Expansion Options. Subject to Section 35D below, Tenant shall have and is hereby granted the options described in Section 35B below to add to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below), and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Landlord shall have no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease. (1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I. (2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II. B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below). C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant. D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Building. E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:
Appears in 1 contract
Expansion Options. Subject to Section 35D below, Tenant shall have and is hereby granted the options described in Section 35B below to add A. Notwithstanding anything to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon the same terms contrary contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below)herein, and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," there exists no Event of Default and Landlord shall have no obligation to contribute to the cost Tenant is in occupancy of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 option, but not the obligation, by providing Landlord with one hundred eighty (180) days prior written notice, of including in the Premises the office space identified in Exhibit C as the First Expansion Space, consisting of 5,000 - 6,000 rentable square feet on the 9th floor (based upon a mutually acceptable space plan to be measured by Landlord), as of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above September 1, 2000 (the "9th Floor First Expansion Space ICommencement Date"). If Tenant exercises its right to add the First Expansion Space to the Premises, then effective as of the First Expansion Space Commencement Date, the following shall apply:
(i) Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the First Expansion Space on the terms and conditions hereinafter set forth on the First Expansion Term Commencement Date and ending on the expiration of the Term.
(ii) The Tenant shall pay Monthly Base Rent for the First Expansion Space on the same basis and at the Market same rental rate as the base rental rate for the original office space demised hereunder, as the same is increased from time to time.
(iii) Taxes and Operating Expenses payable under Section 4 shall be increased proportionately to reflect the additional rentable area in the First Expansion Rate applicable Space.
(iv) Landlord shall provide Tenant with the First Expansion Space "as is" and Landlord shall furnish Tenant with a Tenant's Improvement Allowance for the First Expansion Space in the amount of $12.50 per rentable square foot, payable upon completion of the Tenant's modifications to the 9th Floor Premises and delivery of satisfactory waivers of lien, paid invoices, receipts and reasonable documentation requested by Landlord.
(v) Except as otherwise specifically provided in this Section, from and after the exercise of the First Expansion Option by Tenant, all references in the Lease to the Premises shall be deemed to apply to the First Expansion Space I.
(2) On a date specified by Landlord during as well as the period beginning Premises initially leased hereunder and all of the terms, provisions, and conditions of the Lease shall apply to the First Expansion Space with the first day same force and effect as if it were leased to Tenant initially together with the Premises originally demised hereunder.
B. Notwithstanding anything to the contrary contained herein, provided that there exists no Event of Default and Tenant is in occupancy of the fifth Lease Year and continuing until the last day of the fifth Lease YearPremises, Tenant shall have the right to expand into 11,354 option, but not the obligation, by providing Landlord with one hundred eighty (180) days prior written notice, of including in the Premises the office space identified in Exhibit D as the Second Expansion Space, consisting of 5,000 - 6,000 rentable square feet (based upon a mutually acceptable space plan to be measured by Landlord), as of September 1, 2003 (the "9th Floor Second Expansion Space IICommencement Date"). If Tenant exercises its right to add the Second Expansion Space to the Premises, then effective as of the Second Expansion space Commencement Date, the following shall apply:
(i) Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Second Expansion Space on the 9th floor terms and conditions hereinafter set forth on the Second Expansion Term Commencement Date and ending on the expiration of the Building depicted Term.
(ii) The Tenant shall pay Monthly Base Rent for the Second Expansion Space on Appendix A attached hereto the same basis and at the Market same rental rate as the base rental rate for the original office space demised hereunder, as the same may increase from time to time.
(iii) Taxes and Operating Expenses payable under Section 4 shall be increased proportionately to reflect the additional rentable area in the Second Expansion Rate applicable to Space.
(iv) Landlord shall provide Tenant with the 9th Floor Second Expansion Space II.
B. "as is" and Landlord shall give written notice to furnish Tenant with a Tenant's Improvement Allowance for the Second Expansion Space in the amount of $12.50 per rentable square foot, payable upon completion of the date on which such Expansion Space shall become available to the Tenant to be added Tenant's modifications to the Premises and delivery of satisfactory waivers of lien, paid invoices, receipts and other reasonable documentation requested by Landlord.
(v) Except as otherwise specifically provided in this Section, from and after the "Availability Date") not less than fourteen (14) months in advance exercise of the Availability Date. Within fifteen (15) business days after receipt of such notice from LandlordSecond Expansion Option by Tenant, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise all references in the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior Lease to the Availability Date for the particular Expansion Space, then the terms of Section 33 above Premises shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment apply to the Lease to reflect changes in Second Expansion Space as well as the size of the Premises, Base Rent, Tenant's Proportionate Share Premises initially leased hereunder and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Building.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject terms, provisions, and conditions of the Lease shall apply to the Second Expansion Space for with the balance of same force and effect as if it were leased to Tenant initially together with the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:Premises originally demised hereunder.
Appears in 1 contract
Expansion Options. Subject To accommodate Tenant’s expansion needs, Landlord hereby gives Tenant an option to Section 35D belowlease (the “Expansion Option”) up to one hundred percent (100%), but not less than fifty percent (50%), of a building of approximately one-hundred thousand ( 100,000) square feet, or of whatever size the City of Raleigh will allow (the “Expansion Building”) to be constructed by Landlord on the land shown on the attached Exhibit B-1. The initial term of the Expansion Option shall commence upon the Commencement Date hereof and shall automatically expire on January 1, 2003. The Expansion Option shall be at no cost to Tenant shall have and is hereby granted the options described in Section 35B below to add to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon initial term. If Tenant elects to lease the Expansion Building, such lease shall contain substantially the same terms contained and conditions as in this Lease except Section 32 with the specific business terms to be agreed upon between the parties within thirty (30) days of receipt of detailed plans and Appendix D of this Lease and specifications for the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below), and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Tenant Improvements. Landlord shall have no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available will provide to Tenant a “bid” to be added construct the new building and all improvements. If Tenant elects to the Premises. In the event that Tenant exercises either lease one hundred percent (100%) of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from LandlordBuilding, Tenant may obtain bids for the construction from two other qualified, licensed, general contractors. If Tenant wishes to use one of the other contractors, Tenant must submit the bid and all supporting and related documentation to Landlord. Upon receipt of the competing bid with supporting documentation, Landlord will have thirty (30) days to notify Tenant as to whether Landlord will match the bid or allow Tenant to use the other contractor. If Landlord elects to allow Tenant to use the other contractor, Tenant must do so and, prior to commencing construction, must deliver a non-binding written notice to Landlord a letter of its desire credit in the amount of the bid and in the form required by the Lease as shown on Exhibit H. If Tenant elects to exercise lease less than one hundred percent (100%) of the subject option to expandExpansion Building, Tenant must use Landlord for all construction. Thereafter, both parties shall calculate their All negotiations concerning the Expansion Option must be conducted in good faith estimate of with the Market Expansion Rate for the subject Expansion Space parties using their best efforts to reach an agreement. All negotiations and notify the other of such determination not less than thirteen (13) calendar months a fully executed lease must be completed prior to the Availability Date for expiration of the particular Expansion SpaceOption term (initial or extended, then as applicable), failure to do so being an absolute bar of Tenant’s rights under the terms Expansion Option. Time is of Section 33 above shall apply as the essence with regard to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Building.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:Option
Appears in 1 contract
Sources: Lease Agreement (Liposcience Inc)
Expansion Options. Subject Tenant has the following options to Section 35D below, Tenant shall have and is hereby granted add space in the options described in Section 35B below Building to the Premises:
(a) An option (the “First Expansion Option”) to add to the Premises one full Floor in the 9th Floor lower elevator bank (Floors 7 through 24). The First Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space Option shall be exercised, if at all, by written notice from Tenant to Landlord given at any time between June 1, 2004 and May 31, 2005.
