of the LeaseExtension into the Lease and return it to Landlord within 10 days of receipt.
41.03 The annual Fixed Rent during the Extension Term shall be at 100% of the then Fair Market Rent. The term “Fair Market Rent" shall mean the annual Fixed Rent per square foot of the Premises as of the date the option period commences, but in no event less than the annual Fixed Rent payable by Tenant shall nonetheless be required immediately prior to deliver such security deposit the Expiration Date. More specifically, Fair Market Rent is defined as the fixed rent then being charged to lessees under any new leases being made in the event that Xxxxxx subsequently fails to satisfy Building or in comparable buildings located in the Financial Requirement at any time during the Term general vicinity of the LeaseBuilding (the “Area"). In order addition, in determining the Fair Market Rent, no consideration shall be given to effectuate the foregoing provisionfollowing facts: (1) that no vacancy or reletting expenses will be incurred by Landlord (including, without limitation, advertising or promotional expenses); (2) that Landlord shall not perform work at its expense for the Tenant or pay Tenant any special work allowance; (3) that Landlord shall provide Landlord with audited financial statements for not grant any rent concession to Tenant; and (4) that Tenant both will not incur the cost and expense of (ia) at the time of Tenant’s election having to exercise either of its options locate other premises in which to extend the Term of the Lease for an applicable Extension Termmove, (b) designing and constructing improvements to same, (c) relocating to said new premises, and (iid) within ninety (90) days following having its operations disrupted during the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension optionrelocation.”
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Samples: Lease (Boomerang Systems, Inc.)
Tenant’s Option to Extend. Section 2.3 41.01 Tenant may extend the Term of this Lease for two (2) periods of sixty (60) months each (the "EXTENSION TERM(S)") beginning the day after the Expiration Date, upon the same terms and conditions of the Lease is hereby amended byLease, except that:
(a) deleting the words and numbers “fifteen (15) months” from Term is modified to include the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”Extension Term;
(b) deleting the words and numbers “twelve (12) months” from Fixed Rent for the fifth sentence Extension Term shall be at 95% of the first grammatical paragraph thereofthen Fair Market Rent (determined exclusive of any and all allowances, credits and other tenant concessions offered by replacing them with Landlord to tenants leasing new or additional space in the words and numbers “ten (10) months”Building), as defined below; and
(c) adding the following text Option to Extend shall be deleted and shall not be available to Tenant at the end thereof: “Notwithstanding anything of the second Extension Term.
41.02 To exercise this Option to the contrary set forth hereinExtend, if at the time of Tenant’s election to exercise either of its options to extend the Term Tenant must:
(a) not then be in default of the Lease following notice and expiration of the applicable cure period;
(b) give Notice to Landlord that Tenant is exercising its Option to Extend at least 270 days before the Expiration Date ("TENANT'S NOTICE").
(c) execute an amendment to the Lease to be provided by Landlord incorporating the terms of the Extension into the Lease and return it to Landlord within 10 days of receipt.
41.03 The annual Fixed Rent during the Extension Term shall be at Fair Market Rent. The term "Fair Market Rent" shall mean the annual Fixed Rent per square foot of the Premises as of the date the option period commences, but in no event less than the annual Fixed Rent payable by Tenant immediately prior to the Expiration Date. More specifically, Fair Market Rent is defined as the fixed rent then being charged to lessees under any new leases being made in the Building or in comparable buildings located in the general vicinity of the Building (the "Area") for an applicable Extension Termspace as delivered to Tenant at the Commencement of this Lease, Tenant does not satisfy for space as improved by Tenant. In addition, in determining the Financial Requirement Fair Market Rent, no consideration shall be given to the following facts: (as defined below1) that no vacancy or reletting expenses will be incurred by Landlord (including, without limitation, advertising or promotional expenses), ; (2) that Landlord shall have not perform work at its expense for the right Tenant or pay Tenant any special work allowance; (3) that Landlord shall not grant any rent concession to require Tenant to provide Landlord with a security deposit in an amount equal to six Tenant; and (64) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered to Landlord prior to and as a condition precedent to the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to Landlord. For the purposes hereof, the term “Financial Requirement” shall mean that the total cash balance then being maintained by Tenant is equal to at least Twenty Million Dollars ($20,000,000.00). If Tenant is required to deliver a security deposit as a result of its failure to satisfy the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaid, then Tenant shall be entitled to a return of such security deposit in the event that Tenant subsequently satisfies will not incur the Financial Requirement at any time during the remaining Term cost and expense of the Lease. Conversely(a) having to locate other premises in which to move, if Tenant is not required (b) designing and constructing improvements to deliver a security deposit because it satisfied the Financial Requirement at the time of its election same, (c) relocating to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Termsaid new premises, and (iid) within ninety (90) days following having its operations disrupted during the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension optionrelocation.”
