Common use of Expansion Option Clause in Contracts

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option to construct a maximum of an additional 150,000 square foot expansion to the Leased Premises (the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirements. Tenant shall deliver to Landlord preliminary plans and specifications for the Expansion Space together with Tenant's notice of the exercise of the Expansion Option. In the event that the Expansion Space shall be a free-standing building, Landlord shall have no obligation to provide a bid to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such construction. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Lease beyond the

Appears in 1 contract

Sources: Industrial Net Lease Agreement (Systemax Inc)

Expansion Option. 25.1 Provided no Event of Default exists, Tenant may lease up to 5,175 Rentable Square Feet designated on Exhibit A-1 (the “Expansion Space”), by delivering to Landlord, on or before December 31, 2017, written notice of Tenant’s election to include such space in the Premises, which notice must include the portion of the Expansion Space that Tenant intends to occupy. If Tenant timely exercises its option, then (a) At all times during the Lease Term, so long as no Default on the part possession of Tenant then exists, Tenant shall have the option to construct a maximum of an additional 150,000 square foot expansion to the Leased Premises (the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirements. Tenant shall deliver to Landlord preliminary plans and specifications for the Expansion Space together with Tenant's notice of the exercise of the Expansion Option. In the event that the Expansion Space shall be a freedelivered to Tenant in an “AS-standing building, IS” condition on the date Landlord shall have no obligation to provide a bid to construct same. In the event that delivers possession of the Expansion Space shall be attached to Tenant (the Building“Expansion Date”), and (b) Tenant and Landlord shall be obligated execute an amendment to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide this Lease including the Expansion Space in the Premises on the same terms as requested this Lease, except as follows: (i) the Rentable Square Feet of the Premises shall be increased by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Rentable Square Feet in the Expansion Space. In ; and (ii) the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Basic Rent for the Expansion Space shall reflect current market conditionsbe equal to the per Rentable Square Foot Basic Rent for the Premises then currently payable (provided, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord will ▇▇▇▇▇ Basic Rent and Tenant. This extension associated with Expansion Space shall not be one ’s Proportionate Share of the Extensions provided to Tenant under Section 2.05, Operating Expense Rental and Base Rent due from Tenant Real Estate Tax Rental for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space for the first one hundred twenty (120) days following the Expansion Date) and expends no funds in connection Landlord will provide Tenant with the same per square foot Tenant Work Allowance as provided for the Premises, multiplied times a fraction, the numerator of which is the number of months remaining in the Term as of the date of the Expansion Space, no additional Base Rent shall be due Landlord as a consequence Date and the denominator of such constructionwhich is the number of months in the Term. 25.2 If Tenant fails or is unable to timely exercise its right hereunder, such right shall lapse, time being of the essence with respect to the exercise thereof (it being understood that Tenant’s right hereunder is a one-time right only), and Landlord may lease all or a portion of the Expansion Space to third parties on such terms as Landlord may elect, subject to Article XXVIII. Tenant’s rights under this Article XXV shall terminate if (a) this Lease or Tenant’s right to possession of the Premises is terminated, (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time assigns any of its interest in this Lease or sublets any portion of the exercisePremises, Tenant shall not be or (c) Landlord determines, in default under any of its sole but reasonable discretion, that Tenant’s financial condition or creditworthiness has materially deteriorated since the provisions date of this Lease beyond theLease. Park Ten Plaza – RigNet, Inc. Table of Contents

Appears in 1 contract

Sources: Office Lease (RigNet, Inc.)

Expansion Option. (a) At all times during Article 42 and Exhibit F of the Lease Termare hereby deleted in their entirety and the following is substituted in their place: EXPANSION OPTION. Provided Tenant is not then in default under the terms, so long as no Default on covenants and conditions of the part of Tenant then existsLease, Tenant shall have the option right to construct a maximum lease approximately four thousand six hundred (4,600) rentable square feet on the seventh floor of an additional 150,000 square foot expansion the Building as shown on Exhibit A hereto (as the “Second Expansion Premises”) provided Tenant gives written notice to Landlord on or before January 1, 2013 of its exercise of its right to lease the Leased Second Expansion Premises effective August 1, 2013. If Tenant exercises its right to lease hereunder the Second Expansion Premises, effective August 1, 2013, the Second Expansion Premises shall automatically be included within the Premises and subject to all the terms and conditions of the Lease, except as follows: (a) Tenant’s Proportionate Share for the "Second Expansion Space".) The Expansion Space Premises shall be located at a location as reasonably required by Tenant 1.43%, and otherwise complying with all applicable municipal requirements. Tenant the Base Year for Expenses, Insurance shall deliver to Landlord preliminary plans and specifications be the Calendar Year 2014and for Taxes shall be the Fiscal Year 2014 for the Second Expansion Space together with Tenant's notice of the exercise of the Expansion Option. In the event that the Expansion Space Premises (b) Such space shall be a free-standing building, leased on an “as is” basis and Landlord shall have no obligation to provide improve the space but shall grant to Tenant a bid to construct same. In fair market tenant improvement allowance. (c) The length of the event that the Expansion Space term shall be attached to co-terminus with the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term Term under this Lease and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant Annual Rent and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all Monthly Installment of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord the then current fair market rental for comparable space in the Building and in other similar buildings in the same rental market as a consequence of such constructiondetermined under Article 40. (bd) The Expansion Option Security Deposit requirement and allocation of parking passes at the then applicable monthly fee shall be exercised only proportionately increased. (e) If requested by written notice delivered Landlord, Tenant shall, prior to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time beginning of the exerciseterm for the Second Expansion Premises, Tenant shall not be in default under any execute a written memorandum confirming the inclusion of the provisions Second Expansion Premises and the Annual Rent and Monthly Installment of this Lease beyond theRent.

