Common use of Extension Option Clause in Contracts

Extension Option. Tenant may extend the Term as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:

Appears in 1 contract

Samples: Lease Agreement (Ciena Corp)

AutoNDA by SimpleDocs

Extension Option. (a) Provided that this Lease is then in full force and effect and further provided that Tenant may extend the Term as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 yearsis not then in default, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before beyond the expiration of any applicable grace periods, under any of the terms, covenants or conditions of the Lease on Tenant's part to be observed or performed, Tenant shall have one option to extend this Lease and the Lease Term for an extended term (the "Extension Term. The Basic Rent payable for each month during such extended ") of five (5) years commencing on the date next following the last day of the original Lease Term shall be and ending, unless sooner terminated pursuant to the then current prevailing net effective rental rate at terms, covenants or conditions of the Lease or pursuant to law, on the day immediately preceding the fifth (5th) anniversary of the commencement date of the Extension Term. Said option to be exercisable only by written notice given by Tenant to Landlord at least nine (9) months prior to the last day of the original Lease Term. If Tenant exercises such option in accordance with the provisions and limitations of this Paragraph 33, this Lease and the Lease Term shall be extended for such term upon all of the then applicable terms, covenants and conditions contained in this Lease, except that the Base Rent for the entire Extension Term shall be at an annual rate determined as set forth below, it being understood that such Base Rent shall be payable in equal monthly installments, in advance, just as in the case of the original Lease Term, . The Base Rent for extensions the Extension Term shall be at the greater of space (i) the Base Rent in buildings effect at the end of the original Lease Term or (including the Buildings and related complexii) ninety-five percent (95%) of equivalent qualitythe Market Rent, size, utility and location within to be determined as follows: Landlord shall provide Tenant with Landlord's written designation of what it believes to be the former City of Kanata submarket, with the length fair market rental value of the extended Premises for the Extension Term taking into consideration other similar industrial buildings in the Building's competitive submarket as defined by local commercial real estate brokerage firms, and considering all applicable economic terms and concessions (hereinafter, the credit standing of Tenant and the guarantee of the Guarantor "Market Rent"), such written designation to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies sent to Tenant within thirty (such as cash allowances, free rent, landlord’s works30) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt by Landlord of notice of Tenant’s notice 's exercise of its option with respect to extend, Landlord shall deliver to the Extension Term. If Tenant written notice disagrees with Landlord's designation of the Prevailing Rental Rate Market Rent and all other applicable terms and shall advise Tenant of if the required adjustment parties are otherwise unable to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, agree within 15 business twenty (20) days after receipt of Landlord’s 's designation, then Tenant may initiate the following arbitration process to determine the Market Rent by sending written notice and all supporting documentation and information relating thereto, notify thereof to the Landlord in writing whether Tenant accepts or rejects Landlord’s determination within fourteen (14) days after the expiration of the Prevailing Rental Ratesuch twenty (20) day period. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice fails to initiate this arbitration process as aforesaid, time being of the Prevailing Rental Rate together with all supporting information relating thereto essence, then Landlord's designation of Market Rent (as aforesaidset forth in Landlord's notice) that Tenant accepts Landlord’s determination shall be conclusive. In order to be effective, Tenant's notice to Landlord initiating the arbitration process shall specify the name and address of the Prevailing Rental Rateperson designated to act as an arbitrator on its behalf. Within fourteen (14) days after the designation of Tenant's arbitrator, thenLandlord shall give notice to Tenant specifying the name and address of the person designated to act as an arbitrator on its behalf. If Landlord fails to notify Tenant of the appointment of its arbitrator within the time above specified, then the appointment of the second arbitrator shall be made in the same manner as hereinafter provided for the appointment of a third arbitrator in a case where two arbitrators are appointed hereunder and the parties are unable to agree upon such appointment. The two arbitrators so chosen shall meet within ten (10) days after the second arbitrator is appointed, and if, within fifteen (15) days after the second arbitrator is appointed, the two arbitrators shall not agree upon a determination, they shall together appoint a third arbitrator. In the event of their being unable to agree upon such appointment within fifteen (15) days after the appointment of the second arbitrator, the third arbitrator shall be selected by the parties themselves if they can agree thereon within a further period of fifteen (15) days. If the parties do not so agree, then either party, on behalf of both and on notice to the other, may request such appointment by the American Arbitration Association (or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided any organization successor thereto) in this Lease, except as follows:accordance with its rules then prevailing.

Appears in 1 contract

Samples: Lease Agreement (Haights Cross Communications Inc)

Extension Option. Tenant may extend the New Lease Term as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 term (the “Extended New Lease Term”) for five (5) years, which extension may be exercised by delivering written Tenant by giving notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, its election to extend to Landlord not earlier than 24 at least twelve (12) months nor later than 21 months before prior to the expiration of the New Lease Term. The Basic Rent payable Base Rental Rate for each month during such extended Term extension shall be the then current prevailing net Market Rental Rate (defined below) for the Extended New Lease Term. For purposes of this Section 12, “Market Rental Rate” shall mean the annual effective rental rate at the commencement date per square foot of Rentable Floor Area of the extended Term, for extensions Reduced Leased Premises then being charged by landlords under new leases of office space in buildings the metropolitan Madison, Wisconsin market for space similar to the Reduced Leased Premises in a building of comparable quality and with comparable parking and other amenities. In determining the Market Rental Rate, Landlord and Tenant (including and any appraisers, if applicable) shall take into account the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length fact that Tenant shall pay Tenant’s share of the extended Term annual Operating Expenses. Also, in determining the Market Rental Rate, Landlord and Tenant (and any appraisers, if applicable) shall compare actual rental rates only (after making appropriate adjustments resulting from the credit standing of Tenant foregoing facts) and the guarantee of the Guarantor to be taken shall take into accountconsideration any discounts, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s worksremodeling credits, construction allowances and other concessions and inducements granted by other landlords. If Landlord and Tenant cannot agree on the amount of such Market Rental Rate within thirty (30) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice Tenant exercises the option to extend, Landlord shall deliver to Tenant written notice of extend the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended New Lease Term, Landlord and Tenant agree that the determination of the Market Rental Rate for the Extended New Lease Term shall execute be made in accordance with the following procedure. Landlord and Tenant shall each appoint one (1) appraiser within nine (9) business days after the thirty (30) day period referred to in the preceding sentence. Those two (2) appraisers shall promptly appoint a third (3rd) appraiser. Each appraiser appointed hereunder shall be a member of the American Institute of Real Estate Appraisers (or successor organization) having at least ten (10) years experience in appraisal of office buildings and office rental rates in the metropolitan Madison, Wisconsin area. If such appraisers fail to appoint such third (3rd) appraiser within ten (10) business days after notice of their appointment, then either Landlord or Tenant, upon written notice to the other, may request the appointment of a third (3rd) appraiser by the then President of the Board of Realtors in the Madison, Wisconsin area or any then similar existing body. Each appraiser so appointed shall independently make appraisals of the Market Rental Rate of the Leased Premises. Except as hereinafter provided, the Market Rental Rate of the Reduced Leased Premises for the Extended New Lease Term shall be the average of the three (3) appraisals of the Market Rental Rate; provided, however, if the determination of the Market Rental Rate of one (1) appraiser is disparate from the median of all three (3) determinations of Market Rental Rate by more than twice the amount by which the other determination is disparate from the median, then the determination of such appraiser shall be excluded, the remaining two (2) determinations shall be averaged and such average shall be binding and conclusive on Landlord and Tenant. If, after notice by either Landlord or Tenant of the appointment of an amendment appraiser by the party giving such notice, the other party to whom such notice is given shall fail, within a period of ten (10) business days after such notice, to appoint an appraiser, then the appraiser so appointed by the party giving notice shall have the power to proceed as sole appraiser to determine the Market Rental Rate of the Reduced Leased Premises. Landlord shall pay the fees and expenses of the person appointed by Landlord as an appraiser hereunder, and Tenant shall pay the fees and expenses of the person appointed by Tenant as an appraiser hereunder. Landlord and Tenant shall each pay one-half (1/2) of the fees and expenses of the third (3rd) appraiser appointed pursuant to the provisions of this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:Section.

Appears in 1 contract

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

Extension Option. Landlord hereby grants to Tenant may an option to extend the Lease Term for two (2) periods of five (5) years each (each an "Extension Period"). The first Extension Period shall commence on the day following the initial Lease Term ("First Extension Commencement Date") and shall expire on the day preceding the 5th anniversary of the First Extension Commencement Date ("First Extension Expiration Date"), unless sooner terminated in accordance with the terms and provisions of the Lease. The second Extension Period shall commence on the day following the First Extension Expiration Date ("Second Extension Commencement Date") and shall expire on the day preceding the 5th anniversary of the Second Extension Commencement Date, unless sooner terminated in accordance with the terms and provisions of the Lease. Each of the Extension Periods shall be upon the same terms, covenants, and conditions as set forth in the Lease with respect to the entirety of either or both initial Lease Term, except that Base Rent payable during each of the Buildings Extension Periods shall be equal to the Fair Market Rental Rate (as more fully described defined below) for one additional period lease terms commencing on or about the applicable Extension Commencement Date, as reasonably determined by Landlord. Notwithstanding anything contained herein to the contrary, in no event shall (i) the annual rate of 10 yearsBase Rent for the first Extension Period be less than the annual rate of Base Rent under the Lease immediately prior to the First Extension Commencement Date or (ii) the annual rate of Base Rent for the second Extension Period be less than the annual rate of Base Rent under the Lease immediately prior to the Second Extension Commencement Date. Tenant shall be required to pay Tenant's Pro Rata Share of Basic Costs and Taxes during each Extension Period, by delivering if Tenant has elected to extend the Lease Term. If Tenant desires to exercise either option to extend, Tenant shall deliver a written notice (the "Extension Period Rental Rate Request") to Landlord requesting that Landlord advise Tenant in writing of Landlord's determination of the exercise thereof, including an acknowledgment by Fair Market Rental Rate for the Guarantor that the obligations of Tenant during the extended Term applicable Extension Period. The Extension Period Rental Rate Request shall be included as part of the obligations guaranteed delivered by Guarantor under the Guarantee, to Landlord not Tenant no earlier than 24 twelve (12) months nor later than 21 months before prior to the expiration of the Terminitial Lease Term or the first Extension Period, as the case may be, and no later than six (6) months prior to the end of the initial Lease Term or the first Extension Period, as the case may be, time being of the essence. The Basic Rent payable Landlord shall, in response to such request by Tenant, notify Tenant in writing of the rental rate for each month during the applicable Extension Period (the "Extension Period Rental Rate"), no later than five (5) months prior to the expiration of the initial Lease Term on the First Extension Period, as the case may be. If Tenant desires to extend the Lease Term for the applicable Extension Period, at the applicable Extension Period Rental Rate, Tenant shall deliver written notice ("Extension Notice") to Landlord to such extended effect no later than six (6) months prior to the expiration of the initial Lease Term or the first Extension Period, as the case may be, time being of the essence. If not so exercised, Tenant's option to extend shall thereupon automatically expire. Once Tenant delivers the Extension Notice to the Landlord, as provided above, Tenant's election to extend the Lease Term shall be the then current prevailing net effective rental rate irrevocable by Tenant. Unless Landlord, in its sole and absolute discretion, otherwise agrees in writing, Tenant may only exercise its option to extend and an exercise thereof shall only be effective, if at the commencement date time of Tenant's exercise of the extended Termoption and on the applicable Extension Commencement Date, the Lease is in full force and effect and no uncured default by Tenant under the Lease shall then exist, and, inasmuch as the option is intended only for extensions of space the original Tenant named in buildings (including the Buildings and related complex) of equivalent qualityLease, size, utility and location within Tenant has not assigned the former City of Kanata submarket, with the length Lease or sublet any portion of the extended Term and Premises. Upon the credit standing valid exercise by Tenant of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice an option to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment promptly enter into a written supplement to the Lease confirming the terms, conditions and provisions applicable to the applicable Extension Period, as determined in accordance with the provisions of this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:Section.