(b) An option (the Market “Second Expansion Rate (defined below), and provided that any space added Option”) to add to the Premises one full Floor in the lower elevator bank (Floors 7 through 24). The Second Expansion Option shall be exercised, if at all, by written notice from Tenant to Landlord given at any time between June 1, 2007 and May 31, 2008. Notwithstanding the foregoing, in the event Tenant has exercised its Right of First Offer pursuant to this Section 35 shall be delivered "23.09 below on all First Offer Space as is," it becomes available, and a full Floor or Floors are not available to satisfy Tenant’s exercise of one or both of its Expansion Options, then upon the exercise of any such Expansion Option, Landlord shall have no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date make available such space within the lower elevator bank (if any) that is actually made available to Tenant Landlord for leasing to be added to Tenant. For clarification purposes, Tenant’s Right of Fist Offer and Expansion Options include the Premisessame Floors in the Building. In the event that Tenant exercises either its Right of First Offer on all Floors in the lower elevator bank, then Landlord will be unable to deliver to Tenant its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this LeaseOptions, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor no obligation of the Building depicted on Appendix A attached hereto less any portion of such space provide Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months Options in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet elevator bank in the Building.
E. For purposes of this Section 35. Notwithstanding anything contained herein, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area provided at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made least two full Floors are not occupied by Tenant in the lower elevator bank, Landlord is obligated to deliver to Tenant its Expansion Options as so escalated shall be equal required by this Article, which obligation includes the obligation to recapture the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without necessary space from other tenants then occupying such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:space.
Appears in 1 contract
Sources: Lease of Office Space (KBS Real Estate Investment Trust III, Inc.)
Expansion Options. Subject to Section 35D below, Tenant shall have and is hereby granted the options described in Section 35B below to add to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below), and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Landlord shall have Provided no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred under the Sublease, Sublessee shall have the right and is continuingoption to expand the space which comprises the Subleased Premises as follows:
(a) Sublessee shall have the option to expand the Subleased Premises to include Option Space B, consisting of 4,933 rentable square feet, as shown on Exhibit 2 hereto, such option exercisable by written notice to Sublessor delivered no later than May 31, 2011.
(iib) that Tenant During the period from May 1, 2010 through April 30, 2015 (the “First Offer Period”), if any space in the Building should become available for rent, Sublessor shall first offer such space to Sublessee by giving Sublessee written notice identifying such available space (the “Offer Space”). Sublessee shall then have the right, within thirty (30) days after receiving Sublessor’s notice, to exercise its right expand the Subleased Premises to include such space by providing written notice to Sublessor. If Sublessee does not have assigned this Leasetimely exercise said right, except then Sublessor shall be free to sublease the Offer Space to a Related Assigneethird party or parties on such terms as Sublessor deems appropriate.
(c) If, and (iii) Tenant continues prior to occupy a minimum March 30, 2018, Option Space C, consisting of 80,000 14,113 rentable square feet feet, as shown on Exhibit 2 hereto (the “Alpha Flying Space”) should become available for rent, Sublessor shall first offer such space to Sublessee by giving Sublessee written notice identifying such available space Sublessee shall then have the right, within thirty (30) days after receiving Sublessor’s notice, to exercise its right expand the Subleased Premises to include the Alpha Flying Space by providing written notice to Sublessor. If Sublessee does not timely exercise said right, then Sublessor shall be free to sublease the Alpha Flying Space to a third party or parties on such terms as Sublessor deems appropriate. Notwithstanding the foregoing, in the Buildingevent Sublessor shall fail to enter into a sublease with a prospective sublessee within one hundred eighty (180) days following Sublessee’s election not to sublease such space pursuant to this Section 21.3(c), Sublessor will resubmit for Sublessee’s review the good faith terms on which Sublessor is offering such space.
E. For purposes of this Section 35, "Market Expansion Rate" (d) In the event Sublessee shall mean exercise its option rights under subparagraphs (a) - (c) above: (i) the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which rental rate shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent same per square foot charge paid by the Sublessee under Article 4.1 of this Sublease plus any other additional charges payable by the Sublessee under this
(e) All construction work by Sublessee required or permitted by Section 21.3 of this Lease. The Market Expansion Rate maySublease shall be done in a good and workmanlike manner, if requested by Landlordand in compliance with all applicable laws and all lawful ordinances, be restated to include an annual escalation regulations and orders of governmental authority and insurers of the initial net or base rent equal to Premise and Article 10 of this Sublease. Sublessee shall pay, when due, any and all amounts owed for material and/or labor used in connection with such construction, and shall defend, indemnify and hold Sublessor harmless from any and all claims arising out of such construction. Sublessee shall promptly cause any mechanics liens placed on the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments property located at ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇ to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:released and discharged.”
Appears in 1 contract
Expansion Options. Subject to Section 35D belowWithout limitation of the terms of Paragraph 34(L)(i) of the Original Lease, Tenant shall have and it is hereby granted the options described in Section 35B below to add to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below), and provided agreed that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Landlord shall have no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that if Tenant exercises either of its expansion options pursuant to Section 35B below, the an Expansion Space thereby added to the Premises shall become a part Option under Paragraphs 34(B) through (K) of the Premises for all purposes of this Lease, and if Tenant had, prior to such exercise, either (i) failed to timely exercise any reference in this previous Expansion Option under Article 34 of the Lease to the term "Premises" shall be deemed to refer to and include (any such floor which constituted the Expansion SpacePremises for the Expansion Option which Tenant so failed to exercise being referred to as a “Failed Expansion Premises Floor”), except as expressly provided otherwise in this Lease.
or (1ii) On exercised any of its contraction options relative to a date specified by Landlord during full floor at the period beginning with the first day Building under Paragraphs 34(U) through (X) of the third Original Lease Year and continuing until (any such floor which constituted the last day of the third Lease Yearcontraction space for such contraction option being referred to as a “Contraction Premises Floor”), Tenant then Landlord shall have the right to expand into 11,353 rentable square feet on substitute any such Failed Expansion Premises Floor or Contraction Premises Floor (as the 9th case may be) as the applicable Expansion Premises for the Expansion Option being so exercised by Tenant, in which case such floor so designated by Landlord shall be the applicable Expansion Premises for purposes of the Building depicted on Appendix A attached hereto less Lease. The foregoing shall not be deemed to limit any portion of such space Tenant leases the other terms and conditions set forth in Article 34 of the Lease (as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable amended hereby) relative to the 9th Floor Expansion Space I.
(2) On a date specified by Premises thereunder. If Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the elects to exercise its right to expand into 11,354 rentable square feet (substitute any floors as the "9th Floor applicable Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Premises under this Paragraph 2, then Landlord shall give written notice to notify Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises substitute floor within ten (the "Availability Date"10) not less than fourteen (14) months in advance Business Days after Landlord’s receipt of the Availability Date. Within fifteen (15) business days after receipt of such notice applicable Expansion Notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Building.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:
Appears in 1 contract
Sources: Office Lease (KBS Real Estate Investment Trust II, Inc.)
