Common use of Option to Expand Clause in Contracts

Option to Expand. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligation, to expand the Premises upon and subject to the following terms and conditions (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenant.

Appears in 1 contract

Samples: Lease (Optex Systems Holdings Inc)

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Option to Expand. Provided Landlord and Tenant has not received acknowledge that another tenant (the "Existing Tenant") leases from Landlord written notice of Tenant’s default of the terms of remaining premises in the Lease Building (unless such default has been curedthe "Remaining Premises"), during which contain 21,163 gross leasable square feet and are outlined on EXHIBIT A, pursuant to a lease between Landlord and the period of time commencing with Existing Tenant (the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, "Existing Tenant Lease"). Tenant shall have the right, but not the obligation, option to expand the Premises upon and subject to the following terms and conditions (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, Remaining Premises at the time Tenant delivers the written notice expiration of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Existing Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 the expiration of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier currently scheduled to occur of on January 31, 2007 (i) the completion of Tenant’s improvements"Existing Lease Expiration Date"), if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination which option can must be exercised by Tenant by delivering written notice to Landlord no later than thirty 270 days prior to the Existing Lease Expiration Date. If Tenant elects to lease the Remaining Premises, such Remaining Premises shall be subject shall be at the same monthly per square foot Base Monthly Rent rates that are applicable to the Premises, as such rates change from time to time, and on the other terms and conditions as contained in the Lease, except that there will not be any concession, allowance, including without limitation, Landlord Allowance, or work required of Landlord in connection therewith. The lease of the Remaining Premises will be in its then AS IS condition. Tenant will commence paying all rent for the Remaining Premises as of the date Landlord delivers possession of the Remaining Premises to Tenant. If Tenant elects to lease the Remaining Premises, the parties shall thereafter execute an amendment to this Lease adding the Remaining Premises to the Lease. In the event the Existing Tenant Lease terminates prior to the scheduled expiration date, Landlord shall provide Tenant with notice of such termination and Tenant shall have ten (3010) days after to decide whether or not to exercise its right to lease the date upon which Landlord notifies Remaining Premises. The failure of Tenant to provide its written notice to lease the Remaining Premises within the applicable time period provided above shall be deemed an election not to lease the Remaining Premises. If Tenant elects (or is deemed to have notifiedelected) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Remaining Premises, any right to lease the Remaining Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be null and void and of no further force or effect. Tenant's rights under this Section 2.8 are personal to the original party signing this Lease as Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenantits transferee under a Permitted Transfer.

Appears in 1 contract

Samples: Building Lease Agreement (Drexler Technology Corp)

Option to Expand. Provided Tenant has is entering into this Lease in reliance on the benefit of a possible expansion of the Premises at such time as any space in the Building is not received from Landlord written notice under lease to any party other than Tenant. Accordingly, as a condition of Tenant’s default 's entering into this Lease, Landlord hereby agrees with Tenant that Landlord will not grant to any third party tenant or other occupant of the terms Building or other party whatsoever any refusal, expansion, extension, renewal, or other options or rights unless such rights are made specifically secondary and subordinate to Tenant's option to expand set forth hereinbelow. Landlord hereby grants to Tenant the continuing first and prior right to lease any leasable portion of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day first floor of the twenty fourth (24th) month thereafter, Tenant shall have the right, but Building not the obligation, to expand included within the Premises upon which becomes vacant during any term of this Lease, and subject to the following terms and conditions (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of at such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be earlier time as (i) all of the Available Space Tenant notifies Landlord in writing that Tenant desires to lease such expansion area or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify notifies Tenant in writing that Landlord has a prospective tenant desiring to lease such expansion area, in which latter event Tenant shall accept or reject such space within ten (10) business days following receipt of such sixty (60) day period as notice from Landlord; failure of Tenant to whether Landlord will accommodate Tenant’s expansion request so accept such space shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Spacerejection. In the event Tenant elects desires to exercise its termination right as aforesaidlease such expansion area, if such space has not then Tenantbeen previously leased to a third party, as a condition precedent such expansion area shall be added to such exercisethe Premises on terms and conditions, shall pay to Landlordincluding without limitation any construction allowance, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum which new or prospective tenants of the (i) unamortized portion of the leasing commissions paid Building are then being offered by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the LeaseLandlord. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the any time Tenant delivers is offered but rejects any such expansion space, Tenant's aforesaid option to expand shall remain in full force and effect over all leasable space in the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal Building not under lease to Tenant and shall not be transferredrevive as to space offered to a third party at such time as the space again becomes vacant and available for lease, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenantto third parties.

Appears in 1 contract

Samples: Lease Contract (Headhunter Net Inc)