Appears in 1 contract

Samples: Lease (MRS Fields Financing Co Inc)

Extension Option. Tenant may shall have the option to extend the Term as to the entirety of either or both of the Buildings (as more fully described below) for one (1) additional period of 10 yearsfive (5) year extension term (the “Extension Term”) by notice given to Landlord at least twelve (12) months before the Term Expiration Date. Tenant’s election shall be exercised, by delivering written notice of and Annual Fixed Rent for the Extension Term determined, as set forth below. If Tenant fails timely to exercise thereofits option for the Extension Term, including an acknowledgment by Tenant shall have no further extension rights hereunder. Tenant’s option so to extend the Guarantor that the obligations of Tenant during the extended Term shall be included as part void, at Landlord’s election, if Tenant is in default (subject to any applicable notice and cure periods set forth in this Lease) at the time Tenant elects to extend the Term or at the time the Term would expire but for such extension. The extension of the obligations guaranteed Term shall be applicable to the entire Premises and Tenant shall have no right to extend the Term for only a portion of the Premises. During the Extension Term, if any, all provisions of this Lease shall apply except that Tenant shall have no further option to extend the Term after the Extension Term. During the Extension Term, Tenant shall pay Annual Fixed Rent equal to the greater of (y) the then prevailing market rate for renewals of first class mixed use office buildings (specifically excluding consideration of rents attributable to space which is not office space) in the greater Waltham/Lexington market comparable to the Premises in terms of location within a building, finish (excluding any finishes not provided by Guarantor Landlord but including finishes made using the Improvement Allowance), age, building quality and amenities for a tenant of equal size and financial strength as Tenant, under terms and conditions substantially the Guaranteesame as those of this Lease as though then available for occupancy for the Permitted Uses (or any higher and better use then being made by Tenant) in “as-is” condition or such better condition in which Tenant is required to maintain the Premises (the “Fair Market Rent”), or (z) $55.00 per rentable square foot. Landlord shall notify Tenant of its estimate of the Fair Market Rent within ten (10) days after Tenant exercises the extension option; provided, however, in no event shall Landlord be obligated to Landlord not earlier provide Tenant with its estimate of the Fair Market Rent more than 24 twelve (12) months nor later than 21 months before prior to the expiration of the then current Term. The Basic Rent payable for each month during such extended Term Tenant shall be have the then current prevailing net effective rental rate at the commencement date option to accept or reject by written notice Landlord’s estimate, or to withdraw its exercise of the extended Termextension option, for extensions of space in buildings any case within fifteen (including the Buildings and related complex15) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt Business Days following delivery of Landlord’s notice and all supporting documentation and information relating thereto, notify estimate or within twenty-five (25) Business Days after Tenant exercises the extension option if Landlord in writing whether does not provide Landlord’s estimate within such ten (10) day period. Failure to respond within such period shall be deemed a rejection of Landlord’s estimate. In the event Tenant accepts or rejects Landlord’s determination of estimate then the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of Fair Market Rent shall be arbitrated in accordance with the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:following procedure.

Appears in 1 contract

Samples: Pegasystems Inc

Extension Option. Provided that as of the date of the notice specified below, Tenant may is not in default and has not previously been in default of its obligations under this Lease beyond any applicable grace period, Tenant shall have the right to extend the Term as to the entirety term of either or both of the Buildings (as more fully described below) this Lease for one additional period of 10 five (5) years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before begin immediately upon the expiration of the Termoriginal term of this Lease (the “extended term”). The Basic Rent payable for each month during All of the terms, covenants and provisions of this Lease shall apply to such extended Term term except that the Annual Fixed Rent Rate for such extension period shall be the then current prevailing net effective rental market rate at the commencement date of such extended term, as determined in accordance with the procedure set forth in the next paragraph below. If Tenant shall elect to exercise the aforesaid option, it shall do so by giving Landlord notice in writing of its intention to do so not later than one (1) year prior to the expiration of the original term of this Lease. If Tenant gives such notice, the extension of this Lease shall be automatically effected without the execution of any additional documents, subject to the parties’ agreement on market rate as set forth below. The original term and the extended Termterm are hereinafter collectively called the “term”. If Tenant exercises the aforesaid option, for extensions of space in buildings then not later than eleven (including 11) months prior to the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length expiration of the extended Term original term of this Lease Landlord shalt give written notice to Tenant of Landlord’s designation of the market rate. Within fifteen (15) days following Landlord’s notice, Tenant shall either propose its designation of the market rate by giving notice thereof to Landlord or shall accept Landlord’s designation. Failure on the part of Tenant to give such notice of its designation shall bind Tenant to Landlord’s designation. If Tenant proposes its designation of the market rate, then Landlord and Tenant shall attempt to agree upon a market rate. If the parties have been unable to reach agreement within thirty (30) days following Tenant’s designation, then the market rate may be submitted to arbitration by either party as follows: market rate shall be determined by impartial arbitrators, one to be chosen by the Landlord, one to be chosen by Tenant, and a third to be selected, if necessary, as below provided. The unanimous written decision of the two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall each notify the other of its chosen arbitrator within ten (10) days following the call for arbitration and, unless such two arbitrators shall have reached a unanimous decision within thirty (30) days after their designation, they shall so notify the then President of the Boston Bar Association and request him to select an impartial third arbitrator, who shall be another office building owner, a real estate counselor or a broker dealing with like types of properties, to determine market rate as herein defined. Such third arbitrator and the credit standing first two chosen shall hear the parties and their evidence and render their decision within thirty (30) days following the conclusion of such hearing and notify Landlord and Tenant thereof. Landlord and Tenant shall share equally the guarantee expense of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies third arbitrator (such as cash allowances, free rent, landlord’s works) so if any). If the dispute between the parties as to achieve current net effective a market rental rates with periodic increases in Basic rate has not been resolved before the commencement of Tenant’s obligation to pay Fixed Rent (based upon such market rate, then Tenant shall pay Fixed Rent under the “Prevailing Rental Rate”) multiplied Lease based upon the market rate designated by 95%Landlord until either the agreement of the parties as to the market rate, or the decision of the arbitrators, as the case may be, at which time Tenant shall pay any underpayment of Fixed Rent to Landlord, or Landlord shall refund any overpayment of Fixed Rent to Tenant. In no any event, however, shall the Basic Annual Fixed Rent in Rate for the extended Term term shall not be less than the Basic Annual Fixed Rent rate per rentable square foot Rate in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice prior to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the such extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:term.

Appears in 1 contract

Samples: Infraredx Inc

Extension Option. Tenant may shall have the right and option to extend the Term as to the entirety of either or both of the Buildings (as more fully described below) this Lease for one additional (1) consecutive period of 10 yearsfour (4) years under the same terms and conditions as stated in the Lease (“Extension Option”), by delivering written notice of with the exercise thereof, including an acknowledgment by the Guarantor exceptions that the obligations of Tenant during the extended Term (a) no further extension options shall exist and (b) monthly rental for such extension term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be based on the then current prevailing net effective market rental rate at as determined by Landlord in good faith based on then recent lease extensions within the commencement date Building and in surrounding buildings of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent comparable quality, size, utility condition and age for space approximately the same size and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent comparable buildings in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term Austin marketplace and taking into consideration any allowances and concessions offered with such rental, Tenant’s use and financial strength and other relevant factors (the Minimum Renewal Market Rental Rate”). Within 30 Tenant may reject the Extension Option granted herein within ten (10) days after receipt of Tenant’s notice to extend, Landlord shall deliver following delivery to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Market Rental RateRate (“Rate Notice”). The Extension Option shall be exercisable by Tenant, if at all, only by timely delivery to Landlord of written notice of election at least six (6) months prior to the expiration of the then current Lease Term, but no earlier than nine (9) months prior to the expiration of the then current Lease Term. The option herein granted shall be deemed to be personal to Tenant, and if Tenant subleases any portion of the Premises or otherwise assigns or transfers any interest thereof to another party (other than a Permitted Transfer), such option shall lapse. In the event that Tenant is then in default of any term or condition at the time of its exercise notice beyond any applicable notice, cure or grace period, then there shall be no extension of this Lease as provided herein. If Tenant timely notifies Landlord desires to continue with the extension, but objects to the Market Rental Rate determined by Landlord, then Tenant must object to the same within said ten (within 15 10) business day period. No later than five (5) business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Termthereafter, Landlord and Tenant shall execute meet in an amendment effort to this Lease extending negotiate, in good faith, the Term on Market Rental Rate applicable to the same terms Premises. If Landlord and conditions provided Tenant have not agreed upon the Market Rental Rate applicable to the Premises within five (5) business days after meeting, then Landlord and Tenant shall each appoint a broker not later than forty-five (45) days following Landlord’s delivery of the Rate Notice. If Landlord’s broker and Tenant’s broker have failed to agree upon the Market Rental Rate within sixty (60) days following delivery of the Rate Notice, the two appointed brokers shall appoint a third broker (within five (5) business days following the expiration of said sixty (60) day period), and the Market Rental Rate shall be the arithmetic average of two (2) of the three (3) determinations which are the closest in this Leaseamount, except and the third determination shall be disregarded. If either Landlord or Tenant fails to appoint a broker within the prescribed time period, the failing party shall pay to the other party as follows:liquidated damages $100.00 per day for each day following the deadline that such party fails to appoint a broker, not to exceed a total of $500.00. If the two (2) appointed brokers fail to agree upon a third (3rd) broker, then the parties shall have the local office of the American Arbitration Association appoint the third (3rd) broker and the parties shall share equally in the cost of such arbitration. Each party shall bear the costs of its own broker, and the parties shall share equally the cost of the third broker, if applicable. Each broker shall have at least ten (10) years’ experience in the leasing of similar commercial buildings in the submarket in which the Building is located and shall be a licensed real estate broker.

