Common use of Option to Extend Clause in Contracts

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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due.

Appears in 3 contracts

Samples: Lease Agreement (Dermira, Inc.), Lease Agreement (Dermira, Inc.), Lease Agreement (Dermira, Inc.)

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Option to Extend. Tenant is granted an shall have one (1) option to extend the term of this Lease for two (2) years at market rate (“Option Term”). Tenant shall give written notice to landlord no later than December 31, 2014. Option Term Rent: Tenant shall pay 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 following rent for the Leased Premises as of the date six (6) months prior Premises: Landlord and Tenant will attempt 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 agree upon a Fair Market Rental Value 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 satisfactory 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the both parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selectionTenant’s exercise of its option. If no agreement can be reached by the parties during that period, they shall, within fifteen (15) days thereafter, select a third agent with then the qualifications, referred to above, and if they do not so agree on a third agent, Base Monthly Rental for the third arbitrator Option Term shall be appointed determined by the presiding judge Fair Market Rental Value of the Superior Court in the County in which the Leased Premises are locatedas determined by comparison to premises of similar size located in or near the City of Fort Xxxxxxx, Colorado, having comparable development, use and density capability and such other characteristics as may be deemed relevant by a subject appraiser whose selection is outlined herein. Landlord shall select an independent MAI real estate appraiser with at least ten (10) years experience in appraising commercial real property in the City of Fort Xxxxxxx, Colorado (a “Qualified Appraiser”). The Qualified Appraiser selected by the Landlord shall be referred to as the “Landlord’s Appraiser”. Within thirty (30) days of being selected by the Landlord, the Landlord’s Appraiser shall determine the Fair Market Rental Value of the Leased Premises in accordance with the appraisal standards set forth above and shall immediately give the Landlord and the Tenant written notification of his determination. If the Tenant agrees with the Landlord’s Appraiser’s determination of the Fair Market Rental Value, the new Base Monthly Rental shall become effective beginning with the first month of the Option Term. If the Tenant does not agree with the Landlord’s Appraiser’s determination of Fair Market Rental Value, the Tenant shall be required have the right to petition such Court select its own Qualified Appraiser to determine the Fair Market Rental Value. If the Tenant does elect to appoint a Qualified Appraiser (the “Tenant’s Appraiser”), the Tenant shall select the Tenant’s Appraiser within thirty (30) business days after receiving the Landlord’s Appraiser’s determination of the Fair Market Rental Value. The Tenant’s Appraiser shall make his own determination of the Fair Market Rental Value in accordance with the provisions set forth above, within 30 business days of being selected by the Tenant and shall immediately give the Landlord and the Tenant written notice of his determination. If the Fair Market Rental Value as determined by the Landlord’s Appraiser and the Tenant’s Appraiser, respectively, differ by an amount which is equal to or less than 5% of the Fair Market Rental Value determined by the Landlord’s Appraiser, then the arithmetic mean of the two Fair Market Rental Values shall constitute the Fair Market Rental Value used to calculate the new Base Monthly Rental which will in effect for the Option Term. If the Fair Market Rental Value determined by the Landlord’s Appraiser and the Tenant’s Appraiser, respectively, differ by an amount which is greater than 5% then, within ten (10) business days of after the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice Appraiser and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Appraiser’s determination of the Fair Market Rental Value, the Landlord’s value or Appraiser and the Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot Appraiser shall agree upon the same, as set forth above, the and select a third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, Qualified Appraiser who shall be paid by independent of and have no prior or existing affiliation or relationship with either the TenantLandlord or the Tenant (the “Independent Appraiser”). The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within Within ten (10) business days of being appointed, the Independent Appraiser shall, after exercising his best professional judgment, choose either the Landlord’s Appraiser’s or the Tenant’s Appraiser’s determination of Fair Market Rental Value which the Independent Appraiser believes, in his best professional judgment, best represents the Fair Market Rental Value at that point in time. Upon making such a selection, the Independent Appraiser shall immediately give the Landlord and the Tenant written notice of this selection of the Fair Market Rental Value. The Fair Market Rental Value selected by the Independent Appraiser shall be used to calculate the new Base Monthly Rent for Rental which will be in effect during the applicable extension period. Any surplus Extension Option, and such selection by the Independent Appraiser shall be a credit for Base Monthly Rent to become thereafter duebinding and conclusive upon the Landlord and the Tenant. All appraisal fees required hereunder shall be shared equally by the Landlord and the Tenant.

Appears in 2 contracts

Samples: Lease Amendment (Advanced Energy Industries Inc), Lease Amendment (Advanced Energy Industries Inc)

Option to Extend. Tenant Provided that Lessee is granted an option not in default under the terms of the Lease, Lessee shall have two separate and successive options to extend the Lease term of under the same terms and conditions contained in the Lease Agreement and this First Addendum (including annual Base Rent increases of Two and one-half percent (2.5%)) for one (1) additional successive three (3) year period. The extensions described in this Addendum are personal to Tenant and may not be assigned, voluntarily or involuntarily, separate periods 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 either the expiration date of the initial Lease term or, if the first option has been exercised, of the first extended term (“Renewal Term”). The burden option must be exercised, if at all, by delivering written notice to Lessor no later than 180 days before the end of actual delivery the Lease term or the first extended term Within 30 days after receiving Lessee’s notice of such notice is exercise, Lessor shall compute the rent for the Renewal Term which shall be the Fair Market Rent (‘‘FMR”) for the Premises on a gross rent basis as provided below. Lessor shall then notify Lessee in writing of the Tenantresulting amount. In FMR for the event Tenant exercises Renewal Term shall mean the option hereundermonthly gross rent for the Premises, Tenant shall, within based on tenancies (for a period of one hundred fifty (150) days and one hundred eighty (180) days prior term comparable to the expiration date Renewal Term) covering industrial space of comparable size and quality to the Premises in comparable buildings in comparable locations in the same city as the Premises, taking into account the condition of the initial Lease TermPremises in its then “as is” condition. If Lessor and Lessee have not agreed on an FMR by 60 days after Lessee’s notice of exercise, deliver to Landlordthen each party shall appoint an appraiser who shall be an independent, Tenant’s opinion of disinterested person knowledgeable in rental rates and lease transactions in the fair market rental value, same city as set forth above, and Tenant’s support for such figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, The appraisers shall be either real estate appraisers or consultants who have at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five 10 years commercial continuous experience in the City business of appraising or are knowledgeable in which rental rates and lease transactions in the Leased Premises are located involving properties similar to same city as the Property under this LeasePremises. Tenant The two appraisers appointed shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select appoint a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court appraiser within ten (10) 10 days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent last appraiser. The three appraiser shall meet and if they cannot determine FMR on or before 90 days after the date of Lessee’s notice of exercise and a decision of the three appraisers shall be controlling. In the event that the three appraisers are unable to agree upon the same, as set forth abovebase rent within the stipulated period of time, the third agent individual findings of the three (3) appraisers shall select be added together and their total divided by three; the fair market rental value as determined resulting quotient shall be the base rent for the Premises during the remaining term under consideration. Should any of the individual appraisals is more than 15% above or below the middle appraisal, it shall not be considered in determining the FMR. If only one appraisal is disregarded, then the other two appraisals shall be added together and their total divided by either Landlord’s agent or Tenant’s agent which most closely reflects two and the fair market rental value as determined by resulting quotient shall be the third agentbase rent. If both the high and low appraisals are disregarded, then the middle appraisal shall be the base rent. In no event, however, shall the base monthly rent for the extended term be less than the monthly rent at the end of the initial term. Each party shall pay his own agent and bear one-half the cost of the appraisals. The third agent, if appraiser shall be an unrelated entity that has not acted in any capacity for either the Lessor or the Lessee. Should arbitration become necessary, Lessor and Lessee shall be paid by also equally bear the Tenant. The determination shall be signed by both parties and shall thereupon become a part costs of the Lease Agreementarbitration. If Once the Base Monthly Rent parties agree on the monthly gross rent for the applicable extension period has not been determined as of extended term they shall immediately execute an amendment to the commencement of Lease stating the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter duenew monthly gross rent.

Appears in 1 contract

Samples: Fox Factory Holding Corp

Option to Extend. Provided Tenant is granted an option not in default under any provision of the Lease, Landlord hereby grants to Tenant two one year options to extend the term of this Lease for an additional term when 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 assignedexisting term expires, 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 Termin this paragraph. 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 giving Landlord written notice actually received by Landlord of its intention not less than three hundred sixty-five sixty (36560) days prior to the expiration of the existing term of this Lease. If this Option is exercised, the Base Monthly Rent for the Premises shall equal the then current fair market monthly rent (“Fair Market Rent”), which shall not be less than $19,860.00 per month for the Premises as of the commencement 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premisesapplicable extended term. If the rental for parties cannot agree on the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty amount of the “Fair Market Rent” and the annual adjustment to such Fair Market Rent within sixty (12060) days prior to the commencement of said extension period (“Initial Meeting Period”)such extended term, then the determination Fair Market Rent and the annual adjustment thereto shall be determined by an appraisal. All other terms and conditions contained in the Lease and this Addendum, as the same may be amended from time to time by the parties in accordance with the provisions of the rental Lease, shall be promptly submitted to arbitration. Tenant remain in full force and effect and shall select, within fifteen (15) days of apply during the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension Option term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as for the Premises needs to be determined by appraisal, Landlord and Tenant shall either Landlord’s agent agree to select one real estate appraiser or Tenant’s agent which most closely reflects three real estate appraisers. Any real estate appraiser selected shall be a member of the fair market American Institute of Real Estate Appraisers, shall have at least five (5) years experience appraising commercial space located in the vicinity of the Premises, and shall act in accordance with the rules of the American Institute of Real Estate Appraisers. The Fair Market Rent shall be based on rental value of space of the same age, construction, size and location as determined by the third agentPremises with the improvements installed therein. Each If only one appraiser is selected, then each party shall pay his own agent one-half of the fees and expenses of that appraiser. If proceeding with three appraisers, each party shall select one appraiser, who in turn shall select the cost third appraiser. If three appraisers are selected, each party shall bear the fees and expenses of the appraiser it selects and one-half of the fees and expenses of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueappraiser.

