Second Termination Right Sample Clauses
The Second Termination Right clause grants a party an additional opportunity to terminate an agreement under specified circumstances, separate from any initial termination rights. Typically, this clause outlines the conditions or events that must occur for the second right to be exercised, such as a repeated breach or failure to meet certain milestones after an initial cure period. Its core practical function is to provide a structured mechanism for ending the contract if issues persist, thereby protecting parties from ongoing non-performance or unresolved disputes.
Second Termination Right. Subject to the provisions of this Section 41(b), if Tenant has exercised its Expansion Right under Section 39(a), Tenant shall have the right to terminate this Lease (“Second Termination Right”) upon the expiration of the 36th month following the ES Commencement Date (“STR Termination Date”); provided, however, that Tenant delivers to Landlord (i) written notice (“STR Termination Notice”) of its election to exercise its Second Termination Right on or before the expiration of the 27th month following the ES Commencement Date (“STR Notice Delivery Date”), along with (A) an STR Letter of Intent (as defined below) or (B) evidence reasonably satisfactory to Landlord of a Change In Control, and (ii) concurrent with Tenant’s delivery to Landlord of the STR Termination Notice, a termination payment in an amount equal to 6 months of Base Rent at the rate of Base Rent payable by Tenant at the time Tenant delivers the STR Termination Notice to Landlord (the “STR Early Termination Payment”). As used herein, “STR Letter of Intent” shall mean a fully executed letter of intent reflecting the contemplated lease by Tenant of no less than 46,640 rentable square feet of substantially similar type space as is provided for under this Lease at another building in the San Diego area (“STR Alternative Space”) for a term of no less than 18 months (“STR Minimum Term”). Notwithstanding anything to the contrary contained herein, Tenant shall only have the right to exercise the Second Termination Right pursuant to Section 41(b)(i)(A) if (1) the Premises contains fewer that 46,640 rentable square feet, and (2) Tenant delivered a written notice (“STR Additional Space Notice”) to Landlord no later than the expiration of the 23rd month following the ES Commencement Date reflecting Tenant’s desire to expand the Premises by no less than 10,000 rentable square feet of space in the Building (“STR Additional Space”). If Tenant delivers an STR Additional Space Notice as provided for in the immediately preceding sentence, Landlord shall, on or before the date that is 30 days after Landlord’s receipt of the STR Additional Space Notice (“STR AS Notice Expiration Date”), notify Tenant in writing whether STR Additional Space will be available for lease by Tenant on or before the STR Termination Date (“STR Availability Notice”). In no event shall Tenant have the right to exercise its Second Termination Right pursuant to Section 41 (b)(i)(A) if, on or before the STR AS Notice Expiration Date, Landlord...
Second Termination Right. Provided Tenant has exercised its right to terminate the Lease in accordance with Section 11.1 above, Tenant shall have the right to terminate the Lease during the First Renewal Term effective on July 31, 2021, provided that (i) Tenant gives Landlord at least twelve (12) months prior written notice of its intent to terminate the Lease, (ii) prior to the effective date of termination, there has been a “change in control” event whereby (A) more than fifty percent (50%) of the voting stock of Tenant has been acquired by any individual or entity (other than employees or shareholders of Tenant) or (B) a sale of substantially all of Tenant’s assets has occurred, (iii) there is no outstanding Event of Default beyond all applicable cure periods at the time that Tenant notifies Landlord of its intent to terminate the Lease or as of the date of termination, and (iv) on or before the effective date of termination, Tenant pays to Landlord a termination fee in the amount equal to the sum of (x) the unamortized amount of the Allowance paid by Landlord, at Landlord’s expense, in accordance with the provisions of Section 2 of this Amendment applying an interest rate of eight and one-half percent (8.5%) per annum, (y) unamortized amount of the brokerage commissions payable in accordance with Section 15 of this Amendment, applying an interest rate of eight and one-half percent (8.5%) per annum and (z) an amount equal to six (6) Monthly Installments of Annual Base Rent in effect as of the date of termination. If Tenant fails to exercise its termination rights strictly in accordance with the foregoing provision, the Lease shall remain in full force and effect and Tenant shall have no further right to terminate the Lease.