Tenant’s Renewal Option. Provided the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with the passage of time and/or the giving of notice would result in a default by Tenant hereunder, Landlord hereby gives and grants to Tenant the right, privilege and option of extending this Lease in accordance with the Options to Renew set forth in Section 22 of the Basic Lease Provisions. Tenant shall exercise such options by giving notice to the Landlord of its intention to so renew not less than nine (9) months prior to the then applicable expiration of the Term. Failure to give any such notice shall be deemed a waiver of Tenant’s right to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and void. All of the terms, covenants and conditions of this Lease shall apply during the extended term(s), except that Basic Rent during the extended term shall be determined as follows: Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising the option to extend the term, Landlord shall deliver to Tenant written notice of the Basic Rent for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area of the Building, which shall be supported by reasonable evidence supplied by Landlord, but in no event less than the Basic Rent for the then expiring year. In the event that the Basic Rent for the Renewal Term exceeds the Basic Rent for the then expiring year, then Tenant shall thereafter have fifteen (15) days in which to revoke its notice of renewal, failing which Tenant shall be deemed to have exercised said option to renew at the Basic Rent set forth in Landlord’s notice. So long as the Basic Rent determined by Landlord is supported by reasonable evidence, Tenant shall not have any other remedy should it disagree with said determination. In the event of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under this Lease shall be deemed to be included in the definition of Term as set forth herein.
Appears in 2 contracts
Samples: Lease (Project Clean, Inc.), Lease (Project Clean, Inc.)
Tenant’s Renewal Option. Provided an Event of Default does not exist on the part of the Tenant, Tenant (but not any subtenant, assignee or transferee of Tenant other than an approved subsidiary, affiliate or successor of Tenant as defined in 4.06 (f) (1), (2), (3)) shall have the option of renewing this Lease for two (2), successive but independent five (5) year periods under the same terms and conditions of the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with the passage exception of time and/or the giving of notice would result in a default by Tenant hereunderBase Rental, Landlord hereby gives and grants which shall be adjusted to Tenant the right, privilege and option of extending this Lease in accordance with the Options to Renew set forth in Section 22 ninety-five percent (95%) of the Basic Lease ProvisionsPrevailing Market Rental Rate, as such is defined below, offered by comparable office buildings (including the Building) in the Park Ten area of Houston, Texas. With respect to Tenant's first renewal option, Tenant shall exercise such options by giving notice to the Landlord of its intention to so renew not less than nine seventy-five percent (975%) of the rentable area leased by Tenant at the time Tenant exercises its option to renew the Lease. With respect to Tenant's second renewal option, Tenant shall lease the entire rentable area then under lease. The location of the Leased Premises renewed by Tenant shall be in a contiguous location within the Building reasonably acceptable to Landlord. Unless otherwise approved by Landlord, Tenant agrees to renew its Lease with respect Tenant's laboratory or special purpose facilities in the Building. In order to exercise its option, Tenant must notify Landlord in writing not earlier than fifteen (15) months nor later than twelve (12) months prior to the then applicable expiration of the Lease Term. Failure to give any such notice shall be deemed a waiver of Tenant’s right to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and void. All of the terms, covenants and conditions of this Lease shall apply during the extended term(s), except that Basic Rent during the extended term shall be determined as follows: Within thirty (30) days after Landlord’s following receipt of Tenant’s written notice exercising the option to extend the term's notice, Landlord shall deliver to provide Tenant written notice with its determination of the Basic Rent for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area Prevailing Market Rental Rate. Within thirty (30) days following receipt of the Building, which shall be supported by reasonable evidence supplied Prevailing Market Rental Rate as determined by Landlord, but in no event less than the Basic Rent for the then expiring year. In the event that the Basic Rent for the Renewal Term exceeds the Basic Rent for the then expiring year, then Tenant shall thereafter have fifteen notify Landlord of its acceptance or rejection of the Prevailing Market Rental Rate. Landlord and Tenant agree to negotiate in good faith concerning the determination of the Prevailing Market Rental Rate, as defined herein, however, if Landlord and Tenant are unable to agree as to be the Prevailing Market Rental Rate within thirty (1530) days in which to revoke its notice following the date Tenant rejects Landlord's determination of renewalthe Prevailing Market Rental Rate, failing which Tenant the resolution shall be deemed submitted to have exercised said option to renew at the Basic Rent set forth arbitration as described in Landlord’s notice. So long as the Basic Rent determined by Landlord is supported by reasonable evidence, Tenant shall not have any other remedy should it disagree with said determination. In the event of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under this Lease shall be deemed to be included in the definition of Term as set forth Paragraph 10 herein.