Expansion Options. Subject to Section 35D below, (a) Tenant shall have and is hereby granted the options described in Section 35B below option to add to lease the Premises following:
1) approximately 21,661 square feet of net rentable area on the 9th Floor third floor of the Building as shown on Exhibit A (the "Expansion Space I (hereinafter definedA") and on March --------- 23, 1999. Tenant shall have the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term option to lease all, but not less than all, of this Lease (including any Renewal Term) upon the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space A on the terms and conditions hereinafter set forth;
2) approximately 4,958 square feet of net rentable area on the second floor as shown on Exhibit A (the "Expansion Space B") on July 1, 1999. Tenant --------- shall be at have the Market option to lease all, but not less than all, of such Expansion Rate Space B on the terms and conditions hereinafter set forth; and
3) approximately 9,936 square feet of net rentable area on the seventh floor of the Building as shown on Exhibit A (defined belowthe "Expansion Space C"), on --------- January 1, 2004 or earlier, as provided hereinbelow. Tenant shall have the option to lease all, but not less than all, of such Expansion Space C on the terms and provided conditions hereinafter set forth. If such Expansion Space C becomes available for lease prior to January 1, 2004, then Tenant's right to lease all, but not less than all of such Expansion Space C shall take effect upon written notice from Landlord that any space added such Expansion Space C has become available to the Premises pursuant to this Section 35 shall be delivered "as is," and lease. Landlord shall have no liability to Tenant in the event any or all of Expansion Space A, Expansion Space B, or Expansion Space C are not available for lease on the dates set forth hereinabove. If any existing tenant of Expansion Space A or Expansion Space B or Expansion Space C or occupant of the foregoing expansion spaces holds over in violation of its lease such that the respective expansion space is not available for lease on the dates set forth hereinabove, Landlord shall promptly initiate and pursue appropriate legal action to evict such tenant or occupant from the affected expansion space. The Corporate Advisory Board Company Lease June 23, 1998 Final
(i) As to Expansion Space A, Tenant has exercised its option for Expansion Space A by giving written notice thereof to Landlord not later than June 22, 1998, time being of the essence. Tenant shall lease the Expansion Space A on the same terms and conditions as the Demised Premises, including, without limitation, the obligation to contribute pay Additional Rent for Expansion Space A, except that there shall be no rent abatement and the Basic Annual Rent shall be Twenty-nine Dollars ($29.00) per rentable square foot for the first and second Lease Years of the term of this Lease, subject to annual increases during the cost term of any construction or remodeling by Tenantthe Lease, nor shall Landlord be obligated to perform any construction in connection accordance with such spacethe schedule set forth hereinbelow. Tenant's obligations to pay Operating Cost Share Rent, Real Estate Tax Share Rent and Base Rent for any particular after Expansion Space shall commence on the date such space is actually made available to Tenant to be A has been added to the Demised Premises will increase by an additional 5.9775% and Tenant's Operating Expense Share after Expansion Space A has been added to the Demised Premises shall be increased by an additional 7.4052%. Tenant and Landlord shall enter into an amendment to this Lease at the time Tenant exercises its option for Expansion Space A to reflect the terms and conditions for the lease of such Expansion Space A, as set forth herein. Tenant's Basic Rent for Expansion Space A shall be as follows: LEASE YEAR BASIC ANNUAL BASIC BASIC RENT PER ANNUAL MONTHLY SQUARE FOOT RENT RENT 1 and 2 $29.00 $628,169 $52,347.42 3 $29.58 $640,732.38 $53,394.37 4 $30.17 $653,512.37 $54,459.36 5 $30.77 $666,508.97 $55,542.41 6 $31.39 $679,938.79 $56,661.57 7 $33.39 $723,260.79 $60,271.73 8 $34.06 $737,773.68 $61,481.14 9 $34.74 $752,503.14 $62,708.60 10 $35.43 $767,449.23 $63,954.10 11 $36.14 $782,828.54 $65,235.71
(ii) As to Expansion Space B, Tenant shall exercise its option for Expansion Space B by giving written notice thereof to Landlord not later than October 1, 1998. Tenant shall lease the Expansion Space B on the same terms and conditions as the Demised Premises, including, without limitation, the obligation to pay Additional Rent for Expansion Space B, except that there shall be The Corporate Advisory Board Company Lease June 23, 1998 Final no rent abatement and Basic Annual Rent shall be an amount equal to the product of the number of square feet of rentable area attributable to Expansion Space B, multiplied by the then applicable per-square-foot Basic Annual Rent attributable to Expansion Space A (whether or not Tenant elects to lease Expansion Space A) in effect for each Lease Year of the remainder of the term of this Lease, beginning with the Lease Year in which Expansion Space B is added to the Demised Premises, and further, to pay that Annual Basic Rent in equal monthly installments to Landlord with the Basic Monthly Rent paid for the Demised Premises. Tenant's Real Estate Tax Share after Expansion Space B has been added to the Demised Premises will increase by an additional 1.3682% and Tenant's Operating Expense Share after Expansion Space B has been added to the Demised Premises shall be increased by an additional 1.6950%. Tenant shall deliver to Landlord an additional security deposit in the amount of one full month's Basic Monthly Rent for Expansion Space B at the time Tenant exercises its option for Expansion Space B notwithstanding any other provision of this Lease relating to any reduction in the letter of credit serving as a Security Deposit hereunder. Tenant and Landlord shall enter into an amendment to this Lease at the time Tenant exercises its option for Expansion Space B to reflect the terms and conditions for the lease of such Expansion Space B, as set forth herein. In the event that Tenant exercises either of does not exercise its expansion options pursuant to Section 35B below, the option for Expansion Space thereby added B within the applicable time period required by this Paragraph, Landlord shall be free to the Premises shall become a lease all or any part of the Premises for all purposes of this LeaseExpansion Space B to any other person or entity on such terms and conditions that Landlord determines in Landlord's sole discretion, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below)this Paragraph 44 with respect to the Expansion Space B shall terminate.
C. Promptly after (iii) As to Expansion Space C, Tenant shall exercise its option for Expansion Space C by giving written notice thereof to Landlord not later than January 1, 2003, provided however, that in the event Expansion Space C becomes available for lease earlier than January 1, 2004, Tenant shall give Landlord written notice of Tenant's exercise of such expansion option and election to lease Expansion Space C within the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Spacethirty (30) day period hereinafter described. Tenant shall execute lease Expansion Space C on the same terms and return such conditions as the Demised Premises, including, without limitation, the obligation to pay Additional Rent for Expansion Space C, except that there shall be no rent abatement and the Basic Annual Rent shall be an amount equal to the product of the number of square feet of rentable area attributable to Expansion Space C, multiplied by the then applicable per-square- foot Basic Annual Rent attributable to the Initial Demised Premises in effect for each Lease Year of the remainder of the term of this Lease beginning in the Lease Year in which Expansion Space C is added to the Demised Premises, and further, to pay that Annual Basic Rent in equal monthly installments to Landlord with the Basic Monthly Rent paid for the Demised Premises. Tenant's Real Estate Tax Share after Expansion Space C has been added to the Demised Premises will increase by an additional 2.7419% and Tenant's Operating Expense Share after Expansion Space C has been added to the Demised Premises shall be increased by an additional 3.3968 %. Tenant shall deliver to Landlord an additional security deposit in the amount of one full month's Basic Monthly Rent for Expansion Space C at the time Tenant exercises its option for Expansion Space C notwithstanding any other provision of this Lease relating to any reduction in the letter of credit serving as a Security Deposit hereunder. Tenant and Landlord shall enter into an amendment to this Lease at the time Tenant exercises its option for Expansion Space C to reflect the terms and conditions for the lease of such Expansion Space C, as set forth herein. In the event that Tenant does not exercise its option for Expansion Space C within fifteen the applicable time period required by this Paragraph, Landlord shall be free to lease all or any part of Expansion Space C to any other person or entity on such terms and conditions that Landlord determines in Landlord's sole discretion, and Tenant's rights under this Paragraph 44 with respect to the Expansion Space C shall terminate. In the event Expansion Space C becomes available to lease prior to the anticipated availability date of January 1, 2004, then Landlord shall give Tenant written notice of the earlier availability of Expansion Space C (15the "Notice of Early Availability") and Tenant shall thereupon have thirty (30) days after its submission to Tenant.
