Common use of Renewal Options Clause in Contracts

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 5 contracts

Sources: Triple Net Office Lease Agreement, Triple Net Office Lease Agreement (Franklin Financial Network Inc.), Triple Net Office Lease Agreement (Franklin Financial Network Inc.)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of MurfreesboroFranklin, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 5 contracts

Sources: Triple Net Office Lease Agreement (Franklin Financial Network Inc.), Triple Net Office Lease Agreement (Franklin Financial Network Inc.), Triple Net Office Lease Agreement (Franklin Financial Network Inc.)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the prevailing market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; Basic Rental for the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would subject Option Term shall be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection accordance with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.following:

Appears in 3 contracts

Sources: Triple Net Office Lease Agreement (Franklin Financial Network Inc.), Triple Net Office Lease Agreement (Franklin Financial Network Inc.), Triple Net Office Lease Agreement (Franklin Financial Network Inc.)

Renewal Options. a. Provided that Tenant is not in default under this Lease, Tenant shall have the right and option to renew extend the Initial Term of this Lease perpetually, for renewal term(s) of one (“Renewal Option”1) for two (2) successive renewal periods of five (5) years year each (each, an “Option a "Renewal Term”); provided, however, the Renewal Option is contingent ") upon the following: (i) there is not an Event written mutual agreement of Default beyond all applicable cure period(s) at the time Tenant gives both Landlord notice of and Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option its option to renew by giving Landlord written notice at least one hundred eighty (180) not less than 90 days prior to the expiration of the current TermInitial Term or the Renewal Term then in effect as the case may be. If Tenant fails to give exercise its options in the time periods or in the manner provided herein, such options shall be deemed to have lapsed, terminated and shall be of no further force or effect without any further action or notice required on the part of Landlord; provided, however, before such termination becomes effective, Landlord shall first make a good faith effort to Landlord prior notify Tenant of Tenant's failure to the 180-day period, then timely exercise an option to renew and Tenant shall forfeit then have fifteen days from receipt of Landlord's notice within which to provide the Renewal Option. If Tenant exercises the Renewal Optionnotice of exercise of such renewal which, if then during the Option Termtimely provided, Landlord and Tenant’s respective rights, duties and obligations shall be governed by deemed an effective renewal of this Lease. All of the terms and conditions of this Lease shall remain in full force and effect during any Renewal Term(s). If Tenant exercises its options as set forth herein, the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term Termination Date shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length last day of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant Renewal Term then in the Area (such effect, unless sooner terminated as moving expense allowanceprovided herein. The Initial Term of this Lease, free rent periods, and lease assumptions and take over provisionsas extended by any Renewal Term(s), if anyapplicable, but specifically excluding shall hereinafter be referred to as the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option "Term.

Appears in 3 contracts

Sources: Lease Agreement, Lease Agreement, Lease Agreement

Renewal Options. a. Provided Tenant is not in default of any of the provisions of this Lease, Tenant may renew this lease as described below: (b) If a Renewal Option is set forth in paragraph 36 (a) above, then this Lease will be automatically renewed and extended for the term set forth in the Renewal Option unless Tenant gives to Landlord, at least ninety (90) days before the term of this Lease (or any renewal or extension) expires, written notice that this Lease shall not be so renewed. If there is no Renewal Option set forth above, or if any and all Renewal Options have been exercised or renewed, then this Lease will be automatically renewed for successive Terms of one (1) year each unless Tenant give to Landlord, at least ninety (90) days before the Term of this Lease (or any renewed or extended Term) expires, written notice that this Lease shall not be so renewed. Notwithstanding the above, Landlord shall have the right and option to renew prevent any automatic renewal of this Lease, by giving Tenant written notice of termination of the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration end of the then current Term; (ii) no event has occurred that upon term, which notice or the passage of time would constitute an Event of Default, unless Landlord has shall be given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty thirty (18030) days prior to the expiration end of the current Lease Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Each extended Term shall be upon the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboroterms, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilitycovenants, and location. Such determination shall take into account all relevant factorsconditions as provided in this Lease, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option rent and any additional rent during any extended Term to be adjusted in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection accordance with the applicable Option TermTerms of this Lease. 37- ADDENDUM. (a) Exhibit “A”, “Rules and Regulations”, as per Paragraph 27 hereof. (b) Security Deposit transferred from prior lease. TENANT INITIALS /s/ LW 7

Appears in 2 contracts

Sources: Lease Agreement (Iradimed Corp), Lease Agreement (Iradimed Corp)

Renewal Options. a. If there is no then existing event of default by Tenant under the terms of this Lease, Tenant may extend the Lease Term by five (5) years ("Renewal Term") by giving written notice to Landlord ("Renewal Notice") at least 12 months prior to the termination of the original Lease Term. If Tenant exercises its option to renew this Lease for five (5) years, the Base Rental Rate for the five (5) year renewal period shall be an agreed upon amount greater than or equal to $13.00 per annum, per square foot of Rentable Floor Area of Demised Premises but less than or equal to $16.00 per annum, per square foot of Rentable Floor Area of Demised Premises. If Landlord and Tenant cannot agree by the end of the first month of the tenth Lease Year on the amount of Base Rental Rate for the Renewal Term, Tenant may give Landlord written notice by the end of the second month of the tenth Lease Year that it accepts a Base Rental Rate of $16.00 per annum, per square foot of Rentable Floor Area of Demises Premises. If Landlord and Tenant do not agree on the Base Rental Rate and Tenant fails to timely give such notice, the Renewal Option shall be deemed terminated. In the event of the exercise of the Renewal Option, Landlord will provide a "Construction Allowance" equal to $5.00 per square foot of Rentable Floor Area of Demised Premises. Such Construction Allowance shall be administered in a manner consistent with Exhibit "D" of this Lease (but Landlord shall have no obligation to perform the work described in Paragraph 3(b) of Exhibit "D-1") and Tenant may also receive reimbursement from such Construction Allowance (upon presentation of valid, paid invoices) for permanent leasehold improvements constructed by Tenant in the Demised Premises at any time from and after the beginning of the eighth Lease Year. Landlord shall not be required to undertake any work other than work to be paid for from such Construction Allowance remaining after the above reimbursements to Tenant or paid for by Tenant. Tenant agrees to pay landlord's construction management fees in the same percentage amount set forth in Exhibit "D" with respect to the renewal work. The other terms of the Lease will remain unchanged during the Renewal Term. Tenant's option is to renew the Lease under the terms and conditions described herein for the entire Demised Premises, including Expansion Space and First Offer Space. Tenant shall not have the right and an option to renew the Lease (“Renewal Option”) Term only for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration a portion of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Demised Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 2 contracts

Sources: Lease Agreement (TSW International Inc), Lease Agreement (Indus International)

Renewal Options. a. Provided Tenant is not in default of any of the provisions of this Lease, Tenant may renew this lease as described below: (b) If a Renewal Option is set forth in paragraph 36 (a) above, then this Lease will be automatically renewed and extended for the term set forth in the Renewal Option unless Tenant gives to Landlord, at least ninety (90) days before the term of this Lease (or any renewal or extension) expires, written notice that this Lease shall not be so renewed. If there is no Renewal Option set forth above, or if any and all Renewal Options have been exercised or renewed, then this Lease will be automatically renewed for successive Terms of one (1) year each unless Tenant give to Landlord, at least ninety (90) days before the Term of this lease (or any renewed or extended Term) expires, written notice that this Lease shall not be so renewed. Notwithstanding the above, Landlord shall have the right and option to renew prevent any automatic renewal of this Lease, by giving Tenant written notice of termination of the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration end of the then current Term; (ii) no event has occurred that upon term, which notice or the passage of time would constitute an Event of Default, unless Landlord has shall be given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty thirty (18030) days prior to the expiration end of the current Lease Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Each extended Term shall be upon the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboroterms, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilitycovenants, and location. Such determination shall take into account all relevant factorsconditions as provided in this Lease, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option rent and any additional rent during any extended Term to be adjusted in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection accordance with the applicable Option TermTerms of this Lease. 37- ADDENDUM. (a) Exhibit “A”, “Rules and Regulations”, as per Paragraph 27 hereof. (b) Security Deposit transferred from prior lease.

Appears in 2 contracts

Sources: Lease Agreement (Iradimed Corp), Lease Agreement (Iradimed Corp)

Renewal Options. a. SECTION 31.1. Provided that the Tenant is not in default with respect to any of its obligations to the Landlord under and pursuant to the terms and conditions of this Lease at the time each Option (as such term is hereinafter defined) is to be exercised, the Tenant shall have the right and option to renew the this Lease (“Renewal Option”) for two (2) successive renewal periods of additional five (5) years year periods [the option with respect to each additional five (each5) year period is referred to herein as an "OPTION" and, collectively, all of the options granted herein are referred to as the "OPTIONS"] as follows: OPTION PERIOD 1 shall commence on July 1, 2002 and shall continue up to and including June 30, 2007. OPTION PERIOD 2 shall commence on July 1, 2007 and shall continue up to and including June 30, 2012. (each of the aforementioned option periods is individually referred to herein as an "OPTION PERIOD" and, collectively, all of the aforementioned Option Term”Periods are referred to herein as "OPTION PERIODS"); provided, however, SECTION 31.2. Each Option granted to the Renewal Option is contingent upon Tenant pursuant to the following: (i) there is not an Event provisions of Default beyond all applicable cure period(s) at Section 31.1 hereof shall be exercised by the time Tenant gives giving written notice to the Landlord notice of the Tenant’s intention 's intent to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one not less than one-hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord Initial Term or not less than one-hundred eighty (180) days prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during expiration of the Option TermPeriod which is then in effect, Landlord and Tenant’s respective rights, duties and obligations shall be governed by as the terms and conditions of the Lease, except as provided otherwise in this Sectioncase may be. Time is of the essence in exercising the Renewal Optionexercise of the Options and should Tenant fail to exercise any of said Options by timely notice, said Options shall lapse and be of no further force or effect. c. The Base Rental for an SECTION 31.3. In the event that the Tenant exercises the Option Term with respect to any Option Period, the Landlord and the Tenant hereby agree that this Lease shall be continue in full force and effect and remain unamended during the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, includingapplicable Option Period AND specifically, without limitation, that the following matters: Fixed Rent payable by the credit standing of Tenant; Tenant to the length of Landlord during such Option Period shall be increased on each anniversary date from and after the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant Commencement Date in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection accordance with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative provisions of Tenant in connection with the applicable Option TermArticle 8 hereof.

Appears in 2 contracts

Sources: Lease Agreement (Comfort Systems Usa Inc), Lease Agreement (Comfort Systems Usa Inc)

Renewal Options. a. (a) Tenant shall have the right and option to renew the this Lease (“Renewal Option”) with respect to the entirety of the Premises (and including, if applicable, the entirety of the Expansion Premises taken pursuant to Rider 2) for two (2) successive renewal periods consecutive additional terms of five (5) years each (each, an each a Option Renewal Term”); provided, however, the Renewal Option is contingent commencing upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice initial Term or the passage of time would constitute an Event of Defaultfirst Renewal Term, unless as applicable. Each Renewal Option must be exercised, if at all, by written notice given by Tenant to Landlord has given notice of default and Tenant is diligently attempting not later than twelve (12) months prior to cure such event; and (iii) Tenant is occupying the Premises. Following expiration commencement of the final Option Renewal Term. If Tenant properly exercises a Renewal Option, then references in this Lease to the Term allowable hereundershall be deemed to include the Renewal Term. Tenant’s rights under this Section 2.6 shall, at the option of Landlord, be null and void and Tenant shall have no further right to renew this Lease if on the Lease date Tenant exercises a Renewal Option or on the date immediately preceding the commencement date of a Renewal Term (i) a Default beyond the applicable cure period shall have occurred and be continuing hereunder, or (ii) the named Tenant hereunder or pursuant to this Section 5a Permitted Transfer (defined below), a Tenant Affiliate, does not occupy the entire Premises. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180b) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant properly exercises the a Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by such Renewal Term all of the terms and conditions of set forth in this Lease as applicable to the LeasePremises during the initial Term shall apply during the Renewal Term, including without limitation the obligation to pay Rent Adjustments, except as provided otherwise that (i) Tenant shall accept the Premises in this Section. Time is of their then “as-is” state and condition and Landlord shall have no obligation to make or pay for any improvements to the essence in exercising Premises, and (ii) during the Renewal Option. c. The Term the Monthly Base Rental for an Option Term Rent payable by Tenant shall be the Fair Market Rental Rate. Value during the Renewal Term as hereinafter set forth, except that in no event shall Monthly Base Rent during a Renewal Term be (i) less than ninety percent (90%) of the Monthly Base Rent in effect during the month immediately preceding the Renewal Term, or (ii) greater than one hundred fifteen percent (115%) of the Monthly Base Rent in effect during the month immediately preceding the Renewal Term. (c) For purposes of this Section, the term “Fair Market Rental RateValue” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesbororate, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances additional rent adjustment and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, charges and lease assumptions and take over provisionsincreases, if any, but specifically excluding the value for space comparable in size, location and quality of improvements installed in the Premises at Tenant’s cost)under primary lease (and not sublease) to new or renewing tenants, and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof a comparable term with base rent adjusted for the Option Term relative tenant improvement allowance, if applicable and taking into consideration such amenities as existing improvements, view, floor on which the Premises are situated and the like, situated in question)comparable science/laboratory buildings in Emeryville or Berkeley. For purposes of such calculation, it will only be assumed that Landlord is paying a representative of The Fair Market Value shall not take into account any Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermAlterations or other improvements paid for by Tenant.

Appears in 2 contracts

Sources: Sub Sublease (Carmot Therapeutics Inc.), Sub Sublease (Carmot Therapeutics Inc.)

Renewal Options. a. So long as Tenant shall have is not in default under the terms of this Lease, Landlord does hereby grant to Tenant the right and option to extend and renew the fifteen (15) year Term of this Lease (“Renewal Option”herein called the "Initial Term") for two three (23) successive renewal periods additional period(s) of five (5) years each (eachherein the "Renewal Term(s)"), an “Option beginning on the date immediately following the Expiration Date of the Initial Term or the preceding Renewal Term”); provided, howeveras appropriate, the Renewal Option is contingent upon the following: same terms, conditions, covenants and provisions as are provided in this Lease (i) there is not an Event except the Rent, which will be subject to adjustment as provided in Section 4.02 hereof). Unless in respect of Default beyond all applicable cure period(s) at each Renewal Term Landlord or Tenant notifies the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Defaultother party, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (1801) days year prior to the expiration of the current Initial Term or Renewal Term then in effect, of its intent not to extend and renew the Term of this Lease, then the Tenant shall be deemed to have exercised its Renewal Option in respect of that Renewal Term. If Tenant fails the Renewal Option is exercised as provided herein, then this Lease shall be amended to give notice reflect the changes which will result from such extension of the Term of this Lease, including the modification to Landlord prior all references in the Lease to the 180-day period"Term" thereof (as defined in Section 3.01) to include the Renewal Term as well as the Initial Term. IV -- RENT ---------- 4.01 RENT. MONTHLY RENT. Commencing on January 31, then 1999, Tenant shall forfeit pay to Landlord, as Rent for the Renewal Option. If Tenant exercises Premises, the Renewal Optionannual sum specified in Item E of the Basic Lease Provisions, then payable in equal consecutive monthly installments as specified in Item F of the Basic Lease Provisions, in advance, on or before the first day of each and every calendar month during the Option TermTerm of this Lease; provided, Landlord and Tenant’s respective rightshowever, duties and obligations that if the Expiration Date shall be governed by a day other than the terms and conditions first day of a calendar month, the Rent installment for such last fractional month shall be prorated on the basis of the Lease, except as provided otherwise number of days during the month this Lease was in this Section. Time is effect in relation to the total number of the essence days in exercising the Renewal Optionsuch month. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 2 contracts

Sources: Lease Agreement (Intimate Brands Inc), Lease Agreement (Intimate Brands Inc)

Renewal Options. a. (a) Landlord hereby grants Tenant shall have the right and option to renew (the Lease (“Renewal Option”) the Initial Term (not to include, for two purposes of this Section, the Renewal Terms, as hereinafter defined) for four (24) successive renewal periods additional terms of five sixty (560) years months each (each, an a Option Renewal Term” and collectively, the “Renewal Terms”), commencing as of the date immediately following the expiration of the then-current Term, such option to be subject to the covenants and conditions set forth in this Section. (b) Tenant shall give Landlord written notice (the “Renewal Notice”) of Tenant’s election to exercise its Renewal Option not later than twelve (12) months prior to the expiration of the then-current Term; providedprovided that Tenant’s failure to give the Renewal Notice by said date, howeverwhether due to Tenant’s oversight or failure to cure any existing defaults or otherwise, shall render the Renewal Option is contingent upon the following: null and void and of no further force or effect. (ic) there is Tenant shall not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention be permitted to exercise the Renewal Option or at any time during which Tenant is in default under this Lease, subject to applicable notice and grace periods. If Tenant fails to cure any default under this Lease prior to the commencement of the upcoming Renewal Term, subject to applicable notice and grace periods, the Renewal Terms shall be immediately cancelled, unless Landlord elects to waive such default, and Tenant shall forthwith deliver possession of the Premises to Landlord as of the expiration or earlier termination of the then-current Term of this Lease. (d) Tenant shall be deemed to have accepted the Premises in “as-is” condition as of the commencement of each Renewal Term; , subject to any other repair and maintenance obligations of Landlord under this Lease, it being understood and agreed that Landlord shall have no additional obligation to renovate or remodel the Leased Premises or any portion of the Project as a result of Tenant’s renewal of this Lease. (e) The covenants and conditions of this Lease in force during the Initial Term, as the same may be modified from time to time, shall continue to be in effect during the Renewal Terms, except as follows: (i) The “Commencement Date” and “Rent Commencement Date” for the purpose of this Lease shall be the first day of the applicable Renewal Term. (ii) no event has occurred that upon notice or The Base Rent for the passage first year of time would constitute each Renewal Term shall be an Event amount equal to the Base Rent for the immediately prior year, plus ten (10%) percent, which Base Rent shall then remain fixed for the remainder of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and the applicable Renewal Term. (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunderfourth Renewal Term, Tenant shall have no further right to renew the Lease pursuant to or extend this Section 5Lease. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 2 contracts

Sources: Garage Lease (Virgin Trains USA LLC), Garage Lease (Virgin Trains USA LLC)

Renewal Options. a. Tenant shall have (a) Lessor hereby grants to Lessee the right and option to renew extend the term of this Lease for the following periods (each, a “Renewal OptionTerm): (i) for a period of ten (10) years commencing on the date that is the day after the expiration of the Base Term and ending on the tenth (10th) anniversary of the expiration of the Base Term (the “First Renewal Term”); and (ii) for two additional terms of ten (2) successive renewal periods of five (510) years each (each, an the Option TermAdditional Renewal Terms”); provided, however, with each Additional Renewal Term commencing on the Renewal Option date that is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at day after the expiration of the current preceding Renewal Term; . (iib) no event has occurred that upon notice or In order to exercise its option to extend this Lease for any Renewal Term, the passage of time would constitute an Event of Default, unless Landlord has given following procedure shall be followed: Lessee shall give Lessor written notice of default and Tenant is diligently attempting its desire to cure such event; and discuss exercising an option to extend the term of this Lease not less than twenty (iii20) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the Base Term or the then current Renewal Term, as the case may be (a “Pre-Exercise Notice”). Lessee and Lessor shall promptly after Lessor’s receipt of such Pre-Exercise Notice, for a period not in excess of sixty (60) days (the “Pre-Exercise Period”), attempt in good faith to agree to the Base Rent to be paid for the then applicable Renewal Term. If Tenant fails The Base Rent to give notice which the parties will attempt to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations agree shall be governed by the terms and conditions equal to 100% of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental RateValue anticipated to be in effect as of the commencement date of such Renewal Term. On or before the expiration of the Pre-Exercise Period, Lessee may serve Lessor with a notice confirming its intent to renew (the Intent to Renew Notice”), time being of the essence. If Lessee fails to provide such notice, Lessee will be deemed to have waived its right to renew this Lease. If Lessee delivers its Intent to Renew Notice and the parties have agreed to the Fair Market Rental Rate” shall mean Value during the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitationPre-Exercise Period, the following matters: agreed rent shall become the credit standing Base Rent during the applicable Renewal Term. If Lessee delivers its Intent to Renew Notice but the parties were unable to agree on the Fair Market Rental Value during the Pre-Exercise Period, the Fair Market Rental Value shall be determined by the Appraisal Procedure. Base Rent during each Renewal Term shall be payable monthly in advance. (c) The right of Tenant; Lessee to extend the length term of this Lease for any Renewal Term is contingent upon there not being any Lease Event of Default in existence on the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value date of improvements installed in the Premises at TenantLessee’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes exercise of such calculation, it will only be assumed right or on the date that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Renewal Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termcommences.

Appears in 2 contracts

Sources: Lease Agreement (Vistra Energy Corp), Lease Agreement (Vistra Energy Corp)

Renewal Options. a. (a) Tenant shall have the right and option to renew the this Lease (“Renewal Option”) with respect to the entirety of the Premises for two (2) successive renewal periods consecutive additional terms of five (5) years each (each, an each a Option Renewal Term”), commencing upon expiration of the initial Term or the first Renewal Term, as applicable. Each Renewal Option must be exercised, if at all, by written notice given by Tenant to Landlord not earlier than eighteen (18) months and not later than twelve (12) months prior to commencement of the Renewal Term. If Tenant properly exercises a Renewal Option, then references in this Lease to the Term shall be deemed to include the Renewal Term. Tenant’s rights under this Section 2.6 shall, at the option of Landlord, be null and void and Tenant shall have no right to renew this Lease if on the date Tenant exercises a Renewal Option or on the date immediately preceding the commencement date of a Renewal Term a Default beyond the applicable notice and cure period shall have occurred and be continuing hereunder; provided, however, if Tenant cures such Default within the applicable periods provided under this Lease, then the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5be reinstated. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180b) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant properly exercises the a Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by such Renewal Term all of the terms and conditions of the Lease, except as provided otherwise set forth in this Section. Time is of Lease as applicable to the essence in exercising Premises during the initial Term shall apply during the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factorsTerm, including, without limitation, the following matters: obligation to pay Rent Adjustments, except that (i) Tenant shall accept the credit standing of Tenant; Premises in their then “as-is” state and condition, and Landlord shall have no obligation to make or pay for any improvements to the length Premises, and (ii) during the Renewal Term the Monthly Base Rent payable by Tenant shall be the Fair Market Value during the Renewal Term as hereinafter set forth, except that in no event shall Monthly Base Rent during a Renewal Term be less than one hundred percent (100%) of the term; Monthly Base Rent in effect during the fact that Landlord will experience no vacancy period month immediately preceding the Renewal Term. (c) For purposes of this Section, the term “Fair Market Value” shall mean the base rental rate, including periodic rent adjustment, for space comparable in size, location and that Tenant will quality of the Premises under primary lease (and not suffer sublease) to new or renewing tenants, for a comparable term with base rent adjusted for the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other relative tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense improvement allowance, free rent periodsif applicable, and lease assumptions taking into consideration such amenities as existing improvements and take over provisions, if any, non-removable fixtures in place at the time of such renewal (but specifically excluding not including the value of improvements installed in any Tenant Alterations made to the Premises at following the Rent Commencement Date and the completion of Tenant’s costinitial build-out), view, floor on which the Premises is situated and whether adjustments are then being made the like, situated in determining the rental rates for renewals comparable science/laboratory buildings in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermEmeryville and Berkeley.

Appears in 2 contracts

Sources: Sublease (Dynavax Technologies Corp), Office/Laboratory Lease (Dynavax Technologies Corp)

Renewal Options. a. 26.1 Tenant shall have is hereby granted the right and option to renew the Lease (“Renewal Extension Option”) to extend the term of the Lease for up to two (2) successive renewal consecutive periods of five (5) years Lease Years each (each, an respectively Option First Extension Term” and “Second Extension Term”); provided. Each Extension Option may be exercised only by giving Landlord irrevocable and unconditional written notice thereof no earlier than eighteen (18) months and no later than nine (9) months prior to the commencement of the Extension Term. Tenant may not exercise the Extension Option if Tenant is in default under the Lease beyond the expiration of any applicable cure period either at the date of said notice or at any time thereafter prior to commencement of an Extension Term. Upon exercise of the Extension Option, howeverall references in the Lease to the Term shall be deemed to be references to the Term as extended pursuant to the Extension Option. 26.2 Each Extension Term shall be on the same terms, covenants and conditions as are contained in the Renewal Option is contingent upon the following: Lease, except that (i) there is not an Event of Default beyond all applicable cure period(s) at no additional extension option shall be conferred by the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; Extension Option, (ii) no event has occurred that upon notice or Base Rent applicable to the passage of time would constitute an Event of DefaultPremises for each Extension Term shall be determined as provided below, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying any initial rent abatement, concession or allowance which are in the Premisesnature of economic concessions or inducements shall not be applicable to any Extension Term. Following expiration of the final Option Term allowable hereunderIn addition to Base Rent, Tenant shall have no further right to renew the Lease pursuant to pay Additional Rent, and other Rent during each Extension Term as provided in this Section 5Lease. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration 26.3 Base Rent per annum per rentable square foot of the current Term. If Tenant fails to give notice to Landlord prior to Premises for the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Extension Term shall be one hundred percent (100%) of the Fair Current Market Rental RateRate for lease terms commencing on or about the date of commencement of the Extension Term. The term Fair Current Market Rental Rate” shall mean means the market prevailing net rental rate per rentable square foot under office leases recently executed for the time period such determination is being made for office comparable space in same class office the Building and in comparable buildings in the area in which the Building is located. The determination of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination Current Market Rate shall take into account all relevant factors, including, without limitationconsideration that this is a net lease; any differences in the size of space being leased, the following matters: location of space in the credit standing building and the length of lease terms; any differences in definitions of rentable square feet or rentable area with respect to which rental rates are computed; the value of rent abatements, allowances (for demolition, space planning, architectural and engineering fees, construction, moving expenses or other purposes), the creditworthiness of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant pertinent factors. The Current Market Rate may include an escalation of a fixed net rental rate (based on a fixed step or index) then prevailing in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termmarket.

Appears in 2 contracts

Sources: Office Lease Agreement (Wells Real Estate Fund Xi L P), Office Lease Agreement (Wells Real Estate Fund Xi L P)

Renewal Options. a. Tenant shall have two successive options to extend the right and option to renew the Term of this Lease for an additional five years (“Renewal Option”60 months) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: following terms: (ia) there is not an Event of Default beyond all applicable cure period(s) at the time Each such option may be exercised by Tenant gives Landlord only by written notice of Tenant’s intention exercise to exercise the Renewal Option or at the expiration of the current Term; Landlord no earlier than nine (ii9) months and no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and later than six (iii6) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current then-effective Term. If Tenant fails to give notice to Landlord prior to . (b) Upon such exercise, the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations parties shall be governed by obligated under all the terms and conditions of this Lease through the Leaseextended Term, except as provided otherwise in this Section. Time is that Monthly Rent during the extension of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be equal to the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the fair market rental rate rent for the time period Premises. (c) Within 20 days of Tenant’s notice of exercise, Landlord shall propose a fair market Monthly Rent for the extended Term. The parties shall negotiate in good faith, but if they are unable to agree upon such Monthly Rent by 30 days after the delivery of Landlord’s proposal, then either party may elect to cause such Monthly Rent to be determined by reference to the appraised fair market rent. Such election shall be made by such party by notice to the other party, including in such notice the designation of an appraiser. The other party may accept such appraiser or designate another appraiser within 10 days of such notice. If it does not designate another appraiser in such period, it shall be deemed to have accepted the first appraiser. If a second appraiser is designated, the two appraisers shall promptly appoint a third appraiser. (d) Each appraiser shall determine the fair market rent for the Premises for the extended Term by reference to all factors deemed appropriate in his or her professional opinion, and notify the parties within 30 days of the date of appointment of the last appraiser of such fair market rent. The Monthly Rent for the extended Term shall be calculated by reference to the fair market monthly rent determined by the single appraiser or, if there are three appraisers, the mean average of the two closest fair market monthly rents. There shall be no pre-set floor or ceiling on the appraisers’ determination is being made for of Monthly Rent. (e) All appraisers under this appraisal provision shall be independent certified professional appraisers with at least five years’ experience appraising office space in same class office buildings properties/business park complexes in the area North San ▇▇▇▇ area. If there are three appraisers, each party shall pay for the cost of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, its designated appraiser and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length 50% of the term; cost of the fact that third appraiser. If there is only one appraiser, each party shall pay 50% of the cost of such appraiser. (f) Tenant may not exercise its option to renew the Term if at the time of exercise an Event of Default has occurred and is continuing under this Lease. If an Event of Default has occurred and is continuing at the commencement of the extended Term, Landlord will experience no vacancy period and that Tenant will not suffer may, in addition to its other remedies under this Lease, elect to terminate such extension by notice in writing to Tenant, whereupon the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable Term shall expire without any such extension. (g) The renewal options are personal to Tenant in and are not transferable via assignment of the Area (such as moving expense allowanceLease or otherwise, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission except to a representative of Tenant in connection with the applicable Option TermPermitted Transferee.

Appears in 2 contracts

Sources: Office Lease (Eargo, Inc.), Office Lease (Eargo, Inc.)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal consecutive options (the "Renewal Options") to extend the Lease Term for consecutive periods of five (5) years each (eachthe "First and Second Renewal Periods" respectively). The rental rate for each Renewal Period shall be equal to the prevailing market rent for properties similar to the Building in quality, an “Option Term”); providedsize, however, location and use in Miami Florida on the date of the exercise of the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration Option, taking into account size and location of the current Term; (ii) no event has occurred that upon notice or Premises, any rent concessions, moving concessions, tenant allowances, and brokerage commissions prevailing in the passage of time would constitute an Event of Defaultmarket at such time, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration as well as Tenant's creditworthiness, length of the final Option Term allowable hereunderterm, Tenant shall have no further right and extent of services provided or to renew the Lease pursuant to this Section 5. b. be provided. Tenant shall exercise the Renewal Option by giving Landlord notice at least its option rights not later than one hundred eighty (180) days prior to before the expiration date of the then current Lease Term. If Landlord shall provide Tenant fails to give with its determination of the prevailing market rent within ten (10) days after receipt of Tenant's notice to exercise its Renewal Option. Tenant shall have twenty (20) days after receipt of Landlord's notice in which to notify Landlord prior of any objection thereto. In the event Tenant notifies Landlord of its objection to `the 180-computation of such rental rate, then the parties shall negotiate in good faith for a period not to exceed thirty (30) days in order to come to agreement thereon. In the event the parties are unable to agree upon such rate within' such thirty (30) day period, then Tenant shall forfeit have the right, via written notice to Landlord within 10 days thereafter, to either revoke its exercise of the Renewal Option. If Tenant exercises Option or to have the Renewal Optionmatter submitted to arbitration as follows: Each party shall select at its sole cost and expense, then during within ten (10) days thereafter, an arbitrator with at least five (5) years of experience in the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions valuation of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area Miami area. Each such arbitrator shall submit its valuation of Murfreesborothe prevailing market rental rate in accordance herewith within ten (10) days after selection, Tennessee and if the valuations are within ten percent (the “Area”10%) of comparable condition for space of equivalent qualityeach other, size, utility, and location. Such determination then the valuations shall take into account all relevant factors, including, without limitation, be averaged together to arrive at the following matters: the credit standing of Tenant; the length prevailing market rent of the term; Premises. In the fact that Landlord will experience no vacancy period and that Tenant will not suffer event the costs and business interruption associated with moving its offices and negotiating valuations have a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area disparity greater than ten percent (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost10%), and whether adjustments are then being made the arbitrators shall select a third arbitrator, who shall submit his/her valuation in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection accordance with the Option Term in question if Landlord is in fact paying a brokerage commission foregoing within ten (10) days after selection. The two valuations which are the closest to a representative each other shall then be averaged together to arrive at the prevailing market rate. The cost of Tenant in connection with the applicable Option Termthird arbitrator shall be shared by the parties.

Appears in 2 contracts

Sources: Office Lease (Starmedia Network Inc), Office Lease (Starmedia Network Inc)

Renewal Options. a. (a) Tenant shall have has the conditional right and option to renew extend the Term of the Lease (“Renewal Option”) for two (2) successive renewal periods additional terms (the "First Option Term" and the "Second Option Term," respectively) of five (5) years each beyond the initial Term or the First Option Term (each, an “Option Term”); provided, however, as the Renewal Option is contingent case may be) at the Base Rent set forth in paragraph (b) below and upon the following: same terms and conditions set forth herein (except that there will be no further privilege of extension), provided that the following conditions are met: (i) there is not an Event Tenant notifies Landlord of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention its election to exercise the Renewal Option or at the expiration right of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice renewal granted hereby at least one hundred eighty nine (1809) days months and no more than twelve (12) months prior to the expiration of the current initial Term (defined in Section 1.24 hereof) or the First Option Term (as the case may be); (ii) at the time of the exercise of such right and for the remainder of the Term thereafter, there is no existing default which is not remedied within the applicable cure periods set forth in this Lease; (iii) the Lease has not terminated prior to the commencement of the applicable Option Term; and (iv) at the time of the exercise of such option and for the remainder of the Term thereafter, the original named Tenant is in possession of and occupying the entire Premises [it being the intent of the parties that this option is personal to the original named Tenant hereunder (i.e., it does not inure to the benefit of any subsequent Tenant, subtenant or assignee of the Lease) and if such original named Tenant is no longer in possession of and occupying the entire Premises, then this option is void]. (b) During the applicable Option Term, Tenant shall pay Landlord Base Rent equal to the Fair Market Rent (defined below), including escalations, for the Premises for such Option Term. The "Fair Market Rent," as used in this Section, shall mean the market annual base rental rate (plus any market appropriate annual escalations thereof) for comparable space in the Sterling, Virginia market for the applicable Option Term, taking into account all appropriate factors. Within thirty (30) days of Landlord's receipt of Tenant's notice of its exercise of the option, Landlord shall notify Tenant of the Base Rent applicable to the Option Term in question based upon the foregoing parameters. If Tenant notifies Landlord in writing within ten (10) business days of Tenant's receipt of Landlord's notice that Tenant agrees with Landlord's determination of the Fair Market Rent, then, provided the foregoing conditions thereto are met, the Term shall be extended for five (5) years beyond the Expiration Date. If Tenant disagrees with Landlord's determination of the Base Rent applicable to said Option Term, Tenant shall notify Landlord of such disagreement within ten (10) business days of Tenant's receipt of Landlord's notice. If Tenant fails to give notice to notify Landlord prior to within such ten (10) business day period that Tenant agrees or disagrees with Landlord's determination of the 180-day periodBase Rent, then Tenant shall forfeit be deemed to disagree with such determination, and in the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, event of such disagreement or deemed disagreement Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer negotiate in good faith to determine the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available appropriate Base Rent applicable to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the said Option Term in question)accordance with the foregoing parameters. For purposes In the event that the parties cannot agree upon the appropriate Base Rent within sixty (60) days of such calculationTenant's exercise of the option, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Base Rent applicable to the Option Term in question if Landlord is will be determined in fact paying a brokerage commission to a representative of Tenant in connection accordance with the applicable Option Term.following terms, the results of which shall be binding upon the parties:

Appears in 2 contracts

Sources: Deed of Lease (Sutron Corp), Deed of Lease (Sutron Corp)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods consecutive options (respectively, the “First Renewal Option” and the “Second Renewal Option” and collectively, the “Renewal Options”) to extend the Term of five this Lease. Each Renewal Option shall be for a term of twenty-four (524) years each months (eachrespectively, an the Option First Renewal Term” and the “Second Renewal Term” and collectively, the “Renewal Terms”); provided, however, the . Any Renewal Option is contingent upon the following: (i) there is not shall be void if an Event of Default beyond all applicable cure period(s) by Tenant exists, either at the time Tenant gives Landlord notice of Tenant’s intention to exercise of the Renewal Option or at the expiration time of commencement of the current Renewal Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Each Renewal Option must be exercised, if at all, by giving written notice from Tenant to Landlord notice at least one hundred eighty given not less than twelve (18012) days months prior to the expiration of the then current Term. If Tenant fails Landlord shall have the right to give cancel any Renewal Option in the event Landlord intends to redevelop the Premises, which shall be demonstrated by a submittal of redevelopment plans to the City of Palo Alto at any time during the Term; provided that Landlord delivers written notice to Tenant of Landlord prior to the 180-day period, then Tenant shall forfeit the having made such submittal within thirty (30) days after Landlord’s receipt of Tenant’s notice exercising its Renewal Option. If Tenant exercises the The Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations Terms shall be governed by upon the same terms and conditions of the as set forth in this Lease, except that the monthly Base Rent payable hereunder shall be as provided otherwise in this Sectionfollows: Tenant shall not be entitled to any tenant improvement allowance during any Renewal Term. Time is From and after the exercise of each Renewal Option (a) all references to “Expiration Date” shall be deemed to refer to the last day of the essence in exercising applicable Renewal Term, and (b) all references to “Term” shall be deemed to include the applicable Renewal Term. The Renewal Options are personal to Tenant and shall be inapplicable and null and void if Tenant assigns its interest under this Lease to any Transferee other than a Permitted Transferee. Tenant’s right to exercise the Second Renewal Option is contingent on Tenant having exercised the First Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Commercial Lease (Tesla Motors Inc)

Renewal Options. a. So long as this Lease is in full force and effect and Tenant is not in Default on the date that Tenant exercises a Renewal Option (as hereinafter defined), Tenant shall have the right and option to renew (the Lease (“Renewal Option”) to extend the Term for two all or any portion of the Premises for three (23) successive renewal additional periods of five (5) years each (each, an the Option TermRenewal Periods); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Prevailing Market Rate (as hereinafter defined), provided that the proposed Premises upon commencement of such Renewal Period and any other space on a partial floor that was formerly leased to Tenant gives prior to commencement of such Renewal Period shall each be commercially marketable units, as reasonably determined by Landlord, and otherwise in compliance with all Laws. Tenant shall provide Landlord written notice of Tenant’s intention desire to exercise extend the Renewal Option or at the expiration Term of the current Term; this Lease not less than (iii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Term if Tenant fails to give notice to Landlord occupies less than 50,000 square feet of the Building as of the commencement of the applicable Renewal Period, (ii) two hundred seventy (270) days prior to the 180-day periodexpiration of the Term if Tenant occupies 50,000 or more square feet and less than 75,000 square feet of the Building as of the commencement of the applicable Renewal Period, then or (iii) three hundred sixty (360) days prior to the expiration of the Term if Tenant occupies 75,000 or more square feet of the Building as of the commencement of the applicable Renewal Period (each, a “Renewal Notice Period”). Landlord shall forfeit provide Tenant with a written proposal setting forth Landlord’s determination of the Renewal OptionPrevailing Market Rate to extend the Term of this Lease within thirty (30) days of such notice. If Tenant exercises the Renewal Option, then during the Option TermThereafter, Landlord and TenantTenant shall have thirty (30) days from delivery of Landlord’s respective rights, duties and obligations shall be governed by the proposal to Tenant to enter into an amendment to this Lease agreeing on terms and conditions of such renewal of this Lease (the Lease“Negotiation Period”). If Landlord and Tenant are unable to agree on the Prevailing Market Rate within such Negotiation Period, except as provided otherwise in this Section. Time is of then the essence in exercising the Renewal Option. c. The Base Rental for an Option Term Prevailing Market Rate shall be determined by the Fair Market Rental RateThree Appraiser Method set forth below. The Fair Market Rental RateThree Appraiser Method” shall mean operate as follows; The Prevailing Market Rate shall be based upon the current fair market rental rate for the time period such determination is being made for renewals of comparable space in comparable Class A office space in same class office buildings in the area Westshore Business District submarket of MurfreesboroTampa, Tennessee Florida, including tenant improvement or other allowances, concessions (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, free rent), operating expense stops, and market real estate commissions, for deals executed within the following matters: the credit standing of twelve (12) months prior to Tenant; the length ’s exercise of the term; Renewal Option, provided that such prevailing market rate shall be based upon the fact that Landlord will experience no vacancy period the Base Year shall be adjusted to the calendar year in which the first year of the Renewal Period falls. The Prevailing Market Rate shall be determined by a board of three (3) qualified and that Tenant will not suffer impartial real estate appraisers, one of whom shall be named by Landlord, one by Tenant, and the costs and business interruption associated with moving its offices and negotiating two so appointed shall select a new lease; construction allowances and other tenant concessions that would third appraiser. Each member of the board of appraisers shall be available to tenants comparable to Tenant licensed in Florida as a real estate appraiser, specializing in the Area field of commercial office leasing in the Westshore Business District submarket of Tampa, Florida, having no less than ten (10) years’ experience in such as moving expense allowance, free rent periodsfield, and lease assumptions recognized as ethical and take over provisionsreputable within the field. Landlord and Tenant agree to make their appointments within twenty (20) days after Landlord and Tenant are unable to agree upon the Prevailing Market Rate. The two (2) appraisers selected by Landlord and Tenant shall select the third appraiser within ten (10) days after they both have been appointed, and each appraiser, within fifteen (15) days after the third appraiser is elected, shall submit his or her determination of the Prevailing Market Rate. The Prevailing Market Rate shall be the determination of the appraiser that is not the highest or the lowest (or, if anytwo (2) appraisers reach an identical determination, but specifically excluding the value determination of improvements installed in the Premises at Tenant’s costsuch two (2) appraisers), which determination shall be final and whether adjustments are then being made in determining binding on Landlord and Tenant. Landlord and Tenant shall each pay the rental rates for renewals in fee of the Area because appraiser selected by it, and they shall equally share the payment of concessions being offered by Landlord to Tenant (or the lack thereof for fee of the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthird.