Option to Expand. Provided Tenant has not received from Landlord written notice WITHIN THE BUILDING - FIRST GENERATION SPACE. At any time within the twelve (12) months following the date of Tenant’s default of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligation, to expand the Premises upon execution hereof and subject to the following terms and conditions availability of space, Tenant or a Permitted Transferee shall have the option to expand the Leased Premises ("Expansion Option"), to occupy space consisting of a minimum of an additional 12,800 rentable square feet of any previously unleased, first generation space in the Building (the "Expansion Space"). In the event Tenant elects to exercise its Expansion Option”). The Available Space , Landlord and Tenant hereby agree that (herein so calledi) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to shall provide Landlord with one hundred fifty twenty (150120) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing its desire to expand in to, which square footage must either be (i) all of the Available Space or expand; and (ii) if said Expansion Space is available for lease to Tenant, the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises term for the Expansion Option on a timely basisSpace shall be coterminous with the term for the original Leased Premises, then and the Minimum Rent for the Expansion Space shall be equal to and amount of Four Dollars and Forty Five Cents ($4.45) per rentable square foot of the Expansion Space. Landlord shall have provide Tenant with a period of sixty tenant finish improvement allowance equal to Six Dollars (60$6.00) days from its receipt per rentable square foot of the Expansion Space Election Notice to notify Tenant, in writing (the “"Landlord’s Notice”'s Expansion Allowance"), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request 's Expansion Allowance shall be deemed Landlord’s notice, as applied solely toward the cost of constructing and completing the last day tenant finish improvements within the Expansion Space for Tenant's use and occupancy of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with . The cost of any tenant finish improvements within the Expansion Space Commencement Date which exceed the amount of Landlord's Expansion Allowance shall be paid in full by Tenant to Landlord within thirty (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (530) days of Landlord notifying Tenant's receipt of an invoice therefor. If Tenant that Landlord will accommodate Tenant’s expansion requestproperly exercises its Option to Expand, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of reflecting the Lease which are affected by a change in square footage of the Premises, effective as of above-described terms for the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to TenantOption, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after Tenant's receipt of Landlord's Notice advising that the date upon which Landlord notifies (or Expansion Space is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Leaseavailable. In the event Landlord notifies Tenant elects that the Expansion Space is not available for lease to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal remain in effect with respect to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, space becoming available at any subtenant of Tenanttime during the Lease Term.

Appears in 1 contract

Samples: Lease Agreement (Mim Corp)

Option to Expand. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date Subject and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligation, to expand the Premises upon and subject subordinate to the following terms and conditions (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) rights of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt existing tenants of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the date of this Lease Addendum No. 3, Lessor grants to Lessee during Metro Level Extension Period 1 an option to expand the Metro Level Demised Premises to include an area on the metro level of the Building, having a rentable area of approximately 1,612 square feet (said area is hereinafter referred to as the "Expansion Space Commencement Date. Tenant shall commence paying Base Rent Space" and Tenant’s Proportionate Share is outlined on Exhibit A-1 attached hereto), provided Lessee exercises this option as set forth below, and provided further that Lessee is not in default under the Lease beyond any applicable notice and cure period either on the date Lessee notifies Lessor of Taxes its intent to exercise this option or at any time thereafter up to and Expenses (as well as service and utility charges and all other additional rent required by including the commencement date of the term of the Lease with respect to the Expansion Space) commencing on Space (the "Expansion Space Commencement Date"). The Expansion Space Commencement Date (Except as noted above, the option to expand granted herein so called) shall be superior to the date upon which Landlord delivers rights of all other parties with regard to the leasing or use and occupancy of any or all of the Expansion Space. Provided all such existing tenants have either waived or elected not to exercise any and all rights such tenants may have for the Expansion Space, Lessor shall notify Lessee in writing at such time during Metro Level Extension Period 1 as the Lessor is able to lease the Expansion Space to TenantLessee, and shall specify the anticipated delivery date of the Expansion Space which date shall be no earlier than ninety (90) days following the delivery of such notice from Lessor to Lessee. Lessee may exercise this option to expand only by delivering written notice to Lessor, no later than ninety (90) days from after Lessee's receipt of Lessor's notice specifying the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery availability of the Expansion Space, stating its intent to exercise this option. In the event Tenant elects to exercise its termination right as aforesaidsuch event, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of , and the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) date Lessor shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion deliver possession of the Expansion Space TI Allowance remaining upon that to Lessee, shall be the date (specified in Lessor's notice to Lessee as provided above. In the event Lessor is unable to deliver possession of the Expansion Space TI Allowance Forfeiture Date”to Lessee by the date specified in Lessor's notice, Lessor, its agents and employees, shall not be liable or responsible for any claims, damages or liabilities arising in connection therewith or by reason thereof. In such event, Lessee's option to expand shall remain in effect, and Lessor shall notify Lessee in writing no less than ten (10) which days prior to the date Lessor is able to deliver possession of the earlier Expansion Space to occur Lessee. Unless Lessee notifies Lessor of Lessee's desire to withdraw the exercise of its option to expand in writing and such notice is received by Lessor within ten (i10) days after the completion specified delivery date, any delay in the delivery of Tenant’s improvements, if any, possession of the Expansion Space beyond the date specified in Lessor's notice will not excuse or release Lessee from its obligation to accept possession of the Expansion Space, and (ii) twelve (12) months from pay rent for the Expansion Space Commencement Date Lessee's exercise of this option to expand shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant subject to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenant.conditions:

Appears in 1 contract

Samples: Century Bancshares Inc

Option to Expand. Provided If Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), requires additional space during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafterTerm, Tenant shall have the right, but give Landlord not the obligation, less than three (3) months prior notice to expand the Premises upon and subject to the following terms and conditions such effect (the “Expansion OptionNotice”). The Available Space (herein so called) is If contiguous space on the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (21st Floor of the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage Building (the “Expansion Space”) of is then vacant and available for lease or will be vacant and available for lease at the Available Space Tenant is electing time the term as to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basissuch additional space would commence, then Landlord shall have a period give Tenant notice of sixty (60) days from its receipt the availability of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Offer Notice”)) and the terms (including rent, as tenant improvement allowance, if any, and any other concessions Landlord is then offering prospective tenants for similar lease terms) on which Landlord is willing to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with Space to Tenant for a term which expires on the Extended Termination Date which in no event shall be less than thirty-six (36) months. If there will be less than thirty-six (36) months remaining in the Extended Term for the Expansion Space Commencement Date (the Option to Expand shall be void. The commencement date as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. shall be three (3) months after Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to gives the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Notice to Landlord or after Landlord delivers the Expansion Space to Tenant, which date whichever is later. To exercise its expansion right, Tenant must within ten (10) days after receipt of the Offer Notice give Landlord notice of its acceptance of Landlord’s offer to lease the Expansion Space to Tenant (the “Acceptance Notice”). If Tenant gives the Acceptance Notice to Landlord within such ten (10) day period, then the Expansion Space shall be no later than added to the Premises as of the commencement date as to the Expansion Space, the Fixed Rent shall be increased by an amount equal to the rent for the Expansion Space set forth in the Offer Notice, and Tenant’s Share shall be appropriately adjusted. Landlord shall deliver possession of the Expansion Space to Tenant in its “AS IS” condition. If at the time Tenant gives Landlord an Expansion Notice Landlord is engaged in ongoing negotiations with one or more prospective tenants to lease all or any part of the Expansion Space, then Landlord shall give notice to such effect to Tenant and Tenant may elect to either: (a) give Landlord a period of ninety (90) days from the date the Landlord’s Tenant gives Landlord such Expansion Notice is delivered to Tenant; providedcomplete such negotiations, however, or (b) if Landlord has made a Letter of Intent to one or more prospective tenants for space that includes all or any part of the Expansion Space (the “Third Party Premises”) and sets forth the term, rental rate, tenant improvements or tenant improvement allowance and other material economic terms of the proposed lease (the “Third Party Terms), then Tenant may elect to lease the Third Party Premises on the Third Party Terms by giving notice to such effect (the “Third Party Terms Acceptance Notice”) within two (2) business days of the date on which Landlord gives notice of the Third Party Terms to Tenant. If Landlord has made a Letter of Intent to more than one such prospective tenant, then Landlord may select the Third Party Terms most favorable to Landlord as determined by Landlord in its sole discretion, and such Third Party Terms shall be set forth in Landlord’s notice of the Third Party Terms to Tenant. Tenant acknowledges that the term as to the Third Party Premises may extend beyond the Expiration Date and that the Third Party Premises may include space in addition to the Expansion Space, and in which case Tenant shall be required to lease the entire Third Party Premises that includes space in addition to the Expansion Space. If such negotiations do not been delivered result in a fully executed lease with one of such prospective tenants within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing deliveryperiod, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts Notice shall become effective in pursuing deliveryaccordance with its original terms, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event except that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area set forth in the Expansion SpaceNotice shall be postponed by ninety (90) days. All work performed by Landlord shall have the unrestricted right to lease all space on the 21st Floor of the Building unless and until Tenant in improving gives Landlord an Expansion Notice at which time Landlord shall cease further efforts to lease the Expansion Space shall be done described in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvementsNotice, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant except as otherwise provided in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of TenantSection.

Appears in 1 contract

Samples: Lease (Marchex Inc)

Option to Expand. Provided So long as Tenant has is not received from then in default of the Lease beyond any applicable cure periods, Tenant shall have a one-time option to expand the Premises (the “Second Floor Expansion Option”) by adding approximately 2,072 rentable square feet located on the second floor of the Building as outlined on the attached Exhibit A-1 ((the “Second Floor Expansion Option”), in accordance with the terms of this Section 29.17. If Tenant wishes to exercise the Second Floor Expansion Option, Tenant shall do so by giving Landlord written notice of Tenant’s default its exercise of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligation, to expand the Premises upon and subject to the following terms and conditions Floor Expansion Option (the “Second Floor Expansion Notice”) no later than on June 30, 2006. If Tenant does not give Landlord a written notice exercising Tenant’s Second Floor Expansion Option”), then the Option shall terminate and shall be of no further force or effect. The Available Space (herein so called) is If Tenant gives Landlord written notice of its exercise of the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Second Floor Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty on or before June 30, 2006, then, effective on the earlier of (150a) days prior written notice the date on which tenant improvements in the Second Floor Expansion Space are substantially completed or (b) September 1, 2006 (the “Second Floor Expansion Space Election NoticeCommencement Date) of such exercise. The ), the Second Floor Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either shall be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent added to the Premises. If Tenant exercises The annual Base Rent for the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Second Floor Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s NoticeSecond Floor Expansion Space Base Rent), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as equal the rate per square foot at the time of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Second Floor Expansion Space Commencement Date. Tenant shall commence paying , as set forth in the Summary of Fundamental Provisions, Item #5 of this Lease, multiplied by 2,072’, and the Second Floor Expansion Space Base Rent shall increase as set forth in the Summary of Fundamental Provisions, Item #5 of the Lease. The tenant improvement allowance to be provided by Landlord for the Second Floor Expansion Space shall equal $23.86 per rentable square foot. Effective on the Second Floor Expansion Space Commencement Date, the following shall occur: (a) the Second Floor Expansion Space shall be added to the Premises for the remainder of the Term of the Lease, (b) Base Rent for the Premises shall be increased by an amount equal to the Second Floor Base Rent determined as provided in this Section 29.17, and (c) Tenant’s Proportionate Share of Taxes and Operating Expenses (as well as service and utility charges and all other additional rent required by shall increase proportionately based on the Lease with respect increase in square footage in the Premises. Subject to the tenant improvement allowance to be provided by Landlord and Landlord’s obligations regarding common areas described above in this Section 29.17, Tenant shall lease the Second Floor Expansion Space) commencing on Space in its “as-is” condition as of the Second Floor Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), work agreement attached as Exhibit C to this Amendment shall apply to the improvements to the Second Floor Expansion Space TI Allowance (herein so called) shall be equal to and the product use of $4.00/60 multiplied by such tenant improvement allowance as if the number of months remaining in the term of the Lease after the Second Floor Expansion Space Commencement Date multiplied by were the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the original Premises leased under this Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenant.