Appears in 1 contract
Samples: Lease Agreement (Wells Real Estate Investment Trust Inc)
Tenant’s Renewal Option. Provided (i) Tenant is not then in default (a) under any of the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with the passage terms, covenants or conditions of time and/or the giving of notice would result in a default by Tenant hereunder, Landlord hereby gives and grants to Tenant the right, privilege and option of extending this Lease in accordance with on Tenant's part to be observed or performed other than the Options to Renew payment of Fixed Rent and increases thereto due under Article 23 of the Lease, beyond the expiration of the applicable notice and grace period set forth in Section 22 this Lease or (b) in the observance and performance of the Basic covenants to pay the Fixed Rent and increases thereto under Article 23 of this Lease, and (ii) Tenant, in contradistinction to any subtenants or occupants, shall then be in occupancy of the entire Demised Premises (with it understood that any space leased under this Lease Provisions. Tenant shall exercise such options by giving notice which has been removed or eliminated from the Demised Premises pursuant to the Landlord provisions of its intention to so renew not less than nine (9) months prior to the then applicable expiration of the Term. Failure to give any such notice Section 11.03 shall be deemed leased to Tenant under this Lease for the purposes of this Section 39.01), Tenant shall have the single option to renew this Lease and the Demised Term for a waiver single renewal term (referred to as the "Renewal Term") of Tenant’s right five (5) years commencing on the date immediately following the Expiration Date (the "Renewal Term Commencement Date") and ending, unless sooner terminated pursuant to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and void. All of the terms, covenants and conditions of this Lease or pursuant to law, on the last day of the calendar month in which the day immediately preceding the fifth (5th) anniversary of the Renewal Term Commencement Date shall apply during occur. If Tenant exercises such option in accordance with the extended term(s)provisions and limitations of this Article, except that Basic Rent during this Lease and the extended term Demised Term shall be determined as follows: Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising the option to extend the term, Landlord shall deliver to Tenant written notice of the Basic Rent for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area of the Building, which shall be supported by reasonable evidence supplied by Landlord, but in no event less than the Basic Rent for the then expiring year. In the event that the Basic Rent renewed for the Renewal Term exceeds at a Fixed Rent equal to the fair market annual rental value of the Demised Premises as of the commencement date of the Renewal Term as agreed by the parties or determined in accordance with the provisions of Section 39.03, but otherwise upon the same then executory terms, covenants and conditions as the original Demised Term, including the definitions of Owner's Basic Rent for the then expiring year, then Tenant shall thereafter have fifteen (15) days in which to revoke its notice of renewal, failing which Tenant shall be deemed to have exercised said option to renew at the Basic Rent Tax Liability set forth in Landlord’s notice. So long as the Basic Rent determined by Landlord is supported by reasonable evidenceSection 23.01D, Tenant shall not have any other remedy should it disagree with said determination. In the event of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under this Lease Tenant's payments pursuant to Section 23.04 shall be deemed adjusted taking into account the Fixed Rent attributable to be included in the definition of Renewal Term as set forth herein(other than that portion attributable to the Electrical Inclusion Factor).
Appears in 1 contract
Samples: Lease Agreement (Langer Inc)
Tenant’s Renewal Option. Provided A. Tenant, provided it is not in default and has not sublet the Premises or assigned this Lease, shall have the right to extend the Lease is in good standing Term for one additional period of five (5) years commencing on the day following the Termination Date and no default by Tenant exists hereunder and no event has occurred that with ending on the passage of time and/or the giving of notice would result in a default by Tenant hereunder, Landlord hereby gives and grants to Tenant the right, privilege and option of extending this Lease in accordance with the Options to Renew set forth in Section 22 fifth (5th) anniversary of the Basic Lease ProvisionsTermination Date (the "Renewal Term"). Tenant Such Renewal Option shall exercise such options be exercised by giving providing written notice ("Initial Renewal Notice") to Landlord on or after the Landlord of its intention to so renew not less than nine date fifteen (915) months prior to the then applicable expiration of Termination Date and on or before the Term. Failure date twelve (12) months prior to give any the Termination Date.