Appears in 1 contract

Samples: Lease Agreement (Everspin Technologies Inc)

Extension Option. Provided this Lease is in full force and effect and Tenant may extend the Term as to the entirety is not then in Default under any term or condition of either or both this Lease, and provided further that Tenant is occupying substantially all of the Buildings Premises as set forth herein, Tenant shall have the options (as more fully described below) for one additional period of 10 yearseach, by delivering written notice of the exercise thereofan “Extension Option”), including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before at the expiration of the Term. The Basic initial Term or Extension Period, as the case may be, to extend the Term for up to two (2) consecutive periods of five (5) years each (each, an “Extension Period”), such extensions to be on the same terms, covenants and conditions as are herein contained, except that the Base Rent payable for during the first (1st) year of each month during such extended Term Extension Period shall be ninety-seven percent (97%) of Fair Market Rental Value, as defined below, with three percent (3%) annual escalations each year thereafter for the then current prevailing net effective rental rate balance of such Extension Period. In order to validly exercise an Extension Option, Tenant must provide written notice to Landlord of Tenant’s intent to exercise the Extension Option at least nine (9) months, but not more than twelve (12) months, prior to the commencement date expiration of the initial Term or Extension Period, as applicable. Without further instrument, lease or agreement, the Term of this Lease shall be so extended Term, for extensions of space in buildings (including upon the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords giving of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied written notice by 95%. In no eventTenant; provided, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”)Tenant agrees to execute such reasonable documentation as Landlord may reasonably request memorializing such extension. Within 30 sixty (60) days after receipt of following Tenant’s notice to extendLandlord of exercise of an Extension Option, Landlord shall deliver to notify Tenant written notice in writing of the Prevailing Fair Market Rental Rate and all other Value proposed by Landlord for the applicable terms and shall advise Extension Period (“Landlord’s Proposed Rent”). If Tenant of the required adjustment to Basic disagrees with Landlord’s Proposed Rent, if any, and the other terms and conditions offered. Tenant shall, shall notify Landlord in writing of such disagreement within 15 business thirty (30) days after following receipt of Landlord’s notice Proposed Rent and all supporting documentation and information relating thereto, shall contemporaneously notify Landlord in writing whether of what Tenant accepts or rejects Landlordbelieves is the Fair Market Rental Value for the upcoming Extension Period (“Tenant’s Proposed Rent”). Landlord and Tenant shall meet during the sixty (60) day period following the receipt of the written notice exercising the Extension Option and shall attempt to agree on the Base Rent for such Extension Period. If Landlord and Tenant agree on the Base Rent for such Extension Period by the last day of such sixty (60) day period, Landlord and Tenant will forthwith execute a written agreement confirming the Base Rent for such Extension Period which has been agreed upon. If Landlord and Tenant fail to so agree by the last day of the month following the written notice exercising the option, the determination of the Prevailing Rental RateBase Rent for the applicable Extension Period shall be submitted to binding arbitration by Landlord and Tenant. If Each of Landlord and Tenant timely notifies shall submit to the arbitrator copies of Landlord’s Proposed Rent and Tenant’s Proposed Rent. Such arbitration shall be filed at the regional office of the American Arbitration Association in Atlanta, Georgia and conducted in Atlanta, Georgia before a single arbitrator and shall be administered by the American Arbitration Association in accordance with its rules, procedures and protocols then in effect for the Real Estate Industry (the “AAA Rules”). The arbitrator shall be an impartial professional selected in accordance with the AAA Rules. In the interest of expediting matters and reducing costs, the parties to the arbitration shall not be entitled to file motions or conduct discovery. In rendering his/her decision, the arbitrator shall have the obligation to select either Landlord’s Proposed Rent or Tenant’s Proposed Rent as the Base Rent to be paid by Tenant. The arbitrator’s award shall be binding upon all parties to the arbitration and a judgment upon the award may be entered in any court having jurisdiction thereof. The out-of-pocket attorneys’ fees and costs of Landlord and Tenant, the out-of-pocket costs of any appraiser or consultant engaged by Landlord or Tenant and the fees and costs of the American Arbitration Association and the arbitrator shall be paid by the party whose determination of Base Rent was not selected within thirty (within 15 business 30) days of receipt of Landlord’s written notice an invoice. If, by virtue of any delay, Fair Market Rental Value is not determined by the expiration or termination of the Prevailing then-applicable Term, then until Fair Market Rental Rate together with all supporting information relating thereto as aforesaid) that Value is determined, Tenant accepts Landlord’s determination shall continue to pay Base Rent during the applicable Extension Period in the same amount which it was obligated under this Lease to pay prior to the commencement of such Extension Period. When Fair Market Rental Value is determined, the appropriate Base Rent shall be calculated retroactive to the commencement of the Prevailing applicable Extension Period and Tenant shall either receive a refund from Landlord (in the case of an overpayment) or shall pay any deficiency to Landlord (in the case of an underpayment). In determining Fair Market Rental RateValue, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment determine the amount that a willing tenant would pay, and a willing landlord of comparable flex warehouse/office spaces, at arm’s length, to this Lease extending rent premises of comparable size and quality as the Term on the same terms and conditions provided in this Lease, except as follows:Premises.

Appears in 1 contract

Samples: Lease Agreement (GS Acquisition Holdings Corp II)

Extension Option. Tenant may shall have the option to extend the Term as for two (2) additional five-year extension terms (each an “Extension Term”) by notice given to Landlord at least twelve (12) months before the entirety of either or both of Term Expiration Date. Tenant’s election shall be exercised, and Annual Fixed Rent for the Buildings (as more fully described below) for one additional period of 10 years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Extension Term shall be included determined, as part set forth below. If Tenant fails timely to exercise its option for any Extension Term, Tenant shall have no further extension rights hereunder. Tenant’s option so to extend the Term shall be void, at Landlord’s election, if Tenant is in default (subject to any applicable notice and cure periods set forth in this Lease) at the time Tenant elects to extend the Term or at the time the Term would expire but for such extension. The extension of the obligations guaranteed Term shall be applicable to the entire Premises and Tenant shall have no right to extend the Term for only a portion of the Premises. During the Extension Term, if any, all provisions of this Lease shall apply except that Tenant shall have no further option to extend the Term after the last Extension Term. During the Extension Term, Tenant shall pay Annual Fixed Rent equal to ninety-five percent (95%) of the then prevailing market rate for a five (5) year lease of an entire office building in the market of Route 128 in Waltham comparable to the Premises in terms of location, finish (excluding any finishes that are not provided by Guarantor Landlord or are not paid for by the Improvement Allowance), age, building quality and amenities for a tenant of equal size and financial strength as Tenant, under terms and conditions substantially the Guaranteesame as those of this Lease as though then available for single occupancy for the Permitted Uses (or any higher and better use then being made by Tenant) in “as-is” condition or such better condition in which Tenant is required to maintain the Premises (the “Fair Market Rent”). In addition, if Tenant exercises its right to extend the Term of this Lease for an Extension Term, the base year for the purpose of determining Base Operating Expenses Per Square Foot of Rentable Floor Area and Base Taxes Per Square Foot of Rentable Floor Area shall be adjusted to equal the actual amount for the year immediately prior to the applicable Extension Term. Further, if Tenant exercises its right to extend the Term of this Lease for an Extension Term, Landlord shall provide Tenant with an allowance for the costs (“Expansion Allowance”) of redecorating the Premises in an amount not earlier than 24 months nor to exceed five and xx/100 dollars ($5.00) per square foot of rentable floor area, which Expansion Allowance shall be used by Tenant not later than 21 months before the expiration twelfth (12th) month of the each Extension Term. The Basic Rent payable for each month during such extended Term Expansion Allowance shall be disbursed in the then current prevailing net effective rental rate at same manner and pursuant to the commencement date same terms and conditions as the Improvement Allowance. Landlord shall notify Tenant of its estimate of the extended Term, for extensions of space in buildings Fair Market Rent within ten (including 10) days after Tenant exercises the Buildings and related complex) of equivalent quality, size, utility and location within applicable extension option. In the former City of Kanata submarket, with the length of the extended Term and the credit standing of event that Landlord fails to notify Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies estimate within ten (such as cash allowances, free rent, landlord’s works10) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant exercises such extension option, Tenant shall provide Landlord with a written notice requesting such estimate and Landlord shall have an additional five (5) Business Days following Tenant’s notice to extend, Landlord notify Tenant of Landlord’s estimate of the Fair Market Rent. Tenant shall deliver have the option to Tenant accept or reject by written notice Landlord’s estimate, or to withdraw its exercise of the Prevailing Rental Rate extension option, in any case within fifteen (15) Business Days following delivery of Landlord’s estimate. Tenant’s failure to respond within such period shall be deemed to constitute rejection of Landlord’s estimate. In the event Tenant rejects Landlord’s estimate then the Fair Market Rent shall be arbitrated in accordance with the following procedure. In the event Landlord fails to notify Tenant of its estimate as provided above, the Tenant shall have the option to (i) determine Fair Market Rent by arbitration as set forth below or (ii) withdraw its exercise of the extension option by written notice to Landlord. Each of Landlord and all other applicable terms Tenant, within twenty (20) days after notice by Tenant disputing Landlord’s estimate of the Fair Market Rent, shall appoint as an arbitrator an MAI appraiser with at least ten (10) years experience as an appraiser of office buildings in the Greater Boston area, including first class suburban office buildings, and shall advise give notice of such appointment to the other party. If either Landlord or Tenant shall fail timely to appoint an arbitrator, the other may apply to the Boston office of the required adjustment American Arbitration Association (“AAA”) for appointment of such an arbitrator five (5) Business Days, as such term is defined in Section 8.20, after notice of such failure to Basic Rent, the delinquent party if any, and the other terms and conditions offeredsuch arbitrator has not then been appointed. Tenant The two arbitrators shall, within 15 business five (5) Business Days after appointment of the second arbitrator, appoint a third arbitrator who shall be similarly qualified. If the two arbitrators are unable to agree timely on the selection of the third arbitrator, then either arbitrator on behalf of both may request such appointment from the Boston office of the AAA. The arbitration shall be conducted in accordance with the commercial arbitration rules of the AAA insofar as such rules are not inconsistent with the provisions of this Lease (in which case the provisions of this Lease shall govern). The arbitrators shall be charged to reach a majority written decision in accordance with the standards for the Fair Market Rent as provided in this Section 2.4.1, within twenty (20) days after receipt the third arbitrator is appointed, by selecting either of Landlord’s notice the final estimates of the Fair Market Rent provided by Landlord and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts at the commencement of the hearing. The arbitrators shall have no authority or rejects Landlord’s jurisdiction to make any other determination of such amount. The cost of the Prevailing Rental Ratearbitration (exclusive of each party’s witness and attorneys fees, which shall be paid by such party) shall be borne equally by the parties. If the AAA shall cease to provide arbitration for commercial disputes in Boston, the second or third arbitrator, as the case may be, shall be appointed by any successor organization providing substantially the same services, and in the absence of such an organization, by a court of competent jurisdiction under the arbitration act of The Commonwealth of Massachusetts. If Landlord should delay in giving the notice which begins the valuation procedures of this Section 2.4.1, or if the process should otherwise be delayed for any reason, then such procedures shall nevertheless remain in effect and be applicable when and as invoked with respect to Annual Fixed Rent payable (during the Extension Term; but until such procedures are completed, Tenant timely notifies Landlord shall pay on account of Annual Fixed Rent at the rate established for Annual Fixed Rent for the last twelve (12) months of the Term (and upon Fair Market Rent being established, Tenant shall pay the same within 15 business ten (10) days of receipt of Landlord’s written notice such determination, retroactively to the beginning of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination Extension Term). Each party shall bear the costs of the Prevailing Rental Rate, then, on or before arbitrator selected by it and shall share equally in the commencement date costs of the extended third arbitrator selected in accordance herewith. The parties shall adjust for over or under payments within twenty (20) (days after the decision of the arbitrators is announced. Promptly after the Annual Fixed Rent is determined for the Extension Term, Landlord and Tenant shall execute enter into an amendment to of this Lease extending confirming the extension of the Term on and the same terms new rate for Annual Fixed Rent. Tenant’s rights under this Section 2.4.1 are personal to Tenant and conditions provided in shall not apply to any Transferee of Tenant (other than a Transferee under a Permitted Transfer). If at the commencement of an Extension Term Tenant has Transferred more than thirty-five percent (35%) of the Premises (not including Permitted Transfers), then Tenant’s rights under this Lease, except as follows:Section 2.4.1 shall be null and void and of no further force or effect.

