Common use of OPTION TO RENEW Clause in Contracts

OPTION TO RENEW. (a) Tenant shall have the option to renew the term of this Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Flex Space Office Lease (Panacos Pharmaceuticals, Inc.)

OPTION TO RENEW. (a) Provided that no uncured Event of Default has occurred, Tenant shall have the one (1) option to renew extend (“Renewal Option”) the term Term of this Lease for one either (1i) additional period of five the entire twelfth floor, or (5ii) years the entire Premises (as so selected, the “Option TermExtension Premises”) following for sixty (60) months, commencing upon the expiration of the initial lease term Term of the Lease (“Extension Term”), subject to the terms of this Article 54. In the event Tenant elects to exercise its option to extend the Lease Term by the Extension Term, as provided that this lease is in full force and effecthereunder, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to provide Landlord of irrevocable written notice of Tenant’s intention to renew the term at least nine such election (9“Election Notice”), no earlier than fifteen (15) months but not more and no later than twelve (12) months prior to the then-existing expiration date of the then applicable term Term of this Lease (the “Option Period”), which Election Notice must also specify whether the Extension Premises will consist of the leasespace identified in clause (i) or (ii), above, of this Section 54(a). The Option Except for Base Rent which shall be determined as set forth in Section 54(b), and for the possibility that the Extension Premises will consist of less than the entire Premises, in which case the Tenant’s Percentage shall be appropriately adjusted, the terms and conditions of this Lease during the Extension Term shall be of identical to the same terms, covenants terms and conditions as the original lease except of this Lease. (b) Base Rent for the Option Extension Term shall be adjusted to the then Prevailing Market Rent of comparable space fair market rental value (“FMV”), as determined herein. In the event Tenant timely exercises the Renewal Option, Landlord shall, within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s Election notice exercising its option to extend the term of this LeaseRenewal Option, Landlord shall notify Tenant of Landlord’s estimate good faith determination of Prevailing Market Rentthe Base Rent for the Extension Term (the “Landlord’s Option Rent Response”). Tenant shall accept or reject Landlord’s Option Rent Response by notice to Landlord within ten (10) business days following receipt of Landlord’s Option Rent Response. If Tenant disagrees with fails to object to Landlord’s estimate of Prevailing Market RentOption Rent Response within such time period, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the then Landlord’s determination of Prevailing Market FMV set forth in the Landlord’s Option Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 Response shall govern the selection of arbitrators be conclusive and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if binding. If Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market accept Landlord’s Option Rent to Arbitration during such fifteen (15) day periodResponse, then the Landlord’s estimate of Prevailing Market Rent Landlord and Tenant shall be deemed attempt to be agreed to by Tenant, and shall be agree upon the Base Rent payable by Tenant to Landlord during for the first year of the then applicable Extension Term (“Option Term. (iRent”) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the using their good faith efforts. If Landlord and Tenant fail to reach agreement on the Option Rent within twenty (20) days following Tenant’s receipt of Landlord’s Option Rent Response, then within three (3) business days after demand by either Landlord or Tenant, each acting prudentlyparty shall simultaneously present to the other and certify to each other such party’s final offer regarding the Option Rent for the Extension Term (each, knowledgeablea “Last Offer”). If the parties fail to agree on the Option Rent within such twenty (20) day period following Tenant’s receipt of Landlord’s Option Rent Response, such Last Offers shall be submitted to arbitration by Landlord and/or Tenant (the “Arbitration Demand”) in accordance with Section 54(b)(i) through (b)(viii), below and assuming in accordance with the rent is not affected by undue stimulus. Implicit in this definition is the consummation then existing Rules for Commercial Arbitration of the lease of American Arbitration Association, or its successor. The following rules shall apply to such space beginning on arbitration, in addition to (and controlling over) the commencement date then existing Rules for Commercial Arbitration of the lease of the Premises under conditions wherebyAmerican Arbitration Association, or its successor:

Appears in 1 contract

Sources: Office Lease (Embarcadero Technologies Inc)