Appears in 1 contract

Sources: Lease (Art Technology Group Inc)

Expansion Option. A. Landlord agrees that, with respect to any full floor of space currently leased to ▇▇▇▇ Elsevier, Inc. (a"▇▇▇▇"), Tenant shall, provided Tenant is not then in default of this Lease beyond any applicable notice and cure periods and provided ▇▇▇▇ fails to renew or extend the term of its lease, have the option to lease such space provided Tenant notifies Landlord of its election to do so not later than December 24, 2000 (which is fifteen months and one week prior to the current Read lease expiration date of March 31, 2002) At all times ("Tenant's Notice"). If Tenant shall notify Landlord in writing of its election to enter into such lease as tenant for such additional premises within said period Landlord shall, on or before January 15, 2001, advise Tenant concerning ▇▇▇▇'▇ extension or failure to extend the term of its lease and, if ▇▇▇▇ fails to exercise its option, Landlord shall subsequently deliver and Tenant shall execute a modification of this Lease incorporating the rent, terms and conditions with respect to the additional premises. Time is of the essence with respect to Tenant's exercise of such expansion option. The term of Tenant's leasing such premises shall be from the date ▇▇▇▇ vacates such space until June 15, 2012. The Fixed Rent during such (approximately) ten year and two month period shall be at the greater of 95% of Fair Market Value ("FMV"), as hereinafter defined, or as provided in paragraph 2 of the Fourth Lease Modification Agreement. The Base Year shall be as provided in paragraph 3 of the Fourth Lease Modification Agreement. FMV shall be determined by mutual agreement of the parties. If the parties are unable to agree on the FMV, the parties shall choose a licensed Real Estate Appraiser who shall determine the FMV. The cost of said Real Estate Appraiser shall be borne equally by the parties. If the parties are unable to agree on a licensed Real Estate Appraiser, each party shall select one Appraiser to appraise the FMV. If the difference between the two appraisals is 20% or less of the lower appraisal, then the FMV shall be the average of the two appraisals. If the difference between the two appraisals is greater than 20% of the lower appraisal, the two Appraisers shall select a third licensed Real Estate Appraiser to appraise the FMV. The FMV shall in such case be the average of the three appraisals. The cost of the third appraisal shall be borne equally by the parties. B. If Tenant shall fail to notify Landlord in writing of its election to enter into a modification to its lease incorporating the additional premises, within the period referred to in subsection (A) hereof, then the expansion option granted to the Tenant as set forth in subsection (A) of this Section shall automatically terminate and come to and end. C. This right of first refusal so granted to Tenant shall terminate and become null and void upon the expiration or sooner termination of this Lease. D. Notwithstanding anything contained herein or in the Lease Termto the contrary, so long in the event Tenant exercises its right to expand by forwarding the Tenant's Notice as no Default on the part provided in subsection (A) of Tenant then existsthis section, Tenant shall have waived, automatically and without any further documentation, its right as provided in paragraph 6 of the option Fourth Lease Modification Agreement to construct a maximum cancel the Lease effective as of an additional 150,000 square foot expansion June 15, 2007. The foregoing shall not alter or modify Tenant's right to cancel on June 15, 2012, subject to the Leased Premises (the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirements. Tenant shall deliver to Landlord preliminary plans and specifications for the Expansion Space together with Tenant's notice terms of such paragraph 6 of the exercise of the Expansion Option. In the event that the Expansion Space shall be a free-standing building, Landlord shall have no obligation to provide a bid to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Fourth Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such constructionModification Agreement. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Lease beyond the

Appears in 1 contract

Sources: Lease Modification Agreement (Alliance Capital Management Lp)

Expansion Option. Landlord holds development rights under the Special Permit for an additional building as shown on Exhibit 25.01, attached (athe “Proposed Additional Building”). Landlord acknowledges that Landlord shall not, prior to the Outside Expansion Request date (as hereinafter defined) At all times during build the Lease TermProposed Additional Building and/or any related parking facilities, so long except as no Default on requested by Tenant pursuant to this Section 25.01. Tenant acknowledges that Landlord, pursuant to Section 20.11, has the part of Tenant then existsright to build the Proposed Additional Building and related parking facilities, subject to the immediately preceding sentence. Tenant shall have the right, prior to the third anniversary of the Effective Date (the “Outside Expansion Request Date”) to request that Landlord pursue the development of the Proposed Additional Building by written notice (an “Expansion Notice”) to Landlord. Following the giving of such written notice, Landlord and Tenant shall cooperate in good faith to agree upon a schedule and budget for any such development, which shall include a pre-development phase for any additional required permitting. Any such expansion shall be conditioned upon (i) the parties entering into a mutually agreeable lease agreement at market rent (taking into account the financing available in the market, and allowing a market return to Landlord on its costs to construct the Proposed Additional Building, associated parking garage, site work, any offsite replacement parking or related improvements required to comply with applicable laws, codes and ordinances (including but not limited to the Pedestrian Bridge, but nothing in this sentence shall be deemed to make Tenant responsible for the cost to construct the Pedestrian Bridge if Tenant does not enter into a lease for the Proposed Additional Building pursuant to this Section 25.01), and for a term that is co-terminus with the term of this Lease but no less than 12 years (without use of extension options; however, in connection with a lease of the Proposed Additional Building, Tenant shall be granted the option to construct a maximum of exercise an additional 150,000 square foot expansion interim right to extend the Leased Premises term of this Lease by up to two years to make this Lease co-terminus with such Proposed Additional Building lease, such interim extension to be on the terms of this Lease with Annual Base Rent increasing in the same manner during such period as Annual Base Rent increases during the initial term of this Lease and to be exercised, if at all, by notice to Landlord given with the Expansion Notice) and (ii) Landlord's ability to obtain the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirementsnecessary additional permits for such expansion, if any (using good faith, commercially reasonable efforts to do so). Tenant shall deliver have no right to Landlord preliminary plans give an Expansion Notice under this section at any time that (A) an Event of Default then exists, (B) Tenant ceases to occupy at least 66% of the Premises, or (C) Tenant and specifications Guarantor (collectively) have a market capitalization, gross annual revenues (for the Expansion Space together with Tenant's notice of 12 month period prior to the exercise giving of the Expansion OptionNotice), and liquidity (determined in each case in accordance with generally accepted accounting principles, consistently applied) that are less than 75% of the market capitalization, gross annual revenues, and liquidity of Tenant and Guarantor (collectively) as of the Effective Date, as reasonably evidenced to Landlord. In For the event avoidance of doubt, the 75% or greater test for purposes of clause (C) of the immediately preceding sentence must be satisfied for all three of the financial metrics for such test to be satisfied. Following the date, if any, that Tenant timely gives an Expansion Notice, Landlord may assign its obligations under this Section 25.01 to a separate entity that holds only the development rights for the Proposed Additional Building for purposes of separately financing the Proposed Additional Building. Prior to the date that is the first to occur of the Outside Expansion Space shall be a free-standing buildingRequest Date or the date that Tenant timely gives an Expansion Notice, Landlord shall have no obligation to provide a bid to construct same. In not assign or convey the event that the Expansion Space shall be attached development rights to the Building, Landlord shall be obligated Proposed Additional Building (other than an in connection with an assignment or conveyance of this Lease to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept successor Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such construction. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Section 25.01 are personal to the Tenant or any Permitted Transferee succeeding to the interest of Tenant in this Lease beyond theby assignment or operation of law.