Appears in 1 contract

Sources: Lease Agreement (PBSJ Corp /Fl/)

Renewal Options. a. 22.1 Subject to the provisions hereinafter set forth, Landlord hereby grants to Tenant shall have the right and an option to renew extend the Lease Term of this Lease, for a period of **** years, subject to variation pursuant to the terms of Section 23.4 and 25.4 below (the First Renewal OptionPeriod”) after the expiration of the initial Term, which First Renewal Period shall commence on the day after the Expiration Date (the “First Renewal Period Commencement Date”) and end on the day before the **** anniversary of the First Renewal Period Commencement Date and an option to extend the Term of this Lease, for two a period of ****, subject to variation pursuant to the terms of Section 23.4 and 25.4 below (2the “Second Renewal Period”) successive renewal periods after the expiration of five the First Renewal Period, which Second Renewal Period shall commence on the day after the expiration of the First Renewal Period (5the “Second Renewal Period Commencement Date”) years each and end on the day before the **** anniversary of the Second Renewal Period Commencement Date. 22.2 Each such option shall be exercisable by written notice (each, a “Renewal Notice”) from Tenant to Landlord of Tenant’s election to exercise said option given not later than twelve (12) months prior to the First Renewal Period Commencement Date or Second Renewal Period Commencement Date, as applicable. If Tenant’s then applicable option is not so exercised, said option and all future options shall thereupon expire. 22.3 Tenant may only exercise either such option, and an “Option Term”); providedexercise thereof shall only be effective, however, the Renewal Option is contingent upon the following: if (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise of said option and on the First Renewal Option Period Commencement Date or at the expiration Second Renewal Period Commencement Date, as applicable, this Lease is in full force and effect and no Event of the current Term; Default by Tenant exists, and (ii) inasmuch as said option is intended only for the benefit of the original Tenant named in this Lease and said Tenant has not assigned this Lease or sublet more than fifty percent (50%) of the Premises for substantially all of the remaining term other than through a Permitted Transfer. Without limitation of the foregoing, no event has occurred that upon notice sublessee or assignee other than an assignee through a Permitted Transfer shall be entitled to exercise said option. 22.4 Base Rent payable during each Renewal Period with respect to all space included in the passage Premises as of time would constitute an Event the First Renewal Period Commencement Date or Second Renewal Period Commencement Date, as applicable shall be equal to **** of Default, unless the Market Rent (as hereinafter defined). Landlord has given shall give Tenant written notice of default and the Market Rent, including yearly escalations, within thirty (30) days following written request by Tenant is diligently attempting but not earlier than fourteen (14) months prior to cure such event; and (iii) the First Renewal Period Commencement Date or Second Renewal Period Commencement Date, as applicable. If Tenant is occupying the Premises. Following expiration disagrees with Landlord’s determination of the final Option Term allowable hereunderMarket Rent, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving notify Landlord notice at least one hundred eighty of such disagreement within twenty (18020) days prior to the expiration after receipt of Landlord’s determination of the current TermMarket Rent, which notice shall set forth Tenant’s determination of the Market Rent. If Tenant fails to give notice to so notify Landlord prior to of Tenant’s disagreement and Tenant’s determination of Market Rent within the 180-day required time period, then Tenant Landlord’s determination of the Market Rent shall forfeit the Renewal Optionbe binding on Tenant. If Tenant exercises so notifies Landlord that Landlord’s determination of the Renewal Option, then during the Option TermMarket Rent is not acceptable to Tenant together with Tenant’s determination of Market Rent, Landlord and Tenant shall, during the fifteen (15) day period after Tenant’s respective rightsnotice (the “Negotiation Period”), duties attempt to agree on the Market Rent. If Landlord and obligations Tenant are unable to agree, Tenant shall within ten (10) days after the Negotiation Period, either (i) accept Landlord’s determination of the Market Rent, (ii) if Tenant has not already exercised its then current option, reject Landlord’s determination and decline to exercise such option, or (iii) reject such determination, exercise such option, if Tenant has not already done so, and submit the determination to binding arbitration as provided below. If Tenant fails to so notify Landlord of Tenant’s election under the preceding sentence within said ten (10) day period after the Negotiation Period, Tenant shall be governed deemed to have rejected Landlord’s determination and to have declined to exercise its current option, if Tenant had not already exercised such option. In the event Tenant timely elects arbitration to determine the Market Rent, Landlord and Tenant shall, within ten (10) days after such election to arbitrate, each select an independent leasing broker who shall have at least ten (10) years’ experience in leasing office space in the Market Area, with working knowledge of current rental rates and practices and shall not be an employee of Landlord or Tenant or a broker retained by Landlord or Tenant in the previous twelve (12) month period. If either Landlord or Tenant fails to appoint a leasing broker within the ten (10) day period referred to above, the leasing broker appointed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term other party shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate sole leasing broker for the time period such determination is being made purposes hereof. Upon selection, Landlord’s and Tenant’s leasing broker shall select a third leasing broker meeting the aforementioned criteria. If the two (2) leasing brokers cannot agree on the selection of the third leasing broker within ten (10) days of their selection, then either party may request appointment of the third leasing broker by application to the JAMS. Once the third leasing broker has been selected as provided for office space above (or, if a party has failed to timely select any leasing broker, then once that party has failed to make that selection), then, as soon thereafter as practicable but in same class office buildings in the area of Murfreesboro, Tennessee any case within fourteen (the “Area”14) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitationdays, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant third leasing broker (or the lack thereof sole leasing broker, as applicable) shall make his/her determination of which of Landlord’s estimate of the Market Rent or Tenant’s estimate of the Market Rent (collectively, the “Estimates”) most closely reflects the Market Rent and such Estimate shall be binding on both Landlord and Tenant as the Market Rent for the Option Term Premises for such Renewal Period. Such leasing broker shall only be permitted to select either Landlord’s or Tenant’s Estimate and shall not be permitted to determine a different rate. The parties shall share equally in questionthe costs of the third leasing broker (or the sole leasing broker, as applicable). For purposes Any fees of any leasing broker, counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such leasing broker, counsel or expert. 22.5 If Tenant has validly exercised one of such calculationoptions, it will only within thirty (30) days after the parties hereto agree upon the Market Rent, Landlord and Tenant shall enter into a written amendment to this Lease confirming the terms, conditions and provisions applicable to the First Renewal Period or Second Renewal Period, as applicable, as determined in accordance herewith, with such revisions to the rental provisions of this Lease as may be assumed that Landlord is paying a representative necessary to conform such provisions to the Market Rent. Tenant’s failure to timely execute such amendment shall not negate the irrevocable nature of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermTenant’s election.

Appears in 1 contract

Sources: Lease Agreement (Hyperion Solutions Corp)

Renewal Options. a. 1. If, on the expiration of the Term of this Lease --------------- and the date Tenant shall have the right and option notifies Landlord of its intention to renew the Lease Term (“Renewal Option”) for two as provided in subsection (2) successive renewal periods below), (i) Tenant is not in default under this Lease beyond any applicable notice and cure period provided for in this Lease, and (ii) this Lease is in full force and effect, then Tenant shall have and may exercise an option to renew this Lease for an additional term of five (5) years each (each, an “Option the "Renewal Term”); provided, however, ") upon the same terms and conditions contained in this Lease ------------ with the exceptions that the rental for the Renewal Option Term shall be the then- prevailing market rate of rent in the Herndon, Virginia area, inclusive of consideration of then-current market concessions (including, without limitation, refurbishment allowances and rent abatement) (the "Renewal Rental Rate"). ------------------- 2. If Tenant desires to renew this Lease pursuant to subsection (1) above, Tenant must notify Landlord in writing of its intention to renew (the "Renewal Notice") not less than twelve (12) months prior to the expiration of -------------- the Term of this Lease (the "Expiration Date"). Landlord shall, within ten (10) --------------- business days following the later of Landlord's receipt of such Renewal Notice or the date which is contingent upon twelve (12) months prior to the following: Expiration Date, notify Tenant in writing of Landlord's determination of the Renewal Rental Rate and Tenant shall, within the next ten (10) business days following receipt of Landlord's determination of the Renewal Rental Rate, notify Landlord in writing of Tenant's acceptance or rejection of Landlord's determination of the Renewal Rental Rate. If Tenant timely notifies Landlord of Tenant's acceptance of Landlord's determination of the Renewal Rental Rate, this Lease shall be extended as provided herein and Landlord and Tenant shall enter into an amendment to this Lease to reflect the extension of the Lease Term and changes in Base Rent in accordance with this Exhibit. If (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives timely notifies Landlord notice in writing of Tenant’s intention to exercise 's rejection of Landlord's determination of the Renewal Option Rental Rate or at (ii) Tenant does not notify Landlord in writing of Tenant's acceptance or rejection of Landlord's determination of the Renewal Rental Rate within such ten (10) business day period, Landlord and Tenant will promptly attempt to agree on the Renewal Rental Rate. If Landlord and Tenant cannot agree within ten (10) business days of Tenant's rejection in subclause (i) hereinabove or the expiration of the current Term; ten (10) business days period referred to in subclause (ii) no event has occurred that upon hereinabove, then Tenant may either (A) withdraw its Renewal Notice by written notice to Landlord, in which event, all of Tenant's rights under this Paragraph A shall immediately and irrevocably terminate, or (B) proceed promptly to determine the passage of time would constitute an Event of DefaultRenewal Rental rate by appraisal, unless in which case, Landlord has given notice of default and Tenant is diligently attempting shall each select a qualified independent real estate broker or appraiser (i.e., a real estate broker or appraiser with no prior or existing contractual relationship with either party) with at least five (5) years experience in leasing office buildings in the Herndon, Virginia area to cure such event; and determine the Renewal Rental Rate. If the values determined by the brokers/appraisers are less than ten percent (iii10%) Tenant is occupying apart, the average of the values determined by them shall be deemed the Renewal Rental Rate for the Premises. Following expiration of If the final Option Term allowable hereunderbrokers/appraisers do not agree, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty and if their determinations are more than ten percent (18010%) apart, then on or before seventy-five (75) days prior to the expiration commencement of the current Renewal Term, the two brokers/appraisers shall select a third independent broker/appraiser who will determine the Renewal Rental Rate for the Premises. If Tenant fails to give notice to Landlord the value determined by the third broker/appraiser is between the values determined by the two prior broker/appraisers, the determination of the third broker/appraiser will control. If the third broker/appraiser's determination is not between the values determined by the two prior broker/appraisers, then the value of the first two broker/appraisers closest to the 180-day period, then Tenant shall forfeit value of the third broker/appraiser will be the Renewal Optionrental Rate for the Premises. If Tenant exercises Each party shall pay the Renewal Optionfees and expenses of its broker/appraiser, then during and the Option Term, fees and expenses of the third broker/appraiser shall be shared equally between Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Network Access Solutions Corp)

Renewal Options. a. (a) Tenant shall have the right and option options (a "RENEWAL OPTION") to renew and extend the term of the Lease (“Renewal Option”) for two (2) successive renewal additional periods of five (5) years each (each, an “Option Term”the "ADDITIONAL RENEWAL TERMS"); provided, however, the . A Renewal Option is contingent upon the following: may only be exercised by Tenant giving written notice thereof no more than twelve (i12) there is not an Event of Default beyond all applicable cure period(smonths nor less than nine (9) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current Renewal Term, or the first Additional Renewal Term, as applicable. If Tenant fails to give notice to Landlord prior of exercise of the applicable Renewal Option within such specified time period, such Renewal Option shall be deemed waived and of no further force and effect. The exercise of the second Renewal Option is conditioned upon Tenant's extension of the Lease term pursuant to the 180-day periodfirst Renewal Option. (b) Tenant's right to extend the Lease as provided for herein can be exercised only if, at the time of such exercise and upon the commencement of the applicable Additional Renewal Term, (a) no event of default then exists under the Lease, and (b) Tenant is in possession of at least eighty percent (80%) of the entire Leased Premises (unless Landlord, in its sole discretion, elects to waive either such condition). If either of such conditions are not satisfied or waived by Landlord, the applicable Renewal Option shall be terminated and of no further force and effect, any purported exercise thereof shall be null and void, and the Lease shall terminate upon the expiration of the then current term. (c) If Tenant shall forfeit exercise a Renewal Option (in accordance with and subject to the Renewal Option. If Tenant exercises provisions of this Section 12), all of the Renewal Optionterms, then covenants and conditions provided in the Lease shall continue to apply during the Option applicable Additional Renewal Term, Landlord and Tenant’s respective rights, duties and obligations except that (i) the Base Rental during the applicable Additional Renewal Term shall be governed by the terms and conditions then Market Base Rental Rate as determined for the Leased Premises in accordance with the definition of "Market Base Rental Rate" contained in the Lease, (ii) Tenant shall have no option to renew the Lease beyond the expiration of the second Additional Renewal Term, (iii) Tenant shall have no right to assign its renewal rights to any sublessee of the Leased Premises or assignee of the Lease, except (iv) the Leased Premises will be provided to Tenant in its existing condition (on an "as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for is" basis) at the time period each Additional Renewal Term commences and (v) any terms, covenants and conditions that are expressly or by their nature inapplicable to any such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee Additional Renewal Term (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing this Section 12) shall be deemed void and of Tenant; the length of the term; the fact that Landlord will experience no vacancy period further force and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termeffect.

Appears in 1 contract

Sources: Lease Agreement (Pinnacle Global Group Inc)

Renewal Options. a. This provision applies only to the initial term of said lease and not to any renewals: Provided Tenant shall have is not in default under the right and Terms of this Lease, Tenant will be granted an option to renew this Lease at the end of Lease term for a period of either a 1, 2 , 3, 4 or 5 year term under similar terms and conditions with rent escalations based on the CPI but no greater than 7% annually nor less than 2%. Year 1 (“Renewal Option”of the new Lease term) for two base rate shall be at a CPI (2as referred to in ▇▇▇▇▇. 31) successive renewal periods escalation from year 5 of five (5) years each (each, an “Option Term”); providedthis Lease using, however, a base rate of $13.25 for Year 5 for purposes of calculating the first year of renewal term. Should such renewal option be exercised, Landlord agrees to furnish tenant improvement dollar amounts as follows which instead of T.I. allowance may credited toward a rate reduction: Term of Renewal Tenant Improvements or Rate Reduction at Tenants option: 1 Year Renewal: $1.00 per square foot allowance paid by landlord 2 Year Renewal: $2.00 per square foot allowance paid by landlord 3 Year Renewal: $3.00 per square foot allowance paid by landlord 4 Year Renewal: $4.00 per square foot allowance paid by landlord 5 Year Renewal: $5.00 per square foot allowance paid by landlord Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time may be exercised by Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice on at least one hundred eighty (180) 90 days written notice prior to the expiration end of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions fifth year of the Lease. Landlord Reserves to night to terminate such option to renew in the event Landlord, except as provided otherwise in this Section. Time Landlords reasonable discretion, determines it is in the best interest of the essence in exercising the Renewal Option. c. The Base Rental landlord, for an Option Term a owner occupant to occupy Premises or for a redevelopment (e.g.; substantial structural modification of ▇▇▇▇▇▇▇ Plaza) to occur. Should Tenant wish to exercise such option and Landlord elects to terminate this option; Tenant shall be reimbursed to the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisionsextent, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental that such option renewal price is low comparable market rates for renewals in similar building space as defined by the Area because of concessions being offered 'Bayside Market-. Pinellas County and surveyed by Landlord to Tenant (or publications such as the lack thereof for the Option Term in question). For purposes of ▇▇▇▇▇▇ Report; Blacks Guide and commercial Realtor surveys such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termas ▇▇▇▇▇ & ▇▇▇▇▇; and ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇▇.

Appears in 1 contract

Sources: Office Building Lease (Lasergate Systems Inc)

Renewal Options. a. Tenant shall have As of the right Expansion Date, Sections 7.1(a) and option to renew (b) of the Lease shall be amended and restated in their entirety as follows: (“Renewal Option”a) for So long as an Event of Default is not then continuing and subject to the provisions of this Section 7.1, Tenant is hereby granted two (2) successive renewal periods options (the first such option, the "First Renewal Option" and the second such option, the "Second Renewal Option," each individually, a "Renewal Option," and such options collectively, the "Renewal Options") to renew the Initial Term as to all (but not part) of the Leased Premises (including, except as provided in Section 7.2, any space added to the Leased Premises pursuant to Section 7.2 for a period of five (5) years each (eacheach individually, an “Option a "Renewal Term”); provided, however" and collectively, the "Renewal Option is contingent upon Terms"), but in no event to exceed a maximum period in the following: aggregate of ten (i10) there is not an Event of Default beyond all applicable cure period(sadditional years. The first Renewal Term (the "First Renewal Term") shall commence at the time expiration of the Initial Term and the second Renewal Term (the "Second Renewal Term") shall commence at the expiration of the First Renewal Term. Tenant gives must furnish Landlord with written notice of Tenant’s intention its intent to exercise the Renewal Option or at the expiration of the current Term; no later than eleven (ii11) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current Initial Term or the First Renewal Term, as applicable (the "Intent Notice"). If Tenant timely delivers the Intent Notice to Landlord, Landlord shall no later than ten (10) months prior to the expiration of the Initial Term or the First Renewal Term, as applicable, deliver to Tenant written notice of the Market Base Rental Rate (defined below) as of the commencement of the applicable Renewal Term and the Parking Rental for the Parking Permits (if applicable pursuant to subsection (b)(ii) below). If Tenant timely furnished the Intent Notice to Landlord as provided above, Tenant may exercise the applicable Renewal Option by delivering written notice of such election (the "Election Notice") to Landlord no later than thirty (30) days after receipt of Landlord's notice of the Market Base Rental Rate. If Tenant timely delivers the Intent Notice and the Election Notice to Landlord, but at any time prior to the commencement of the applicable Renewal Term an Event of Default has occurred, Landlord, at its sole option during the continuance of such Event of Default, may terminate Tenant's election to exercise such Renewal Option and such Renewal Option and the subsequent Renewal Option (if any) shall expire and thereafter shall not be exercisable by Tenant and Tenant shall have waived forever its right to renew and extend the Term. If Tenant fails to give notice timely exercise the applicable Renewal Option by failing to Landlord prior timely deliver the Intent Notice or the Election Notice as provided above, the applicable Renewal Option and the subsequent Renewal Option (if any) shall terminate automatically, and Tenant shall have waived forever its right to renew and extend the Term. (b) The renewal of this Lease pursuant to the 180-day period, then Tenant shall forfeit exercise of the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by upon the same terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee Lease (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, Tenant's obligation to pay Tenant's Basic Cost and Tenant's Basic Cost Adjustment), except: i. the following matters: Base Rental Rate for the credit standing of Tenant; Leased Premises during the length applicable Renewal Term shall be ninety-five percent (95%) of the termMarket Base Rental Rate for such Renewal Term as of the commencement of the Renewal Term; however, in no event shall the fact that Landlord will experience no vacancy period and that Base Rental Rate during such Renewal Term be less than the Base Rental Rate Tenant will not suffer is obligated to pay under this Lease immediately prior to the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes commencement of such calculationRenewal Term. Tenant shall be obligated to pay the Tenant's Basic Cost and Tenant's Basic Cost Adjustment pursuant to Article III of this Lease; ii. at the time of the Tenant's exercise of a Renewal Option, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is charging any tenants then entering into leases for office space in fact paying the Building for parking spaces in the Garage, Tenant shall pay Landlord, as Parking Rental, a brokerage commission monthly amount equal to a representative the rates charged by Landlord or the operator of the Garage for parking in such location (taking into account whether such parking spaces are for regular or executive parking spaces) for monthly contract parking in the Garage multiplied by the number of Parking Permits leased by Tenant pursuant to this Lease, which Parking Rental shall be payable as provided in connection with Section 6.15(b) of this Lease; iii. Tenant shall have no option to renew this Lease beyond the First Renewal Term if Tenant fails to exercise the Second Renewal Option as provided above, or, in any event, beyond the Second Renewal Term; and iv. the leasehold improvements will be provided in their then-existing condition (on an "as is" basis) at the time the applicable Option Renewal Term commences and Tenant shall not be entitled to any construction, buildout or other allowances with respect to the Leased Premises during such Renewal Term."

Appears in 1 contract

Sources: Lease Agreement (FSP Phoenix Tower Corp)

Renewal Options. Tenant's ( ) ( ) year renewal option(s) shall be for terms commencing on the th and th anniversary date(s) of the Commencement Date, and shall be effective provided that at the time of Tenant's exercise of such option(s), Tenant is not in default of the Lease, and provided further that Tenant's exercise of each successive option shall be made in the following manner: a. Tenant must give written notice of exercise of its option (option notice) to Landlord within 180 days but not more than 270 days before the Expiration Date. b. The Base Rent for each of the successive applicable lease term shall be market value rent for like space in like facilities and for like uses in the area at the time of Tenant's exercise of each option. The amount of rent shall be established by agreement of the parties, or upon the failure of the parties to mutually agree on a fair rental figure, by arbitration using the following procedure: (1) If the parties have not mutually agreed upon the right base rental to be paid for the next successive applicable lease term provided for herein within 150 days before the expiration of the initial term or preceding option period, as the case may be, Tenant shall appoint one (1) representative who shall be an MAI real estate appraiser experienced in the appraisal of similar space in the area to act as an arbitrator. The arbitrator so appointed shall determine the then fair market rental value of the use to which Tenant is then utilizing the demised premises pursuant to the terms and conditions of this Lease. The determination of said fair market rental value shall be made by said arbitrator within thirty (30) days of the commencement of said 150 day period prior to the expiration of the initial term or option period, as the case may be, and he shall submit said determination in writing, signed by him. The determination shall be submitted in duplicate with one copy delivered to renew Landlord and one copy to Tenant. (2) In the Lease (“Renewal Option”) event that Landlord does not agree on the fair market base rental value for the demised premises for the successive option period, in accordance with the arbitrator's option, Landlord shall appoint a second arbitrator who shall be an MAI appraiser experienced in the appraisal of similar space in the area. The fair market base rental value for the next applicable lease term shall be established by agreement of the two (2) successive renewal periods arbitrators so appointed, which determination shall be made within sixty (60) days of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event commencement of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention said 150 day period prior to exercise the Renewal Option or at the expiration of the current Term; initial term or prior option period, as the case may be, and shall be submitted in writing as provided in Paragraph 5.8(b)(1), above (ii3) no In the event has occurred that upon notice or said two (2) arbitrators cannot agree on the passage fair market base rental value for the demised premises for the successive option period, said two (2) arbitrators shall appoint a third arbitrator who shall be an MAI appraiser experienced in the appraisal of time would constitute an Event similar space in the area. The fair market base rental value for the next applicable lease term shall be established by agreement of Defaultthe two (2) of the three (3) arbitrators so appointed, unless Landlord has given notice which determination shall be made within ninety (90) days of default and Tenant is diligently attempting the commencement of said 150 day period prior to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunderinitial term or prior option period, Tenant as the case may be, and shall have no further right to renew the Lease pursuant to this Section 5be submitted in writing as provided in paragraph 5.8(b)(1), above. b. Tenant shall exercise (4) If the Renewal Option fair market base rental value of the premises is not agreed upon by giving Landlord notice at least one hundred eighty two (1802) out of three (3) arbitrators as provided in paragraph 5.8(b)(3), above, or if the initially appointed arbitrators fail to agree on the appointment of a third arbitrator within ninety (90) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day periodlease term in question, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations an independent arbitrator shall be governed appointed by the terms and conditions of the LeaseAmerican Arbitration Association, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term which arbitrator shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.an MAI appraiser experienced in

Appears in 1 contract

Sources: Commercial Office Building Lease

Renewal Options. a. Tenant shall have the right and option to renew extend the Term of the Lease (“Renewal Option”) for all of the then leased Premises for two (2) successive renewal additional periods of five (5) years each (each a “Renewal Option”), under and subject to the following terms and conditions: (a) The first renewal term (“First Renewal Term”) shall be for a five (5) year period commencing on October 1, 2032 and expiring at 11:59 p.m. on September 30, 2037. The second renewal term (“Second Renewal Term”; together with the First Renewal Term, each, a “Renewal Term” and collectively, the “Renewal Terms”) shall be for a five (5) year period commencing on October 1, 2037 and expiring at 11:59 p.m. on September 30, 2042. (b) Tenant must exercise the Renewal Option for the First Renewal Term, if at all, by written notice to Landlord delivered not earlier than June 30, 2031 and not later than September 30, 2031, time being of the essence. If Tenant fails to exercise the Renewal Option for the First Renewal Term, the Renewal Option for the Second Renewal Term shall be void and of no further force and effect. Tenant must exercise the Renewal Option for the Second Renewal Term, if at all, by written notice to Landlord delivered not earlier than June 30, 2036 and not later than September 30, 2036, time being of the essence. Notwithstanding the foregoing, in the event of a casualty, Tenant shall also have the right to exercise the applicable Renewal Option by providing notice to Landlord within thirty (30) days after the date of the casualty as set forth in Section 15 above. (c) As a condition to Tenant’s exercise of either Renewal Option, at the time Tenant delivers its notice of election to exercise such Renewal Option to Landlord and at the time the applicable Renewal Term is scheduled to commence, there shall be no Event of Default, this Lease shall be in full force and effect, and Tenant shall not have assigned this Lease to any party other than to an Affiliate. (d) The Minimum Annual Rent for the first year of the First Renewal Term and the first year of the Second Renewal Term shall be the then current fair market rent for renewals for comparable space in similar buildings within the San ▇▇▇▇/Santa Clara, California submarket, and the Minimum Annual Rent for each subsequent year during the First Renewal Term and the Second Renewal Term shall increase consistent with then existing market annual escalations (the Option TermFair Market Rental”). Landlord shall determine the Fair Market Rental using its good faith judgment and shall provide written notice (“Landlord’s Notice”) of such Fair Market Rental within fifteen (15) days after delivery of Tenant’s renewal notice pursuant to this Section 30. Tenant shall thereupon have the following options: (i) accept Landlord’s proposed Fair Market Rental or (ii) object to Landlord’s proposed Fair Market Rental. Tenant shall provide Landlord with written notice (“Tenant’s Notice”) of its election to accept or object to Landlord’s proposed Fair Market Rental within fifteen (15) days after Tenant’s receipt of Landlord’s Notice. If Tenant fails to provide Tenant’s Notice within such fifteen (15) day period, Tenant shall be deemed to have objected to Landlord’s proposed Fair Market Rental in accordance with clause (ii) above. If Tenant objects to Landlord’s proposed Fair Market Rental in accordance with clause (ii) above or is or is deemed to have objected thereto pursuant to the immediately preceding sentence, Landlord and Tenant shall attempt to negotiate a mutually acceptable Fair Market Rental within fifteen (15) days following Landlord’s receipt of Tenant’s Notice. If such negotiations have not been concluded within such fifteen (15) day period, either Landlord or Tenant (in such capacity, the “Initiating Party”) may request an independent determination of the Fair Market Rental for the applicable Renewal Term by giving written notice (“Independent Appraiser Notice”) to the other party (the “Responding Party”) no later than five (5) days after the expiration of such fifteen (15) day period. The Independent Appraiser Notice shall designate an MAI real estate appraiser or real estate broker with at least ten (10) years’ experience in leasing comparable space in similar buildings within the San ▇▇▇▇/Santa Clara, California submarket (a “Qualified Appraiser”). Within ten (10) days after receipt of the Independent Appraiser Notice, the Responding Party shall select a different Qualified Appraiser and give written notice of such selection to the Initiating Party. If the Qualified Appraisers selected by the Initiating Party and the Responding Party fail to agree upon the Fair Market Rental within ten (10) days after selection of the second Qualified Appraiser, the Qualified Appraisers shall select a third Qualified Appraiser to determine the Fair Market Rental within ten (10) days after the selection of such third Qualified Appraiser. The third Qualified Appraiser shall be independent and shall not have been previously employed by either Landlord or Tenant. The Fair Market Rental for the applicable Renewal Term shall be equal to the arithmetic average of the three (3) determinations of Fair Market Rental by the Qualified Appraisers; provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration that if one of the current Term; (ii) no event has occurred that upon notice or determinations of Fair Market Rental submitted by a Qualified Appraiser deviates from the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration median of the final Option Term allowable hereunderthree (3) determinations of Fair Market Rental by more than five percent (5%), Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Ratefor the applicable Renewal Term shall be equal to the arithmetic average of the other two (2) determinations of Fair Market Rental. The determination of the Fair Market Rental Rate” in accordance with this Section 30(d) shall mean the market rental rate be final, binding and conclusive on Landlord and Tenant. Each of Landlord and Tenant shall be responsible for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving expenses of its offices Qualified Appraiser and negotiating a new lease; construction allowances shall split evenly the costs and other tenant concessions that would expenses of the third Qualified Appraiser. (e) Except as set forth in this Section 30, there shall be available no further options to tenants comparable to Tenant in extend or renew the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding Term of the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermLease.

Appears in 1 contract

Sources: Lease Agreement (QuantumScape Corp)

Renewal Options. a. (a) Provided that no Event of Default has occurred and is continuing, Tenant shall have the right and option to renew extend the term of this Lease (“Renewal Option”) for up to two (2) successive renewal separate option periods upon and subject to the terms set forth below in this Section 2. The first option period (the “First Option Period”) shall commence at the expiration of the Primary Term. The second option period (the “Second Option Period”) shall commence at the expiration of the First Option Period. The First Option Period and the Second Option Period are sometimes referred to herein collectively as the “Option Periods” and individually as an “Option Period.” Each Option Period shall continue for a period of five (5) years from the commencement date of such Option Period. Except as otherwise expressly in this Lease, all of the terms and conditions of this Lease applicable to the Primary Term shall continue to apply during each Option Period. The Primary Term and any Option Period for which an option has been exercised shall hereinafter collectively be referred to as the “Term.” (eachb) To validly extend the Term for the First Option Period, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives shall deliver to Landlord written notice of Tenant’s intention election to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least so extend not later than one hundred eighty (180) days prior to the expiration of the current Primary Term. If , and (ii) as of the date the First Option Period is scheduled to commence, there shall be no Event of Default that remains uncured under this Lease. (c) To validly extend the Term for the Second Option Period, (i) Tenant fails to give notice must have validly extended this Lease for the First Option Period, (ii) Tenant shall deliver to Landlord written notice of Tenant’s election to so extend not later than one hundred eighty (180) days prior to the 180-day periodexpiration of the First Option Period, then Tenant shall forfeit and (iii) as of the Renewal Option. If Tenant exercises date the Renewal OptionSecond Option Period is scheduled to commence, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations there shall be governed by the terms and conditions no Event of Default that remains uncured under this Lease. (d) Either party, upon request of the Leaseother, except as provided otherwise shall execute and acknowledge, in this Section. Time is form suitable for recording, an instrument confirming the exercise of the essence in exercising the Renewal Option. c. The Base Rental for an any Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of MurfreesboroPeriod, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact requesting party paying a brokerage commission to a representative of Tenant in connection with the all applicable Option Termrecording costs.

Appears in 1 contract

Sources: Lease Agreement (Infrastructure & Energy Alternatives, Inc.)

Renewal Options. a. Tenant The Lessee shall have the right and option to renew and extend the term of this Lease Agreement for the Renewal Terms as hereinafter provided, subject to the following terms and conditions: The Lessee may extend this Lease Agreement for four (4) Renewal Option”) for two (2) successive renewal periods Terms of five (5) years each by the Lessee giving the Lessor notice, in writing, of its intent to exercise such renewal option (each, an a Option TermRenewal Notice”); provided, however, the Renewal Option is contingent upon the following: no less than six (i6) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current Lease Term or the immediately preceding Renewal Term, as applicable. Such Renewal Term(s) shall commence immediately upon the expiration of the Lease Term or the preceding Renewal Term, and upon exercise of each renewal option the expiration date of the term shall automatically become the last day of the applicable Renewal Term. If Tenant fails to give notice to Landlord prior The exercise by the Lessee of the renewal option(s) set forth herein must be made, if at all, by delivery of a Renewal Notice to the 180Lessor on or before the dates set forth-day periodabove. Once the Lessee has exercised any such renewal option, then Tenant the Lessee may not thereafter revoke the exercise of such option. At the Lessor’s election, the Lessee’s rights to Renewal Terms as provided under this Section shall forfeit terminate and be of no further force or effect if (i) an Event of Default exists under the Lease Agreement at the time the Lessee attempts to exercise its renewal option, or (ii) the Lessee defaults under any provision of the Lease Agreement after exercising its renewal option and such default continues beyond any applicable period provided in this Lease Agreement. Rent for each year under the Renewal OptionTerms shall be at the per square foot rate equal to the “Fair Market Rate.” The Fair Market Rate shall be agreed upon by Lessor and the Lessee within fifteen (15) calendar days of the date on which the Lessee exercised its renewal option. If Tenant exercises In the event the parties are unable to timely agree on the Fair Market Rate, the dispute shall be resolved by arbitration pursuant to Article XII. Except as set forth herein, the leasing of the Expanded Campus for the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations Term(s) shall be governed by upon the same terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate are applicable for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, initial term and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s costany subsequent Renewal Term(s), and whether adjustments are then being made in determining shall be upon and subject to all of the rental rates for renewals in the Area because provisions of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthis Lease Agreement.

Appears in 1 contract

Sources: Lease Agreement (Coldwater Creek Inc)

Renewal Options. a. Provided that Tenant shall have is not in default in any of the right terms of this Lease, Tenant may extend the Term of this Lease and option to renew the Lease (“Renewal Option”) provisions hereof for two (2) successive two (2) year renewal periods of five terms (5) years each (each, an a Option Renewal Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time . Tenant gives Landlord notice of Tenant’s intention to may exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless renewal options hereunder by notifying Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice in writing at least one hundred eighty six (1806) days months prior to the expiration of the then current Term. If The Renewal Terms shall be on the same terms and conditions as herein, except that Base Rent shall be at ninety-five percent (95%) of the fair market rental rate. The fair market rental rate, with respect to a Renewal Term, shall be determined as follows. Within thirty (30) days after Tenant’s exercise of its option to extend, Landlord will propose to Tenant fails the fair market rental rate. Within thirty (30) days thereafter, Tenant will either accept such determination (with no response on Tenant’s part during such period being deemed disagreement) or, if Tenant disagrees with such determination, Tenant will provide, in writing to give notice Landlord, Tenant’s determination of the fair market rental rate. If, within thirty (30) days thereafter, the parties are not able to Landlord prior agree on the fair market rental rate, within twenty (20) days after such failure to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Termagree, Landlord and Tenant shall together appoint a real property MAI appraiser to determine the fair market rental rate. If Landlord and Tenant are not able to agree upon the designation of the appraiser, then the appraiser will be appointed by the American Arbitration Association (or its successor) from its qualified panel of arbitrators. Within forty-five (45) days after his appointment, the appraiser will determine the fair market rental value of the Premises applicable to the Renewal Term and shall choose whichever of the fair market rental values set forth in Landlord’s initial proposal or Tenant’s respective rightsresponse is closer to such determination, duties and obligations which shall, for all purposes hereunder, be deemed the fair market rental rate. The determination of the appraiser shall be governed by binding, final and conclusive on the terms parties. The fees and conditions expenses of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, appraiser and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission incurred in connection with the Option Term in question if appointment of the appraiser will be shared equally by Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termand Tenant.

Appears in 1 contract

Sources: Lease (Wells Real Estate Fund Xi L P)

Renewal Options. a. 26.1 Tenant shall have is hereby granted the right and option ("Extension Option") to renew extend the term of the Lease for one (“Renewal Option”1) for two (2) successive renewal periods period of five (5) years each Lease Years (each"Extension Term"). The Extension Option may be exercised only by giving Landlord irrevocable and unconditional written notice thereof no earlier than eighteen (18) months and no later than nine (9) months prior to the commencement of the Extension Term. Tenant may not exercise the Extension Option if Tenant is in default under the Lease beyond the expiration of any applicable cure period either at the date of said notice or at any time thereafter prior to commencement of the Extension Term. Upon exercise of the Extension Option, an “Option Term”); providedall references in the Lease to the Term shall be deemed to be references to the Term as extended pursuant to the Extension Option. 26.2 The Extension Term shall be on the same terms, howevercovenants and conditions as are contained in the Lease, the Renewal Option is contingent upon the following: except that (i) there is not an Event of Default beyond all applicable cure period(s) at no additional extension option shall be conferred by the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; Extension Option, (ii) no event has occurred that upon notice or Base Rent applicable to the passage of time would constitute an Event of DefaultPremises for the Extension Term shall be determined as provided below, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying any initial rent abatement, concession or allowance which are in the Premisesnature of economic concessions or inducements shall not be applicable to any Extension Term. Following expiration of the final Option Term allowable hereunderIn addition to Base Rent, Tenant shall have no further right to renew pay Additional Rent, and other Rent during the Lease pursuant to Extension Term as provided in this Section 5Lease. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration 26.3 Base Rent per annum per rentable square foot of the current Term. If Tenant fails to give notice to Landlord prior to Premises for the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Extension Term shall be one hundred percent (100%) of the Fair Current Market Rental Rate for lease terms commencing on or about the date of commencement of the Extension Term. The term "Current Market Rate. “Fair Market Rental Rate” shall mean " means the market prevailing rental rate per rentable square foot under office leases recently executed for the time period such determination is being made for office comparable space in same class office the Building and in comparable buildings in the area North ▇▇▇▇▇▇▇ County submarket in which the Building is located. The determination of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination Current Market Rate shall take into account all relevant factorsconsideration net versus gross lease (and differing base years, including, without limitationif applicable); any differences in the size of space being leased, the following matters: location of space in the credit standing building and the length of lease terms; any differences in definitions of rentable square feet or rentable area with respect to which rental rates are computed; the value of rent abatements, allowances (for demolition, space planning, architectural and engineering fees, construction, moving expenses or other purposes); the creditworthiness of Tenant; the length location and condition of the termbuilding; the fact that Landlord will experience no vacancy period and that Tenant will not suffer condition of the costs and business interruption associated with moving its offices and negotiating a new leasespace; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant pertinent factors. The Current Market Rate may include an escalation of a fixed rental rate (based on a fixed step or index) then prevailing in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termmarket.