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Tenant’s Option to Extend. Section 2.3 41.01 Tenant may extend the Term of this Lease for two (2) consecutive periods of sixty (60) months each (the “Extension Term(s)”) beginning the day after the Expiration Date, upon the same terms and conditions of the Lease is hereby amended byLease, except that:
(a) deleting the words and numbers “fifteen (15) months” from Term is modified to include the two places in which they appear in the third sentence of the first grammatical paragraph thereof, and by replacing them in both places with the words and numbers “twelve (12) months”Extension Term;
(b) deleting the words Fixed Rent for the Extension Term shall be at the then Fair Market Rent (determined exclusive of any and numbers “twelve (12) months” from all allowances, credits and other tenant concessions offered by Landlord to tenants leasing new or additional space in the fifth sentence of the first grammatical paragraph thereofBuilding), and by replacing them with the words and numbers “ten (10) months”as defined below; and
(c) adding the following text Option to Extend shall be deleted and shall not be available to Tenant at the end thereof: “Notwithstanding anything of the second Extension Term.
41.02 To exercise this Option to Extend, Tenant must:
(a) not be in default of the contrary set forth herein, if Lease at the time of the option is exercised;
(b) give Notice to Landlord that Tenant is exercising its Option to Extend at least 270 days before the Expiration Date (“Tenant’s election Notice “).
(c) execute an amendment to exercise either of its options the Lease to extend be provided by Landlord incorporating the Term terms of the Extension into the Lease for an applicable Extension Term, Tenant does not satisfy the Financial Requirement (as defined below), Landlord shall have the right to require Tenant to provide Landlord with a security deposit in an amount equal to six (6) months’ of Annual Rent payable during such Extension Term, such deposit to be delivered and return it to Landlord prior to and as a condition precedent to within 10 days of receipt.
41.03 The annual Fixed Rent during the effectiveness of such Extension Term, in the form of an irrevocable standby letter of credit in form and substance reasonably satisfactory to LandlordTerm shall be at Fair Market Rent. For the purposes hereof, the The term “Financial RequirementFair Market Rent” shall mean that the total cash balance annual Fixed Rent per square foot of the Premises as of the date the option period commences, but in no event less than the annual Fixed Rent payable by Tenant immediately prior to the Expiration Date. More specifically, Fair Market Rent is defined as the fixed rent then being maintained by Tenant is equal charged to at least Twenty Million Dollars lessees under any new leases being made in the Building or in comparable buildings located in the general vicinity of the Building ($20,000,000.00the “Area”). If Tenant is required to deliver a security deposit as a result of its failure to satisfy In addition, in determining the Financial Requirement at the time of its election to extend the Term of the Lease as aforesaidFair Market Rent, then Tenant no consideration shall be entitled given to a return of such security deposit in the event following facts: (1) that no vacancy or reletting expenses will be incurred by Landlord (including, without limitation, advertising or promotional expenses); (2) that Landlord shall not perform work at its expense for the Tenant or pay Tenant any special work allowance; (3) that Landlord shall not grant any rent concession to Tenant; and (4) that Tenant subsequently satisfies will not incur the Financial Requirement at any time during the remaining Term cost and expense of the Lease. Conversely(a) having to locate other premises in which to move, if Tenant is not required (b) designing and constructing improvements to deliver a security deposit because it satisfied the Financial Requirement at the time of its election same, (c) relocating to extend the Term of the Lease, Tenant shall nonetheless be required to deliver such security deposit in the event that Xxxxxx subsequently fails to satisfy the Financial Requirement at any time during the Term of the Lease. In order to effectuate the foregoing provision, Tenant shall provide Landlord with audited financial statements for Tenant both (i) at the time of Tenant’s election to exercise either of its options to extend the Term of the Lease for an applicable Extension Termsaid new premises, and (iid) within ninety (90) days following having its operations disrupted during the expiration of each fiscal year of Tenant ending subsequent to the date on which Tenant first makes such election to exercise an extension optionrelocation.”
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