Appears in 1 contract

Sources: Lease Agreement (Alkermes Plc.)

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option right to construct a maximum expand into the balance of an additional 150,000 square foot expansion to the Leased Premises Building (the "Expansion Space") by providing notice (the "Expansion Notice") to Landlord of its election to do so at any time prior to September 1, 1998. (a) The Following receipt of the Expansion Space shall be located at a location as reasonably required by Tenant Notice, Landlord and otherwise complying with all applicable municipal requirements. Tenant shall deliver have thirty (30) days in which to Landlord preliminary plans and specifications for negotiate an amendment to this Lease to incorporate the Expansion Space together with Tenant's notice of into the exercise of the Expansion Option. In the event that the Expansion Space shall be Premises, set a free-standing building, Landlord shall have no obligation to provide a bid to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The new Base Rent for the Expansion Space shall reflect current market conditionsSpace, and the Lease set a new Term. The amendment shall reflect such other relevant terms also include the following provisions: (1) Landlord shall provide a roll-up door for the purpose of loading and conditions as are specified unloading trucks or delivery vehicles at a convenient location in Landlord's proposal the Expansion Space; (2) The early termination right of Tenant set forth in paragraph 4 above shall be deemed waived; (3) Tenant shall provide for its own power (gas and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of electricity) for the Extensions provided to Tenant under Section 2.05entire Premises; in consideration, and the Base Rent due from Tenant for on the Leased existing Premises leased originally hereunder shall increase by two percent be reduced fifteen cents (2%15c) per annum for rentable square foot per month; the period that the Lease Term is extended under this Section 2.06, Base Rent negotiated on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space will already reflect that Tenant is providing and expends no funds in connection with paying for this utility; and (4) Landlord shall have until February 1, 1999 to deliver occupancy of the Expansion Space, no additional Base Rent shall but Tenant may occupy sooner if Landlord notifies Tenant that the Expansion Space will be due Landlord as a consequence of such constructionready before that time. (b) If the Expansion Notice is not timely given, then Tenant shall vacate, upon fifteen (15) days notice from Landlord, the lobby and corridor space (the "Reception Area") which is shown as shaded area on Exhibit B-2. Until such notice is given by Landlord, Tenant has the exclusive right to occupy the Reception Area without any additional charge for Base Rent. Following the notice by Landlord and vacation by Tenant, the Reception Area and adjacent restrooms shall become Common Area for the Building and its other tenants. The Expansion Option cost of changing the Reception Area into Common Area shall be exercised only by written notice delivered to Landlord. The Expansion Option included as part of the Tenant Improvement Allowance or, if the Tenant Improvement Allowance is insufficient, shall be exercisable paid for by Tenant on the express conditions that at the time of the exerciseTenant, Tenant shall not be in default under any of the provisions of this Lease beyond thecash, upon completion.

Appears in 1 contract

Sources: Full Service Lease (Cerent Corp)

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option right to construct enlarge the area of the Premises by a maximum minimum of an 6,000 additional 150,000 square foot expansion feet of rentable area. In the event Tenant notifies Landlord ("Expansion Notice") of its desire to the Leased Premises lease a minimum of 6,000 additional square feet of rentable area, Landlord shall use reasonable efforts to deliver said additional space (the "Expansion Space".) The Expansion Space shall be located at a location either in the Tenant's existing Building or another building within Westmoor Technology Park as reasonably required determined by Tenant and otherwise complying with all applicable municipal requirementsLandlord, within nine (9) months of the receipt of Tenant's notice. Tenant shall deliver to Landlord preliminary plans and specifications for Upon delivery of the Expansion Space together with Tenant's notice the terms and conditions of the exercise Lease shall be modified as follows: A. The term of the Expansion Option. In the event that Lease for the Expansion Space shall be a free-standing buildingfive (5) years. B. If the Expansion Space is within the Building and the Expansion Notice is delivered within the first eighteen (18) months of the Lease Commencement Date, Landlord shall have no obligation to provide a bid to construct same. In the event that Base Rent for the Expansion Space shall be attached to the Building, Landlord rate then in effect for the existing Premises and the Tenant Improvement Allowance shall be obligated to issue a proposal to construct the same at a bid price which shall be competitive to other similar institutional quality industrial construction projects as for the Premises, provided the expansion occurs in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ space not previously leased. C. The term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, of the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on for the Expansion Space being performed or commenced, and the Lease Term for all of the Leased existing Premises shall be extended so that it expires ten (10) years after as to be coterminous with the date Base Rent is first due term of the Lease for the Expansion Space (which shall have the same ten (10) year Lease Term)Space. The Base Rent for the Expansion Space shall reflect current market conditions, and the be as provided for under this Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06Premises. If however, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with has previously been occupied, the Tenant Improvement Allowance shall be the then equivalent to that which is being given for comparable space being leased within the Park at comparable rental rates. D. If the Expansion SpaceNotice is received after the first eighteen (18) months of the Primary Lease Term or the expansion occurs at any time in a building within Westmoor Technology Park other than the Building, no additional the Base Rent Rental Rate shall be due Landlord the then current market rate being charged for the Expansion Space as a consequence of such constructiondetermined by Landlord. (b) E. The Expansion Option Notice shall be exercised only by written notice delivered no later than twelve (12) months prior to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time expiration of the exercise, Tenant shall not be in default under any of the provisions of this Primary Lease beyond theTerm.

