Contraction Notice definition
Examples of Contraction Notice in a sentence
Landlord may issue one, but not more than one, Contraction Notice as to each Leased Property.
In the event that Tenant elects to contract the Premises as provided under this Section 3.05, Tenant shall pay Landlord a Contraction Fee (defined hereinafter) at the same time the Contraction Notice is given to Landlord.
Tenant shall exercise the Contraction Right under this Section 3.05 by providing written notice to Landlord (the "Contraction Notice") no later than October 31, 2027, which Contraction Notice shall further set forth Tenant's determination of the approximate size and location of the Contraction Space by way of a depiction included with the Contraction Notice.
In the event that Tenant elects to contract the Premises as provided under this Section 3.05, Tenant shall pay Landlord fifty percent (50%) of the Contraction Fee (defined hereinafter) at the time the Contraction Notice is given to Landlord and the remaining fifty percent (50%) on or before that date which is thirty (30) days prior to the Contraction Date, time being of the essence in payment of the Contraction Fee.
As used herein, the term “Contraction Fee” shall be the sum of (i) $7.25 per rentable square feet of Eliminated Space (as specified in the Contraction Notice and consistent with Exhibit “B”), plus (ii) the amount of “Unamortized TI,” as defined below, attributable to that portion of the Eliminated Space which is Expansion Space, plus (iii) the amount of “Unrecouped Commission,” as defined below, attributable to that portion of the Eliminated Space.
Following Tenant's delivery of the Contraction Notice (as hereinafter defined), Landlord and Tenant shall work together in good faith to make a determination of the final rentable square footage contained in the Contraction Space and the resulting final determination of the Contraction Percentage.
If Tenant exercises its right under this Section 3.05, the “Contraction Date” shall be the day after the twelfth (12th) calendar month following Landlord's receipt of the Contraction Notice and Tenant shall surrender the Contraction Space to Landlord no later than the Contraction Date.
If Tenant timely exercises the Contraction Option but fails to timely pay the Termination Payment allocable to such floor simultaneously with the delivery of its Contraction Notice, the exercise of the Contraction Option by Tenant shall be null and void and the Lease shall remain in full force and effect for all of the Leased Premises.
Tenant shall have a one-time right to terminate a portion of the Leased Premises consisting of the top floor (sixth floor) of the Leased Premises, or another full floor if mutually agreed upon by Landlord and Tenant (the “Terminated Floor”) effective March 1, 2017 by providing not less than nine (9) months prior written notice to Landlord (“Contraction Notice”), and, simultaneous with the delivery of the Contraction Notice to Landlord, paying a contraction fee of $625,000 (“Contraction Fee”).
In the event Tenant fails to make payment of the amounts set forth in subsection (ii) and/or (iii) within fifteen (15) days of the date of the Contraction Notice, Landlord shall have the right to deduct such amount(s) from the Leasehold Improvement Allowance.