D. Tenantfrom the date of Landlord's right Notice of Early Availability to exercise its options option to expand pursuant lease such Expansion Space C. The terms and conditions of the lease of such The Corporate Advisory Board Company Lease June 23, 1998 Final Expansion Space C under the Notice of Early Availability shall be the same as those set forth above for Expansion Space C. In the event that Tenant does not exercise its option for Expansion Space C under the Notice of Early Availability within the applicable time period required by this Paragraph for the exercise of such option after the Notice of Early Availability, Landlord shall be free to lease all or any part of Expansion Space C to any other person or entity on such terms and conditions that Landlord determines in Landlord's sole discretion, and Tenant's rights under this Section 35, is subject Paragraph 44 with respect to the following conditions: Expansion Space C shall terminate.
(b) Effective as of the date of delivery of possession of the Expansion Space A, Expansion Space B and/or Expansion Space C, (i) that on the date that Tenant delivers its binding written notice of its election each such space shall be added to exercise the subject option to expand, Tenant is not in default under any and constitute a part of the terms of Demised Premises for all purposes under this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuingLease, (ii) that Tenant the rentable area of the Demised Premises shall not have assigned this Lease, except to a Related Assigneebe increased by the rentable area of the respective expansion space, and (iii) Tenant continues to occupy a minimum the Basic Annual Rent shall be appropriately increased for the remainder of 80,000 rentable square feet in the Building.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of current Lease Year and for each Lease Year thereafter by an amount equal to the net rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject respective Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) multiplied by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Basic Annual Rent per square foot then payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparablesexpansion space, as set forth above in the tables shown in Subparagraph 44(a)(i) with respect to reflect Expansion Space A and Expansion Space B and as referenced in Subparagraph 44(a)(iii) for Expansion Space C, for each such Lease Year. Expansion Space A, Expansion Space B and Expansion Space C shall be delivered in their respective then "as is" condition. Tenant's obligation to pay rent with respect to each of Expansion Space A, Expansion Space B and Expansion Space C shall commence upon delivery of the following factors:respective expansion space by Landlord to Tenant. Tenant shall not make any alterations, installations, additions or improvements in or to any of Expansion Space A, Expansion Space B or Expansion Space C unless Tenant complies with Paragraph 11 ALTERATIONS of this Lease . -----------
(c) Tenant may not exercise its option with respect to Expansion Space A, Expansion Space B or Expansion Space C if, at the time specified for exercising such respective option, this Lease shall not be in full force and effect or in the event that at the time Tenant exercises any one of the respective expansion options, Tenant shall have sublet in excess of 10,000 square feet of rentable area of the Demised Premises or Tenant shall be in default in the performance of any obligations hereunder. If Tenant shall fail to exercise any of such options during the time or in the manner provided in this Paragraph 44 for the exercise thereof, or if at the time specified for the exercise of such options, Tenant shall not be entitled to exercise such options, then, and in either such event, such options shall be absolutely void and of no force and effect. The Corporate Advisory Board Company Lease June 23, 1998 Final
Appears in 1 contract
Expansion Options. Subject to Section 35D below, Tenant TENANT shall have options to lease all or part of the space in the Building not then included in the Leased Premises, as provided in this Section 36. LANDLORD agrees to offer to TENANT, some time between the beginning of the fourth Lease Year and the end of the sixth Lease Year, all of the space in the Building not included in the Leased Premises (provided LANDLORD need not offer common area space unless it is hereby granted otherwise offering, at that time, all of the options described remainder of the space in Section 35B below the Building). LANDLORD need not offer all of such space to add TENANT at one time. LANDLORD agrees not to enter into any leases with third parties for such space for a term (including extension options) in excess of five years, except as provided below. Upon request by TENANT, LANDLORD will notify TENANT, with respect to any leases for such space, of the expiration dates of such leases so that TENANT will be able to anticipate when such space will be available. LANDLORD will offer all or a portion of such space to TENANT by written notice to TENANT, identifying the anticipated date of delivery. TENANT will have until the later of 30 days after receipt of LANDLORD's notice or the date 60 days prior to the Premises beginning of the 9th Floor Expansion Space I (hereinafter defined) and fourth Lease Year to accept such space as part of the 9th Floor Expansion Space II (hereinafter defined) for Leased Premises, which acceptance shall be in writing. If TENANT accepts LANDLORD's offer of any of the remaining Term space in the Building, TENANT shall lease such space for a term equal to the greater of five (5) years or the remaining term of this Lease (including any Renewal Term) at such time, upon the same terms and conditions as contained in this Lease except Section 32 and Appendix D Lease, with Base Rent for the period before what prior to the expansion was the expiration of the term of this Lease to be at the same per square foot rate, as it changes from time to time, as applies to the balance of the Leased Premises, and with Base Rent for the period after what prior to the expansion was the expiration of the term of this Lease to be at the same per square foot rate as applies to the balance of the Leased Premises immediately prior to such expiration date, and the Tenant Improvement Allowance with respect to such space shall be $17.00 per rentable square foot for office space and $2.00 per rentable square foot for storage space (with the allocation of office and storage space designated by TENANT), multiplied by a fraction, the numerator of which is the number of months of the term for such expansion space and the denominator of which is 108. Notwithstanding anything in this Section 36 to the contrary, (a) the Base Rent for expansion option space shall never be less than the Base Rent calculated at the per square foot rate prescribed in Section 2 for the ninth Lease Year; and (b) if TENANT takes delivery of an expansion option space at a time when Market Rate Rent is already in effect and when the Lease term has less than 2 years to run, the parties will redetermine Market Rate Rent at the time that the Lease term would otherwise have expired. If the term for the Leased Premises prior to the exercise of an expansion option would expire prior to the expiration of the term with respect to the space added by exercise of an expansion option, the term for the Leased Premises prior to the exercise of an expansion option shall be automatically extended to coincide with the term with respect to the expansion option space, and the Base Rate for such Expansion Space Rent per rentable square foot shall be at computed on the Market Expansion Rate (defined below), same basis as for the expansion option space. The rent and provided that any space added the term with respect to the Premises pursuant expansion option space will commence upon LANDLORD's delivery of exclusive possession to TENANT after LANDLORD's completion of the tenant improvements required by TENANT and delivery to TENANT of LANDLORD's architect's certificate of completion and a certificate of occupancy by the City of Minnetonka. If TENANT accepts LANDLORD's offer with respect of any of the expansion option space and LANDLORD is unable to deliver exclusive possession of such space to TENANT in the condition required, together with the two required certificates, on or before the date 180 days after LANDLORD's anticipated date of delivery set forth in LANDLORD's offer, TENANT may terminate this Section 35 shall be delivered "as is," and Landlord Lease by giving 150 days' prior written notice to LANDLORD within 90 days after the end of such 180-day period, in which event neither party shall have no any further obligations under this Lease, except for LANDLORD's obligation to contribute to return the cost of any construction security deposit as required herein and other obligations which expressly survive the termination or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes expiration of this Lease, and any reference in this Lease . If TENANT does not exercise its option as to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such the expansion option space Tenant leases as Additional within the period provided above or if TENANT terminates its expansion option with respect to the Expansion Space pursuant to Section 30A above (the "9th Floor Expansion Space I")1 above, at the Market Expansion Rate applicable LANDLORD may offer such space to the 9th Floor Expansion Space I.