Appears in 1 contract

Sources: Lease (Channelpoint Inc)

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option at any time during the Term to construct a maximum of an additional 150,000 cause Landlord to expand the original Premises (Building A) to approximately 80,000 rentable square foot feet and lease the expansion to the Leased Premises space (the "Building A Expansion Space") to Tenant, subject to all of the terms and conditions of this Section 9. A. The following are the conditions precedent to Tenant's right to exercise its Building A Expansion Option: (i) Tenant must deliver to Landlord written notice exercising its right to Lease the Building A Expansion Space; (ii) Tenant, at the time of such notice, must not be in monetary default (beyond any applicable notice and cure period in this Lease) or default described in Section 26(a)(iv); and (iii) Tenant, at the time of such notice, must be leasing all or substantially all of Building A, and Tenant must not be planning to vacate, assign or sublet any of the space in Building A at the time Tenant expands into the Building A Expansion Space. B. If Tenant properly exercises the Building A Expansion Option as provided above, Landlord and Tenant shall enter into a lease or amendment to this Lease with respect to the Building A Expansion Space containing the following terms: (i) Landlord will be obligated to construct the Building A Expansion Space and requisite parking and other related site improvements, if any, within 9 months of the date such lease or amendment to lease is entered into by Landlord and Tenant, subject only to delays outside of the reasonable control of Landlord. The design, exterior materials and quality of the Building A Expansion Space shall be located at a location consistent with the remainder of the Building A base building so as reasonably required by Tenant to keep the relative cost (adjusted for changes in the costs of labor and otherwise complying with all applicable municipal requirements. Tenant shall deliver materials) per rentable square foot of the Building A Expansion Space comparable to Landlord preliminary plans and specifications that of the remainder of Building A. (ii) The term of the lease for the Expansion Space together with Tenant's notice of the exercise of the Expansion Option. In the event that the Building A Expansion Space shall be a free-standing building, Landlord shall have no obligation to provide a bid to construct same. In commence upon the event that substantial completion of Landlord's construction of the Building A Expansion Space shall be attached to (the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the "Building A Expansion Space as requested by Tenant. TenantCommencement Date"), at its optionand shall expire upon the expiration or termination of the Term of this Lease; provided, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event however, that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work if less than 5 years remains on the Term of this Lease (including any extension options exercised by Tenant as of the Building A Expansion Space being performed or commencedCommencement Date), and then the Term of this Lease Term for all of the Leased Premises (Section 36 [Tenant's Option to Terminate] notwithstanding) shall be extended so that it expires ten this Lease and the lease of the Building A Expansion Space shall expire on the fifth anniversary of the Building A Expansion Space Commencement Date or such other date as to which Landlord and Tenant may mutually agree. If the Term is so extended, any unexercised and unexpired options to extend the Term under Section 31 of the Lease shall be pushed out so that the full extension term, if exercised, would commence as of the expiration of the Term or extended Term, as the case may be, as extended pursuant to this subsection (10) b). If such extension term, as pushed back, goes beyond lease year 19, Minimum Annual Rent for subsequent lease years after the date Base Rent is first due shall continue to increase at 2% per annum. For example, if Tenant entered into a five-year lease for the Building A Expansion Space commencing at the beginning of year eight of the ten-year initial Term of this Lease, the Term of this Lease would be extended through year twelve, and the first three-year extension term would commence, if exercised, at the beginning of year thirteen (which and the scheduled rental rates per rentable square foot under Section 31 for years 13 through 15 would apply to the first extension term with respect to the original Premises). (iii) The Annual Minimum Rent for the Building A Expansion Space for the first lease year shall have be an amount equal to the same ten product of (10i) year Lease Termthe "Building A Expansion Costs" (as defined below), multiplied by (ii) the "Finance Rate" (as defined below). The Base Annual Minimum Rent for the Building A Expansion Space for each lease year subsequent to the first lease year shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one an amount equal to 102% of the Extensions provided to Tenant under Section 2.05, and Base scheduled Annual Minimum Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such constructionimmediately preceding lease year. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Lease beyond the

Appears in 1 contract

Sources: Lease Agreement (Ontrack Data International Inc)