Appears in 1 contract

Samples: Office Lease (Altus Pharmaceuticals Inc.)

Extension Option. Tenant may elect to extend the Term term of this Lease for two (2) five (5) year periods (each such period being referred to herein as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 yearsan "Extension Term"), by delivering written giving Landlord notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor such election no later than 21 twelve (12) months before the then scheduled expiration of the Lease Term. The Basic Rent payable for each month during , provided that on the date such extended Term shall be the then current prevailing net effective rental rate at notice is given and on the commencement date of the extended Extension Term, Tenant is not in default after the expiration of all applicable notice and/or grace periods and Tenant is in occupancy of the majority of the original Premises leased hereunder. Such extension shall be upon the same terms, covenants, and conditions contained in this Lease except that Tenant shall have no further right to extend the Lease Term beyond the 2nd Extension Term and except that the Base Rent for extensions the Extension Term shall be at the greater of (a) the then current Annual Fixed Rent Rate or (b) a rate equal to the then fair market rent. Fair market rent shall be equal to the value of comparable space in buildings (including comparable properties in the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length immediate area of the extended Property. Upon Tenant election to extend, Landlord shall promptly provide in writing the rent (the "Landlord's Rental Rate") at which Landlord is willing to lease the Premises for the Extension Term. If Landlord and Tenant are unable to agree on the amount of such fair market rent by the date that is thirty (30) days after the date Landlord has provided Xxxxxxxx's Rental Rate, then Tenant may either (a) revoke its notice to extend by written notice to Landlord given on or before the end of such 30 day period, or (b) proceed to determine the fair market rent as follows. If Tenant does not provide a revocation notice within 30 days of its exercise notice, Tenant shall promptly specify in writing the rent (the "Tenant's Rental Rate") which Tenant is willing to pay for the Premises for the Extension Term and the credit standing amount of the fair market rent shall be established by appraisal in the following manner. The Landlord and Tenant shall each appoint one qualified real estate appraiser within 45 days of Tenant's election notice and the guarantee two appraisers so appointed shall determine the fair market rent. If such appraisers are unable to agree on the amount of such fair market rent within the 30-day period after the appointment of the Guarantor to be taken into accountlatter, together with any tenant inducements payable or contributed by landlords they shall appoint a third appraiser within 10 days of the expiration of such premises/tenancies (such period, who shall be instructed to select, as cash allowancesbetween the rents chosen by the two appraisers, free the rent that is closest to the third appraiser's estimate of fair market rent. The fair market rent shall be the amount so selected by the third appraiser and the rent so determined shall be conclusive on Landlord and Tenant. Each party shall bear the cost of its appraiser, landlord’s works) and the cost of the third appraisal shall be split equally between the parties; provided that if the rental rate as so as determined is equal to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing or greater than Landlord's Rental Rate”) multiplied by 95%. In no event, however, then Tenant shall pay the Basic Rent in the extended Term be entire cost of all appraisers and if such rate as so determined is equal to or less than Tenant's Rental Rate, then Landlord shall pay the Basic entire cost of all appraisers. Until such time as the fair market rent is so determined, Tenant shall pay monthly Base Rent during the Extension Term at the rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of original Term with an appropriate adjustment once the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:fair market rent is determined.

Appears in 1 contract

Samples: Millipore Corp /Ma

Extension Option. Tenant may shall have the right to extend the Term as to the entirety term of either or both of the Buildings (as more fully described below) this ---------------- Lease for one additional period of 10 five (5) years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before begin immediately upon the expiration of the Termoriginal term of this Lease (the "extended term"). The Basic Rent payable for each month during All of the terms, covenants and provisions of this Lease shall apply to such extended Term term except that the Annual Fixed Rent Rate for such extended term shall be the then current prevailing net effective rental market rate at time of Tenant's exercise notice hereunder timely given during the months specified below, as designated by Landlord. If Tenant shall elect to exercise the aforesaid option, it shall do so by giving Landlord notice in writing of its intention to do so either during the fifty-first (51st) month or the seventy-fifth (75th) month of the original term of this Lease. If Tenant timely gives such notice, the extension of this Lease shall be automatically affected without the execution of any additional documents. The original term and the extended term are hereinafter collectively called the "term." If the Tenant disagrees with Landlord's designation of the market rate, and the parties cannot agree upon the market rate, then the market rate shall be submitted to arbitration as follows: market rate shall be determined by impartial arbitrators who shall be real estate professionals with experience in leasing similar properties, one to be chosen by the Landlord, one to be chosen by Xxxxxx, and a third to be selected, if necessary, as below provided. The unanimous written decision of the two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall each notify the other of its chosen arbitrator within ten (10) days following the call for arbitration and, unless such two arbitrators shall have reached a unanimous decision within thirty (30) days after their designation, they shall so notify the then President of the Boston Bar Association and request him to select an impartial third arbitrator, who shall be a real estate professional with experience in leasing like types of properties, to determine market rate as herein defined. Such third arbitrator and the first two chosen shall hear the parties and their evidence and render their decision within thirty (30) days following the conclusion of such hearing and notify Landlord and Tenant thereof. Landlord and Tenant shall share equally the expense of the third arbitrator (if any). If the dispute between the parties as to a market rate has not been resolved before the commencement date of Tenant's obligation to pay Fixed Rent based upon such market rate, then Tenant shall pay Fixed Rent under the Lease based upon the market rate designated in good faith by Landlord until either the agreement of the extended Termparties as to the market rate, for extensions of space in buildings (including or the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length decision of the extended Term and arbitrators, as the credit standing case may be, at which time Tenant shall pay any underpayment of Fixed Rent to Landlord, or any overpayment shall be credited against the Fixed Rent next payable by Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%hereunder. In no event, however, shall the Basic Annual Fixed Rent in Rate for the extended Extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:$400,000.

Appears in 1 contract

Samples: Commencement Date Agreement (Averstar Inc)

Extension Option. Tenant may extend shall have the Term option to renew the Lease as to the entirety of either or both of the Buildings (as more fully described below) entire Premises for one additional period of 10 years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before the expiration of the five (5) years (a “Renewal Term. The Basic Rent payable for each month during such extended Term shall be ”) at the then current prevailing net effective market rental rate at the commencement date of the extended Term, for extensions of comparable space in similar office buildings (including in the Buildings and related complex) of equivalent qualitymarket where the Building is located taking into consideration all relevant factors, sizeincluding, utility and location within without limitation, the former City of Kanata submarketamount, on a per square foot basis, that a willing, comparable, non-equity tenant with the length of the extended Term and the credit standing of a creditworthiness comparable to Tenant and the guarantee of the Guarantor would pay given appropriate consideration to be taken into accountmarket rental rates, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowancesescalations, abatement provisions, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent if any, length of the Extension Term, and the location and size of the Premises (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Market Rate”). Within 30 Tenant shall exercise its renewal option by written notice to Landlord given not less than nine (9) months prior to the Expiration Date of the Term of the Lease (the “Renewal Notice”). The Market Rate shall be reasonably determined by agreement between Landlord and Tenant and shall be used to establish the Annual Minimum Rent for the first year of the Renewal Term. If Landlord and Tenant have not agreed on the Market Rate within forty-five (45) days after receipt Tenant gives the Renewal Notice, then such exercise shall be automatically rescinded and the Lease shall not be extended for the Renewal Term. Tenant may exercise its option to renew and Texxxx’x exercise of such option shall be effective only if, at the time of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice exercise and at the commencement of the Prevailing Rental Rate Renewal Term, the Lease is in full force and all other effect and Tenant is not in default under the Lease beyond any applicable terms and shall advise Tenant cure period. Upon timely exercise of the required adjustment to Basic Rent, if any, renewal option and mutual agreement on the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Market Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant parties shall execute enter into an amendment to this the Lease extending to extend the Term on for the same terms and conditions provided in this Lease, except Renewal Term. Landlord shall have no obligation to improve the Premises or provide further TI Contribution as follows:an inducement to Tenant exercising the Renewal Term. The Annual Minimum Rent for each year after the first year of the Extension Term then exercised shall be one hundred three percent (103%) of the Annual Minimum Rent for the preceding year.