Appears in 1 contract

Samples: Office Lease Agreement (Mathstar Inc)

Option to Expand. Provided So long as Tenant has is not received from then in default of the Lease beyond any applicable cure periods, Tenant shall have a one-time option to expand the Premises (the “Second Floor Expansion Option”) by adding approximately 2,072 rentable square feet located on the second floor of the Building as outlined on the attached Exhibit A-1 ((the “Second Floor Expansion Option”), in accordance with the terms of this Section 29.17. If Tenant wishes to exercise the Second Floor Expansion Option, Tenant shall do so by giving Landlord written notice of Tenant’s default its exercise of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligation, to expand the Premises upon and subject to the following terms and conditions Floor Expansion Option (the “Second Floor Expansion Notice”) no later than on June 30, 2006. If Tenant does not give Landlord a written notice exercising Tenant’s Second Floor Expansion Option”), then the Option shall terminate and shall be of no further force or effect. The Available Space (herein so called) If Tenant gives Landlord written notice of is exercise of the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Second Floor Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty on or before June 30, 2006, then, effective on the earlier of (150a) days prior written notice the date on which tenant improvements in the Second Floor Expansion Space are substantially completed or (b) September 1, 2006 (the “Second Floor Expansion Space Election NoticeCommencement Date) of such exercise. The ), the Second Floor Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either shall be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent added to the Premises. If Tenant exercises The annual Base Rent for the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Second Floor Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s NoticeSecond Floor Expansion Space Base Rent), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as equal the rate per square foot at the time of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Second Floor Expansion Space Commencement Date. Tenant shall commence paying , as set forth in the Summary of Fundamental Provisions, Item #5 of this Lease, multiplied by 2,072, and the Second Floor Expansion Space Base Rent shall increase as set forth in the Summary of Fundamental Provisions, Item #5 of the Lease. The tenant improvement allowance to be provided by Landlord for the Second Floor Expansion Space shall equal $23.86 per rentable square foot. Effective on the Second Floor Expansion Space Commencement Date, the following shall occur: (a) the Second Floor Expansion Space shall be added to the Premises for the remainder of the Term of the Lease, (b) Base Rent for the Premises shall be increased by an amount equal to the Second Floor Base Rent determined as provided in this Section 29.17, and (c) Tenant’s Proportionate Share of Taxes and Operating Expenses (as well as service and utility charges and all other additional rent required by shall increase proportionately based on the Lease with respect increase the square footage in the Premises. Subject to the tenant improvement allowance to be provided by Landlord and Landlord’s obligations regarding common areas described above in this Section 29.17, Tenant shall lease the Second Floor Expansion Space) commencing on Space in its “as-is” condition as of the Second Floor Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), work agreement attached as Exhibit C to this Amendment shall apply to the improvements to the Second Floor Expansion Space TI Allowance (herein so called) shall be equal to and the product use of $4.00/60 multiplied by such tenant improvement allowance as if the number of months remaining in the term of the Lease after the Second Floor Expansion Space Commencement Date multiplied by were the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the original Premises leased under this Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenant.

Appears in 1 contract

Samples: Office Lease Agreement (Mathstar Inc)