Expansion Option. (a) At all times 41.1 Tenant has the right, but not the obligation, to add to the Premises during the Lease TermInitial Term of this Lease, so long as no Default in accordance with the provisions of this Section 41, an additional area containing approximately twenty thousand (20,000) Rentable Square Feet (“Expansion Space”), which will consist of an expansion of the existing Building (“Expansion”) on the part of Tenant then exists, Tenant shall have Real Property and on the option to construct a maximum of an additional 150,000 square foot expansion real property adjacent to the Leased Premises Real Property as shown on the site plan attached hereto as Exhibit I (the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirementsParcel”). Tenant shall deliver exercise its right to Landlord preliminary plans and specifications for add the Expansion Space together with Tenant's to the Premises by giving written notice to Landlord on or before the second anniversary of the exercise of Rent Commencement Date hereunder (the Expansion Option. In the event that the Expansion Space Notice”). 41.2 Tenant shall be a freeprovided with an tenant improvement allowance of no less than Forty-standing building, Landlord shall have no obligation Six and 00/100 Dollars ($46.00) per Rentable Square Foot allocated to provide a bid to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space will be the fair market rent for comparable space in a comparable building in the master-planned community known as “Centerra” or any other similar master-planned community in northern Colorado as reasonably determined by Landlord, provided, however, in no event shall reflect the Base Rent per Rentable Square Foot of the Expansion Space be less than the then current Base Rent per Rentable Square Foot being charged by Landlord to Tenant for the rental of the original Premises (i.e., 50,000 Rentable Square Feet). Within thirty (30) days after Landlord’s receipt of the Expansion Notice, Landlord will notify Tenant of the proposed fair market conditionsrent for the Expansion Space taking into account factors such as (but not limited to) the rental rate currently charged by Landlord for space at the Building Complex, the term of the lease of the Expansion Space, brokerage commissions, and any leasehold improvement allowances (including the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions tenant improvement allowance provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space) or other inducements being offered (the “Fair Market Rent”). In the event that Tenant does not agree with Landlord’s determination and the parties cannot thereafter mutually agree upon the Fair Market Rent for the Expansion Space within ten (10) days after delivery of the initial determination by Landlord, no additional Base then the Fair Market Rent for the Expansion Space shall be determined as follows: (i) Landlord and Tenant, within ten (10) days after the expiration of such ten (10) day period, shall each select an appraiser who is a member of the American Institute of Real Estate Appraisers having at least ten (10) years’ experience in northern Colorado to determine the Fair Market Rent (respectively, “Landlord’s Appraiser” and “Tenant’s Appraiser”). (ii) Landlord’s Appraiser and Tenant’s Appraiser shall conduct independent appraisals to determine the Fair Market Rent and provide their results to the parties within thirty (30) days of their selection. If the appraisals of Fair Market Rent produced by Landlord’s Appraiser and Tenant’s Appraiser shall not differ by a margin of greater than five percent (5%), then the Fair Market Rent shall be due determined by taking the average of the two appraisals. If the said appraisals shall differ by more than five percent (5%), then Landlord’s Appraiser and Tenant’s Appraiser shall, within fourteen (14) days after the initial exchange of their respective determinations, jointly select a third appraiser having the qualifications described above (the “Third Appraiser”). The Third Appraiser shall not have acted in any capacity for either Landlord or Tenant, or their affiliates, within five (5) years before his or her selection. The Third Appraiser shall review the prior independent appraisals produced by Landlord’s Appraiser and Tenant’s Appraiser, each of whom shall make available to the Third Appraiser all relevant backup materials that they used in making their own determinations. Within thirty (30) days after being appointed the Third Appraiser shall report in writing to the parties and their respective Appraisers his or her determination of which of the two appraisals of Fair Market Rent is closest to the determination of Fair Market Rent that the Third Appraiser would have made acting alone and independently, it being understood that the Third Appraiser shall be expressly prohibited from selecting a compromise figure. The results of the appraisal process and determination of the Fair Market Rent, whether the result of the averaging of the respective determinations of Fair Market Rent by Landlord’s Appraiser and Tenant’s Appraiser or the determination of the Third Appraiser as a consequence set forth above, shall be deemed final and binding upon the parties (except to the extent otherwise provided herein). Each party shall pay the fees and expenses of such constructionthe appraiser it selected and the fees and expenses of the Third Appraiser shall be borne equally by both parties. (biii) The Expansion Option If Landlord or Tenant shall have failed to designate an appraiser within the time period provided therefor above, then the appraiser which has been designated, whether by Landlord or Tenant, shall alone make the determination of the Fair Market Rent. If Tenant and Landlord have both designated appraisers but the two appraisers so designated do not agree upon and designate the Third Appraiser willing so to act within the time period provided therefor above, the Tenant, the Landlord or either appraiser previously designated may request the American Arbitration Association (“AAA”) to designate the Third Appraiser willing so to act and an appraiser so appointed shall, for all purposes, have the same standing and powers as though such appraiser had been seasonably appointed by the appraisers first appointed. In case of the inability or refusal to serve of any person designated as an appraiser, or in case any appraiser for any reason ceases to be such, an appraiser to fill such vacancy shall be exercised only appointed by the Tenant, the Landlord, the appraiser first appointed or the said AAA, as the case may be, which ever made the original appointment. 41.3 Tenant shall have the right, within fifteen (15) days after the determination of the Fair Market Rent as set forth in Section 41.2 above, to either (i) rescind the exercise of its option to lease the Expansion Space or (ii) accept the determination of the Fair Market Rent for the Expansion Space. Tenant shall provide written notice delivered of such rescission or acceptance to LandlordLandlord within said fifteen (15) day period (the “Expansion Accept/Reject Notice”). If Tenant elects to accept the appraisers’ determination, Landlord and Tenant shall enter into the Expansion Amendment and Expansion Work Letter and Landlord shall commence construction of the Expansion Space as provided hereunder. If Tenant does not provide the Expansion Accept/Reject Notice within such fifteen (15) day period or elects to rescind the exercise of its option to add the Expansion Space to the Premises, Tenant will be deemed to have irrevocably waived and relinquished its right to add the Expansion Space to the Premises and Landlord may sell or lease to a third party or otherwise use all or any portion of the Expansion Parcel in its sole discretion. 41.4 If Tenant elects to proceed to rent the Expansion Space pursuant to the Expansion Accept/Reject Notice, Landlord shall promptly thereafter prepare an amendment to this Lease (the “Expansion Amendment”) to reflect the commencement date of the term for the Expansion Space and the changes in Base Rent, rentable square footage of the Premises, and other appropriate terms. The Expansion Option Amendment shall include a work letter (“Expansion Work Letter”) containing substantially the same terms and conditions as the original Work Letter attached to this Lease with respect to the construction of the Building, including the core and shell specifications attached thereto for the Landlord’s construction of the Expansion Space (the “Landlord’s Expansion Work”), to the extent applicable. The Expansion Work Letter shall include a provision obligating the Landlord to pay, at its sole expense, the cost of saw cutting, removal and disposal of knock-out panels to accommodate construction of the Expansion Space. The Expansion Work Letter shall further provide for Substantial Completion of the Landlord’s Expansion Work on or before the date that is one (1) year after the date of the Expansion Amendment. Drafts of the Expansion Amendment and the Expansion Work Letter shall be exercisable by sent to Tenant within a reasonable time after Landlord’s receipt of Tenant’s acceptance of the Fair Market Rent pursuant to the Expansion Accept/Reject Notice. Landlord and Tenant shall work in good faith to mutually agree upon and execute and deliver to the other, the Expansion Amendment (including the Expansion Work Letter) within thirty (30) days after Tenant’s acceptance of the Fair Market Rent pursuant to the Expansion Accept/Reject Notice, but, following such acceptance, an otherwise valid exercise of the Expansion Space option shall be fully effective whether or not the Expansion Amendment is executed. 41.5 The term of the Lease with respect to the Expansion Space shall commence on the first day following Substantial Completion (as defined in the Expansion Work Letter) of the Landlord’s Expansion Work (“Expansion Commencement Date”). Landlord shall deliver possession of the Expansion Space to Tenant on the express conditions that at Expansion Commencement Date, vacant, broom clean and with the time Landlord’s Expansion Work Substantially Complete. On the Expansion Commencement Date, the “Premises” under this Lease shall be deemed to consist of both the original Premises described in Section 1.2 above and the Expansion Space and all of the exercise, Tenant shall not be in default under any of the terms and provisions of this Lease beyond theLease, as modified by this Section 41 and the Expansion Amendment, shall apply to both such original Premises and the Expansion Space. Landlord shall notify Tenant of the expected date for Substantial Completion of Landlord’s Expansion Work at least thirty (30) days before such date.

