Contraction Option Clause Samples
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Contraction Option. Subject to the terms of this Section 2.11, Original Tenant and any Affiliate Assignee shall have the one-time right (the “Contraction Option”) to terminate Tenant’s lease of the portion of the Premises comprised of the entire sixteenth (16th) floor of the Building (the “Contraction Space”) effective as of the date set forth in Tenant’s Contraction Notice (defined below), provided that such date must be no earlier than the last day of the ninety-sixth (96th) full calendar month of the initial Term (the date so specified by ▇▇▇▇▇▇, the “Contraction Date”), upon prior written notice to Landlord (the “Contraction Notice”) irrevocably exercising the Contraction Option given at least one (1) year prior to the Contraction Date. Within thirty (30) days of the Contraction Date, as consideration for (and, at Landlord’s sole election, as a condition precedent to) such early termination, and as an irrevocable covenant by Tenant (which shall be effective upon Tenant’s delivery of the Contraction Notice and which shall survive the expiration or earlier termination of this Lease), Tenant shall pay to Landlord a termination fee (the “Contraction Fee”) equal to the sum of (A) the unamortized cost (as of the Contraction Date) of the aggregate of (1) the brokerage commissions paid by Landlord in connection with this Lease to Tenant’s Broker and Landlord’s Agent, (2) the portion of the Tenant Improvement Allowance applicable to the Contraction Space (i.e., the total Tenant Improvement Allowance actually funded by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (3) the portion of the Rent Abatement applicable to the Contraction Space (i.e., the total Rent Abatement actually granted by Landlord, divided by the aggregate rentable area of the Premises, and multiplied by the rentable area of the Contraction Space), and (B) an amount equal to $395,895.50 (i.e., three (3) months monthly Fixed Rent for the Contraction Space during Lease Year 7). For purposes of clause (A) above, the amortization shall be computed on a straight line basis over the period commencing on the first day of the Term and ending on the Expiration Date, with interest at the (non-compounded) rate of 6% per annum. Time is of the essence with respect to the delivery of any Contraction Notice and the Contraction Fee. Tenant shall not be entitled to exercise the Contraction Option if, at the time of Landlord’s receipt of the Contra...
Contraction Option. The option to contract granted by Landlord to Tenant under this Lease shall be as set forth in Exhibit C hereto and is specifically incorporated herein by reference.
Contraction Option. 66 31. SIGNAGE.............................................................66
Contraction Option. Provided that on the date Tenant exercises the Second Contraction Option (a) this Lease is in full force and effect, (b) no Event of Default has occurred and is continuing, (c) Tenant shall not have exercised the Second Expansion Option, (d) Tenant shall not have delivered an Acceptance Notice during the 42 month period immediately preceding the Second Contraction Date, and (e) Tenant shall be a BNYM Tenant, Tenant shall have the one-time right (the “Second Contraction Option”) to surrender to Landlord as of the Second Contraction Date, the Second Contraction Space, all in accordance with the provisions of this Article 42. “Second Contraction Space” means the highest or lowest full Floor or partial Floor, as determined by Tenant. “Second Contraction Date” means the day immediately preceding the 15th anniversary of the Commencement Date.
Contraction Option. (a) As used herein, the term “Contraction Space” shall mean, at Tenant’s election, up to twenty percent (20%) of the Premises being leased by Tenant as of the time of Tenant’s exercise of the Contraction Option, provided such Contraction Space shall be (i) in a commercially leasable configuration reasonably acceptable to Landlord, (ii) a minimum of one (1) full floor and (iii) if Tenant shall have exercised the Expansion Option, at Tenant’s election, include either the portion of the Premises that is on the lowest floors in the Unit or the portion of the Premises that is on the highest floors of the Unit (i.e., if the remaining Premises consists of more than one floor, such remaining floors must be contiguous).
Contraction Option. ATTACHED TO AND A PART OF THE LEASE AGREEMENT
Contraction Option. (a) Provided that (i) the Subleased Premises include at least [***] ([***]) full floors of the 75 Binney Building, including Floors [***] and [***], (ii) there then exists no Default or condition which, with the giving of notice or passage of time or both, would constitute a Default, and (iii) this Sublease is then in full force and effect, Subtenant shall have the one-time right, at Subtenant’s election, to reduce the size of the Subleased Premises (the “Contraction Option”) by deleting the [***] of the Subleased Premises (the “Contraction Space”), effective upon the seventh (7th) anniversary of the Rent Commencement Date (the “Contraction Date”), provided further that:
(1) Subtenant shall exercise the Contraction Option by written notice given to Sublandlord no later than December 31, 2021 (the “Contraction Notice”);
(2) this Sublease is in full force and effect as to all of the Subleased Premises both as of the date Subtenant delivers the Contraction Notice (provided that Sublandlord shall have the right to waive this condition) and as of the Contraction Date;
(3) there then exists no uncured Default both as of the date Subtenant delivers the Contraction Notice (provided that Sublandlord shall have the right to waive this condition) and as of the Contraction Date; and
(4) at least sixty (60) days prior to the Contraction Date, Subtenant shall pay to Sublandlord by wire transfer, certified check or bank check, an amount equal to Sublandlord’s Unamortized Costs (as hereinafter defined).
Contraction Option. Section 8 of the Third Amendment, entitled “Contraction Option,” is hereby deleted in its entirety from the Lease.
Contraction Option. Tenant shall have the option (the “Contraction Option”) to contract the Premises by surrendering in its entirety Wing A of the 2nd floor of the Building or the portion of Wing A of the 1st floor of the Building that is then leased to Tenant (the “Contraction Space”), effective as of the last day of the 7th Lease Year (the “Effective Contraction Date”). If Tenant elects to exercise its Contraction Option, Tenant shall do so by giving Landlord written notice (the “Contraction Notice”) no later than the last day of the 6th Lease Year. If Tenant properly and timely gives the Contraction Notice, then as of the Effective Contraction Date, Tenant shall, at its expense, separately demise the Contraction Space from the remainder of the Premises, including separately metering as necessary, and Tenant shall vacate and yield up the Contraction Space in accordance with the terms and requirements of Section 6.1.9 of this Lease, with its failure to do so being treated as a holdover under Section 6.1.9. From and after the Effective Contraction Date, the Contraction Space shall no longer be included in the Premises and shall be deemed deleted from this Lease.
Contraction Option. Notwithstanding anything to the contrary contained in the Lease, as of the Effective Date, Tenant hereby forever waives and relinquishes its rights and options, and shall not be responsible for any obligations, contained in Section 31.25 of the Lease.