Appears in 1 contract

Sources: Office Lease Agreement (Wells Real Estate Fund Xi L P)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office bank and financial space in same class office buildings in the area of MurfreesboroSpring Hill, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Triple Net Office Lease Agreement (Franklin Financial Network Inc.)

Renewal Options. a. (a) Tenant shall have the right and to exercise the --------------- following renewal option by giving notice (a "Renewal Option Notice") to Landlord no later than the date which is one (1) year prior to the Expiration Date. Tenant shall have options ("Renewal Option") to renew the original term of this Lease (“Renewal Option”) for one or two (2) successive renewal periods of consecutive five (5) years each year periods, the first of which (eachthe "First Renewal Term") shall commence on the date immediately following the Expiration Date and shall expire on the fifth anniversary of the Expiration Date (the "First Renewal Term Expiration Date") and the second of which (the "Second Renewal Term") shall commence on the date immediately following the First Renewal Term Expiration Date and shall expire on the fifth anniversary of the First Renewal Term Expiration Date. (b) In the event Tenant exercises a Renewal Option, an “Option Term”); providedTenant may elect to renew the term of this Lease for the First Renewal Term or, however, once having exercised the Renewal Option is contingent upon for the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to First Renewal Term, may exercise the a Renewal Option or at for the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Second Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to must give notice to Landlord of its intention to also renew the term of this Lease for the Second Renewal Term no later than the date which is one (1) year prior to the 180-day periodFirst Renewal Term Expiration Date. (c) It shall be a condition to the exercise of any Renewal Option hereunder that no Default shall have occurred and be continuing at the time such Renewal Option is exercised or at the time that any Renewal Term shall commence. (d) As used herein, then Tenant the term "Renewal Term" shall forfeit mean either the First Renewal Option. If Tenant exercises the Term or Second Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Optionapplicable. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Investment Trust Inc)

Renewal Options. a. 10.16.1 Provided Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord in default under this Lease and that no event or condition exists which with notice of Tenant’s intention to exercise the Renewal Option or at and the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time any grace period would constitute an Event of DefaultDefault under this Lease at the time the option may be exercised and at the time the Renewal Period commences, unless Landlord grants Tenant options (the "Renewal Options") to extend this Lease with respect to all of the Premises for two additional consecutive periods of five years (each a "Renewal Period"). The first Renewal Option shall be exercised by Tenant delivering written notice to Landlord at least 9 months prior to the Expiration Date of the initial Term, and provided that Tenant has given exercised the first Renewal Option, the second Renewal Option may be exercised by Tenant delivering written notice to Landlord at least 9 months prior to the Expiration Date of default the Term of the first Renewal Period. 10.16.2 The rate of annual Base Rent (the "Renewal Rental Rate") for each Renewal Period shall be the market rental rate, which shall be the rental rate then being charged by landlords (including Landlord) in the metropolitan area in which the Premises is located on new leases or on renewed leases to tenants of a similar credit quality to Tenant for space of similar quality and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying size as the Premises. Following expiration , but in no event shall the Renewal Rental Rate be less than the Base Rent in effect for the last Lease Year of the final Option Term allowable hereunderinitial Term. 10.16.3 Within fifteen days after Tenant's exercise of each Renewal Option, Landlord shall notify Tenant in writing of Landlord's proposed Renewal Rental Rate as determined by the above formula. Tenant shall have ten days from the receipt of Landlord's notice to either accept or dispute Landlord's determination of the Renewal Rental Rate. In the event that Tenant disputes Landlord's determination, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise so notify Landlord and advise Landlord of Tenant's determination of the Renewal Option Rental Rate for the Renewal Period as determined by giving the above formula. If Landlord and Tenant cannot agree upon the Renewal Rental Rate within thirty days of Tenant's original notice at least one hundred eighty (180) of its intent to exercise its Renewal Option, the following "Dispute Resolution Mechanism" shall be utilized: The parties, within ten days prior to after the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-said thirty day period, then Tenant shall forfeit jointly appoint as arbitrator, a certified commercial real estate appraiser with a minimum of ten years experience in the Renewal Optionapplicable market, employed by a major real estate firm operating in the Boulder, Colorado area. If Landlord and Tenant exercises the Renewal Option, then during the Option Termcannot agree on an acceptable arbitrator, Landlord and Tenant’s respective rightsTenant shall each choose, duties and obligations within an additional ten days thereafter, its own arbitrator who meets the qualifications described above. The arbitrators shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.then

Appears in 1 contract

Sources: Lease (Exabyte Corp /De/)

Renewal Options. a. (1) So long as there is no uncured default hereunder by Tenant as of the date of Tenant's exercise of any Renewal Option or as of the date of the commencement of any Renewal Term, Tenant shall have the right be entitled and option to renew the Lease (“Renewal Option”) for is hereby granted two (2) successive renewal periods options (the "Renewal Options") to extend the Term for an additional period of five (5) years each (eachthe "Renewal Terms"). Except for Base Rent, an “Option Term”)as hereinafter defined and separately provided for, the Renewal Terms shall be on all the other terms and conditions of this Lease; provided, however, the Renewal Option is contingent upon the following: that (i) there is not an Event upon the exercise of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the first Renewal Option or at the expiration Tenant shall have only one remaining Renewal Option and upon its exercise of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final second Renewal Option Term allowable hereunder, Tenant shall have no further right or option to renew or extend the Lease pursuant Term without Landlord's written consent, which may be withheld in Landlord's sole discretion, and (ii) Landlord shall not have any obligations to this Section 5. b. make any improvements or otherwise provide any inducement to Tenant. Tenant shall exercise the each Renewal Option Option, if at all, only by giving written notice of such exercise to Landlord notice at least one hundred eighty not less than six (1806) days months, nor more than twelve (12) months, prior to the expiration of the Initial Term or first Renewal Term, as the case may be. Should Tenant fail to timely exercise a Renewal Option in accordance with the preceding provisions, then the Term shall expire and this Lease shall terminate at the end of the Initial Term or the current Renewal Term, as applicable, and Tenant shall have no further right or option to renew or extend the Term. If Tenant fails to give Tenant's exercise of a Renewal Option shall be irrevocable. (2) Within thirty (30) days after Landlord receives Tenant's written notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the of its exercise of a Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating deliver a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord notice to Tenant (the "New Rate Notice") specifying the New Rate for the applicable Renewal Term, such to be based upon a CPI (Consumer Price Index) Adjustment as reported by BNA, CCH, P-H or other nationally recognized consumer or labor reporting service or 110% of the previous rent, whichever is less. The CPI Adjustment shall be determined using information for the previous 60 month period. EXHIBIT 10.43 (3) Tenant may not assign the Renewal Options to any assignee or subleases of the Lease that is not a Permitted Assignee (hereinafter defined). No assignee or sublessee may exercise the Renewal Options unless such is a Permitted Assignee of Tenant. (4) If the Term is extended pursuant to Tenant's exercise of a Renewal Option, Landlord shall prepare, and Landlord and Tenant will execute and deliver an amendment to this Lease extending the Term and specifying the new Base Rent; provided, however, that the failure of the parties to enter into such an amendment will not affect the validity of Tenant's exercise of the Renewal Option or the lack thereof for obligations of the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with parties during the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Renewal Term.

Appears in 1 contract

Sources: Lease Agreement (United Stationers Supply Co)

Renewal Options. a. Tenant If no Default shall have occurred and be continuing, Lessee shall have the right and option to renew this Lease for an initial renewal period of 5 years, which shall commence at the Lease (“Renewal Option”) for two (2) expiration of the Basic Term followed by successive renewal periods of five one or more whole years (5) years such initial renewal period and each (each, an “Option such successive renewal period being hereinafter individually referred to as a "Renewal Period"; the aggregate of such Renewal Periods elected by Lessee being herein referred to as the "Renewal Term"); provided, however, that (a) the aggregate of all such Renewal Option is contingent upon the following: Periods shall in no event exceed 20 years; (b) in order to exercise such right to renew this Lease for any Renewal Period, Lessee shall give Lessor written notice of its election to renew (i) there is at least one year (but not an Event more than 18 months) prior to the commencement of Default beyond all applicable cure period(s) at any such Renewal Period if the time Tenant gives Landlord notice period during which such right shall be exercised shall be the Basic Term, the first Renewal Term or any subsequent Renewal Term of Tenant’s intention to exercise the Renewal Option 2 years or at the expiration of the current Term; longer or (ii) no event has occurred that upon notice or at least 9 months (but not more than 12 months) prior to the passage commencement of time would constitute an Event any such Renewal Period if the period during which such right shall be exercised shall be a Renewal Period of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such eventless than 2 years; and (iiic) Tenant is occupying if Lessee shall fail to exercise its option as to any such Renewal Period it shall not thereafter have the Premisesright to exercise such option as to any subsequent Renewal Period. Following expiration The semiannual Rent payable to Lessor by Lessee for any Renewal Period shall (i) in the case of the final Option first Renewal Period of five whole years, be equal to one-half of the average of the 50 semiannual installments of Basic Rent and (ii) in the case of any subsequent Renewal Period, be equal to the Fair Market Rental Value determined as hereinafter provided. The Fair Market Rental Value of the Equipment for any Renewal Period after the first Renewal Period shall be determined by the mutual agreement of Lessor and Lessee within 45 days after receipt by Lessor of the notice from Lessee of its election to renew the lease of the Equipment for such Renewal Period or, if they shall fail to agree within such 45-day period, the Fair Market Rental Value of such Renewal Period shall be determined by the Appraisal Procedure. All the provisions of the Lease shall be applicable during the Renewal Term allowable hereunderexcept for the amount of each installment of Basic Rent, Tenant which shall be as hereinabove provided. After the Fair Market Rental Value for any Renewal Period following the first five years of the Renewal Term shall have no further right been finally determined as hereinabove provided, Lessee shall have the right, by notice to Lessor not later than 45 days after such determination, to rescind its elec- tion to renew the Lease pursuant to this Section 5for such Renewal Period. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Portland General Electric Co /Or/)

Renewal Options. a. (a) Tenant shall have the right and option to renew the this Lease (“Renewal Option”) with respect to the entirety of the Premises for two one (21) successive renewal periods additional term of five (5) years each (each, an the Option Renewal Term”); provided, howevercommencing upon expiration of the initial Term. The Renewal Option must be exercised, if at all, by written notice given by Tenant to Landlord not earlier than twelve (12) months and not later than nine (9) months prior to commencement of the Renewal Option is contingent upon Term. If Tenant properly exercises the following: (i) there is not an Event of Default beyond all applicable cure period(s) Renewal Option, then references in this Lease to the Term shall be deemed to include the Renewal Term. Tenant’s rights under this Section 2.6 shall, at the time option of Landlord, be null and void and Tenant gives Landlord notice of Tenant’s intention shall have no right to exercise renew this Lease if on the date Tenant exercises the Renewal Option or at on the expiration date immediately preceding the commencement date of the current Term; Renewal Term (i) a Default beyond the applicable cure period shall have occurred and be continuing hereunder, or (ii) no event has occurred that upon notice the named Tenant hereunder or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5a Permitted Transfer (defined below), a Tenant Affiliate, does not occupy the entire Premises. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180b) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant properly exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by Renewal Term all of the terms and conditions of set forth in this Lease as applicable to the LeasePremises during the initial Term shall apply during the Renewal Term, including without limitation the obligation to pay Rent Adjustments, except as provided otherwise that (i) Tenant shall accept the Premises in this Section. Time is of their then “as-is” state and condition and Landlord shall have no obligation to make or pay for any improvements to the essence in exercising Premises, and (ii) during the Renewal Option. c. The Term the Monthly Base Rental for an Option Term Rent payable by Tenant shall be equal to ninety-five percent (95%) of the Fair Market Rental Rate. Value during the Renewal Term as hereinafter set forth, except that in no event shall Monthly Base Rent during a Renewal Term be less than one hundred percent (100%) of the Monthly Base Rent in effect during the month immediately preceding the Renewal Term. (c) For purposes of this Section, the term “Fair Market Rental RateValue” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesbororate, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances additional rent adjustment and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, charges and lease assumptions and take over provisionsincreases, if any, but specifically excluding the value for space comparable in size, location and quality of improvements installed in the Premises at Tenant’s cost)under primary lease (and not sublease) to new or renewing tenants, for a comparable term with base rent adjusted for the relative tenant improvement allowance, if applicable, and whether adjustments are then being made taking into consideration such amenities as existing improvements and non-removable fixtures in determining place at the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes time of such calculationrenewal, it will only be assumed that Landlord view, floor on which the Premises is paying a representative of Tenant a brokerage commission situated and the like, situated in connection with the Option Term comparable office and laboratory buildings in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermEmeryville or Berkeley.

Appears in 1 contract

Sources: Lease Agreement (Zogenix, Inc.)

Renewal Options. a. Provided that Tenant is not in default under this Lease, Tenant shall have the right and option to renew extend the Initial Term of this Lease perpetually, for renewal term(s) of one (“Renewal Option”1) for two (2) successive renewal periods of five (5) years year each (each, an “Option a "Renewal Term”); provided, however, the Renewal Option is contingent ") upon the following: (i) there is not an Event written mutual agreement of Default beyond all applicable cure period(s) at the time Tenant gives both Landlord notice of and Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option its option to renew by giving Landlord written notice at least one hundred eighty (180) not less than 90 days prior to the expiration of the current TermInitial Term or the Renewal Term then in effect as the case may be. If Tenant fails to give exercise its options in the time periods or in the manner provided herein, such options shall be deemed to have lapsed, terminated and shall be of no further force or effect without any further action or notice required on the part of Landlord; provided, however, before such termination becomes effective, Landlord shall first make a good faith effort to Landlord prior notify Tenant of Tenant's failure to the 180-day period, then timely exercise an option to renew and Tenant shall forfeit then have fifteen days from receipt of Landlord's notice within which to provide the Renewal Option. If Tenant exercises the Renewal Optionnotice of exercise of such renewal which, if then during the Option Termtimely provided, Landlord and Tenant’s respective rights, duties and obligations shall be governed by deemed an effective renewal of this Lease. All of the terms and conditions of this Lease shall remain in full force and effect during any Renewal Term(s). If Tenant exercises its options as set forth herein, the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term Termination Date shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length last day of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant Renewal Term then in the Area (such effect, unless sooner terminated as moving expense allowanceprovided herein. The Initial Term of this Lease, free rent periods, and lease assumptions and take over provisionsas extended by any Renewal Term(s), if anyapplicable, but specifically excluding shall hereinafter be referred to as the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option "Term."

Appears in 1 contract

Sources: Lease Agreement

Renewal Options. a. Tenant shall have the right Any and option to renew all renewal options contained in the Lease are hereby deleted in their entirety, and in lieu thereof, Lessee shall have, at its option (the “Renewal Option”) ), the right to renew and extend this Lease for two (2) successive renewal periods one term of five (5) years each (eachthe “Renewal Term”). The Renewal Term shall commence immediately upon the expiration of the Extended Term by Lessee’s giving written notice thereof to Lessor no earlier than nine (9) months, and no later than six (6) months, prior to the expiration of the Extended Term. Once Lessee shall exercise any Renewal Option, Lessee may not thereafter revoke such exercise, except as expressly set forth below. Lessee shall not have the right to exercise the Renewal Option at a time that an Event of Default (or an event which with notice and/or lapse of time could become an Event of Default) under this Lease has occurred and is continuing. Lessee’s failure to exercise timely the Renewal Option for any reason whatsoever shall conclusively be deemed a waiver thereof. At Lessor’s option, Lessor may adjust the minimum fixed rent for the Renewal Term at an annual rate equal to the Fair Market Value Rate (as hereinafter defined) as of the commencement of the Renewal Term. As used in this Lease, Option TermFair Market Value Rate” shall mean the fair market value rental rate per square foot of rentable area per year in effect at the commencement of the Renewal Term for comparable tenants taking comparable space in comparable conditions under comparable terms in comparable buildings in the same rental market (hereinafter called “Comparable Buildings”); provided, however, that in no event shall the minimum fixed rent for the Renewal Option Term be less than ninety percent (90%) of the minimum fixed rent for the last twelve (12) months of the Extended Term. It is contingent upon also agreed and understood that the followingFair Market Value Rate shall include: (ia) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such eventrent; and (iiib) Tenant is occupying the Premises. Following expiration rental operating expenses, property tax, and utility and expense adjustments that are being included as part of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except industrial tenant leases for comparable tenants in Comparable Buildings as provided otherwise in this Section. Time is of the essence time of determination of the Fair Market Value Rate. Lessor shall advise Lessee within twenty (20) days after Lessee exercises the Renewal Option of the Fair Market Value Rate which shall be in exercising effect as of the commencement date of the Renewal Term. Lessee shall then have fifteen (15) days to notify Lessor of its acceptance or rejection of the Fair Market Value Rate for the Renewal Term and if rejecting the Fair Market Value Rate, of its election to proceed using third-party appraisers, as hereinafter described. In the event Lessee fails to so notify Lessor within such fifteen (15) day period or if Lessee rejects the Fair Market Value Rate and does not elect to proceed using third-party appraisers, Lessee shall be deemed to have rejected the Fair Market Value Rate proposed by Lessor and to have rejected its right to use third-party appraisers to determine the Fair Market Value Rate. Notwithstanding the prohibition on Lessee’s right to revoke its exercise of the Renewal Option. c. The Base Rental , in the event Lessee rejects (or is deemed to have rejected) the Fair Market Value Rate proposed by Lessor and rejects (or is deemed to have rejected) its right to use third-party appraisers, Lessee shall be deemed to have revoked the Renewal Option, and the Renewal Option shall be deemed null and void and of no further force or effect. If Lessee notifies Lessor of its election to appoint third-party appraisers to determine the Fair Market Value Rate within the time period set forth above, Lessee may no longer revoke the respective Renewal Option. Lessor and Lessee shall each appoint, by notice to the other within ten (10) business days after Lessee’s election to use third-party appraisers, a qualified disinterested MAI appraiser doing business in the area. If the appraisers so appointed are unable to agree upon the Fair Market Value Rate within thirty (30) days after the appointment of the second appraiser, they shall, within ten (10) business days thereafter appoint a third disinterested MAI appraiser and the majority shall decide upon the Fair Market Value Rate for an Option Term the Renewal Term, such decision to be rendered within forty-five (45) days after the appointment of the third appraiser. If a majority are unable to agree within the allotted time, the two determinations of Fair Market Value Rate nearest to one another in amount shall be added together, divided by two (2), and the resulting quotient shall be the Fair Market Rental Value Rate. “Fair Market Rental Rate” shall mean the market rental rate for If either party fails to appoint its appraiser within the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitationprovided, the following matters: the credit standing of Tenant; the length determination of the term; Fair Market Value Rate shall be made by the fact that Landlord will experience no vacancy other appraiser alone and if the two appraisers are unable to agree upon a third appraiser within the time period and that Tenant will not suffer the costs parties are unable to mutually agree within ten (10) business days thereafter upon a third appraiser, either party may request the President or equivalent officer of the Dallas Texas Chapter of the American Institute of Real Estate Appraisers or if none, an equivalent body, to appoint the same. Lessor and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in Lessee shall share equally the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisionsof the third appraiser, if any, but specifically excluding . The determination of the value of improvements installed in appraisers shall be final and binding and shall be enforceable by court order. Lessee shall take the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof “as is” for the Renewal Term and Lessor shall have no obligation to make any improvement or alterations to the Premises. Except as set forth in this paragraph, the leasing of the Premises for the Renewal Term shall be upon the same terms and conditions as the leasing of the Premises for the Extended Term and shall be upon and subject to all of the provisions of this Lease. Any Renewal Option Term granted to Lessee under this paragraph shall be personal to Lessee and shall not be transferred, encumbered, or assigned by Lessee or in question). For purposes any manner transferred to, or exercised by, any subtenant of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermLessee.

Appears in 1 contract

Sources: Lease Agreement (Collegiate Pacific Inc)

Renewal Options. a. 10.1.1 Provided Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord in default under this Lease and that no event or condition exists which with notice of Tenant’s intention to exercise the Renewal Option or at and the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time any grace period would constitute an Event of DefaultDefault under this Lease at the time the option may be exercised and at the time the Renewal Period commences, unless Landlord has given notice of default and grants Tenant is diligently attempting options (the "Renewal Options") to cure such event; and (iii) Tenant is occupying the Premises. Following expiration extend this Lease with respect to all of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Premises for two additional consecutive periods of five years (each a "Renewal Period"). The first Renewal Option shall be exercised by giving Tenant delivering written notice to Landlord notice at least one hundred eighty (180) days 9 months prior to the expiration Expiration Date of the current initial Term. If ; provided that Tenant fails to give has exercised the first Renewal Option, the second Renewal Option may be exercised by Tenant delivering written notice to Landlord at least 9 months prior to the 180-day periodExpiration Date of the Term of the first Renewal Period. 10.1.2 The rate of annual Base Rent (the "Renewal Rental Rate") for the first year of each Renewal Period shall be one hundred and three percent (103%) of the Base Rent in effect for the last Lease Year of the initial Term or preceding Renewal Period, then as applicable, and shall increase by three percent (3%) for each year thereafter. 10.1.3 Landlord and Tenant shall forfeit execute an amendment to this Lease within 30 days after the determination of the Renewal Option. If Tenant exercises Rental Rate, which amendment shall set forth the extended Term and the Renewal OptionRental Rate. Except for the change in the rate of Base Rent, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations Renewal Period shall be governed by subject to all of the terms and conditions of the this Lease, except as provided otherwise . 10.1.4 Neither any option granted to Tenant in this Section. Time is Lease or in any collateral instrument to renew or extend the Term, nor the exercise of any such option by Tenant, shall prevent Landlord from exercising any option or right granted or reserved to Landlord in this Lease or in any collateral instrument or that Landlord may otherwise have, to terminate this Lease or any renewal or extension of the essence in exercising Term either during the Renewal Option. c. The Base Rental for an Option original Term or during the renewed or extended term. Any renewal or extension right granted to Tenant shall be personal to Tenant and may not be exercised by any assignee, subtenant or legal representative of Tenant. Any termination of this Lease shall serve to terminate any such renewal or extension of the Term, whether or not Tenant shall have exercised any option to renew or extend the Term. No option granted to Tenant to renew or extend the Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that deemed to give Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available any further option to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (renew or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termextend.

Appears in 1 contract

Sources: Lease (Genomica Corp /De/)

Renewal Options. a. Tenant shall have the right and option to renew and extend the term of this Lease for the Renewal Terms (“Renewal Option”herein so called) upon and subject to the following terms and conditions: Tenant may extend this Lease for two (2) successive renewal periods Renewal Terms of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of by Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by 's giving Landlord notice at least one hundred eighty a Renewal Notice no more than six (1806) days months prior to the expiration of the current initial term or the immediately preceding Renewal Term, as applicable. Such Renewal Term(s) shall commence immediately upon the expiration of the initial term or subsequent Renewal Term, and upon exercise of each renewal option the expiration date of the term shall automatically become the last day of the applicable Renewal Term(s). If Tenant fails does not renew the Lease in a timely manner for the Renewal Term(s), then Tenant's rights with respect to give notice all successive Renewal Term(s) shall expire and be of no further force and effect. The exercise by Tenant of the renewal option(s) set forth herein must be made, if at all, by delivery of the Renewal Notice to Landlord prior to on or before the 180-day period, then dates set forth above. Once Tenant shall forfeit exercise such renewal option(s), Tenant may not thereafter revoke such exercise. At Landlord's election, Tenant's renewal options shall terminate and be of no further force or effect if (i) an Event of Default exists under the Renewal Option. If Lease at the time Tenant exercises attempts to exercise its renewal option, (ii) Tenant defaults under any provision of the Renewal OptionLease after exercising its renewal option and such default continues beyond any applicable cure period provided in the Lease, then (iii) at any time during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions Term of the Lease, except as provided otherwise extended, Tenant assigns the Lease to a third party, or (iv) at the time Tenant attempts to exercise its renewal option, Tenant has subleased or has demonstrated an intention to sublease more than seventy percent (70%) or more of the Premises to an unrelated third party. Tenant shall take the Premises "as is" for the Renewal Term(s) and, other than as may then be a component of the "Fair Market Rental Rate", Landlord shall have no obligation to make any improvements or alterations to same; provided, however, Landlord shall comply with its repair and maintenance obligations as set forth in this SectionLease. Time is of the essence in exercising Annual Base Rent for the Renewal Option. c. The Base Rental for an Option Term Term(s) shall be the "Fair Market Rental Rate" multiplied by the number of square feet of net rentable area in the Building. Within thirty (30) days after the date of Tenant's Renewal Notice, Landlord and Tenant shall endeavor in good faith to agree upon the Fair Market Rental RateRate applicable to the Building for each year of the Renewal Term. In the event Landlord and Tenant are unable to agree upon the Fair Market Rental Rate” Rate within the aforesaid thirty (30) day period, Landlord and Tenant shall mean each select a broker to determine the market rental rate Fair Market Rental Rate within thirty five (35) days after the date of the Renewal Notice. Each broker shall make an independent determination of the Fair Market Rental Rate of the Building for each year of the time period such determination is being made Renewal Term. If the two brokers so appointed agree on the Fair Market Rental Rate for each year of the Renewal Term within forty (40) days after the date of the Renewal Notice, the Fair Market Rental Rate shall be the amount determined by them. If the two brokers so appointed do not agree on the Fair Market Rental Rate within forty (40) days after the date of the Renewal Notice, the two brokers shall jointly appoint a third broker on or before the forty fifth (45th) day after the date of the Renewal Notice. The third broker shall make a valuation within fifty (50) days after the date of the Renewal Notice and the Fair Market Rental Rate for each year of the Renewal Term shall be an amount equal to the quotient obtained by dividing the sum of the Fair Market Rental Rates determined by the two brokers who were closest to each other in amount, by two. Each broker appointed shall be an individual of recognized competence who has a minimum of ten (l0) consecutive years' experience in the leasing of office space in same class office buildings the suburban Northern Virginia area immediately preceding such engagement. All valuations of the Fair Market Rental Rate shall be in the area writing, shall be expressed in terms of Murfreesboro, Tennessee (the “Area”) an annual rent per square foot of comparable condition for space of equivalent quality, size, utilityrentable area, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.into

Appears in 1 contract

Sources: Deed of Lease (Coherent Communications Systems Corp)

Renewal Options. a. Tenant shall have (a) Lessor hereby grants to Lessee the right and option to renew extend the Term of this Lease for the following periods (each, a "Renewal Option”Term"): (i) for two a period of five (25) years commencing on the date that is the day after the expiration of the Base Term and ending on the fifth (5th) anniversary of the expiration of the Base Term (the "First Renewal Term"); and (ii) for five (5) additional successive renewal periods terms of five (5) years each (each, an “Option "Additional Renewal Term", and together with the First Renewal Term (the "Renewal Terms"); provided), however, with each such Additional Renewal Term commencing on the Renewal Option date that is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at day after the expiration of the current preceding Renewal Term; . Notwithstanding the foregoing, in the event that the exercise of any Renewal Term shall cause this Lease to be deemed a transfer" of real property for purposes of the imposition of a real property transfer or other Tax in the state in which the Property is located, then Lessor and Lessee agree that the Renewal Term which causes this Lease to be so deemed a transfer of real property shall be shortened so as to avoid the imposition of such Tax and any remaining, unexercised Renewal Terms shall be deemed void and of no further force or effect. (iib) no event has occurred that upon notice or In order to exercise its option to extend this Lease for any Renewal Term, the passage of time would constitute an Event of Default, unless Landlord has given following procedure shall be followed: (i) Lessee shall give Lessor written notice of default and Tenant is diligently attempting its intent to cure such event; and exercise its option to extend the Term of this Lease not less than twelve (iii12) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the Base Term or the then current Renewal Term, as the case may be (the "Intent to Renew Date"), time being of the essence. (ii) The monthly Base Rent payable for the First Renewal Term shall be equal to one hundred and eight percent (108%) of the contractual rent as of the last day of the Base Term. If Tenant fails to give notice to Landlord prior to the 180-day periodLessee and Lessor enter into a Merged Lease (as defined below), then Tenant for renewal purposes, the "contractual rent" shall forfeit mean the Base Rent under this Lease plus the "Base Rent" under the AMP Lease. For each of the first two (2) Additional Renewal Option. If Tenant exercises Terms, the Renewal Optionmonthly Base Rent shall be one hundred one and one half percent (101 1/2%) and one hundred five percent (105%), then respectively, of the Base Rent applicable during the Option preceding Renewal Term, Landlord and Tenant’s respective rights, duties and obligations . The monthly Base Rent for any Renewal Term thereafter (the "Fair Market Renewal Terms") shall be governed by the terms and conditions equal to ninety-five percent (95%) of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental RateValue as determined as of the Intent to Renew Date for the applicable Renewal Term. Upon receipt of Lessee's notice to exercise its option for a Fair Market Renewal Term, Lessor and Lessee shall promptly commence good faith negotiations to agree upon the Fair Market Rental Rate” Value for such Fair Market Renewal Term. If the parties cannot agree on the Fair Market Rental Value within sixty (60) days after Lessor has received Lessee's notice to exercise its option for a Fair Market Renewal Term, the Fair Market Rental Value shall mean be determined by the market rental rate Appraisal Procedure. Lessor and Lessee also agree to discuss their respective view of Fair Market Rental Value before Lessee exercises its option, if so requested by Lessee; each party agreeing they shall not be bound by such discussions. (c) The right of Lessee to extend the Term of this Lease for any Renewal Term is contingent (i) upon there not being any Lease Event of Default in existence on the time period date of Lessee's exercise of such determination is being made for office right or on the date that the Renewal Term commences and (ii) Lessee leasing the Property and all other space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermBuilding.

Appears in 1 contract

Sources: Lease Agreement (Griffin Capital Essential Asset REIT II, Inc.)

Renewal Options. a. 22.1 Subject to the provisions hereinafter set forth, Landlord hereby grants to Tenant shall have the right and an option to renew extend the Lease Term of this Lease, for a period of three (3) years, subject to variation pursuant to the terms of Section 23.4 and 24.4 below (the First Renewal OptionPeriod”) after the expiration of the initial Term, which First Renewal Period shall commence on the day after the Expiration Date (the “First Renewal Period Commencement Date”) and end on the day before the third (3rd) anniversary of the First Renewal Period Commencement Date and an option to extend the Term of this Lease, for two a period of three (23) successive renewal periods years, subject to variation pursuant to the terms of five Section 23.4 and 24.4 below (5the “Second Renewal Period”) years each after the expiration of the First Renewal Period, which Second Renewal Period shall commence on the day after the expiration of the First Renewal Period (the “Second Renewal Period Commencement Date”) and end on the day before the third (3rd) anniversary of the Second Renewal Period Commencement Date. 22.2 Each such option shall be exercisable by written notice (each, a “Renewal Notice”) from Tenant to Landlord of Tenant’s election to exercise said option given not later than nine(9) months prior to the First Renewal Period Commencement Date or Second Renewal Period Commencement Date, as applicable. If Tenant’s then applicable option is not so exercised, said option and all future options shall thereupon expire. 22.3 Tenant may only exercise either such option, and an “Option Term”); providedexercise thereof shall only be effective, however, the Renewal Option is contingent upon the following: if (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise of said option and on the First Renewal Option Period Commencement Date or at the expiration Second Renewal Period Commencement Date, as applicable, this Lease is in full force and effect and no Event of the current Term; Default by Tenant exists, and (ii) inasmuch as said option is intended only for the benefit of the original Tenant named in this Lease and said Tenant has not assigned this Lease or sublet more than fifty percent (50%) of the Premises for substantially all of the remaining term other than through a Permitted Transfer. Without limitation of the foregoing, no event has occurred that upon notice sublessee or assignee other than an assignee through a Permitted Transfer shall be entitled to exercise said option. 22.4 Base Rent payable during each Renewal Period with respect to all space included in the passage Premises as of time would constitute an Event the First Renewal Period Commencement Date or Second Renewal Period Commencement Date, as applicable shall be equal to ninety-five percent (95%) of Default, unless the Market Rent (as hereinafter defined). Landlord has given shall give Tenant written notice of default and the Market Rent, including yearly escalations, within thirty (30) days following written request by Tenant is diligently attempting but not earlier than twelve (12) months prior to cure such event; and (iii) the First Renewal Period Commencement Date or Second Renewal Period Commencement Date, as applicable. If Tenant is occupying the Premises. Following expiration disagrees with Landlord’s determination of the final Option Term allowable hereunderMarket Rent, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving notify Landlord notice at least one hundred eighty of such disagreement within twenty (18020) days prior to the expiration after receipt of Landlord’s determination of the current TermMarket Rent, which notice shall set forth Tenant’s determination of the Market Rent. If Tenant fails to give notice to so notify Landlord prior to of Tenant’s disagreement and Tenant’s determination of Market Rent within the 180-day required time period, then Tenant Landlord’s determination of the Market Rent shall forfeit the Renewal Optionbe binding on Tenant. If Tenant exercises so notifies Landlord that Landlord’s determination of the Renewal Option, then during the Option TermMarket Rent is not acceptable to Tenant together with Tenant’s determination of Market Rent, Landlord and Tenant shall, during the fifteen (15) day period after Tenant’s respective rightsnotice (the “Negotiation Period”), duties attempt to agree on the Market Rent. If Landlord and obligations Tenant are unable to agree, Tenant shall within ten (10) days after the Negotiation Period, either (i) accept Landlord’s determination of the Market Rent, (ii) if Tenant has not already exercised its then current option, reject Landlord’s determination and decline to exercise such option, or (iii) reject such determination, exercise such option, if Tenant has not already done so, and submit the determination to binding arbitration as provided below. If Tenant fails to so notify Landlord of Tenant’s election under the preceding sentence within said ten (10) day period after the Negotiation Period, Tenant shall be governed deemed to have rejected Landlord’s determination and to have declined to exercise its current option, if Tenant had not already exercised such option. In the event Tenant timely elects arbitration to determine the Market Rent, Landlord and Tenant shall, within ten (10) days after such election to arbitrate, each select a real estate broker who shall have at least ten (10) years’ experience in leasing office space in the Market Area, with working knowledge of current rental rates and practices and shall not be an employee of Landlord or Tenant or a broker retained by Landlord of Tenant in the previous twelve (12) month period. If either Landlord or Tenant fails to appoint a real estate broker within the ten (10) day period referred to above, the real estate broker appointed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term other party shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate sole real estate broker for the time period such determination is being made purposes hereof. Upon selection, Landlord’s and Tenant’s real estate broker shall select an independent third real estate broker meeting the aforementioned criteria, which third real estate broker must not have been employed or engaged by either Landlord or Tenant within the previous twelve (12) month period. If the two (2) real estate brokers cannot agree on the selection of the independent third real estate broker within ten (10) days of their selection, then either party may request appointment of the independent third real estate broker by application to the JAMS. Once the independent third real estate broker has been selected as provided for office space above (or, if a party has failed to timely select any real estate broker, then once that party has failed to make that selection), then, as soon thereafter as practicable but in same class office buildings in the area of Murfreesboro, Tennessee any case within fourteen (the “Area”14) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitationdays, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant independent third real estate broker (or the lack thereof sole real estate broker, as applicable) shall make his/her determination of which of Landlord’s estimate of the Market Rent or Tenant’s estimate of the Market Rent (collectively, the “Estimates”) most closely reflects the actual Market Rent for the Option Term First Renewal Period or the Second Renewal Period, as applicable, and such Estimate shall be binding on both Landlord and Tenant as the Market Rent for the Premises for such Renewal Period. Such independent, third real estate broker shall only be permitted to select either Landlord’s or Tenant’s Estimate after making his/her independent determination of the Market Rent and shall not be permitted to establish a different rate. The parties shall share equally in questionthe costs of the third real estate broker (or the sole real estate broker, as applicable). For purposes Any fees of any leasing broker, counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such real estate broker, counsel or expert. 22.5 If Tenant has validly exercised one of such calculationoptions, it will only within thirty (30) days after the parties hereto agree upon the Market Rent, Landlord and Tenant shall enter into a written amendment to this Lease confirming the terms, conditions and provisions applicable to the First Renewal Period or Second Renewal Period, as applicable, as determined in accordance herewith, with such revisions to the rental provisions of this Lease as may be assumed that Landlord is paying a representative necessary to conform such provisions to the Market Rent. Tenant’s failure to timely execute such amendment shall not negate the irrevocable nature of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermTenant’s election.