Appears in 1 contract

Samples: Lease (Lightpath Technologies Inc)

Extension Option. Tenant may shall have the option to extend the Term as for two (2) additional five-year extension terms (each an “Extension Term”) by notice given to Landlord at least twelve (12) months before the entirety of either or both of Term Expiration Date. Tenant’s election shall be exercised, and Annual Fixed Rent for the Buildings (as more fully described below) for one additional period of 10 years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Extension Term shall be included determined, as part set forth below. If Tenant fails timely to exercise its option for any Extension Term, Tenant shall have no further extension rights hereunder. Tenant’s option so to extend the Term shall be void, at Landlord’s election, if Tenant is in default (subject to any applicable notice and cure periods set forth in this Lease) at the time Tenant elects to extend the Term or at the time the Term would expire but for such extension. The extension of the obligations guaranteed Term shall be applicable to the entire Premises and Tenant shall have no right to extend the Term for only a portion of the Premises. During the Extension Term, if any, all provisions of this Lease shall apply except that Tenant shall have no further option to extend the Term after the last Extension Term. During the Extension Term, Tenant shall pay Annual Fixed Rent equal to ninety-five percent (95%) of the then prevailing market rate for a five (5) year lease of an entire laboratory building in the market of Route 128 in Waltham comparable to the Premises in terms of location, finish (excluding any finishes that are not provided by Guarantor Landlord or are not paid for by the Improvement Allowance), age, building quality and amenities for a tenant of equal size and financial strength as Tenant, under terms and conditions substantially the Guaranteesame as those of this Lease as though then available for single occupancy for the Permitted Uses (or any higher and better use then being made by Tenant) in “as-is” condition or such better condition in which Tenant is required to maintain the Premises (the “Fair Market Rent”). Further, if Tenant exercises its right to extend the Term of this Lease for an Extension Term, Landlord shall provide Tenant with an allowance for the costs (“Expansion Allowance”) of redecorating the Premises in an amount not earlier than 24 months nor to exceed five and 00/100 dollars ($5.00) per square foot of rentable floor area, which Expansion Allowance shall be used by Tenant not later than 21 months before the expiration twelfth (12th) month of the each Extension Term. The Basic Rent payable for each month during such extended Term Expansion Allowance shall be disbursed in the then current prevailing net effective rental rate at same manner and pursuant to the commencement date same terms and conditions as the Improvement Allowance. Landlord shall notify Tenant of its estimate of the extended Term, for extensions of space in buildings Fair Market Rent within ten (including 10) days after Tenant exercises the Buildings and related complex) of equivalent quality, size, utility and location within applicable extension option. In the former City of Kanata submarket, with the length of the extended Term and the credit standing of event that Landlord fails to notify Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies estimate within ten (such as cash allowances, free rent, landlord’s works10) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant exercises such extension option, Tenant shall provide Landlord with a written notice requesting such estimate and Landlord shall have an additional five (5) Business Days following Tenant’s notice to extend, Landlord notify Tenant of Landlord’s estimate of the Fair Market Rent. Tenant shall deliver have the option to Tenant accept or reject by written notice Landlord’s estimate, or to withdraw its exercise of the Prevailing Rental Rate extension option, in any case within fifteen (15) Business Days following delivery of Landlord’s estimate. Tenant’s failure to respond within such period shall be deemed to constitute rejection of Landlord’s estimate. In the event Tenant rejects Landlord’s estimate then the Fair Market Rent shall be arbitrated in accordance with the following procedure. In the event Landlord fails to notify Tenant of its estimate as provided above, the Tenant shall have the option to (i) determine Fair Market Rent by arbitration as set forth below or (ii) withdraw its exercise of the extension option by written notice to Landlord. Each of Landlord and all other applicable terms Tenant, within twenty (20) days after notice by Tenant disputing Landlord’s estimate of the Fair Market Rent, shall appoint as an arbitrator an MAI appraiser with at least ten (10) years experience as an appraiser of laboratory buildings in the Greater Boston area, including first class suburban laboratory buildings, and shall advise give notice of such appointment to the other party. If either Landlord or Tenant shall fail timely to appoint an arbitrator, the other may apply to the Boston office of the required adjustment American Arbitration Association (“AAA”) for appointment of such an arbitrator five (5) Business Days, as such term is defined in Section 8.20, after notice of such failure to Basic Rent, the delinquent party if any, and the other terms and conditions offeredsuch arbitrator has not then been appointed. Tenant The two arbitrators shall, within 15 business five (5) Business Days after appointment of the second arbitrator, appoint a third arbitrator who shall be similarly qualified. If the two arbitrators are unable to agree timely on the selection of the third arbitrator, then either arbitrator on behalf of both may request such appointment from the Boston office of the AAA. The arbitration shall be conducted in accordance with the commercial arbitration rules of the AAA insofar as such rules are not inconsistent with the provisions of this Lease (in which case the provisions of this Lease shall govern). The arbitrators shall be charged to reach a majority written decision in accordance with the standards for the Fair Market Rent as provided in this Section 2.4.1, within twenty (20) days after receipt the third arbitrator is appointed, by selecting either of Landlord’s notice the final estimates of the Fair Market Rent provided by Landlord and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts at the commencement of the hearing. The arbitrators shall have no authority or rejects Landlord’s jurisdiction to make any other determination of such amount. The cost of the Prevailing Rental Ratearbitration (exclusive of each party’s witness and attorneys fees, which shall be paid by such party) shall be borne equally by the parties. If the AAA shall cease to provide arbitration for commercial disputes in Boston, the second or third arbitrator, as the case may be, shall be appointed by any successor organization providing substantially the same services, and in the absence of such an organization, by a court of competent jurisdiction under the arbitration act of The Commonwealth of Massachusetts. If Landlord should delay in giving the notice which begins the valuation procedures of this Section 2.4.1, or if the process should otherwise be delayed for any reason, then such procedures shall nevertheless remain in effect and be applicable when and as invoked with respect to Annual Fixed Rent payable (during the Extension Term; but until such procedures are completed, Tenant timely notifies Landlord shall pay on account of Annual Fixed Rent at the rate established for Annual Fixed Rent for the last twelve (12) months of the Term (and upon Fair Market Rent being established, Tenant shall pay the same within 15 business ten (10) days of receipt of Landlord’s written notice such determination, retroactively to the beginning of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination Extension Term). Each party shall bear the costs of the Prevailing Rental Rate, then, on or before arbitrator selected by it and shall share equally in the commencement date costs of the extended third arbitrator selected in accordance herewith. The parties shall adjust for over or under payments within twenty (20) (days after the decision of the arbitrators is announced. Promptly after the Annual Fixed Rent is determined for the Extension Term, Landlord and Tenant shall execute enter into an amendment to of this Lease extending confirming the extension of the Term on and the same terms new rate for Annual Fixed Rent. Tenant’s rights under this Section 2.4.1 are personal to Tenant and conditions provided in shall not apply to any Transferee of Tenant (other than a Transferee under a Permitted Transfer). If at the commencement of an Extension Term Tenant has Transferred more than thirty-five percent (35%) of the Premises (not including Permitted Transfers), then Tenant’s rights under this Lease, except as follows:Section 2.4.1 shall be null and void and of no further force or effect.

Appears in 1 contract

Samples: Altus Pharmaceuticals Inc.

Extension Option. Provided Tenant may is not in default of its obligations under this Lease, Tenant shall have one (1) five (5) year option to extend the Term of the Premises in "as is" condition at the then current market rate. The option to extend is personal to the entirety of either Tenant stated in the Lease and will not survive any assignment or both sublet of the Buildings (as more fully described below) Lease. In no event will the monthly rental be less than the rental for one additional period the last month of 10 years, by delivering the previous term. Tenant shall give Landlord written notice of the its intent to exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, its option at least one hundred eighty (180) days but not more than two hundred seventy (270) days prior to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”)Lease term. Within 30 thirty (30) days after receipt of Tenant’s notice Tenant exercises its option to extendrelease, Landlord shall deliver to will provide Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rentwith fair market rental, if anyas reasonably determined by Landlord, and the other as well as terms and conditions offeredfor the extended term. Tenant shallshall have thirty (30) days from notification by Landlord of current rent and terms and conditions to accept Landlord's fair market rent, terms and conditions. The parties are obligated to negotiate in good faith to agree on the market rental for any option period. If the parties have not mutually agreed on the market rental adjustment for any option period provided herein within 15 business thirty (30) days after receipt from notification by Landlord to Tenant of Landlord’s notice 's rental determination, each party hereto shall appoint one representative who shall be a licensed real estate broker with a minimum of ten (10) years experience in leasing industrial space in Sunnyvale, California, to determine the fair market rental for the Premises. The two (2) representatives so appointed shall determine the current rental value for the subsequent option period for the use to which Tenant is then utilizing the Premises pursuant to the terms and all supporting documentation conditions of this Lease. The determination of said current rental value shall be made by said two (2) representatives within sixty (60) days from notification by Landlord to Tenant of Landlord's rental determination and information relating thereto, notify Landlord they shall submit said determination in writing whether to Landlord and Tenant. If the two (2) representatives of the parties hereto cannot agree on the rental value for the Premises herein, said two (2) representatives shall choose a third licensed real estate broker with a minimum of ten (10) years experience in the leasing of industrial space in Sunnyvale, California, to act as an arbitrator. If the two representatives cannot or do not agree on a third representative, either party may have the third representative chosen by the American Arbitration Association or by a judge of the Santa Clarx Xxxnty Superior Court. The current rental value for the subsequent option period shall be independently determined by the arbitrator, which said determination shall be made within ninety (90) days from notification by Landlord to Tenant accepts of Landlord's rental determination. The role of the arbitrator shall then be to immediately select from the fair market rent proposals of the representatives the one that most closely approximates the arbitrator's determination of fair market rental value. The arbitrator shall have no right to adopt a compromise or rejects Landlord’s middle ground or any modification of either of the two fair market rent proposals. The proposal the arbitrator chooses as most closely approximating his determination of the Prevailing Rental Ratequestion in issue shall constitute the decision and award and shall be final and binding upon the parties. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice Each party shall pay the charges of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination representative appointed by such party. The charges and expenses of the Prevailing Rental Ratearbitrator, thenas provided herein, on or before shall be paid by the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided parties hereto in this Lease, except as follows:equal shares.