OPTION TO RENEW. (a) 35.1 Tenant shall have the option to renew the term of this Lease for one (1) additional period term of five (5) years (the “Option Term”) following years, commencing upon the expiration of the initial lease term provided that this lease is in full force and effectLease Term. The renewal option must be exercised, the if at all, by written notice given by Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least not later than nine (9) months but not more nor earlier than twelve (12) months prior to the expiration of the then applicable term initial Lease Term. Notwithstanding the foregoing, at Landlord’s election, this renewal option shall be null and void and Tenant shall have no right to renew this Lease if on the date that Tenant exercises its renewal option or as of the lease. The Option date immediately preceding the commencement of the renewal period: (a) Tenant is not in, and has not during the Lease Term been in, default under the Lease beyond any applicable cure periods; (b) more than twenty-five percent (25%) of the rentable square footage of the Premises is sublet (other than to an Affiliate of Tenant); (c) the Lease has been assigned prior to such date, other than to an Affiliate; (d) the Tenant originally named herein, or an Affiliate, is not occupying the Premises; or (e) the Premises is not intended for the exclusive use of Tenant (and any Affiliates) during the renewal term. 35.2 If Tenant exercises the renewal option, then all of the terms and conditions set forth in this Lease as applicable to the Premises during the initial Lease Term shall apply during the renewal term, except that (a) Tenant shall have no further right to renew this Lease, (b) Tenant shall take the Premises in their then “as-is” state and condition, (c) the rates for parking in the Building shall be of as reasonably determined by Landlord based on the same termsthen current rates for parking in the Building, covenants and conditions as (d) subject to section 35.5 below, the original lease except Base Rent payable by Tenant for the Option Term Premises shall be the then Prevailing Market Rent of comparable space within fair market rent for the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend Premises based upon the term terms of this Lease, Landlord as renewed. Fair market rent shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentinclude the periodic rental increases, Tenant may rescind such renewal notice thereby terminating its right of renewal provided if any, that would be included for space leased for the period the space will be covered by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) Lease. 35.3 For purposes of this Article 57 35, the term “fair market rent” shall govern mean the selection rental rate for comparable space under primary lease (and not sublease) to new tenants, taking into consideration the quality of arbitrators the Building and such amenities as existing improvements and the establishment like, situated in similar buildings in comparable locations in Hacienda Business Park, Pleasanton, California, in comparable physical and economic condition, taking into consideration the then prevailing ordinary rental market practices with respect to tenant concessions (if any) (e.g., not offering extraordinary rental, promotional deals and other concessions to tenants which deviate from what is the then prevailing ordinary practice in an effort to alleviate cash flow problems, difficulties in meeting loan obligations or other financial distress, or in response to a greater than average vacancy rate). 35.4 The fair market rent shall be mutually agreed upon by Landlord and ▇▇▇▇▇▇ in writing within the thirty (30) calendar day period commencing four (4) months prior to commencement of the Prevailing Market Rent payable for renewal period. If Landlord and Tenant are unable to agree upon the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen fair market monthly rent within said thirty (1530) day period, then the Landlord’s estimate of Prevailing Market Rent fair market rent shall be deemed established by appraisal in accordance with the procedures set forth in Exhibit E attached hereto. 279330373 v2 35.5 Notwithstanding anything in the foregoing or Exhibit E attached hereto to be agreed to by Tenantthe contrary, and in no event shall be the Base Rent payable by Tenant to Landlord during the first year renewal period be less than the aggregate of the then applicable Option Term. amounts of Base Rent (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under for all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:leased hereunder, without regard to any abatement, but deducting the amount of the Allowance Rent) for the calendar month immediately preceding the commencement of the renewal period.

Appears in 1 contract

Sources: Lease (Bionano Genomics, Inc.)