Appears in 1 contract

Sources: Lease Agreement (Atheros Communications Inc)

Renewal Options. a. Section 43.1 Provided that (a) this Lease is in full force and effect as of the date of the First Renewal Notice (as hereinafter defined) and the Second Renewal Notice (as hereinafter defined), as the case may be, (b) there shall not then be existing an Event of Default hereunder and (c) Tenant shall be in actual physical occupancy of at least 50% of the Premises on the date of the applicable Renewal Notice and upon commencement of the applicable Renewal Term, Tenant shall have two options to extend the right Term of this Lease, each for an additional term of five years (respectively, the “First Renewal Term” and the “Second Renewal Term” and collectively, the “Renewal Terms”), commencing on the day after the Fixed Expiration Date, in the case of the First Renewal Term, and commencing on the day after the last day of the First Renewal Term, in the case of the Second Renewal Term. Notwithstanding the preceding sentence, Landlord, in its sole discretion, may waive any Event of Default by Tenant and no such Event of Default may be used by Tenant to negate the effectiveness of Tenant’s exercise of the option(s) hereunder. Tenant’s option with respect to the First Renewal Term shall be exercisable by written notice (the “First Renewal Notice”) to Landlord given not later than twelve (12) months prior to the Fixed Expiration Date. Tenant’s option with respect to the Second Renewal Term, shall be exercisable by written notice (the “Second Renewal Notice”) to Landlord given not later than twelve (12) months prior to the last day of the First Renewal Term. The Renewal Terms shall constitute extensions of the initial Term of this Lease and shall be upon all of the same terms and conditions as the initial Term, except that (i) there shall be only one option to renew the term of this Lease (“for the Second Renewal Option”) for two (2) successive renewal periods Term in the First Renewal Term, and there shall be no further option to renew the term of five (5) years each (eachthis Lease in the Second Renewal Term, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice Landlord shall not be required to furnish any materials or perform any work to prepare the passage of time would constitute an Event of DefaultPremises for Tenant’s occupancy and Landlord shall not be required to reimburse Tenant for any Back to Contents Alterations made or to be made by Tenant, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) the Fixed Rent for the Renewal Terms shall be payable at a rate per annum equal to the fair market rental value of the Premises as of the first day of the First Renewal Term in the case of the First Renewal Term, and as of the first day of the Second Renewal Term in the case of the Second Renewal Term. During both Renewal Terms, all sums of Additional Rent that Tenant is occupying obligated to pay under this Lease during the Premises. Following expiration initial Term shall continue without interruption, it being the intention of the final Option parties hereto that the Renewal Terms shall be deemed a part of and continuation of the initial Term allowable hereunder, of this Lease. Section 43.2 If Tenant shall have no further right given the First Renewal Notice or the Second Renewal Notice, as the case may be, in accordance with Section 43.1 of this Article 43, the parties shall endeavor to renew agree upon the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration fair market rental value of the current Premises, as of the first day of each Renewal Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the In determining fair market rental rate for value, the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination parties shall take into account all relevant factorsfactors and the Premises shall be deemed to have Building standard improvements, includingnotwithstanding that Tenant may have installed above standard improvements. In the event that the parties are unable to agree upon such fair market value for either Renewal Term within thirty (30) days after the giving of the First Renewal Notice or the Second Renewal Notice as the case may be, without limitationthen Tenant shall have the right to void the First Renewal Notice or Second Renewal Notice, as the case may be, upon notice to Landlord, or if Tenant does not so void such notice then either party may request that the same be determined as follows: A senior officer of a nationally recognized leasing brokerage firm with local knowledge of Westchester County real estate and knowledge of the greater New York laboratory / research and development leasing market (the “Baseball Arbitrator”) shall be selected and paid for jointly by Landlord and Tenant. If Landlord and Tenant are unable to agree upon the Baseball Arbitrator, then the same shall be designated by the Manhattan Chapter of the American Arbitration Association or any successor organization thereto (the “AAA”). The Baseball Arbitrator selected by the parties or designated by the President of the AAA shall (i) have at least ten years experience in the leasing of office and laboratory / research and development space in Westchester County and (ii) not have been employed or retained by either Landlord or Tenant or any affiliate of either for a period of at least 10 years prior to his/her appointment pursuant hereto. Landlord and Tenant shall each submit to the Baseball Arbitrator and to the other its determination of the fair market rental value. The Baseball Arbitrator shall afford to Landlord and Tenant a hearing and the right to submit evidence. The Baseball Arbitrator shall determine which of the two rent determinations more closely represents the fair market rental value of the Premises. The arbitrator may not select any other fair market rental value for the Premises other than one submitted by Landlord or Tenant. The determination of the party so selected or designated shall be binding upon Landlord and Tenant and shall serve as the basis for the determination of the Fixed Rent payable for the applicable Renewal Term. If, as of the commencement date of the applicable Renewal Term, the following matters: the credit standing of Tenant; the length amount of the term; Fixed Rent payable during the fact that Landlord will experience no vacancy period applicable Renewal Term in accordance with this Article 43 shall not have been determined, then, pending such determination, Tenant shall pay Fixed Rent equal to the Fixed Rent payable in respect of the last year of the Initial Term in the case of the First Renewal Term and that Tenant will in the last year of the First Renewal Term in the case of the Second Renewal Term. After the final determination of the Fixed Rent payable for such Renewal Term, the parties promptly and appropriately shall adjust rental payments theretofore made during the applicable Renewal Term and shall execute a written agreement specifying the amount of the Fixed Rent as so Back to Contents determined. Any failure of the parties to execute such written agreement shall not suffer affect the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable validity of the Fixed Rent as so determined. Section 43.3 It is an express condition of the options granted to Tenant in pursuant to the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding terms of this Article 43 that time is of the value of improvements installed in the Premises at essence with respect to Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes exercise of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with options within the Option Term in question if Landlord is in fact paying a brokerage commission periods above provided. Back to a representative of Tenant in connection with the applicable Option Term.Contents

Appears in 1 contract

Sources: Lease Agreement (Progenics Pharmaceuticals Inc)

Renewal Options. a. (a) Provided this Lease shall then be in full force and effect and Tenant shall not then be in default in the observance or performance of any of the terms of this Lease which are of a monetary nature and in connection with which default Landlord shall have commenced a legal action against Tenant, Tenant may elect, at its option, to extend the right and option to renew the Lease (“Renewal Option”) Term of this Lease, for two (2) successive an initial renewal periods period of five (5) years each (each, an “Option the "First Renewal Term"); provided, however, . The First Renewal Term shall commence on the date immediately following the Expiration Date (the "First Renewal Option is contingent upon Term Commencement Date") and shall terminate on the following: fifth (i5th) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration anniversary of the current Term; Expiration Date (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option "First Renewal Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5Expiration Date"). b. (b) Tenant shall exercise the Renewal Option option described herein by giving Landlord written notice at least one hundred eighty of such election to extend the initial Term of this Lease not later than twenty-four (18024) days months prior to the expiration Expiration Date, and upon the giving of such notice, but subject to Tenant's right to revoke its election pursuant to subsection 41.01(d)(iii)(C), and provided that this Lease shall then be in full force and effect at the time of the current Term. If Tenant fails to give notice to Landlord prior to exercise of such option and on the 180-day periodExpiration Date, then Tenant the initial Term of this Lease shall forfeit thereupon be deemed renewed for the First Renewal Option. If Tenant exercises Term upon all the Renewal Optioncovenants, then during the Option Termagreements, Landlord terms, provisions and Tenant’s respective rightsconditions contained herein, duties and obligations shall be governed by the terms except such covenants, agreements, terms, provisions and conditions of the Lease, this Lease as shall be inapplicable or irrelevant and except as provided otherwise set forth in this Section. Time is Section 41.01, and with the same force and effect as if the First Renewal Term had originally been included in the initial Term of this Lease. (a) Provided Tenant shall have exercised its option to renew this Lease for the First Renewal Term, and provided further that this Lease shall then be in full force and effect and Tenant shall not then be in default in the observance or performance of any of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area terms of Murfreesboro, Tennessee (the “Area”) this Lease which are of comparable condition for space of equivalent quality, size, utility, a monetary nature and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with which default Landlord shall have commenced a legal action against Tenant, Tenant, at Tenant's option, shall have the Option right to extend the Term of this Lease for a second five (5) year period (the "Second Renewal Term"). The Second Renewal Term shall commence on the date immediately following the First Renewal Term Expiration Date (the "Second Renewal Term Commencement Date") and shall terminate on the fifth (5th) anniversary of the First Renewal Term Expiration Date (the "Second Renewal Term Expiration Date"). (a) Provided Tenant shall have exercised its option to renew this Lease for the Second Renewal Term, and provided further that this Lease shall then be in question if Landlord is full force and effect and Tenant shall not then be in fact paying default in the observance or performance of any of the terms of this Lease which are of a brokerage commission to a representative of Tenant _________ nature and in connection with which default Landlord ______ have commenced a legal action against Tenant, Tenant, at ______ option, shall have the applicable Option right to extend the Term of _____ Lease for a third five (5) year period (the "Third ____________ Term."). The Third Renewal Term shall commence on the _______ immediately following the Second Renewal Term Expiration __________ the "Third Renewal Term Commencement Date") and shall _________ on the fifth (5th) anniversary of the Second Renewal Expiration Date (the "Third Renewal Term Expiration -109- (a) Provided Tenant shall have exercised its option to renew this Lease for the Third Renewal Term, and provided further that this Lease shall then be in full force and effect and Tenant shall not then be in default in the observance or performance of any of the terms of this Lease which are of a monetary nature and in connection with which default Landlord shall have commenced a legal action against Tenant, Tenant, at Tenant's option, shall have the right to extend the Term of this Lease for a fourth five (5) year period (the "Fourth Renewal Term"). The Fourth Renewal Term shall commence on the date immediately following the Third Renewal Term Expiration Date (the "Fourth Renewal Term Commencement Date") and shall terminate on the fifth (5th) anniversary of the Third Renewal Term Expiration Date (the "Fourth Renewal Term Expiration Date"). -110-

Appears in 1 contract

Sources: Lease Agreement (Pilot Network Services Inc)

Renewal Options. a. Tenant shall continue to have the option to renew the term of the Lease with respect to only the Current Premises in accordance with the terms of Rider 1 to the Lease, which renewal option is hereby ratified and confirmed. In addition, Tenant shall have the option to renew the term of the Lease with respect to only the 260 Expansion Space in accordance with the terms of Exhibit C attached hereto. If Tenant fails to exercise a renewal option with respect to the Current Premises (or later with respect to the 260 Expansion Space) so that Tenant only leases the 260 Expansion Space (or only the Current Premises), then Landlord and Tenant shall enter into an amendment to the Lease, as amended hereby, to reflect the changes in the Agreed Rentable Area, Tenant’s Pro Rata Share Percentage and other appropriate terms. As an alternative to the renewal options described above, Tenant shall have the right and option to renew the term of the Lease with respect to all (but not a portion) of both the Current Premises and the 260 Expansion Space (the Expanded Premises Renewal Option”) for two (2) successive renewal periods a period of five (5) years each (eachcommencing on February 1, an “Option Term”); provided2015 and expiring on January 31, however2020, subject to and in accordance with the Renewal Option is contingent upon the following: (i) there is not an Event terms of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Exhibit D attached hereto. If Tenant is diligently attempting entitled to cure such event; and (iii) Tenant is occupying properly exercises the Premises. Following expiration Expanded Premises Renewal Option, then Rider 1 to the Lease and Exhibit C attached hereto shall automatically be deleted and of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Termforce or effect. If Tenant fails to give notice to Landlord prior to properly exercise the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Expanded Premises Renewal Option, then during Exhibit D attached hereto shall automatically be deleted and Tenant shall continue to have the Option Termrenewal options described above with respect to only the Current Premises and with respect to only the 260 Expansion Space, Landlord and Tenant’s respective rights, duties and obligations shall be governed by subject to the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Optionthereof. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Bazaarvoice Inc)

Renewal Options. a. Tenant shall have the right and option to renew the initial Term of this Lease (“Renewal Option”the "Initial Term") for two (2) successive renewal additional periods of five (5) years each (eacheach of such additional periods being hereinafter referred to as a "Renewal Period"). Each renewal option shall be exercisable by Tenant by giving notice of the exercise of such renewal option to Landlord at least 270 days before the expiration of the initial Term, an “Option Term”); providedin the case of the first renewal option, howeveror at least 270 days before the expiration of the first Renewal Period, in the case of the second renewal option, except that if the Basic Rent per square foot for the first lease year in a Renewal Period has not been determined by the last day on which the renewal option for such Renewal Period must be exercised in accordance with the procedure set forth in Paragraph 41.4 below, the period of time within which Tenant may exercise the renewal option for such Renewal Option is contingent upon Period shall be extended until 15 days after the following: (i) there is determination of the Base Rent per square foot for the first lease year in such Renewal Period. Time shall be of the essence in connection with Tenant's exercise of the renewal options. Tenant may not exercise the renewal option for the second Renewal Period unless Tenant has previously exercised the renewal option for the first Renewal Period in accordance with the provisions of this paragraph. Tenant may not exercise the option for a Renewal Period if, at the time Tenant purportedly exercises its option or on the last day of the initial Term, in the case of the first renewal option, or the last day of the first Renewal Period, in the case of the second renewal option, an Event of Default beyond all applicable cure period(shas occurred and is continuing. If (i) at the time last day on which Tenant gives Landlord notice of Tenant’s intention has the right to exercise the Renewal Option or at renewal option (the "Last Exercise Date") occurs less than 270 days before the expiration of the current initial Term; (ii) no event has occurred that upon notice or , in the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration case of the final Option Term allowable hereunderfirst renewal option, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) or less than 270 days prior to before the expiration of the current Term. If Tenant fails to give notice to Landlord prior to first Renewal Period, in the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions case of the Leasesecond renewal option, except as provided otherwise in this Section. Time is of and (ii) Tenant does not exercise the essence in exercising renewal option, the Renewal Option. c. The Base Rental for an Option Term shall be extended until the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length last day of the term; month in which the fact that Landlord will experience no vacancy period and that Tenant will not suffer 270th day after the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question)Last Exercise Date occurs. For purposes of determining the Basic Rent payable during the extension provided by the preceding sentence, the Base Rent per square foot shall be the fair rental value of the Demised Premises as actually determined by the procedure described in Paragraph 41.4 below with respect to the Renewal Period for which Tenant did not exercise its renewal option, and such calculation, it will only amount shall be assumed that Landlord is paying a representative of paid by Tenant a brokerage commission without the need for any amendment to this Lease and as fully as if such amount were set forth in connection this Lease. If Tenant timely exercises the options to renew this Lease in accordance with the Option provisions of this Article, then the Term shall be extended accordingly. Except as otherwise expressly provided in question if Landlord is this Article, each Renewal Period shall be upon the same terms, covenants and conditions set forth in fact paying a brokerage commission this Lease with respect to a representative of the initial Term and Tenant's obligations to pay Operating Expense Increases and Real Estate Tax Increases shall continue without interruption during each Renewal Period, except that there shall be no renewal options after the second Renewal Period. All references in this Lease to the "Term" shall include each Renewal Period for which Tenant in connection with the applicable Option Termshall have effectively exercised its renewal option.

Appears in 1 contract

Sources: Lease Agreement (Computer Learning Centers Inc)

Renewal Options. a. Tenant At the end of the Base Lease Term and any Renewal Term (other than any Renewal Term ending four years after the end of the Base Lease Term), so long as no Lease Event of Default or Lease Default (of the type described in Section 14.1 or 14.5) has occurred and is continuing, Lessee shall have the right and option to renew this Lease for a Renewal Term. In order to exercise the option to renew, Lessee shall notify Lessor thereof in writing not more than nine months nor less than six months prior to the commencement of the applicable Renewal Term (which notice shall be irrevocable and shall specify the length of such Renewal Term). Renewal Rent shall be payable in arrears for each Lease Period occurring during any Renewal Term. The Renewal Rent payable for any Renewal Term hereunder shall be the fair market rental value of the Aircraft (as defined below) calculated as of the commencement of such Renewal Option”) Term. Such fair market rental value shall be determined not later than three months prior to the commencement of such Renewal Term by mutual consent of Owner Participant and Lessee or, if they shall be unable so to agree, by three recognized independent aircraft appraisers, one chosen and paid for by Owner Participant, one chosen and paid for by Lessee and the third appraiser chosen by the mutual consent of the first two (2) successive renewal periods appraisers and paid for equally by Owner Participant and Lessee, the appraisals of five (5) years each (each, an “Option Term”)which three appraisers shall be averaged and such average shall be deemed to be the fair market rental value of the Aircraft for all purposes hereof; provided, however, that if the Renewal Option appraisal of one appraiser is contingent upon more disparate from the following: (i) there is not an Event average of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration three appraisals than each of the current Term; (ii) no event has occurred that upon notice or other two SALE AND LEASE AGREEMENT [N397SW] -56- 63 appraisals, then the passage appraisal of time would constitute an Event of Defaultsuch appraiser shall be excluded, unless Landlord has given notice of default the remaining appraisals shall be averaged and Tenant is diligently attempting such average shall be deemed to cure such event; and (iii) Tenant is occupying be the Premises. Following expiration fair market rental value of the final Option Term allowable hereunder, Tenant Aircraft for all purposes hereof. If either Owner Participant or Lessee shall have no further right fail to renew appoint an appraiser by the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days date which is two months prior to the expiration commencement of such Renewal Term or if such two appraisers cannot agree on the current amount of such appraisal and fail to appoint a third appraiser by the date which is one month before the commencement of such Renewal Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee either Owner Participant or Lessee may apply to any court having jurisdiction (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length courts referred to in Section 13(b) of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available Participation Agreement) to tenants comparable to Tenant in the Area (make such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question)appointment. For purposes of such calculationthis Section 18.1, it will only fair market rental value shall be assumed the cash rental obtainable in an arm's-length lease between an informed and willing lessee (under no compulsion to lease) and an informed and willing lessor (under no compulsion to lease) and shall be determined on the assumptions that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord Aircraft is in fact paying a brokerage commission the United States of America, available for use by Lessee, unencumbered by any renewal or purchase option contained in this Lease, in the return condition required by Section 5 of this Lease and otherwise in compliance with and subject to a representative the terms and requirements of Tenant this Lease. Stipulated Loss Value amounts that are payable during any such Renewal Term shall be calculated as of the date of commencement of such Renewal Term and shall be determined in connection the same manner referred to above based on the fair market sales value of the Aircraft on such date determined in accordance with the applicable Option TermSection 18.2(a).

Appears in 1 contract

Sources: Sale and Lease Agreement (Southwest Airlines Co)

Renewal Options. a. (a) Provided no Monetary Default then exists and Tenant is not otherwise in default hereunder (subsequent to any required notice and the expiration of any cure period) at the time of the exercise of the within applicable option and Tenant, as of each of the date that Tenant exercises the option and the commencement date of the extension term, occupies at least two hundred thousand (200,000) rentable square feet of the Tower Space (including any space which Tenant would be occupying but for (x) the untenantability thereof or (y) the then actual performance therein of Improvements for Tenant's own use), Tenant shall have the right and to extend the term of this Lease as it relates to the Tower Space through the expiration date of the Lease as it relates to the Pedestal Space (i.e., through the twentieth (20th) Lease Year so that the term of the Lease as it relates to the Tower Space shall be coterminous with the initial term of this Lease on the Pedestal Space), which extension period is hereinafter referred to as the "Tower Space Extension Term". In connection with Tenant's exercise of its option to renew extend as provided in this Section 41.01, Tenant shall have the right to extend the term of this Lease on all of the Tower Space demised under this Lease as of the exercise of its option or less than all such space provided (“Renewal Option”a) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: such lesser amount (i) there is not an Event contains at 123 least 200,000 rentable square feet of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; space, (ii) no event has occurred consists of entire floors of contiguous space (except that upon notice or the passage lowest floor of time would constitute an Event the contiguous space may, at Tenant's option, be a half floor so long as such half floor is located in the easterly half of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; the Building) and (iii) Tenant is occupying the Premises. Following expiration consists of the final Option Term allowable hereunderhighest floors demised to Tenant as of Tenant's exercise of said option and (b) Tenant specifies in its notice of the exercise of the option the space on which it is exercising said option. The within described option shall be exercisable only in the following manner: (b) Tenant shall, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty earlier than thirty-six (18036) days months, nor later than twenty-four (24) months, prior to the expiration date of the current Term. If Tenant fails to initial term of this Lease of the Tower Space, give notice to Landlord prior written notice, pursuant to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by in accordance with the terms of Article 26 hereof, of Tenant's election to extend this Lease on the terms, covenants, terms, provisions, agreements and conditions of the Lease, except as hereinafter provided otherwise in this Section. Time is of the essence in exercising the Renewal OptionSections 41.02 and 41. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Credit Suisse First Boston Usa Inc)

Renewal Options. a. Upon the expiration of the Term as set forth in Article 1(c), Tenant shall have the right and option to renew extend the Term at its election for either 1 – 10 year term or 3 – 5 year terms, such election to be made by Tenant in Tenant’s written notice of exercise of the first option period. The right and option to extend the term of the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is shall be subject to and contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at conditions set forth hereinafter. Tenant’s right and option to extend the time Term shall be exercisable by Tenant gives Landlord giving written notice of Tenant’s intention to the exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless right and option to Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days 12 months prior to the expiration of the current Term. If In the event Tenant fails to give written notice of its intent to Landlord prior exercise any option as provided above, all of Tenant’s right and options to extend the Term shall be deemed to have been waived by Tenant and shall be of no further force or effect. In the event Tenant exercises its right and option(s) in accordance with the provisions hereof, the Term shall be extended accordingly (subject to Tenant’s rescission right as set forth below), and all the references contained in the Lease to the 180-day periodTerm, then whether by number of years or number of months, shall be construed to refer to the original term of the Lease, as extended, whether or not specific reference is made thereto in the Lease. Unless otherwise expressly provided to the contrary, the extended Term shall be upon the same terms, conditions, and covenants as set forth in the Lease except that there shall be no further right or option to extend the term of the Lease after the 10 year option term or after the third 5 year option term, as the case may be. The time within which the option(s) must be exercised and the reply times in this Section 33 are hereby made of the essence. The right and option(s) to extend the Lease Term shall be subject to and contingent upon each and every one of the following conditions: (i) The Lease is in full force and effect; (ii) Tenant shall forfeit not be in monetary or other material default under any of the Renewal Option. If Tenant exercises the Renewal Optionterms, then during the Option Termprovisions, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms covenants and conditions of the Lease, except as provided otherwise in this Section. Time is ; (iii) All provisions relating to the initial construction of the essence Premises shall be deleted; (iv) In lieu of the sums set forth in exercising Paragraph 1(d) of the Renewal Option. c. The Base Rental for an Option Term Lease, the monthly rental to be paid by Tenant during the option period(s) shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean greater of (A) the fair market rental rate for value, including annual fair market increases in rental value (collectively, the time period such determination is being made for office space in same class office buildings “FMV”) determined pursuant to Subsection 33(v), or (B) the monthly rent payable by Tenant in the area last year of Murfreesboro, Tennessee the immediately preceding Term (the “AreaPrior Rent Alternative). (v) After Tenant has given written notice to the Landlord of comparable condition its intention to exercise the renewal option(s), Landlord shall, within 15 business days thereafter, deliver to Tenant a written notice stating the Minimum Rent to be paid for space the Premises during the renewal term. If the Minimum Rent quoted by Landlord is not the Prior Rent Alternative and if Tenant objects to the Minimum Rent quoted by Landlord it shall within 15 business days of equivalent qualityTenant’s receipt of Landlord’s quote, sizeeither (i) notify Landlord in writing that it elects to rescind its exercise of the renewal option, utilityin which case Tenant shall have no obligation to renew, and locationTenant shall be deemed to have waived any present or future right to renew, or (ii) notify Landlord in writing that it objects to the Minimum Rent quoted by Landlord in which case the FMV shall be negotiated between Landlord and Tenant. In the event the parties cannot agree to the FMV within thirty (30) days after Landlord’s receipt of Tenant’s objection, the FMV shall be determined by arbitration as hereinafter provided. Landlord and Tenant shall each appoint a fit and impartial person as an arbitrator who shall have at least 10 years’ experience in the commercial office real estate industry in the Burlington County area. Such determination appointment shall take into account be signified in writing by each party to the other. The arbitrators so appointed shall appoint a third arbitrator within 10 business days after the appointment of the second arbitrator. In the case of the failure of such arbitrators (or the arbitrators appointed as hereinafter provided) to agree upon a third arbitrator, such third arbitrator shall be appointed by the American Arbitration Association or its successor, or from its qualified panel or arbitrators, and shall be a person having at least 10 years’ experience in the commercial office real estate industry in the Burlington County area. In case either party shall fail to appoint an arbitrator within a period of 10 business days after written notice from the other party to make such appointment, then the American Arbitration Association shall appoint a second arbitrator having at least 10 years’ experience in the commercial office real estate industry in the Burlington County area. The 2 arbitrators so appointed shall appoint the 3rd arbitrator within 10 business days after the appointment of the 2nd arbitrator. Each arbitrator shall proceed with all relevant reasonable dispatch to determine the FMV and under all circumstances shall be bound by the terms of this Lease and shall not add to, subtract from, or otherwise modify such provisions. The decision of each arbitrator shall, in any event, be rendered within thirty (30) days after the appointment of the third arbitrator and such decision shall be in writing and in duplicate with one counterpart delivered to each Landlord and Tenant. The arbitration shall be conducted in accordance with the rules of the American Arbitration Association (or its successor) and applicable New Jersey law, and the FMV shall be determined by averaging the two closest appraisals, which shall be binding, final and conclusive upon Landlord and Tenant. The fees of the arbitrators and the expenses incident to the proceedings shall be borne equally between Landlord and Tenant. In establishing the FMV, Landlord and any appraiser which may be appointed pursuant to this Section 33 are directed to consider all appropriate factors, including, including without limitation, the following matters: the credit standing of Tenant; the length “AS IS” condition of the term; Premises, rental concessions customarily given at the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating time to a new lease; construction allowances and other nonrenewal tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense including without limitation a tenant work allowance, free rent periodsand other economic incentives), rental rates at which comparable landlords at comparable buildings in the Burlington County, New Jersey area have at arms length recently leased comparable size space for comparable time to comparable tenants, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termother appropriate matters.

Appears in 1 contract

Sources: Lease Agreement (Realogy Corp)

Renewal Options. a. Tenant Lessee shall have the right and option to renew extend this Lease with respect to the Lease (“Renewal Option”) Aircraft for two (2) successive renewal periods having a duration of five (5) two years each (each, an each such period being hereinafter referred to as a Option Renewal Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or each commencing at the expiration of the current Basic Term or a Renewal Term; , as the case may be. During any such Renewal Term, (a) the monthly Basic Rent shall be the monthly equivalent of the Fair Market Rental Value of the Aircraft and (b) the monthly Stipulated Loss Value amounts shall be the Stipulated Loss Value as of the last day of the Basic Term and thereafter the Stipulated Loss Value shall decline monthly on each Stipulated Loss Value Determination Date during such Renewal Term at a rate of 3% per annum through the end of such Renewal Term. Each such option to renew shall be exercised upon written revocable notice from Lessee to Lessor given not less than 300 days prior to (i) the Lease Expiry Date or (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration last day of the final Option Renewal Term allowable hereunderthen in effect, Tenant as the case may be. Within 30 days of Lessee’s delivery of such revocable notice to Lessor, Lessee LA 1 – Lease Agreement and Lessor shall have calculate the amounts that would be payable in respect of Basic Rent and Stipulated Loss Value during such Renewal Term in accordance with the second sentence of this Section (including the determination of the applicable Fair Market Rental Value of the Aircraft by mutual agreement or Independent Appraisal), and promptly following such calculation (but in any event no further right later than the date that is 270 days prior to (i) the Lease Expiry Date or (ii) the last day of the Renewal Term then in effect, as the case may be), Lessee shall either deliver an irrevocable notice to renew the Lease or revoke its earlier revocable notice to renew the Lease. If no Event of Default shall have occurred and be continuing on the Lease Expiry Date or the last day of the Renewal Term then in effect, as the case may be, then this Lease shall be extended for the additional period of such Renewal Term at the Basic Rent and Stipulated Loss Value amounts calculated pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilitypreceding sentence, and location. Such determination shall take into account all relevant factors, including, without limitation, otherwise on the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates same conditions provided for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termherein.

Appears in 1 contract

Sources: A320 Family Aircraft Purchase Agreement (American Airlines, Inc.)

Renewal Options. a. Tenant shall have have, and is hereby granted, the right and option to renew options (the Lease (“Renewal OptionOptions”) to extend the Term of this Lease Agreement for two (2) successive renewal additional periods of five (5) years each (eachas applicable, an the Option Extended Term”); provided) upon and subject to the following terms, however, the conditions and provisions: A. The Renewal Option is contingent upon the following: Options may only be exercised by Tenant giving irrevocable written notice thereof to Landlord no earlier than twelve (i12) there is not an Event of Default beyond all applicable cure period(smonths nor later than six (6) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the then current TermTerm of this Lease Agreement. If Tenant fails to give Landlord such written notice to Landlord prior to the 180-day of exercise of such Renewal Option within such specified time period, then Tenant shall forfeit be deemed to have elected not to exercise, and to have waived, such Renewal Option and the Renewal OptionOption shall automatically terminate and expire and be of no further force and effect. It is expressly agreed that Tenant shall not have the option to extend the Term of this Lease Agreement beyond the Extended Term. If Tenant exercises either of the Renewal OptionOptions, then during such Extended Term shall commence immediately upon the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions expiration of the Leasethen current Term of this Lease Agreement (as applicable, except as provided otherwise in this Section. Time is the “Extended Term Commencement Date”). B. If Tenant exercises either of the essence Renewal Options (in exercising accordance with and subject to the Renewal Option. c. The Base Rental for an Option provisions of this Section 51), the Extended Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilityupon, and location. Such determination shall take into account subject to, all relevant factorsof the terms, covenants and conditions provided in this Lease Agreement except for any terms, covenants and conditions that are expressly or by their nature inapplicable to the Extended Term (including, without limitation, the right to renew the Term of this Lease Agreement beyond the Extended Term) and except that (i) the annual Base Rent and other economic considerations during the Extended Term shall be equal to the Prevailing Market Rental Rate (as defined in accordance with Section 51.D below and determined by Landlord at the time Tenant exercises such Renewal Option and (ii) the Leased Premises and all leasehold improvements relating thereto will be provided in the condition they exist (i.e., “AS IS” and “WITH ALL FAULTS”) on the Extended Term Commencement Date, and this Lease Agreement shall be deemed to have been automatically amended as of the Extended Term Commencement Date in accordance with this Section 51. Tenant and Landlord shall promptly (but in no event longer than fifteen (15) days after Landlord’s submission of the amendment to Tenant) execute and deliver an appropriate amendment of this Lease Agreement to evidence such terms following matterscommencement of the Extended Term. C. Notwithstanding any provision herein to the contrary, Tenant shall not have the right to extend the Term of this Lease Agreement pursuant to this Section 51 and such right shall automatically terminate and be of no further force and effect if, at the time Tenant exercises such Renewal Option or on the Extended Term Commencement Date, Tenant is in default under this Lease Agreement beyond any applicable grace period. Tenant shall not have the right to assign the Renewal Options to any sublessee or assignee of the Leased Premises, nor may any such sublessee or assignee exercise the Renewal Options. D. As used in this Lease Agreement, the term “Prevailing Market Rental Rate” means, as to any space subject to this Lease Agreement for which it is being determined (the “Subject Premises”), the annual amount of “gross” rental that a willing tenant would pay in a similar type transaction (i.e., renewal) and a willing landlord would accept in arm’s length, bona fide negotiations for lease of the Subject Premises to be executed at the time of determination and to commence on the commencement of the subject lease term, based upon other lease transactions made in the Building and other comparable office buildings in the Gulf Freeway/Clear Lake area of Houston, Texas, taking into consideration all relevant terms and conditions of any comparable leasing transactions, including, without limitation: (i) location, quality and age of the building (taking into consideration renovations); (ii) use and size of the space in question; (iii) location and/or floor level within the building; (iv) extent of leasehold improvement allowances (considering existing improvements); (v) the amount of any abatement of rental or other charges; (vi) parking charges or inclusion of same in rental; (vii) lease takeovers/assumptions; (viii) club memberships; (ix) relocation allowances; (x) refurbishment and repainting allowances; (xi) any and all other concessions or inducements; (xii) extent of services provided or to be provided; (xiii) distinction between “gross” and “net” lease; (xiv) base year or dollar amount for escalation purposes (both operating costs and ad valorem/real estate taxes); (xv) any other adjustments (including by way of indexes) to base rental; (xvi) credit standing and financial stature of Tenantthe tenant or subtenant; the and (xvii) length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Orion Marine Group Inc)

Renewal Options. a. Provided Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default then in default hereunder, beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon any applicable notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunderand/or grace period herein provided, Tenant shall have and is hereby granted an option ("First Option") to extend the Original Term for one additional term of ten years ("First Option Term") on the same terms and conditions as herein provided. In the event that Tenant timely exercises the First Option, Tenant shall have and is hereby granted four additional consecutive options (each an "Additional Option" and together with the First Option the "Options") to extend the Term. Each Additional Option shall be for five years (each an "Additional Option Term"). The First Option may be exercised only with respect to all, but not some, of the Properties. Each of the Additional Options may be exercised with respect to all or any combination of the Properties. Notwithstanding the foregoing, Tenant shall not have the right to exercise any Additional Option if at the time such Additional Option is otherwise exercisable, Tenant shall be in default hereunder, beyond expiration of any applicable notice and/or grace period herein provided, or any prior Option with respect to the Property has not been timely exercised. In any such event, any unexercised Option shall lapse and be of no further right to renew force or effect. During the Lease pursuant to this First Option Term, the "Base Rent" (as defined in Section 5. b. 3.1 below) shall be $8,925,840.00. During each Additional Option Terms the Base Rent shall be the sum of the "Option Rent" for each Property which said Additional Option Term is applicable as such "Option Rent" for that Property is set forth on Exhibit "F" attached hereto and made a part hereof. Tenant shall exercise the Renewal First Option and each Additional Option by giving delivery to Landlord of written notice at least one hundred eighty (180) thereof not later than 730 days prior to the expiration of the Original Term, First Option Term or the then current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Additional Option Term, as the case may be. Notwithstanding the foregoing, Tenant's right to exercise any Option shall not terminate until ten days after receipt by Tenant of written notice from Landlord of the nonexercise by Tenant of such Option and Tenant’s respective rights's failure to elect to exercise such Option within such ten day period. The Original Term, duties and obligations shall as the same may be governed extended from time to time by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an First Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable any Additional Option Term, is sometimes referred to herein as the "Term".

Appears in 1 contract

Sources: Lease Agreement (Meyer Fred Inc)

Renewal Options. a. Tenant shall have the right and option two (2) options to renew the Lease (each a “Renewal Option”) the term of this Lease for two (2) successive renewal periods of five (5) years each each. The first Renewal Option, if exercised at all, shall be exercised by written notice to Landlord given not less than six (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i6) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current Termfifth (5th) Lease Year (time being of the essence). If The second Renewal Option, if exercised at all, shall be exercised by written notice to Landlord given not less than six (6) months prior to the expiration of the tenth (10th) Lease Year (time being of the essence). Notwithstanding the foregoing, if Tenant fails to give notice to Landlord prior to the 180-day periodexercise a Renewal Option as aforesaid, then Tenant shall forfeit have no options to extend the Term, unless otherwise agreed to by Landlord. All references to the “Term” of this Lease shall, unless the context shall clearly indicate a different meaning, be deemed to include any extension of the Term (the “Renewal Term”) resulting from Tenant’s valid exercise of a Renewal Option. If Tenant exercises the a Renewal Option, then the parties shall continue to perform all of their respective obligations under this Lease during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Term applicable to such Renewal Option. c. The ; provided, however, that during each Renewal Term: (a) the Base Rental Rent for an Option the first Lease Year of such Renewal Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee increased to an amount one hundred two and one half percent (the “Area”102.5%) of comparable condition the Base Rent payable during the immediately preceding Lease Year; (b) the Base Rent for space each succeeding Lease Year of equivalent quality, size, utility, such Renewal Term (after the first year) shall be increased to an amount one hundred two and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length one half percent (102.5%) of the termBase Rent payable during the immediately preceding Lease Year; and (c) Tenant shall continue to pay the fact that Landlord will experience no vacancy period Tax and that Tenant will not suffer Operating Expense Rent as provided in Article IV (Rent) below during the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Renewal Term.

Appears in 1 contract

Sources: Lease Agreement (1847 Goedeker Inc.)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of MurfreesboroBrentwood, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Triple Net Office Lease Agreement (Franklin Financial Network Inc.)

Renewal Options. a. 2.3.1 Subject to and in accordance with the terms and conditions of this Section 2.3, Tenant shall have two (2) options (each, an “Renewal Option”) to extend the Term of this Lease with respect to the entire Tenant Space, each for an additional term of ten (10) years (collectively the “Renewal Terms”, each a “Renewal Term”), upon the same terms, conditions and provisions applicable to the then current Term of this Lease (except as provided otherwise herein). The Base Rent payable with respect to the Tenant Space for each Renewal Term (the “Option Rent”) shall be as set forth in Item 9 of the Basic Lease Information. Notwithstanding anything in this Lease to the contrary, any Permitted Transferee may exercise the Renewal Options granted hereunder. 2.3.2 Tenant may exercise each Renewal Option only by delivering to Landlord a written notice (an “Option Exercise Notice”) at least twelve (12) months prior to then applicable expiration date of the Term, which Option Exercise Notice shall specify that Tenant is irrevocably exercising its Renewal Option so as to extend the Term of this Lease by a Renewal Term on the terms set forth in this Section 2.3. In the event that Tenant shall duly exercise a Renewal Option, the Term shall be extended to include the applicable Renewal Term (and all references to the Term in this Lease shall be deemed to refer to the Term specified in Item 5 of the Basic Lease Information, plus all duly exercised Renewal Terms). In the event that Tenant shall fail to deliver an Option Exercise Notice within the applicable time period specified herein for the delivery thereof, time being of the essence, at the election of Landlord, Tenant shall be deemed to have forever waived and relinquished such Renewal Option, and any other options or rights to renew or extend the Term effective after the then applicable expiration date of the Term shall terminate and shall be of no further force or effect. 2.3.3 Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the exercise any Renewal Option is contingent upon only with respect to the following: entire Tenant Space leased by Tenant (i) there is not an Event as opposed to only a portion of Default beyond all applicable cure period(sthe Tenant Space) at the time that Tenant gives delivers an Option Exercise Notice. If Tenant duly exercises a Renewal Option, Landlord notice and Tenant shall execute an amendment reflecting such exercise. Notwithstanding anything to the contrary herein, any attempted exercise by Tenant of a Renewal Option shall, at the election of Landlord, be invalid, ineffective, and of no force or effect if, on the date on which Tenant delivers an Option Exercise Notice there shall be an uncured Event of Default by Tenant under this Lease. 2.3.4 Tenant’s intention rights under this Section 2.3 shall terminate if (i) this Lease or Tenant’s right to exercise the Renewal Option or at the expiration possession of the current Term; Premises is terminated, or (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day periodtimely exercise its option under this Section 2.3, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is time being of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available respect to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termexercise thereof.

Appears in 1 contract

Sources: Master Meet Me Room Lease (Telx Group, Inc.)

Renewal Options. a. (a) So long as an Event of Default is not then continuing and subject to the provisions of this Section 7.1, Tenant shall have the right and option to renew the Lease (“Renewal Option”) for is hereby granted two (2) successive renewal periods options (the first such option, the "First Renewal Option" and the second such option, the "Second Renewal Option," each individually, a "Renewal Option," and such options collectively, the "Renewal Options") to renew the Initial Term as to all (but not part) of the Leased Premises (including, except as provided in Section 7.2, any space added to the Leased Premises pursuant to Section 7.2) for a period of five (5) years each (eacheach individually, an “Option a "Renewal Term”); provided, however" and collectively, the "Renewal Option is contingent upon Terms"), but in no event to exceed a maximum period in the following: aggregate of ten (i10) there is not an Event of Default beyond all applicable cure period(sadditional years. The first Renewal Term (the "First Renewal Term") shall commence at the time expiration of the Initial Term and the second Renewal Term (the "Second Renewal Term") shall commence at the expiration of the First Renewal Term. Tenant gives must furnish Landlord with written notice of Tenant’s intention its intent to exercise the Renewal Option or at the expiration of the current Term; no later than eleven (ii11) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current Initial Term or the First Renewal Term, as applicable (the "Intent Notice"). If Tenant timely delivers the Intent Notice to Landlord, Landlord shall no later than ten (10) months prior to the expiration of the Initial Term or the First Renewal Term, as applicable, deliver to Tenant written notice of the Market Base Rental Rate (defined below) as of the commencement of the applicable Renewal Term and the Parking Rental for the Parking Permits (if applicable pursuant to subsection (b)(iii) below). If Tenant timely furnished the Intent Notice to Landlord as provided above, Tenant may exercise the applicable Renewal Option by delivering written notice of such election (the "Election Notice") to Landlord no later than thirty (30) days after receipt of Landlord's notice of the Market Base Rental Rate. If Tenant timely delivers the Intent Notice and the Election Notice to Landlord, but at any time prior to the commencement of the applicable Renewal Term an Event of Default has occurred, Landlord, at its sole option during the continuance of such Event of Default, may terminate Tenant's election to exercise such Renewal Option and such Renewal Option and the subsequent Renewal Option (if any) shall expire and thereafter shall not be exercisable by Tenant and Tenant shall have waived forever its right to renew and extend the Term. If Tenant fails to give notice timely exercise the applicable Renewal Option by failing to Landlord prior timely deliver the Intent Notice or the Election Notice as provided above, the applicable Renewal Option and the subsequent Renewal Option (if any) shall terminate automatically, and Tenant shall have waived forever its right to renew and extend the Term. (b) The renewal of this Lease pursuant to the 180-day period, then Tenant shall forfeit exercise of the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by upon the same terms and conditions of this Lease (including, without limitation, Tenant's obligation to pay the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental Adjustment), except: (i) the Base Rental Rate for an Option the Leased Premises during the applicable Renewal Term shall be the Fair sum of (A) ninety-five percent (95%) of the Market Base Rental Rate for such Renewal Term as of the commencement of the Renewal Term, plus (B) the Basic Cost Component for such Renewal Term (as adjusted by clause (ii) below); however, in no event shall the Base Rental Rate during such Renewal Term be less than the Base Rental Rate (as adjusted pursuant to Section 3.2(b)(i) of this Lease) Tenant is obligated to pay under this Lease immediately prior to the commencement of such Renewal Term. The Base Rental Rate during such Renewal Term shall be subject to increase as provided in Section 3.2(b) of this Lease and Tenant shall be obligated to pay the Base Rental Adjustment pursuant to Section 3.2(b) of this Lease (taking into account the adjusted Basic Cost Component pursuant to clause (ii) below); (ii) the Basic Cost Component (as defined in Section 3.2(b)(i) of this Lease) shall be amended for the applicable Renewal Term to equal the Expense Stop (defined below). As used in this clause (ii), "Expense Stop" shall mean Landlord's determination of the Basic Costs (on a per square foot of Net Rentable Area basis) for the calendar year in which such Renewal Term commences; (iii) at the time of the Tenant's exercise of a Renewal Option, if Landlord is charging any tenants then entering into leases for office space in the Building for parking spaces in the Garage, Tenant shall pay Landlord, as Parking Rental, a monthly amount equal to the rates charged by Landlord or the operator of the Garage for parking in such location (taking into account whether such parking spaces are for regular or executive parking spaces) for monthly contract parking in the Garage multiplied by the number of Parking Permits leased by Tenant pursuant to this Lease, which Parking Rental shall be payable as provided in Section 6.15(b) of this Lease; (iv) Tenant shall have no option to renew this Lease beyond the First Renewal Term if Tenant fails to exercise the Second Renewal Option as provided above, or, in any event, beyond the Second Renewal Term; and (v) the leasehold improvements will be provided in their then-existing condition (on an "as is" basis) at the time the applicable Renewal Term commences and Tenant shall not be entitled to any construction, buildout or other allowances with respect to the Leased Premises during such Renewal Term. (c) As used in this Lease, "Market Base Rental Rate. “Fair Market Rental Rate” " shall mean Landlord's determination of the market annual net rental rate (exclusive of expense pass through additions, whether characterized as such or not, and exclusive of any portion of "base rentals" attributable to expenses or to an "expense stop") per square foot of Net Rentable Area for the applicable space and for the time period as to which such determination rate is being made for office space determined, that a willing tenant would pay and a willing landlord would accept, in same class office buildings in the area of Murfreesboro, Tennessee arm's length bona fide negotiations (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take taking into account consideration all relevant factors, factors including, without limitation, the following mattersfactors: rent being charged in other first-class office buildings located in Houston, Texas, for leases then being entered into for comparable space to the credit standing of TenantLeased Premises in the comparable elevator bank for which the Market Base Rental Rate is being determined; the length location, quality, amenities, age and reputation of the termbuildings in which the space being compared is located; use and size of the fact that Landlord will experience no vacancy period space under comparison; location and/or floor level of the subject space and that Tenant will not suffer any comparison space within their respective buildings, including view, elevator lobby exposure, etc.; definition of "net rentable area" applicable to the spaces; distinction (if any) between "gross" and "net" rental rates and type, base year or dollar amount for escalation purposes (both operating costs and business interruption associated with moving its offices real estate taxes) if the comparison is on a "gross" lease basis; any other adjustments (including through use of an index) to base rental; extent of services provided or to be provided; extent and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant condition of leasehold improvements in the Area subject space and in any comparison space; cost to tenant of relocating from the subject space to any alternative space or savings from not moving to alternative space; abatements pertaining to the subject space and to any comparison space (such as including with respect to base rental, operating expenses and/or real estate taxes); inclusion of parking charges in rental, if applicable; lease takeovers/assumptions by the landlord of the comparison space, if applicable; moving expense allowance, free rent periods, and lease assumptions and take over provisionsallowances granted, if any; relocation allowances granted, but specifically excluding if any; club memberships granted, if any; construction, refurbishment and repainting allowances granted, if any; any other concessions or inducements; term or length of lease of subject space and of any comparison space; overall creditworthiness of Tenant and lessees in comparable space; the value time the particular rental rate under consideration was agreed upon and became or is to become effective; and payment of improvements installed a leasing commission, fees, bonuses or other compensation whether to Tenant's representatives or to Landlord, or to any person or entity affiliated with Tenant or Landlord, or otherwise). Landlord and Tenant agree that bona fide written offers to lease comparable space located in the Premises at Tenant’s cost), and whether adjustments are then being made Building from third parties may be used as a factor in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermMarket Base Rental Rate.