Appears in 1 contract

Samples: Lease (Symyx Technologies Inc)

Extension Option. Provided that Tenant may is not in default of any monetary or material non-monetary provision of this Lease at the time of exercise of an option to extend provided herein or at any time thereafter prior to the commencement of the applicable “Option Term” (as hereinafter defined), Tenant shall have the option to extend the Term of this Lease for two (2) additional terms of Sixty (60) months, such period being referred to herein as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 yearsan “Option Term”, only by delivering giving Landlord written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months at least two hundred seventy (270) days before the expiration of the then applicable Term. The All of the terms, covenants, conditions, provisions and agreements applicable to the initial Term shall be applicable to the Option Term, except that the Basic Rent payable for each month during such extended the Option Term shall be equal to the then current prevailing net effective fair market rental rate at or rates for comparable buildings (considering size, age, quality, utility, location, access, improvements and amenities) located within the commencement date general geographic location of the extended TermProject, for extensions of space in buildings (including as reasonably determined by Landlord. In determining the Buildings and related complex) of equivalent qualityfair market rental rate, size, utility and location Landlord shall take into account recent leases within the former City of Kanata submarketBuilding. Landlord shall, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after upon receipt of Tenant’s notice provided for above and at least four (4) months prior to extendthe expiration of the original Term, Landlord shall deliver to notify Tenant in writing of its determination of the fair market rental rate or rates and the Basic Rent for the Option Term. Within ten (10) days after such notice is given, Tenant may elect in written notice to Landlord either to (i) accept such Basic Rent for the Option Term as determined by Landlord, or (ii) terminate this Lease as of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant expiration of the required adjustment original Term, or (iii) provide Landlord with Notice that it elects to Basic Rent, if any, and appoint an independent licensed appraiser to conduct an independent evaluation of the other terms and conditions offeredfair market rental rate for comparable offices. Tenant shall, within 15 business shall have thirty (30) days after receipt to complete the appraisal. Tenant shall then Notify Landlord of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects its intent to accept Landlord’s determination of fair market rent or object to the Prevailing Rental RateLandlord’s determination thereof. If Tenant timely notifies Landlord (within 15 business days of receipt of the difference between the Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts determination is less than 5%, then Landlord’s determination of fair market rental rate shall be the Prevailing Rental Raterate used during the Option Term. However, thenif the difference between Landlord’s estimate of fair market rental rate and that made by the appraiser is 5% or greater, on then Landlord may (i) accept the appraiser’s determination of fair market rent rate, or before (ii) appoint a second independent licensed appraiser to reconcile the commencement date two opinions of value, which reconciliation shall be completed within Thirty (30) days, and the reconciled amount shall be the fair market rental rate. Tenant’s failure to make a written elections strictly in accordance with the preceding sentences shall be deemed to be an acceptance of the extended Term, Landlord and Basic Rent as determined by Landlord. Time is of the essence with respect to Txxxxx’s exercise of the option to extend the Term of this Lease provided herein. The option to extend the Term pursuant hereto by the Option Terms shall be personal to the original Tenant shall execute an amendment signatory to this Lease extending and shall not be exercisable by or for the Term on the same terms and conditions provided benefit of any assignee or subtenant of Tenant other than an assignee in connection with a permitted assignment: pursuant to Article 15 below. All references in this Lease, except as follows:.

Appears in 1 contract

Samples: Office Building Lease (Southwest Community Bancorp)

AutoNDA by SimpleDocs

Extension Option. Tenant may Subtenant shall have one option to extend the Term as term of the Sublease to expire on March 31, 2017 (“Extension Term”). This option is personal to the entirety of either or both of Subtenant originally named herein and shall not be exercisable and shall be deemed void if Subtenant is in default under this Sublease at the Buildings (as more fully described below) for one additional period of 10 years, by delivering written notice time of the exercise thereofof such option, including an acknowledgment by the Guarantor that the obligations of Tenant or if Subtenant has been in material default (after any applicable notice and cure period) at any time during the extended Term shall term hereof. The option must be included as part of exercised, if at all, by written notice (the obligations guaranteed by Guarantor under the Guarantee, “Commitment Notice”) to Landlord Sublandlord not earlier less than 24 nine (9) months nor later than 21 months before prior to the expiration of the Term. The Basic All of the terms and conditions of this Sublease shall continue to apply during the term of such option, except that Base Rent payable for each month during such extended the first (1st) year of the Extension Term shall be the then current prevailing net effective rental rate at “Fair Market Rent” for the Sublease Premises as determined pursuant to this Section 2(b) and, if applicable, Exhibit C. On each anniversary of the commencement date of the extended Extension Term, the Base Rent shall increased by three and one-half percent (3.5%), compounded. Upon receipt of the Commitment Notice, Sublandlord shall determine the Fair Market Rent for extensions of the Sublease Premises, which shall be based on comparable rents then charged and collected for non-renewing tenants for comparable space in buildings (the Sorrento Mesa area of San Diego County, taking into account items that professional real estate brokers customarily consider including location, whether the Buildings space is subleased or direct leased, rental rates, tenant improvements, office space availability, tenant size and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of other relative factors affecting properties in such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%area. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice event Subtenant objects to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects LandlordSublandlord’s determination of the Prevailing Rental RateFair Market Rent, Sublandlord and Subtenant shall attempt to agree in good faith upon the Fair Market Rent. If Tenant timely notifies Landlord Sublandlord and Subtenant fail to reach agreement within thirty (within 15 business 30) days of receipt of Landlordfollowing Subtenant’s written notice delivery of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s Commitment Notice (the “Outside Agreement Date”), then each party shall make a separate determination of the Prevailing Rental RateFair Market Rent within five (5) business days after the Outside Agreement Date, then, on or before the commencement date of the extended Term, Landlord concurrently exchange such determinations and Tenant such determinations shall execute an amendment be submitted to this Lease extending the Term on the same terms and conditions provided arbitration in this Lease, except as follows:accordance with Exhibit C.

Appears in 1 contract

Samples: Sublease (Ardea Biosciences, Inc./De)

Extension Option. Subject to the rights of KPMG LLP that exist as of the date of this Lease and provided no Default of Tenant may extend has occurred hereunder and the Term as to original named Tenant is occupying the entirety of either or the Premises then demised hereunder both on the date such notice is given and on the commencement date of the Buildings (as more fully described below) Extension Term, Tenant may elect to extend the Lease Term for one additional (1) five-year period of 10 years(the “Extension Term”), by delivering written giving Landlord notice of such election (the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord “Extension Notice”) not earlier less than 24 months nor later than 21 twelve (12) months before the expiration of the Lease Term. The Basic Such extension shall be upon all of the same terms, covenants, and conditions contained in this Lease, except that (a) Tenant shall have no further right to extend the Lease Term, (b) the Base Rent payable for each month during such extended the Extension Term shall be at a rate equal to the then current prevailing net effective rental rate at fair market rent for the Premises as of the commencement date of the extended Extension Term, and (c) Landlord shall have no obligation to make or pay for any improvements to the Premises or to pay any allowances or inducements of any kind. Fair market rent for the Premises shall be computed as of the commencement of the Extension Term and shall be at the then current annual rental charges, including provisions for subsequent increases and other adjustments, for extensions of existing leases then currently being negotiated or executed in comparable space and buildings located in buildings (including downtown Boston. In determining fair market rent, the Buildings and related complex) of equivalent qualityfollowing factors, sizeamong others, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to shall be taken into accountaccount and given effect: size of the premises, together with any condition of the premises, location and age of the Building, escalation charges, location of the premises, location and age of the Building, tenant improvements, concessions or inducements payable or contributed by landlords such as tenant improvement allowances, and lease term. If Landlord and Tenant are unable to agree on the amount of such premises/tenancies fair market rent by the date that is the later of thirty (30) days after the date of delivery of the Extension Notice or eleven (11) months before the expiration of the Lease Term, then the fair market rent shall be established by appraisal in the following manner. Within ten (10) days after the later of the two dates described in the preceding sentence, Landlord and Tenant shall each appoint one (1) qualified appraiser (as hereinafter defined) and the two (2) appraisers so appointed shall determine the fair market rent within seventy-five (75) days of the date of delivery of the Extension Notice. As used herein, the term “qualified appraiser” shall mean any independent unaffiliated person (a) who is employed by an appraisal firm of recognized competence in the greater Boston area and (b) who has not less than ten (10) years experience in appraising and valuing properties of the general location, type and character as the Premises. If either Landlord or Tenant fails to appoint an appraiser within such as cash allowancesten (10) day period, free then the other party shall have the power to appoint the appraiser for the defaulting party. If the appraisers are unable to agree on the fair market rent within such seventy-five (75) day period, then they jointly shall appoint a third qualified appraiser within ten (10) days of the expiration of such seventy-five (75) day period, and within thirty (30) days thereafter all three appraisers shall meet and determine the fair market rent. If all three appraisers are unable unanimously to agree upon the fair market rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (then the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord first two appraisers simultaneously shall deliver their final fair market rent numbers to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if anythird appraiser, and the third appraiser shall select one or the other terms number as the fair market rent numbers to the third appraiser, and conditions offeredthe fair market rent so determined shall be conclusive and binding upon the Landlord and Tenant. Tenant shallEach party shall bear the cost of its appraiser, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination the cost of the Prevailing Rental Ratethird appraiser shall be borne equally between the parties. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of Until such time as the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Ratefair market rent is so determined, then, on or before from and after the commencement date of the extended Extension Term, Landlord and Tenant shall execute pay Base Rent at Landlord’s appraiser’s initial designation of fair market rent, with an amendment to this Lease extending appropriate adjustment once the Term on the same terms and conditions provided in this Lease, except as follows:fair market rent has been determined.

Appears in 1 contract

Samples: Lease (Management Network Group Inc)

Extension Option. Provided that as of the date of the notice specified below, Tenant may is not in default and has not previously been in default of its obligations under this Lease beyond any applicable grace period more than once, Tenant shall have the right to extend the Term as to the entirety term of either or both of the Buildings (as more fully described below) this Lease for one additional period of 10 five (5) years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before begin immediately upon the expiration of the Termoriginal term of this Lease (the "extended term"). The Basic Rent payable for each month during All of the terms, covenants and provisions of this Lease shall apply to such extended Term terms except that the Annual Fixed Rent Rate for such extension period shall be the then current prevailing net effective rental fair market rate at the commencement date of such extended term, as designated by Landlord for comparable buildings in the greater Burlington area. If Tenant shall elect to exercise the aforesaid option, it shall do so by giving Landlord notice in writing of its intention to do so not later than one (1) year prior to the expiration of the original term of this Lease. If Tenant gives such notice, the extension of this Lease shall be automatically effected without the execution of any additional documents. The original term and the extended Term, for extensions of space in buildings (including term are hereinafter collectively called the Buildings and related complex) of equivalent quality, size, utility and location within "term". If the former City of Kanata submarket, Tenant disagrees with the length Landlord's designation of the extended Term market rate, and the credit standing parties cannot agree upon the market rate, then the market rate shall be submitted to arbitration as follows: market rate shall be determined by impartial arbitrators, one to be chosen by the Landlord, one to be chosen by Xxxxxx, and a third to be selected, if necessary, as below provided. The unanimous written decision of the two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall each notify the other of its chosen arbitrator within ten (10) days following the call for arbitration and, unless such two arbitrators shall have reached a unanimous decision within thirty (30) days after their designations, they shall so notify the then President of the Boston Bar Association and request him to select an impartial third arbitrator, who shall be another office building owner, a real estate counselor or a broker dealing with like types of properties, to determine market rate as herein defined. Such third arbitrator and the guarantee first two chosen shall hear the parties and their evidence and render their decision within thirty (30) days following the conclusion of such hearing and notify Landlord and Tenant thereof. Landlord and Tenant shall share equally the expense of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies third arbitrator (such as cash allowances, free rent, landlord’s works) so if any). If the dispute between the parties as to achieve current net effective a market rental rates with periodic increases in Basic rate has not been resolved before the commencement of Tenant's obligation to pay Fixed Rent (based upon such market rate, then Tenant shall pay Fixed Rent under the “Prevailing Rental Rate”) multiplied Lease based upon the market rate designated by 95%Landlord until either the agreement of the parties as to the market rate, or the decision of the arbitrators, as the case may be, at which time Tenant shall pay any underpayment of Fixed Rent to Landlord, or Landlord shall refund any overpayment of Fixed Rent to Tenant. In no any event, however, shall the Basic Annual Fixed Rent in Rate for the extended Term term shall not be less than the Basic Annual Fixed Rent rate per rentable square foot Rate in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice prior to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the such extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:term.