Appears in 1 contract

Samples: Lease (Adeza Biomedical Corp)

Option to Extend. Provided that Tenant is granted an option still occupying the Premises and is not then in default beyond any applicable cure period pursuant to the Lease, Tenant may elect to extend the term of the Lease Agreement for one (1) additional three five (35) year period. The extensions described in this Addendum are personal to Tenant and may not be assignedperiod (the “Extension Term”), voluntarily or involuntarily, separate from or as part by giving Landlord notice 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 such election no later than twelve (612) months prior to the commencement Term Expiration Date. Any extension shall be upon the terms, covenants, and conditions contained in this Lease except that Tenant shall have no further right to extend the Lease Term and except that the Base Rent for the Extension Term shall be at fair market rent for comparable space in comparable properties in the greater Lowell area and not less than the then current Base Rent. If Landlord and Tenant are unable to agree on the amount of such fair market rent by the applicable expiration period or on or about date that is thirty (30) days after the date of Tenant’s election notice based on rental rates and terms for comparable space in the final determination by greater Lowell area, then Landlord shall promptly specify in writing the arbitrators rent (set forth below), whichever the “Landlord’s Rental Rate”) at which Landlord is higher; however, willing to lease the initial Base Monthly Rent Premises for the applicable extension period Extension Term and Tenant shall not be less than promptly specify in writing the Base Monthly Rent plus three percent rent (3%the “Tenant’s Rental Rate”) as of the expiration of the initial Lease Term. The fair market rental shall be determined (a) without consideration which Tenant is willing to pay for the particular use of the Leased Premises by Tenant but shall be for the permitted use of Extension Term and 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 amount of the fair market rental value, as set forth above, rent shall be established by appraisal in the following manner. The Landlord and Tenant’s support for such figure (i.e. comparable lease information). Landlord Tenant shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value each appoint one appraiser and the parties two appraisers so appointed shall thereafter promptly meet and endeavor to agree upon determine the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, rent within thirty (30) days of their selectionTenant’s election notice. If such appraisers are unable to agree on the amount of such fair market rent within such thirty- (30) day period, they shall, within fifteen (15) days thereafter, select shall appoint a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court appraiser within ten (10) days of the expiration date of the time for the selection of the third agentsuch period, who shall be instructed to select, as set forth above, requesting between the earliest possible determination rents chosen by the Court. At Landlord’s electiontwo appraisers, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value rent that is closest to the third appraiser’s estimate of fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the rent. The fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects rent shall be the fair market rental value as determined amount so selected by the third agentappraiser and shall be conclusive on the Landlord and Tenant. Each party shall pay his own agent bear the cost of its appraiser, and the cost of the third agent, if necessary, appraiser shall be paid by split equally between parties; provided that if the rental rate as so determined is equal to or greater than the Landlord’s Rental Rate, then Tenant shall pay the entire cost of all appraisers and if such rate as so determined is equal to or less than Tenant’s Rental Rate, then Landlord shall pay the entire cost of all appraisers. The determination shall be signed by both parties and shall thereupon become a part of Until such time as the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension periodfair market rent is so determined, Tenant shall continue to pay an estimated Base Monthly Rent at the rate of One Hundred Fifteen percent (115%) $205,530.00 per annum in monthly installments of $17,127.50 with appropriate adjustments once the Base Monthly Rent due for the last month prior to commencement of the applicable extension periodfair market rent is determined. Any deficiency The third appraiser’s estimate shall be payable based on the data supplied and used by Tenant to Landlord within ten (10) days of the determination of original two appraisers and the Base Monthly Rent for findings made by the applicable extension period. Any surplus third appraiser shall be a credit for Base Monthly Rent to become thereafter dueset forth in writing.

Appears in 1 contract

Samples: Lease (Metabolix, Inc.)

Option to Extend. Tenant is granted an Lessee shall have one (1) five (5) year option to extend the term Lease at one hundred percent (100%) of the then fair market rent. In no event shall rent in the option period be less than the rent paid in the last year of the initial term. Said option to extend shall not be exercised by Lessee for the purpose of making a profit on a sublease. Assignment of the Lease Agreement for one or subletting of the Premises or any portion thereof by Lessee during the option extension period shall be subject to the prior written consent of Lessor and shall be subject to the provisions of Paragraph 12 as supplemented by this Paragraph 51. Assignment of the Lease or subletting of the Premises during the option extension period shall also be subject to the prior written approval of the Ground Lessor in accordance with the Ground Lease. Lessor may condition Lessor's consent to an assignment or subletting to Lessor receiving fifty percent (150%) additional three (3) year period. The extensions described in this Addendum are personal of the bogus rent, if any, after deducting only a standard leasing commission payable by Lessee which shall be subject to Tenant and may Lessor's prior written approval, which approval shall not be assigned, voluntarily unreasonably withheld. Any assignment or involuntarily, separate from sublease to which Lessor and the Ground Lessor consent in the first instance shall expressly prohibit any further assignment or as part subletting of all or any portion of the Premises by such initial assignee or sublessee. At Lessor's option, Lessor may terminate the Lease and recapture the Premises upon receipt by Lessor of a request from Lessee for Lessor's consent to an assignment or subletting of all or any portion of the Premises. If Lessor elects to terminate this Lease. Such extension , (a) as of the effective date of termination, Lessor and Lessee shall be on released and discharged from any liability or obligation to the other under this Lease which accrues thereafter, and (b) Lessee agrees that Lessor may enter into a direct lease with such proposed assignee or sublessee without any obligation or liability to Lessee. Lessee may exercise the option to extend by giving written notice of exercise to Lessor at least six (6) months but not more than twelve (12) months prior to the expiration of the initial Lease term, provided that if Lessee is currently in default under the Lease at the time of exercise of the option or at the commencement date of the option extension period, such notice shall be void and of no force or effect and the option shall lapse. If exercised, the option extension period shall be upon the same terms and conditions as provided in the initial Lease Agreement with term, except that (i) the exception initial monthly Base Rent and rental adjustments during the option period shall be one hundred percent (100%) of the then fair market rent as agreed upon by the parties within thirty (30) days after the exercise of the option or if the parties are unable to agree, then by appraisal, but the initial monthly Base Rent shall not be less than the monthly Base Rent payable during the last twelve (12) months of the initial Lease term and the periodic adjustments of Base Monthly Rent. The initial Rent shall not be less than the annual percentage adjustments of Base Monthly Rent for the extension period initial term as provided in Paragraph 50(a); and (ii) there shall be equal no additional option to extend. If Lessee does not exercise the fair market rental for the Leased Premises as of the date option to extend at least 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 term, the option shall be determined (a) without consideration for the particular use lapse, time being 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, etcessence.), 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due.

Appears in 1 contract

Samples: Lease Agreement (Omnicell Com /Ca/)

Option to Extend. Tenant A Lessee is granted an one option to extend the term of the Lease Agreement this Lease, such option to be for one (1) additional three (3) a 1 - 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 contained herein, except that the monthly base rental rate provided for in the Paragraph(s) 4(a) of this 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 then market rate. Lessee shall advise Lessor of exercise of the option for the applicable extension period. If Tenant elects its intent to exercise this option, Tenant shall exercise said option only by written notice actually received by Landlord in writing, not less more than three hundred sixty-five (365) 210 nor than 180 days prior to the expiration date end of the initial Lease Termexpiring term. If Lessee fails to exercise this option within the time required, the option shall be void. B The burden of actual delivery of such parties shall have thirty (30) days after Lessor receives the option notice is in which to agree 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the monthly base rental for the applicable extension period has not been agreed uponextended term during that period, as set forth abovethey shall immediately complete and sign the agreement scheduled below. C If the parties are unable to agree on the monthly base rental for the extended term within that period, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the monthly base rental shall be promptly submitted to arbitrationdetermined by arbitration in accordance with the Real Estate Valuation Arbitration Rules of the American Arbitration Association. Tenant Lessee shall select, be responsible for initiating the arbitration proceeding and advancing 1/2 the administration fee charged by the American Arbitration Association within fifteen (15) 15 days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) 30-day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen described in Paragraph (15B) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant Lessee fails to so nominate an agent and provide the notice, as set forth aboveinitiate such arbitration within that period, the Landlord’s reasonable opinion of value option shall be void, and the Lease shall expire at the end of the term, that date being April 30, 2001. D In setting the fair market monthly base rental value for the applicable extension extended term, the arbitrator shall consider what monthly rents are being paid and what rent escalation provisions are being included on recently executed leases for similar terms, for spaces which are reasonably similar to the premise, with similar amenities and in the general neighborhood of the premises, but shall exclude the value of all tenant improvements made by Lessee to the Premises at Lessee's cost. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a E Upon receiving written notice setting forth that Tenant’s agent shall determine of the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set arbitrator's determination of the fair market monthly rental, the parties shall complete and sign the agreement scheduled below stating the base monthly rental at that rate. If Lessor shall credit Lessee, against the two agents do not agree upon next rental payment due, an amount equal to one- half the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to aboveadministrative fee for such arbitration paid by Lessee, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agentarbitrator's fee, if necessaryany, shall be paid one-half by each party. F Upon execution of this option, the Tenant. The determination term shall be signed by both extended to April 30, 2002 To be completed when the Option is exercised: By signing below the parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due.acknowledge:

Appears in 1 contract

Samples: Copper Mountain Networks Inc

Option to Extend. Tenant is granted an Lessee shall have the option to extend the term of this Lease ("Option") on ALL OF the Lease Agreement terms, conditions, covenants and provisions, contained in this Lease, except for one the Monthly Rent, for two (12) additional three terms of five (35) year periodyears following the Termination Date. Each Option Term shall commence on the day immediately following the Termination Date. Lessee may exercise each Option by giving written notice of exercise of the Option to Lessor at least one hundred twenty (120) days before the Termination Date. If Lessee is in default on the date of giving the Option Notice, the Option Notice shall be totally ineffective. If the Option Notice is not given, the Option shall automatically expire and be of no further force or effect. The extensions described Option granted to Lessee in this Addendum are Lease is personal to Tenant the original Lessee and may be exercised only by the original Lessee while physically occupying the Premises. The Option may not be exercised or assigned, voluntarily or involuntarily, separate from by or as part to any person or entity other than Lessee. Any consent by Lessor to an assignment of the LeaseLease or a sublet of the Premises, or any portion thereof, shall not be construed as a waiver of this prohibition. 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 during each Option period shall be equal to the fair market rental for the Leased Premises at Fair Market Value, 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 determined by the arbitrators (set forth below)Lessor, 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 Lessor receives 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 TenantOption Notice. In the event Tenant exercises the option hereunderLessor and Lessee cannot agree on the new base rent, Tenant shallthe matter shall be submitted for decision to a panel of three arbitrators. Lessor and Lessee shall each appoint one arbitrator who shall by profession be a licensed commercial real estate broker or an NAI real estate appraiser, and who shall be familiar with the premises Building and have been active in the brokering or appraisal of properties in an area within a period three (3) mile radius of one hundred fifty the Premises. Each such arbitrator shall be appointed within fifteen (15015) days and one hundred eighty (180) days prior after Lessee's notice to the expiration date Lessor of the initial Lease Term, deliver its election to Landlord, Tenant’s opinion of the fair market rental value, as set forth above, and Tenant’s support for such figure (i.e. comparable lease information)have New Base Rent determined by this arbitration procedure. Landlord The two arbitrators so appointed shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration date of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list appointment of the agents qualificationslast appointed arbitrator agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of the initial two arbitrators. Failing such agreement, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord either Lessor or Lessee shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, the right to nominate it’s own agent. Thereafter, said agents shall meet petition for the purpose appointment of determining the rental, as set forth above, for third arbitrator by the applicable extension periodPresiding Judge of the Superior Court of the County of San Diego. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value The three arbitrators shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent arbitrator reach a decision as to whether the parties shall use Lessor's or Lessee's proposed New Base Rent, and if they cannot agree shall notify Lessor and Lessee therefore. The decision of the majority of the three arbitrators shall be binding upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agentLessor and Lessee. Each party shall pay his own agent and the The cost of the third agent, if necessary, arbitration shall be paid by Lessor and Lessee equally. In no event, shall the Tenantmonthly rent for the Option term be less than a four percent (4%) increase over the previous year's monthly rent. The determination shall be signed by both parties and shall thereupon become a part Upon agreement to the terms of the Option, Lessor shall immediately execute an Extension of Lease Agreement. If All rights of Lessee with respect to the Base Option shall terminate and be of no further force or effect if Lessor and Lessee do not come to agreement on the Option. Neither Lessor nor Lessee shall have the right to have a court or third party set the Monthly Rent Rent. EXHIBIT "A" SITE PLAN THIS EXHIBIT IS ATTACHED TO AND MADE PART OF THE LEASE DATED JULY 17, 1998 BY AND BETWEEN: PACIFIC GULF PROPERTIES, INC., a Maryland corporation as LESSOR and NATURAL ALTERNATIVES INTERNATIONAL, INC., a Delaware corporation as LESSEE, for the applicable extension period has not been determined premises located at 1215 Xxxx Xxxxxx Xxxxx, Xxxxxx X/X/X, Xxxxx, XX 00000. VISTA DISTRIBUTION CENTER [SITE PLAN] EXHIBIT "B" RULES & REGULATIONS THIS EXHIBIT IS ATTACHED TO AND MADE PART OF THE LEASE dated July 17, 1998, BY AND BETWEEN: PACIFIC GULF PROPERTIES, INC., a Maryland corporation as of the commencement of the applicable extension periodLessor and NATURAL ALTERNATIVES INTERNATIONAL, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due INC., a Delaware corporation as LESSEE, for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter duepremises located at 1215 Xxxx Xxxxxx Xx., Xxxxxx X/X/X, Xxxxx, XX 00000.

Appears in 1 contract

Samples: Natural Alternatives International Inc

Option to Extend. Tenant is granted an In the event and on the condition that Lessee has timely performed each and every, all and singular of the terms, covenants, and conditions of this Lease on Lessee's part to be performed, then Lessor hereby grants to Lessee the option to extend the term of the this Lease Agreement for one two (12) additional three consecutive five (35) year periodperiods commencing when the prior term expires upon each and all of the following terms and conditions: Lessee give to Lessor, and Lessor actually receives, on a date which is prior to the date that option period would commence (if exercised) by at least four (4) months and not more that seven (7) months, a written notice of the exercise of the option to extend this Lease for said additional term, time being of the essence. If said notification of the exercise of said option is not so given and received, this option shall automatically expire. All of the terms and conditions of this Lease except where specifically modified by this option shall apply. The extensions described initial base rent for the option period shall be ninety-five percent (95%) of the prevailing market rate at the time of commencement of the option period, for comparable office space within the general market area. The term 'fair market rental rate' as used in this Addendum are personal to Tenant shall mean the annual amount per rentable square foot, projected during the relevant period, that a willing, comparable, non-equity tenant (excluding sublease and assignment transactions) would pay, and willing, comparable landlord of a comparable quality office building located in the Anaheim Stadium area ('Comparison Area') would accept, at arm's length (what Lessor is accepting in current transactions for the building may not be assignedconsidered), voluntarily or involuntarilyfor space comparable in size, separate from or quality and floor height as part the lease area at issue taking into account the age, quality and layout of the Leaseexisting improvements in the leased area at issue and taking in account items that professional real estate brokers customarily consider, including but not limited to, rental rates, office space availability, tenant size, tenant improvement allowances, operating expenses and allowance, parking charges and any other lease economics than being considered by Lessor or the lessors of such similar office buildings. Such extension Lessor's determination of fair market rental rate shall be on delivered to Lessee in writing not later than thirty (30) days following Lessor's receipt of Lessee's Extension Notice. Lessee will have thirty (30) days ('Lessee's Review Period') after receipt of Lessor's notice of the same terms and conditions as provided fair market rental rate within which to accept such fair market rental rate or to object thereto in the Lease Agreement with the exception of Base Monthly Rentwriting. The initial Base Monthly Rent for the extension period shall be equal Lessee's failure to object to the fair market rental for the Leased Premises as of the date six (6) months prior rate submitted by Lessor in writing within Lessee's Review Period will conclusively be deemed Lessee's approval and acceptance thereof. if Lessee objects 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 valuerate submitted by Lessor within Lessee's Review Period, as set forth above, then Lessor and Tenant’s support for such figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor lessee will attempt in good faith to agree upon the such fair market rental of the Leased Premisesrate using their best good faith efforts. If the if Lessor and Lessee fail to reach agreement on such fair market rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty rate with fifteen (12015) days prior to following the commencement expiration of said extension period Lessee's Review Period (“Initial Meeting Period”the 'Outside Agreement Date'), then the each party's determination of the rental shall will be promptly submitted to arbitrationappraisal in accordance with the provisions below. Tenant (i) Lessor and Lessee shall selecteach appoint one independent, unaffiliated appraiser who shall by profession be a real estate broker who has been active over the five (5) year period ending on the date of such appointment in the leasing of mid-rise office space in the Comparison Area. Each such appraiser will be appointed within thirty (30) days after the Outside Agreement Date. (ii) The two (2) appraisers so appointed will within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot last appointed appraiser agree upon and appoint a third appraiser who shall be qualified under the same, as same criteria set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost herein above for qualification of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent initial two (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due.2)

Appears in 1 contract

Samples: Fee Agreement (Orange National Bancorp)

Option to Extend. Tenant is granted an option to extend (the “Extension Option”) the term of the Lease Agreement as to the entire Premises being leased by Tenant at the time the Extension Option is exercised for one (1) additional three period of five (35) year periodyears (the “Option Term”) from the First Extended Expiration Date. The extensions Extension Option described in this Addendum are is 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 the Basic Monthly Rent, which shall be determined pursuant to this Addendum. The initial Base Basic 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 higherOption Term; however, the initial Base Basic Monthly Rent for the applicable extension period Option Term shall not be less than the Base Basic Monthly Rent for the month immediately prior to the First Extended Expiration Date 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 Tenant 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 Basic Monthly Rent for each extension period the Option Term shall be subject to three percent (3%) annual increases. It shall be a condition precedent to the exercise of this option the Extension Option that Tenant shall not be in default under the Lease Agreement no Event of Default exists at the time of exercise of the option for the applicable extension periodExtension Option is exercised. If Tenant elects to exercise this optionExtension Option, Tenant shall exercise said option the Extension Option only by written notice actually received by (the “Option Notice”) to Landlord not less than three hundred sixty-five (365) days prior to the expiration date of the initial Lease Termon or before December 31, 2020. The burden of actual delivery of such notice the Option Notice is on the Tenant. In the event Tenant exercises the option Extension 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 TermFirst Extended Expiration Date, deliver to Landlord, Landlord written notice of Tenant’s opinion of the fair market rental value, as set forth above, and Tenant’s support for such figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period Option Term has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period First Extended Expiration Date (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s its own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension termOption Term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Basic Monthly Rent for the applicable extension period Option Term has not been determined as of by the commencement of the applicable extension periodFirst Extended Expiration Date, Tenant shall pay an estimated Base Basic Monthly Rent of One Hundred Fifteen percent (115%) of the Base Basic Monthly Rent due for the Premises then leased by Tenant for the last month prior to commencement of the applicable extension periodExtended Term. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Basic Monthly Rent for the applicable extension periodOption Term. Any surplus shall be a credit for Base Basic Monthly Rent to become thereafter due.

Appears in 1 contract

Samples: To Lease (Dermira, Inc.)

