Option to Extend Clause Samples
The "Option to Extend" clause grants one or both parties the right to prolong the duration of an agreement beyond its original term. Typically, this clause outlines the conditions under which the extension can be exercised, such as providing written notice within a specified timeframe or agreeing to certain terms for the extended period. Its core practical function is to provide flexibility and predictability, allowing parties to continue their relationship without renegotiating a new contract, thereby reducing uncertainty and administrative burden.
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Option to Extend. 29.35.1 Tenant is hereby granted one (1) option to extend the initial Lease Term (the “Option to Extend”) for a period of three (3) years (the “Option Term”). Upon the proper exercise of the Option to Extend, the Lease Term shall be extended for the Option Term. Tenant shall not have the right to extend the initial Lease Term if as of the date of delivery of the Option Exercise Notice (as defined below), or as of the end of the initial Lease Term, Tenant is in default under this Lease beyond any applicable notice and cure period.
(a) The Option to Extend shall be exercised by Tenant, if at all, by giving written Notice of exercise (the “Option Exercise Notice”) not more than twelve (12) months and not less than eight (8) months prior to the Expiration Date. Notwithstanding anything herein to the contrary, in the event that Tenant does not properly exercise its Option to Extend or if the Lease Term is hereafter extended by agreement of the parties and not by exercise of Tenant’s Option to Extend, then Tenant’s Option to Extend shall be null and void and of no further force or effect.
(b) Base Rent for the Option Term shall be adjusted to fair market Base Rent, as of the commencement of the Option Term, for renewals of comparable term and space in the Building and/or in similar class buildings in the submarket in which the Premises is located.
(c) The parties shall have thirty (30) days after Landlord receives the Option Exercise Notice in which to agree on fair market Base Rent during the Option Term. If the parties agree on the Base Rent for the Option Term during such thirty (30) day period, they shall immediately execute an amendment to this Lease stating the new Base Rent. If the parties are unable to agree on fair market Base Rent for the Option Term within such thirty (30) day period, the Option Exercise Notice shall be of no effect and this Lease shall expire on the Expiration Date. The parties to the Lease shall not have the right to have a court or other third party set the Base Rent or force an extension of the Lease Term.
29.35.2 The Option to Extend is granted by Landlord to the Tenant originally named in this Lease and to no other, and is personal as to such entity and shall not be exercised or assigned, voluntarily or involuntarily, by or to anyone or any other entity. Any assignment of this Option to Extend without Landlord’s prior written consent shall be null and void and, at Landlord’s election, shall constitute a default under the Lease. ...
Option to Extend. Provided that Tenant is not in default hereunder either at the date Tenant's notice of exercise is given or on the date the Additional Term (as defined below) would otherwise commence, Tenant shall have the option to extend the Term by one (1) additional period of three (3) years (the "Additional Term"). The Additional Term shall commence, if at all, on the day after the Expiration Date and shall continue through the third (3rd) anniversary of the Expiration Date specified in Section I. above (as amended pursuant to Section III. above, if applicable), subject to earlier termination as provided herein. Such option shall be exercised, if at all, by written notice to Landlord given at least nine (9) and no more than twelve (12) months prior to the Expiration Date of the initial Term. If Tenant is entitled to and gives notice in the manner and within the time set forth in this subsection A., then the Term shall be extended by the Additional Term, on all of the conditions set forth in this Lease for the original Term except as otherwise provided herein and except that:
(1) Monthly Rental for the Additional Term shall be ninety-five percent (95%) of the fair market rental rate or rates for comparable (in terms of location, utility, age, appearance, and quality) buildings located within the general geographic location of the Project, as reasonably determined by Landlord. Landlord shall, upon receipt of Tenant's notice provided for above and at least six (6) months prior to the Expiration Date, notify Tenant in writing of its determination of the fair market rental rate or rates for the Additional Term. Within ten (10) days after such notice is given, Tenant may elect by written notice to Landlord either to (a) unequivocally accept such Monthly Rental as determined by Landlord for the Additional Term or (b) terminate this Lease as of the Expiration Date. Tenant's failure to make a written election strictly in accordance with the preceding sentence shall be deemed to be an acceptance of the Monthly Rental as determined by Landlord, EXCEPT that an equivocal acceptance of the Monthly Rental shall be deemed an election by Tenant to terminate the Lease as of the Expiration Date;
(2) The provisions of Section III. and Exhibit C of this Lease shall not apply; and
(3) There shall be no further options to extend the Term.
Option to Extend. (a) Landlord hereby grants Tenant two (2) consecutive options (individually an “Option” and collectively the “Options”) to extend the Term of the Lease for an additional period of three (3) years per Option (each such period may be referred to as the “Option Term”), as to the entire Premises as it then exists, upon and subject to the terms and conditions of this Section (the “Option To Extend”), and provided that at the time of exercise of each Option Tenant must be in occupancy (and occupancy by a subtenant, licensee or other party permitted or suffered by Tenant, other than pursuant to the Maxygen Sublease, shall not satisfy such condition) of more than 75% of the Rentable Area of the entire Premises.
