Common use of Exercise of Extension Option Clause in Contracts

Exercise of Extension Option. Tenant shall have two (2) successive options (each, an “Extension Option”) to extend the Term of this Lease for a period of five (5) years each (each, an “Extension Period”), on the same terms and conditions in effect under this Lease immediately prior to the Extension Period, except that Base Rent shall be determined as set forth below and Tenant shall have no further right to extend the Term of this Lease after the end of the second (2nd) Extension Period; provided, however, it shall be a condition of Tenant’s exercise of the Extension Option that Tenant also exercise the corresponding “Extension Option” as defined in the Companion Lease. If Tenant exercises an Extension Option, such extension shall apply to the entire Premises. Tenant may exercise an Extension Option only by giving Landlord irrevocable and unconditional written notice thereof (the “Extension Notice”) on or before the date which is twelve (12) months prior to the commencement date of each applicable Extension Period and such Extension Period shall commence on the day immediately succeeding the expiration date of the preceding Term or the preceding Extension Period, as the case may be, and shall end at midnight Eastern Time on the last day of the applicable Extension Period. Such exercise shall, at Landlord’s election, be null and void if any Event of Default shall have occurred and is continuing at the date of such notice. Upon delivery of the Extension Notice, Tenant shall be irrevocably bound to lease the Premises for the Extension Period. If Tenant shall fail to timely exercise the Extension Option in accordance with the provisions of this Section 1.4, then the Extension Option shall terminate, and shall be null and void and of no further force and effect. If this Lease or Tenant’s right to possession of the Premises shall terminate in any manner whatsoever before Tenant shall exercise the Extension Option, then immediately upon such termination the Extension Option shall simultaneously terminate and become null and void. Time is of the essence with regard to this Section 1.4.

Exercise of Extension Option. i. If Tenant wishes to exercise the Extension Option, Tenant shall have two deliver written notice (2) successive options (each, an “Extension OptionInterest Notice”) to extend Landlord no less than six (6) months before the Term expiration of this the initial Lease Term. The Interest Notice shall state whether Tenant elects to exercise the Extension Option for a period thirty-six (36) month term, or a sixty (60) month term, and whichever Tenant elects in the Interest Notice shall be the “Option Term.” Within sixty (60) days after Landlord’s receipt of five Tenant’s Interest Notice, Landlord shall deliver notice (5“Option Rent Notice”) years each to Tenant stating the Base Rent for the Option Term (each, an the “Extension PeriodOption Rent”), on the same terms and conditions in effect under this Lease immediately prior to the Extension Period, except that Base Rent shall be determined as set forth below and Tenant shall have no further right to extend the Term based upon Landlord’s determination of this Lease after the end fair market rental value of the second (2nd) Extension Period; provided, however, it shall be a condition of Tenant’s exercise Premises as of the Extension commencement date of the Option that Tenant also exercise the corresponding “Extension Option” as defined in the Companion LeaseTerm. ii. If Tenant exercises an wishes to exercise the Extension Option, such extension shall apply to the entire Premises. Tenant may exercise an Extension Option only by giving Landlord irrevocable and unconditional written notice thereof (the “Extension Notice”) must, on or before the earlier of (1) the date which is twelve occurring three (123) months prior to the commencement date of each applicable Extension Period and such Extension Period shall commence on the day immediately succeeding the expiration date of the preceding Term Option Term, or (2) the preceding Extension Period, as the case may be, and shall end at midnight Eastern Time on the last day date occurring thirty (30) days after Tenant’s receipt of the applicable Option Rent Notice, exercise the Extension PeriodOption by delivering written notice (“Exercise Notice”) to Landlord. Such exercise shallIf Tenant wishes to contest the Option Rent stated in the Option Rent Notice, at LandlordTenant must provide, with the Exercise Notice, written notice to Landlord that Tenant objects to the stated Option Rent and include Tenant’s election, be null and void if any Event of Default shall have occurred and is continuing at the date of such notice. Upon delivery determination of the Extension fair market rental value of the Premises. If Tenant provides such written objection and includes Tenant’s determination of fair market rental value, the Option Rent shall be determined in accordance with the procedure set forth below for determining fair market rental value. Otherwise, the Option Rent shall be as set forth in the Option Rent Notice. If Tenant fails to deliver a timely Interest Notice or Exercise Notice, Tenant shall be irrevocably bound considered to lease the Premises for have elected not to exercise the Extension PeriodOption. iii. If Tenant timely exercises its Extension Option, Landlord and Tenant shall, within thirty (30) days after the Option Rent is determined, execute an amendment to the Lease extending the Term on the terms and conditions set forth in this Paragraph. If Landlord and Tenant are unable to agree on the Option Rent for the Option Term, the Option Rent shall fail be the fair market rental value of the Premises (at least commensurate with rents typical of other similar space in other comparable projects), including amenities offered, but in no event shall the monthly Option Rent be less than the Base Rent for the immediately preceding month. Determination of such fair market rental shall include consideration of any commercially-reasonable, industry-standard commissions payable, incentives, free rent, tenant improvement allowances, or any other incentives offered by a landlord to a new tenant, each of whom is willing, but neither of whom is compelled, to enter into a lease transaction. If each party makes a timely exercise determination of the Extension Option fair market rental value, those determinations shall be submitted to an appraiser as provided herein. Such appraisal shall commence as soon as practicable following the Exercise Notice. If there is an appraisal, the determination of the appraiser(s) shall be limited to the sole issue of whether Landlord’s or Tenant’s submitted fair market rental value is the closest to the actual fair market rental value as determined by the appraisers in accordance with the provisions limitations set forth in this Paragraph. Such Option Rent shall be payable in advance on the first day of each month. If the parties agree upon a single appraiser, such appraiser’s decision shall be final, conclusive and binding upon both parties, subject to the minimum limitations stated above. If the parties fail to agree upon a single appraiser within ten (10) days of the Exercise Notice, there shall be an arbitration by three (3) appraisers, in which case either party shall name one of the appraisers by written notice to the other party, whereupon the other party shall, within ten (10) days after receipt of such notice, name a second appraiser, and in case of failure to do so, the party who has already named an appraiser may have the second appraiser selected or appointed by a judge of the trial court of the county in which the Premises is located; and the two appraisers so appointed, in either manner, shall select and appoint a third appraiser, and if the two appraisers so appointed shall fail to appoint the third appraiser within ten (10) days after the naming of the second appraiser, either party may have the third appraiser selected or appointed by such judge; and the three appraisers so appointed shall thereupon proceed to make the determination required by this Section 1.4Paragraph, then and the Extension Option decision and award of any two of them shall terminatebe final, conclusive and binding upon both parties, subject to the minimum limitations stated in this Paragraph, unless such decision and award shall be vacated, modified or corrected, all as provided by in the arbitration statute (if any) of the state in which the Premises is located. The appraisers shall be recognized real estate appraisers who are members of the American Institute of Real Estate Appraisers (MAI) or Society of Real Estate Appraisers or any similar appraisal organization, shall have a minimum of 5 years experience in the Salt Lake City market, and shall have all of the powers and duties prescribed by the laws of the state in which the Premises is located, and judgment may be null entered upon any such decision and void and award as therein provided, iv. In ascertaining the fair market rental value of no further force and effect. If this Lease or Tenant’s right the Premises, the appraisers shall assume for purposes of their appraisal that the Premises are available for immediate utilization to possession the greater of the use then being made of the Premises by Tenant or the then-highest and best use therefor. Subject to the foregoing provisions, the process or method of appraisal shall terminate be that receiving general acceptance among competent, experienced and recognized appraisers in any manner whatsoever before the field of real estate valuation in the state in which the Premises is located. If, and whenever the fixing of such fair market rental value is under arbitration, Tenant, pending the determination thereof, shall continue to pay the same Rent that it had been paying during the last preceding rental period and shall promptly pay the deficiency, if any, upon the conclusion of the arbitration proceedings. If Tenant does not pay the deficiency within 10 days following the determination of fair market rental through arbitration, Tenant shall exercise owe Landlord the Extension Option, then immediately upon deficiency plus interest at the rate of twelve percent (12%) per annum on the amount of such termination deficiency computed from the Extension Option shall simultaneously terminate and become null and void. Time is date or dates when the amount of such deficiency would have been payable but for the pendency of the essence with regard to this Section 1.4arbitration. The cost of such arbitration shall be borne by the losing party, except attorneys’ fees and witness fees that shall be borne by the party engaging such attorney or witness.