OPTION TO RENEW. (a) Tenant shall have the option right to renew the term of this Lease for one (1) additional period of five three (53) years (the “Option "Renewal Term") subject to the following the expiration of the initial lease term provided that this lease is in full force terms and effect, the Tenant shall be in possession and occupying the Premises, and conditions: A. Tenant shall not be entitled to extend the term hereof if on the date provided for the exercise of its rights hereunder, or on the date of commencement of the Renewal Term, Tenant is in default in of the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written and conditions herein contained for which notice of Tenant’s intention default has been given by Landlord to Tenant in the manner provided in this Lease, which default has not been or is not being remedied in the time provided in this Lease; B. Tenant shall exercise its right to extend the term of this Lease, if at all, by notifying Landlord in writing of its election to exercise its right to renew the term at least nine hereof (9the "Renewal Notice") months but not more later than twelve six (126) months prior to the expiration of the then applicable term of the lease. current term; C. The Option Renewal Term shall be of upon the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of contained in this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if the annual base rent per square foot for the Renewal Term shall be determined by mutual agreement between Landlord and Tenant does not elect based upon the then prevailing market rental rate per square foot charged by Landlord for comparable warehouse space in buildings of like quality in the same rental market as the Premises as of the date the Renewal Term is to either rescind its renewal notice or commence; and D. In the event Landlord and Tenant are unable to submit agree upon the determination rental rate per square foot for the Renewal Term within thirty (30) days after delivery of Prevailing Market Rent the Renewal Notice, the option to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent renew shall be deemed to be agreed to by Tenant, null and void and the Lease shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termexpire in accordance with its term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Commercial Lease Agreement (American Pharmaceutical Partners Inc /Ca/)

OPTION TO RENEW. (a) Tenant shall ill have the option a One-Time Option to renew the term of this Lease Renew current space for one (1) additional period of five (5) years at the current market rent at that time by giving the Landlord six (6) month written notice prior to lease expiration. The space will be renewed “as is” and Landlord will not be required to provide Tenant Improvement Allowance. Co-Broker Fees will not be paid by Landlord if Tenant chooses to exercise Option. If Landlord and Tenant cannot agree on the “Option Term”) following market rent rate within 30 days after T▇▇▇▇▇’s receipt of Landlord’s proposed market rent rate (it being agreed that both Landlord and Tenant will be reasonable in their attempt to determine the market rent rate), Tenant, by written notice to Landlord made within 5 business days after the expiration of such 30 day period, may cause said rate to be determined by arbitration in accordance with the initial lease term provided that this lease is in full following provisions, failing such timely notice Tenant’s One-Time Option to Renew shall be null and void and of no force and effect: The determination of the market rent rate will be determined by an arbitration board consisting of three reputable real estate professionals with experience with similar buildings within the southwest suburban Minneapolis area. Within 20 days after initiation of arbitration, each party shall appoint one arbitrator who shall have no material financial or business interest in common with the Tenant party making the selection and shall not have been employed by such party for a period of three years prior to the date of selection. If a party fails to give notice of appointment of its arbitrator within the 20 day period provided above, then upon 5 business days’ notice the other party may appoint the second arbitrator. The arbitrators selected by the parties shall attempt to agree upon a third arbitrator. If the first two arbitrators are unable to agree on a third arbitrator within 30 days after the appointment of the second arbitrator, then such third arbitrator shall be in possession appointed by the presiding judge of the Hennepin County District Court, or by any person to whom such presiding judge formally delegates the matter or, if such methods of appointment fail, by the American Arbitration Association. Within 30 days of the appointment of the third arbitrator, Landlord, Tenant and occupying the three arbitrators shall meet at the Premises, and in a proceeding held in accordance with the rules of the American Arbitration Association, Landlord and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior each submit to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent arbitrators their proposals for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, rent rate and shall be allowed to present such evidence and testimony in support thereof as is allowed under the Base Rent payable by Tenant to Landlord during the first year rules of the then applicable Option Term. (i) Definition: As used hereinAmerican Arbitration Association. The arbitrators shall be instructed that within 30 days after the date on which Landlord, Tenant and the arbitrators conclude such meeting, the term “Prevailing Market Rent” means arbitrators shall select one of the most probable two proposed market rent (rate figures, with no compromise or alternative market rent rate figures to be permitted. The market rent rate figure selected by a majority of the arbitrators shall be binding upon Landlord and Tenant. The decision of the arbitrators, determined as determined pursuant to the appraisal procedure hereinafter above set forth) at which , will be final and non-appealable. Except where specifically provided otherwise in the Premises would Lease, each party shall bear its own expenses in connection with the arbitration and the costs of its arbitrator, and the cost of the third arbitrator shall be leased in a comparable and open market, under all conditions requisite to a fair lease, the shared equally by Landlord and Tenant each acting prudentlyT▇▇▇▇▇. The costs of all counsel, knowledgeable, experts and assuming the rent is not affected other representatives that are retained by undue stimulus. Implicit in this definition is the consummation of the lease of a party will be paid by such space beginning on the commencement date of the lease of the Premises under conditions whereby:party.