(b) Tenant’s election (the “Election Notice”) to exercise the Option To Extend must be given to Landlord in writing no earlier than the date which is twelve (12) months prior to the Expiration Date and no later than the date which is six (6) months prior to the Expiration Date. If Tenant either fails or elects not to exercise the Option to Extend by not timely giving its Election Notice, then the Option to Extend shall be null and void, including, if more than one Option is granted, the then applicable Option to Extend and all further Options to Extend.
(c) The Option Term (and each Option Term, if more than one Option is granted) shall commence immediately after the expiration of the preceding Term of the Lease. Tenant’s leasing of the Premises during the Option Term shall be upon and subject to the same terms and conditions contained in the Lease except that (i) Tenant shall pay the “Option Term Rent”, defined and determined in the manner set forth in the immediately following Subsection; (ii) the Security Deposit shall be increased to an amount that is the same percentage or proportion of Option Term Rent as the prior amount of Security Deposit was in relation to Rent for the Term prior to the Option Term, but in no event shall the Security Deposit be decreased; and (iii) Tenant shall accept the Premises in its “as is” condition without any obligation of Landlord to repaint, remodel, repair, improve or alter the Premises or to provide Tenant any allowance therefor, except to the extent tenants leasing space in Comparable Transactions receive an allowance pursuant to the definition of Fair Market Rental Rate defined in Exhibit B hereto, provided, however, Landlord by notice given to Tenant within thirty (30) days after final determination of the Fair Mark...
Option to Extend. Lessee shall have the option to renew and extend (the "Renewal Option") the Original Term for one (1) five (5)-year period (the "Renewal Term"), upon all of the same terms and conditions: provided, however, that Base Rent for the Renewal Term shall be calculated -------- ------- as set forth below. Lessee may exercise its Renewal Option by giving written notice of exercise (the "Notice") of the Renewal Option to Lessor at least ninety (90) days prior to the expiration of the Original Term. If Lessee timely exercises the Renewal Option, the initial Base Rent shall be the then-current fair market rental value of the Premises (the "Rental Value"). The Rental Value shall be determined by the parties' mutual agreement or by a single neutral qualified MAI appraiser, with a minimum of five (5) years experience appraising commercial lease space in South Orange County, California (the "Appraiser"). If Lessor and Lessee have not previously agreed upon the Rental Value, the Appraiser shall be selected by mutual agreement between Lessor and Lessee within thirty (30) days following the Notice. If no such selection is made prior to the expiration of such thirty (30)-day period, then within ten (10) days after receipt of a written request by either party for such selection, the Appraiser shall be selected by two (2) qualified MAI appraisers, one selected by Lessor and one selected by Lessee. If one of the parties fails to select such an appraiser within ten (10) days after receipt of a written request to do so, then the appraiser selected by the other party shall serve as the Appraiser. The Appraiser shall proceed as rapidly as is reasonably feasible to complete the appraisal, preferably not later than thirty (30) days after the Appraiser is selected. The Rental Value shall be based on lease space comparable to the Premises in size and tenant improvements located in similar class buildings in the immediate general vicinity of the Premises. On each anniversary of the commencement of the Renewal Term, the initial Base Rent for the Renewal Term shall be increased by an amount equal to four percent (4%) of the Base Rent then in effect."
Option to Extend. Provided that Tenant is not then in Default (as defined in Section 18 below) hereunder, Landlord hereby grants to Tenant an option (the AOption@) to extend the Term of this Lease for one (1) additional five (5) year period (the "Option Period"), commencing upon the expiration of the Term of this Lease, and provided that Tenant complies with all of the terms and conditions set forth in this paragraph. Tenant shall exercise each Option by delivering to Landlord, on a date that is prior to the date upon which the Option Period would commence (if such option is exercised) by at least nine (9) but not more than twelve (12) months, a written notice (ATenant=s Notice@) of the exercise of the Option to extend this Lease for the Option Period, time being of the essence. If Landlord fails to receive Tenant=s Notice within the time period provided, the Option shall automatically expire and be of no further force or effect. All of the terms and conditions of this Lease shall apply during the Option Period, except that the initial Monthly Rent during the Option Period shall be equal to the greater of: (i) the “Prevailing Market Rent” (as defined in Paragraph 4.2 below) for the Premises as of six (6) months prior to the commencement of the Option Period or (ii) the Monthly Rent calculated as provided in Paragraph 4.1(c) below, and shall be adjusted annually thereafter as provided in Paragraph 4.1(c) below. As a further condition to Tenant=s exercise of the Option, any prior tenant that has not been expressly released from liability under this Lease, and any guarantor of Tenant's performance hereunder shall expressly reaffirm in writing the extension of their liability with respect to this Lease for the Option Period.