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Option to Expand. Provided Tenant If Sublessee has exercised its option to extend the Term for the First Extended Term by exercising the Extension Option provided in Section 19, and if and provided that Sublessee has demonstrated a track record of financial success and performance and has raised adequate capital to reasonably satisfy both Sublessor and Lessor as to its ability to fulfill the additional financial obligations of payment of rent and other charges for the Expansion Space (as hereinafter defined), and, thereby, provide Sublessor reasonable assurance that Sublessor is not received from Landlord written notice of Tenant’s default at risk by virtue of the terms of fact that Sublessor will increase its financial obligations by directly leasing the Lease Alternate Location (unless such default has been curedas hereinafter defined), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have Sublessor hereby grants to Sublessee the right, but not the obligationat Sublessee’s option, to expand the Premises upon to include the balance of the space in the Building then occupied by Sublessor, except the Growth Chamber Area and subject to Laboratory along the following terms and conditions (east wall of the “Expansion Option”). The Available Space (herein so called) is first floor of the square footage Building as depicted on Exhibit “B” I attached hereto and made a part hereof The Expansion Option can be exercised incorporated herein by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage reference (the “Expansion Space”) by giving Sublessor notice to such effect (the “Expansion Notice”) not less than one (1) year before the date on which Premises would be expanded to include the Expansion Space (the “Expansion Space Commencement Date”), which date shall be specified in the notice. As of the Available Expansion Space Tenant is electing Commencement Date, the Expansion Space shall be added to expand the Premises, the Base Monthly Rent shall be increased by an amount equal to the rental rate per rentable square foot of space then applicable under the Sublease times the number of rentable square feet of space in tothe Expansion Space and Sublessee’s Share shall be appropriately adjusted. If Sublessee elects to exercise its option to expand, which square footage must either be then Sublessee shall pay to Sublessor (a) any differential in rent between (i) all the rent per square foot payable by Sublessor for the balance of the Available Space or space in the Building then occupied by Sublessor over (ii) the approximately 6,000 rent per square feet of Available Space immediately adjacent to foot payable by Sublessor for the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date Alternate Location (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by times the number of square feet of rentable area space in the Expansion Space. All work performed , over (A) a period equal to the remaining term of the Master Lease, including any Extended Terms, or (B) a period of ten (10) years from the date Sublessor first occupies the Alternate Location, whichever period is shorter (the “Rent Differential”), plus (b) the costs to be incurred by Tenant in improving Sublessor to relocate its business and laboratory operations from the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date to another location selected by Sublessor (the “Expansion Space TI Allowance Forfeiture DateAlternate Location) which is the earlier to occur of ), including (i) the completion costs of Tenant’s improvements, if any, tenant improvements in the Alternate Location substantially equivalent to the tenant improvements and laboratory facilities then existing in the Expansion Space, leasing commissions and cabling and wiring costs (the “Tenant Improvement Costs”), provided, however, that if the number of square feet of space in the Alternate Location is greater than the number of square feet of space in the Expansion Space then the Tenant Improvement Costs shall only include the costs attributable to a portion of the space in the Alternate Location equal to the number of square feet of space in the Expansion Space, as such costs are reasonably determined by Sublessor, and (ii) twelve (12) months moving costs and all other costs incident to Sublessor’s relocation of its business and laboratory operations from the Expansion Space Commencement Date to the Alternate Location (the “Moving Costs”). The Alternate Location (i) shall be deemed forfeited by Tenantreasonably satisfactory to Sublessor, (ii) shall be in close proximity to the Building, and (iii) the terms of the lease on the Alternate Location, including the amount of the security deposit, if any, shall be reasonably acceptable to Sublessor. The Expansion Space TI Allowance shall be paid Tenant Improvement Costs and the Moving Costs are sometimes hereinafter collectively referred to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to Relocation Costs”. If the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises rent payable by Sublessor for either the Expansion Option but Landlord notifies Space or the Alternate Location is not fixed in the relevant leases or determinable by reference to a formula or specified increases set forth in the relevant lease (or for instance, because rent during an extended term is deemed determined with reference to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective market rent as of the ninetieth first day of the extended term), then for purposes of calculating the Rent Differential the relevant rent(s) shall be projected through the extended term(s) based on the rent payable during the last month as to which the rent is so fixed or determinable. For instance, if Sublessee gave the Expansion Notice in 2006, then the rent during the extended terms under the Master Lease would be projected based on the rate of $24.50 per rentable square foot per year applicable to Months 91-120 of the term of the Master Lease. The Rent Differential shall be calculated as provided in this Section and the Relocation Costs shall be reasonably estimated by Sublessor as soon as reasonably possible, but not later than the date six (9Otj day 6) months after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised the date of receipt by Tenant by delivering written Sublessor of the Expansion Notice, and Sublessor shall give notice to Landlord no later than Sublessee setting forth the estimated Relocation Costs. Within thirty (30) days of the date of receipt by Sublessee of Sublessor’s notice setting forth the Rent Differential and the estimated Relocation Costs, Sublessee shall either (a) pay to Sublessor in cash or immediately available federal funds an amount equal to the Rent Differential and the estimated Relocation Costs, or (b) give notice to Sublessor revoking the Expansion Notice and electing not to expand the Premises to include the Expansion Space. If Sublessee revokes the Expansion Notice and elects not to expand the Premises, then Sublessee shall reimburse Sublessor for the costs incurred by Sublessor to locate and negotiate a lease on the Alternate Location and to develop the estimate of Relocation Costs, including leasing commissions, attorney’s fees, consultant’s fees, fees payable to contractors, estimators or the landlord of the Alternate Location relating to estimating the costs of tenant improvements, and the cost of Sublessor’s own managerial and other personnel engaged in locating the Alternate Location, negotiating a lease on the Alternate Location and developing the estimate of Relocation Costs. Within ninety (90) days after Sublessor completes the relocation of its business and laboratory operations from the Expansion Space to the Alternate Location, or as soon thereafter as is reasonably practicable, Sublessor shall deliver to Sublessee a written statement setting forth the actual Relocation Costs. If the actual Relocation Costs exceed the estimated Relocation Costs, then Sublessee shall pay the difference to Sublessor within thirty (30) days after receipt of such statement by Sublessee, provided, however, that if the date upon which Landlord notifies actual Relocation Costs are more than one hundred twenty-five percent (or is deemed 125%) of the estimated Relocation Costs, Sublessee shall only be required to have notifiedpay the difference between an amount equal to one hundred twenty-five percent (125%) Tenant that Landlord will not accommodate Tenant’s expansion requestof the estimated Relocation Costs and the estimated Relocation Costs to Sublessor, and Sublessor shall be responsible for and bear the additional difference. If Tenant does not terminate the Lease as foresaid, actual Relocation Costs are less than the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaidestimated Relocation Costs, then Tenant, as a condition precedent to such exercise, Sublessor shall pay the difference to Landlord, Sublessee at the time Tenant delivers the written notice of termination Sublessor furnishes such statement to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of TenantSublessee.

Appears in 1 contract

Samples: Sublease (Eden Bioscience Corp)