Exercise of Extension Option. Tenant shall have two (2) successive options (each, an “Extension Option”) to extend the Term must notify Landlord in writing of this Lease for a period of five (5) years each (each, an “Extension Period”), on the same terms and conditions in effect under this Lease immediately prior to the Extension Period, except that Base Rent shall be determined as set forth below and Tenant shall have no further right to extend the Term of this Lease after the end of the second (2nd) Extension Period; provided, however, it shall be a condition of Tenant’s its exercise of the any Extension Option that Tenant also exercise the corresponding “Extension Option” as defined in the Companion Lease. If Tenant exercises an Extension Option, such extension shall apply to the entire Premises. Tenant may exercise an Extension Option only by giving Landlord irrevocable and unconditional written notice thereof (the “Extension Notice”) ), and such Extension Notice must be given by Tenant to Landlord on or before the date which that is twelve six (126) months prior to the commencement date of each applicable Extension Period and such Extension Period shall commence on the day immediately succeeding the expiration date of the preceding Initial Term or the preceding Extension Periodthen current Option Term, as the case may be. Notwithstanding the foregoing, and Tenant shall end at midnight Eastern Time on not have the last day of the applicable right to exercise an Extension Period. Such exercise shall, at Landlord’s election, be null and void Option if any an Event of Default shall have occurred and is continuing at the date of such noticethen exists against Tenant. Upon delivery If Tenant elects to exercise an Extension Option with respect to only a portion of the Extension NoticePremises initially demised hereunder, Tenant shall be irrevocably bound to lease specify in its Election Notice the portion of the Premises as to which Tenant’s election applies; and in such case, upon the commencement of the Option Term in question, the term “Premises” as used herein shall mean that portion of the Premises specified in Tenant’s Extension Notice. In the event Tenant elects to exercise an Extension Option with respect to only a portion of the Premises initially demised hereunder, then the portion Tenant desires to occupy for the Extension PeriodOption Term, if less than an entire floor, shall be as to each partial floor subject to the reasonable consent of Landlord. If In such event, Landlord’s consent may be withheld only if the portion of the Premises sought to be extended will unnecessarily and unreasonably interfere with Landlord’s ability to relet the portion of the Premises that is not extended and does not constitute an area that is required by Tenant by virtue of the location of permanent improvements to the Building. Landlord shall fail be responsible for all costs incurred to timely demise portions of the Premises retained by Tenant from the remainder of the Building. In the event Tenant elects to exercise the an Extension Option in accordance with respect to only a portion of the Premises initially demised hereunder, the parties shall enter into an amendment of this Lease that modifies the provisions of this Section 1.4, then the Extension Option shall terminate, and shall be null and void and of no further force and effect. If this Lease or Tenant’s right to possession premised upon single use of the Premises shall terminate in any manner whatsoever before Tenant shall exercise the Extension Option, then immediately upon such termination the Extension Option shall simultaneously terminate and become null and void. Time is Building to reflect a multi-tenant use of the essence with regard to this Section 1.4Building.