Option to Extend. Successful Respondent agrees that DIR may require continued performance under this Contract at the rates specified in this Contact following the expiration of the Initial Term or any Renewal Term. This option may be exercised more than once, but the total extension of performance hereunder shall not exceed ninety (90) calendar days. Such extension of services shall be subject to the requirements of the Contract, with the sole and limited exception that the original date of termination shall be extended pursuant to this provision. DIR may exercise this option upon thirty (30) calendar days written notice to the Successful Respondent.
Option to Extend. The Department of General Services reserves the right, upon notice to the Contractor, to extend the Contract or any part of the Contract for up to three (3) months upon the same terms and conditions. This will be utilized to prevent a lapse in Contract coverage and only for the time necessary, up to three (3) months, to enter into a new contract.
Option to Extend. So long as no Event of Default has occurred and is continuing hereunder, and upon written notice no earlier than twelve (12) months and no later than ninety (90) days prior to the expiration of the Initial Term of a Summary Equipment Schedule, Lessee will have the right to extend the Initial Term of such Summary Equipment Schedule for a period of one (1) year. In such event, the rent to be paid during said extended period shall be mutually agreed upon and if the parties cannot mutually agree, then the Summary Equipment Schedule shall continue in full force and effect pursuant to the existing terms and conditions until terminated in accordance with its terms. The Summary Equipment Schedule will continue in effect following said extended period until terminated by either party upon not less than ninety (90) days prior written notice, which notice shall be effective as of the date of receipt.
Option to Extend. Provided Tenant is not in default in its obligations hereunder beyond any applicable cure period, Tenant shall have the option to extend this Lease for one additional successive term (hereinafter referred to, as applicable, as the “Extended Term”) commencing immediately upon the expiration of the initial Term hereof and continuing for a period of five (5) years, provided that Tenant proceeds strictly in accordance with the provisions of this Article 35. On or before the date that is one hundred twenty (120) prior to the Expiration Date for the Term (the “Notice Date”), Tenant shall advise Landlord in writing that Tenant wishes to extend the term of this Lease (hereinafter referred to as “Tenant’s Extension Notice”). If at the time Landlord receives Tenant’s Extension Notice this Lease is in full force and effect without default on the part of the Tenant beyond any applicable cure period, then, during the next thirty (30) days, Landlord shall notify Tenant in writing of the Base Rent pursuant to Article 3 of the Lease which shall be due for the Extended Term. The Base Rent specified by Landlord shall be equal to the greater of: (a) the Base Rent scheduled to be paid for the last year of the Term without giving effect to any partial or complete abatements of Base Rent (the “Rent Notice”); or (b) ninety five percent (95%) Landlord’s projected fair market Base Rent as of the commencement of the Extended Term, for comparable space in comparable buildings in New Haven (the “FMV Rent Notice”).
Option to Extend. Tenant is granted an option to extend the term of the Lease Agreement for one (1) additional three (3) year period. The extensions described in this Addendum are personal to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as part of the Lease. Such extension shall be on the same terms and conditions as provided in the Lease Agreement with the exception of Base Monthly Rent. The initial Base Monthly Rent for the extension period shall be equal to the fair market rental for the Leased Premises as of the date six (6) months prior to the commencement of the applicable expiration period or on or about the date of the final determination by the arbitrators (set forth below), whichever is higher; however, the initial Base Monthly Rent for the applicable extension period shall not be less than the Base Monthly Rent plus three percent (3%) as of the expiration of the initial Lease Term. The fair market rental shall be determined (a) without consideration for the particular use of the Leased Premises by Tenant but shall be for the permitted use of the Lease Premises, (b) shall take into consideration all Leasehold Improvements that are the property of Landlord or that would become the property of Landlord upon expiration or termination of the Lease (upon Landlord’s election for the same), (c) shall take into consideration any concessions that may then be offered for similar properties (i.e. free rent, tenant improvement allowances, etc.), and (d) without discount for the fact that no leasing commissions shall be paid. The Base Monthly Rent for each extension period shall be subject to three percent (3%) annual increases. It shall be a condition precedent to the exercise of this option that Tenant shall not be in default under the Lease Agreement at the time of exercise of the option for the applicable extension period. If Tenant elects to exercise this option, Tenant shall exercise said option only by written notice actually received by Landlord not less than three hundred sixty-five (365) days prior to the expiration date of the initial Lease Term. The burden of actual delivery of such notice is on the Tenant. In the event Tenant exercises the option hereunder, Tenant shall, within a period of one hundred fifty (150) days and one hundred eighty (180) days prior to the expiration date of the initial Lease Term, deliver to Landlord, Tenant’s opinion of the fair market rental value, as set forth above, and Tenant’s support for such figur...