Option to Extend. Tenant is granted an shall have the option to extend the term of initial Term as to the Lease Agreement entire Premises for one (1) additional three period of ten (310) year period. The extensions described in this Addendum are personal to Tenant and may not be assignedyears (the "Additional Term"), voluntarily or involuntarily, separate from or as part of the Lease. Such extension shall be on upon the same terms and conditions then in effect with respect to the Premises, except for Annual Fixed Rent (as hereinafter defined), which shall be determined as provided in hereinbelow, provided that at the Lease Agreement with the exception of Base Monthly Rent. The initial Base Monthly Rent for the extension period shall be equal time such option 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 extend 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 exercised and at 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 Term Tenant shall not be in default under this Lease beyond any applicable notice and cure period. Annual Fixed Rent for the Lease Agreement at Additional Term payable with respect to the time Premises shall be the greater of exercise (i) the prevailing fair market rental rate for the Premises as of the option date of commencement of the Additional Term, as determined as hereinafter set forth, or (ii) the Annual Fixed Rent payable by Tenant with respect to the Premises for the applicable extension periodlast Lease Year during the initial Term. At any time after the date which is thirteen (13) months prior to the Expiration Date and prior to the date which is eleven (11) months prior to the Expiration Date, Tenant may request Landlord to inform Tenant of Landlord's determination of the prevailing fair market rental rate for the Premises which will be in effect for the Additional Term, and in such event Landlord shall within twenty (20) days thereafter notify Tenant as to the prevailing fair market rental rate for the Additional Term as of the commencement of the Additional Term, as determined by Landlord ("Landlord's Rent Notice"). If Tenant elects to exercise the option to extend the initial Term of this optionLease for the Additional Term, Tenant shall exercise said option only do so by written notice actually received by to Landlord ("Tenant's Exercise") given not less later than three hundred sixty-five the date which is ten (36510) days months prior to the expiration Expiration Date or the date of the initial Lease Term. The burden of actual delivery of which is mutually agreed upon at 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension periodtime. If Tenant fails to so nominate an agent and provide exercise the noticeextension option within the aforesaid time period, Tenant's right to such extension of the Term of this Lease shall expire. Tenant's Exercise shall contain a statement from Tenant that it either accepts or rejects Landlord's determination of the prevailing fair market rental rate for the Premises as set forth above, in Landlord's Rent Notice. If Tenant rejects Landlord's determination of the Landlord’s reasonable opinion of value shall be the prevailing fair market rental value rate for the applicable extension term. If Landlord fails to nominate an agent, Premises as set forth abovein Landlord's Rent Notice, Tenant then Tenant's Exercise shall provide to also contain the name of one appraiser. In such event Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth aboveshall, within thirty twenty (3020) days of their selectionLandlord's receipt of Tenant's Exercise, they shallprovide Tenant with written notice of a second appraiser. Thereafter, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date Landlord's designation of the time for second appraiser, Landlord's and Tenant's respective appraisers shall select a third appraiser. Each appraiser shall have had at lease ten (10) years experience in the valuation of commercial real estate and lease transactions in the Metropolitan Boston area. Within thirty (30) days of the selection of the third agentappraiser as aforesaid, as set forth above, requesting the earliest possible determination three appraises (by a majority decision or by an average of the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents individual determinations if no majority decision is reached) shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the prevailing fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects rate for the Premises for the Additional Term. Such determination of the prevailing fair market rental value as determined by rate for the third agent. Each party shall pay his own agent and Premises for the cost of the third agent, if necessary, Additional Term shall be paid by the conclusive and biding upon Landlord and Tenant. The determination Landlord and Tenant shall each be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent responsible for the applicable extension period has not been determined as costs of the commencement of the applicable extension periodtheir respective appraiser, and Landlord and Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen each be responsible fifty percent (11550%) of the Base Monthly Rent due for the last month prior to commencement costs of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter duethird appraiser.

Appears in 1 contract

Samples: Lease (Smtek International Inc)

Option to Extend. Tenant is granted an option shall have the option, to be exercised as hereinafter set forth, to extend the term of this Lease for an additional five (5) year period, to follow consecutively after the original term of this Lease Agreement for (hereinafter referred to as the "Extended Term"), upon the condition that, on the last date on which Tenant is entitled to exercise such option and on the last day of the term of this Lease, this Lease is in full force and effect and Tenant is not in default hereunder. Tenant shall exercise its option by giving written notice of its election to extend the term of this Lease to Landlord not less than one (1) additional three year prior to the expiration of the term of this Lease but in no event earlier than two (32) year periodyears prior to the expiration of the term of this Lease. The extensions described Upon such exercise, the term of this Lease shall be automatically extended for the Extended Term without the requirement of any further instrument, upon all of the same terms, provisions and conditions set forth in this Addendum are personal to Tenant and may not be assignedLease, voluntarily or involuntarily, separate from or as part except that the net rent payable during the Extended Term of the Lease. Such extension shall be on the same terms and conditions as provided in the this 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 greater of (i) the rent calculated and determined by applying the rent adjustments and increases set forth in Section 2.01 of this Lease as if the Lease Years of the Extended Term were part of the initial term (e.g., the rent for the Leased Premises as first Lease Year of the date six Extended Term shall be the greater of 1.03 times the rent for the last year of the original term and the Annual Rent CPI adjustment applied to such last year of the original term); and (6ii) the then market rate per square foot for the Premises (the "Market Rate"), which Market Rate shall be adjusted and increased during each Lease Year of the Extended Term by applying the rent adjustments and increases provided for in Section 2.01 of this Lease. As used in this Lease, Market Rate shall be determined by Landlord. Landlord shall, no later than nine (9) 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 original term of this Lease, advise Tenant of its determination of Market Rate for the first Lease TermYear of the Extended Term if it determines that same is greater than the rent would be applying the adjustments and increases thereto as set forth in Section 2.01 of this Lease and (i) above. The fair market rental If Landlord does not advise Tenant of the Market Rent, then rent during the Extended Term shall be determined and calculated under (ai) 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 periodhereinabove. If Tenant elects to exercise this optiondisagrees with Landlord's determination of Market Rate, Tenant shall exercise said option only by written notice actually received by so notify Landlord not less in writing no later 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual following receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose Landlord's advice of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension termMarket Rate. If Landlord fails to nominate an agent, as set forth above, and Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do cannot agree upon on the rent, Market Rate as set forth above, above described within thirty (30) days after Tenant's notice of their selectiondisagreement, they then each party shall, within fifteen (15) days thereafterfollowing the 30-day workout period, select an independent MAI appraiser, each having at least five (5) years of experience in the appraisal of commercial real estate in Dade County, Florida, with reasonable experience in the appraisal of warehouse buildings in the City of Miami, Florida, to make a determination of the Market Rate. Both MAl appraisers chosen by Landlord and Tenant shall then agree upon a third agent with the qualifications, referred to aboveMAl appraiser, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge each of the Superior Court in the County in which the Leased Premises are located. three appraisers shall submit their appraisals to Landlord and Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a no later than thirty (30) day period days prior to the expiration of the appointment original term of this Lease. The Market Rate shall be the average of the third agent and determination of the three appraisals, provided, however, if they cannot agree upon the samedifference in Market Rate of any appraisal is less than five (5%) percent of the average of the other two appraisals, as set forth above, then the third agent Market Rate shall select be the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects average of the fair market rental value as determined by the third agenttwo closest appraisals. Each party shall pay his own agent the fees and costs of the cost appraiser it has selected and both parties shall split the fees and costs of the third agentappraiser equally. Notwithstanding anything contained in this Section 22.01 to the contrary, in no event shall the Market Rate be less than Annual Rent would be if necessarycalculated and determined under (i) hereinabove. During the Extended Term, the Market Rate (if applicable) shall be increased each year, on the anniversary date, by multiplying the rent for the immediately preceding Lease Year by 1.03 or by the application of the Section 2.01 CPI adjustment to the immediately preceding Lease Year, whichever results in the greater rent. In the event that the aforesaid option to extend is duly exercised, all references contained in this Lease to the term of this Lease, whether by number of years or number of months, shall be paid by construed to refer to the Tenant. The determination shall be signed by both parties and shall thereupon become a part original term of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has this Lease, as extended as aforesaid, whether or not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter duespecific reference thereto is made in this Lease.

Appears in 1 contract

Samples: Lease Agreement (Revenge Marine Inc)

Option to Extend. Upon expiration of the primary term of this Lease, Tenant is granted an option to extend the term of the this Lease Agreement for one (1) additional three one hundred twenty (3120) year month 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 (an "extension shall be on term") upon the same terms and conditions as are included in this Lease, subject, however, to renegotiation of the rent provided in the Lease Agreement with the exception paragraph 4 of Base Monthly Rentthis Lease. The initial Base Monthly Rent for primary term and the extension period shall terms will be equal collectively referred to in this Lease as 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"term.), 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 notify Landlord within 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination expiration of the rental shall be promptly submitted primary term of this Lease or prior to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Periodeach extension term of Tenant's exercise of its option to extend this Lease, referred to above, a licensed real estate agent with at least five years commercial experience provided that in the City circumstances described in which paragraph 13, the Leased Premises are located involving properties similar options to extend the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliationterm may be exercised earlier as provided in paragraph 13, and phone number of such agent if the option to extend is exercised earlier as provided in paragraph 13, nevertheless, the rental payable as provided in paragraph 4 shall be determined at the time and in the manner provided in paragraph 4 and this paragraph 3. During the following sixty (b60) day period, Tenant and a list Landlord shall negotiate and arrive at an agreement or disagreement of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days amount of rent to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for paid during the applicable extension term. If Landlord fails to nominate an agent, as set forth above, and Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rentrent to be paid during the applicable extension term, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with Landlord and Tenant shall at the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge end of the Superior Court in sixty (60) day period enter into a new written lease or an amendment agreement setting forth the County in which the Leased Premises are located. amount of rental Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time pay pursuant paragraph 4 for the selection applicable extension term and any other additional terms to which Landlord and Tenant have agreed. If Tenant and Landlord fail to agree upon the rent to be paid during the applicable extension term during the sixty (60) day period of negotiations, a fair market appraisal comparison of comparable properties will be completed by an independent party upon which the third agentLandlord and Tenant may use to negotiate the amount of rent to be paid during the applicable extension term. If Tenant and Landlord fail to agree upon the rent to be paid during the applicable extension term during the sixty (60) day period of negotiations, as set forth aboveeither Landlord or Tenant may, requesting by written notice to the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and other party given within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a ensuing thirty (30) day period period, elect to invoke the arbitration provisions of this Lease to determine the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, rent Tenant shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent required to pay pursuant to paragraph 4 for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueterm.