(2) On third parties for any term desired by LANDLORD. If LANDLORD does not lease a date specified by Landlord during the period beginning with the first day portion of the fifth Lease Year and continuing until expansion option space (including the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date"Space) not less than fourteen (14) accepted by TENANT within 6 months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice TENANT's period to exercise its option, LANDLORD shall again offer such space to TENANT on the same terms and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Leaseconditions set forth above, except TENANT must exercise its option within 10 days after LANDLORD's offer. LANDLORD shall also offer any portion of the expansion option space (including the Expansion Space) not accepted by TENANT which LANDLORD leases to a Related Assigneethird parties when such space again becomes available on the same terms and conditions set forth above, and (iii) Tenant continues except TENANT must exercise its option within 10 days after LANDLORD's offer. Notwithstanding anything to occupy a minimum of 80,000 rentable square feet the contrary contained in the Building.
E. For purposes of this Section 3536, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of Base Rent for all of the subject Expansion Space for Leased Premises will be computed based on the balance Market Rate Rent, as defined in Section 38 below, if this Lease remains in existence (other than by reason of an extension pursuant to Section 37 below) after the end of the initial Termfourteenth Lease Year. If TENANT exercises any expansion option, converted to a net or base rent LANDLORD shall build out such space from its then "as provided hereinis" condition, at LANDLORD's expense, using the Tenant Improvement Allowance set forth above. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction Any costs in excess of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated Improvement Allowance shall be equal for TENANT's account. Notwithstanding the foregoing, LANDLORD agrees to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenantperform any necessary Landlord's right Work, as defined in Exhibit E, with respect to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjustedoption space at LANDLORD's sole expense, upward or downward, from without diminishing the Effective Market Rent Tenant Improvement Allowance established above for the respective Comparables, to reflect the following factors:Tenant Improvements.
Appears in 1 contract
Sources: Office/Service Building Lease (Summit Medical Systems Inc /Mn/)
Expansion Options. Subject To accommodate Tenant's expansion needs, Landlord ----------------- hereby gives Tenant an option to Section 35D belowlease (the "Expansion Option") up to one hundred percent (100%), but not less than fifty percent (50%), of a building of approximately one-hundred thousand ( 100,000) square feet, or of whatever size the City of Raleigh will allow (the "Expansion Building") to be constructed by Landlord on the land shown on the attached Exhibit B-1. The initial term of the Expansion Option shall commence upon the Commencement Date hereof and shall automatically expire on January 1, 2003. The Expansion Option shall be at no cost to Tenant shall have and is hereby granted the options described in Section 35B below to add to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon initial term. If Tenant elects to lease the Expansion Building, such lease shall contain substantially the same terms contained and conditions as in this Lease except Section 32 with the specific business terms to be agreed upon between the parties within thirty (30) days of receipt of detailed plans and Appendix D of this Lease and specifications for the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below), and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Tenant Improvements. Landlord shall have no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available will provide to Tenant a "bid" to be added construct the new building and all improvements. If Tenant elects to the Premises. In the event that Tenant exercises either lease one hundred percent (100%) of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Year, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from LandlordBuilding, Tenant may obtain bids for the construction from two other qualified, licensed, general contractors. If Tenant wishes to use one of the other contractors, Tenant must submit the bid and all supporting and related documentation to Landlord. Upon receipt of the competing bid with supporting documentation, Landlord will have thirty (30) days to notify Tenant as to whether Landlord will match the bid or allow Tenant to use the other contractor. If Landlord elects to allow Tenant to use the other contractor, Tenant must do so and, prior to commencing construction, must deliver a non-binding written notice to Landlord a letter of its desire credit in the amount of the bid and in the form required by the Lease as shown on Exhibit H. If Tenant elects to exercise lease less than one hundred percent (100%) of the subject option to expandExpansion Building, Tenant must use Landlord for all construction. Thereafter, both parties shall calculate their All negotiations concerning the Expansion Option must be conducted in good faith estimate of with the Market Expansion Rate for the subject Expansion Space parties using their best efforts to reach an agreement. All negotiations and notify the other of such determination not less than thirteen (13) calendar months a fully executed lease must be completed prior to the Availability Date for expiration of the particular Expansion SpaceOption term (initial or extended, then the terms as applicable), failure to do so being an absolute bar of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination Expansion Option. Time is of the Market Expansion Rate, Landlord shall prepare an amendment essence with regard to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Building.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:Option
Appears in 1 contract
Sources: Lease Agreement (Liposcience Inc)
Expansion Options. Subject to the terms and conditions set forth in this Section 35D below1.2, Landlord grants to Tenant shall have and is hereby granted the options described in Section 35B below to add space ("Expansion Space") to the Premises as follows:
(a) The first option ("First Expansion Option") shall be with respect to approximately 14,387 square feet of Rentable Area in the 9th Floor Building ("First Expansion Space"). The second option ("Second Expansion Option") shall be with respect to approximately 7,075 square feet of Rentable Area in the Building ("Second Expansion Space"). A floor plan showing the approximate configuration and location of the First Expansion Space I (hereinafter defined) and the 9th Floor Second Expansion Space II is attached hereto as Exhibit A-2.
(hereinafter definedb) for Tenant shall exercise the remaining Term of this Lease (including First Expansion Option, if at all, no later than July 31, 2006. Tenant shall exercise the Second Expansion Option no later than June 30, 2009. If Tenant shall fail to exercise any Renewal Term) upon Expansion option by the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space shall be at the Market Expansion Rate (defined below)dates provided, and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Landlord shall have no obligation to contribute to the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" it shall be deemed to refer have waived the right to and include any such exercise the Expansion SpaceOption in question, except as expressly provided otherwise in this Leasebut Tenant's failure to exercise the First Expansion Option shall not waive Tenant's right to exercise the Second Expansion Option. Each Expansion Option shall be exercised by Tenant giving notice to Landlord of its election.
(1c) On a date specified by Landlord during shall deliver the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease Year, Tenant shall have the right to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor First Expansion Space I")to Tenant on Feb, at 2007. Landlord shall deliver the Market Expansion Rate applicable to the 9th Floor Second Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of the fifth Lease Year and continuing until the last day of the fifth Lease Yearto Tenant on or before Jan 1, Tenant shall have the right to expand into 11,354 rentable square feet (the "9th Floor 2009. The First Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such and Second Expansion Space shall become available each be delivered to Tenant in its "As-Is" condition. The determination of Market Rate will reflect the Tenant condition of the space. The space leased pursuant to either the First Expansion Option or the Second Expansion Option shall be added to the Premises on the date of delivery thereof by Landlord, but Tenant's obligation to pay Rent with respect thereto shall not commence until the earlier of (i) the "Availability Date") not less than fourteen date which is four (144) months in advance after such delivery date, or (ii) the date on which Tenant commences using such space for business purposes.
(d) Within thirty (30) days of receiving Tenant's notice exercising the Availability Date. Within fifteen (15) business days after receipt First Expansion Option or the Second Expansion Option, Landlord shall give notice of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their 's good faith estimate of the Market Expansion Rate for the subject Expansion Space and Space. The Market Rate set forth in such notice by Landlord shall be controlling unless within thirty (30) days after such notice Tenant shall notify Landlord that it objects to Landlord's estimate of Market Rate, in which case the other Market Rate shall be determined in accordance with Section 3.1(c) of such determination this Lease. If the Market Rate has not less than thirteen (13) calendar months been determined prior to the Availability Date date when monthly Rent on the Expansion Space commences, then Tenant shall pay monthly Rent based upon Landlord's estimates until the monthly Rent has been determined at which time Landlord shall pay to Tenant or Tenant shall pay to Landlord, as appropriate, the amount equal to the overpayment or underpayment of Rent for such Expansion Space.