Appears in 1 contract

Sources: Lease Agreement (FSP Phoenix Tower Corp)

Renewal Options. a. Tenant shall have have, and is hereby granted, the right and option to renew options (the Lease (“Renewal OptionOptions”) to extend the Term of this Lease Agreement for two (2) successive renewal additional periods of five (5) years each (eachas applicable, an the Option Extended Term”); provided) upon and subject to the following terms, however, the conditions and provisions: A. The Renewal Option is contingent upon the following: Options may only be exercised by Tenant giving irrevocable written notice thereof to Landlord no earlier than fourteen (i14) there is not an Event of Default beyond all applicable cure period(smonths nor later than nine (9) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the then current TermTerm of this Lease Agreement. If Tenant fails to give Landlord such written notice to Landlord prior to the 180-day of exercise of such Renewal Option within such specified time period, then Tenant shall forfeit be deemed to have elected not to exercise, and to have waived, such Renewal Option and the Renewal OptionOption shall automatically terminate and expire and be of no further force and effect. It is expressly agreed that Tenant shall not have the option to extend the Term of this Lease Agreement beyond the Extended Term. If Tenant exercises either of the Renewal OptionOptions, then during such Extended Term shall commence immediately upon the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions expiration of the Leasethen current Term of this Lease Agreement (as applicable, except as provided otherwise in this Section. Time is the “Extended Term Commencement Date”). B. If Tenant exercises either of the essence Renewal Options (in exercising accordance with and subject to the Renewal Option. c. The Base Rental for an Option provisions of this Section 49), the Extended Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilityupon, and location. Such determination shall take into account subject to, all relevant factorsof the terms, covenants and conditions provided in this Lease Agreement except for any terms, covenants and conditions that are expressly or by their nature inapplicable to the Extended Term (including, without limitation, the following matters: right to renew the credit standing Term of Tenant; this Lease Agreement beyond the length Extended Term) and except that (i) the annual Base Rent during the applicable Extended Term shall be equal to the Prevailing Market Rental Rate (as defined and determined in accordance with Section 50 below) at the time Tenant exercises such Renewal Option, and (ii) the Leased Premises and all leasehold improvements relating thereto will be provided in the condition they exist (i.e., “AS IS” and “WITH ALL FAULTS”) on the Extended Term Commencement Date, and this Lease Agreement shall be deemed to have been automatically amended as of the term; Extended Term Commencement Date in accordance with this Section 49. Tenant and Landlord shall promptly (but in no event longer than fifteen (15) days after Landlord’s submission of the fact that Landlord will experience amendment to Tenant) execute and deliver an appropriate amendment of this Lease Agreement to evidence such terms following commencement of the Extended Term. C. Notwithstanding any provision herein to the contrary, Tenant shall not have the right to extend the Term of this Lease Agreement pursuant to this Section 49 and such right shall automatically terminate and be of no vacancy period further force and that effect if, at the time Tenant will not suffer exercises such Renewal Option or on the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Extended Term Commencement Date, Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the default under this Lease Agreement beyond any applicable Option Termgrace period.

Appears in 1 contract

Sources: Build to Suit Lease Agreement (Cardiovascular Systems Inc)

Renewal Options. a. (a) As long as Tenant is not in material or monetary default of this Lease, and Tenant is still in occupancy of a substantial portion of the Premises, Tenant shall have and is hereby granted the right option (b) All terms and option conditions of this Lease, including without limitation, all provisions governing the payment of Additional Rent, shall remain in full force and effect during the Extension Period(s), except the (1) Basic Rent payable upon the commencement of each Extension Period shall be ninety-five percent (95%) of the respective prevailing market rental rate (incorporating market concessions such as rent abatement and Tenant work allowance) with respect to renew comparable space in comparable buildings in the Lease vicinity of 9400 ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ (“Renewal Option”▇▇e "Current Market Rental Rate") at the time of the commencement of the applicable Extension Period, and (2) for purposes of computing the annual adjustments to the Basic Rent pursuant to Section 4 shall be used with subsequent escalations in Basic Rent thereafter to be determined by market practice with respect to comparable space. Landlord and Tenant shall negotiate in good faith to determine the amount of Basic Rent for the applicable Extension Period within seventy-five (75) days of the date of Landlord's receipt of Tenant's written notice of its election to exercise the respective Extension Option provided for under this Section 46. (c) In the event Landlord and Tenant are unable to agree upon the Basic Rent for any such Extension Period within said seventy-five (75) day period, then the Basic Rent for such Extension Period shall be based upon ninety-five percent (95%) of the Current Market Rental Rate determined by a board of three (3) licensed real estate brokers, one of whom shall be named by Landlord, one by Tenant, and the two so appointed shall select a third. Each member of the board of brokers shall be licensed in Maryland as a real estate broker, specializing in the field of commercial office leasing in the Rockville area of Maryland, have no less than ten (10) years' experience in such field, and recognized as ethical and reputable within the field. Landlord and Tenant agree to make their appointments promptly within five (5) days after the expiration of the seventy-five (75) day period, or sooner if mutually agreed upon. The two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives brokers selected by Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and shall promptly select a third broker within ten (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (18010) days prior to after they both have been appointed, and each broker, within fifteen (15) days after the expiration third broker is selected, shall submit his or her determination of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair said Current Market Rental Rate. “Fair The Current Market Rental Rate” Rate shall mean be the market rental rate for determination of the time period broker that is not the highest or the lowest (or if two brokers reach an identical determination, the determination of such determination is being made for office space in same class office buildings in two brokers). Landlord and Tenant shall each pay the area fee of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilitybroker selected by it, and location. Such determination they shall take into account all relevant factors, including, without limitation, equally share the following matters: the credit standing of Tenant; the length payment of the term; fee of the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthird broker.

Appears in 1 contract

Sources: Lease Agreement (Filetek Inc)

Renewal Options. a. Tenant shall have (a) As long as Lessee is not in uncured default in the right and performance of its covenants under this lease of which Lessor has given Lessee written notice, Lessee is hereby granted the option to renew the Lease term of this lease for one (“Renewal Option”1) for two (2) successive renewal periods additional period of five (5) years each (each, an “Option Term”); provided, howeveryears, the "Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention Term" to exercise the Renewal Option or commence at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage initial term of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premisesthis lease. Following expiration of the final Option Term allowable hereunder, Tenant Lessee shall have no further right exercise its option to renew the Lease pursuant as follows: Lessee shall deliver written notice to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice Lessor at least one hundred eighty six (1806) days months prior to the expiration of the current Termterm of this lease that Lessee may exercise its renewal option. Within thirty (30) days of Lessor's receipt of Lessee's written notice, Lessor shall notify Lessee in writing of the Market Base Rental Rate (hereinafter defined) that Lessee shall pay during such renewal term. Within forty five (45) days after receipt of such written notice from Lessor, Lessee shall, if it elects, deliver written notice to Lessor of its election to exercise its renewal option hereunder. If Tenant fails to give notice to Landlord prior to the 180-Lessee does not respond within such forty five (45) day period, then Tenant Lessee's right to renew hereunder shall forfeit terminate. All terms of this lease shall apply to such renewal option, except (i) the Base Rental (hereinafter defined) during the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair then prevailing Market Base Rental Rate at the time Lessee exercises the respective renewal option, (ii) Lessee shall not have an option to renew this lease beyond the expiration of the Renewal Term, (iii) Lessee shall not have the right to assign its renewal rights to any sublessee or assignee of the Premises nor may a sublessee or assignee exercise such renewal right, and (iv) the leasehold improvements will be provided in their then existing condition (i.e. on an "as-is" basis) at the time the Renewal Term commences. (b) As used in this lease, the term "Market Base Rental Rate. “Fair Market Rental Rate” " shall mean the market rental net effective rate per square foot of net rentable area at which a willing lessor and a willing lessee would agree to lease comparable space to that for which the time period such determination Market Base Rental Rate is being made for office space determined in same class comparable office buildings in the West Loop/Galleria area of MurfreesboroHouston, Tennessee (the “Area”) of comparable condition for space of equivalent qualityTexas, size, utility, and location. Such determination which rate shall take into account all relevant economic and non-economic factors, includingincluding but not limited to: the credit-worthiness, without limitationand other qualities of such lessee, the following matters: the credit standing of Tenant; the length quality of the term; management of the fact that Landlord will experience no vacancy period building in question, the amount of space being offered for lease, the location within the building of such offered space, whether the space being offered is a full floor or a portion of a multi-tenant floor, the quality and that Tenant will not suffer finish of the costs offered space as it then exists, the age and business interruption associated with moving its offices quality of such building, the lease term and negotiating a new lease; construction allowances renewal options, the scheduled or actual commencement date, add-on factors, basis for paying operating expenses, and other tenant concessions that would be available to tenants comparable to Tenant in the Area (market inducements, such as free rent, moving expense allowance, free rent periodsexpenses, and architectural, construction and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termassumption allowances.

Appears in 1 contract

Sources: Office Lease Agreement (Tanknology Environmental Inc /Tx/)

Renewal Options. a. If ▇▇▇▇▇▇ has not committed an Event of Default (as hereinafter defined) at any time during the Term, and Energy Recovery, Inc. (or a Permitted Transferee (as hereinafter defined) of Energy Recovery, Inc.) is occupying the entire Premises at the time of such election, Tenant shall have the right and option to may renew the this Lease (“Renewal Option”) for two (2) successive renewal additional periods of five (5) years each (each, an each a Option Renewal Term”), by delivering written notice of the exercise thereof to Landlord not later than twelve (12) months before the expiration of the initial Term or the first Renewal Term (as applicable). The Base Rent payable for each month during a Renewal Term shall be ninety-five percent (95%) of the Fair Market Rent (as hereinafter defined); provided, however, that the Base Rent payable in any Renewal Option Term shall in no event be lower than the Base Rent payable during the month immediately preceding the commencement of the first Renewal Term. On or before that date which is contingent upon the following: six (i6) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at months before the expiration of the current Term; (ii) no event has occurred that upon notice initial Term or the passage of time would constitute an Event of Defaultfirst Renewal Term (as applicable), unless Landlord has given shall deliver to Tenant written notice of default Landlord’s Fair Market Rent proposal for the Renewal Term (“Landlord’s Fair Market Rent Proposal”) and shall advise Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunderrequired adjustment to Base Rent, if any. Within fifteen (15) days after receipt of Landlord’s Fair Market Rent Proposal, Tenant shall notify Landlord in writing whether Tenant accepts or rejects Landlord’s Fair Market Rent Proposal. If Tenant rejects Landlord’s Fair Market Rent Proposal, then ▇▇▇▇▇▇’s written notice shall include Tenant’s determination of the Fair Market Rent. If Tenant does not deliver ▇▇▇▇▇▇’s written determination of Fair Market Rent to Landlord within fifteen (15) days after receipt of Landlord’s Fair Market Rent Proposal, Tenant will be deemed to have no further right to renew accepted Landlord’s Fair Market Rent Proposal. If ▇▇▇▇▇▇ and Landlord disagree on the Lease pursuant to this Section 5. b. Fair Market Rent, then Landlord and Tenant shall exercise attempt in good faith to agree upon the Renewal Option Fair Market Rent. If by giving Landlord notice at least that date which is one hundred eighty and twenty-five (180125) days prior to the expiration commencement of the current Term. If Tenant fails to give notice to Landlord prior to Renewal Term (the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term“Trigger Date”), Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except Tenant have not agreed in writing as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be to the Fair Market Rental Rate. Rent, the parties shall determine the Fair Market Rent for such Renewal Term in accordance with the procedure set forth in Section 3.04.c below. b. For purposes of this Section 3.04, the term “Fair Market Rental RateRent” shall mean the market rental rate for comparable space to be used for the time period Permitted Uses under primary lease (and not sublease) to new tenants, taking into consideration such determination is being made for office space amenities as existing improvements (but specifically excluding any Tenant Improvements that are not paid from the Construction Allowance (as defined in same class office buildings Exhibit D)), and parking rights, situated in the area city of MurfreesboroSan Leandro, Tennessee (in comparable physical and economic condition, taking into consideration the “Area”) of comparable condition for space of equivalent quality, size, utility, and locationthen-prevailing ordinary rental market practices with respect to tenant concessions. Such determination Fair Market Rent shall take into account all relevant factors, including, without limitation, include the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisionsperiodic rental increases, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates that would be included for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof space leased for the Option period the space will be covered by the Lease. As used herein, “then-prevailing” shall mean the time period which is five (5) months prior to the commencement of the Renewal Term in question). For purposes and not the commencement date of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Renewal Term.

Appears in 1 contract

Sources: Modified Industrial Gross Lease (Energy Recovery, Inc.)

Renewal Options. a. Tenant (a) Tenant, provided this Lease shall then be in full force and effect, shall have the right and option (herein called the "FIRST RENEWAL OPTION") to renew extend the Lease (“Renewal Option”) Term for two (2) successive renewal periods of an additional five (5) years each year period (eachthe "FIRST RENEWAL TERM"), an “which First Renewal Term shall commence on the date immediately succeeding the Expiration Date, and end on the fifth (5th) anniversary of the Expiration Date (such anniversary being herein called the "FIRST RENEWAL EXPIRATION DATE"). The First Renewal Option Term”shall be exercisable only by Tenant giving Landlord written notice of such exercise (herein called a "RENEWAL NOTICE"); provided, howeverwhich notice shall be received by Landlord not later than the date that is nine (9) months prior, nor earlier than the date that is twelve (12) months prior, to the Expiration Date (time being of the essence). Landlord, at its option, may render the Renewal Option is contingent Notice null and void upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) notice thereof to Tenant if, at the time Tenant gives that Landlord notice of Tenant’s intention to exercise receives the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereundersame, Tenant shall have no further right to renew the be in default under this Lease pursuant to this Section 5beyond any applicable notice and/or cure period. b. (b) Tenant, provided this Lease shall then be in full force and effect, and Tenant shall exercise have previously exercised the First Renewal Option, shall have the option (herein called the "SECOND RENEWAL OPTION"; the First Renewal Option and the Second Renewal Option are sometimes hereinafter referred to individually as a "RENEWAL OPTION" and together as the "RENEWAL OPTIONS") to extend the Term for an additional five (5) year period (the "SECOND RENEWAL TERM"; the First Renewal Term and the Second Renewal Term are sometimes hereinafter referred to individually as a "RENEWAL TERM" and together as the "RENEWAL TERM"), which Renewal Term shall commence on the date immediately succeeding the First Renewal Expiration Date, and end on the fifth (5th) anniversary of the First Renewal Expiration Date (such anniversary being herein called the "SECOND RENEWAL EXPIRATION DATE"; the First Renewal Expiration Date and the Second Renewal Expiration are sometimes hereinafter referred to individually as a "RENEWAL EXPIRATION DATE" and together as the "RENEWAL EXPIRATION DATES"). The Second Renewal Option shall be exercisable only by Tenant giving Landlord a written Renewal Notice, which Renewal Notice shall be received by Landlord not later than the date that is nine (9) months prior, nor earlier than the date that is twelve (12) months prior, to the First Renewal Expiration Date (time being of the essence). Landlord, at its option, may render the Renewal Option by giving Notice null and void upon notice thereof to Tenant if, at the time that Landlord notice at least one hundred eighty (180) days prior to receives the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day periodsame, then Tenant shall forfeit the Renewal Optionbe in default under this Lease beyond any applicable notice and/or cure period. 15.2.2. If Tenant exercises an applicable Renewal Option in accordance with the Renewal Optionterms set forth above, then during this Lease shall thereupon be extended for the Option applicable Renewal Term upon all the same terms, covenants and conditions as are contained in this lease and applicable prior to the applicable Renewal Term, Landlord except that for, and Tenant’s respective rightsduring, duties and obligations shall be governed by the terms and conditions of applicable Renewal Term: (1) the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term Fixed Rent shall be the Renewal Term Fixed Rent (as hereinafter defined) for such Renewal Term, as determined as hereinafter set forth; (2) the Expiration Date shall be the Renewal Expiration Date for such Renewal Term; and (3) any provisions of this Lease setting forth (i) workletter or other work obligations of Landlord, (ii) work allowances or contributions to be made by Landlord or (iii) abatements of Rent, shall not apply. (a) As used herein, the term, "RENEWAL TERM FIXED RENT" for the applicable Renewal Term shall mean a fixed rent payable at a per annum rate equal to the product of (i) the Renewal Fair Market Rental Rate. “Fair Market Rental Rate” shall mean Fixed Rent for such Renewal Term, multiplied by (ii) the market rental rate for the time period such determination is being made for office space in same class office buildings number of rentable square feet in the area of MurfreesboroPremises, Tennessee multiplied by (the “Area”iii) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area Ninety-Five Percent (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost95%), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease (Aris Corp/)

Renewal Options. a. Landlord hereby grants to Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal options to extend this Lease for periods of five (5) years each. Tenant must exercise each option to extend not later than nine (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i9) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the then current TermTerm by notice in writing to Landlord. Landlord will inform ▇▇▇▇▇▇ in writing, of Landlord’s determination of Fair Market Rent within thirty (30) days after the date Landlord receives Tenant’s exercise notice. If ▇▇▇▇▇▇ agrees with Landlord’s Fair Market Rent determination, Tenant will exercise this option and the parties will evidence such exercise by an amendment to the Lease prepared by ▇▇▇▇▇▇. If Tenant fails to give disagrees with ▇▇▇▇▇▇▇▇’s Fair Market Rent determination, Tenant shall provide written notice to Landlord prior to within thirty (30) days of receipt of Landlord’s written proposal. Thereafter, within ten (10) days of receipt of Tenant’s notice, each party at its sole cost and expense shall appoint a real estate appraiser with at least five (5) years full time commercial appraisal experience in the 180-day periodInterstate 495 North metropolitan real estate market, then Tenant shall forfeit and that is a member of the Renewal OptionAmerican Institute of Real Estate Appraisers. If Tenant exercises a party does not appoint an appraiser within ten (10) days after the Renewal Optionother party has given notice of the name of its appraiser, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations single appraiser appointed shall be governed by the terms sole appraiser and conditions shall set the Fair Market Rent for the initial year of the Leaserenewal term. If the two appraisers are appointed timely, except as provided otherwise the two appraisers shall select a third appraiser, meeting the qualifications stated in this SectionSection 34, within ten (10) days. Time is Each of the essence parties shall bear one half of the cost of paying the third appraiser’s fees. The third appraiser shall be a person who has not previously acted in exercising any capacity for either party. Each appraiser shall independently provide an appraisal with his or her determination of Fair Market Rent for the Renewal Option. c. Premises. The Base Rental for an Option Term three appraisals shall be added together and their total divided by three. The resulting quotient shall be the Fair Market Rental RateRent for the initial year of a Renewal Term. If, however, the low appraisal and/or the high appraisal are more than 15% lower or higher than the middle appraisal, the low appraisal and/or the high appraisal shall be disregarded. If only one appraisal is disregarded, the remaining two appraisals shall be added together and their total divided by two. The resulting quotient shall be the Fair Market Rental Rate” shall mean the market rental rate Rent for the time period such determination is being made for office space in same class office buildings in initial year of a Renewal Term. Thereafter, Base Rent shall increase annually by three percent (3%) over the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenantprevious year’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermBase Rent.

Appears in 1 contract

Sources: Lease Agreement (Precision Optics Corporation, Inc.)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for Lessee is hereby granted two (2) successive options to renew this Lease upon the following terms and conditions: (A) At the time of the exercise of each option to renew and at the time of the said renewal, the Lessee shall not be in monetary default in accordance with the terms and provisions of this Lease, and shall be in possession of the Premises pursuant to this Lease. (B) Notice of the exercise of the first option shall be sent to the Lessor in writing at least nine (9) months before the expiration of the Term of this Lease, and notice of the exercise of the second option shall be sent to Lessor in writing at least nine (9) months before the expiration of the first renewal periods option, TIME HEREBY BEING MADE OF THE ESSENCE. (C) The renewal terms shall be for the term of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention first renewal term to exercise the Renewal Option or commence at the expiration of the current Term; (ii) no event has occurred that upon notice or Term of this Lease, and the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting second renewal term to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice commence at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day periodfirst renewal term, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by all of the terms and conditions of the this Lease, except as provided otherwise in this Section. Time is other than the Basic Rent, shall apply during any such renewal term. (D) The Annual Basic Rent to be paid during the first renewal term shall not be less than that paid for the Premises during the last year of the essence original Term of the Lease (without regard to any temporary abatement of rent then in exercising effect pursuant to the Renewal Option. c. The Base Rental for an Option Term Lease provisions); and the Annual Basic Rent to be paid during the second renewal term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate not less than that paid for the time period Premises during the last year of the first renewal term (without regard to any temporary abatement of rent then in effect pursuant to the Lease provisions). However, if the fair rental value per square foot at the commencement of either renewal term shall exceed the rent as established in the preceding sentence, the Lessee shall pay such determination is being made for office space fair rental value. In determining the fair rental value, the Lessor shall notify Lessee of the fair rental value as established by Lessor. Should Lessee dispute Lessor's determination, then the Lessee shall be free to, at the Lessee's sole cost and expense, employ the services of an appraiser familiar with buildings similar to the Building and located within the Paramus, New Jersey area comparable to the Building, who shall be a member of The Appraisal Institute ("MAI") and who shall render an appraisal. If the Lessor and the Lessee's appraiser cannot agree on the fair rental value, or in same class office such case, on an independent appraiser acceptable to both, either party may request the American Arbitration Association of Somerset, New Jersey to appoint such independent appraiser who shall be a member of MAI familiar with buildings in the area of Murfreesboro, Tennessee (the “Area”) Building and in such event the judgment of comparable condition for space a majority of equivalent quality, size, utility, the two appraisers and locationLessor shall be final and binding upon the parties. Such determination The parties shall take into account all relevant factors, including, without limitationshare equally in the cost of any such independent appraiser. Pending resolution of the issue of fair rental value, the following matters: Lessee shall pay Lessor as of commencement of either renewal term, the credit standing Annual Basic Rent as established by Lessor, subject to retroactive adjustment upon final determination of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthis issue.

Appears in 1 contract

Sources: Lease Agreement (Long Beach Holdings Corp)

Renewal Options. a. Tenant Lessee shall have the right and option to renew extend this Lease with respect to the Lease (“Renewal Option”) Aircraft for two (2) successive renewal periods having a duration of five (5) two years each (each, an each such period being hereinafter referred to as a Option Renewal Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or each commencing at the expiration of the current Basic Term or a Renewal Term; , as the case may be. During any such Renewal Term, (a) the monthly Basic Rent shall be the monthly equivalent of the Fair Market Rental Value of the Aircraft and (b) the monthly Stipulated Loss Value amounts shall be the Stipulated Loss Value as of the last day of the Basic Term and thereafter the Stipulated Loss Value shall decline monthly on each Stipulated Loss Value Determination Date during such Renewal Term at a rate of 3% per annum through the end of such Renewal Term. Each such option to renew shall be exercised upon written revocable notice from Lessee to Lessor given not less than 300 days prior to (i) the Lease Expiry Date or (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration last day of the final Option Renewal Term allowable hereunderthen in effect, Tenant as the case may be. Within 30 days of Lessee’s delivery of such revocable notice to Lessor, Lessee and Lessor shall have calculate the amounts that would be payable in respect of Basic Rent and Stipulated Loss Value during such Renewal Term in accordance with the second sentence of this Section (including the determination of the applicable Fair Market Rental Value of the Aircraft by mutual agreement or Independent Appraisal), and promptly following such calculation (but in any event no further right later than the date that is 270 days prior to (i) the Lease Expiry Date or (ii) the last day of the Renewal Term then in effect, as the case may be), Lessee shall either deliver an irrevocable notice to renew the Lease or revoke its earlier revocable notice to renew the Lease. If no Event of Default shall have occurred and be continuing on the Lease Expiry Date or the last day of the Renewal Term then in effect, as the case may be, then this Lease shall be extended for the additional period of such Renewal Term at the Basic Rent and Stipulated Loss Value amounts calculated pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilitypreceding sentence, and locationotherwise on the same conditions provided for herein. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.CT1001520_LA1_AAL_A320Family_EXECUTION LA1 - Lease Agreement

Appears in 1 contract

Sources: Purchase Agreement (American Airlines Inc)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (a) The Borrower may, by notice (a “Renewal OptionRequest”) for to the Administrative Agent (who shall promptly notify the Lenders) given at any one time in any calendar year not less than sixty (60) days prior to any anniversary of the Amendment No. 3 Effective Date (such date, the “Anniversary Date”), request an extension of the Latest Maturity Date to a date one (1) year following the Latest Maturity Date; provided that no more than two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease Requests may be delivered pursuant to this Section 52.24. If the conditions in Section 2.24(e) are met, the Maturity Date applicable to each Renewing Lender (as defined below) shall be extended to the date one (1) year after the Latest Maturity Date that was previously applicable, effective as of the date such conditions are met. b. Tenant shall exercise (b) Each Lender may, in its individual and sole discretion, agree to so extend its Commitments (a “Renewing Lender”) by delivering to the Renewal Option by giving Landlord Administrative Agent a written notice at least one hundred eighty of its agreement to do so no later than thirty-five (18035) days prior to the expiration relevant Anniversary Date, and the Administrative Agent shall (i) notify the Borrower in writing of the current Term. If Tenant fails to give notice to Landlord Lenders’ decisions and (ii) notify the Lenders in writing of the aggregate Commitments of the Declining Lenders (as defined below), in each case no later than thirty (30) days prior to the 180-day periodrelevant Anniversary Date. The Commitment of any Lender that fails to accept or respond to a Renewal Request (such Lender, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations a “Declining Lender”) shall be governed terminated as provided in Section 2.09(a) on the Maturity Date applicable to such Lender, and any outstanding Loans of such Declining Lender shall be repaid as provided in Section 2.10(a) on such Maturity Date, in each case to the extent such Commitments and Loans are not assigned to an Increasing Renewing Lender or a New Renewing Lender pursuant to Section 2.24(c) or Section 2.24(d) below. (c) The Borrower shall have the right, on or before the relevant Anniversary Date, to replace any Declining Lender with a Renewing Lender (an “Increasing Renewing Lender”) or with one or more Eligible Assignees (each, a “New Renewing Lender”) that agrees, in each case in its individual and sole discretion, to assume all or a portion of the Commitment of a Declining Lender, and a Declining Lender shall upon the request of the Borrower assign its Commitment to such Increasing Renewing Lender or New Renewing Lender; provided that such assignment shall require each of the consents required under Section 9.04(b)(i) and must otherwise be made in compliance with Section 9.04. (d) Upon any assignment by a Declining Lender pursuant to clause (c) above, the Borrower shall pay in full to each Declining Lender the unpaid principal amount of all Loans owing to such Declining Lender in respect of any Commitments so assigned, together with all accrued and unpaid interest thereon and all fees accrued and unpaid under this Agreement to the date of such payment of principal, any break funding payment required in accordance with Section 2.17, and all other amounts due to such Declining Lender under the Financing Documents. (e) As a condition precedent to any extension pursuant to this Section 2.24, (i) more than fifty percent (50%) of the aggregate outstanding Commitments under the Revolving Credit Facility immediately prior to the relevant Anniversary Date must be extended (including by way of assignments to Increasing Renewing Lenders and New Renewing Lenders) thereby, (ii) such extension shall have been duly authorized by the terms Borrower and conditions the relevant Extension Agreement and any other documentation related thereto shall have been duly executed and delivered by the Borrower, (iii) all representations and warranties made by the Borrower in any Financing Document shall be true and correct in all material respects (and to the extent that any such representation and warranty is otherwise qualified by materiality or material adverse effect, such representation and warranty shall be true and correct in all respects) on and as of the Leaseextension effective date (or to the extent that such representations and warranties specifically refer to a specified date, except as provided otherwise in this Section. Time is of such specified date), (iv) no Default or Event of Default under the Financing Documents shall have occurred and be continuing as of the essence Extension Date or would result from such extension and (v) the Administrative Agent shall have received a certificate of an Authorized Officer of the Borrower dated as of the extension effective date certifying as to the matters set forth in exercising the Renewal Option. c. The Base Rental for an Option Term foregoing clauses (ii) – (iv) and attaching a copy of the resolutions adopted by the Borrower in compliance with the foregoing clause (ii). Any extension pursuant to this Section 2.24 shall be effected pursuant to an extension agreement executed and delivered by the Fair Market Rental RateBorrower, the Renewing Lenders, any New Renewing Lenders and the Administrative Agent (“Renewal Agreement”). “Fair Market Rental Rate” shall mean Each Renewal Agreement may, without the market rental rate for consent of any other Lenders, effect such amendments to this Agreement and the time period such determination is being made for office space in same class office buildings other Financing Documents solely as may be necessary or appropriate in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length reasonable opinion of the term; Administrative Agent to effect the fact that Landlord will experience no vacancy period provisions of this Section 2.24 as mutually agreed upon by the Administrative Agent and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermBorrower.

Appears in 1 contract

Sources: Credit Agreement (Cleco Power LLC)

Renewal Options. a. Landlord hereby grants to Tenant shall have the right and option conditional right, exercisable at Tenant’s option, to renew the term of this Lease (“Renewal Option”) for two (2) successive renewal periods terms of five (5) years each (each, an a Option Renewal Term”); provided. If exercised, howeverand if the conditions applicable thereto have been satisfied, the first such Renewal Option is contingent upon Term (the following: “First Renewal Term”) shall commence immediately following the end of the initial Term provided in Section 1.3 of this Lease, and the second Renewal Term (the “Second Renewal Term”) shall commence immediately following the end of the First Renewal Term. The rights of renewal herein granted to Tenant shall be subject to, and shall be exercised in accordance with, the following terms and conditions: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the its right of renewal with respect to a Renewal Option Term by giving Landlord written notice at least one hundred eighty of such election not earlier than eighteen (18018) days months nor later than twelve (12) months prior to the expiration of the then current term of this Lease. Within thirty (30) days following Landlord’s receipt of such notice, Landlord shall provide Tenant with Landlord’s determination of the market annual base rent, escalation factor and additional rent which shall be payable during each year of such Renewal Term. If The parties shall have thirty (30) days after delivery of such determination to Tenant fails in which to give notice agree on such annual base rent, escalation factor and additional rent. The parties shall attempt to Landlord prior to the 180-day period, then Tenant shall forfeit agree upon an annual base rent payable during the Renewal OptionTerm which would equal one hundred percent (100%) of the applicable market rent. If Tenant exercises Among the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall factors to be governed considered by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term parties during such negotiations shall be the Fair general office rental market in the Reston/Herndon area of Fairfax County, Virginia (the “Market Rental Rate. “Fair Market Rental Rate” shall mean Area”), the market rental rate rates then being quoted by Landlord to comparable tenants for comparable space in the time period such determination is Building, and the rents being made charged similar tenants for similar office space in same multi-tenanted, multi-story, first-class office buildings in the area Market Area. If during such thirty (30) day period the parties agree on such annual base rent, escalation factor and additional rent payable, then they shall promptly execute an amendment to this Lease stating the rent so agreed upon. If during such thirty (30) day period the parties are unable, for any reason whatsoever, to agree on such annual base rent, escalation factor and additional rent payable, then within ten (10) days thereafter the parties shall each appoint a real estate broker who shall be licensed in the Commonwealth of MurfreesboroVirginia and who specializes in the field of commercial office space leasing in the Market Area, Tennessee has at least ten (10) years of experience and is recognized within the field as being reputable and ethical (each, a “Reputable Broker”). Such two individuals shall each determine within ten (10) days after their appointment such annual base rent, escalation factor and additional rent. If such individuals do not agree on such items, then the two individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual (the “AreaArbitrator). The Arbitrator shall within ten (10) days after his or her appointment select either Landlord’s broker’s determination or Tenant’s broker’s determination of comparable condition for space the annual base rent, escalation factor and additional rent (this being the Arbitrator’s sole function) as being closest to the Arbitrator’s determination and shall notify the parties of equivalent quality, size, utilitysuch selection. The Arbitrator’s decision shall be final and conclusive, and locationbinding on Landlord and Tenant. Such Landlord and Tenant shall each bear the cost of its broker and shall share equally the cost of the Arbitrator. Upon determination shall take into account all relevant factorsof the annual base rent, including, without limitationescalation factor and additional rent payable pursuant to this Section, the following matters: parties shall promptly execute an amendment to this Lease stating the credit standing rent so determined. (ii) If any renewal notice is not given timely by Tenant, then Tenant’s right of Tenant; renewal with respect to the length applicable Renewal Term shall lapse and be of no further force or effect. (iii) If a monetary or material non-monetary Event of Default under this Lease exists on the date Tenant sends a renewal notice or any time thereafter until a Renewal Term is to commence, then, at Landlord’s election, such Renewal Term shall not commence and the term of this Lease shall expire at the expiration of the term; then current term of this Lease. (iv) If Tenant’s right of renewal with respect to the fact that Landlord will experience First Renewal Term lapses for any reason, then Tenant’s right of renewal with respect to the Second Renewal Term shall similarly lapse and be of no vacancy period and that further force or effect. (v) If on the date Tenant will not suffer sends a renewal notice or any time thereafter until the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available applicable Renewal Term is to tenants comparable to Tenant in commence, seventy-five (75%) or more of the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value square feet of improvements installed in rentable area of the Premises at is then being subleased or assigned, or if this Lease has been terminated with respect to any such portion, then Tenant’s cost), rights pursuant to this Article shall lapse and whether adjustments are then being made in determining the rental rates for renewals in the Area because be of concessions being offered by Landlord to Tenant (no further force or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termeffect.

Appears in 1 contract

Sources: Deed of Lease (Xo Holdings Inc)

Renewal Options. a. (1) So long as there is no uncured default hereunder by Tenant as of the date of Tenant's exercise of any Renewal Option or as of the date of the commencement of any Renewal Term, Tenant shall have the right be entitled and option to renew the Lease (“Renewal Option”) for is hereby granted two (2) successive renewal periods options (the "Renewal Options") to extend the Term for an additional period of five (5) years each (eachthe "Renewal Terms"). Except for Base Rent, an “Option Term”)as hereinafter defined and separately provided for, the Renewal Terms shall be on all the other terms and conditions of this Lease; provided, however, the Renewal Option is contingent upon the following: that (i) there is not an Event upon the exercise of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the first Renewal Option or at the expiration Tenant shall have only one remaining Renewal Option and upon its exercise of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final second Renewal Option Term allowable hereunder, Tenant shall have no further right or option to renew or extend the Lease pursuant Term without Landlord's written consent, which may be withheld in Landlord's sole discretion, and (ii) Landlord shall not have any obligations to this Section 5. b. make any improvements or otherwise provide any inducement to Tenant. Tenant shall exercise the each Renewal Option Option, if at all, only by giving written notice of such exercise to Landlord notice at least one hundred eighty not less than six (1806) days months, nor more than twelve (12) months, prior to the expiration of the Initial Term or first Renewal Term, as the case may be. Should Tenant fail to timely exercise a Renewal Option in accordance with the preceding provisions, then the Term shall expire and this Lease shall terminate at the end of the Initial Term or the current Renewal Term, as applicable, and Tenant shall have no further right or option to renew or extend the Term. If Tenant fails to give Tenant's exercise of a Renewal Option shall be irrevocable. (2) Within thirty (30) days after Landlord receives Tenant's written notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the of its exercise of a Renewal Option, then during Landlord shall deliver a notice to Tenant (the Option "Market Rate Notice") specifying the Market Rate for the applicable Renewal Term, Landlord such to be based upon Landlord's reasonable and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions good-faith determination of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental rents being charged for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilityutility and location, and locationfor terms commensurate with the applicable Renewal Term. Tenant shall have thirty (30) days (the "Examination Period") from its receipt of the Market Rate Notice to accept or reject Landlord's designation of the Market Rate. If Tenant accepts Landlord's designation of the Market Rate, the "Base Rent" for the Renewal Term will be the Market Rate as set forth in the Market Rate Notice. If Tenant fails to reject in writing Landlord's designation of the Market Rate set forth in the Market Rate Notice during the Examination Period, Tenant shall be deemed to have accepted Landlord's designation of the Market Rate, the Base Rent for the Renewal Term will be the Market Rate set forth in the Market Rate Notice. If Tenant timely rejects Landlord's designation of the Market Rate prior to the expiration of the Examination Period and Landlord and Tenant cannot agree in writing on the Market Rate within fifteen (15) days after the date Landlord receives Tenant's timely rejection of Landlord's designation of the Market Rate set forth in the Market Rate Notice (the "Negotiation Period"), Base Rent for the applicable Renewal Term will be determined as follows: (i) Tenant's notice to Landlord of Tenant's rejection of Landlord's designation of the Market Rate shall include Tenant's designation of its appraiser for purposes of determining the Market Rate in the event Landlord and Tenant cannot agree on the Market Rate during the Negotiation Period. Such determination notice shall take into account all relevant factorsfurther include appraiser's name, address and telephone number. Within ten (10) days after the expiration of the Negotiation Period (assuming that Landlord and Tenant cannot agree on the Base Rent during the Negotiation Period); Landlord shall select an appraiser of its choice and give Tenant written notice of such appraiser's name, address and telephone number. (ii) The two (2) selected appraisers shall attempt to mutually determine the fair rental value of the Leased Premises for the applicable Renewal Term and the "Base Rent" for such Renewal Term will be the fair market value as so determined. If the two (2) selected appraisers cannot agree on the fair rental value for the Leased Premises for the applicable Renewal Period within thirty (30) days after Landlord has notified Tenant of Landlord's selected appraiser, then those appraisers shall select another individual as a third appraiser within fifteen (15) days after the expiration of such thirty (30) day period, and shall furnish Landlord and Tenant written notice of such appraiser's name, address and telephone number. All appraisers selected shall be M.A.I. appraisers, unless Landlord and Tenant shall otherwise agree in writing, each having at least ten (10) years experience with commercial property in the Dallas/Fort Worth, Texas metroplex area. (iii) Each of the three (3) selected appraisers shall then individually determine the fair rental value of the Leased Premises for the applicable Renewal Term within thirty (30) days after the selection of the third appraiser and the "Base Rent" for such Renewal Term shall be the average of the three (3) appraisals. (iv) If the procedure set forth in above is implemented, and if for any reason whatsoever (including, without limitation, the following matters: institution of any judicial or other legal proceedings), the credit standing of Tenant; Base Rent for any Renewal Term has not been finally determined prior to the length first day of the term; applicable extended Renewal Term, then the fact that Market Rate initially determined by Landlord will experience no vacancy period in good faith shall be the Base Rent for all purposes under the Lease until such time as the Base Rent is finally determined as set forth above, and that Landlord and Tenant will not suffer shall, by appropriate payments to the other, correct any overpayment or underpayment which may have been made prior to such final determination. (v) All fees, costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission expenses incurred in connection with obtaining the appraisals and the arbitration procedure set forth in this paragraph shall be shared equally by Landlord and Tenant; however, Landlord and Tenant shall each bear their own attorneys' fees incurred with respect to this procedure. (3) Tenant may not assign the Renewal Options to any assignee or subleases of the Lease that is not a Permitted Assignee (hereinafter defined). No assignee or sublessee may exercise the Renewal Options unless such is a Permitted Assignee of Tenant. (4) If the Term is extended pursuant to Tenant's exercise of a Renewal Option, Landlord shall prepare, and Landlord and Tenant will execute and deliver an amendment to this Lease extending the Term and specifying the new Base Rent; provided, however, that the failure of the parties to enter into such an amendment will not affect the validity of Tenant's exercise of the Renewal Option Term in question if Landlord is in fact paying a brokerage commission to a representative or the obligations of Tenant in connection with the applicable Option parties during the Renewal Term.

