OPTIONAL IMPROVEMENTS Sample Clauses
The Optional Improvements clause allows one party, typically a tenant or licensee, to make enhancements or upgrades to a property or asset at their discretion, rather than as a contractual obligation. In practice, this clause outlines the process for proposing, approving, and implementing such improvements, including any requirements for landlord or owner consent and the handling of improvements at the end of the agreement. Its core function is to provide flexibility for the party in possession to adapt the property to their needs while ensuring that the interests of the owner are protected and that responsibilities for costs and removal are clearly defined.
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OPTIONAL IMPROVEMENTS. So long as no Material Lease Default or Lease Event of Default shall have occurred and be continuing, the Facility Lessee at any time may, at its own cost and expense, and without the consent of the Lease Indenture Trustee, the Lender, the Security Agent, the Bondholder Trustee, the Owner Lessor or Owner Participant make, cause to be made, or permit to be made any Improvement as the Facility Lessee considers desirable in the proper conduct of its business (any such non-Required Improvement being referred to as an "OPTIONAL Improvement"); provided that the Facility Lessee shall prevent any Optional Improvement from being made that would decrease the then current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to the making of such Optional Improvement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease), or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160.
OPTIONAL IMPROVEMENTS. The Facility Lessee at any time may, without expense to the Owner Lessor and without the consent of any other Lease Financing Party, make or cause to be made any Improvement to the Facility as the Facility Lessee considers necessary or desirable in the proper conduct of its business (any such non-Required Improvement being referred to as an "OPTIONAL IMPROVEMENT"); PROVIDED that no Optional Improvement to the Facility shall, other than in an immaterial respect, diminish the current or residual value, remaining useful life or utility of the Facility below the current or residual value, remaining useful life or utility thereof immediately prior to such Optional Improvement, assuming the Facility shall then be in the condition required to have been maintained by the terms of this Facility Lease, or cause the Undivided Interest to become "limited use" property, within the meaning of Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc. 76-30, 1976-2 C.B. 647.
OPTIONAL IMPROVEMENTS. So long as no Lease Event of Default set forth in clauses (a) or (b) of Section 17 hereof shall have occurred and be ---------- continuing, the Facility Lessee at any time may, without expense to the Owner Lessor or the Owner Participant and without the consent of any other Lease Financing Party make, cause to be made, or permit to be made any Improvement as the Facility Lessee considers desirable in the proper conduct of its business (any such non-Required Improvement being referred to as an "Optional -------- Improvement"); provided that the Facility Lessee shall prevent any Optional ----------- Improvement from being made that would decrease the then current value, residual value, utility or remaining useful life of the Facility by more than a de minimis amount below the then current or residual value, the remaining useful life or the utility thereof (as measured immediately prior to the making of such Optional Improvement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease), or cause the Facility to become "limited-use" property within the meaning of Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc. 76-30, 1976-2 C.B. 647.
OPTIONAL IMPROVEMENTS. If requested by Lessee in writing within six (6) months following the Commencement Date (with the exception of sub-paragraph A below, which must be requested within thirty (30) days following the mutual execution and delivery of this Lease and installed prior to the Commencement Date), Lessor agrees to install any or all of the following, all of which shall be installed in a good and workmanlike manner on a time schedule, in a manner and at a cost mutually agreed upon by Lessor and Lessee:
A) If requested by Lessee within thirty (30) days following the mutual execution and delivery of this Lease, the interior concrete floor of the Building shall be sealed (term = 5-year amortization);
B) Install asphalt paving on the Land to provide 250 additional parking spaces (term = 10-year amortization); and/or
C) Install gravel paving on the Land to provide 250 additional parking spaces (term = 5-year amortization). In the event that Lessee exercises the option to require Lessor to install any one or more of the items set forth in this Section 7.2 (A)-(C), the cost of such items shall be determined through competitive bidding, with Lessee having the right to determine the successful bid. At Lessee's option, Lessee shall either pay for the cost of installation of such optional item(s) or Lessor shall pay for the cost of the installation of such optional item(s) and such cost, together with interest thereon at the annual rate of nine percent (9%), shall be amortized over the indicated term for each such item and Lessee shall reimburse Lessor for such costs occurring during the initial term or any renewals of the Lease by adding them to the monthly rent payments payable by Lessee to Lessor. Lessor's obligations pursuant to Section 7.1 and the optional improvement which Lessee elects to have Lessor perform pursuant to Section 7.2 (A) shall be referred to herein as the "Lessor's Work."
OPTIONAL IMPROVEMENTS. Licensee anticipates installing Permanent Snack bar, announcers booth and storage sheds (“Optional Improvements”). The design and location for the Optional Improvements shall be subject to City approval. The failure of Licensee to install Optional Improvements mentioned in this Section 5.G. shall not constitute a default or be grounds for termination of this License.
OPTIONAL IMPROVEMENTS. (a) Except in connection with any Equipment Replacements, Lessee shall not make any alterations, additions or improvements to the Facility (“Optional Improvements”) unless and until the Lessor has consented in writing to such Optional Improvements. Lessor’s consent to any Optional Improvements may be withheld in its commercially reasonable discretion. Lessor may elect in its sole discretion to fund the costs of any Optional Improvements.
(b) In connection with making any Optional Improvements, Lessee shall ensure that the Optional Improvements: (i) are completed in accordance with the Standards; (ii) are free and clear from all Liens other than the Lessee Permitted Liens; and (iii) do not diminish the value, cost efficiency, operating capacity, reliability, utility, residual value, or remaining useful life of the Facility. Subject to Lessor’s rights in Section 8.2(a), Lessee shall be responsible for executing all agreements and obtaining any required Governmental Approvals, in its name, associated with making any Optional Improvements and as between Lessor and Lessee, Lessee shall be responsible for any and all work required to complete any Optional Improvements. Lessee shall be responsible for obtaining all third-party consents and Governmental Approvals required in connection with making any Optional Improvements on and prior to the date when required under Applicable Law or relevant Project Document, as applicable.
(c) At least [***] before the proposed commencement of any construction or installation work to implement the approved Optional Improvements, Lessee shall furnish to Lessor for its review and approval any related plans and specifications, drafts of Material Project Documents, names and addresses of contractors, drafts of applications for Governmental Approvals or amendments to existing Project Governmental Approvals, drafts of third-party consents, and proposed instruments of indemnification against any and all claims, costs, expenses and damages and liabilities which may arise in connection with such work, such approval not to be unreasonably withheld, conditioned or delayed.
(d) Immediately upon any Optional Improvement or any component thereof becoming incorporated or installed in or attached to the Facility, without further act (i) title to such Optional Improvement and such components thereof will thereupon vest in Lessor, subject only to Lessee Permitted Liens, (ii) such Optional Improvement will become subject to this Lease Agreement a...
OPTIONAL IMPROVEMENTS