B. The initial Base Rental rate per rentable square foot for the Premises during the Renewal Term shall equal the prevailing market rate for such notice space as determined in Landlord's reasonable judgment.
C. Tenant shall be deemed a waiver of Tenant’s right to exercise this option and shall conclusively make pay Additional Base Rental for the remaining option(s) to extend, if any, null and void. All of Premises during the terms, covenants and conditions Renewal Term in accordance with the terms of this Lease shall apply during the extended term(s), except that Basic Rent during the extended term shall be determined as follows: Lease.
D. Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising the option to extend the term's Initial Renewal Notice, Landlord shall deliver to advise Tenant written notice of the Basic Rent applicable Base Rental rate for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area of the Building, which shall be supported by reasonable evidence supplied by Landlord, but in no event less than the Basic Rent for the then expiring year. In the event that the Basic Rent Premises for the Renewal Term exceeds the Basic Rent for the then expiring yearTerm. Tenant, then Tenant shall thereafter have within fifteen (15) days in after the date on which to revoke Landlord advises Tenant of the applicable Base Rental rate for the Renewal Term, shall either (i) give Landlord final binding written notice ("Binding Notice") of Tenant's exercise of its option, or (ii) if Tenant disagrees with Landlord's determination, provide Landlord with written notice of renewalrejection (the "Rejection Notice"). If Tenant fails to provide Landlord with either a Binding Notice or Rejection Notice within such fifteen (15) day period, failing which Tenant's Renewal Option shall be null and void and of no further force and effect. If Tenant provides Landlord with a Binding Notice, Landlord and Tenant shall be deemed to have exercised said option to renew at enter into the Basic Rent set forth in Landlord’s notice. So long as Renewal Amendment upon the Basic Rent determined by Landlord is supported by reasonable evidence, Tenant shall not have any other remedy should it disagree with said determination. In the event of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals terms and extensions under this Lease shall be deemed to be included in the definition of Term as conditions set forth herein. If Tenant provides Landlord with a Rejection Notice, Landlord and Tenant shall work together in good faith to agree upon the Prevailing Market Base Rental rate for the Premises during the Renewal Term. Upon agreement Tenant shall provide Landlord with Binding Notice and Landlord and Tenant shall enter into the Renewal Amendment in accordance with the terms and conditions hereof. Notwithstanding the foregoing, if Landlord and Tenant are unable to agree upon the Prevailing Market Base Rental rate for the Premises within thirty (30) days after the date on which Tenant provides Landlord with a Rejection Notice, Tenant's Renewal Option shall be null and void and of no force and effect.
E. If Tenant is entitled to and properly exercises its Renewal Option, Landlord shall prepare an amendment (the "Renewal Amendment") to reflect changes in the Base Rental, Lease Term, Termination Date and other appropriate terms. The Renewal Amendment shall be sent to Tenant within a reasonable time after receipt of the Binding Notice, and executed by Tenant and returned to Landlord within fifteen (15) days after Tenant's receipt thereof from Landlord.