Appears in 1 contract

Sources: Lease Agreement (United Stationers Supply Co)

Renewal Options. a. Provided that Tenant is not in default under any of the terms and conditions of this Agreement beyond the periods for notice and cure pursuant to Article 21 hereof; Tenant shall have the right and option to renew the Lease (“Renewal Option”) this Agreement for two (2) successive renewal periods an additional term of five (5) years each (eachyears, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: same terms and conditions contained in this Agreement, except (i) there shall be only one further renewal option, and (ii) the Base Rent shall be recalculated using fifty percent (50%) of the Index identified in Section 6.03 above. The renewal rent for each year of the first renewal term shall be the equivalent of $26.50 per square foot of net rentable space, adjusted upward (or downward as the case may be) by fifty percent (50%) of the percentage change in the Index from December 2, 1996 to the commencement date of the first renewal term. If the renewal option is not an Event of Default beyond all applicable cure period(s) at exercised by Tenant, the time first renewal term shall commence on December 3, 2001 and expire on December 3, 2006. In order to exercise the renewal option, Tenant gives must give Landlord notice of Tenant’s its intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty eighteen (18018) days months prior to the expiration date of the current Terminitial term. If Tenant fails to give notice to Landlord prior Time shall be of the essence with respect to the 180-day period, then exercise of the renewal option. Provided that Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the is not in default under any terms and conditions of this Agreement beyond the Leaseperiods for notice and cure pursuant to Article 21 hereof; Tenant shall have a further option to renew this Agreement for an additional term of five (5) years, upon the same terms and conditions contained in this Agreement, except (i) there shall be no further renewal option, and (ii) the Base Rent shall be recalculated using one hundred percent (100%)of the Index identified in Section 6.03, above. The renewal rent for each year of the second renewal term shall be the equivalent of the Base Rent per square foot for the first renewal term, adjusted upward (or downward as provided otherwise the case may be) by one hundred percent (100%) of the percentage change in this Sectionthe Index from December 3, 2006 to the commencement date of the second renewal term. If the second renewal option is exercised by Tenant, the second renewal term shall commence on December 4, 2006 and expire on December 4, 2011. In order to exercise the second renewal option, Tenant must have validly exercised the first renewal option and must thereafter give Landlord notice of its intention to renew at least eighteen (18) months prior to the expiration date of the first renewal term. Time is shall be of the essence in exercising with respect to the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length exercise of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termrenewal option.

Appears in 1 contract

Sources: Lease Agreement (Pathogenesis Corp)

Renewal Options. a. Section26(c) of the Lease shall only apply to the Existing Premises. A new Section 26(g) is hereby added to the Lease to provide as follows: (a) Provided no Event of Default exists under the Lease, and further provided Tenant has not subleased or assigned all or any portion of the Fourth Floor Premises other than to a Permitted Transferee as defined in Section 10(h) of the Original Lease, Tenant shall have the right and option to renew the Lease two (2) options (each an Fourth Floor Premises Renewal Option”) to extend the Fourth Floor Premises Term for two (2) successive renewal periods of five three (53) years each (each, each an “Option TermFourth Floor Premises Renewal Period”); provided. The Fourth Floor Premises Renewal Period shall commence at 12:00 a.m. on the day immediately following the Fourth Floor Premises Expiration Date or the expiration of the first Fourth Floor Premises Renewal Period, howeveras applicable, (the “Fourth Floor Doc#: US1:15707530v2 Doc#: US1:15707530v1 Premises Renewal Option is contingent upon Period Commencement Date”) and end at 11:59 p.m. on the following: day immediately preceding the three (i3) there is not an Event year anniversary of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice Fourth Floor Premises Renewal Period Commencement Date. As a condition of Tenant’s exercise of its option for an Fourth Floor Premises Renewal Period, Tenant must satisfy the following conditions: (A) Tenant must notify Landlord, in writing, of its intention to exercise the Fourth Floor Premises Renewal Option or at not later than two hundred seventy (270) days prior to the expiration Fourth Floor Premises Expiration Date (in the case of the current Term; first Fourth Floor Premises Renewal Option) or not later than two hundred seventy (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180270) days prior to the expiration of the current Term. If first Fourth Floor Period Renewal Period (in the case of the second Fourth Floor Premises Renewal Option) (B) The Basic Rent during the Fourth Floor Premises Renewal Period shall equal either (1) a rental rate mutually agreed to between Landlord and Tenant fails or (2) the Current Market Rental Rate (hereinafter defined), as determined in accordance with paragraph (b) below, multiplied by the number of rentable square feet in the Fourth Floor Premises. (C) Tenant shall continue to give notice pay to Landlord prior Additional Rent during any Fourth Floor Premises Renewal Period under the same terms and conditions as described in the Lease. (D) Unless otherwise agreed in writing by the parties, Basic Rent shall continue to increase at the 180-rate of [***] annually during the Fourth Floor Premises Renewal Period. (E) Failure by Tenant to timely satisfy the conditions set out hereinabove for the Fourth Floor Premises Renewal Period shall result in the termination of the Fourth Floor Premises Renewal Options. (b) Landlord and Tenant shall endeavor in good faith within the sixty (60) days following ▇▇▇▇▇▇’s notice of its intention to exercise the Fourth Floor Premises Renewal Option to agree upon a rental rate for the Fourth Floor Premises Renewal Period. However, if Landlord and Tenant are unable to agree within such sixty (60) day period, then Landlord and Tenant shall forfeit each within the Renewal Option. If Tenant exercises next fifteen (15) days name an appraiser to represent them, and the Renewal Option, two so appointed shall endeavor to jointly agree on the then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions Current Market Rental Rate of the Fourth Floor Premises (including the fixed percentage rate for annual rent increases). As used in this Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. Fair Current Market Rental Rate” shall mean the market annual gross rental rate per square foot for renewals of existing leases, for the applicable space and for the time period as to which such determination rate is being made determined, that a willing tenant would pay and a willing landlord would accept, in arm’s length bona fide negotiations (for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take renewal leases taking into account consideration all relevant factors, factors for renewal leases including, without limitation, the following mattersfactors: rent being charged in other similar office buildings located in the credit standing Southpark submarket of TenantDoc#: US1:15707530v2 Doc#: US1:15707530v1 Charlotte, North Carolina for comparable tenants, for renewal leases then being entered into for comparable space to the Premises; the length location, quality, amenities, age and reputation of the termbuildings in which the space being compared is located; use and size of the fact that Landlord will experience no vacancy period space under comparison; location and/or floor level of the subject space and that Tenant will not suffer the costs any comparison space within their respective buildings; extent of services provided or to be provided; extent and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant condition of leasehold improvements in the Area subject space and in any comparison space; abatements pertaining to the subject space and to any comparison space (such as including with respect to base rental, operating expense and/or real estate taxes); inclusion of parking charges in rental, if applicable; lease takeovers/assumptions by the landlord of the comparison space, if applicable; moving expense allowance, free rent periods, and lease assumptions and take over provisionsallowances granted, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question subject space and with respect to any comparison space; relocation allowances granted, if Landlord is in fact paying a brokerage commission to a representative of Tenant any, in connection with the applicable Option Termsubject space and with respect to the comparison space; club memberships granted, if any; construction, refurbishment and repainting allowances granted, if any, in connection with the subject space and with respect to any comparison space; any other concessions or inducements in connection with the subject space and with respect to any comparison space; term or length of lease of subject space and of any comparison space; overall creditworthiness of Tenant and tenants in comparable space; the time the particular rental rate under consideration was agreed upon and became or is to become effective; and payment of a leasing commission, fees, bonuses or other compensation whether to Tenant’s representatives or to Landlord, or to any person or entity affiliated with Tenant or Landlord, or otherwise. If Tenant requests improvements or allowance and Landlord agrees to fund such improvements or allowance, the Current Market Rental Rate will be determined factoring Landlord’s costs of providing such improvements or allowance. If either Landlord or Tenant fails to designate by written notice to the other its appraiser in the time stated, the one properly appointed shall be empowered to set the then Current Market Rental Value of the Fourth Floor Premises. If the two are appointed and are unable to agree within thirty (30) days after their appointment, they shall appoint a third appraiser, who shall be empowered to choose from the two (2) current market rental values proposed by ▇▇▇▇▇▇▇▇’s appraiser and ▇▇▇▇▇▇’s appraiser and the one chosen shall be the then Current Market Rental Rate of the Fourth Floor Premises. All appraisers must be MAI qualified with at least ten (10) years’ experience with commercial office space in the Southpark submarket of Charlotte, North Carolina. Each party shall bear the costs of its own appraiser; all other costs of the arbitration shall be shared equally between Landlord and Tenant.

Appears in 1 contract

Sources: Lease Agreement (Rocket Companies, Inc.)

Renewal Options. a. Article 25 of the Restated Lease is hereby deleted in its entirety, and the following is substituted therefor: 25.01 Tenant shall have the right and option to renew (the Lease (“"First Renewal Option") to extend the term of this Lease for two an additional period (2the "First Renewal Term") successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, commencing on the day immediately succeeding the Expiration Date and termination on the fifth anniversary of the Expiration Date. The First Renewal Option is contingent must be exercised by written notice (the "First Renewal Notice") sent by Tenant to Landlord by certified or registered mail, return receipt requested, not later than twelve months prior to the Expiration Date. Any termination, cancellation or surrender of Tenant's interest in this Lease during the original term hereof shall terminate Tenant's right to exercise the First Renewal Option, Tenant's right to exercise the First Renewal Option shall not apply upon the following: (i) there is not occurrence and/or during the continuance of an Event of Default beyond all applicable cure period(s) at on the time part of Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration hereunder. "Upon delivery of the current Term; (ii) no event has occurred First Renewal Notice by Tenant in accordance with the terms hereof, this Lease shall thereupon be deemed renewed for the First Renewal Term with the same force and effect as if the First Renewal Term had originally been included in the term of this Lease, and this Lease, as extended, shall be upon the same terms, covenants and conditions as are contained herein, except that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration amount of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then Fixed Rent payable during the Option First Renewal Term shall be $4,501,792.00 per annum. "Upon Tenant's exercise of this option to extend the term of this Lease for the First Renewal Term, Landlord and Tenant’s respective rights, duties upon demand by either party, shall execute and obligations shall be governed by deliver an instrument in recordable form, setting forth the terms and conditions new expiration date of the term of this Lease. 25.02 If the term of this Lease shall have been duly extended for the First Renewal Term, except Tenant shall have the option (the "Second Renewal Option") to extend the term of this Lease for an additional period (the "Second Renewal Term," and together with the First Renewal Term, being hereinafter sometimes collectively referred to as provided otherwise the "Renewal Terms") of five years commencing on the day immediately succeeding the Expiration Date of the First Renewal Term, and terminating on the fifth anniversary of the Expiration Date of the First Renewal Term. The Second Renewal Option must be exercised by written notice (the "Second Renewal Notice") delivered by Tenant to Landlord by certified or registered mail, return receipt requested, not later than twelve months prior to the Expiration Date of the First Renewal Term. Any termination, cancellation or surrender of Tenant's interest in this Section. Time is of Lease during the essence in exercising original term (or First Renewal Term) hereof shall terminate Tenant's right to exercise the Second Renewal Option. c. The Base Rental for . Tenant's right to exercise the Second Renewal Option shall not apply upon the occurrence and/or during the continuance of an Option Term shall be Event of Default on the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative part of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termhereunder.

Appears in 1 contract

Sources: Net Operating Lease (Sports Club Co Inc)

Renewal Options. a. Tenant shall have and is hereby granted, the right and option to renew and extend the term of this Lease for three (“Renewal Option”3) for two (2) successive renewal consecutive periods of five (5) years each; provided Tenant is not in default hereunder at the time each (each, an “Option Term”); provided, however, such option is exercised or at the Renewal Option is contingent upon commencement of each such extension term in accordance with the following: : (a) Each extension term shall begin on the expiration of the Lease Term or the current extension term of this Lease, as appropriate. All terms, covenants, and provisions of this Lease (except for the monthly Base Rent) shall apply to each such extension term. If Tenant shall elect to exercise any such option, Tenant shall do so by written notice (the “Renewal Notice”) to Landlord not earlier than nine (9) months and later than six (6) months prior to the expiration of the initial term of this Lease, or then current extension term of this Lease, as appropriate. The monthly Base Rent for each such extension term shall be the greater of (i) there is not an Event of Default beyond all applicable cure period(s) the Base Rent in effect at the time end of the initial term of this Lease for the first extension term or the Base Rent in effect at the end of the immediately preceding extension term for the second and third extension terms, or (ii) ninety percent (90%) of the Fair Rental Value of the Leased Premises, as defined herein, but not more than one hundred fifteen percent (115%) of the Base Rent in effect at the end of the initial term of this Lease for the first extension term or the Base Rent in effect at the end of the immediately preceding extension term for the second and third extension terms. Landlord agrees that it shall repaint and re-carpet the Leased Premises as promptly as commercially reasonable after the commencement of the first renewal and extension term with substantially the same colors and quality of paint and carpet used for the initial Tenant Improvements (but using Tenant’s color and carpet pattern selections), unless Landlord and Tenant mutually agree otherwise in writing. Except for Landlord’s obligation to repaint and re-carpet the Leased Premises as provided in the immediately preceding sentence with respect to the first extension term, Tenant will accept the Leased Premises in their then existing, “as is” condition as the commencement of each extension term. (b) Within fifteen (15) days after the date of the Renewal Notice, Landlord shall give Tenant written notice of Landlord’s determination of the Fair Rental Value of the Leased Premises setting forth in reasonable detail the assumptions and data upon which such determination is made, including the factors described in paragraph (d) below. If Tenant disagrees with Landlord’s determination of the Fair Rental Value of the Leased Premises, Tenant shall give Landlord notice of such disagreement, and of Tenant’s determination of the Fair Rental Value of the Leased Premises, within fifteen (15) days after the date of the notice of Landlord’s determination of the Fair Rental Value. In the event Tenant fails to so give Landlord notice of Tenant’s disagreement with Landlord’s determination of the Fair Rental Value of the Leased Premises, Tenant shall be conclusively deemed to have accepted Landlord’s determination of the Fair Rental Value, and the Base Rent for such extension term shall be established as provided in paragraph (a) above. (c) If Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration disagreement with Landlord’s determination of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration Fair Rental Value of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty Leased Premises as provided in paragraph (180b) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Termabove, Landlord and Tenant’s respective rights, duties and obligations Tenant shall be governed by in good faith attempt to agree on the terms and conditions Fair Rental Value of the LeaseLeased Premises. In the event Landlord and Tenant fail to agree on the Fair Rental Value of the Leased Premises within sixty (60) days after the date of the Renewal Notice, except either Landlord or Tenant may require that the Fair Rental Value of the Leased Premises be determined by an appraisal in accordance with paragraphs (e) and (f) below, by giving written notice to the other within sixty-five (65) days after the date of the Renewal Notice. If Landlord and Tenant fail to agree on the Fair Rental Value of the Leased Premises so that the Base Rent for the applicable extension term can be determined in accordance with paragraph (a) above, and neither party notifies the other that it elects to have the Fair Rental Value of the Leased Premises determined by an appraisal as provided otherwise in this Section. Time is paragraph (c), then this Lease shall terminate as of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length last day of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowanceinitial Lease Term, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculationfirst extension term, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termas applicable.

Appears in 1 contract

Sources: Lease Agreement (Pharmaceutical Product Development Inc)

Renewal Options. a. Section 42 of the Original Lease is hereby deleted in its entirety. Effective as of the Execution Date, Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of options (each, an “Option”) to further extend the Term by five (5) years each as to the entire Premises (each, an “Option Term”); provided, however, and no less than the Renewal Option is contingent entire Premises) upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration following terms and conditions. Any extension of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal an Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by on all the same terms and conditions of as the Lease, except as provided otherwise follows: 9.1 Basic Annual Rent at the commencement of each Option term shall equal the then-current fair market value for comparable office and laboratory space in this Section. Time is the Seattle market of comparable age, quality, level of finish and proximity to amenities and public transit including market rate annual adjustments (“FMV”), but in no event be less than the Basic Annual Rent in effect immediately prior to the Option term for the first year of the essence in exercising Option term. Tenant may, no more than twelve (12) months prior to the Renewal Option. c. The Base Rental for an Option date the Term shall be is then scheduled to expire, request Landlord’s estimate of the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate FMV for the time period next Option term. Landlord shall, within fifteen (15) days after receipt of such determination is being made for office space in same class office buildings in request, give Tenant a written proposal of such FMV. If Tenant gives written notice to exercise an Option, such notice shall specify whether Tenant accepts Landlord’s proposed estimate of FMV. If Tenant does not accept the area of MurfreesboroFMV, Tennessee (then the “Area”) of comparable condition for space of equivalent qualityparties shall endeavor to agree upon the FMV, size, utility, and location. Such determination shall take taking into account all relevant factors, includingincluding (v) the size of the Premises, without limitation, the following matters: the credit standing of Tenant; (w) the length of the Option term; , (x) rent in comparable buildings in the fact relevant market, including concessions offered to new tenants, such as free rent, tenant improvement allowances, leasing commissions, and moving allowances, (y) Tenant’s creditworthiness and (z) the quality and location of the Building and the Project. In the event that the parties are unable to agree upon the FMV within thirty (30) days after Tenant notifies Landlord will experience no vacancy period and that Tenant will not suffer is exercising an Option, then either party may request that the costs same be determined as follows: a senior officer of a nationally recognized leasing brokerage firm with local knowledge of the Seattle laboratory/research and business interruption associated with moving its offices development leasing market (the “Baseball Arbitrator”) shall be selected and negotiating a new lease; construction allowances paid for jointly by Landlord and other tenant concessions that would Tenant. If Landlord and Tenant are unable to agree upon the Baseball Arbitrator, then the same shall be available to tenants comparable to Tenant designated by the local chapter of the Judicial Arbitration and Mediation Services or any successor organization thereto (the “JAMS”). The Baseball Arbitrator selected by the parties or designated by JAMS shall (i) have at least ten (10) years’ experience in the Area (such as moving expense allowance, free rent periods, leasing of laboratory/research and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed development space in the Seattle market and (ii) not have been employed or retained by either Landlord or Tenant or any affiliate of either for a period of at least ten (10) years prior to appointment pursuant hereto. Each of Landlord and Tenant shall submit to the Baseball Arbitrator and to the other party its determination of the FMV. The Baseball Arbitrator shall grant to Landlord and Tenant a hearing and the right to submit evidence. The Baseball Arbitrator shall determine which of the two (2) FMV determinations more closely represents the actual FMV. The Baseball Arbitrator may not select any other FMV for the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered other than one submitted by Landlord or Tenant. The FMV selected by the Baseball Arbitrator shall be binding upon Landlord and Tenant and shall serve as the basis for determination of Basic Annual Rent payable for the applicable Option term. If, as of the commencement date of an Option term, the amount of Basic Annual Rent payable during the Option term shall not have been determined, then, pending such determination, Tenant shall pay Basic Annual Rent equal to Tenant (or the lack thereof Basic Annual Rent payable with respect to the last year of the then-current Term. After the final determination of Basic Annual Rent payable for the Option Term in question). For purposes term, the parties shall promptly execute a written amendment to the Lease specifying the amount of such calculation, it will only Basic Annual Rent to be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with paid during the applicable Option term. Any failure of the parties to execute such amendment shall not affect the validity of the FMV determined pursuant to this Section. 9.2 The Option is not assignable separate and apart from the Lease except that it shall be exercisable by a Tenant’s Affiliate as a result of a Transfer of this Lease to a Tenant’s Affiliate in accordance herewith. 9.3 An Option is conditional upon Tenant giving Landlord written notice of its election to exercise such Option not more than sixteen (16) months and not less than ten (10) months prior to the end of the expiration of the then-current Term. Time shall be of the essence as to Tenant’s exercise of an Option. Tenant assumes full responsibility for maintaining a record of the deadlines to exercise an Option. Tenant acknowledges that it would be inequitable to require Landlord to accept any exercise of an Option after the date provided for in this Section. 9.4 Notwithstanding anything contained in this Article to the contrary, Tenant shall not have the right to exercise an Option: (a) During the time commencing from the date Landlord delivers to Tenant a written notice that Tenant is actually in default under any provisions of the Lease and continuing until Tenant has cured the specified default to Landlord’s reasonable satisfaction; or (b) Intentionally deleted; or (c) In the event that Tenant has defaulted (beyond applicable notice and cure periods) in the performance of either a material monetary obligation or material non-monetary obligations under the Lease two (2) or more times during the Extended Term or Option Term (as applicable). 9.5 The period of time within which Tenant may exercise an Option shall not be extended or enlarged by reason of Tenant’s inability to exercise such Option because of the provisions of Section 9.4 above. 9.6 All of Tenant’s rights under the provisions of an Option shall terminate and be of no further force or effect even after Tenant’s due and timely exercise of such Option if, after such exercise, but prior to the commencement date of the new term, (a) Tenant fails to pay to Landlord a material monetary obligation of Tenant for a period of twenty (20) days after written notice from Landlord to Tenant, (b) Tenant fails to commence to cure a material non-monetary default (other than a material monetary default) within thirty (30) days after the date Landlord gives written notice to Tenant of such default or (c) Tenant has defaulted (beyond applicable notice and cure periods) with respect to either a material monetary obligation or its material non-monetary obligations under the Lease two (2) or more times during the Extended Term or Option Term (as applicable).

Appears in 1 contract

Sources: Lease (NanoString Technologies Inc)

Renewal Options. a. Tenant shall have the right and option to renew extend the term of the Lease (“Renewal Option”) for two (2) successive renewal additional periods of five (5) years each (eachyears, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at commencing on the expiration of the current Term; (ii) no event has occurred that upon notice or the passage immediately preceding term of time would constitute an Event of Default, unless Landlord this Lease. Such renewal option shall be deemed effectively exercised only if Tenant has given Landlord written notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice thereof at least one hundred eighty twenty (180120) days prior to the expiration of the current Termoriginal term, and only if Tenant is not in default as determined under Section 12 at the time of such exercise and at the time of the commencement of the renewal term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord All terms and Tenant’s respective rights, duties and obligations provisions of this Lease shall be governed by applicable during such renewal term except that the terms and conditions renewal rental rate shall be at the then prevailing market rental rate. For purposes of the this Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” then prevailing market rental rate shall mean the market annual amount per rentable square foot that willing, comparable, non-equity, non-renewal, non-expansion new tenant would pay, and a willing, comparable Landlord of a similar property would accept, in an arm's length transaction, as of the commencement of the renewal term, taking into account the annual rental rate for rates per rentable square foot, the time standard of measurement by which the rentable square footage is measured, the type of escalation clause, the extent of Tenant's liability under the lease, abatement provisions reflecting free rent and/or no rent during the period such determination is being made for office of construction or subsequent to the commencement date as to the space in same class office buildings in the area of Murfreesboroquestion, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisionsbrokerage commissions, if any, but specifically excluding which would be payable by Landlord in similar transactions, leasehold improvements which would be payable by Landlord in similar transactions, length of the value lease term, and the size and location of improvements installed the premises being leased, it being the intent that Tenant will obtain the same rent and other economic benefits that Landlord would otherwise give in comparable transactions and Landlord will make and receive the same economic payments and concessions that Landlord would otherwise make and receive in comparable transactions. For the first thirty (30) days following Landlord's receipt of Tenant's notice of exercise of such option to renew, Landlord and Tenant shall have the opportunity and option to mutually agree on the fair market rental for the Demised Premises. If Landlord and Tenant are unable to agree upon such fair market rental within the time period set forth above, then each party shall appoint an appraiser within ten (10) days after the lapse of such thirty (30) day time period and notify the other party of such appointment by identifying the appraiser. Each party hereto agrees to select as it respective appraiser a licensed real estate broker, who is an individual having at least five (5) years experienced with respect to office property ownership, management and marketing in the Cary-Raleigh, North Carolina area, which person should not be regularly employed or have been retained during the last two (2) years as a consultant by the party selecting such person. Neither party may consult directly or indirectly with any appraiser regarding the fair market rental prior to the appointment or after appointment, outside the presence of the other party. Not later than ten (10) days after both appraisers are appointed, each party shall separately, but simultaneously, submit in a sealed envelope to each appraiser their separate suggested fair market rental and shall provide a copy of such submission to the other party. The two selected appraisers, after reviewing such submissions, shall each independently determine the fair market rental for the Demised Premises at and shall determine whether the Landlord's or the Tenant’s cost)'s estimate of fair market rental is closer to the actual market rental for the Demised Premises. If both appraisers agree that one of the said declared estimates is the actual fair market rental for the Demised Premises, they shall declare that estimate to be the fair market rental for the Demised Premises, and whether adjustments their decision shall be final and binding upon the parties. If the two selected appraisers are unable to agree upon the fair market rental within thirty (30) days after receipt of Landlord's and Tenant's submitted estimates, then being made the appraisers shall inform the parties and the appraisers shall select a third appraiser, not less than ten (10) days after the expiration of the thirty (30) day period. If no appraiser is selected within such ten (10) day period, either party may immediately petition a court of competent jurisdiction to appoint such third appraiser. The third appraiser shall have the same qualifications set forth above and the restrictions set forth above shall likewise apply. The third appraiser shall independently determine the fair market rental of the Demised Premises. The ultimate fair market rental of the Demised Premises shall be the arithmetic average of the two closest fair market rental values, determined by two of the three appraisers, but in determining no event in excess of the bounds established by Landlord's or Tenant's estimates furnished as set forth above. The fair market rental rates established under this paragraph shall be conclusive, unappealable and binding upon the parties hereto. Each party shall be responsible for renewals the costs, charges and/or fees of its appraiser, and the parties shall equally in the Area because costs, charges and/or fees of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthird appraiser.

Appears in 1 contract

Sources: Lease Agreement (Tangram Enterprise Solutions Inc)

Renewal Options. a. Tenant At the end of the Base Lease Term and any Renewal Term (other than any Renewal Term ending four years after the end of the Base Lease Term), so long as no Lease Event of Default or Lease Default (of the type described in Section 14.1 or 14.5) has occurred and is continuing, Lessee shall have the right and option to renew this Lease for a Renewal Term. In order to exercise the option to renew, Lessee shall notify Lessor thereof in writing not more than nine months nor less than six months prior to the commencement of the applicable Renewal Term (which notice shall be irrevocable and shall specify the length of such Renewal Term). Renewal Rent shall be payable in arrears for each Lease Period occurring during any Renewal Term. The Renewal Rent payable for any Renewal Term hereunder shall be the fair market rental value of the Aircraft (as defined below) calculated as of the commencement of such Renewal Option”) Term. Such fair market rental value shall be determined not later than three months prior to the commencement of such Renewal Term by mutual consent of Owner Participant and Lessee or, if they shall be unable so to agree, by three recognized independent aircraft appraisers, one chosen and paid for by Owner Participant, one chosen and paid for by Lessee and the third appraiser chosen by the mutual consent of the first two (2) successive renewal periods appraisers and paid for equally by Owner Participant and Lessee, the appraisals of five (5) years each (each, an “Option Term”)which three appraisers shall be averaged and such average shall be deemed to be the fair market rental value of the Aircraft for all purposes hereof; provided, however, that if the Renewal Option appraisal of one appraiser is contingent upon more disparate from the following: (i) there is not an Event average of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration three appraisals than each of the current Term; (ii) no event has occurred that upon notice or other two SALE AND LEASE AGREEMENT [N396SW] -56- 63 appraisals, then the passage appraisal of time would constitute an Event of Defaultsuch appraiser shall be excluded, unless Landlord has given notice of default the remaining appraisals shall be averaged and Tenant is diligently attempting such average shall be deemed to cure such event; and (iii) Tenant is occupying be the Premises. Following expiration fair market rental value of the final Option Term allowable hereunder, Tenant Aircraft for all purposes hereof. If either Owner Participant or Lessee shall have no further right fail to renew appoint an appraiser by the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days date which is two months prior to the expiration commencement of such Renewal Term or if such two appraisers cannot agree on the current amount of such appraisal and fail to appoint a third appraiser by the date which is one month before the commencement of such Renewal Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee either Owner Participant or Lessee may apply to any court having jurisdiction (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length courts referred to in Section 13(b) of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available Participation Agreement) to tenants comparable to Tenant in the Area (make such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question)appointment. For purposes of such calculationthis Section 18.1, it will only fair market rental value shall be assumed the cash rental obtainable in an arm's-length lease between an informed and willing lessee (under no compulsion to lease) and an informed and willing lessor (under no compulsion to lease) and shall be determined on the assumptions that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord Aircraft is in fact paying a brokerage commission the United States of America, available for use by Lessee, unencumbered by any renewal or purchase option contained in this Lease, in the return condition required by Section 5 of this Lease and otherwise in compliance with and subject to a representative the terms and requirements of Tenant this Lease. Stipulated Loss Value amounts that are payable during any such Renewal Term shall be calculated as of the date of commencement of such Renewal Term and shall be determined in connection the same manner referred to above based on the fair market sales value of the Aircraft on such date determined in accordance with the applicable Option TermSection 18.2(a).

Appears in 1 contract

Sources: Sale and Lease Agreement (Southwest Airlines Co)

Renewal Options. a. Landlord hereby grants Tenant shall have the right and option to renew the this Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there so long as Tenant is not an Event of Default in default hereunder beyond all any applicable cure period(s) at the time period and provided Tenant gives Landlord written notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right its election to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one not later than two hundred eighty ten (180210) days prior to the expiration of the then current TermLease term. If such notice is given in a timely manner and if Tenant fails to give notice to Landlord prior to the 180-day is not in default hereunder beyond any applicable grace or cure period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations term of this Lease shall be governed by extended for the renewal term so elected under the same terms and conditions of herein set forth except that the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental base rental for an Option Term such renewal term shall be at "market rate" (which is hereby defined as the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market same rental rate for the time period such determination is being made for office space in same class office which comparable premises within comparable buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Metropolitan Columbia Market Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made leased), provided that in determining no event shall the rental rates for renewals in during the Area because renewal term (i) be less than the annual rental during the last year of concessions being offered by Landlord to Tenant the preceding Lease term (the "minimum rental") or (ii) more than a five percent (5%) annual increase during each year of the lack thereof for renewal term over the Option Term in questionannual base rental during the preceding Lease year (the "maximum rental"). For If the parties are unable to agree upon market rate within thirty (30) days following Tenant's notice electing to exercise its option to renew, market rate shall be determined by arbitration by a three (3) broker panel consisting of one (1) broker appointed by Landlord, one (1) broker appointed by Tenant and the remaining broker appointed by the two (2) brokers so appointed. If the three (3) brokers are unable to agree upon market rate, each broker shall make his or 44 45 her own determination of market rate and the average of the three (3) determinations shall govern for purposes of such calculationdetermining market rate hereunder. Notwithstanding the foregoing, it will only be assumed that Landlord is paying unless otherwise agreed to by the parties in a representative of Tenant a brokerage commission in connection with written amendment to this Lease, the Option Term base rentals during the renewal term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with shall never be less than the applicable Option Termminimum rentals nor more than the maximum rentals hereinabove specified.

Appears in 1 contract

Sources: Lease Agreement (Sequoia Software Corp)

Renewal Options. a. Provided Tenant is not in default in payment of Rent at the time of exercise or at the time of commencement of any of the renewal options referred to herein, Tenant shall have the right and option to renew the Lease three (“Renewal Option”3) for two (2) successive renewal periods of five (5) years year options to extend the Term of the Lease after the expiration of the original Term. To exercise each (eachof the options, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives must give Landlord written notice of Tenant’s its intention to exercise the Renewal Option or at the expiration of the current Term; option not less than twelve (ii12) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the current original Term of the Lease or the applicable renewal Term. If Tenant fails to give twelve (12) months notice of its intention to exercise the option, and if Landlord has not committed the space to another prospect as evidenced by a signed Letter of Intent for the Demised Premises or a portion thereof, Tenant shall be entitled to elect to exercise the option on or before that day which is nine (9) months prior to the 180-day period, expiration of the original Term of the Lease or the then Tenant shall forfeit the Renewal Optionapplicable renewal Term. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by elects to exercise any of its renewal options pursuant to the terms of this Paragraph, the per square foot rental for each renewal Term for the Demised Premises and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option any Additional Space during each renewal Term shall be the Fair Market Rental Rate. “per square foot rental rate (including any Fair Market Rental Rate” improvement allowance) at the time of the applicable renewal determined in accordance with the provisions of Exhibit III", provided, however, that in no event shall mean the market rental rate Rent for the time period first renewal Term be higher than $25.00 per square foot, plus any Excess Operating Expenses to be paid by Tenant as Additional Rent pursuant to Paragraph 5. If Tenant fails to give notice as required herein of its exercise of any renewal option, then such determination is being made for office space in same class office buildings in the area option and all subsequent options shall terminate and be of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, no further force and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termeffect.

Appears in 1 contract

Sources: Lease Agreement (Wackenhut Corp)

Renewal Options. a. Landlord hereby grants Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right options to renew this Lease, each option to be for a period of sixty (60) months, for a total of one hundred twenty (120) months in the Lease pursuant to this Section 5. b. event both renewal options are exercised. Each said renewal option shall be exercised by Tenant shall exercise the Renewal Option by giving notifying Landlord notice thereof in writing not more than two hundred ten (210) and at least one hundred eighty (180) days prior to the expiration of the then current Termlease or renewal term, as the case may be. If Tenant fails to give notice to Landlord In the event a renewal agreement has not been executed at least one hundred twenty (120) days prior to the 180-day periodexpiration date of the current lease or renewal term, then Tenant the option shall forfeit the Renewal Optionautomatically become null and void. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations Each such renewal shall be governed by subject to all of the terms and conditions of this Lease except that (i) the LeaseBasic Rental payable during each renewal term shall be as set forth below and (ii) no further renewal option shall exist during the second renewal term. It shall be a condition to Tenant’s exercising any renewal option herein granted that (y) Tenant not be then in default under this Lease and (z) Tenant shall have previously exercised the immediately preceding renewal option, except as provided otherwise in this Sectionif any, so that the second renewal option may not be exercised if Tenant has failed to exercise the first renewal option. Time is of the essence in exercising the Renewal Option. c. The Base Basic Rental for an Option Term each renewal term shall be based on the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market then prevailing rental rate rates for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space properties of equivalent quality, size, utilityutility and location in the Dallas/Forth Worth market, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; with the length of the lease term and the credit worthiness of the Tenant taken into account. Upon notification from Tenant of its intent to exercise each renewal option, Landlord shall, within fifteen (15) days thereafter, notify Tenant in writing of the Basic Rental for the applicable renewal term; Tenant shall, within fifteen (15) days following receipt of same, notify Landlord in writing of the fact acceptance or rejection of the proposed Basic Rental. In the event of rejection by Tenant, the Basic Rental for the applicable renewal term shall be determined as follows: (a) Within fifteen (15) days following notification of rejection, Landlord and Tenant shall each select an arbitrator who shall be a Licensed Texas real estate broker having a minimum of five (5) years experience in leasing industrial space and being a member of the North Chapter of the Texas Society of Office and Industrial Realtors (or its successor organization); provided, however, neither party shall be entitled to select an arbitrator to whom that party has paid a real estate commission or fee within the prior two (2) year period of time. Notice shall be given to the other party of the name of the arbitrator selected. If either Landlord or Tenant fails to appoint such an arbitrator within the allocated time, the arbitrator appointed by the other party shall make the determination of the Basic Rental and this determination shall be final and binding on both parties. (b) If both Landlord and Tenant appoint an arbitrator in accordance with the provisions above and the two arbitrators cannot agree upon a Basic Rental for the renewal term within thirty (30) days following their appointment, the two arbitrators shall forthwith select a third disinterested and qualified arbitrator having like qualifications and each of the original arbitrators will experience no vacancy immediately submit his or her judgment as to the appropriate Basic Rental in writing to the third arbitrator. Within ten (10) days after such submittal, the third arbitrator shall make the determination of the Basic Rental for such renewal period and that the determination of the third arbitrator shall Initial: be final and binding on both parties. In the event the two arbitrators appointed by the Tenant will and Landlord cannot suffer agree upon a third arbitrator, then the costs third arbitrator shall be appointed by the then President of the North Chapter of the Texas Society of Office and business interruption associated with moving Industrial Realtors (or its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available successor organization). The Basic Rental agreed to tenants comparable to Tenant in by the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisionstwo appointed arbitrators or, if anyapplicable, but specifically excluding the value Basic Rental determined by the third arbitrator shall be final and binding upon the parties hereto. Landlord and Tenant shall each bear the expense of improvements installed in their arbitrator and the Premises at Tenant’s cost)expense of a third arbitrator, and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered if needed, shall be shared equally by both parties. Executed by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes this 25th day of such calculationApril, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term1994.