Appears in 1 contract

Sources: Lease (Constant Contact, Inc.)

Expansion Option. After the Lease Commencement Date, provided Tenant is not in default under this Lease beyond any applicable grace or cure period and that no event or condition exists which with notice or the expiration of any grace period would constitute an Event of Default under this Lease at the time the option may be exercised, and subject to those rights of other tenants of the Property existing as of the date hereof and set forth on Schedule 8.13 attached hereto, Landlord shall provide Tenant with a written notice (aan “Availability Notice”) At all times of any space in the Building becoming available for re-lease during the Term of this Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option to construct a maximum of an additional 150,000 square foot expansion to the Leased Premises (the "Expansion Space"”). (i) The Such Availability Notice shall include (1) the date on which Tenant may occupy such Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirements. Tenant shall deliver to Landlord preliminary plans and specifications Space, (2) the Annual Fixed Rent for the Expansion Space together with Tenant's (the “Expansion Space Rent”), which Expansion Space Rent shall be at a per square foot rate which is equal to the market rate in effect for comparable space in the area of the Property at that time, (3) the term for the Expansion Space and (4) any other important terms upon which the Landlord is offering the Expansion Space. (ii) In order to exercise its rights under this section, Tenant must give Landlord written notice of its election to accept the exercise offer set forth in the Availability Notice (the “Acceptance Notice”) within ten (10) days (the “Acceptance Period”) after receiving the Availability Notice. Notwithstanding the foregoing, if Tenant does not agree that the proposed Expansion Space Rent is the market rental rate in effect for comparable space in the area of the Property at that time, Tenant shall notify Landlord in writing prior to the expiration of the Acceptance Period and in such notice (1) shall appoint a Qualified Arbitrator and (2) shall include the Qualified Arbitrator’s determination of the Expansion OptionSpace Rent. In Within three (3) business days of receipt of the event that notice from Tenant, Landlord shall appoint a second Qualified Arbitrator. Within three (3) business days of such appointment, the two Qualified Arbitrators will appoint a third Qualified Arbitrator. Within three (3) business days of the appointment of the third Qualified Arbitrator, the three Qualified Arbitrators shall reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted Expansion Space Rent, and shall notify Landlord and Tenant of such determination. The decision of a majority of the three Qualified Arbitrators shall be binding upon Landlord and Tenant. (iii) If Tenant timely accepts the Landlord’s offer in accordance with subsection (ii), then Tenant’s leasing of the Expansion Space shall be under all terms of this Lease other than as modified by the offer, except that (a) the Annual Fixed Rent shall be as determined in accordance with the provisions above, (b) the fraction used for Tenant’s Percentage Share shall be increased proportionately to reflect the addition of the Expansion Space to the Premises, (c) if the term for the Expansion Space would commence at a free-standing buildingtime when at least five (5) years remain on the Lease Term for the initial Premises, Landlord shall have no obligation to provide a bid to construct same. In the event that term for the Expansion Space shall be attached co-terminus with the initial Premises, and (d) Tenant shall be permitted to use an additional four (4) parking spaces for each 1,000 square feet of Expansion Space. Furthermore, within fifteen (15) days after the Buildingdelivery of the Acceptance Notice, the parties shall execute a written amendment to this Lease documenting the foregoing. (iv) If Tenant fails to timely deliver the Acceptance Notice or refuses in writing the offer contained in the Availability Notice (other than the determination of the Expansion Space Rent as provided for in subsection (ii)), Landlord shall be obligated have the right to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide lease the Expansion Space as requested by Tenantto any third party tenant. Tenant, at its option, may accept Landlord's bid or contract ’s rights under this Section 8.13 with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior respect to any work on the Expansion Space being performed or commenced, and the Lease Term for all other portion of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, remain in full force and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such constructioneffect. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Lease beyond the

Appears in 1 contract

Sources: Lease (Netezza Corp)

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option to construct a maximum of an additional 150,000 square foot expansion to the Leased Premises (the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirements. Tenant shall deliver to Landlord preliminary plans and specifications for the Expansion Space together with Tenant's notice of the exercise of the Expansion Option. In the event that the Expansion Space shall be a free-standing building, Landlord shall have no obligation to provide a bid to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event Provided that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such construction. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be then in default under of any of the provisions of this Lease beyond theand is still in occupancy of the Premises, and subject to the expansion rights or rights of first refusal of existing tenants in effect on the Commencement Date, the Landlord shall offer first to the Tenant the right to lease adjacent space to the Premises on the second floor of the Building or space that becomes available on the first floor of the Building at the then market lease rate for the Crown Center complex. Landlord shall notify Tenant in writing when any adjacent space to the Premises on the second floor or space on the first floor of the Building becomes available, and Tenant shall have ten (10) days after receipt of the Landlord's written notice to respond to the Landlord of Tenant's intent to exercise its right to lease any such space. If Tenant so notified Landlord, the parties shall enter into a new lease for such expansion space within thirty (30) days of the Tenant's receipt from the Landlord of a proposed lease, or amend this Lease to include the expansion space and other applicable rental terms within thirty (30) days of Tenant's receipt from Landlord of a proposed amendment. If Tenant fails to respond to the Landlord within such ten (10) day period, or if a lease (or an amendment to this Lease) is not entered into within such thirty (30) day period, then the Tenant's first right of refusal shall expire with respect to such space. If Tenant does not exercise its right to lease adjacent space to the Premises on the second floor of the Building or space that becomes available on the first floor of the Building pursuant to the immediately preceding paragraph, and Landlord subsequently offers to lease such space to another party at a net effective rent that is less than the net effective rent initially offered to Tenant, Landlord shall offer to Tenant a right of first refusal to lease such space at the same net effective rent as is being offered to such other party. Tenant shall have 72 hours after receipt of the Landlord's offer to respond to the Landlord of Tenant's intent to exercise its right to lease such space at such base rent. If Tenant so notifies Landlord, the parties shall enter into a new lease for such expansion space within thirty (30) days of the Tenant's receipt from the Landlord of a proposed lease, or amend this Lease to include the expansion space and other applicable rental terms within thirty (30) days of Tenant's receipt from Landlord of a proposed amendment. If Tenant fails to respond to the Landlord within such 72 hour period, or if a lease (or an amendment to this Lease) is not entered into within such thirty (30) day period, then the Tenant's right of refusal shall expire with respect to such space.