(e) If at the particular time of exercise or at any time thereafter until the commencement of the Term as to the Expansion Space, then the terms an Event of Section 33 above shall apply Default exists under this Lease, Tenant will have no right to exercise its option as to the procedure for determining the subject Market relevant Expansion Rate. If Tenant fails Space and/or to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived lease such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below)Expansion Space.
C. Promptly (f) Within ten (10) days after request by Landlord or Tenant's exercise of such expansion option and , the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall parties will execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35Lease, is subject in the form prepared by Landlord, adding to the following conditions: (i) that on Premises any Expansion Space which Tenant has elected to lease, as of the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any commencement of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except Term with respect to a Related Assigneesuch Expansion Space, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet with the Termination Date specified in the Building.
E. For purposes of this Section 35Basic Lease Information, "Market Expansion Rate" shall mean and otherwise upon the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord terms and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes conditions of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:.
Appears in 1 contract
Expansion Options. Subject to Section 35D below(a) Following the initial lease-up of the Building (which period, for the purposes hereof shall end when ninety percent (90%) of the leasable space in the Building has been leased and occupied), throughout the Initial Term (and Renewal Term, if applicable) Tenant shall have a right of first offer to lease any other space that becomes available for leasing in the Building following its initial leasing to a third party. Such right of first offer shall be subject to and is hereby granted exercisable strictly in accordance with the options described terms of this Paragraph 4.
(b) From time to time during the Term, if Landlord reasonably expects any such space in Section 35B below the Building to add become available for leasing, Landlord shall notify Tenant (“Offer Notice”) of the date on which Landlord reasonably expects the same to become available (which Landlord notice shall not be delivered to Tenant more than eighteen (18) months prior to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon date on which Landlord expects the same terms contained to become available for leasing. Any space specified in an Offer Notice from Landlord shall constitute “Offer Space,” as such term is used herein. A space shall be deemed to be “available for leasing,” as such phrase is used in this Lease except Section 32 and Appendix D of this Lease and Paragraph 4 on the Base Rate for date on which the previous tenant’s or occupant’s rights to lease such Expansion Space shall be at space expire or are terminated. The parties acknowledge that the Market Expansion Rate (defined below), and provided that any all space added subject to the Premises pursuant to this Section 35 shall Expansion Option is currently or will be delivered "as is," and occupied by other tenants. Landlord shall have no obligation to contribute offer any such space to the cost of Tenant on any construction or remodeling by Tenantparticular date, nor shall Landlord have any liability for any delay in delivering any such Offer Space to Tenant which results from a delay in the existing tenant vacating such Offer Space, and no such delay shall in any way constitute a default hereunder by Landlord or subject Landlord to any liability. If Tenant exercises its rights under this ▇▇▇▇▇▇▇▇▇ ▇, ▇▇▇▇▇▇▇▇ will use commercially reasonable efforts to regain possession of the Offer Space upon the expiration of such other tenant’s or occupant’s rights with respect thereto.
(c) Tenant’s right to lease said Offer Space shall be obligated subject to perform the following conditions:
(i) Tenant notifies Landlord in writing of Tenant’s intent to lease the Offer Space (“Leasing Notice”) on or before the tenth (10th) business day following Landlord’s Offer Notice;
(ii) Pursuant to the terms of Tenant’s Leasing Notice, Tenant agrees to Lease: (1) all of the Offer Space specified in Landlord’s Offer Notice, or (2) at least fifty percent (50%) of such Offer Space, plus such additional portion thereof as may be necessary in order to ensure that: (x) the portion of the Offer Space to be leased by Tenant as well as the remainder of the Offer Space satisfies any construction code requirements; and (y) the remainder of the Offer Space shall be reasonably marketable to third parties in connection Landlord’s reasonable judgment;
(iii) at the time of the aforesaid Leasing Notice, there is no existing Event of Default which is not remedied within the applicable cure periods set forth in Article 11 of the Lease; and
(iv) at the time of the aforesaid Leasing Notice and throughout the period prior to Landlord’s delivery of the Offer Space to Tenant, Tenant has not: (1) assigned any portion of its interest under the Lease or subleased a total of more than 12,500 square feet (determined based upon the total of all then existing subleases applicable to any portion of the Leased Premises) of the Leased Premises to any third party other than pursuant to a Permitted Transfer as provided in Section 10(i) of the Lease, or (2) otherwise ceased to lease any portion of Leased Premises which were originally leased to Tenant under the Lease. In the event that any of the forgoing conditions are not satisfied, Landlord, at its option, may elect, at its sole option and in its sole and absolute discretion not to lease or offer the Offer Space to Tenant.
(d) If Tenant fails to timely exercise its Expansion Option following an Offer Notice from Landlord, then Landlord may thereafter market and lease the applicable Offer Space to any other person or entity upon terms determined by Landlord in its sole and absolute discretion., subject to the following additional right of Tenant: At any time prior to Landlord entering into a letter of intent (which thereafter results in a lease) or lease with a third party with respect to the same, Tenant may exercise its Expansion Option as provided above. Such subsequent exercise shall remain subject to all of the conditions set forth subparagraph (c) above, and in addition, if Landlord has received a letter of intent or signed lease from a third party for all or a portion of the subject Offer Space, then Tenant must exercise its Expansion Option with respect to entire portion of such spaceOffer Space being contemplated for lease by such third party.
(e) If Tenant timely and properly exercises its right to lease the Offer Space, and the conditions applicable thereto (as set forth in subparagraph (c)) have been satisfied, Tenant’s leasing of the Offer Space shall be upon all of the terms and conditions of this Lease [including but not limited to the Term hereof (it being understood that Tenant’s leasing of the Offer Space shall be coterminous with Tenant’s leasing of the original Leased Premises, unless less than sixty (60) full calendar months remain in the then-current Term, in which case, as an additional condition of Tenant’s leasing the Offer Space, the then current Term (the Initial Term or Renewal Term, as applicable) shall be deemed extended by such additional period as is necessary to ensure Tenant’s leasing of the Offer Space and the balance of the Leased Premises for a full sixty (60) calendar months)] as modified by the terms of this subparagraph (e) and subparagraph (f) below. Upon Landlord’s delivery of the Offer Space, the Leased Premises shall include the Offer Space, and the total net rentable area thereof shall be appropriately increased. Tenant's ’s Basic Rent obligations with respect to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion the Offer Space shall commence on the date such space is actually made available that Landlord delivers possession of the Offer Space to Tenant to be added (“Delivery Date”). Tenant shall pay Landlord annual Basic Rent for the Offer Space, in an amount equal to the Premises. In net rentable area of the event that Offer Space multiplied by the sum of (1) the then-escalated per square foot Basic Rent which Tenant exercises either is obligated to pay with respect to the original Office Space portion of its expansion options the Lease Premises pursuant to Section 35B below, 1(a)(2) of the Expansion Space thereby added Lease; and (2) the then-escalated amount payable by Tenant pursuant to Section 3(b) of the Lease with respect to the Premises shall become a part Office Space portion of the Leased Premises for all purposes of this Lease(expressed on a per square foot basis). Thereafter, and any reference in this Lease said Basic Rent payable with respect to the term "Premises" Offer Space shall be escalated in accordance with (and at the same time as) the increase in Annual Basic Rent set forth in such Section 1(a)(2) of the Lease [***]. In addition to the Basic Rent, beginning on the first January 1st following the Delivery Date Tenant shall pay Landlord additional rent with respect to the Offer Space related to increases in Operating Expenses over those applicable to the calendar year in which the Delivery Date occurs. Such Additional Rent shall be payable in accordance with the terms of Article 3 of the Lease except that the “Base Year” for the purposes thereof shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise be the calendar year in this Leasewhich the Delivery Date occurs.