Appears in 1 contract

Sources: Industrial Lease Agreement (Collegiate Pacific Inc)

Renewal Options. a. (a) Tenant shall have the right and option is hereby granted three (3) successive option(s) to renew the this Lease (“for a Renewal Option”) for two (2) successive renewal periods Term of five (5) years each (each, an subject to the terms of this Paragraph 24. In the event that Tenant desires to renew this Lease, it shall give notice in writing to Landlord of its intention to renew the Lease at least twelve (12) months prior to the Expiration Date and at least twelve (12) months prior to the expiration of the (first) Renewal Term, as the case may be. During each of the Renewal Terms, Tenant shall lease the Demised Premises in its Option TermAS IS” condition and all of the terms and conditions of this Lease shall otherwise remain in effect during each of the Renewal Terms, except that the annual Fixed Rent payable during each of the Renewal Terms shall be the annual fair market rental value of the Demised Premises based on a comparison of the rents and accrued escalations then being paid by tenants renewing leases for comparable space in the competitive market area of the Demised Premises, excluding from consideration rent concessions, such as free rent and work letter allowances, made to tenants leasing space initially, but taking into consideration rent concessions, such as refitting allowance, made to tenants renewing leases (“Fair Market Renewal Rent”); provided, however, that in no event shall the annual Fixed Rent be less than the annual Fixed Rent payable during the year preceding the first year of each such Renewal Option is contingent upon the following: Term. (ib) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the The Fair Market Renewal Option or at the expiration Rent of the current Term; Demised Premises for purposes of Subparagraph (iia) no event has occurred that upon notice or of this Paragraph 24 shall take into account the passage provisions of time would constitute an Event of Default, unless Landlord has given notice of default this Lease and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease be determined pursuant to the provisions of this Section 5. b. Subparagraph 24(b). The Fair Market Renewal Rent shall be set forth by Landlord in a notice to Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty sixty (18060) days prior to the expiration commencement of each of the current Termapplicable Renewal Terms. The Fair Market Renewal Rent set forth in such notice shall be binding upon both parties, unless Tenant shall notify Landlord of its objection within twenty (20) days after receipt of such notice. In the event of such an objection, which is not resolved within twenty (20) days thereafter, Tenant, at its own expense, shall designate an MAI or SREA appraiser in the ▇▇▇▇▇▇ County area. Tenant’s designated appraiser shall then determine and promptly report to both parties in writing the Fair Market Renewal Rent of the Demised Premises, which report shall be binding upon both parties, unless Landlord shall object to same within twenty (20) days after receipt of said report. If Tenant fails Landlord shall so object, both parties shall jointly appoint a separate MAI or SREA appraiser who shall determine the Fair Market Renewal Rent by selecting either Landlord’s Fair Market Renewal Rent determination or Tenant’s designated appraiser’s Fair Market Renewal Rent determination according to give notice to Landlord prior whichever of the two valuations is closer to the 180-day period, then Tenant actual Fair Market Renewal Rent in the opinion of such separate appraiser. The costs of such separate appraiser shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, be shared equally by Landlord and Tenant’s respective rights, duties and obligations . (c) It shall be governed by the terms and conditions a condition of the Lease, except as provided otherwise exercise of the option set forth in this Section. Time is Paragraph 24, that at the time of the essence exercise of said option, Tenant shall not be in exercising the Renewal Optiondefault under this Lease beyond applicable grace periods after notice. c. The Base Rental for an Option Term (d) Tenant acknowledges and agrees that the option(s) set forth in this Paragraph 24 shall be the Fair Market Rental Rate. “Fair Market Rental Rate” personal to Tenant and shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area not be exercisable by any party (including any assignees other than a corporate successor or affiliate with a net worth equal to or greater than that of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length Tenant as of the term; date hereof) other than Tenant named herein. Furthermore, notwithstanding anything herein to the fact that Landlord will experience no vacancy period and that contrary, Tenant will shall not suffer have the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available right to tenants comparable to Tenant in exercise the renewal option(s) set forth herein if the amount of Rentable Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding of the value of improvements installed in the Demised Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered occupied by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed corporate successor or affiliate with a net worth equal to or greater than that Landlord is paying a representative of Tenant a brokerage commission in connection with as of the Option Term in question if Landlord date hereof) at the time of the renewal is in fact paying a brokerage commission to a representative twenty-five (25%) percent or less than the amount of Rentable Area leased by Tenant in connection with as of the applicable Option TermCommencement Date.

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Investment Trust Inc)

Renewal Options. a. 28.1 Tenant shall have the right and following rights to extend the Term of the Lease: (i) the option to renew (the Lease (“"First Renewal Option") to extend the Term for two one (21) successive renewal periods additional period of five (5) years each (each, an “Option the "First Renewal Term”); provided, however, ") commencing on the Renewal Option is contingent upon day next following the following: Expiration Date and ending on the day preceding the fifth (i5th) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration anniversary of the current Termdate on which the First Renewal Term commences; and (ii) no event has occurred that upon notice or the passage option (the "Second Renewal Option") to extend the Term for one (1) additional period of time would constitute an Event five (5) years (the "Second Renewal Term") commencing on the day next following the date on which the First Renewal Term expires and ending on the day preceding the fifth (5th) anniversary of Defaultthe date on which the Second Renewal Term commences (the First Renewal Option and the Second Renewal Option are herein sometimes individually referred to as a "Renewal Option" and are together referred to as the "Renewal Options"; and the First Renewal Term and the Second Renewal Term are herein sometimes individually referred to as a "Renewal Term" and are together referred to as the "Renewal Terms"); if, unless in each case: (a) Landlord has given receives notice of default exercise (a "Renewal Notice") not more than eighteen (18) months and Tenant is diligently attempting not less than twelve (12) months prior to cure such event; and (iii) Tenant is occupying the Premises. Following expiration Expiration Date, in the case of the final Option Term allowable hereunderFirst Renewal Option, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty and not more than eighteen (18018) days months and not less than twelve (12) months prior to the expiration of the current First Renewal Term, in the case of the Second Renewal Option; (b) the Lease shall be in full force and effect and there shall be no Default in existence at the time Tenant delivers the pertinent Renewal Notice, at the time Tenant delivers the pertinent Renewal Binding Notice (as hereinafter defined), or on the date on which the pertinent Renewal Term will commence; (c) no part of the Premises is sublet on the date that Tenant delivers the pertinent Renewal Notice or on the date Tenant delivers the pertinent Renewal Binding Notice (other than to an Affiliate or Successor); (d) the Lease has not been assigned prior to the date that Tenant delivers the pertinent Renewal Notice or prior to the date Tenant delivers the pertinent Renewal Binding Notice (other than to an Affiliate or Successor); and (e) Tenant executes and returns the pertinent Renewal Amendment (as hereinafter defined) within thirty (30) days after its submission to Tenant; and if, in the case of the Second Renewal Option, Tenant has validly exercised the First Renewal Option. 28.2 Any extension of the Term of the Lease pursuant to a Renewal Option shall be an extension of the Term with respect to all space in the Building then subject to this Lease and all references in this Article XXVIII to the "Premises" is a reference to all of such space. (i) The Basic Rent rental rate per square foot of Rentable Area of the Premises during each Renewal Term shall equal to 95% of the Renewal Prevailing Market Rate (as hereinafter defined) per square foot of Rentable Area of the Premises for such Renewal Term. (ii) Within thirty (30) days after receipt of a Tenant's Renewal Notice, Landlord shall advise Tenant of the applicable Basic Rent rental rate for the Premises for the pertinent Renewal Term. Tenant, within fifteen (15) days after the date on which Landlord advises Tenant of the applicable Basic Rent rental rate for such Renewal Term, shall either (i) give Landlord final binding written notice ("Renewal Binding Notice") of Tenant's exercise of the pertinent Renewal Option or (ii) if Tenant reasonably disagrees with Landlord's determination of the Renewal Prevailing Market Rate, provide Landlord with written notice of rejection (the "Renewal Rejection Notice"). If Tenant fails to give notice to provide Landlord prior to the 180-with either a Renewal Binding Notice or Renewal Rejection Notice within such fifteen (15) day period, then Tenant shall forfeit the pertinent Renewal Option and the succeeding Renewal Option, if any, shall be null and void and of no further force and effect. If Tenant exercises the provides Landlord with a Renewal Option, then during the Option TermBinding Notice, Landlord and Tenant’s respective rights, duties and obligations Tenant shall be governed by enter into the pertinent Renewal Amendment upon the terms and conditions set forth herein. If Tenant provides Landlord with a Renewal Rejection Notice, Landlord and Tenant shall work together in good faith during the fifteen (15) day period following Tenant's delivery of the LeaseRenewal Rejection Notice to agree upon the Renewal Prevailing Market Rate for the Premises during the pertinent Renewal Term. Upon agreement, except as provided otherwise Tenant shall provide Landlord with a Renewal Binding Notice and Landlord and Tenant shall enter into a Renewal Amendment in accordance with the terms and conditions hereof. If Landlord and Tenant fail to agree upon the Renewal Prevailing Market Rate within fifteen (15) days after Tenant delivers a Renewal Rejection Notice, then either Landlord or Tenant may elect, by giving notice (the "Renewal Arbitration Notice") to the other within five (5) business days after the end of such fifteen (15) day period, to have the Renewal Prevailing Market Rate determined pursuant to Section 28.2(iii) of this Article XXVIII. If neither so elects, the Renewal Option shall be null and void and of no further force and effect. (iii) If either Landlord or Tenant elects to have the Renewal Prevailing Market Rate determined pursuant to this Section. Time is , then Landlord and Tenant shall attempt to agree, in good faith, upon a single broker not later than ten (10) days following the giving of the essence in exercising Renewal Arbitration Notice who shall determine the Renewal Option. c. The Base Rental Prevailing Market Rate for an Option Term the Premises. If Landlord and Tenant are unable to agree upon a single broker within such time period, then Landlord and Tenant shall each appoint one broker not later than ten (10) days following the giving of the Renewal Arbitration Notice. Not later than fifteen (15) days following the giving of the Renewal Arbitration Notice, the two appointed brokers shall appoint a third broker. If either Landlord or Tenant fails to appoint a broker within the prescribed time period, the single broker appointed shall determine the Renewal Prevailing Market Rate. If both parties fail to appoint brokers within the prescribed time periods, then the first broker thereafter selected by a party shall determine the Renewal Prevailing Market Rate. If a single broker is chosen, then such broker shall determine the Renewal Prevailing Market Rate applicable to the Premises. Otherwise, the Renewal Prevailing Market Rate shall be the Fair arithmetic average of two (2) of the three (3) appraisals which are the closest in amount, and the third appraisal shall be disregarded. Landlord and Tenant shall instruct the brokers to complete their determination of the Renewal Prevailing Market Rental RateRate not later than thirty (30) days following the giving of the Renewal Arbitration Notice. “Fair Market Rental Rate” Each party shall mean bear the market rental rate for costs of its own broker, and the time period such determination is being made for office space parties shall share equally the cost of the single or third broker if applicable. Each broker shall have at least ten (10) years' experience in same class the leasing of commercial office buildings in the area of Murfreesborosubmarket in which the Building is located and shall be a licensed real estate broker. (iv) If Tenant is entitled to and properly exercises a Renewal Option, Tennessee Landlord shall prepare an amendment (the “Area”"Renewal Amendment") to this Lease to reflect changes in the Basic Rent and other appropriate terms for the related Renewal Term (including specifically the increase of comparable condition Tenant's Proportionate Share). An otherwise valid exercise of a Renewal Option shall, at Landlord's option, be fully effective whether or not the related Renewal Amendment is executed. (v) For purposes hereof, "Renewal Prevailing Market Rate" shall mean the prevailing market rate per square foot of rentable area under renewal leases and amendments for terms commencing on or about the date on which the Renewal Term will commence for space in the Building and in comparable buildings which is comparable to the Premises. The Renewal Prevailing Market Rate shall include any prevailing increases to rent such as percentage or fixed increases or increases based on an index. The determination of equivalent quality, size, utility, and location. Such determination Renewal Prevailing Market Rate shall take into account all relevant factors, including, without limitation, any material economic differences between the following matters: the credit standing of Tenant; the length terms of the term; the fact Lease and any comparison lease, such as rent abatements, construction costs, moving allowances, tenant improvement allowances, agreements to assume other leases of space that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; potential tenant is vacating, free construction allowances build-out periods and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periodsconcessions, and lease assumptions and take over provisionsthe manner thereunder, if any, but specifically excluding in which Landlord is reimbursed for operating expenses and taxes. Prevailing market terms such as construction costs and other concessions, if any, shall, at the value option of improvements installed Landlord, be provided to Tenant in kind. If not provided in kind, such terms shall be reflected in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermRenewal Prevailing Market Rate.

Appears in 1 contract

Sources: Office Lease (Taylor Capital Group Inc)

Renewal Options. a. Landlord hereby grants to Tenant the option to extend the term of this Lease (the "Extension Options") for one additional two-year period. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “exercise such Extension Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord by giving written notice of Tenant’s intention exercise to exercise Landlord at least six months prior to the Renewal Option or Expiration Date of the then current term. All of the terms and conditions of this Lease shall govern each such extended term insofar as applicable, and all references in this Lease to the term hereof shall be deemed to include such extended term unless the context clearly indicates to the contrary, except that these Extension Options shall not apply at the expiration of the current Term; (ii) no event has occurred that upon notice or extension terms. a. The Monthly Fixed Rent for each Extension Option term shall be the passage of time would constitute an Event of Defaultfair market rate, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration as of the final commencement of the applicable Extension Option Term allowable hereunderterm as determined by the agreement of the parties or, Tenant shall have no further right if the parties are unable to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) agree on or before 90 days prior to the expiration of the then-current Termterm, then by an appraisal conducted pursuant to Subparagraph (b) below. Notwithstanding the above, the Monthly Fixed Rent for each extension term shall, in no event, be less than the Monthly Fixed Rent for the last month of the then-current lease term. The Monthly Fixed Rent shall take into account the duration of the extension term and may provide for reasonable periodic rental increases during such term. b. If it becomes necessary to determine the fair market rate for the Premises by appraisal, then real estate appraiser(s), all of whom shall be members of the American Institute of Real Estate Appraisers and each having at least two years' experience appraising commercial and industrial real property located within the vicinity of the Premises, shall be appointed and shall act in accordance with the following procedures: (1) If Landlord and Tenant are unable to agree on the base rent for the Extension Option term, then either party may demand an appraisal by giving written notice to the other party which demand to be effective, must state the name, address and qualifications of an appraiser selected by the party demanding an appraisal (the "Notifying Party"). Within ten days following the Notifying Party's appraisal demand, the other party (the "Non-Notifying Party") shall either approve the appraiser selected by the Notifying Party or select a second properly qualified appraiser by giving written notice of the name, address and qualifications of said appraiser to the Notifying Party. If Tenant the Non-Notifying Party fails to give notice to Landlord prior to select an appraiser within the 180-ten day period, then Tenant the appraiser selected by the Notifying Party shall forfeit the Renewal Optionbe deemed selected by both parties and no other appraiser shall be selected. If Tenant exercises two appraisers are selected they shall select a third appropriately qualified appraiser. If the Renewal Optiontwo appraisers fail to select a third qualified appraiser within ten days, then, upon application by either party, the third appraiser shall be appointed by the President or person serving in comparable position, if there is no President) of the local Real Estate Board (or any successor entity or body of comparable standing if such Board does not then exist) or the person to whom the President may delegate that function. (2) If only one appraiser is selected, then during that appraiser shall notify the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions parties in simple letter form of its determination of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the fair market rental rate for the time Premises within thirty days of his selection, which appraisal shall be conclusively determinative and binding on the parties as the fair market rent for the Premises. (3) If multiple appraisers are selected, then the appraisers shall meet not later than ten days following selection of the last appraiser. At such meeting, the appraisers shall attempt to determine the fair market rate for the Premises as of the commencement date of the Option period such by the agreement of at least two of the appraisers. (4) The appraisers' determination is being made for office space in of the fair market rate shall be based on a building of the same class office buildings in age, construction, size and location as the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, Premises and location. Such determination shall take into account all relevant factors, including, without limitationTenant's obligation to pay additional rent under the terms of this Lease. In determining the fair market rare, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will appraisers shall not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowanceconsider any improvements, free rent periodsalterations, and lease assumptions and take over provisionsadditions, if any, but specifically excluding the value of improvements fixtures or equipment installed in the Premises at Tenant’s cost)'s expense, but shall include improvements, alterations, additions, fixtures of equipment installed at Landlord's expense. If two or more of the appraisers agree on the fair market rate for the Premises at the initial meeting, then such agreement shall be determinative and binding on the parties hereto, and whether adjustments the agreeing appraisers shall, in simple letter form executed by the agreeing appraisers, forthwith notify both Landlord and Tenant of the amount set by such agreement. (5) If multiple appraisers are selected and the agreement of at least two appraisers cannot be obtained within ten days after the initial meeting, then being made within five days after the expiration of said ten day period, all appraisers shall submit to Landlord and Tenant and independent appraisal, in determining simple letter form, of the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof fair market rent for the Premises. The parties shall then determine the appraised fair market rent for the Premises by averaging the appraisals; provided, however, that (i) if the lowest appraisal is less than 85% of the middle appraisal, then such lowest appraisal shall be disregarded and (ii) if the highest appraisal is greater than 115% of the middle appraisal, then such highest appraisal shall be disregarded. If any appraisal is so disregarded, then the average shall be determined by computing the average of the appraisals that have not been disregarded. (6) Nothing contained herein shall prevent Landlord and Tenant from jointly selecting a single appraiser to determine the fair market rate of the Premises, in which event, the determination of such appraisal shall be conclusively deemed to be the fair market rate of the Premises for the Extension Option Term term in question). (7) If only one appraiser is selected, then each party shall pay half of the fees and expenses of that appraiser. For purposes If three appraisers are selected, then each party shall bear the fees and expenses of such calculationthe appraiser it selects, it will only be assumed that Landlord is paying a representative plus half of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative fees and expenses of Tenant in connection with the applicable Option Termthird appraiser.

Appears in 1 contract

Sources: Retail Lease (Colecciones De Raquel Inc)

Renewal Options. a. (a) Tenant shall have the right and option to renew extend the Lease (“Renewal Option”) Term for the Premises for two (2) successive renewal periods extended terms of five (5) years (each (each, an such period being herein referred to as the Option Extended Term”); provided, however, the Renewal Option is contingent upon the following: . Each such option shall be exercised by irrevocable written notice to Landlord given not less than twelve (i12) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the then current Term. If The Extended Term shall be upon the same covenants, agreements, terms, provisions and conditions that are contained herein for the then current Term, as the same shall then be in effect hereunder, except as expressly provided herein to the contrary. Tenant fails may not exercise the option to give notice extend the Lease Term for any Extended Term if any default by Tenant under this Lease has occurred and is continuing. (b) As of the commencement of the Extended Term, the Base Rent for the Premises shall be adjusted to the prevailing Market Base Rental Rate (hereinafter defined) as of the commencement of the Extended Term and may increase to the extent so determined in subsection (c) below. (c) Whenever used in this Lease, the term “Market Base Rental Rate” as of any date shall mean the annual net (excluding that portion of the rate associated with operating expenses) rental rate per square foot of net rentable area which a willing landlord under no compulsion would agree to accept as of such date, and such a willing tenant under no compulsion would agree to pay as of such date, for renewal leases (based on a five [5] year term) of space in comparable office buildings located in Broomfield, Colorado area comparable to the space for which the Market Base Rental Rate is being determined and on a comparable basis (taking into consideration all relevant factors), and including any applicable annual escalation of rates during such Extended Term. Unless Landlord and Tenant shall agree upon the applicable Market Base Rental Rate prior to the 180-day period, then Tenant shall forfeit date which is nine (9) months before the Renewal Option. If Tenant exercises commencement of the Renewal Option, then during the Option Extended Term, Landlord and Tenant’s respective rights, duties and obligations Tenant shall be governed by begin to negotiate the terms and conditions amount of Market Base Rental Rate promptly following the date which is eight (8) months before the commencement of the Lease, except as provided otherwise in this SectionExtended Term. Time In the event Landlord and Tenant are unable to agree upon the applicable Market Base Rental Rate prior to the date which is seven (7) months before the commencement of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of MurfreesboroExtended Term, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such either party may demand arbitration as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.hereinafter provided:

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Fund Viii Lp)

Renewal Options. a. Provided that Tenant shall is not in default under this Lease either at the time it exercises the Renewal Options set forth below, or at the date a Renewal Term begins, Tenant will have the right and option to renew the this Lease (“Renewal Option”) for two (2) successive renewal periods five-year terms (the "Renewal Terms") by giving notice of five (5) years each (each, an “Option Term”); provided, however, exercise of the Renewal Option is contingent upon to Landlord at least six (6) months before the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration end of the current Lease Term and the first Renewal Term; (ii) no event has occurred that upon notice or , as the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Termcase may be. If Tenant fails to give deliver timely written notice of exercise of a Renewal Option to Landlord, the Renewal Options shall lapse and Tenant will have no further privilege to extend the term of this Lease. Each Renewal Term shall be on the same terms and conditions of this Lease (unless by their very nature inapplicable), except that the base rent payable by Tenant to Landlord prior during each Renewal Term shall be based on the prevailing "market rental rate" for comparable space in competing buildings of similar size, type, quality and location as reasonably calculated by Landlord for each Renewal Term, but in no event less than the rate in force at the end of the --- -- -- ----- ---- preceding term. In the event Landlord and Tenant are unable to mutually agree on the "market rental rate" to be applied to the 180-day periodProperty, then Landlord and Tenant shall forfeit mutually select an MAI commercial real estate appraiser, and the Renewal Optionopinion of such appraiser shall be binding upon both Landlord and Tenant. If Landlord and Tenant fail to mutually select such an MAI appraiser, the president of the Arizona Chapter of the Appraisal Institute shall select the appraiser. In addition to paying the base rent determined pursuant to this paragraph, Tenant will continue to pay all other sums required under the Lease. If this Lease or Tenant's right to possession of the Building shall expire or terminate for any reason whatsoever before Tenant exercises the Renewal OptionOptions, or if Tenant has sublet or assigned all or any portion of the Building, other than to a Tenant Affiliate, then during immediately upon such expiration or termination, subletting or assignment, the Option TermRenewal Options shall simultaneously terminate and become null and void. The Renewal Options are personal to Tenant. Under no circumstances shall a subtenant or an assignee have the right to exercise the Renewal Options, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Sectionother than a Tenant Affiliate. Time is of the essence in exercising the Renewal Optionof this provision. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Investment Trust Inc)

Renewal Options. a. Tenant shall have the right and option to renew extend the Term of the Lease for all of the then leased Premises for three (3) additional periods of three (3) years each (each a “Renewal Option”), under and subject to the following terms and conditions: (a) The first renewal term (“First Renewal Term”) shall be for a three (3)-year period commencing on the day immediately following the expiration date of the initial Term of the Lease and expiring on the day immediately preceding the third (3rd) anniversary thereof. The second renewal term (“Second Renewal Term”) shall be for a three (3)-year period commencing on the day immediately following the expiration date of the First Renewal Term of the Lease and expiring on the day immediately preceding the third (3rd) anniversary thereof. The third renewal term (the “Third Renewal Term”) shall be for a three (3) year period commencing on the day immediately following the expiration of the Second Renewal Term of the Lease and expiring on the day immediately preceding the third (3rd) anniversary thereof. Collectively, the First Renewal Term, the Second Renewal Term and the Third Renewal Term are referred to as the “Renewal Terms”. (b) Tenant must exercise the Renewal Option for the First Renewal Term, if at all, by written notice to Landlord delivered at least nine (9) months prior to the expiration date of the initial Term of this Lease, time being of the essence. If Tenant fails to exercise the Renewal Option for the First Renewal Term, the Renewal Option for the Second Renewal Term and the Third Renewal Term shall be void and of no further force and effect. Tenant must exercise the Renewal Option for the Second Renewal Term, if at all, by written notice to Landlord delivered at least nine (9) months prior to the expiration date of the First Renewal Term, time being of the essence. Tenant must exercise the Renewal Option for the Third Renewal Term, if at all, by written notice to Landlord delivered at least nine (9) months prior to the expiration date of the Second Renewal Term, time being of the essence. (c) As a condition to Tenant’s exercise of any of the Renewal Options, at the time Tenant delivers its notice of election to exercise such Renewal Option to Landlord, there shall be no Event of Default, this Lease shall be in full force and effect, and Tenant shall not have assigned this Lease or sublet the Premises (other than to an Affiliate). (d) The Minimum Annual Rent for the first years of the First Renewal Term, Second Renewal Term and the Third Renewal Term shall be the then current fair market 126390.00400/118481426v.4 04/15/2019 05:55 A4P4 rent for renewals for comparable space in similar buildings within a five (5)-mile radius of the Building. The subsequent years of Minimum Annual Rent during each respective Renewal Term shall increase consistent with then market annual escalations ("Fair Market Rental"). Landlord shall determine the Fair Market Rental using its good faith judgment and shall provide written notice of such Fair Market Rental within fifteen (15) days after Tenant's exercise notice pursuant to this Section. Tenant shall thereupon have the following options: (i) to accept such proposed Fair Market Rental or (ii) to notify Landlord in writing that Tenant objects to the proposed rental rate. Tenant must provide Landlord with written notification of its election within fifteen (15) days after ▇▇▇▇▇▇'s receipt of Landlord's notice, otherwise Tenant shall be deemed to have elected clause (i) above. If Tenant objects to ▇▇▇▇▇▇▇▇'s proposed Fair Market Rental in accordance with clause (ii) above, Landlord and Tenant will attempt to negotiate a mutually acceptable rental rate within fifteen (15) days following notification by Tenant, and if such negotiations have not been concluded within such fifteen (15) day-period, either party may require an independent determination of the Fair Market Rental for the Renewal Term by giving written notice to the other party no later than five (5) days after the expiration of the fifteen (15)-day period, which notice shall designate a MAI real estate appraiser or real estate broker with at least ten (10) years experience in the leasing of similar properties in the Salt Lake City market area ("Qualified Appraiser"). Within ten (10) days after receipt of such notice, the other party to this Lease shall select a Qualified Appraiser and give written notice of such selection to the initiating party. If the two (2) successive renewal periods Qualified Appraisers fail to agree upon the Fair Market Rental consistent with this Section 31 within ten (10) days after selection of five the second Qualified Appraiser, the two (52) years each Qualified Appraisers shall select a third (each, an “Option Term”)3rd) Qualified Appraiser to determine the Fair Market Rental consistent with this Section 31 within ten (10) days after the appointment of the third (3rd) Qualified Appraiser. The Fair Market Rental applicable to the Renewal Term shall be equal to the arithmetic average of the three (3) determinations; provided, however, that if one (1) Qualified Appraiser's determination deviates by more than five percent (5%) from the Renewal Option is contingent upon median of the following: three (3) determinations, the Fair Market Rental shall be an amount equal to the average of the other two determinations. The determination of the Fair Market Rental in accordance with the foregoing shall be final, binding and conclusive on Landlord and Tenant. The parties shall each pay the costs and expenses of their appointed Qualified Appraiser and shall split evenly the costs and expenses of the third (3rd) Qualified Appraiser. (e) Except as set forth in this Section 31, (i) there is not an Event shall be no further options to extend the Term of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; this Lease, and (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the all terms and conditions of the Lease, except as provided otherwise Lease shall remain in this Section. Time is of the essence in exercising full force and effect during the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, includingTerms, without limitationchange. 126390.00400/118481426v.4 04/15/2019 05:55 A4P4 ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇ have executed this Lease on the respective date(s) set forth below. ▇▇▇▇▇▇▇▇ LOGISTICS ASSETS LLC, a Delaware limited liability company Date signed: By: /s/ ▇▇▇▇ ▇▇▇▇▇ Name: ▇▇▇▇ ▇▇▇▇▇ 4/26/2019 Title: Vice President Date signed: Tenant: 19 April 2019 PENUMBRA, INC., a Delaware corporation Attest/Witness: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇ Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇ Title: Senior Counsel Title: CEO 126390.00400/118481426v.4 04/15/2019 05:55 A4P4 “ADA” means the following matters: the credit standing Americans With Disabilities Act of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area 1990 (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost42 U.S.C. § 1201 et seq.), as amended and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord supplemented from time to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termtime.

Appears in 1 contract

Sources: Lease Agreement (Penumbra Inc)

Renewal Options. a. 26.1 Tenant shall have is hereby granted the right and option ("Extension Option") to renew extend the term of the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each Lease Years (each"Extension Term"). The Extension Option may be exercised only by giving Landlord irrevocable and unconditional written notice thereof no earlier than eighteen (18) months and no later than nine (9) months prior to the commencement of the Extension Term. Tenant may not exercise the Extension Option if Tenant is in default under the Lease beyond the expiration of any applicable cure period either at the date of said notice or at any time thereafter prior to commencement of the Extension Term. Upon exercise of the Extension Option, an “Option Term”); providedall references in the Lease to the Term shall be deemed to be references to the Term as extended pursuant to the Extension Option. 26.2 The Extension Term shall be on the same terms, howevercovenants and conditions as are contained in the Lease, the Renewal Option is contingent upon the following: except that (i) there is not an Event of Default beyond all applicable cure period(s) at no additional extension option shall be conferred by the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; Extension Option, (ii) no event has occurred that upon notice or Base Rent applicable to the passage of time would constitute an Event of DefaultPremises for the Extension Term shall be determined as provided below, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying any initial rent abatement, concession or allowance which are in the Premisesnature of economic concessions or inducements shall not be applicable to any Extension Term. Following expiration of the final Option Term allowable hereunderIn addition to Base Rent, Tenant shall have no further right to renew pay Additional Rent, and other Rent during the Lease pursuant to Extension Term as provided in this Section 5Lease. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration 26.3 Base Rent per annum per rentable square foot of the current Term. If Tenant fails to give notice to Landlord prior to Premises for the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Extension Term shall be one hundred percent (100%) of the Fair Current Market Rental Rate for lease terms commencing on or about the date of commencement of the Extension Term. The term "Current Market Rate. “Fair Market Rental Rate” shall mean " means the market prevailing rental rate per rentable square foot under office leases recently executed for the time period such determination is being made for office comparable space in same class office the Building and in comparable buildings in the area North ▇▇▇▇▇▇▇ County submarket in which the Building is located. The determination of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination Current Market Rate shall take into account all relevant factorsconsideration net versus gross lease (and differing base years, including, without limitationif applicable); any differences in the size of space being leased, the following matters: location of space in the credit standing building and the length of lease terms; any differences in definitions of rentable square feet or rentable area with respect to which rental rates are computed; the value of rent abatements, allowances (for demolition, space planning, architectural and engineering fees, construction, moving expenses or other purposes); the creditworthiness of Tenant; the length location and condition of the termbuilding; the fact that Landlord will experience no vacancy period and that Tenant will not suffer condition of the costs and business interruption associated with moving its offices and negotiating a new leasespace; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant pertinent factors. The Current Market Rate may include an escalation of a fixed rental rate (based on a fixed step or index) then prevailing in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termmarket.

Appears in 1 contract

Sources: Office Lease Agreement (Wells Real Estate Fund Xi L P)

Renewal Options. a. Tenant shall have have, and is hereby granted, the right and option to renew options (the Lease (“Renewal OptionOptions”) to extend the Term of this Lease Agreement for two (2) successive renewal additional periods of five (5) years each (eachas applicable, an the Option Extended Term”); provided) upon and subject to the following terms, however, the conditions and provisions: A. The Renewal Option is contingent upon the following: Options may only be exercised by Tenant giving irrevocable written notice thereof to Landlord no earlier than fourteen (i14) there is not an Event of Default beyond all applicable cure period(smonths nor later than nine (9) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the then current TermTerm of this Lease Agreement. If Tenant fails to give Landlord such written notice to Landlord prior to the 180-day of exercise of such Renewal Option within such specified time period, then Tenant shall forfeit be deemed to have elected not to exercise, and to have waived, such Renewal Option and the Renewal OptionOption shall automatically terminate and expire and be of no further force and effect. It is expressly agreed that Tenant shall not have the option to extend the Term of this Lease Agreement beyond the Extended Term. If Tenant exercises either of the Renewal OptionOptions, then during such Extended Term shall commence immediately upon the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions expiration of the Leasethen current Term of this Lease Agreement (as applicable, except as provided otherwise in this Sectionthe “Extended Term Commencement Date”). Time is B. If Tenant exercises either of the essence Renewal Options (in exercising accordance with and subject to the Renewal Option. c. The Base Rental for an Option provisions of this Section 49), the Extended Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utilityupon, and location. Such determination shall take into account subject to, all relevant factorsof the terms, covenants and conditions provided in this Lease Agreement except for any terms, covenants and conditions that are expressly or by their nature inapplicable to the Extended Term (including, without limitation, the following matters: right to renew the credit standing Term of Tenant; this Lease Agreement beyond the length Extended Term) and except that (i) the annual Base Rent during the applicable Extended Term shall be equal to the Prevailing Market Rental Rate (as defined and determined in accordance with Section 50 below) at the time Tenant exercises such Renewal Option, and (ii) the Leased Premises and all leasehold improvements relating thereto will be provided in the condition they exist (i.e., “AS IS” and “WITH ALL FAULTS”) on the Extended Term Commencement Date, and this Lease Agreement shall be deemed to have been automatically amended as of the term; Extended Term Commencement Date in accordance with this Section 49. Tenant and Landlord shall promptly (but in no event longer than fifteen (15) days after Landlord’s submission of the fact that Landlord will experience no vacancy period amendment to Tenant) execute and that Tenant will not suffer deliver an appropriate amendment of this Lease Agreement to evidence such terms following commencement of the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Extended Term.

Appears in 1 contract

Sources: Build to Suit Lease Agreement

Renewal Options. a. Tenant shall have 43.01. Provided that at the right and time of the exercise of the applicable option to renew renew, and upon the Lease commencement of the applicable Renewal Period, an Event of Default has not occurred that remains uncured, then Landlord hereby grants to Tenant the option (the “Renewal Option”) to renew the term of this Lease for two (2) successive renewal additional periods of five (5) years each (each, an a Option TermRenewal Period”); provided. The first Renewal Period, however, if the Renewal Option therefor is contingent exercised, will commence on the day after the initial Expiration Date upon the following: (i) there is not an Event same terms and conditions as set forth in this Lease other than the Fixed Base Rent which shall be the Fair Market Value of Default beyond all applicable cure period(s) the Demised Premises at the time of the commencement of the Renewal Period multiplied by the rentable square footage of the Demised Premises (but in no event less than the Fixed Base Rent payable hereunder by Tenant gives Landlord notice for the last 12 months of Tenant’s intention to exercise the original Term). The second Renewal Period, if the Renewal Option or at therefor is exercised, will commence on the day after the scheduled expiration of the current Term; first Renewal Period upon the same terms and conditions as set forth in this Lease other than the Fixed Base Rent which shall be the Fair Market Value of the Demised Premises at the time of the commencement of the second Renewal Period multiplied by the rentable square footage of the Demised Premises (ii) but in no event has occurred that upon notice or less than the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Fixed Base Rent payable hereunder by Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying for the Premises. Following expiration last 12 months of the final Option Term allowable hereunder, Tenant first Renewal Period). The Fixed Base Rent shall have no further right automatically increase on each anniversary of the commencement of the applicable Renewal Period by an amount equal to renew $0.50 multiplied by the Lease pursuant to this Section 5rentable square footage of the Demised Premises. b. 43.02. Tenant shall exercise the first Renewal Option by giving written notice to Landlord notice at least one hundred eighty (180a “Renewal Notice”) days not earlier than eighteen (18) months and not later than fifteen (15) months prior to the initial Expiration Date, TIME BEING OF THE ESSENCE. Tenant shall exercise the second Renewal Option, if applicable, by giving a Renewal Notice to Landlord not earlier than eighteen (18) months and not later than fifteen (15) months prior to the scheduled expiration date of the current Termfirst Renewal Period, TIME BEING OF THE ESSENCE. If Tenant fails to give notice to Landlord prior a Renewal Notice with respect to the 180-day period, then Tenant shall forfeit first Renewal Option or the Renewal Option. If Tenant exercises the second Renewal Option, then during Tenant will be deemed to have waived such Renewal Option and the Option Term, Landlord and Tenant’s respective rights, duties and obligations provisions of this Section shall be governed by the terms null and conditions of the Lease, except as provided otherwise void. The Renewal Options accorded in this Section. Time is of the essence Article 43 are personal to Tenant and may not be assigned except in exercising the Renewal Optionconnection with a Permitted Transfer. c. The Base Rental for an Option Term shall be the 43.03. Fair Market Rental Rate. “Fair Market Rental Rate” Value shall mean the market rental rate for the time period such determination is being made amount, on a per square foot basis, that a willing tenant would pay and a willing landlord would accept in an arms’ length transaction for office space in same class office buildings comparable to the Demised Premises in the area of MurfreesboroPlainsboro/Princeton New Jersey office market area, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other giving appropriate consideration to tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowanceimprovements, free rent periods, brokerage commissions and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question)other applicable factors. 43.04. For purposes of such calculationdetermining “Fair Market Value” for either Renewal Period, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.following procedure shall apply:

Appears in 1 contract

Sources: Lease Agreement (Aralez Pharmaceuticals Inc.)