Appears in 1 contract
Samples: Office Lease (Merrill Corp)
Tenant’s Renewal Option. A. Provided (i) Tenant is not then in default (x) under any of the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with the passage non-monetary terms, covenants or conditions of time and/or the giving of notice would result in a default by Tenant hereunder, Landlord hereby gives and grants to Tenant the right, privilege and option of extending this Lease in accordance with on Tenant’s part to be observed or performed beyond the Options to Renew applicable notice and grace periods set forth in Section 22 this Lease or (y) under the monetary terms, covenants or conditions of this Lease on Tenant’s part to be observed or performed; and (ii) Tenant and Tenant’s affiliates, in contradistinction to any subtenants or occupants, shall then be in occupancy of at least seventy-five (75%) of the Basic Lease Provisions. Demised Premises, Tenant shall exercise such options by giving notice have the option to renew this Lease and the Landlord Demised Term for a first renewal term (referred to as the “Initial Renewal Term”) of its intention five (5) years commencing on the date immediately following the Expiration Date and ending, unless sooner terminated pursuant to so renew not less than nine (9) months prior to the then applicable expiration of the Term. Failure to give any such notice shall be deemed a waiver of Tenant’s right to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and void. All of the terms, covenants and conditions of this Lease or pursuant to law, on the last day of the calendar month in which the day immediately preceding the fifth (5th) anniversary of the first day of the First Renewal Term shall apply during occur (the extended term(s“First Renewal Expiration Date”). If Tenant exercises such option in accordance with the provisions and limitations of this Article, except that Basic Rent during this Lease and the extended term Lease Term shall be determined as follows: Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising renewed for the option Initial Renewal Term at a Minimum Rent equal to extend the term, Landlord shall deliver to Tenant written notice fair market annual rental value of the Basic Rent for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area Demised Premises as of the Building, which shall be supported commencement date of the Initial Renewal Term as agreed by reasonable evidence supplied by Landlordthe parties or determined in accordance with the provisions of Section 39.03, but in no event less than otherwise upon the Basic Rent for the same then expiring year. In the event that the Basic Rent for the Renewal Term exceeds the Basic Rent for the then expiring yearexecutory terms, then Tenant shall thereafter have fifteen (15) days in which to revoke its notice of renewal, failing which Tenant shall be deemed to have exercised said option to renew at the Basic Rent set forth in Landlord’s notice. So long covenants and conditions as the Basic original Demised Term, including without limitation the annual increases in Minimum Rent determined by Landlord is supported by reasonable evidence, Tenant shall not have any other remedy should it disagree with said determination. In the event contemplated under Subsection B of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under this Lease shall be deemed to be included in the definition of Term as set forth hereinSection 1.8.
Appears in 1 contract
Samples: Lease Agreement (Coty Inc /)
Tenant’s Renewal Option. Effective as of the Extension Commencement Date, Paragraph 35 of the Original Lease shall be deleted in its entirety and replaced with the following:
(a) Provided that no default under the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with (beyond any applicable notice, cure, and or grace period), and Tenant is occupying the passage Leased Premises at the time of time and/or the giving of notice would result in a default by such election, Tenant hereunder, Landlord hereby gives and grants to Tenant the right, privilege and option of extending may renew this Lease in accordance with the Options to Renew set forth in Section 22 for one (1) additional period of five (5) years (“Renewal Term”), by delivering written notice of the Basic Lease Provisions. Tenant shall exercise such options by giving notice thereof to Landlord (the Landlord of its intention to so renew not “Renewal Notice”) no less than nine (9) months prior to 365 days before the then applicable expiration of the TermLease Term (as same is extended herein). Failure to give any such notice The Base Rent payable for each month during the Renewal Term shall be deemed a waiver at ninety five percent (95%) of the then prevailing rental rate (the “Prevailing Rental Rate”), at the commencement of the Renewal Term, for renewals of space in the Building of equivalent quality, size, utility and location, with the length of the Renewal Term, any agreed upon tenant improvements (or allowances) to the Premises, and the credit standing of Tenant’s right , to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and voidbe taken into account. All of the terms, covenants and conditions of this Lease shall apply during the extended term(s), except that Basic Rent during the extended term shall be determined as follows: Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising the option to extend the termrenew, Landlord shall deliver to Tenant Tenant: (a) written notice of the Basic Prevailing Rental Rate and shall advise Tenant of the required adjustment to Base Rent, if any, and the other terms and conditions offered; and (b) an amendment to this Lease which shall memorialize the renewal of the Lease Term, adjustment to Base Rent (if any), and any other terms agreed to by Landlord and Tenant. If Landlord fails to timely deliver written notice of the Prevailing Rental Rate, Tenant shall have the right to retract its exercise of the renewal option granted herein. Tenant shall, within thirty (30) days after receipt of Landlord’s notice and the Lease amendment (the “Renewal Acceptance Period”): (i) notify Landlord in writing, by executing the Lease amendment and delivering same to Landlord, whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate, (ii) notify Landlord in writing of its retraction of the renewal option granted herein, in which event this Lease shall expire on the last day of the Lease Term, or (iii) invoke the Broker Determination procedure for determining the first year Prevailing Rental Rate as set forth in Paragraph 3(d) below. If Tenant timely notifies Landlord (by providing the signed Lease amendment to Landlord within the time period set forth above), that Tenant accepts Landlord’s determination of said extended termthe Prevailing Rental Rate, which Basic then the Lease Term shall be renewed as set forth herein and in the amendment on the same terms provided in this Lease, except as follows: (I) Base Rent shall be at then market rates for similar premises adjusted to the Prevailing Rental Rate; (II) Tenant shall have no further renewal option unless expressly set forth herein or granted by Landlord in writing; and (III) Landlord shall lease to Tenant the area Leased Premises in their then-current condition, and Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like).