Appears in 1 contract

Sources: Lease Agreement (Fusion Telecommunications International Inc)

Expansion Option. (a) At all times during Section 34.01. Provided the named Tenant herein is not in default pursuant to any of the terms and conditions of this Lease Term, so long as no Default on the part of Tenant then existsbeyond any applicable notice or cure period, Tenant shall have the option of leasing additional space consisting of 24,911 rentable square feet of the Building (hereinafter referred to construct as the “Expansion Space”), as shown on Exhibit F attached hereto and made a maximum of an additional 150,000 square foot expansion part hereof, which Expansion Space is anticipated to the Leased Premises become available on or before August 1, 2012 (the "Expansion Space".) The Expansion Space shall be located at a location as reasonably required by Tenant and otherwise complying with all applicable municipal requirementsEffective Date”). Tenant shall deliver notify Landlord in writing of its election to Landlord preliminary plans and specifications for lease the Expansion Space together with Tenant's notice of the exercise of the Expansion Optionon or before April 1, 2012. In the event that the Expansion Space shall be a free-standing buildingbecomes available prior to August 1, 2012, Landlord shall notify Tenant in writing of its availability, and Tenant shall have no obligation ten (10) business days from receipt of Landlord’s notice to provide a bid notify Landlord in writing of its election to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide lease the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of the Leased Premises shall be extended so that it expires ten (10) years after the effective date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term)of its availability. The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided Should Tenant elect to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with lease the Expansion Space, no additional Base Tenant shall lease the same in its “AS IS” condition, upon all the terms, covenants and conditions of this Lease, and at the Annual Basic Rent shall be due Landlord as a consequence of such construction. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable per rentable square foot then payable by Tenant on the express conditions that at the time of the exercisepursuant to this Lease, provided, however, Tenant shall not be in default under entitled to any Basic Rent abatement, any “Tenant’s Improvement Work Allowance”, any “Tenant’s HVAC Work Allowance”, nor any “Tenant’s Additional HVAC Work Allowance” (as such terms are hereinafter defined). Upon Tenant’s exercise of this Expansion Option, Landlord and Tenant agree to execute an amendment to this Lease setting forth as of the provisions Expansion Space Effective Date, the rentable square footage of this Lease beyond thethe Demised Premises, the Annual Basic Rent, Tenant’s Proportionate Share and such other terms and conditions that may be applicable to the Expansion Space.

Appears in 1 contract

Sources: Lease Agreement (Merisel Inc /De/)

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option (“Tenant’s Expansion Option”) to construct a maximum expand the Premises in accordance with the provisions of an additional 150,000 this Section 6(b) to include all remaining space in the Building (approximately 37,147 square foot expansion to the Leased Premises feet of Rentable Floor Area) (the "“Expansion Area”). Tenant’s Expansion Option may be exercised by Tenant by written notice to Landlord (“Tenant’s Expansion Notice”) given at any time, provided, however, that if there are less than three (3) Lease Years left in the Term at the time Landlord is offering to lease any such Expansion Space"., unless Tenant leases five thousand (5,000) The square feet or less of such Expansion Area, Tenant may lease such Expansion Space only if Tenant has irrevocably exercised the Extension Option set forth in Section 2.4.1 of the Lease (as amended by Section 5 hereof) for the Premises so that such Expansion Space shall be located at a location as reasonably required leased by Tenant and otherwise complying with all applicable municipal requirementsfor more than a three (3) year term. Tenant The “Estimated Expansion Date” shall deliver to Landlord preliminary plans and specifications be the date four (4) months following the date of Tenant’s Expansion Notice. Annual Fixed Rent for the Expansion Space together Area shall be paid in accordance with Tenant's notice the terms and conditions of Section 2.5 of the exercise Lease at an Annual Fixed Rent rate equal to the Second Amendment Expansion Market Rent with respect to the Expansion Area, except as provided below. Upon receipt of Tenant’s Expansion Notice, but subject to any existing leases for space in the Building as of the Extension Commencement Date, Landlord shall use its best efforts to relocate any existing tenant located in the Tenant’s Expansion Area to make space available for Tenant to exercise its Expansion Option. In the event that the Premises are expanded in accordance with Section 6(b) hereof, the leasing of the corresponding Expansion Space Area shall be documented by an amendment to the Lease specifying the area and location of the Premises as expanded, the Annual Fixed Rent rate applicable to such Expansion Area, and the estimated date the Premises are to be expanded hereunder with a freeprovision for establishing the effective date of such expansion based upon actual delivery of such Expansion Area to Tenant pursuant to the following paragraph. Notwithstanding the foregoing, if Tenant exercises Tenant’s Expansion Option at any time from and after the first day of the Extension Commencement Date through the last day of the twenty-standing buildingfourth (24th) month following the Extension Commencement Date, Annual Fixed Rent shall be paid at a rate equal to the rate contained in the Lease on a pro rata basis. If Tenant’s Expansion Option is validly exercised, Landlord shall endeavor in good faith to deliver the Expansion Area on or about the Estimated Expansion Date. If the Expansion Area is not delivered within four (4) months following Tenant’s Expansion Notice (unless such delay is due to the act or omission of Tenant), Tenant shall have no obligation to provide a bid to construct same. In the event that accept the Expansion Space Area, and Tenant’s Expansion Option may be deemed rescinded at Tenant’s option by thirty (30) days advance written notice given by Tenant (unless Landlord shall have delivered the Expansion Area within such thirty (30) day period). Each Expansion Area shall be attached delivered to Tenant pursuant to the Buildingprovisions of Article III of the Lease except that Tenant and Landlord obligations thereunder shall apply to such Expansion Area only, the Premises shall be such Expansion Area, the Tenant’s Plans Delivery Deadline shall be thirty (30) days following Landlord’s receipt of Tenant’s Expansion Notice, the Term Commencement Date shall be the Estimated Expansion Date, and Landlord shall be obligated provide Tenant with an allowance for the Premises Improvements in an amount not to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects exceed the per rentable square foot allowance provided for the original Premises multiplied by the number of months remaining in the Jackson CountyTerm at the Estimated Expansion Date, Georgia areaand divided by the number of months in the Term. Landlord’s failure to deliver, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide or delay in delivering, all or any part of the Expansion Space Area on the Estimated Expansion Date, as requested applicable, for any reason, shall not give rise to any liability of Landlord, shall not alter Tenant’s obligation to accept such space when delivered, shall not constitute a default of Landlord, and shall not affect the validity of the Lease, as amended hereby; provided that Tenant shall have the rescission right as stated in the second sentence of this paragraph, notwithstanding any provisions of Article III of the Lease to the contrary. Landlord covenants that it will not enter into any lease for the Building or the 701 Building containing the right of a tenant thereunder to expand its leased pren1ises into the Expansion Area unless Tenant’s Expansion Option has expired or has been waived by Tenant. TenantLandlord shall not grant, at any time, for both the Building and the 701 Building additional extension options for other tenants located in those buildings. If a tenant in the Building or the 701 Building fails to timely and properly respond to any notice by Landlord with respect to extending its optionlease, may accept Landlord's bid or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease such space shall be amended made available to reflect all relevant and appropriate Tenant in accordance with the terms and conditions prior to any work on the Expansion Space being performed or commenced, and the Lease Term for all of Section 6(a) hereof within six (6) Business Days of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for the Expansion Space (which shall have the same ten (10) year Lease Term). The Base Rent for the Expansion Space shall reflect current market conditions, and the Lease amendment shall reflect such other relevant terms and conditions as are specified in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence expiration of such constructiontenant’s extension rights under such tenant’s lease. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Lease beyond the