Option to Expand. Provided Tenant has not received from Landlord written notice of Tenant’s default As of the terms Effective Date, Sublessor subleases that certain portion of the Lease Premises consisting of approximately nineteen thousand (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring 19,000) rentable square feet located on the last day first floor of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligation, to expand the Premises upon Buildings F and subject to the following terms and conditions (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage G (the “Expansion Space”) to Mailfrontier, Inc. (“Mailfrontier”). The term of Mailfrontier’s sublease (the “Mailfrontier Sublease”) expires on November 30, 2006, and Mailfrontier has two (2) options to extend the term of the Available Space Tenant is electing Mailfrontier Sublease, each for a period of one (1) year. Subject to, and in accordance with, the provisions of this Section 17, upon the expiration of the initial term of the Mailfrontier Sublease, provided Mailfrontier has not exercised its option to extend the initial term of the Mailfrontier Sublease, or, upon the expiration of the extended term of the Mailfrontier Sublease, in the event Mailfrontier has exercised one (1) or both of its one (1)-year options to extend the term of the Mailfrontier Sublease, Sublessee shall have the option (the “Expansion Option”) to expand in to, which square footage must either be (i) all of into the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the PremisesExpansion Space. If Tenant exercises Sublessee shall exercise the Expansion Option on by delivering a timely basis, then Landlord shall have a period of sixty notice (60the “Expansion Space Notice”) to Sublessor within ten (10) business days from its after Sublessee’s receipt of written notice from Sublessor confirming the expiration date of the term of the Mailfrontier Sublease (based on Mailfrontier’s exercise, or failure to exercise, its extension options under the Mailfrontier Sublease). If Sublessee does not timely deliver the Expansion Space Election Notice to notify TenantNotice, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with Sublessor may sublease the Expansion Space Commencement Date (as hereinafter defined), to any party upon the any terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion requestSublessor elects, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement DateOption shall terminate and have no further force or effect. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord If Sublessee timely delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination feeNotice, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of subleased by Sublessee upon the same terms and conditions applicable to the original Sublet Space and for a term coterminous with the original Sublet Space, except that the Basic Rent for the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in then-Prevailing Market Rent for the Expansion Space, as determined pursuant to Exhibit D, attached hereto. All work performed by Tenant in improving Promptly after the determination of the Prevailing Market Rent for the Expansion Space Space, the Parties shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion enter into an amendment to this Sublease confirming Sublessee’s sublease of the Expansion Space TI Allowance remaining upon that date (including appropriate revisions to Basic Rent, description of the “Expansion Space TI Allowance Forfeiture Date”) Sublet Space, Sublessee’s Share and the number of parking spaces available to Sublessee pursuant to this Sublease), which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, amendment shall be subject to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence consent of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option is personal to Sublessee and shall be personal inapplicable and null and void if, on the date of the Expansion Space Notice or on the date immediately preceding the date the sublease term for the Expansion Space is to Tenant and shall not be transferredcommence, encumbered(i) Sublessee has assigned its interest under this Sublease, or assigned (ii) Sublessee is not in occupancy of the entire original Sublet Space and the entirety of any First Offer Space, as defined in Section 16 above, previously subleased by Tenant Sublessee pursuant to this Sublease (or, if 16. possession of any such previously-subleased First Offer Space has not yet been delivered to Sublessee, Sublessee does not intend to occupy the entirety of such First Offer Space once possession is delivered, but instead intends to assign its interest under this Sublease with respect to such First Offer Space or sublease such First Offer Space in whole or in any manner transferred topart). Additionally, the Expansion Option shall be inapplicable and null and void if Sublessee is in default under this Sublease on the date of the Expansion Space Notice or exercised by, any subtenant of Tenanton the date immediately preceding the date the sublease term for the Expansion Space is to commence.

Appears in 1 contract

Samples: Sublease Agreement (Connetics Corp)

Option to Expand. Provided Tenant has (a) Sublandlord grants to Subtenant the option to expand the Premises to include the Building One Expansion Space (the “Expansion Option”). In order to exercise the Expansion Option, the Subtenant must notify Sublandlord in writing of its irrevocable election to exercise not received from Landlord written notice of Tenant’s default later than September 1, 2007 (the “Exercise Notice”). If Subtenant does not deliver the Exercise Notice to Sublandlord on or before September 1, 2007, the Expansion Option shall terminate. The Exercise Notice shall specify the Building One Expansion Space Delivery Date, and Sublandlord acknowledges and agrees that Subtenant shall be entitled to stagger delivery of the terms Building One Expansion Space Delivery Date for Floor One and Floor Two of the Lease Building One Expansion Space. Sublandlord shall deliver possession of the Building One Expansion Space to Subtenant on the anticipated Building One Expansion Space Delivery Date, provided that Sublandlord shall not be subject to any liability for its failure to deliver possession of the Building One Expansion Space by the anticipated Building One Expansion Space Delivery Date or any other particular date, nor shall such failure effect the validity of this First Amendment or affect the Sublease Expiration Date; provided that the Building One Expansion Space Delivery Date shall be the day that Sublandlord tenders possession of the Building One Expansion Space to Subtenant. Notwithstanding the foregoing, if the Building One Expansion Space Delivery Date does not occur within fifteen (unless such default has been cured15) days following the anticipated Building One Expansion Delivery Date, Base Rent for the Building One Expansion Space shall xxxxx following the Building One Rent Commencement Date for like number of days as shall have elapsed between the day following the fifteenth (15th) day after the anticipated Building One Expansion Delivery Date and the actual Building One Expansion Space Delivery Date; provided further that if the Building One Expansion Space Delivery Date shall not have occurred within seventy five (75) days of the anticipated Building One Expansion Space Delivery Date (the “Building One Expansion Space Delivery Deadline”), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant then Subtenant shall have the right, but not the obligation, in its sole and absolute discretion to expand immediately rescind its Exercise Notice and terminate its obligation to accept the Premises upon and subject Building One Expansion Space by providing written notice thereof to the following terms and conditions Sublandlord within fifteen (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s Notice”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (15015) days after the date Building One Expansion Space Delivery Deadline. If the Landlord’s Exercise Notice is delivered, rescinded in accordance with this Section then Tenant, at its sole Subtenant and exclusive remedy for Sublandlord shall be fully released from any further obligations and liabilities under such failure, shall have Exercise Notice and the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Building One Expansion Space. In Commencing on the event Tenant elects to exercise its termination right Building One Expansion Space Rent Commencement Date, the Monthly Base Rent, Subtenant’s Project Share, and Subtenant’s Building Share shall be modified as aforesaid, then Tenant, as a condition precedent to provided in Section 2 hereof. Upon such exercise, Subtenant shall pay to Landlord, at sublease the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Building One Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of for the Term of the Lease. In the event Tenant elects to exercise its termination right (as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid modified by Landlord in connection with this First Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenant.