(b) Tenant’s rights under this Paragraph 3 shall terminate if (1) this Lease or Tenant’s right to possession of the BuildingLeased Premises is terminated, which shall be supported by reasonable evidence supplied (2) Tenant assigns any of its interest in this Lease or sublets any portion of the Leased Premises except in connection with a Transfer to a Tenant Affiliate, or as otherwise consented to by Landlord, (3) Tenant fails to timely exercise its option under this Paragraph, time being of the essence with respect to Tenant’s exercise thereof; (4) Landlord determines, in its sole but reasonable discretion, that Tenant’s financial condition or creditworthiness has materially deteriorated since the date of this Lease.
(c) If: (I) Tenant timely rejects Landlord’s determination of the Prevailing Rental Rate, (II) fails to timely notify Landlord in writing that Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate, or (III) fails to timely notify Landlord in writing that Tenant is invoking the Broker Determination procedure for determining the Prevailing Rental Rate as set forth in Paragraph 3(d) below, or fails to comply with the Broker Determination for determining the Prevailing Rental Rates, time being of the essence with respect thereto, then Tenant’s rights under this Paragraph shall terminate and Tenant shall have no event less than right to renew this Lease.
(d) The procedure for determining the Basic Rent for Prevailing Rental Rate set forth in this Paragraph 3(d) shall be defined as the then expiring year“Broker Determination” procedure. In the event that Tenant timely and properly invokes the Basic Rent for the Renewal Term exceeds the Basic Rent for the then expiring yearBroker Determination procedure, then Landlord and Tenant shall thereafter have each, within fifteen (15) days thereafter, appoint an independent real-estate broker with at least ten years' commercial real estate leasing experience in which the immediate vicinity of the Leased Premises for properties of a similar nature to revoke its notice the Building. If either party fails to timely appoint a broker who satisfies all of renewalthe foregoing qualifications, failing which then the determination of the broker who has been appointed shall determine the Prevailing Rental Rate; and if both parties fail to timely appoint a broker who satisfies all of the foregoing qualifications, then Landlord’s initial determination of Prevailing Rental Rate shall control. The two brokers shall then, within ten (10) days after the appointment of the latter, attempt to agree upon the Prevailing Rental Rate, and if the two brokers agree upon the Prevailing Rental Rate within such ten (10)-day period, they shall both notify Landlord and Tenant of their determination, and such determination shall be binding upon Tenant and Landlord. Upon final determination of the Prevailing Rental Rate, Landlord and Tenant shall be deemed promptly execute an amendment to have exercised said option to renew at the Basic Rent Lease memorializing the terms and conditions (including the final determination of the Prevailing Rental Rate and the other provisions set forth in Landlord’s noticethis Paragraph) whereby Landlord will lease the Leased Premises to Tenant during such Renewal Term. So long The parties shall pay for the expenses of their own brokers and shall share equally the cost of the third broker.
(e) Landlord and Tenant hereby acknowledge and agree that: (I) as of the Basic Rent determined by Landlord Effective Date, any option previously granted to Tenant to cancel or terminate the Lease prior to the expiration of the Lease Term (except as set forth in Paragraphs 11 and 28 in the Original Lease) is supported by reasonable evidenceterminated, null and void, of no further force or effect, and Tenant shall no longer have any cancellation rights; and (II) except as set forth in this Amendment, Tenant shall not have any other remedy should it disagree with said determination. In further option to renew or extend the event of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under this Lease shall be deemed to be included in the definition of Term as set forth hereinTerm.
