Common use of Failure to Achieve Substantial Completion Clause in Contracts

Failure to Achieve Substantial Completion. If Substantial Completion of the Shell Improvements does not occur by August 1, 2009 for any reason other than a delay caused by Tenant (a “Tenant Delay”) or Force Majeure, Tenant shall be entitled to a rent abatement equal to two (2) days of base rent plus additional rent applicable to the Premises for each day after September 1, 2009 that the Substantial Completion of the Shell Improvements does not occur. If the Substantial Completion of the Shell Improvements does not occur by September 1, 2009 for any reason (including Force Majeure) other than a Tenant Delay, Tenant shall be entitled to elect by written notice delivered to Landlord at any time prior to the Substantial Completion of the Shell Improvements to cause the Substantial Completion of the Shell Improvements to occur, at Landlord’s sole cost and expense, in which event (i) Tenant shall cause the portion of the Shell Improvements constructed by Tenant to be constructed in a good and workmanlike manner, in compliance with all applicable laws and in substantial accordance with Exhibit B-1, using only new quality materials, and (ii) Tenant shall have the right to offset all costs incurred by Tenant in so achieving Substantial Completion of the Shell Improvements against any and all amounts of the base rent and additional rent payable by Tenant under the Lease for the entire Premises until Tenant is reimbursed in full.

Appears in 1 contract

Sources: Lease Agreement (KBS Real Estate Investment Trust III, Inc.)

Failure to Achieve Substantial Completion. If Substantial Completion of the Shell Improvements does not occur by August 1, 2009 20 for any reason other than a delay caused by Tenant (a “Tenant Delay”) or Force Majeure, Tenant shall be entitled to a rent abatement equal to two (2) days of base rent plus additional rent applicable to the Premises for each day after September 1, 2009 20 that the Substantial Completion of the Shell Improvements does not occur. If the Substantial Completion of the Shell Improvements does not occur by September 1, 2009 20 for any reason (including Force Majeure) other than a Tenant Delay, Tenant shall be entitled to elect by written notice delivered to Landlord at any time prior to the Substantial Completion of the Shell Improvements to cause the Substantial Completion of the Shell Improvements to occur, at Landlord’s sole cost and expense, in which event (i) Tenant shall cause the portion of the Shell Improvements constructed by Tenant to be constructed in a good and workmanlike manner, in compliance with all applicable laws and in substantial accordance with Exhibit B-1, using only new quality materials, and (ii) Tenant shall have the right to offset all costs incurred by Tenant in so achieving Substantial Completion of the Shell Improvements against any and all amounts of the base rent and additional rent payable by Tenant under the Lease for the entire Premises until Tenant is reimbursed in full.

Appears in 1 contract

Sources: Lease Agreement (KBS Real Estate Investment Trust III, Inc.)