Contraction Option Clause Samples
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Contraction Option. (a) Tenant shall have the one-time right, at its sole option, to surrender to Landlord a portion of the Demised Premises (the “Contraction Option”) up to but not exceeding 10,135 rentable square feet (measured in accordance with Section 2.2 hereof), comprised of a portion of the Demised Premises provided that such portion shall be contiguous and of a configuration so that is reasonably marketable and shall have reasonable and code compliant access and egress (the “Surrender Premises”) effective at the end of the sixth (6th) full Lease Year, (the “Contraction Option Date”) provided, however, that the effectiveness of the exercise of the Contraction Option shall be conditioned upon (i) Tenant delivering a Notice to Landlord exercising the Contraction Option (the “Contraction Option Notice”) not later than the conclusion of the fifth (5th) Lease Year of the initial Term, together with a floor plan identifying the portion of the Demised Premises which shall comprise the Surrender Premises; and (ii) Tenant’s payment to Landlord, on or prior to the Contraction Option Date, of the “Contraction Payment” (as hereinafter defined) equal to the sum of the unamortized portion of the Lease Costs, as hereinafter defined, calculated using an eight percent (8%) interest rate, and multiplied by the fraction where the numerator is the rentable area of the Surrender Premises and the denominator is the rentable area of the Demised Premises (including the Surrender Premises), plus the amount which is equal to three (3) months of Basic Rental payable for the Surrender Premises at the time of the Contraction Option Date (the “Contraction Payment”). For the purposes hereof, Lease Costs shall be defined as the sum of: (w) the Tenant Improvement Allowance, as hereinafter defined, or the portion thereof so utilized by Tenant, (x) the aggregate dollar value of the rental abatement granted to Tenant for the Demised Premises pursuant to Section 1(g) hereof, plus (z) the aggregate dollar amount of all commissions paid to the Brokers in connection with this Lease. Failure of Tenant to make the Contraction Payment in accordance with this paragraph shall render this Contraction Option void and of no effect. Time is of the essence of delivery of the Contraction Option Notice and the Contraction Payment.
(b) In the event that Tenant shall give the Contraction Option Notice and shall otherwise comply with the conditions of the exercise of Tenant’s right to contract the Demised Premises as prov...
Contraction Option. The option to contract granted by Landlord to Tenant under this Lease shall be as set forth in Exhibit C hereto and is specifically incorporated herein by reference.
Contraction Option. (a) Tenant shall have the right to surrender to Landlord the entire 17th Level of the Building (such floor being the "Contracted Portion of the Leased Premises"), at any time on or after March 30, 2007 (such date of surrender being the "Contraction Date") upon irrevocable written notice (the "Contraction Notice") of such election delivered to Landlord not less than 12 months prior to the Contraction Date together with payment to Landlord of the Contraction Payment on or prior to the Contraction Date. The occurrence of any of the following shall render the Contraction Notice null and void:
(i) Tenant's failure to pay the Contraction Payment prior to the Contraction Date;
(ii) the existence of a Material Event of Default as of the delivery date of the Contraction Notice; or
(iii) Tenant's failure to deliver to Landlord the Contracted Portion of the Leased Premises no later than the Contraction Date.
Contraction Option. Lessee shall have the right to give back the first floor Premises (3,067 rentable square feet), without penalty, by providing Lessor not less than six (6) months prior written notice.
Contraction Option. Tenant shall have the right, effective as of the first day of the seventy-third (73rd) month of the Lease Term (“Contraction Date”), to reduce the area of the Premises by up to two full floors by deleting from the Premises one of the following: (a) the entire 3rd and 4th floors, (b) the entire 3rd floor, (c) the entire 4th floor, (d) one-half of the 3rd floor, or (e) one-half of the 4th floor. To exercise its option to contract pursuant to this Subsection 2.03, Tenant shall provide Landlord with written notice of such election no later than the last day of the 60th month of the Lease Term, which notice shall state which portion of the Premises (one only of alternatives (a) – (e) above) Tenant elects to delete from the Premises. In the event Tenant elects to delete one-half of a floor pursuant to alternatives (d) or (e) above, Tenant’s notice shall also state which one-half of the floor Tenant elects to delete from the Premises. In the event Tenant timely exercises its contraction rights hereunder, Landlord and Tenant shall enter into an amendment to this Lease reducing the area of the Premises as of the Contraction Date and reducing the Base Rent, Tenant’s Share and parking stall allocation proportionately. Tenant shall be required to vacate the applicable portion of the Premises by no later than the Contraction Date. In the event the Premises are reduced by a half floor pursuant to alternatives (d) or (e) above, Tenant shall allow Landlord access to the Premises as reasonably necessary in order for Landlord to demise the portion of the Premises deleted pursuant to this Subsection.
Contraction Option. By virtue of Tenant’s exercise of its Contraction Option, as of the Effective Date, Addendum Four to the Lease is of no further force or effect.
Contraction Option. (a) Tenant shall have one (1) contraction option with respect to the Premises on the terms set forth below. Provided that Tenant is not in Material Default under this Lease, Tenant shall have the right, exercisable upon not less than twelve (12) months prior written notice to Landlord (the “Contraction Notice”), to reduce the size of the Premises (the “Contraction Right”) by surrendering a portion thereof (the “Surrendered Space”) to Landlord effective as set forth below:
Contraction Option. Tenant shall have two (2) options to reduce the Premises, one (1) as of the end of the sixtieth (60th) month of the initial Term of the Lease, (the "First Contraction Date"); and one (1) as of the end of the ninety-sixth (96th) month of the initial Term of the Lease, (the "Second Contraction Date") as further described herein below. Such "Contraction Options" shall be strictly contingent upon and subject to the following terms and conditions:
Contraction Option. Effective as of the Modification Effective Date, Tenant’s contraction option regarding space on floor 15 of the Building as set forth in Rider No. 5 attached to the Twenty-First Amendment is deleted in its entirety.
Contraction Option. Tenant shall have a one-time option to reduce its occupancy in the Building by up to twenty-five (25%) of the useable space that constitutes Tenant's Initial Premises at the end of the fifth (5th) year of the initial ten (10) year lease term. Tenant shall notify the Landlord of its intent to contract no later than six (6) months prior to such effective contraction date and pay to Landlord a contraction fee equal to the unamortized portion (straight-line, no interest) of all concessions given to Tenant to include the following: Base Rent Abatement, Tenant Improvement Allowance, Space Planning Allowance, Moving Allowance, and Brokerage Commissions, as it relates to the reduced square footage. Tenant's reimbursement shall be payable to Landlord on or before the end of the month preceding the effective contraction date. If Tenant exercises its right to contract, Tenant's First Right of Refusal option shall be terminated. In the event that the contraction option is exercised, the parties shall each execute an amendment to this Lease so reflecting the new terms.