Appears in 1 contract

Sources: Lease Agreement (PetVivo Holdings, Inc.)

OPTION TO RENEW. (a) Provided Tenant shall not then be in default of this Lease, Tenant shall have the option to renew extend the term of this the Lease for one (1) additional period term of five ten (510) years (the “Option Extended Term”) following upon the expiration same terms and conditions herein contained, except that the Base Rent during the Extended Term shall be the amount which is determined as follows: Base Rent for the first year of the initial lease term provided that this lease is in full force and effect, the Tenant Extended Term shall be the fair market rent for bank facilities with a drive through in possession the general vicinity of the Leased Premises which amount shall be agreed to by Landlord and occupying Tenant as provided for in this Section 20.3. On the PremisesRent Adjustment Date of the second year of the Extended Term, and Tenant annually thereafter, Base Rent shall not be in default increase on the Rent Adjustment Date by the increase in the performance or observance of any of Index during the termsprior twelve months; provided, conditionshowever, provisions and/or covenants of that in no event shall the Lease. All such rights of a renewal shall monthly Base Rent be exercised by delivery to Landlord of written notice of Tenant’s intention to renew less than the term at least nine (9) months but not more than amount paid during the prior twelve (12) months month period, nor shall it increase by more than four percent (4%) over the amount paid during the prior twelve (12) month period. The Tenant shall exercise this option by delivering written notice to Landlord no earlier than 450 days, and no later than 365 days, prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the initial term of this Lease, failing which this option to renew shall automatically terminate. Upon delivery of such notice, the Landlord shall notify have two (2) weeks in which to deliver a written proposal to Tenant setting forth the amount of Base Rent to be paid during the Extended Term. Tenant shall have two (2) weeks from receipt of the Landlord’s estimate notice in which (i) to hire at its sole cost and expense (a) a Colorado licensed real estate broker who specializes in bank leasing, or (b) an MAI appraiser to evaluate the Landlord’s determination of Prevailing Market Rent. If fair market rent, and (ii) if the Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate determination to deliver a written notice to Landlord setting forth its opinion of Prevailing Market Rent the fair market rent together with supporting documentation, failing which the Landlord’s determination of fair market rent shall be deemed to be have been agreed to by the Tenant. If the Landlord does not agree with the Tenant’s determination, the Landlord shall have two (2) weeks in which to hire at its sole cost and expense (a) a Colorado licensed real estate broker who specializes in bank leasing, or (b) an MAI appraiser, to determine the fair market rent and deliver a copy of the same to Tenant, and failing which the Tenant’s determination of fair market rent shall be deemed to have been agreed to by the Landlord. If the two evaluations are within ten percent (10%) of each other, the fair market rent shall be the average of the two evaluations. If the two evaluations differ by more than ten percent (10%), the parties which prepared the respective reports shall designate a third Colorado licensed real estate broker who specializes in office leasing or MAI appraiser to determine the fair market rent, but in no event shall the fair market rent be greater than the Landlord’s consultant’s evaluation or less than the Tenant’s consultant’s evaluation. The third Colorado licensed real estate broker or MAI appraiser shall prepare its report no later than twenty (20) days after being selected, its determination of fair market rent shall be binding on the parties, and its cost shall be shared equally by Landlord and Tenant. Upon the fair market rent for the Extended Term being determined, the parties shall execute a lease extension agreement setting forth the amount of Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Extended Term. The parties agree to negotiate with each other in good faith in connection with this option to renew. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Cobiz Inc)