(f) If Tenant timely exercises the Expansion Option and the conditions applicable thereto are satisfied, then Landlord shall deliver and Tenant shall accept possession of the Offer Space (or portion thereof with respect to which Tenant has exercised its Expansion Option to the extent permitted pursuant to the foregoing) in its then “as is” condition, and any alterations or improvements thereto necessary or desired by Tenant shall be performed in accordance with the terms of Exhibit B to the Lease. Landlord shall deliver and Tenant shall accept possession of the applicable Offer Space in its then “as is” condition, except that the same shall be broom clean, free of any prior occupants’ personal property and with all Building systems serving the same in good working order. Tenant, at its sole cost and expense, shall undertake any improvements and alterations to the Offer Space that Tenant deems necessary or desirable in connection with Tenant’s use or occupancy of the same (“Offer Space Improvements”), which Offer Space Improvements shall be performed subject to and in accordance with the terms of Exhibit B to the Lease (including without limitation, the requirement that Tenant obtains Landlord’s prior written approval with respect to the same). Landlord shall make available to Tenant an Offer Space Landlord Payment (herein so called) as set forth below. The use and payment of such Offer Space Landlord’s Payment shall be subject to the terms and conditions set forth in Paragraph 1 of this Addendum, except that the amount of such Offer Space Landlord’s Payment shall be determined by multiplying the following three figures: (1) On a date specified by Landlord during the period beginning with quotient resulting from dividing the first day number of full calendar months between the third Lease Year applicable Offer Space Rent Commencement Date (as defined below) and continuing until the last day of the third Lease Yearthen-current Term (i.e., the Term for which Tenant shall have the right lease and pay Basic Rent with respect to expand into 11,353 rentable square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Offer Space pursuant to Section 30A above (the "9th Floor Expansion Space I")Lease, at the Market Expansion Rate applicable as such Term same may have been extended as required pursuant to the 9th Floor Expansion Space I.
terms of subparagraph (e) above) by 12; and (2) On a date specified by [***] and (3) the net rentable area of the Offer Space with respect to which Tenant has exercised its Expansion Option. Such Offer Space Landlord during the period beginning Payment shall be paid to Tenant in accordance with the first day procedures and requirements set forth in Paragraph 1 of this Addendum. For the purposes hereof, the Offer Space Rent Commencement Date shall be the earlier to occur of: (i) substantial completion of the fifth Lease Year and continuing until Offer Space Improvements in the last day Offer Space, or (ii) ninety (90) days after the date that Landlord delivers possession of such Offer Space to Tenant. Prior to Landlord’s delivery of the fifth Lease YearOffer Space to Tenant, Landlord and Tenant shall have execute and deliver an amendment to this Lease in the right pre-negotiated form attached to expand into 11,354 rentable square feet the Lease as Exhibit I) adding the applicable Offer Space to the Leased Premises (it being the "9th Floor Expansion Space II") on the 9th floor intent of the Building depicted on Appendix A attached hereto at parties that Tenant shall utilize such ninety (90) day period to plan, permit, and construct the Market Expansion Rate applicable to Offer Space Improvements in the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Offer Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option (g) If Tenant timely and properly exercises the final determination Expansion Option granted hereby, prior to Landlord’s delivery of the Market Expansion Rateapplicable Offer Space to Tenant, Tenant and Landlord shall prepare execute an amendment to the Lease to reflect changes memorializing said expansion of the Leased Premises and the terms applicable thereto substantially in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due form attached to the addition of Lease as Exhibit I.
(h) In the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditionsevent of: (i) that on the date that Tenant delivers its binding written notice a failure of its election to exercise the subject option to expand, Tenant is not in default under any of the conditions set forth in subparagraph (c) above prior to Landlord’s delivery of the Offer Space to Tenant, no such failure shall relieve Tenant of its obligations with respect to such Offer Space (it being the intent of the parties that if Landlord delivers such Offer Space in accordance with the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuinghereof, (ii) that Tenant shall not have assigned this Lease, except be responsible for all rental obligations hereunder with respect to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Buildingsuch Offer Space).
E. For purposes of (i) Nothing in this Section 35, "Market Expansion Rate" Paragraph 4 shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal any way affect Tenant’s rights to the average annual escalation prevailing among Additional Space or the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:terms and conditions applicable thereto set forth in Paragraph 3 hereof.
Appears in 1 contract
Sources: Deed of Lease (Trex Co Inc)
Expansion Options. Subject to Section 35D below(a) During the six month period following the date of this Lease, Tenant shall have and is hereby granted the options described option of leasing additional space in Section 35B below to add to the Premises the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon Building under the same terms contained and conditions, including Basic Rent, as are set forth in this Lease except Section 32 Lease. In addition, during such six month period, as to any unleased space and Appendix D of this Lease and until such space in the Base Rate for such Expansion Space shall be at Building is initially leased, as Landlord receives an offer or proposal to rent space in the Market Expansion Rate (defined below)Building which Landlord wishes to accept, and provided that any space added to the Premises pursuant to this Section 35 shall be delivered "as is," and Landlord shall notify Tenant and Tenant shall have no obligation five (5) business days to contribute notify Landlord in writing that it wishes to lease the cost of any construction or remodeling by Tenant, nor shall Landlord be obligated to perform any construction in connection with such space. Tenant's obligations to pay Operating Cost Share Rent, Tax Share space under the same terms and conditions including Basic Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premises. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below, the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise are set forth in this Lease.
(1b) On a After the end of the six month period following the date specified of this Lease, as to any unleased space and until such space in the Building is initially leased, as Landlord receives an offer or proposal to rent space in the Building which Landlord wishes to accept, Landlord shall notify Tenant and Tenant shall have five (5) business days to notify Landlord in writing that it wishes to lease the space at fair rental value pursuant to Section 35. All concessions relating to tenant improvements shall be at market rates.
(c) If Tenant has given Landlord twelve (12) month's prior written notice of its intent to lease additional space in the Building, Tenant shall have the option of renting an additional 5,000 square feet in the Building after the third Lease Year commencing upon the termination of the initial short term leases entered into by Landlord during Landlord, if any, but in no event later than twelve (12) months after the period beginning with the first day end of the third Lease Year Year. If Tenant exercises its option to rent the additional 5,000 contiguous square feet and continuing until if Tenant has given Landlord twelve (12) months prior written notice at the last day end of the third fourth Lease Year, Tenant shall have the right option to expand into 11,353 rentable lease an additional 10,000 contiguous square feet on the 9th floor of the Building depicted on Appendix A attached hereto less any portion of such space Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning with the first day of after the fifth Lease Year and continuing until upon the last day termination of the initial short term leases entered into by Landlord, if any, but in no event later than twelve (12) months after the end of the fifth Lease Year, . The Basic Rent for any additional space in the Building leased by Tenant shall have the right be an amount equal to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable fair rental value as determined pursuant to the 9th Floor Expansion Space II.
B. Landlord shall give written notice Section 35 and all concessions relating to Tenant improvements shall be at market rates. All other terms and conditions of the date on which such Expansion Space this Lease shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rateapply. If Tenant fails to give exercises its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver rent additional space, the space shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and be made available to Tenant at the final determination of the Market Expansion Rate, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration termination of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Building.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space pre-existing short term leases entered into by Landlord for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:space.