Appears in 1 contract

Samples: Work Letter Agreement (Ariba Inc)

Option to Expand. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafter, Tenant shall have the right, but not the obligationat its option, to expand the Premises upon and subject to include any or all of the following terms and conditions spaces described below (each, an “Expansion Space”) as of the dates set forth below (each, an “Availability Date”), by giving Landlord notice to such effect (the “Expansion OptionNotice). The Available ) not less than three (3) months before the relevant Availability Date, or, if the relevant Expansion Space remains or becomes vacant and legally available for lease after the Availability Date, by giving Landlord notice to such effect (herein so calledthe “Expansion Notice”) is not less than three (3) months before the square footage depicted on Exhibit “B” attached hereto and made a part hereof The anticipated commencement date as to the relevant Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice Space set forth in the Expansion Notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s NoticeCommencement Date”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure , at its option, may waive the requirement for three (3) months prior notice by giving notice to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing with the Expansion Space Commencement Date (as hereinafter defined), upon the terms and conditions of the Lease (except as otherwise expressly set forth herein). Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and Tenant shall execute an amendment to the Lease adjusting those provisions of the Lease which are affected by a change in square footage of the Premises, effective as of the Expansion Space Commencement Date. Tenant shall commence paying Base Rent and Tenant’s Proportionate Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect to the Expansion Space) commencing on the Expansion Space Commencement Date. The Expansion Space Commencement Date (herein so called) shall be the date upon which Landlord delivers the Expansion Space effect to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, howeverand, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing deliverydoes so, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by ten (10) days after receipt of Tenant’s Expansion Notice. The Landlord shall deliver possession of each Expansion Space TI Allowance shall be paid to Tenant in its “AS IS” condition on the same manner Availability Date, the Expansion Space Commencement Date, or the date ten (10) days after receipt of Tenant’s Expansion Notice, as applicable. As of the Availability Date, the Expansion Space Commencement Date, or the date ten (10) days after receipt of Tenant’s Expansion Notice, as applicable, the Expansion Space shall be added to the Premises, and as of the date sixty (60) days after the Availability Date, the Expansion Space Commencement Date, or the date ten (10) days after receipt of Tenant’s Expansion Notice, as applicable, the Base Rent shall be increased by the then current Fair Market Value of the relevant Expansion Space, and Tenant’s Share shall be appropriately adjusted. The term “Fair Market Value” shall mean the then prevailing market rate per square foot for full service base rent for tenants of comparable quality for leases in comparable Class A office buildings of comparable age, use, location and quality in the Central Business District of Seattle, Washington taking into consideration the extent of the availability of space as large as the “Improvement Allowance” was contemplated Premises in the marketplace and all other economic terms then customarily prevailing in the marketplace, all as reasonably determined by Landlord, times the number of rentable square feet of space in the relevant Expansion Space. No real estate commissions shall be payable by Landlord with respect to be paid pursuant to the first (1So) sentence any of the Expansion Spaces. Space Area Availability Date Suite 1320 1,324 RSF November 1, 2008 Suite 1330 778 RSF January 1, 2009 Suite 1310 1,331 RSF August 1,2009 If an Expansion Space remains or becomes vacant and legally available for lease after the Availability Date; if Tenant gives an Expansion Notice to Landlord as to such Expansion Space, and if Landlord is then engaged in negotiations with one or more third parties to lease part or all of such Expansion Space, then Tenant shall elect to either (3di) paragraph of Section 6 of the Second Amendment. Except as provided abovegive Landlord ninety (90) days to complete such negotiations, and, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion requestcompletes such negotiations, then Tenant, as its sole and exclusive remedy, Landlord shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent such Expansion Space to such exercisethird party or parties, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, or (ii) unamortized portion lease all of such Expansion Space from Landlord on the TI Allowanceterms and conditions, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Termincluding Base Rent, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Additional Rent and five (5) monthother terms and conditions set forth in Landlord’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) last offer to such third party or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenantparties.

Appears in 1 contract

Samples: Office Lease (Pixelworks Inc)