Appears in 1 contract

Sources: Lease (Alliance Data Systems Corp)

Expansion Option. (a) At all times during the Lease Term, so long as no Default on the part of Tenant then exists, Tenant shall have the option to construct a maximum first right of an additional 150,000 square foot expansion to the Leased Premises refusal (the "Expansion Space".Option”) The on the second floor of the Building and any other space in the Building or on the Land that is or becomes available for rent (the “Expansion Space shall be located at Area”). If Landlord receives a location bona fide offer, that Landlord is willing to accept for the lease of the Expansion Area or any portion thereof, before entering into a lease on the Expansion Area, Landlord will first offer to lease the Expansion Area to Tenant on the same terms and conditions as reasonably required by Tenant and otherwise complying with all applicable municipal requirementsset forth in the bona fide offer. Tenant shall deliver to Landlord preliminary plans and specifications for the Expansion Space together with Tenant's have fifteen (15) days from receipt of notice of the bona fide offer from Landlord (the “Offer Notice”) to exercise the Expansion Option and fifteen (15) days after the Tenant’s exercise of the Expansion OptionOption to enter into a lease for the Expansion Area. In the event that Tenant does not timely respond or a lease is not timely executed by Landlord and Tenant for the Expansion Space Area, the Expansion Option shall be a free-standing buildingdeemed waived as to that bona fide offer, on the terms of the bona fide offer. Landlord may lease the Expansion Area only on the terms of the bona fide offer provided such lease is executed within ninety (90) days of the Offer Notice. If such lease is not executed within ninety (90) days, or if any change in the material terms oldie bona fide offer is contemplated, then Landlord must against submit the proposed terms to Tenant as set forth above. In the event Tenant elects to exercise the Expansion Options, Tenant shall accept the Expansion Area “AS IS” and Landlord shall have no obligation to provide a bid to construct same. In the event that the Expansion Space shall be attached to the Building, Landlord shall be obligated to issue a proposal to construct same at a bid price which shall be competitive to other similar institutional quality industrial construction projects in the Jackson County, Georgia area, with such proposal to include ▇ ▇▇▇▇▇ term and the costs to provide the Expansion Space as requested by Tenant. Tenant, at its option, may accept Landlord's bid make any alterations or contract with a third party to construct the Expansion Space. In the event that Tenant accepts Landlord's bid, the Lease shall be amended to reflect all relevant and appropriate terms and conditions prior to complete any work on the Expansion Space being performed or commencedArea, and unless the Lease Term for all terms of the Leased Premises shall be extended so that it expires ten (10) years after the date Base Rent is first due for bona fide offer included alterations or work on the Expansion Space (Area, in which ease Landlord shall have the same ten (10) year Lease Term). The Base Rent for make alterations or complete work on the Expansion Space shall reflect current market conditions, and Area up to the Lease amendment shall reflect such other relevant terms and conditions as are specified cost in Landlord's proposal and agreed upon by Landlord and Tenant. This extension associated with Expansion Space shall not be one of the Extensions provided to Tenant under Section 2.05, and Base Rent due from Tenant for the Leased Premises leased originally hereunder shall increase by two percent (2%) per annum for the period that the Lease Term is extended under this Section 2.06, on each anniversary of the Commencement Date. In the event that Landlord does not construct the Expansion Space and expends no funds in connection with the Expansion Space, no additional Base Rent shall be due Landlord as a consequence of such constructionbona fide offer. (b) The Expansion Option shall be exercised only by written notice delivered to Landlord. The Expansion Option shall be exercisable by Tenant on the express conditions that at the time of the exercise, Tenant shall not be in default under any of the provisions of this Lease beyond the

Appears in 1 contract

Sources: Lease Agreement (Novint Technologies Inc)