Appears in 1 contract

Samples: Lease Agreement (Rightnow Technologies Inc)

Option to Extend. Provided Tenant is granted not in default under any provision of the Lease, Landlord hereby grants to Tenant an option to extend the term of this Lease for an additional term corresponding to and co-terminus with 1000 Xxxx Xx., when 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 assignedexisting term expires, 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 Termin this paragraph. 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 giving Landlord written notice actually received by Landlord of its intention 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 of the existing term of this Lease. If this Option is exercised, the Base Monthly Rent for the Premises shall equal the then current fair market monthly rent (“Fair Market Rent”) which shall not be less than $2500.00 per month for the Premises as of the commencement date of the initial Lease Term, deliver to Landlord, Tenant’s opinion of the fair market rental value, as set forth aboveapplicable extended term, and Tenant’s support adjusted upwards each year for such figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premisesat least 3% per annum. If the rental for parties cannot agree on the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty amount of the “Fair Market Rent” and the annual adjustment to such Fair Market Rent within sixty (12060) days prior to the commencement of said extension period (“Initial Meeting Period”)such extended term, then the determination Fair Market Rent and the annual adjustment thereto shall be determined by an appraisal. All other terms and conditions contained in the Lease and this Addendum, as the same may be amended from time to time by the parties in accordance with the provisions of the rental Lease, shall be promptly submitted to arbitration. Tenant remain in full force and effect and shall select, within fifteen (15) days of apply during the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension Option term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as for the Premises needs to be determined by appraisal, Landlord and Tenant shall either Landlord’s agent agree to select one real estate appraiser or Tenant’s agent which most closely reflects three real estate appraisers. Any real estate appraiser selected shall be a member of the fair market American Institute of Real Estate Appraisers, shall have at least five (5) years experience appraising commercial space located in the vicinity of the Premises, and shall act in accordance with the rules of the American Institute of Real Estate Appraisers. The Fair Market Rent shall be based on rental value of space of the same age, construction, size and location as determined by the third agentPremises with the improvements installed therein. Each If only one appraiser is selected, then each party shall pay his own agent one-half of the fees and expenses of that appraiser. If proceeding with three appraisers, each party shall select one appraiser, who in turn shall select the cost third appraiser. If three appraisers are selected, each party shall bear the fees and expenses of the appraiser it selects and one-half of the fees and expenses of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueappraiser.

Appears in 1 contract

Samples: Lease (Adeza Biomedical Corp)

Option to Extend. Provided Tenant is granted an not in Default of any term or condition of this Lease as of the date of exercise of the renewal term, Tenant shall have the option to extend renew the term of the Lease Agreement for one additional five (1) additional three (35) year period. The extensions described in this Addendum are personal to Tenant and may not be assignedterm, voluntarily or involuntarily, separate from or as part of the Lease. Such extension shall be on the same terms and conditions as provided in of the Lease Agreement with Lease, except that the exception Base Rent at the beginning of Base Monthly Rent. The initial Base Monthly Rent for the extension period each renewal term shall be adjusted to equal to the fair then prevailing market rental rate for comparable leases for similar projects within the Leased Premises Central Business District in Austin as of the commencement of the renewal term (but not less than the Base Rent in effect immediately prior to the date six of the renewal term). The option shall be exercised (6if at all) by Tenant giving irrevocable written notice to Landlord at least twelve (12) 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 option shall be personal to the originally named Tenant and any party succeeding to Tenant under a Permitted Transfer. The prevailing market rental rate shall be determined (a) without consideration for in the particular use of the Leased Premises by Tenant but following manner: Prevailing market rental rate shall be for determined taking into account all relevant factors, including (to the permitted use extent relevant) number of the Lease Premises, (b) shall take into consideration all Leasehold Improvements that are the property months 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 if any (d) without discount for the fact that no leasing commissions which 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 part 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental rate), tenant improvement obligations, moving allowances, and leasing commissions and costs. The term "comparable leases" shall be promptly submitted not include leases entered into under special circumstances affecting the economics of the tenancies, including following the exercise of options to arbitrationlease space at other than then current prevailing market rate, the lease of awkward or unusually shaped space or space without windows or other usual amenities, leases entered into under conditions where the landlord was forced to lease the space by external legal, economic, or other pressures not generally applicable to the market, or the sublease of space by a sublandlord not primarily in the business of leasing space similar to the Premises. Within one hundred twenty (120) days after the date Tenant has exercised its option to renew, Landlord shall give Tenant notice of Landlord's proposed prevailing market rental value for the Premises. Tenant shall selectgive Landlord written notice within thirty (30) days thereafter as to whether or not Tenant agrees with Landlord's proposed prevailing market rental value. If Tenant disagrees with Landlord's proposed prevailing market rental value, within the parties shall negotiate in good faith to resolve their differences for a period of thirty (30) days. Upon the expiration of such thirty day period, if the parties are not in agreement as to such prevailing market rental value, then either party may initiate appraisal to determine the fair market rental value by giving written notice to the other party, such notice containing the name of an appraiser appointed by such initiating party. Within fifteen (15) days of thereafter, the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar party receiving such notice shall appoint its own appraiser and give written notice thereof to the Property under this Leaseinitiating party. Tenant shall provide to Landlord (a) If the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, second appraiser is not appointed within such fifteen (15) day period such that such information is actually received period, then the appraiser selected by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent initiating party shall determine the fair market rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must of the Premises, and such appraisal shall be actually received by Landlord before binding upon the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rentalparties. If the second appraiser is timely appointed, then the two agents do not agree upon the rent, as set forth above, appraisers shall simultaneously submit to each other their good faith estimate of prevailing market rental value within thirty (30) days of their selectionappointment of the second appraiser and attempt to agree on the prevailing market rental value. If the two appraisers are unable to agree, they shallbut the higher appraisal is no more than ten percent (10%) higher than the lower appraisal, within fifteen then the prevailing market rental value shall be the average of the two appraisals. If the higher appraisal is more than ten percent (1510%) days thereaftergreater than the lower appraisal, the two appraisers shall together select a third agent with appraiser who shall also determine the qualificationsprevailing market rental value. If three appraisers are ultimately appointed and any two appraisers agree on the prevailing market rental value, referred to abovethe value agreed upon by the two appraisers shall be the prevailing market rental value. If the three appraisers all determine different prevailing market rental values, then the prevailing market rental value shall be the average of the two closest appraisals. All appraisers shall be members of the MAI and shall have at least ten (10) years' experience appraising similar property in Austin. Each party shall bear the cost of the appraiser appointed by such party, and the parties shall share equally in the cost of the third appraiser, if they do not so appointed. If the two appraisers initially appointed are unable to agree on a third agentappraiser, then either party shall have the third arbitrator shall be appointed by right to apply to the presiding judge of the Superior Court in having jurisdiction over the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the a third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueappraiser.

Appears in 1 contract

Samples: Recognition and Nondisturbance Agreement (Athenahealth Inc)

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Option to Extend. Provided Tenant is granted not in default under any provision of the Lease, Landlord hereby grants to Tenant an option to extend the term of the this Lease Agreement for one (1) an additional term of three (3) year period. The extensions described in this Addendum are personal to Tenant and may not be assignedyears, voluntarily or involuntarilywhen the existing term expires, 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 Termin this paragraph. 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 giving Landlord written notice actually received by Landlord of its intention 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under existing term of this Lease. Tenant shall provide to Landlord (a) the nameIf this Option is exercised, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has Premises shall equal the then current fair market monthly rent ("Fair Market Rent") which shall not been determined be less than $23,408.00 per month for the Premises as of the commencement date of the applicable extension periodextended term, and adjusted upwards each year for at least 4% per annum. If the parties cannot agree on the amount of the "Fair Market Rent" and the annual adjustment to such Fair Market Rent within sixty (60) days prior to the commencement of such extended term, then the Fair Market Rent and the annual adjustment thereto shall be determined by an appraisal. All other terms and conditions contained in the Lease and this Addendum, as the same may be amended from time to time by the parties in accordance with the provisions of the Lease, shall remain in full force and effect and shall apply during the Option term. If the fair market rental value for the Premises needs to be determined by appraisal, Landlord and Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior either agree to commencement of the applicable extension periodselect one real estate appraiser or three real estate appraisers. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus real estate appraiser selected shall be a credit for Base Monthly member of the American Institute of Real Estate Appraisers, shall have at least five (5) years experience appraising commercial space located in the vicinity of the Premises, and shall act in accordance with the rules of the American Institute of Real Estate Appraisers. The Fair Market Rent to become thereafter dueshall be based on rental of space of the same age, construction, size and location as the Premises with the improvements installed therein. If only one appraiser is selected, then each party shall pay one-half of the fees and expenses of that appraiser. If proceeding with three appraisers, each party shall select one appraiser, who in turn shall select the third appraiser. Such third appraiser shall select one of this first two appraiser's appraisal as the correct fair market rent. If three appraisers are selected, each party shall bear the fees and expenses of the appraiser it selects and one-half of the fees and expenses of the third appraiser.

