Third Extension Option Clause Samples
The Third Extension Option clause grants a party the right to extend the term of an agreement for a third, additional period beyond the original and any prior extension terms. Typically, this clause outlines the conditions under which the extension can be exercised, such as providing written notice within a specified timeframe and possibly agreeing to new or predetermined terms for the extension period. Its core practical function is to provide flexibility and continuity for the parties, allowing them to maintain their contractual relationship without renegotiating a new agreement, thereby reducing uncertainty and administrative burden.
Third Extension Option. Provided Borrower has properly exercised the First Extension Option and the Second Extension Option, Borrower shall have the right to extend the Second Extended Maturity Date to the Third Extended Maturity Date (the “Third Extension Option”; and the period commencing on the Second Extended Maturity Date and ending on the Third Extended Maturity Date being referred to herein as the “Third Extension Term”), provided that all of the following requirements are satisfied:
(a) Borrower delivers written irrevocable notice to Lender not more than ninety (90) days and not less than thirty (30) days prior to the Second Extended Maturity Date advising that Borrower is exercising the Third Extension Option;
(b) No Default, Mezzanine Default, Event of Default or Mezzanine Event of Default exists as of the date Borrower exercises the Third Extension Option and as of the commencement date of the Third Extension Term;
(c) If the Interest Rate Cap Agreement is scheduled to mature prior to the Third Extended Maturity Date, Borrower shall obtain, deliver and assign the benefits thereof to Lender not later than one (1) Business Day immediately preceding the first day of the Third Extension Term, one or more Replacement Interest Rate Cap Agreements from an Acceptable Counterparty, which Replacement Interest Rate Cap Agreement shall (i) be effective commencing on the first day of the Third Extension Term, (ii) have a LIBOR strike price equal to the applicable Strike Price, and (iii) have a maturity date not earlier than the Third Extended Maturity Date;
(d) Borrower shall have extended the term of the Mezzanine Loan to a maturity date not earlier than the Third Extended Maturity Date in accordance with the terms of the Mezzanine Loan Agreement;
(e) Borrower executes and delivers to Lender an amendment to this Agreement, reasonably acceptable to Lender in all respects, which confirms the date to which the Second Extended Maturity Date has been extended (without any other amendments or confirmations); and
(f) Borrower reimburses Lender for all costs and expenses reasonably incurred by Lender in processing the extension request, including, without limitation, reasonable legal fees and expenses.
Third Extension Option. Rate Per Sq. Ft. Annual Rent Monthly Installment Year 10 $28.70 $578,046.70 $48,170.56 Year 11 $29.27 $589,527.07 $49,127.26
Third Extension Option. (i) This paragraph (c) shall only apply if the Company has exercised the First Extension Option and the Second Extension Option and there is not less than one Second Extension Consenting Lender.
(ii) The Company may, by notice to the Facility Agent no earlier than 60 days and no later than 30 days prior to the third anniversary of the date of the Agreement (the date of the Facility Agent’s receipt of the notice being the “Third Extension Notice Date”), request that the Lenders consent to the extension of the Termination Date to the seventh anniversary of the date of the Agreement (the “Third Extended Termination Date”) (the “Third Extension Option”).
Third Extension Option. In the event that Borrower exercises the extension option for the Second Extension Term, Borrower shall have the right to further extend the Maturity Date to July 9, 2009 (the period commencing on the first (1st) day following the Second Extension Term and ending on July 9, 2009 being referred to herein as the “Third Extension Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the Second Extension Term; (b) the Interest Rate Cap shall be in effect as of the date of the Commencement of the Third Extension Term (the “Third Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the Third Extension Term or on the Third Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default.
Third Extension Option