Appears in 1 contract
Tenant’s Renewal Option. Provided (i) provided that Tenant is not then in default (x) under any of the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with the passage terms, covenants or conditions of time and/or the giving of notice would result in a default by Tenant hereunder, Landlord hereby gives and grants to Tenant the right, privilege and option of extending this Lease in accordance with on the Options part of Tenant to Renew be observed or performed other than the payment of Fixed Rent and increases thereto due under Article 23 of the Lease, beyond the applicable notice and grace period set forth in Section 22 the Lease or (y) of the Basic covenants to pay the Fixed Rent and increases thereto under Article 23; and (ii) Tenant and Tenant’s subsidiaries and affiliates (each as defined in Section 11.05), in contradistinction to any other subtenants or occupants, shall then be in occupancy of seventy-five percent (75%) of the Demised Premises (with it understood that any space leased under this Lease Provisions. Tenant shall exercise such options by giving notice which has been removed or eliminated from the Demised Premises pursuant to the Landlord provisions of its intention to so renew not less than nine (9) months prior to the then applicable expiration of the Term. Failure to give any such notice Section 11.03 shall be deemed leased to Tenant under this Lease for the purposes of this Section 39.01), Tenant shall have the single option to renew this Lease and the Demised Term for a waiver single renewal term (referred to as the “Renewal Term”) of Tenant’s right five (5) years commencing on the date immediately following the Expiration Date (the “Renewal Term Commencement Date”) and ending, unless sooner terminated pursuant to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and void. All of the terms, covenants and conditions of this Lease or pursuant to law, on the last day of the calendar month in which the day immediately preceding the fifth (5th) anniversary of the Renewal Term Commencement Date shall apply during occur. If Tenant exercises such option in accordance with the extended term(s)provisions and limitations of this Article, except that Basic Rent during this Lease and the extended term Demised Term shall be determined as follows: Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising the option to extend the term, Landlord shall deliver to Tenant written notice of the Basic Rent for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area of the Building, which shall be supported by reasonable evidence supplied by Landlord, but in no event less than the Basic Rent for the then expiring year. In the event that the Basic Rent renewed for the Renewal Term exceeds at a Fixed Rent equal to the fair market annual rental value of the Demised Premises as of the commencement date of the Renewal Term as agreed by the parties or determined in accordance with the provisions of Section 39.03, but otherwise upon the same then executory terms, covenants and conditions as the original Demised Term, including the definitions of Owner’s Basic Rent for the then expiring year, then Tenant shall thereafter have fifteen (15) days in which to revoke its notice of renewal, failing which Tenant shall be deemed to have exercised said option to renew at the Basic Rent Tax Liability set forth in Landlord’s notice. So long as Section 23.01D and the Basic Rent determined by Landlord is supported by reasonable evidence, Tenant shall not have any other remedy should it disagree with said determination. In the event of such renewal, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under this Lease shall be deemed to be included in the definition of Term as Base Escalation Year set forth herein.in Section 23.01G.
Appears in 1 contract
Samples: Lease Agreement (Bankrate, Inc.)