Option to Expand. Provided Tenant has is not received from Landlord written notice then in default beyond any applicable grace period of Tenant’s default any of the terms of the Lease (unless such default has been cured), during the period of time commencing with the Second Extended Term Commencement Date and expiring on the last day of the twenty fourth (24th) month thereafteror provisions under this Lease, Tenant shall have the rightoption of leasing Suite 2323 (the “Additional Space”) in the Building when it becomes available during the Term, but not for a term commencing upon the obligationdate such Additional Space is vacated by its former tenant and exclusive possession (in broom clean condition, free of all personal property and/or debris) is delivered to expand the Premises upon and subject to the following terms and conditions Tenant (the “Expansion Option”). The Available Space (herein so called) is the square footage depicted on Exhibit “B” attached hereto and made a part hereof The Expansion Option can be exercised by Tenant delivering to Landlord one hundred fifty (150) days prior written notice (the “Expansion Space Election Notice”) of such exercise. The Expansion Space Election Notice must include the square footage (the “Expansion Space”) of the Available Space Tenant is electing to expand in to, which square footage must either be (i) all of the Available Space or (ii) the approximately 6,000 square feet of Available Space immediately adjacent to the Premises. If Tenant exercises the Expansion Option on a timely basis, then Landlord shall have a period of sixty (60) days from its receipt of the Expansion Space Election Notice to notify Tenant, in writing (the “Landlord’s NoticeCommencement Date”), as to whether. Landlord will accommodate Tenant’s expansion request or not. Landlord’s failure to notify Tenant in writing within such sixty (60) day period as to whether Landlord will accommodate Tenant’s expansion request shall be deemed Landlord’s notice, as of the last day of the sixty (60) day period, that Landlord will not accommodate Tenant’s expansion request. If Landlord notifies Tenant within such sixty (60) day period that Landlord will accommodate Tenant’s expansion request, then Tenant shall lease the Expansion Space, commencing for a term coterminous with the Expansion Space Commencement Date then-remaining Term of this Lease provided such remaining term is at least 12 months (as hereinafter definedincluding any Extension Period), upon on the terms and conditions hereof, but at an Annual Fixed Rent equal to the then current fair market rent for the Additional Space, as determined pursuant to Section 2.3.1.1 hereof as of the Lease Expansion Commencement Date. If the current fair market rent has not been determined before the Expansion Commencement Date, Tenant will pay rent for the Additional Space at the same rate as is payable for the original Premises, and an adjustment will be made when the fair market rent is determined. Such option shall be exercised by notice from Tenant to Landlord within ten (except as otherwise expressly 10) business days after Tenant shall have received notice from Landlord that the Additional Space will be available and of the expected Expansion Commencement Date. If Tenant shall fail to so exercise its option, Tenant shall have no further option with respect to the Additional Space set forth herein)in Landlord’s notice. Within five (5) days of Landlord notifying Tenant that Landlord will accommodate Tenant’s expansion request, Landlord and If Tenant shall execute an amendment exercise its option as aforesaid, then from and after the Expansion Commencement Date, the Additional Space shall be deemed to the Lease adjusting those provisions of the Lease which are affected by a change in square footage be part of the Premises, effective as of if originally demised hereunder, and the Expansion Space Commencement Date. Tenant shall commence paying Base Annual Fixed Rent and Tenant’s Proportionate Pro Rata Share of Taxes and Expenses (as well as service and utility charges and all other additional rent required by the Lease with respect hereunder shall be adjusted. Prior to the Expansion Space) commencing on the Expansion Space Commencement Date, the parties shall enter into an amendment of this Lease to confirm such expansion and such new Annual Fixed Rent and Pro Rata Share. The Expansion Space Commencement Date (herein so called) This option shall be subject to and inferior to any option heretofore given to any other tenant in the date upon which Building for such Additional Space. Landlord delivers the Expansion Space to Tenant, which date shall be no later than ninety (90) days from the date the Landlord’s Notice is delivered to Tenant; provided, however, if the Expansion Space has not been delivered within such ninety (90) day period but Landlord is using commercially reasonable efforts in pursuing delivery, then Landlord shall have such additional period of time as is necessary to deliver the Expansion Space provided Landlord continues to use commercial]y reasonable efforts in pursuing delivery, but in no event shall the delivery date exceed one- hundred fifty (150) days. Notwithstanding the provision as provided below, in such event represents that the Landlord fails to deliver the space on or before one hundred fifty (150) days after the date the Landlord’s Notice is delivered, then Tenant, at its sole and exclusive remedy for such failure, shall no other tenants have the right to terminate the Lease with thirty (30) days prior written notice if such notice is delivered prior to delivery of the Expansion Space. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (ii) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term. The Expansion Space shall be delivered in its “AS-IS” “WHERE IS” AND “WITH ALL FAULTS” condition as of the Expansion Space Commencement Date. Provided Tenant has not received from Landlord written notice of Tenant’s default of the terms of the Lease (unless such default has been cured), the Expansion Space TI Allowance (herein so called) shall be equal rights to the product of $4.00/60 multiplied by the number of months remaining in the term of the Lease after the Expansion Space Commencement Date multiplied by the number of square feet of rentable area in the Expansion Additional Space. All work performed by Tenant in improving the Expansion Space shall be done in accordance with the terms and conditions of the Lease, including, without limitation, Article 6 of the Lease and Section 6 of the Second Amendment. Any portion of the Expansion Space TI Allowance remaining upon that date (the “Expansion Space TI Allowance Forfeiture Date”) which is the earlier to occur of (i) the completion of Tenant’s improvements, if any, to the Expansion Space, and (ii) twelve (12) months from the Expansion Space Commencement Date shall be deemed forfeited by Tenant. The Expansion Space TI Allowance shall be paid to Tenant in the same manner as the “Improvement Allowance” was contemplated to be paid pursuant to the first (1So) sentence of the third (3d) paragraph of Section 6 of the Second Amendment. Except as provided above, if Tenant exercises the Expansion Option but Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request, then Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease effective as of the ninetieth (9Otj day after Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. Such termination option can be exercised by Tenant by delivering written notice to Landlord no later than thirty (30) days after the date upon which Landlord notifies (or is deemed to have notified) Tenant that Landlord will not accommodate Tenant’s expansion request. If Tenant does not terminate the Lease as foresaid, the Tenant shall continue to lease the Premises through the expiration of the Term of the Lease. In the event Tenant elects to exercise its termination right as aforesaid, then Tenant, as a condition precedent to such exercise, shall pay to Landlord, at the time Tenant delivers the written notice of termination to Landlord, as an early termination fee, the sum of the (i) unamortized portion of the leasing commissions paid by Landlord in connection with this Amendment, plus, (ii) unamortized portion of the TI Allowance, each of (i) and (H) being amortized at the Amortization Rate over months 8 — 67 of the Second Extended Term, plus, (Hi) (a) if such termination occurs during the first (13t) twelve (12) months of the Seconded Extended Term, the sum of five (5) months of Monthly Installments of Rent and five (5) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the five (5) months immediately following the effective date of the termination) or (b) if such termination occurs after the first (1st) twelve (12) months of the Seconded Extended Term, the sum of four (4) months of Monthly Installments of Rent and four (4) month’s of Tenant’s Proportionate Share of Expenses and Taxes (at the rates which would have been due for the four (4) months immediately following the effective date of the termination). The Expansion Option shall be personal to Tenant and shall not be transferred, encumbered, or assigned by Tenant or in any manner transferred to, or exercised by, any subtenant of Tenant.

Appears in 1 contract

Samples: Lease Agreement (Targanta Therapeutics Corp.)

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