Appears in 1 contract

Samples: Adeza Biomedical Corp

Option to Extend. While the Lease is in full force and effect, provided the Tenant is granted an not in default of any of the terms, covenants and conditions thereof, beyond any applicable notice and cure periods, and further provided that ClickSoftware, Inc. is itself occupying at least fifty percent (50%) of the Premises then demised to Tenant, in each case both as of the time of option exercise and as of the commencement of the herein additional term, Tenant shall have the right or option (the "Extension Option") to extend the original term of the this Lease Agreement for one (1) additional period of 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 Leaseyears. Such extension of the original term shall be on the same terms terms, covenants and conditions as provided for in the Lease Agreement with original term except (a) Tenant shall have no further option to extend the exception term, (b) the base year for Property Taxes and Operating Expenses (net of Base Monthly Rent. The initial Base Monthly Rent for the extension period Property Taxes) shall be equal updated to then current calendar year and fiscal tax year as of the date of exercise of the Extension Option, (c) the Base Rent during the extended term shall be ninety-five percent (95%) of the fair market rental value for new leases, as determined by Landlord, taking into account new leases then currently being negotiated or executed for comparable space in the Leased office park in which the Building is located, including provisions for subsequent increases and other adjustments and also taking into account such new base years, or if no new leases are then being negotiated or executed in such office park, the fair market rental value shall be determined by Landlord taking into account new leases then being negotiated or executed for comparable space located elsewhere in first-class office buildings located in the Burlington, Massachusetts area, and (d) Landlord shall have no obligation to prepare, refurbish or construct the Premises as of the date six (6) months or any part thereof prior to the commencement of the applicable expiration period herein additional term or on or about the date otherwise provide any amount of improvement allowance in respect of the final determination by Premises. Notwithstanding the arbitrators (set forth below)foregoing, whichever is higher; however, in no event shall the initial Base Monthly Rent for the applicable extension period shall not on account of any additional term be less than the annual Base Monthly Rent plus three percent (3%) payable for the Premises as of the date immediately preceding the commencement of such additional term. Notice of Tenant's intention to exercise the Extension Option must be given to Landlord, in writing, at least nine (9) months prior to the expiration of the initial Lease Term. The fair market rental shall be determined (a) without consideration for the particular use term 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, etcLease.), 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due.

Appears in 1 contract

Samples: Gross Lease (Clicksoftware Technologies LTD)

Option to Extend. Tenant So long as this Lease is granted an in full force and effect and Lessee is not and has not at any time been in default under the Lease beyond any applicable cure period, Lessee may extend the Term of this Lease for the period of the Option Term by giving notice to Lessor on or before the Option Notice Date. The terms and conditions applicable to such option term shall be the same as set forth in this Lease except that the Lessee shall have no further right to extend the term Term of this Lease and the Lease Agreement for one (1) additional three (3) year period. The extensions described in this Addendum are personal Annual Base Rent payable by Lessee with respect to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as part of the Lease. Such extension Option Term shall be on the same terms and conditions as provided in Option Annual Base Rent, but not less than the Lease Agreement with the exception of Annual 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 immediately prior to the commencement start 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 Option Term. The fair market rental value of the Demised Premises may be mutually agreed to by Lessor and Lessee and, if they have not so agreed in writing in any case within one (l) month following the exercise of such option, the same shall be determined (a) without consideration for by appraisers, one to be chosen by Lessor, one to be chosen by Lessee, and a third to be selected by the particular use two first chosen. In determining the fair market value of the Leased Premises by Tenant but shall be for the permitted use of the Lease Demised Premises, (b) the parties shall take into consideration all Leasehold Improvements that are account, not only the property prevailing market terms (such as rent rates, amount of Landlord or that would become the property of Landlord upon expiration or termination of the Lease (upon Landlord’s election for the sameallowances, free rent periods and other similar factors), (c) shall take into consideration any concessions but also that may Lessee has built out the then be offered for similar properties (i.e. free rentexisting leasehold improvements and fixtures at Lessee's expense. As a result, tenant improvement allowances, etc.), and (d) without discount for the fact parties agree 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 valuevalue of the Demised Premises will be consistent with that of Class A office space (on the assumption that the Lessor had built out the Demised Premises for such use at Lessor's expense) or any other higher use at that time in comparable buildings in the area, but not with that of a built-out research and development laboratory. All appraisers chosen or selected hereunder shall be independent of the parties, shall have received the M.A.I. (Member, Appraisal Institute) designation from the American Institute of Real Estate Appraisers and shall have had at least five (5) years of experience in appraising commercial real estate. The unanimous written decision of the two first chosen, without selection and participation of a third appraiser, or otherwise the written decision of a majority of three appraisers chosen and selected as aforesaid, shall be conclusive and binding upon Lessor and Lessee. Lessor and Lessee shall each notify the other of its appraiser within thirty (30) days following expiration of the aforesaid one (l) month period and, unless such two appraisers shall have reached a unanimous decision within seventy-five (75) days from said expiration, they shall within a further fifteen (15) days elect a third appraiser and notify Lessor and Lessee thereof. The third appraiser shall deliver to the Lessor and Lessee the written decision of the majority of them within 30 days of the selection of the third appraiser. Lessor and Lessee shall each bear the expense of the appraiser chosen by it and shall equally bear the expense of the third appraiser (if any). If, as set forth abovecontemplated by this Section, Annual Base Rent with respect to any Option Term shall not have been determined before the commencement date of such Option Term, then such Option Term may commence and Tenant’s support for from and after such figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to commencement date, until the rental value and amount of such Option Annual Base Rent is so determined either by agreement of the parties or by appraisal, Lessee shall thereafter promptly meet and endeavor to agree upon make payments towards such Option Annual Base Rent at the fair market rental of the Leased Premises. If the rental rates applicable for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days Annual Base Rent immediately prior to the commencement date of said extension period (“Initial Meeting Period”)such Option Term, then the determination subject to retroactive adjustment in conformity with and payment of the rental shall be promptly submitted to arbitration. Tenant shall select, any additional amount within fifteen (15) days of the expiration determination of Option Annual Base Rent for such option term pursuant to this Section. In no event shall the Initial Meeting Period, referred provisions of this Section be deemed to above, a licensed real estate agent with at least five years commercial experience in authorize an Annual Base Rent less than the City in which the Leased Premises are located involving properties similar Annual Base Rent immediately prior to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number start of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rentalany Option Term. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred Lessee exercises its option to above, and if they do not so agree on a third agentextend this Lease, the third arbitrator phrase Annual Base Rent as used in this Lease shall be appointed by mean the presiding judge Option Annual Base Rent during the Option Term and the word Term as used in this Lease shall mean the combined terms of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent Term and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueOption Term.

Appears in 1 contract

Samples: 1 Lease Agreement (Geltex Pharmaceuticals Inc)

Option to Extend. Tenant is granted an Lessor hereby grants to Lessee two successive options to extend this Lease for additional terms of five (5) years each commencing on the first day after the Expiration Date of the previous term. Lessee must exercise the option to extend extend, if at all, by giving Lessor written notice of such exercise not less than seven (7) months prior to the expiration date of the then current term. Upon the exercise of the option to extend, the term of this Lease shall be extended through 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 expiration date of the Lease. Such extension shall be Renewal Term 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 contained herein, except that there shall be equal no option to extend the fair market rental for term of this Lease beyond 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)Second Renewal Term, whichever is higher; however, the initial Base Monthly Rent for the applicable extension period shall not be less than and the Base Monthly Rent plus three percent (3%) as of during the expiration of the initial Lease Term. The fair market rental Renewal Terms 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 paidpursuant to this Section. The Base Monthly Rent for each extension period Renewal Term shall be subject to three percent (3%) annual increases. It shall be a condition precedent to the exercise greater 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the nameBase Monthly Rent scheduled for the final month of the preceding term (the initial term or the First Renewal Term, addressas the case may be), company affiliation, and phone number of such agent or (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rentalbase rental value of the Premises. If Lessor and Lessee agree to be reasonable in their negotiation of rent for the two agents do not agree upon the rent, as set forth above, within option periods. Lessor and Lessee shall have thirty (30) days after Lessee provides Lessor of their selection, they shall, within fifteen (15) days thereafter, select a third agent with its notice to exercise its Option to Renew to set the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time rent for the selection of option period(s). If Lessor and Lessee are unable to establish the third agent, as set forth above, requesting rent for the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and option period(s) within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of then Lessor and Lessee shall each appoint an appraiser with not less than ten (10) years experience in real estate appraisal in the appointment of Bellevue real estate market, to set the third agent and if they cannot agree upon rent for the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreementoption period(s). If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable rents proposed by Tenant to Landlord each appraiser are within ten (10%) days percent of each other, then the rent for the option period(s) shall be the average of the determination two rents. If the rents proposed by each appraiser are greater than ten (10%) percent from each other then the two appraisers will select a third appraiser who shall also have at least (10) years real estate appraisal experience in the Bellevue real estate market, to set the rent for the option period(s). The rent established by the third appraiser will be binding on Lessor and Lessee and will be no less than the rent proposed by Lessee and no higher than the rent proposed by Lessor. The total cost of all of the Base Monthly Rent for appraiser's fees will be the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueresponsibility of the party whose proposed rental rate is farthest from that of the final rental rate established by the appraisers.