Tenant’s Renewal Option. Provided the Lease is in good standing and no default by Tenant exists hereunder and no event has occurred that with the passage of time and/or the giving of notice would result in a default by Tenant hereunder, (a) Landlord hereby gives and grants to Tenant the conditional right, privilege and option exercisable at Tenant's option, to renew the term of extending this Lease for one (1) term (Renewal Term) of three (3) consecutive years. If exercised, and if the conditions applicable thereto have been satisfied, the Renewal Term shall commence on the day immediately following the Lease Expiration date as provided in this Lease. The right of renewal herein granted to Tenant with respect to the Renewal Term shall be subject to, and shall be exercised in accordance with with, the Options to Renew set forth in Section 22 of the Basic Lease Provisions. following terms and conditions:
(i) Tenant shall exercise such options its right of renewal with respect to the Renewal Term by giving Landlord written notice to the Landlord of its intention to so renew (Tenant's Renewal Option Notice) thereof not less later than nine four (94) months nor more than seven (7) months prior to the then applicable expiration Expiration Date of the then-current Lease Term. Failure to give any such notice shall be deemed a waiver of Tenant’s right to exercise this option and shall conclusively make the remaining option(s) to extend, if any, null and void. All of the terms, covenants and conditions of this Lease shall apply during the extended term(s), except that Basic Rent during the extended term shall be determined as follows: Within thirty (30) days after Landlord’s receipt of Tenant’s written notice exercising the option to extend the term, Landlord shall deliver to Tenant written notice of the Basic Rent for the first year of said extended term, which Basic Rent shall be at then market rates for similar premises in the area of the Building, which shall be supported by reasonable evidence supplied by Landlord, but in no event less than the Basic Rent for the then expiring year. In the event that the Basic Rent for the Renewal Term exceeds the Basic Rent for the then expiring year, then Tenant shall thereafter have fifteen (15) days of the later of: i) Landlord's receipt of Tenant's Renewal Option Notice; ii) six months prior to the Expiration Date of the then current Lease Term, Landlord shall give Tenant written notice (Landlord's Renewal Notice) specifying the Basic Annual Rent, which shall be at 100% of the then current market rent as determined by Landlord in which to revoke its notice of renewalLandlord's sole and absolute discretion and shall be not less than the then escalated rent, failing which that Tenant shall be deemed obligated to pay during the Renewal Term. Within fifteen days of Tenant's receipt of Landlord's Renewal Notice, Tenant shall give Landlord written notice (Tenant's Renewal Option Acceptance Notice) of Tenant's acceptance of the Basic Annual Rent specified in Landlord's Renewal Notice.
(ii) In the event the Tenant's Renewal Option Notice or Tenant's Renewal Option Acceptance Notice is not given timely or is not given, Tenant's right of renewal with respect to the Renewal Term shall lapse and be of no further force or effect.
(iii) The renewal option may be exercised only with respect to the entire Premises, not with respect to only a part of the Premises.
(iv) In the event there has been an Event of Default under this Lease prior to or on the date Tenant's Renewal Option Notice or Tenant's Renewal Option Acceptance Notice or Tenant's Renewal Option Acceptance Notice is sent or any time thereafter up to and including the date such Renewal Term is to commence, then, at Landlord's option, such Renewal Term shall not commence and the Lease Term shall expire on the date the Lease Term would have exercised said option to renew expired without such renewal.
(v) If at the Basic Rent time Tenant provides Tenant's Renewal Option Notice or Tenant's Renewal Option Acceptance Notice, or at any time thereafter until the Renewal Term is to commence, Tenant has subleased more than thirty percent (30%) of the rentable area of the Premises, then, at Landlord's option, Tenant's rights pursuant to this Section shall lapse and be of no further force or effect.
(vi) Any termination of this Lease shall terminate all rights of extension hereunder.
(b) During the Renewal Term, all the terms, conditions, covenants and agreements set forth in Landlord’s notice. So long as this Lease shall continue to apply and be binding upon Landlord and Tenant, except that: (i) the Basic Annual Rent determined for the Premises, including any and all expansion space leased by Landlord is supported by reasonable evidenceTenant pursuant to this Lease, shall be the rent specified in Landlord's Renewal Notice, (ii) in no event shall Tenant have the right to renew the Lease Term beyond the expiration of the Renewal Term provided for in this Section, (iii) Tenant accepts the Premises on an "as is" basis as of the date of commencement of such renewal. Notwithstanding anything to the contrary in the foregoing sentence, to the extent that Tenant received any tenant concessions such as rent abatement or allowances, then such concessions for the Premises shall not have any other remedy should it disagree with said determinationapply to the Renewal Term.
(c) After receiving Tenant's Renewal Option Acceptance Notice, Landlord shall prepare and submit to Tenant an amendment to this Lease amending the Term and the Basic Annual Rent. In the event Tenant fails to execute such amendment within seven (7) days of Tenant's receipt of such renewalamendment, Basic Rent shall thereafter increase annually by three percent (3%) per annum. All renewals and extensions under then Tenant's right to renew this Lease as provided in this Section shall be deemed to be included in null and void and of no further force or effect and the definition Lease shall terminate on the Expiration Date of Term as set forth hereinthis Lease.
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