First Expansion Option Clause Samples
The First Expansion Option clause grants a party, typically a tenant in a lease agreement, the right to expand their leased premises under specified conditions. This clause outlines the process for exercising the option, such as providing written notice within a certain timeframe, and may detail the terms for the additional space, including rent adjustments or the location of the expansion area. Its core practical function is to provide flexibility for future growth, allowing the tenant to secure additional space if needed while giving both parties clarity on how such an expansion would be handled.
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First Expansion Option. The "First Expansion Option" is an option to include within the Demised Premises that area (the "First Expansion Space") shown on Exhibit "B-4". The "First Expansion Option Exercise Deadline" is the last day of August, 1995. The "First Expansion Rentable Floor Area" is hereby conclusively agreed by the parties to be 10,208 square feet. The "First Expansion Option Rent Commencement Date" shall be the earlier of (i) the date of occupancy of any portion of the First Expansion Space or (ii) 120 days following the delivery of the First Expansion Option Exercise Notice (as defined below) to Landlord; provided, however, if occupancy is delayed solely due to Landlord's failure to approve or disapprove the plans and specifications and contractors (if Tenant has elected to do the Expansion Space Construction itself), submitted by Tenant, within ten (10) days of Landlord's receipt thereof or, if Landlord is doing the Expansion Space Construction, due to Landlord's failure to promptly commence and diligently pursue to completion as soon as reasonably possible the improvements described in Tenant's plans and specifications (but it is clearly agreed that such 120-day period shall not be extended even if the construction is not substantially complete by the expiration of that period so long as Landlord promptly commenced and diligently pursued such construction), the "120 days" immediately above shall be increased by the number of days of delay attributable to such failures by Landlord (each such day of delay caused by Landlord's failure with respect to either matter described above is herewith referred to as "Landlord Delay"). The "Construction Allowance" for the First Expansion Space shall be equal to $4.50 (i) multiplied by the number of whole months remaining in the 120-month Lease Term after the First Expansion Option Rent Commencement Date, (ii) divided by 120 and (ii) multiplied by the First Expansion Rentable Floor Area.
First Expansion Option. It is understood by execution of this First Amendment to Lease, Tenant has hereby exercised its "First Expansion Option".
First Expansion Option. So long as Tenant is not then in an Event of Default hereunder in excess of the Default Threshold, Tenant shall have the option (the “First Expansion Option”) to lease Option Space 1 (as that term is hereinafter defined) at any time on or before May 1, 2016 pursuant to and in accordance with the following terms and conditions:
First Expansion Option. A. Subject to the provisions of this Section 4, Tenant shall have the option (the “First Expansion Option”) to lease all, but not less than all of that certain space to be located on the 4th or 7th floors of the Building (the “First Expansion Space”) consisting of between 7,000 and 10,000 rentable square feet (plus or minus ten percent (10%)), the exact size and location of which is to be determined by Landlord in its reasonable discretion (provided, if Tenant has exercised its ROFO pursuant to Section 6 of this Rider 2, then at Landlord’s election, the size of the First Expansion Option Space may be reduced by the aggregate size of the Offering Spaces leased by Tenant), so long as the First Expansion Space meets the other parameters hereinbefore set forth, if:
1. Landlord receives notice (the “First Expansion Notice”) from Tenant of its exercise of its First Expansion Option no later than the end of the fourth Lease Year (which notice shall be irrevocable on Tenant’s part, but Tenant’s rights shall be subject to the provisions of this Section 4); and
2. at the time Tenant delivers the First Expansion Notice a Default under this Lease has not occurred and is then continuing; and
First Expansion Option. Tenant shall have the option of expanding the Premises to include a portion of Building 7 or Building 9 (the "First Expansion Space"), as determined by Landlord pursuant to the provisions below. Tenant may exercise this option by delivering written notice thereof to Landlord on or not greater than thirty (30) days before the last day of the second (2nd)
First Expansion Option. If (i) Tenant shall not have assigned this Lease (other than pursuant to Paragraph 21(C)), (ii) Tenant shall not have subleased more than 25% of the Premises for all or substantially all of the remaining Term (excluding subleases pursuant to Paragraph 21(C)), and (iii) this Lease shall then be in full force and effect, then Tenant shall have the one-time option (the “First Expansion Option”) to expand the Premises to include the First Expansion Premises upon the following terms and conditions:
First Expansion Option. Paragraph 35(B) of the Original Lease is hereby amended by deleting subparagraph (i) and subparagraph (ii) thereof and substituting the following therefor:
First Expansion Option. A. Subject to and upon the terms, provisions and conditions set forth in this Section 52, Tenant shall have, and is hereby granted, the one-time option (the “First Expansion Option”) to cause Landlord to construct on the land identified as “Phase 2” in Exhibit I attached hereto (the “First Expansion Option Land”), and to lease from Landlord, certain new improvements to contain not more than thirty-four thousand (34,000) square feet, which improvements may be additions to or expansions of the Building and/or the Improvements (such First Expansion Option Land and improvements, the “First Expansion Option Premises”). Tenant may exercise the First Expansion Option by written notice delivered to Landlord at any time prior to the sixth (6th) anniversary of the Commencement Date; provided, however, that if Tenant exercises the First Expansion Option at any time after the third (3rd) anniversary of the Commencement Date, it shall be a condition to the effectiveness of such exercise that Tenant simultaneously exercise the first Renewal Option and extend the term for an additional five (5) year period. If Tenant does not exercise the First Expansion Option by the required time period, the First Expansion Option shall be waived.
First Expansion Option. 26 ARTICLE 17 SECOND EXPANSION OPTION....................................................................27