Appears in 1 contract

Samples: Industrial Lease (Icos Corp / De)

Option to Extend. Tenant A Lessee is granted an one option to extend the term of the Lease Agreement this Lease, such option to be for one (1) additional three (3) a 1 - 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 contained herein, except that the monthly base rental rate provided for in the Paragraph(s) 4(a) of this 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 then market rate. Lessee shall advise Lessor of exercise of the option for the applicable extension period. If Tenant elects its intent to exercise this option, Tenant shall exercise said option only by written notice actually received by Landlord in writing, not more than 210 nor less than three hundred sixty-five (365) 180 days prior to the expiration date end of the initial Lease Termexpiring term. If Lessee fails to exercise this option within the time required, the option shall be void. B The burden of actual delivery of such parties shall have thirty (30) days after Lessor receives the option notice is in which to agree 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the monthly base rental for the applicable extension period has not been agreed uponextended term during that period, as set forth abovethey shall immediately complete and sign the agreement scheduled below. C If the parties are unable to agree on the monthly base rental for the extended term within that period, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the monthly base rental shall be promptly submitted to arbitrationdetermined by arbitration in accordance with the Real Estate Valuation Arbitration Rules of the American Arbitration Association. Tenant Lessee shall select, be responsible for initiating the arbitration proceeding and advancing 1/2 the administration fee charged by the American Arbitration Association within fifteen (15) 15 days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) 30-day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen described in Paragraph (15B) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant Lessee fails to so nominate an agent and provide the notice, as set forth aboveinitiate such arbitration within that period, the Landlord’s reasonable opinion of value option shall be void, and the Lease shall expire at the end of the term, that date being April 30, 2002. D In setting the fair market monthly base rental value for the applicable extension extended term, the arbitrator shall consider what monthly rents are being paid and what rent escalation provisions are being included on recently executed leases for similar terms, for spaces which are reasonably similar to the premises, with similar amenities and in the general neighborhood of the premises, but shall exclude the value of all tenant improvements made by Lessee to the Premises at Lessee's cost. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a E Upon receiving written notice setting forth that Tenant’s agent shall determine of the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set arbitrator's determination of the fair market monthly rental, the parties shall complete and sign the agreement scheduled below stating the base monthly rental at that rate. If Lessor shall credit Lessee, against the two agents do not agree upon next rental payment due, an amount equal to one- half the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to aboveadministrative fee for such arbitration paid by Lessee, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agent. Each party shall pay his own agent and the cost of the third agentarbitrator's fee, if necessaryany, shall be paid one-half by each party. F Upon execution of this option, the Tenantterm shall be extended to April 30, 2003. ________________________________________________________________________________ To be completed when the Option is exercised: By signing below the parties acknowledge: (i) Lessee has exercised this option on the date indicated below Lessee's signature. The determination shall be signed by both parties and shall thereupon become a part of the term for this Lease Agreement. If the Base Monthly Rent for the applicable extension period has not thus been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior extended to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due_________________.

Appears in 1 contract

Samples: Copper Mountain Networks Inc

Option to Extend. Landlord grants to Tenant is granted an option two options to extend the term of the Lease Agreement this lease for one (1) additional a period of three (3) year period. The extensions described in this Addendum are personal years each subject 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 all 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 herein contained except this paragraph, paragraph 47 - Tenant Improvements, and monthly rental which shall be equal to the fair market rental for the Leased Premises determined 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 In order to exercise this option, Tenant shall exercise said option only by must have performed all the covenants and obligations of Tenant herein and at least six months before the ending date of the initial term of this lease or of the first extended term of three years, must have delivered to Landlord written notice actually received of the exercise of this option. As of the date of exercise by Tenant of its option to extend, the monthly base rental for the Extended Term of three years shall be subject to negotiation between the Landlord not less and Tenant. Not later than three hundred sixty-five (3655) days full calendar months prior to the expiration date of the initial Lease Initial 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 or of the initial Lease Termextended term as the case may be, deliver to Landlord, Tenant’s opinion of the fair market rental value, as set forth above, Landlord and Tenant’s support for such figure (i.e. comparable lease information). Landlord Tenant shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon between themselves as to the fair market base monthly rental of the Leased Premisespremises, as of the commencement of the Extended Term. If the parties are able to agree on such fair market base monthly rental, said base monthly rent shall be the rental for the applicable extension period has not been agreed upon, as set forth abovepremises during the Extended Term. In the event the parties fail to agree upon said amounts for the Extended Term, at least One Hundred Twenty four (1204) days full calendar months prior to commencement thereof, the base monthly rental for the Extended Term, shall be determined by appraisal in the manner hereafter set forth. In the event it becomes necessary under this subparagraph to determine the fair market base monthly rental of the premises by appraisal, Landlord and Tenant, no later than three (3) full calendar months prior to commencement of said extension period (“Initial Meeting Period”)the Extended Term, then the determination of the rental each shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed appoint an experienced real estate agent appraiser with at least five (5) years commercial experience in the City leasing of industrial office property in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list general vicinity of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time periodpremises. Landlord The two appraisers so selected shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall each determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rentalbase monthly rental for the premises taking into account the value of the property and comparable prevailing rentals including escalations for a three (3)year term in that area. Such appraisers shall, within twenty (20) business days after their appointment, complete their appraisals and submit their appraisal reports to Landlord and Tenant. If the fair market monthly base rental of the premises established in the two agents do not agree upon (2) appraisals varies by ten percent (10%) or less of the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agenthigher rental, the third arbitrator average of the two shall be appointed controlling. If said fair market monthly base rental varies by the presiding judge more than ten percent (10%) of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court higher rental, said appraisers, within ten (10) days after the submission of the expiration date of last appraisal, shall appoint a third appraiser who shall also meet the time for the selection of the third agent, as qualifications set forth above. Such third appraiser shall, requesting the earliest possible determination within twenty (20) business days after his appointment, determine by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to appraisal the fair market rentalmonthly base rental of the-premises, as set forth taking into account the same factors referred to above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the submit his appraisal report to Landlord and Tenant. The fair market monthly base rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agentappraiser for the premises shall be controlling, unless it is less than that set forth in the lower appraisal previously obtained, in which case the value set forth in said lower appraisal shall be controlling, or unless it is greater than that set forth in the higher appraisal previously obtained, in which case the base rental set forth in said higher appraisal shall be controlling. Each party If either Landlord or Tenant fails to appoint an appraiser or if an appraiser appointed by either of them fails, after his appointment, to submit his appraisal within the required period in accordance with the foregoing, the appraisal submitted by the other appraiser shall pay his own agent and be controlling. The term "fair market monthly base rental" used for all purposes of this paragraph, shall include escalation over the three year term. The cost of the third agent, if necessary, all appraisals under this subparagraph shall be paid borne equally by the Landlord and Tenant. The Upon determination of the fair market base monthly rental by appraisal, the parties hereto shall immediately execute an addendum to this Lease stating the fair market base monthly rental so determined. In the event of exercise of the option to extend, the security deposit shall continue to be held under the provisions of the lease, to be returned to Tenant to the extent therein set forth, within 30 days after the termination of the extension period and vacation of the premises by Tenant. It is agreed that this Option to Extend is personal to Tenant, and has been granted because of specific use of the premises by Tenant and agreements in the lease concerning Tenant's improvements. In the event this lease is assigned or sublet to any third party or entity other than to successor tenant as defined by paragraph 24 (f), this Option to Extend shall be signed by both parties null and shall thereupon become a part of the void. Landlord and Tenant have executed and delivered this Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement date first hereinabove set forth. LANDLORD TENANT Xxxxxx Xxxxxxxxxxx, Xx. and Olivetti Advanced Technology Xxxxxxx X. Xxxxxxxxxxx Center, Inc. /s/ Xxxxxx Xxxxxxxxxxx, Xx. /s/ X.X. Xxxxxxx ___________________________ By ______________________ Xxxxxx Xxxxxxxxxxx, Xx. /s/ Xxxxxxx X. Xxxxxxxxxxx __________________________ Printed Xxxxxxx X. Xxxxxxxxxxx X.X. Xxxxxxx Name: _____________________ Treasurer/Controller Title: ______________________ 000 Xxxxxxxx Xx. Xxx Xxxxxx, XX 00000 By: ________________________ Printed Name:______________________ Title: ______________________ ADDENDUM ONE TO LEASE AGREEMENT dated by and between XXXXXX XXXXXXXXXXX, XX. and XXXXXXX X. XXXXXXXXXXX as Landlord, and OLIIVETTI ADVANCED TECHNOLOGY CENTER, INC., as Tenant MODIFICATIONS, ADDITIONS AND AMENDMENTS TO LEASE The provisions of this Addendum One shall modify, amend and be in addition to the provisions of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent Lease. Where the provisions of this Addendum One Hundred Fifteen percent (115%) are inconsistent with the provisions of the Base Monthly Rent due for Lease, the last month prior to commencement provisions of the applicable extension period. Any deficiency this Addendum One shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter duegovern.

Appears in 1 contract

Samples: Lease Agreement (MMC Networks Inc)

Option to Extend. Provided Tenant is granted an not in default beyond any applicable cure period, or such default has been waived by Landlord, at the time Tenant exercises its option or at the time the then current term expires and further provided Tenant has not assigned the Lease or sublet the Premises in a transaction requiring Landlord's consent as set forth in Article XI, Tenant shall have the right and option to extend the term of this Lease for two renewal periods of five years each. Tenant shall give Landlord written notice exercising Tenant's option to extend the term of this 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) less than nine months prior to the commencement expiration of the applicable expiration then current term. If not given in a timely manner, the option(s) to extend will be of no force or effect. During each option period or on or about the Annual Base Rent shall be at the then prevailing fair market rental rate (hereinafter referred to as "Market Rental Rate"), based upon the price for comparable space in Class B buildings in the St. Louis suburban area, as of the commencement date of the final determination by intended renewal term, taking into consideration, without limitation, such relevant factors as the arbitrators (set forth below), whichever is higher; howeverbase year for calculating Tenant's obligation with respect to increases in Taxes and Operating Expenses and the amounts of these charges, the initial Base Monthly Rent for use of the applicable extension period Premises as general office, the condition, quality, size and utility of the Premises, and the caliber and financial strength of Tenant. In no event shall not the Market Rental Rate be less than the Annual 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 last year 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 term prior to the expiration date Option period in question. Landlord shall notify Tenant of the initial Lease Term. The burden Landlord's determination of actual delivery Market Rental Rate within fifteen days after receipt of such Tenant's notice is on the Tenantexercising its option. In the event Tenant exercises the option hereunderdisagrees with Landlord's determination of Market Rental Rate, Tenant shallshall notify Landlord in writing of same, along with Xxxxxx's written proposal of Market Rental Rate, within a period fifteen days after receipt 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises`s determination. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they parties cannot agree upon the same, as set forth abovea Market Rental Rate within fifteen business days after Xxxxxxxx's receipt of Tenant's notice, the third agent shall select parties agree to have the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as Market Rental Rate determined by the third agent. Each party shall pay his own agent and the cost of the third agent, if necessary, shall be paid by the Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueprocess set forth below.