Renewal Options. a. Tenant shall have the right and option right, at its option, to renew (i) the initial term of this Lease for all of the Premises for one additional term of twenty (20) years (the “First Renewal Term”) commencing on the day following the Initial Term Expiration Date and ending at 11:59 pm on the last day of the calendar month in which occurs the day immediately prior to the eightieth (80th) anniversary of the Commencement Date (the “First Renewal Term Expiration Date”), by delivering to Landlord written notice of such renewal for the First Renewal Term not later than the date that is twenty (20) months prior to the date upon which the First Renewal Term shall commence (time being of the essence with respect to the date upon which Tenant deliver to Landlord such notice of renewal), and (ii) the Term of this Lease for all of the Premises for one additional term of seventeen (17) years (the “Second Renewal Term”) commencing on the eightieth (80th) anniversary of the Commencement Date and ending at 11:59 pm on the date immediately preceding the ninety-sixth (96th) anniversary of the Commencement Date (the “Second Renewal Term Expiration Date”), by delivering to Landlord written notice of such renewal for the Second Renewal Term not later than the date that is twenty (20) months prior to the date upon which the Second Renewal Term shall commence (time being of the essence with respect to the date upon which Tenant deliver to Landlord such notice of renewal) (each of the First Renewal Term and Second Renewal Term being a “Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, provided that the Renewal Option is contingent upon the following: (i) there is not an Event valid exercise of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration each of the current aforesaid options for the First Renewal Term and the Second Renewal Term; (ii) , as the case may be, shall be conditioned upon there being no event has default on the part of Tenant under this Lease which shall have occurred that upon and then be continuing beyond any applicable notice or and cure period on the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration date of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current applicable renewal option and on the commencement date of the applicable Renewal Term. If Tenant fails to give notice to Landlord prior to validly exercise the 180-day periodoption for the First Renewal Term as aforesaid, then the Term shall expire on the Initial Term Expiration Date and Tenant shall forfeit have no further rights or options to extend the initial term of this Lease to include either the First Renewal OptionTerm or the Second Renewal Term. If Tenant validly exercises the option for the First Renewal OptionTerm as aforesaid, then but fails to validly exercise the option for the Second Renewal Term as aforesaid, the Term shall expire on the First Renewal Term Expiration Date, or such earlier date upon which the First Renewal Term shall terminate in accordance with this Lease, and Tenant shall have no further rights or options to extend the Term to include the Second Renewal Term. If Tenant validly exercises the options for the First Renewal Term and the Second Renewal Term as aforesaid, the Term shall expire on the Second Renewal Expiration Date, or such earlier date upon which the Second Renewal Term shall terminate in accordance with this Lease. In the event the Term is so extended pursuant to one or both of the aforesaid options, (A) the annual Base Rent payable by Tenant during the Option First Renewal Term and the Second Renewal Term, Landlord and Tenant’s respective rightsas applicable, duties and obligations shall be governed by at the terms rates set forth and conditions determined in accordance with Sections 3.02(b) and 3.02(c), respectively, (B) the Participation Rent shall be as provided in Section 3.03, and (C) the Participation Rent Threshold shall be determined in accordance with Section 3.03(f). If the Term of this Lease is extended pursuant to one or both of the Leaseaforesaid options, except as provided otherwise in this Section. Time is all of the essence provisions of this Lease shall continue in exercising full force and effect until the Renewal OptionExpiration Date. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement

Renewal Options. a. 1. If, on the expiration of the Term of this Lease --------------- and the date Tenant shall have the right and option notifies Landlord of its intention to renew the Lease Term (“Renewal Option”) for two as provided in subsection (2) successive renewal periods below), (i) Tenant is not in default under this Lease beyond any applicable notice and cure period provided for in this Lease, and (ii) this Lease is in full force and effect, then Tenant shall have and may exercise an option to renew this Lease for an additional term of five (5) years each (each, an “Option the "Renewal Term”); provided, however, ") upon the same terms and conditions contained in this Lease ------------ with the exceptions that the rental for the Renewal Option Term shall be the then- prevailing market rate of rent in the Herndon, Virginia area, inclusive of consideration of then-current market concessions (including, without limitation, refurbishment allowances and rent abatement) (the "Renewal Rental Rate"). ------------------- 2. If Tenant desires to renew this Lease pursuant to subsection (1) above, Tenant must notify Landlord in writing of its intention to renew (the "Renewal Notice") not less than twelve (12) months prior to the expiration of --------------- the Term of this Lease (the "Expiration Date"). Landlord shall, within ten (10) --------------- business days following the later of Landlord's receipt of such Renewal Notice or the date which is contingent upon twelve (12) months prior to the following: Expiration Date, notify Tenant in writing of Landlord's determination of the Renewal Rental Rate and Tenant shall, within the next ten (10) business days following receipt of Landlord's determination of the Renewal Rental Rate, notify Landlord in writing of Tenant's acceptance or rejection of Landlord's determination of the Renewal Rental Rate. If Tenant timely notifies Landlord of Tenant's acceptance of Landlord's determination of the Renewal Rental Rate, this Lease shall be extended as provided herein and Landlord and Tenant shall enter into an amendment to this Lease to reflect the extension of the Lease Term and changes in Base Rent in accordance with this Exhibit. If (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives timely notifies Landlord notice in writing of Tenant’s intention to exercise 's rejection of Landlord's determination of the Renewal Option Rental Rate or at (ii) Tenant does not notify Landlord in writing of Tenant's acceptance or rejection of Landlord's determination of the Renewal Rental Rate within such ten (10) business day period, Landlord and Tenant will promptly attempt to agree on the Renewal Rental Rate. If Landlord and Tenant cannot agree within ten (10) business days of Tenant's rejection in subclause (i) hereinabove or the expiration of the current Term; ten (10) business days period referred to in subclause (ii) no event has occurred that upon hereinabove, then Tenant may either (A) withdraw its Renewal Notice by written notice to Landlord, in which event, all of Tenant's rights under this Paragraph A shall immediately and irrevocably terminate, or (B) proceed promptly to determine the passage of time would constitute an Event of DefaultRenewal Rental rate by appraisal, unless in which case, Landlord has given notice of default and Tenant is diligently attempting shall each select a qualified independent real estate broker or appraiser (i.e., a real estate broker or appraiser with no prior or existing contractual relationship with either party) with at least five (5) years experience in leasing office buildings in the Herndon, Virginia area to cure such event; and determine the Renewal Rental Rate. If the values determined by the brokers/appraisers are less than ten percent (iii10%) Tenant is occupying apart, the average of the values determined by them shall be deemed the Renewal Rental Rate for the Premises. Following expiration of If the final Option Term allowable hereunderbrokers/appraisers do not agree, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty and if their determinations are more than ten percent (18010%) apart, then on or before seventy-five (75) days prior to the expiration commencement of the current Renewal Term, the two brokers/appraisers shall select a third independent broker/appraiser who will determine the Renewal Rental Rate for the Premises. If Tenant fails to give notice to Landlord the value determined by the third broker/appraiser is between the values determined by the two prior broker/appraisers, the determination of the third broker/appraiser will control. If the third broker/appraiser's determination is not between the values determined by the two prior broker/appraisers, then the value of the first two broker/appraisers closest to the 180-day period, then Tenant shall forfeit value of the third broker/appraiser will be the Renewal Optionrental Rate for the Premises. If Tenant exercises Each party shall pay the Renewal Optionfees and expenses of its broker/appraiser, then during and the Option Term, fees and expenses of the third broker/appraiser shall be shared equally between Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Lease Agreement (Network Access Solutions Corp)

Renewal Options. a. Subject to the condition that, at the time of exercise of any renewal option hereunder and at all times thereafter until such renewal option is consummated by an amendment to this Lease, no Event of Default exists and remains uncured under this Lease, Tenant shall have is hereby granted the right and option to renew the Lease (“Renewal Option”) Term for two (2) successive renewal periods of five (5) years each (each, an the first such period (Option First Renewal Term”); provided, however, ) to commence on the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at day following the expiration of the current Initial Term; and the second such period (iithe “Second Renewal Term”) no event has occurred that upon notice or to commence on the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying date following the Premises. Following expiration of the final Option Term allowable hereunderFirst Renewal Term. Except as provided in the next sentence, Tenant shall have no further right must exercise the option to renew for the Lease pursuant First Renewal Term by delivering written notice of such election to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty no more than fourteen (18014) days months and no less than eleven (11) months prior to the expiration of the current Initial Term. If ; and Tenant fails must exercise the option to give renew for the Second Renewal Term by delivering written notice of such election to Landlord no more than fourteen (14) months and no less than eleven (11) months prior to the 180-day periodexpiration of the First Renewal Term. Notwithstanding the provisions set out in the preceding sentence, if Tenant has subleased two (2) or more floors in the Building and those subleases are then in effect, then Tenant shall forfeit will not be entitled to renew this Lease for the First Renewal Option. If Term with respect to any subleased space unless Tenant exercises the Renewal Optionoption to renew on all of such subleased space no more than eighteen (18) months and no less than fifteen (15) months prior to the expiration of the Initial Term; and if Tenant has subleased two (2) or more floors in the Building and those subleases are then in effect, then Tenant will not be entitled to renew this Lease for the Second Renewal Term with respect to any subleased space unless Tenant exercises the option to renew on all of such subleased space no more than eighteen (18) months and no less than fifteen (15) months prior to the expiration of the First Renewal Term. Any renewal of this Lease shall be upon the same terms and conditions as this Lease, except: (i) Tenant may exercise any renewal option on at least the first and second floors of the Building (in their entirety); (ii) if Tenant exercises Tenant’s option to renew on more than the first two floors of the Building, Tenant shall lease all additional space on contiguous floors (starting with the third floor) in contiguous half floor increments so that any remaining vacancy on any floor shall have elevator lobby exposure on one side; (iii) the Annual Rent and Monthly Installments of Rent during each renewal term shall be determined based upon the prevailing “Market Base Rent Rate” (defined below); (iv) the Annual Rent and Monthly Installments of Rent during the Option First Renewal Term shall be an amount equal to 95% of the prevailing Market Base Rent Rate as of the date of Tenant’s exercise of the first renewal option (or alternatively, Landlord may provide Tenant with an abatement of the first three (3) Monthly Installments of Rent during the First Renewal Term, in which event the Annual Rent and Monthly Installments of Rent will be set at 100% of the prevailing Market Base Rent Rate); (v) the Annual Rent and Monthly Installments of Rent during the Second Renewal Term shall be an amount equal to 95% of the prevailing Market Base Rent Rate as of the date of Tenant’s exercise of the second renewal option (or alternatively, Landlord may provide Tenant with an abatement of the first three (3) Monthly Installments of Rent during the Second Renewal Term, in which event the Annual Rent and Monthly Installments of Rent will be set at 100% of the prevailing Market Base Rent Rate); (vi) Landlord will not be required to construct or install any improvements or refurbishments to the Premises, nor will Landlord be required to afford any construction allowance to Tenant, it being agreed and understood that the terms and provisions of Exhibit B attached to this Lease will not be applicable during any renewal term, except to the extent the same is included in the determination of the Market Base Rent Rate; (vii) except as expressly provided in (iv) and (v) above in this Section 41.5, Tenant will not be entitled to any rent abatement during any renewal term, except to the extent the same is included in the determination of the Market Base Rent Rate; and (viii) the expense limitations set out in Section 41.2 of this Lease will not be effective after the expiration of the Initial Term, except to the extent the same is included in the determination of the Market Base Rent Rate. If the Market Base Rent Rate is determined based upon an assumption that certain concessions will be afforded to the Tenant in conjunction with such Market Base Rent Rate, then those concessions will be afforded to Tenant. For example, if the Market Base Rent Rate is determined based upon an assumption that the Tenant will be provided with a $10.00 per square foot refurbishment allowance, then a $10.00 per square foot refurbishment allowance will be afforded to Tenant. Within ten (10) days after the date upon which the Market Base Rent Rate is determined with respect to any renewal term, Landlord and Tenant’s respective rightsTenant will enter into a written amendment to this Lease, duties and obligations shall be governed by renewing the terms and conditions Term of the Lease, except as provided Lease and otherwise amending the Lease to conform with the agreements set out in this SectionSection 41.5. Time is of the essence in exercising the Renewal Option. c. The Market Base Rental for an Option Term shall Rent Rate shall, with respect to each renewal term, be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such determined as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.follows:

Appears in 1 contract

Sources: Lease Agreement (KBS Real Estate Investment Trust III, Inc.)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant▇▇▇▇▇▇’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the prevailing market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; Basic Rental for the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would subject Option Term shall be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection accordance with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.following:

Appears in 1 contract

Sources: Triple Net Office Lease Agreement

Renewal Options. a. A. Provided that this Lease is in full force and effect and there is no Event of Default which has not been cured at the time Tenant elects to extend the Term pursuant to Section B below, and at the commencement of such Extended Term (as hereinafter defined), Tenant shall have the right and option to renew extend the term of this Lease (“Renewal Option”) for two (2) successive renewal periods terms of five ten (510) years each (each, an “Option "Extended Term”); provided, however, the Renewal Option is contingent ") upon the following: same terms and provisions set forth in this Lease except that the Fixed Rent payable by Tenant shall be the greater of (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise Fixed Rent payable during the Renewal Option initial lease Term or at first Extended Term, as the expiration of the current Term; case may be, or (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration "Fair Market Rental Value" of the final Option Term allowable hereunderPremises determined as follows: (i) Upon receipt of notice from Tenant pursuant to Section B below, that it elects to extend the term of this Lease, the parties will attempt, during the first thirty (30) day period thereafter to mutually agree upon the Fair Market Rental Value of the Premises for the Extended Term. "Fair Market Rental Value" shall mean the value based on Tenant's current use, shall exclude the value of Tenant's Work and any Alterations made by Tenant following the Commencement Date, and shall assume that no commissions are to be paid by Landlord. If the parties are unable to agree upon the Fair Market Rental Value, each party will notify the other within fifteen (15) days following the end of said thirty (30) day period of the name of a licensed, independent, local real estate appraiser, who is an individual of substantial experience with respect to office buildings in the San Jose, California area and is an MAI (or its successor) appraiser (a "Qualified Appraiser"). If both Qualified Appraisers shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-been appointed within said fifteen day period, then Tenant the two Qualified Appraisers so appointed shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be determine the Fair Market Rental RateValue of the Premises. If only one Qualified Appraiser shall have been appointed within said fifteen (15) day period, then such Qualified Appraiser shall determine the Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length Value of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermPremises.

Appears in 1 contract

Sources: Lease (Abovenet Communications Inc)

Renewal Options. a. As long as there has not been an uncured event of default, Landlord will grant Tenant shall have the right and option to renew the this Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each under the following terms and conditions. Tenant must notify Landlord at least two hundred forty (each, an “Option Term”); provided, however, 240) days in advance of the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice Term Expiration Date of Tenant’s intention 's desire to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further its right to renew this Lease for the Lease pursuant to this Section 5. b. first five-year renewal Term, and Tenant shall exercise the Renewal Option by giving must notify Landlord notice at least one two hundred eighty forty (180240) days prior to the expiration in advance of the current last day of the first five-year renewal Term of Tenant's desire to exercise its right to renew this Lease for the second five-year renewal Term. If Tenant fails to give notice to and Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed bound by all of the terms and conditions of this Lease during each renewal Term except for Base Rent as hereinabove defined, which shall be increased at the beginning of each renewal Term to an amount equal to ninety-five (95%) percent of the market rent for the Premises at the beginning of such renewal Term, and increased thereafter for each Lease Year of each renewal Term by an amount equal to three percent (3%) of the Base Rent for the preceding Lease Year of the renewal Term. As used in this Lease, except as provided otherwise in this Section. Time is "Lease Year" means each twelve-month period beginning on the day of the essence calendar year on which the Term Commencement Date falls and ending on the day of the calendar year preceding the date on which the Term Commencement Date falls. For the first thirty (30) days following Landlord's receipt of Tenant's notice of exercise of one of the above options to renew, Landlord and Tenant shall have the opportunity and option to mutually agree upon the fair market rental for the Premises. If Landlord and Tenant are unable to agree upon such fair market rental within the time period set forth above, then each party shall within thirty (30) days after the expiration of said time period appoint an appraiser and notify the other party of such appointment by identifying the appraiser. Each party hereby agrees to select as its respective appraiser a licensed real estate broker, who is an individual having at least five (5) years experience with respect to office property ownership, management, and marketing in exercising the Renewal Option. c. Wilmington, North Carolina area. Not later than ten (10) days after both appraisers are appointed, each party shall separately, but simultaneously, submit in a sealed envelope to each appraiser their suggested fair market rental and shall provide a copy of such submission to the other party. The Base Rental two selected appraisers, after reviewing such submissions, shall each independently determine the fair market rental of the Premises. If both appraisers agree on the fair market rental for an Option Term the Premises, they shall declare the same to be the fair market rental for the Premises and their decision shall be final and binding upon the parties, provided that such fair market rental shall not be outside of the bounds established by Landlord's and Tenant's estimates furnished as set forth above. If the two selected appraisers are unable to agree upon the fair market rental within thirty (30) days after receipt of Landlord's and Tenant's submitted estimates, then the appraisers shall inform the parties and the appraisers shall select a third appraiser, not less than ten (10) days after the expiration of the thirty (30) day period. If no appraiser is selected within such ten (10) day period, either party may immediately petition a court of competent jurisdiction to appoint such third appraiser. The third appraiser shall have the same qualifications as set forth above. The third appraiser shall independently determine the fair market rental of the Premises. The ultimate fair market rental of the Premises shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean arithmetic average of the two fair market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length values determined by two of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available three appraisers which are closest to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if anyeach other, but specifically excluding in no event in outside the value bounds established by Landlord's and Tenant's estimates furnished as set forth above. The appraisals or estimates of improvements installed in the fair market rental of the Premises at Tenant’s cost), and whether adjustments are then being made in determining under this paragraph shall be appraisals or estimates of such value as of the rental rates for renewals in commencement date of the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option renewal Term in question). For purposes The fair market rental established under this paragraph shall be conclusive, unappealable, and binding upon the parties hereto. Each party shall be responsible for the costs, charges, and/or fees of such calculationits appraiser, it will only be assumed that Landlord is paying a representative and the parties shall equally share the costs, charges, and/or fees of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthird appraiser.

Appears in 1 contract

Sources: Lease Agreement (Pharmaceutical Product Development Inc)

Renewal Options. a. Tenant shall have the right and option to renew the Lease (“Renewal Option”) for Lessee is hereby granted two (2) successive options to renew this Lease upon the following terms and conditions: (A) At the time of the exercise of the option to renew and at the time of the said renewal, the Lessee shall not be in monetary or other substantial non-monetary default in accordance with the terms and provisions of this Lease, for which non-monetary default Lessor has provided notice to Lessee, and shall be in possession of the Premises pursuant to this Lease. (B) Notice of the exercise of the option shall be sent to the Lessor in writing at least nine (9) months before the expiration of the original term of this Lease. (C) Each renewal periods term shall be for the previous term of five Five (5) years each (eachyears, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or commence at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage term of time would constitute an Event this Lease, and all of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of this Lease, other than the rent, shall apply during the renewal term. (D) The annual basic rent to be paid during each renewal term shall not be less than that paid for the Demised Premises during the last year of the original term of the Lease or the previous term, respectively. However, if the fair rental value per square foot at the commencement of each renewal term shall exceed the rent as established in the preceding sentence, the Lessee shall pay rent equal to ninety-five percent (95%) of the fair rental value. For purposes of Additional Rent during the renewal term pursuant to paragraph 23 of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental Year for an Option Term Operating Cost Escalations, fuel, Utilities and Electric Cost Escalation and Tax Escalation shall be the Fair Market Rental Ratecost incurred during the Lease Year commencing on June 1, 2008 and June 1, 2013, respectively. “Fair Market Rental Rate” In determining the fair rental value, the Lessor shall mean notify Lessee of the market fair rental rate for value as established by Lessor. Lessor shall furnish Lessee with a copy of the time period appraisal rendered to the Lessor. Should Lessee dispute Lessor's determination, then the Lessee shall be free to, at the Lessee's sole cost and expense, employ the services of an appraiser familiar with office buildings located within the Oradell, New Jersey area comparable to the Building, who shall be a member of MAI and who shall render an appraisal. If the Lessor and the Lessee's appraiser cannot agree on the fair rental value, or in such determination is being made for office space in same class case, on an independent appraiser acceptable to both, either party may request the American Arbitration Association of Bergen, New Jersey to appoint such independent appraiser who shall be a member of MAI familiar with office buildings in the area of Murfreesboro, Tennessee (the “Area”) Building and in such event the judgment of comparable condition for space a majority of equivalent quality, size, utility, the three appraisers shall be final and locationbinding upon the parties. Such determination The parties shall take into account all relevant factors, including, without limitationshare equally in the cost of any such independent appraiser. Pending resolution of the issue of fair rental value, the following matters: the credit standing Lessee shall pay Lessor as of Tenant; the length commencement of the first renewal term; , the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available basic rent as established by Lessor, subject to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value retroactive adjustment upon final determination of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termthis issue.

Appears in 1 contract

Sources: Lease Agreement (Call Points Inc)

Renewal Options. a. (a) Tenant shall have the right and option (hereinafter referred to as the "Renewal Options") to renew the Lease (“Renewal Option”) this lease for two (2) successive renewal periods terms of ten (10) years each on the terms and conditions hereinafter contained. Tenant shall exercise the applicable renewal option by sending written notice thereof (each of which notices is hereinafter referred to as a "Renewal Notice") to Landlord by certified mail, return receipt requested, on or before the day which shall be twelve (12) months next preceding last day of the original term of this lease or the last day of the first renewal term, as the case may be. If Tenant shall send a Renewal Notice within the time and in the manner hereinbefore provided, this Lease shall be deemed renewed for the applicable renewal term (hereinafter collectively referred to as the "Renewal Terms") upon the terms, covenants and conditions hereinafter contained. (b) The Renewal Terms, if any, shall be upon, and subject to, all of the terms, covenants and conditions provided in this Lease for the original term hereof, except that: (i) Any terms, covenants, or conditions hereof that are expressly or by their nature inapplicable to the Renewal Terms or either of them (including, without limitation, Articles 50, 51 and 52 hereof) shall not apply during the Renewal Terms; (ii) The annual fixed rent payable by Tenant during each Renewal Term (hereinafter referred to as the "Renewal Rent"), subject to adjustment as otherwise in this Lease provided, shall be an amount equal to the fair market rental value of the Demised Premises, to be determined as provided in Section 54(c) hereof and to be calculated as of the "Determination Date" (as defined in Section 54(c)) on the basis of a new ten (10) year letting of the Demised Premises; (c) In the event that Tenant shall exercise either or both renewal options as provided in Section 54 (a) hereof, the Renewal Rent for each renewal term shall be determined jointly by Landlord and Tenant, and such determination shall be confirmed in a writing (hereinafter referred to as a "Rental Agreement") to be executed by Landlord and Tenant not later than the day (hereinafter referred to as the "Determination Date") which shall be ninety (90) days next preceeding the expiration of the original term of this Lease or the expiration of the first renewal term as the case may be. In the event that Landlord and Tenant shall have failed to join in executing a Rental Agreement on or before the Determination Date because of their failure to agree upon the Renewal Rent then the Renewal Rent shall be determined by arbitration as follows: (i) Landlord and Tenant shall each appoint an arbitrator by written notice given to the other party hereto not later than thirty (30) days after the Determination Date. If either Landlord or Tenant shall have failed to appoint an arbitrator within such period of time and thereafter shall have failed to do so by written notice given within a period of five (5) years each days after notice by the other party requesting the appointment of such arbitrator, then such arbitrator shall be appointed by the American Arbitration Association or its successor (eachthe branch office of which is located in or closest to the Township of Roxbury, an “Option Term”); providedState of New Jersey, howeverupon request of either Landlord or Tenant, as the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; case may be; (ii) no The two (2) arbitrators appointed as above provided shall attempt to reach an agreement as to the Renewal Rent and in the event has occurred that upon they are unable to do so within thirty (30) days after their joint appointment, then they shall appoint a third (3rd) arbitrator by written notice or given to both Landlord and Tenant, and, if they fail to do so by written notice given within sixty (60) days after their appointment, such third (3rd) arbitrator shall be appointed as above provided for the passage appointment of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting arbitrator in the event either party fails to cure such event; and do so; (iii) Tenant is occupying the Premises. Following expiration All of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations such arbitrators shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.M.A.I.

Appears in 1 contract

Sources: Assignment, Acceptance of Assignment and Consent to Assignment of Lease (Clearview Cinema Group Inc)

Renewal Options. a. Tenant shall have (a) Lessor hereby grants to Lessee the right and option to renew extend the term of this Lease for the following periods (each, a "Renewal Option”Term"): (i) for a period of ten (10) years commencing on the date that is the day after the expiration of the Base Term and ending on the tenth (10th) anniversary of the expiration of the Base Term (the "First Renewal Term"); and (ii) for two additional terms of ten (2) successive renewal periods of five (510) years each (eachthe "Additional Renewal Terms"), an “Option Term”); provided, however, with each Additional Renewal Term commencing on the Renewal Option date that is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at day after the expiration of the current preceding Renewal Term; . (iib) no event has occurred that upon notice or In order to exercise its option to extend this Lease for any Renewal Term, the passage of time would constitute an Event of Default, unless Landlord has given following procedure shall be followed: Lessee shall give Lessor written notice of default and Tenant is diligently attempting its desire to cure such event; and discuss exercising an option to extend the term of this Lease not less than twenty (iii20) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days months prior to the expiration of the Base Term or the then current Renewal Term, as the case may be (a "Pre-Exercise Notice"). Lessee and Lessor shall promptly after Lessor's receipt of such Pre-Exercise Notice, for a period not in excess of sixty (60) days (the "Pre-Exercise Period"), attempt in good faith to agree to the Base Rent to be paid for the then applicable Renewal Term. If Tenant fails The Base Rent to give notice which the parties will attempt to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations agree shall be governed by the terms and conditions equal to 100% of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental RateValue anticipated to be in effect as of the commencement date of such Renewal Term. On or before the expiration of the Pre-Exercise Period, Lessee may serve Lessor with a notice confirming its intent to renew (the "Intent to Renew Notice"), time being of the essence. If Lessee fails to provide such notice, Lessee will be deemed to have waived its right to renew this Lease. If Lessee delivers its Intent to Renew Notice and the parties have agreed to the Fair Market Rental Rate” shall mean Value during the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitationPre-Exercise Period, the following matters: agreed rent shall become the credit standing Base Rent during the applicable Renewal Term. If Lessee delivers its Intent to Renew Notice but the parties were unable to agree on the Fair Market Rental Value during the Pre-Exercise Period, the Fair Market Rental Value shall be determined by the Appraisal Procedure. Base Rent during each Renewal Term shall be payable monthly in advance. (c) The right of Tenant; Lessee to extend the length term of this Lease for any Renewal Term is contingent upon there not being any Lease Event of Default in existence on the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value date of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes Lessee's exercise of such calculation, it will only be assumed right or on the date that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Renewal Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termcommences.

Appears in 1 contract

Sources: Lease Agreement (Txu Corp /Tx/)

Renewal Options. a. Landlord grants to Tenant shall have an option (the right and option "Renewal Option") to renew extend the term of the Lease (“Renewal Option”) for two (2) successive renewal periods of five (5) years each (each, an “"Option Term"). A. The Renewal Option shall apply to all space under the Lease and shall be on the following terms and conditions. 1. Written notice ("Renewal Notice") of exercise of any Renewal Option shall be given to Landlord no later than six (6) months prior to the expiration of either the Primary Lease Term, or first Option Term. If Tenant timely exercises a Renewal Option, the Lease shall be deemed extended, and thereafter the parties shall execute an amendment to the Lease setting forth the terms of the extension. 2. Unless Landlord is timely notified by Tenant in accordance with subparagraph (1) above, it shall be conclusively deemed that Tenant does not desire to exercise any Renewal Option, and the Lease shall expire in accordance with its terms, at the end of the Primary Lease Term, or the first Option Term. 3. Tenant's right to exercise a Renewal Option shall be conditioned upon Tenant not being in default beyond any applicable cure periods under the Lease at the time of the exercise of a Renewal Option or at the time of commencement of an Option Term. 4. The Renewal Options granted hereunder shall be upon the terms and conditions contained in the Lease, except the rental to be paid by Tenant for each of the Option Terms shall be the then current "Market Rate" for such periods for similar quality buildings in the competitive market but no less than the Base Rent for the Premises at the end of the Primary Lease Term, or the First Option Term. B. For the purposes of this paragraph 1, the term "Market Rate" shall mean an amount per rentable square foot per annum for the Premises which is representative of and comparable to the consideration then paid (as of the inception of either Term) for substantially equivalent lease transactions ("Comparable Transactions") for new or renewal leases which are executed within six (6) months of Tenant's exercise of either Renewal Option for substantially equivalent office space in the Westmoor Technology Park (" the Competitive Market") taking into account (i) the amount of space in the Premises; (ii) tenant improvement allowances, relocation allowances, free rent, landlord-paid brokerage commissions and other concessions required to attract new tenants or retain existing tenants; and (iii) the applicable base year or expense stop, if any, and as adjusted to reflect the applicable Base Year applicable to a Renewal Option, for operating expenses and real estate taxes; provided, however, the Renewal Option is contingent upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default any non arms length lease transactions entered into between landlords and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days prior to the expiration of the current Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings tenants in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments Competitive Market are then being made expressly excluded from consideration in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option TermMarket Rent.

Appears in 1 contract

Sources: Lease (Requisite Technology Inc /Co)

Renewal Options. a. If, immediately prior to the expiration of the initial term of this Lease, this Lease shall be in force and effect and provided that Tenant, not less than six (6) months prior to the expiration of such term, shall have given to Landlord written notice of Tenant's desire to renew this Lease, the giving of such notice by Tenant shall have the right and option be effective to renew this Lease and extend the Lease (“Renewal Option”) term hereof as to the Premises and, without the necessity for execution of any further instrument by either party, for an additional two (2) successive renewal periods lease terms of five (5) years each (each, an “Option Term”the "Renewal Term(s); provided, however") from and after the expiration of said initial term. If Tenant exercises such initial renewal option, the Renewal Option is contingent upon Tenant shall have the following: right to renew for another five (i5) there is not an Event of Default beyond all applicable cure period(syear period by giving notice six (6) at the time Tenant gives Landlord notice of Tenant’s intention months prior to exercise the Renewal Option or at the expiration of the current initial Renewal Term; (ii. The giving of this second notice shall also be effective to renew the Lease and further extend the term without the necessity for execution of any further instruments by either party. The Renewal Term(s) no event has occurred that upon notice or shall be on the passage of time would constitute an Event of Defaultsame covenants, unless Landlord has given notice of default agreements, terms, provisions and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying conditions as are contained herein for the Premises. Following expiration of the final Option Term allowable hereunder, initial term except Tenant shall have no further right to renew extend the term of this Lease pursuant after the second Renewal Term. Base Rent for each year during the entirety of such Renewal Term(s) on the premises shall, however, be at the "Renewal Rate" (as hereinafter defined). The "Renewal Rate" for purposes of calculating Base Rent payable during such Renewal Term(s) shall be the amount equal to 95% of the then prevailing Fair Market Rent. In no event shall the total rent during any year of any Renewal Term(s) be less than the total rent paid during the prior preceding year. Landlord and Tenant will negotiate in good faith to agree on such lease rent. Ninety (90) days preceding the date prescribed for exercise of any option to extend this Section 5. b. Lease, Landlord agrees to furnish to Tenant the proposed Renewal Rate for the appropriate Renewal Term. Tenant's Notice period shall be shortened day for day for each day Landlord fails to provide Tenant its proposed Renewal Rate. Tenant shall exercise approve or disapprove the Renewal Option Rate within 30 days after Tenant's receipt of Landlord's notice (Approval Period). If Tenant approves the Renewal Rate within the Approval Period (by giving Landlord notice at least one hundred eighty (180) days prior to Landlord), the expiration parties shall execute an agreement, in form reasonably satisfactory to both, modifying the Expiration Date, the Base Rent, the Monthly Installments of the current TermBase Rent and all other relevant matters. If Tenant fails to deliver the extension notice as required herein or fails to approve the Renewal Rate within the Approval Period (either by notice of disapproval or by failing to give notice to Landlord prior to the 180-day periodany such notice), then this option shall be void, Tenant shall forfeit have no further option to extend the Term and the Term shall terminate as provided in this Lease; provided, however, if Tenant disapproves the Renewal Option. If Rate, Tenant exercises can avoid termination of this option by giving Landlord notice (Appraisal Notice) within the Approval Period that Tenant elects to determine the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations Rate by appraisal. The appraisal shall be governed by the terms and conditions of the Lease, except made as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.follows:

Appears in 1 contract

Sources: Lease Agreement (Allegiant Travel CO)

Renewal Options. a. If there is no uncured Event of Default hereunder, Tenant shall have the right and option to renew the Term of this Lease (“Renewal Option”) for two (2) successive renewal additional periods of five (5) years each (each, an “Option Term”); provided, however, the Renewal Option is contingent upon the following: same terms, conditions and provisions applicable to the primary term of this Lease (iunless otherwise expressly provided herein), except that the annual Base Rental (which shall include a Riser Fee) there is not for each additional term of five (5) years shall equal the product of the number of square feet of rentable area then contained in the Leased Premises multiplied by an Event amount equal to the then prevailing market base rental rate (including market riser fee rate) per rentable square foot per annum charged for comparable space in comparable buildings and with comparable use in the central business district of Default beyond all applicable cure period(sDallas, Texas, as reasonably determined by Landlord (taking into account that the Base Operating Expenses Rate shall remain unchanged and Tenant pays for certain utilities and services directly as provided in this Lease). Tenant shall evidence its intent to exercise its right of renewal separately with respect to each renewal term by delivering to Landlord written notice ("Tenant's Renewal Notice") at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; (ii) no event has occurred that upon notice or the passage of time would constitute an Event of Default, unless Landlord has given notice of default and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying the Premises. Following expiration of the final Option Term allowable hereunder, Tenant shall have no further right 's desire to renew the Term of this Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice as aforesaid at least one hundred eighty six (1806) days months (but not more than twelve (12) months) prior to the expiration of the then current TermTerm of this Lease. If Within thirty (30) days following delivery of Tenant's Renewal Notice, Landlord shall deliver to Tenant fails to give a written notice to Landlord prior to ("Landlord's Notice") specifying the 180-day period, then Base Rental rate (including Riser Fee rate) per rentable square foot per annum for the applicable additional term of five (5) years. Tenant shall forfeit have thirty (30) days following delivery of Landlord's Notice in which to notify Landlord of Tenant's exercise of its rights to renew the Term hereof. Failure to notify Landlord within such period or to timely deliver Tenant's Renewal OptionNotice shall automatically extinguish Tenant's rights to renew. If Tenant exercises shall have no right to renew the Renewal Option, then during Term of this Lease following the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions expiration of the Lease, except as provided otherwise in this Section. Time is second renewal term of the essence in exercising the Renewal Optionfive (5) years detailed herein. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question). For purposes of such calculation, it will only be assumed that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Term.

Appears in 1 contract

Sources: Office Lease Agreement (Communication Telesystems International)

Renewal Options. a. Tenant At the end of the Base Lease Term and any Renewal Term (other than the fourth Floating Rate Renewal Term or any prior Floating Rate Renewal Term ending four years after the end of the Base Lease Term), so long as no Lease Event of Default or Lease Default (of the type described in Section 14.1 or 14.5) has occurred and is continuing, Lessee shall have the right and option to renew this Lease for a Renewal Term. In order to exercise the option to renew, Lessee shall notify Lessor thereof in writing not more than nine months nor less than six months prior to the commencement of the applicable Renewal Term (which notice shall be irrevocable and shall specify the length of such Renewal Term). Renewal Rent shall be payable in arrears for each Lease Period occurring during any Renewal Term. The Renewal Rent payable for any Floating Rate Renewal Term hereunder shall be the fair market rental value of the Aircraft (as defined below) calculated as of the commencement of such Renewal Option”) Term. Such fair market rental value shall be determined not later than three months prior to the commencement of such Renewal Term by mutual SALE AND LEASE AGREEMENT [N605SW] -54- 61 consent of Owner Participant and Lessee or, if they shall be unable so to agree, by three recognized independent aircraft appraisers, one chosen and paid for by Owner Participant, one chosen and paid for by Lessee and the third appraiser chosen by the mutual consent of the first two (2) successive renewal periods appraisers and paid for equally by Owner Participant and Lessee, the appraisals of five (5) years each (each, an “Option Term”)which three appraisers shall be averaged and such average shall be deemed to be the fair market rental value of the Aircraft for all purposes hereof; provided, however, that if the Renewal Option appraisal of one appraiser is contingent upon more disparate from the following: (i) there is not an Event average of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration three appraisals than each of the current Term; (ii) no event has occurred that upon notice or other two appraisals, then the passage appraisal of time would constitute an Event of Defaultsuch appraiser shall be excluded, unless Landlord has given notice of default the remaining appraisals shall be averaged and Tenant is diligently attempting such average shall be deemed to cure such event; and (iii) Tenant is occupying be the Premises. Following expiration fair market rental value of the final Option Term allowable hereunder, Tenant Aircraft for all purposes hereof. If either Owner Participant or Lessee shall have no further right fail to renew appoint an appraiser by the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty (180) days date which is two months prior to the expiration commencement of such Renewal Term or if such two appraisers cannot agree on the current amount of such appraisal and fail to appoint a third appraiser by the date which is one month before the commencement of such Renewal Term. If Tenant fails to give notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Term, Landlord and Tenant’s respective rights, duties and obligations shall be governed by the terms and conditions of the Lease, except as provided otherwise in this Section. Time is of the essence in exercising the Renewal Option. c. The Base Rental for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee either Owner Participant or Lessee may apply to any court having jurisdiction (the “Area”) of comparable condition for space of equivalent quality, size, utility, and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length courts referred to in Section 13(b) of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available Participation Agreement) to tenants comparable to Tenant in the Area (make such as moving expense allowance, free rent periods, and lease assumptions and take over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant’s cost), and whether adjustments are then being made in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof for the Option Term in question)appointment. For purposes of such calculationthis Section 18.1, it will only fair market rental value shall be assumed the cash rental obtainable in an arm's-length lease between an informed and willing lessee (under no compulsion to lease) and an informed and willing lessor (under no compulsion to lease) and shall be determined on the assumptions that Landlord is paying a representative of Tenant a brokerage commission in connection with the Option Term in question if Landlord Aircraft is in fact paying a brokerage commission the United States of America, available for use by Lessee, unencumbered by any renewal or purchase option contained in this Lease, in the return condition required by Section 5 of this Lease and otherwise in compliance with and subject to a representative the terms and requirements of Tenant this Lease. Stipulated Loss Value amounts that are payable during any such Renewal Term shall be calculated as of the date of commencement of such Renewal Term and shall be determined in connection the same manner referred to above based on the fair market sales value of the Aircraft on such date determined in accordance with the applicable Option TermSection 18.2(a).

Appears in 1 contract

Sources: Sale and Lease Agreement (Southwest Airlines Co)

Renewal Options. a. Tenant shall have (a) Tenant, at its option, may, if it has not committed an uncured Event of Default (as defined in Article 21), either at the right and option time it gives its notice hereunder to renew Landlord or at the time of commencement of the respective extended term, extend the Term of this Lease (“Renewal Option”) for the Project for up to two (2) successive renewal periods of additional five (5) years year terms. Notwithstanding anything in this Lease to the contrary, if the Term of this Lease, as extended by the provisions of this Section 4.02 or Section 25.03(e), shall exceed twenty (20) years, Base Rent payable for each year of this Lease beyond such twenty (each20) year period shall increase by two percent (2%) per annum. A schedule of Base Rent per square foot of Rentable Area for the maximum permissible Term of this Lease, an “Option Term”); providedincluding periods beyond such twenty (20) year period, however, the Renewal Option is contingent attached hereto as Exhibit "H." This Lease shall be extended effective upon the following: (i) there is not an Event of Default beyond all applicable cure period(s) at the time Tenant gives Landlord notice of Tenant’s intention to exercise the Renewal Option or at the expiration of the current Term; previous respective term, and (ii) no event has occurred Landlord's receipt of written verification that upon notice or the passage Guarantor agrees to the exercise of time would constitute an Event of Default, unless Landlord has given notice of default such renewal options and Tenant is diligently attempting to cure such event; and (iii) Tenant is occupying that the Premises. Following expiration Guarantor shall guarantee the obligations of the final Option Term allowable hereunder, Tenant shall have no further right to renew the Lease pursuant to this Section 5. b. Tenant shall exercise the Renewal Option by giving Landlord notice at least one hundred eighty with respect thereto. Within thirty (18030) days prior to after the expiration receipt by Landlord of the current Term. If Tenant fails to give Tenant's notice to Landlord prior to the 180-day period, then Tenant shall forfeit the Renewal Option. If Tenant exercises the Renewal Option, then during the Option Termand Guarantor's verification, Landlord and Tenant’s respective rightsTenant covenant that they shall execute an agreement memorializing the exercise of the First Renewal Term or Second Renewal Term. The first such extended term (the "FIRST RENEWAL TERM") shall commence upon the expiration date of the initial term of this Lease, duties expire upon the fifth (5th) anniversary of said date, and obligations shall be governed by upon the terms same terms, covenants and conditions of as provided in this Lease for the Leaseinitial term, except as provided otherwise in this Section. Time is of that the essence in exercising Base Rent payable during the First Renewal Option. c. The Base Rental Term for an Option Term shall be the Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the market rental rate for the time period such determination is being made for office space in same class office buildings in the area of Murfreesboro, Tennessee (the “Area”) of comparable condition for space of equivalent quality, size, utility, Phase I and location. Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the Area (such as moving expense allowance, free rent periods, and lease assumptions and take over provisionseach Project Expansion, if any, but specifically excluding shall be calculated in accordance with Exhibit "H." as modified by Section 5.01 (c) and Article 25. The second such extended term (the value of improvements installed in the Premises at Tenant’s cost"SECOND RENEWAL TERM"), if exercised by Tenant and whether adjustments are then being made conditioned upon Tenant's exercise of its first option to extend, shall commence upon the expiration date of the First Renewal Term of this Lease and expire upon the fifth (5th) anniversary of said date, and be upon the same terms, covenants and conditions as provided in determining the rental rates for renewals in the Area because of concessions being offered by Landlord to Tenant (or the lack thereof this Lease for the Option initial term, except that the Base Rent payable during the Second Renewal Term for Phase I and each Project Expansion, if any, shall be calculated in question)accordance with Exhibit "H." as modified by Section 5.01(c)and Article 25. (b) In order to exercise such renewal options, Tenant shall advise Landlord in writing at least twelve (12) months prior to the end of the initial term, or First Renewal Term, as the case may be, that Tenant intends to exercise its option to renew this Lease. (c) Payment of all Additional Rent and other payments required to be made by Tenant as provided in this Lease for the initial term shall continue to be made during such extended term. For purposes Any termination of such calculation, it will only be assumed that Landlord is paying a representative this Lease during the initial term shall terminate all rights of Tenant a brokerage commission in connection with the Option Term in question if Landlord is in fact paying a brokerage commission to a representative of Tenant in connection with the applicable Option Termextension hereunder.

Appears in 1 contract

Sources: Office Lease Agreement (Intuit Inc)