Appears in 1 contract
Expansion Options. Subject Provided Western Electric Company, Incorporated is the tenant in possession of the premises, then at any time during the term hereof, prior to Section 35D belowtwo (2) years before the expiration thereof, and during any extension of the term by Tenant, Tenant shall have an unlimited number of expansion options for improvements. For the purpose of this paragraph 34 "expansion" shall be deemed to occur only if Tenant desires to increase the gross square feet of building space located on the premises by 15,000 square feet or more. Any work not included within such definition shall be deemed an alteration, addition or improvement pursuant to paragraph 5 hereof. If Tenant seeks to expand the improvements as provided above, Tenant will deliver to Landlord a written request for a bid for such expansion work and upon receiving such written request by Tenant and after submission by Tenant to Landlord of plans and specifications, Landlord will submit a lump-sum bid to Tenant which will be good for a period of thirty (30) days. In the event Tenant does not accept such lump-sum bid, Landlord shall obtain bids from three (3) other contractors acceptable to Tenant and qualified to perform the construction work for the expansion and Landlord shall submit a revised bid. If one or more of those bids from other contractors, plus ten percent (10%) of such bid to be added by Landlord, is hereby granted lower than the options described in Section 35B below revised bid submitted by Landlord, Landlord shall have the option to add contract with such (lowest bid) contractor or to perform the expansion work at such lowest bid plus ten percent (10%) thereof. If Landlord's revised bid is less than the lowest bid of any of the other contractors, after adding ten percent (10%) to the Premises amount of such other contractor's bid, then Landlord shall perform the 9th Floor Expansion Space I (hereinafter defined) and the 9th Floor Expansion Space II (hereinafter defined) for the remaining Term of this Lease (including any Renewal Term) upon the same terms contained in this Lease except Section 32 and Appendix D of this Lease and the Base Rate for such Expansion Space shall be expansion work at the Market Expansion Rate amount of Landlord's revised bid. Landlord may refuse to perform the expansion work at the lowest bid plus ten percent (defined below)10%) thereof, and provided that in such event Tenant shall have the right to have such work performed by such lowest bidder without any space added to the Premises compensation pursuant to this Section 35 shall be delivered "as is," paragraph 34 to Landlord. Tenant reserves the right to refuse to accept any of such bids and Landlord shall have no obligation to contribute to in such event the expansion will not occur. The cost of any construction or remodeling expansion work performed by TenantLandlord shall be paid on a monthly basis by Tenant as the work is performed, nor less a retainage of ten percent (10%) which shall Landlord be obligated to perform any construction in connection with such space. Tenantpaid thirty (30) days after completion of the work certified by Landlord's obligations to pay Operating Cost Share Rent, Tax Share Rent and Base Rent for any particular Expansion Space shall commence on the date such space is actually made available to Tenant to be added to the Premisesarchitect. In the event that Tenant exercises either of its expansion options pursuant to Section 35B below▇.▇. ▇▇▇▇▇▇▇▇ & Co., the Expansion Space thereby added to the Premises shall become a part of the Premises for all purposes of this Lease, and any reference in this Lease to the term "Premises" shall be deemed to refer to and include any such Expansion Space, except as expressly provided otherwise in this Lease.
(1) On a date specified by Landlord during the period beginning with the first day of the third Lease Year and continuing until the last day of the third Lease YearInc. is no longer Landlord, Tenant shall have the right to expand into 11,353 rentable square feet on perform expansion work with a contractor of its own choosing, provided only that the 9th floor landlord then in possession of the Building depicted on Appendix A attached hereto less any portion of such space premises shall be afforded an opportunity to bid, which bid or bids may be rejected by Tenant leases as Additional Space pursuant to Section 30A above (the "9th Floor Expansion Space I"), at the Market Expansion Rate applicable to the 9th Floor Expansion Space I.
(2) On a date specified by Landlord during the period beginning in its sole discretion. Any expansion work shall be in accordance with the first day of the fifth Lease Year standards set forth in paragraph 5B relating to alterations, additions and continuing until the last day of the fifth Lease Yearimprovements, Tenant and shall have the right to expand into 11,354 rentable square feet (the "9th Floor Expansion Space II") on the 9th floor of the Building depicted on Appendix A attached hereto at the Market Expansion Rate applicable to the 9th Floor Expansion Space II.
B. Landlord shall give written notice to Tenant of the date on which such Expansion Space shall become available to the Tenant to be added to the Premises (the "Availability Date") not less than fourteen (14) months in advance of the Availability Date. Within fifteen (15) business days after receipt of such notice from Landlord, Tenant may deliver a non-binding written notice to Landlord of its desire to exercise the subject option to expand. Thereafter, both parties shall calculate their good faith estimate of the Market Expansion Rate for the subject Expansion Space and notify the other of such determination not less than thirteen (13) calendar months prior to the Availability Date for the particular Expansion Space, then the terms of Section 33 above shall apply as to the procedure for determining the subject Market Expansion Rate. If Tenant fails to give its non-binding written notice of its desire to exercise the subject to expand when due as hereinabove provided, Tenant will be deemed to have waived such particular option to expand (but such waiver shall not affect Tenant's rights under Sections 36 and 38 below).
C. Promptly after Tenant's exercise of such expansion option and the final determination of the Market Expansion Ratean alteration, Landlord shall prepare an amendment to the Lease to reflect changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and any other appropriate terms, due to the addition of the subject Expansion Space. Tenant shall execute and return such an amendment to this Lease within fifteen (15) days after its submission to Tenant.
D. Tenant's right to exercise its options to expand pursuant to this Section 35, is or improvement subject to the following conditions: (i) that on the date that Tenant delivers its binding written notice provisions of its election to exercise the subject option to expand, Tenant is not in default under any of the terms of this Lease after the expiration of any applicable notice and cure periods and no unmatured event of default has occurred and is continuing, (ii) that Tenant shall not have assigned this Lease, except to a Related Assignee, and (iii) Tenant continues to occupy a minimum of 80,000 rentable square feet in the Buildingsaid paragraph 5.
E. For purposes of this Section 35, "Market Expansion Rate" shall mean the then prevailing gross rent per square foot of rentable area at which a financially responsible landlord and tenant would agree in an arm's length transaction to a lease of all of the subject Expansion Space for the balance of the initial Term, converted to a net or base rent as provided herein. Such prevailing gross rent will be converted back into a net or base rent (which shall then be the Market Expansion Rate for purposes of this Lease) by the deduction of the sum of the then-current amounts of Operating Cost Share Rent, Tax Share Rent and Additional Rent per square foot payable under this Lease. The Market Expansion Rate may, if requested by Landlord, be restated to include an annual escalation of the initial net or base rent equal to the average annual escalation prevailing among the Comparables provided that the net present value (using the Discount Rate) of the net or base rent payments to be made by Tenant as so escalated shall be equal to the net present value (using the Discount Rate) of the net or base rent payments which would be made by Tenant under this Lease without such escalation. The Market Expansion Rate shall be determined for each exercise of Tenant's right to expand under this Section 35. In determining the subject Market Expansion Rate, such Market Expansion Rate shall be established by reference to the Effective Market Rate for the relevant Comparables. In considering Comparables, lease expansions shall be given greater consideration than new leases. The Market Expansion Rate for any expansion shall be adjusted, upward or downward, from the Effective Market Rent for the respective Comparables, to reflect the following factors:
Appears in 1 contract
Sources: Sublease (Select Comfort Corp)