Appears in 1 contract

Samples: Panera Bread Co

Option to Extend. Subject to Tenant providing Landlord six (6) months prior written notice and Tenant is granted an option to extend the term not in default of any terms of the Lease, Tenant shall have the Option to Extend the Lease Agreement for all space then under lease by Tenant in the Building, for one (1) additional three term of five (35) year periodyears. 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 base rental rate shall be on the same terms and conditions as provided then current "fair market" rental rates for like space 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 periodFoothill Ranch Office Market Place. If Tenant elects objects to exercise this optionLandlord's determination of fair market rental, Tenant shall exercise said option only by written notice actually received by notify Landlord not less than three hundred sixty-five in writing within ten (36510) days prior to the expiration date of the initial Lease Term. The burden notice of actual delivery Landlord's determination, that Tenant disagrees with Landlord's determination of such notice is on the Tenantfair market rental. In the event that Landlord and 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor are unable to agree upon the fair market rental value of the Leased Premises. If , then the fair market rental for the applicable extension period has not been agreed upon, value shall be determined by appraisal as set forth abovebelow. Until the appraisal procedures are final, at least One Hundred Twenty (120) days prior to Tenant shall pay base rent in the commencement amount of said extension period (“Initial Meeting Period”), then Landlord's determination. After the determination of the rental appraisers is final, Landlord shall be promptly submitted to arbitration. reimburse Tenant for any overpayment by Tenant of base rent owing for prior months, and Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide promptly make payment to Landlord (a) the name, address, company affiliation, and phone number for any underpayment of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet base rent owing for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension termprior months. If Landlord fails and Tenant are unable to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set agree upon the fair market rentalrental value of the Premises, then Landlord shall cause an M.A.I. appraiser (the "First Appraiser") to determine such fair market rental value. If the two agents do not agree upon the rentsuch appraisal is deemed unacceptable by Tenant, as set forth above, within thirty (30) days of their selection, they shall, within fifteen (15) days thereafter, select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. then Tenant shall be required to petition such Court so advise Landlord in writing within ten (10) days after receipt of such appraisal and Tenant shall engage another M.A.I. appraiser (the expiration date of "Second Appraiser") to appraise the time for Premises. The First Appraiser and the selection of Second Appraiser shall together choose a third M.A.I. appraiser (the third agent, as set forth above, requesting "Third Appraiser"). If the earliest possible determination appraisal determined by the Court. At Landlord’s electionThird Appraiser is greater than the highest appraisal or lower than the lowest appraisal given by the First Appraiser and the Second Appraiser, such petition shall be on an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period of the appointment of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select then the fair market rental value as shall be the amount determined by either Landlord’s agent the appraisal given by the First Appraiser or Tenant’s agent the Second Appraiser, as applicable, which most closely reflects is closest in amount to the appraisal given by the Third Appraiser. Otherwise, the fair market rental value as shall be the average of the amount determined by the third agentthree appraisals. Each party All other terms and conditions of the initial lease shall pay his own agent and remain the same for the extended term of the lease. The cost of all appraisals shall be borne by Tenant if the fair market rental value of the Premises determined by the foregoing appraisal process is within five percent (5%) of Landlord's original determination; otherwise the cost of the third agent, if necessary, all appraisals shall be paid borne equally by the Landlord and Tenant. The determination shall be signed by both parties and shall thereupon become a part of the Lease Agreement. If the Base Monthly Rent for the applicable extension period has not been determined as of the commencement of the applicable extension period, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter due.

Appears in 1 contract

Samples: Office Lease (Cardiogenesis Corp /Ca)

Option to Extend. So long as Tenant is granted an option not in material default under the terms of the Lease, Tenant shall have the right to extend the term of the Lease Agreement for one two (12) additional three terms of five (35) year periodyears each (the "Extension Terms"). Tenant agrees to notify Landlord in writing of Tenant's intent to renew at twelve (12) months prior to the termination of the then current lease term. The extensions described in this Addendum are personal to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as part of rental rate during 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 Extension Terms shall be equal to the fair market rental then Fair Market Rental Rate (adjusted for lease concessions) for comparable space located in Lower Xxxxx Xxxx, Seattle, Washington. Within thirty (30) days following Tenant's notice to Landlord of Tenant's desire to extend the Leased Premises as Lease, Landlord shall notify Tenant of the proposed Extended Term Base Rent, which shall be equal to the then Fair Market Rental Rate of the Premises. Fair Market Rental Rate shall be defined as the annual Base Rent (projected from the date six (6) months prior to of the commencement of the applicable expiration period or payment of annual rental to which it applies) which Tenant would expect to pay and Landlord would expect to receive under leases of space of comparable size and quality to the Premises and as provided for in and on or about terms and conditions comparable to, this Lease covering premises similar to the date Premises. Tenant shall have thirty (30) days following receipt of Landlord's notice of the final determination proposed Extended Term Base Rent, in which to accept such determination; or to agree with Landlord on a stipulated Fair Market Rental Rate. If Tenant notifies Landlord, within the aforesaid thirty (30) day period, that Tenant disputes the Prevailing Market Rate quoted by the arbitrators (set forth below), whichever is higher; howeverLandlord, the initial parties shall, during the following thirty (30) days, negotiate in good faith to determine the Annual Base Monthly Rent for the applicable extension renewal Term. If within said thirty-day period the parties are unable to agree on the Annual Base Rent, then within ten (10) days thereafter, each party shall not be less than select a qualified appraiser experienced in appraising commercial rental properties in the Base Monthly Rent plus three percent (3%) as vicinity of the expiration of the initial Lease Term. The fair market rental Building, who shall be determined (a) without consideration submit appraisals 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 figure (i.e. comparable lease information). Landlord shall thereafter promptly communicate with Tenant as to Landlord’s response to Tenant’s opinion as to the rental value and the parties shall thereafter promptly meet and endeavor to agree upon the fair market rental of the Leased Premises. If the rental for the applicable extension period has not been agreed upon, as set forth above, at least One Hundred Twenty (120) days prior to the commencement of said extension period (“Initial Meeting Period”), then the determination of the rental shall be promptly submitted to arbitration. Tenant shall select, within fifteen (15) days of the expiration of the Initial Meeting Period, referred to above, a licensed real estate agent with at least five years commercial experience in the City in which the Leased Premises are located involving properties similar to the Property under this Lease. Tenant shall provide to Landlord (a) the name, address, company affiliation, and phone number of such agent (b) and a list of the agents qualifications, and (c) a statement that Landlord has fifteen (15) days to nominate Landlord’s own agent, in writing, within such fifteen (15) day period such that such information is actually received by Landlord within such time period. Landlord shall have a period of fifteen (15) days after actual receipt of Tenant’s information, as set forth above, to nominate it’s own agent. Thereafter, said agents shall meet for the purpose of determining the rental, as set forth above, for the applicable extension period. If Tenant fails to so nominate an agent and provide the notice, as set forth above, the Landlord’s reasonable opinion of value shall be the rental value for the applicable extension term. If Landlord fails to nominate an agent, as set forth above, Tenant shall provide to Landlord a written notice setting forth that Tenant’s agent shall determine the rental value if Landlord does not nominate an agent within fifteen (15) additional days. Such notice must be actually received by Landlord before the fifteen (15) days commences to run. If Landlord thereupon fails to so select an agent, the one agent retained by Tenant shall set the fair market rental. If the two agents do not agree upon the rent, as set forth above, within thirty (30) days of their selectionappointment. If the difference between the appraisals is five percent (5%) or less, they shallthe Prevailing Market Rate shall be determined to be the average of the two appraisals. If the difference is greater than five percent (5%), within fifteen (15) days thereafter, then the two appraisers shall select a third agent with the qualifications, referred to above, and if they do not so agree on a third agent, the third arbitrator qualified appraiser who shall be appointed by the presiding judge of the Superior Court in the County in which the Leased Premises are located. Tenant shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third agent, as set forth above, requesting the earliest possible determination by the Court. At Landlord’s election, such petition shall be on submit an ex parte basis with notice and opportunity by Landlord to attend such hearing. The Tenant’s failure to so petition the Court, as set forth herein and appraisal within the time period set forth herein, shall void the Tenant’s option exercise. The three agents shall determine whether Landlord’s value or Tenant’s value is closest to the fair market rental, as set forth above, within a thirty (30) day period days following the submission of the appointment first appraisals. The Prevailing Market Rate shall then be the average of the third agent and if they cannot agree upon the same, as set forth above, the third agent shall select the fair market rental value as determined by either Landlord’s agent or Tenant’s agent which most closely reflects the fair market rental value as determined by the third agenttwo (2) closest appraisals. Each party shall pay his own agent and the cost The fees of the third agent, if necessary, each appraiser shall be paid by the Tenantparty appointing the appraiser and the fees of the third appraiser, if any, shall be shared equally by the parties. The determination option shall be signed by both parties and shall thereupon become a part void if, at the time of exercise of such option, Tenant is not in possession of the Premises or is in default under this Lease Agreementor if Tenant fails to deliver the requisite notice thereof within the time period specified above. If the Base Monthly Rent for the applicable extension period has The option granted herein shall not been determined as of the commencement of the applicable extension periodbe severed from this Lease, Tenant shall pay an estimated Base Monthly Rent of One Hundred Fifteen percent (115%) of the Base Monthly Rent due for the last month prior to commencement of the applicable extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the determination of the Base Monthly Rent for the applicable extension period. Any surplus shall be a credit for Base Monthly Rent to become thereafter dueseparately sold, assigned, or transferred.

Appears in 1 contract

Samples: Office Lease Agreement (F5 Networks Inc)

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