Appears in 1 contract

Samples: Ibasis Inc

Extension Option. Provided Tenant may is not in default of its obligations under this Lease, Tenant shall have one (1) five (5) year option to extend the Term of the Premises in “as is” condition at the then current market rate. The option to extend is personal to the entirety of either Tenant stated in the Lease and will not survive any assignment or both sublet of the Buildings (as more fully described below) Lease. In no event will the monthly rental be less than the rental for one additional period the last month of 10 years, by delivering the previous term. Tenant shall give Landlord written notice of the its intent to exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, its option at least one hundred eighty (180) days but not more than two hundred seventy (270) days prior to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”)Lease term. Within 30 thirty (30) days after receipt of Tenant’s notice Tenant exercises its option to extendrelease, Landlord shall deliver to will provide Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rentwith fair market rental, if anyas reasonably determined by Landlord, and the other as well as terms and conditions offeredfor the extended term. Tenant shallshall have thirty (30) days from notification by Landlord of current rent and terms and conditions to accept Landlord’s fair market rent, terms and conditions. The parties are obligated to negotiate in good faith to agree on the market rental for any option period. If the parties have not mutually agreed on the market rental adjustment for any option period provided herein within 15 business thirty (30) days after receipt from notification by Landlord to Tenant of Landlord’s notice rental determination, each party hereto shall appoint one representative who shall be a licensed real estate broker with a minimum of ten (10) years experience in leasing industrial space in Sunnyvale, California, to determine the fair market rental for the Premises. The two (2) representatives so appointed shall determine the current rental value for the subsequent option period for the use to which Tenant is then utilizing the Premises pursuant to the terms and all supporting documentation conditions of this Lease. The determination of said current rental value shall be made by said two (2) representatives within sixty (60) days from notification by Landlord to Tenant of Landlord’s rental determination and information relating thereto, notify Landlord they shall submit said determination in writing whether to Landlord and Tenant. If the two (2) representatives of the parties hereto cannot agree on the rental value for the Premises herein, said two (2) representatives shall choose a third licensed real estate broker with a minimum of ten (10) years experience in the leasing of industrial space in Sunnyvale, California, to act as an arbitrator. If the two representatives cannot or do not agree on a third representative, either party may have the third representative chosen by the American Arbitration Association or by a judge of the Santa Xxxxx County Superior Court. The current rental value for the subsequent option period shall be independently determined by the arbitrator, which said determination shall be made within ninety (90) days from notification by Landlord to Tenant accepts or rejects of Landlord’s rental determination. The role of the arbitrator shall then be to immediately select from the fair market rent proposals of the representatives the one that most closely approximates the arbitrator’s determination of the Prevailing Rental Ratefair market rental value. If Tenant timely notifies Landlord (within 15 business days The arbitrator shall have no right to adopt a compromise or middle ground or any modification of receipt of Landlord’s written notice either of the Prevailing Rental Rate together with all supporting information relating thereto two fair market rent proposals. The proposal the arbitrator chooses as aforesaid) that Tenant accepts Landlord’s most closely approximating his determination of the Prevailing Rental Rate, then, on or before question in issue shall constitute the commencement date decision and award and shall be final and binding upon the parties. Each party shall pay the charges of the extended Termrepresentative appointed by such party. The charges and expenses of the arbitrator, Landlord and Tenant as provided herein, shall execute an amendment to this Lease extending be paid by the Term on the same terms and conditions provided parties hereto in this Lease, except as follows:equal shares.

Appears in 1 contract

Samples: Lease (Accelrys, Inc.)

Extension Option. Provided that at the time the Tenant may extend the Term as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 years, by delivering written gives notice of the exercise thereofof its rights under this Section 2.5, including an acknowledgment and at the time the Term would have otherwise expired but for the exercise of such rights, the Tenant is in Good Standing, the Tenant shall have the right to extend the Term hereof (the “Extension Option”) for one (1) period of three (3) years (the “Extension Term”). The Extension Option shall be exercised by notice given by the Guarantor that Tenant to the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, Landlord at least twelve (12) months prior to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Initial Term. Upon the Tenant’s giving such notice, this Lease and the Term hereof shall be extended for the applicable Extension Term without the necessity of execution of any additional documents. The Basic Extension Term shall be upon all the terms, conditions and provisions of this Lease, except that the Annual Fixed Rent payable for each month during such extended the Extension Term shall be the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective fair market rental rates with periodic increases in Basic Rent value (the “Prevailing Fair Rental RateValue”) multiplied of the Premises as of the commencement of such Extension Term, determined as provided below. Tenant shall have no option to extend the Term for any further Extension Term beyond the one provided for by 95%this Section 2.5. In no eventThe term “Fair Rental Value” shall mean the market rental value per annum and shall take into account the base rent and all other related and relevant factors for comparable office space in the Xxxxxx-Xxxxxxx area as are typically considered when determining such base rent (including, howeverwithout limitation, the condition of the premises, any applicable tenant allowances, and the size of the tenant and leasing commissions, among other things). The Landlord shall exercise reasonable and good faith judgment in establishing the Fair Rental Value of the Premises for the Extension Term and, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term within forty-five (the “Minimum Renewal Rate”). Within 30 45) days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice exercise of the Prevailing Extension Option for the Extension Term notify Tenant in writing of Landlord’s proposed Fair Rental Rate and all other applicable terms and shall advise Value. If Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered. Tenant shall, does not notify Landlord in writing within 15 business thirty (30) days after its receipt of Landlord’s notice proposed Fair Rental Value that Tenant does not agree with such proposed Fair Rental Value then Landlord’s proposed Fair Rental Value shall be the Fair Rental Value of the Premises, and all supporting documentation and information relating theretothe parties shall be bound to such amount. If on the other hand, Tenant does so notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord within said thirty (within 15 business 30) days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rateit does not agree, then, on or before the commencement date of the extended Term, then Landlord and Tenant shall execute negotiate in good faith to attempt to agree on Fair Rental Value by the date that is nine (9) months prior to the date on which the Extension Term is to commence. If the parties are not able to timely reach an amendment to this Lease extending agreement, such Fair Rental Value shall be determined in accordance with the Term on arbitration procedure set forth in Exhibit I. If the applicable Fair Rental Value has not been determined as of the date the same terms is to become effective, the Tenant shall pay Annual Fixed Rent at the rate quoted by the Landlord as the Fair Rental Value until such determination is made. In the event it shall subsequently be determined that the Fair Rental Value quoted (and conditions provided reasonably determined) by the Landlord was in this Leaseexcess of the Fair Rental Value, except as follows:the Landlord shall credit the amount of such overpayment against the next installments of Annual Fixed Rent. In the event it shall subsequently be determined that the Fair Rental Value quoted by the Landlord was less than the Fair Rental Value, the Tenant shall promptly pay the difference to the Landlord.

Appears in 1 contract

Samples: Sublease (TripAdvisor, Inc.)

Extension Option. If Tenant (or any permitted transferee) is then occupying and conducting business in the premises, Landlord agrees that Tenant has one option to extend the term of this Lease for an additional five years at the greater of (i) $11.42 per square foot, which is the net rent rate for the last year of the initial term or (ii) the then-market net rent, as determined under this section 4.b. Tenant may extend exercise the Term as option only by written notice to Landlord at least nine months, but not more than twelve months, before the entirety of either or both of initial term is scheduled to end. Within 45 days after Landlord receives the Buildings (as more fully described below) for one additional period of 10 yearsextension notice, by delivering Landlord agrees to give Tenant written notice of its good-faith determination of the exercise thereofmarket net rent for the extension term, taking into account all relevant factors, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the GuaranteeTenant's credit, to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and extension term, the credit standing of Tenant and the guarantee condition of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offeredfact that Landlord is not providing any tenant improvements. Tenant may disagree with Landlord's determination of the market net rent by written notice to Landlord within 15 days after it receives Landlord's notice, in which case Landlord and Tenant agree to negotiate in good faith for 15 days in an attempt to agree on the market net rent. If Landlord and Tenant do not agree on the market net rent within the 15-day negotiation period, each party shall, within 15 one business day after the expiration of said 15-day period, submit to the other such party's final determination of market net rent, and the market net rent will be determined by arbitration as follows: Landlord and Tenant shall agree upon and jointly appoint one neutral arbitrator who shall be by profession a real estate appraiser or broker who shall have been active over the 10-year period ending on the date of such appointment in the leasing of comparable commercial properties in the Minneapolis-St. Xxxx metropolitan area. Neither Landlord nor Tenant shall consult with such broker or appraiser as to his or her opinion as to the market net rent prior to the appointment. If a party does not submit a final determination of market net rent, the determination of the party that submitted a final determination shall be final and binding and no arbitration shall occur. Subject to the foregoing, the determination of the arbitrator shall be limited solely to the issue of whether Landlord's or Tenant's submitted proposal on net market rent (as exchanged between the parties as hereinabove provided) for the premises is the closest to the determination of the neutral arbitrator. The arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion, determines is necessary. In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within 10 business days after the appointment of the arbitrator any data and additional information concerning comparable transactions and market information and the other party may submit a reply in writing within 5 business days after receipt of Landlord’s notice and all supporting documentation and information relating theretosuch submittal. The arbitrator shall, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business 45 days of receipt of his or her appointment, reach a decision as to whether Landlord’s written notice of 's or Tenant's submitted market net rent is the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of closest to the Prevailing Rental Ratemarket net rent, then, on or before the commencement date of the extended Term, and shall notify Landlord and Tenant of such determination. The decision of the arbitrator shall execute an amendment be binding upon Landlord and Tenant. If Landlord and Tenant fail to agree upon and appoint such arbitrator, then the appointment of the arbitrator shall be made by the presiding judge of the Hennepin County District Court. The cost of arbitration shall be paid by Landlord and Tenant equally, and each party shall bear its own legal and other professional costs and fees. The net rent during the extension period will then be the greater of the market net rent the arbitrator selects or $11.42 per square foot. Subject to the determination of market net rent, all other terms of this Lease extending will continue to apply during the Term on extension of the same terms term, provided, however Landlord will have no obligation to construct any tenant improvements in the premises, to give Tenant any tenant improvement allowance, free rent, or other concession in connection with the extension of the term, or to pay any commission to any broker who represents Tenant, and conditions provided in Landlord and Tenant will sign and deliver a confirmation of the extension of this Lease, except as follows:Lease and the amount of the net rent due during each year of the extension term. Tenant and Landlord agree that time is of the essence with respect to exercising their rights under this section 4.b.

Appears in 1 contract

Samples: Lantronix Inc

Extension Option. Tenant may shall have the option to extend the Term as to term of this Lease for one (1) additional term (the entirety “Renewal Term”) of either or both five (5) years on the terms and conditions set forth herein, provided that Tenant is not in default under this Lease (and the default remains uncured after expiration of the Buildings (as more fully described belowapplicable cure period) for one additional period at the time of 10 yearsexercise and at the commencement of the Renewal Term. The extension option must be exercised, if at all, by delivering written notice of the exercise thereof, including an acknowledgment delivered by the Guarantor that the obligations of Tenant during the extended Term shall be included as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier less than 24 six (6) months nor later than 21 months before prior to the expiration of the current Lease Term (a “Renewal Notice”). If Tenant does not provide Landlord with the Renewal Notice prior to such date, or if Tenant is in default of this Lease beyond any cure period at the time of exercise or at the commencement of the Renewal Term, then such option to extend shall automatically expire and Tenant shall have no additional option or other right to extend the term of this Lease. Tenant acknowledges that strict compliance with the deadline for exercise is a material provision of the Lease. The Basic Base Rent payable for each month by Tenant during such extended the Renewal Term shall be based upon the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases for similar premises in Basic Rent similar buildings in similar locations in Portland, Oregon (the Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal RateComparable Rentals”). Within 30 In computing the market rent for the Premises during the Renewal Term, consideration shall be given to this Lease being a “gross lease”. If Landlord and Tenant are unable to agree upon the Base Rent for the Renewal Term within sixty (60) days after receipt Tenant gives its notice of Tenant’s notice intention to extend, Landlord shall deliver and Tenant will select an independent appraiser satisfactory to both. If Landlord and Tenant written do not agree upon an appraiser within the sixty (60) day period after Tenant gives notice of the Prevailing Rental Rate its intention to extend, then Landlord and all other applicable terms Tenant will each independently select and shall advise Tenant of the required adjustment to Basic Rent, if anycompensate an appraiser, and the other terms and conditions offeredtwo appraisers will then select a third appraiser. Tenant shallThe third appraiser, within 15 business thirty (30) days after receipt of Landlordsuch appraiser’s notice and all supporting documentation and information relating theretoselection, notify Landlord will determine the then current market rental as defined above. The market rate established by the third appraiser will be the rental rate hereunder for the Renewal Term. Each appraiser selected pursuant to this paragraph must be licensed as a real estate appraiser in writing whether Tenant accepts or rejects Landlord’s determination the State of Oregon. The costs of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days of receipt of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, third appraiser will be paid 50% by Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:50% by Tenant.

Appears in 1 contract

Samples: Lease (Pixelworks, Inc)

Extension Option. Tenant may shall have the option to extend the Term as to the entirety of either or both of the Buildings (as more fully described below) for one additional period of 10 yearsthree year extension term (the "Extension Term") by notice given to Landlord at least six months before the Term Expiration Date. Tenant's election shall be exercised, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended and Annual Fixed Rent for each Extension Term shall be included determined, as part of set forth below. If Tenant fails timely to exercise its option for the obligations guaranteed by Guarantor under Extension Term, Tenant shall have no further extension rights hereunder. Tenant's option so to extend the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be the then current prevailing net effective rental rate void, at Landlord's election, if Tenant is in default (continuing beyond any applicable cure period) at the commencement date time Tenant elects to extend the Term or at the time the Term would expire but for such extension. The extension of the extended Term shall be applicable to the entire Premises. During the Extension Term, for extensions of space in buildings (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the “Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal Rate”). Within 30 days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of the required adjustment to Basic Rent, if any, all provisions of this Lease shall apply except that Tenant shall have no further option to extend the Term after the Extension Term. During the Extension Term, Tenant shall pay Annual Fixed Rent equal to 95% of the then-prevailing market rate for three to five year leases of office space in the greater Boston, Massachusetts "Metro-West" area comparable to the Premises in terms of location within a building, finish, age, building quality and amenities for a tenant of equal size and financial strength as Tenant. Landlord shall notify Tenant of its estimate of the other terms and conditions offeredprevailing market rate within ten (10) days after Tenant exercises the extension option. Tenant shallshall have the option to accept or reject by written notice Landlord's estimate, or to withdraw its exercise of the extension option. In the event Tenant rejects Landlord's estimate then the prevailing market rate shall be arbitrated in accordance with the following procedure. Each of Landlord and Tenant, within 15 business twenty (20) days after receipt of notice by Tenant disputing Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination 's estimate of the Prevailing Rental Rate. If Tenant timely notifies Landlord (within 15 business days prevailing market rate, shall appoint as an arbitrator an MAI appraiser with at least ten years experience as an appraiser of receipt of Landlord’s written Boston office buildings, including first class suburban office buildings, and shall give notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms and conditions provided in this Lease, except as follows:such appointment

Appears in 1 contract

Samples: Altarex Corp

Extension Option. Landlord grants to Tenant may an option (the “Option”) to extend the Term as term of this Lease for two (2) additional periods of three (3) years (the “Renewal Term”) under the terms set forth below. Tenant shall not be entitled to exercise the Option unless each of the following conditions shall be fully satisfied at the time of its exercise: (i) the Lease shall be in full force and effect; (ii) the Tenant originally named in this Lease or a permitted assignee shall be in possession of the entire Premises; and (iii) Tenant shall not have been in default under any of the material terms, provisions, covenants or conditions of the Lease. In order to exercise the Option, Tenant must first give written request to Landlord, not less than six (6) months prior to the entirety of either or both Expiration Date of the Buildings (Lease Term, for delivery of Landlord’s determination of Market Rent, as more fully described defined below) . Base Rent for one additional period of 10 years, by delivering written notice of the exercise thereof, including an acknowledgment by the Guarantor that the obligations of Tenant during the extended Renewal Term shall be included equal to the Market Rent, as part of the obligations guaranteed by Guarantor under the Guarantee, to Landlord not earlier than 24 months nor later than 21 months before the expiration of the Term. The Basic Rent payable for each month during such extended Term shall be the then current prevailing net effective rental rate at the commencement date of the extended Term, for extensions of space determined in buildings accordance with this section (including the Buildings and related complex) of equivalent quality, size, utility and location within the former City of Kanata submarket, with the length of the extended Term and the credit standing of Tenant and the guarantee of the Guarantor to be taken into account, together with any tenant inducements payable or contributed by landlords of such premises/tenancies (such as cash allowances, free rent, landlord’s works) so as to achieve current net effective market rental rates with periodic increases in Basic Rent (the Prevailing Rental Rate”) multiplied by 95%. In no event, however, shall the Basic Rent in the extended Term be less than the Basic Rent rate per rentable square foot in effect during the last calendar month in the immediately preceding Term (the “Minimum Renewal RateMarket Rent”). Within 30 thirty (30) days after following its receipt of Tenant’s notice to extendrequest, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and all other applicable terms and shall advise Tenant of Market Rent for each year of the required adjustment to Basic Rent, if any, and Renewal Term. Landlord shall determine Market Rent (including escalations for each successive year of the other terms and conditions offeredRenewal Term) in its reasonable judgment. Tenant shall, within 15 business days after receipt of Landlord’s notice and all supporting documentation and information relating thereto, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental RateMarket Rent shall be based, as Landlord reasonably deems appropriate, upon then current and projected rents for space in the Building, adjusted for any special conditions applicable to such space and leases, for location, length of term, amount of space and other factors Landlord deems relevant in computing rents for space in the Building, including adjustments for anticipated inflation. If Landlord and Tenant timely notifies are unable to agree upon Market Rent, Tenant may nevertheless exercise its option by notifying Landlord, within 30 days from the date on which Tenant was first advised by Landlord (within 15 business days of receipt its initial determination of Landlord’s written notice of the Prevailing Rental Rate together with all supporting information relating thereto as aforesaid) Market Rent, that Tenant accepts has elected to exercise the Option at the Market Rent determined by Landlord subject to a reservation of Tenant’s right to arbitrate Landlord’s determination of Market Rent in accordance with this Section. If the Prevailing Rental Rateparties cannot agree in writing on Market Rent and Tenant timely exercises the Option, thenthen within thirty (30) days after Tenant’s exercise of the Option, Tenant and Landlord shall each select a licensed MAI appraiser with at least ten (10) years substantial commercial leasing expertise particularly in this area of Palm Beach County, Florida and notify the other party of such selection. The selected appraisers shall in turn select a similar third appraiser who will determine Market Rent. The parties shall share equally the cost of the third appraiser. If either party fails to timely select an appraiser and notify the other party of such selection, the other party’s timely selected appraiser shall unilaterally determine Market Rent. If Tenant elects to exercise the Option subject to its reservation to contest Market Rent, Tenant shall nonetheless on or before the commencement date of the Renewal Term begin paying Base Rent at Market Rent determined by Landlord. If Market Rent is ultimately determined to be other than the amount initially determined by Landlord, the next due payment or payments of Rent shall be appropriately adjusted to reflect such overpayment or underpayment retroactive to commencement of the Renewal Term. If Tenant exercises the Option as provided, the Expiration Date of the Lease shall be extended Term, Landlord for the length of the Renewal Term and Base Rent shall be adjusted to Market Rent. If Tenant shall execute an amendment fail to this Lease extending timely exercise the Option as provided, Tenant shall be deemed to have waived its right to exercise the Option and to occupy the Premises beyond the initial Term on of the same terms and conditions provided in this Lease, except as follows:.

Appears in 1 contract

Samples: Lease Agreement (Pc Connection Inc)

Time is Money Join Law Insider Premium to draft better contracts faster.