OPTION TO RENEW. (a) Tenant shall have the right and option to renew the term of this Lease for one (1) additional period term of five sixty (560) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised months by delivery delivering written notice thereof to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term primary Term, provided that, at the time of such notice and at the end of the leaseprimary Term, Tenant is not in default of any of the terms, covenants or conditions of this Lease beyond applicable cure periods. The Option Term Upon the delivery of said notice and subject to any conditions set forth in the preceding sentence, and upon the execution by Landlord and Tenant of an extension agreement containing such terms and provisions which are consistent with the provisions of this Paragraph, this Lease shall be of extended upon the same terms, covenants and conditions as provided in this Lease, except that the original lease except Base Rent rent payable under this Lease during said renewal term shall be at the prevailing market rate (including escalations) for the Option Term Premises at the commencement of such renewal determined as hereinafter provided. Notwithstanding the foregoing, any termination of this Lease, or, except for any Affiliate Transfer, any assignment of this Lease or subletting of more than fifteen percent (15%) of the Premises in effect at the time of notice to Landlord of the exercise of such renewal option, shall be terminate the then Prevailing Market Rent option of comparable space within the Gaithersburg, Maryland market areaTenant contained in this Paragraph. (ib) Within For the purposes of this Special Stipulation, “prevailing market rate” shall mean the arms length fair market annual base rental rate per rentable square foot under renewal leases and amendments entered into on or about the date on which the rate is being determined hereunder for space comparable to the Premises in the Building and office buildings comparable to the Building in the office market in which the Building is located (which fair market base rent shall also include annual or other periodic escalations thereof determined in a manner consistent with this Special Stipulation). The determination of fair market base rental shall take into account any material economic differences between the terms of this Lease and any comparison lease or amendment, such as rent abatements, construction costs and other concessions and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes. (c) If Landlord and Tenant cannot agree on the fair market base rental within thirty (30) days after Tenant’s delivery to Landlord of the written notice exercising the option to renew (the “Rent Negotiation Period”), the fair market base rental shall be established by the following procedure: (1) within fifteen (15) business days after receipt the expiration of the Rent Negotiation Period, Tenant and Landlord shall agree on a single independent MAI certified appraiser who shall have a minimum of ten (10) years experience in real estate leasing in the market in which the Premises is located, and Landlord and Tenant shall each notify the other (but not the appraiser), of its determination of such fair market base rental and the reasons therefor, (2) during the next seven (7) days both Landlord and Tenant shall prepare a written critique of the other’s determination and shall deliver it to the other party, and (3) on the tenth (10th) day following delivery of the critiques to each other, Landlord’s and Tenant’s notice exercising its option determinations and critiques (as originally submitted to extend the term of this Leaseother party, Landlord with no modifications whatsoever) shall notify Tenant of be submitted to the appraiser, who shall decide whether Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlordor Tenant’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent fair market base rental is more correct. The determination so chosen shall be the fair market base rental. The appraiser shall not be empowered to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then choose any number other than the Landlord’s estimate or Tenant’s. The fees of Prevailing Market Rent the appraiser shall be deemed to be agreed to paid by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termnon-prevailing party. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Fund Iii L P)

OPTION TO RENEW. (a) Provided Tenant is in possession of the Premises and is not in default of any term, covenant or condition of this Lease, Tenant shall have the option options to renew the term Term of this Lease for one two (12) additional period periods of five (5) years (the each, a Option Renewal Term”) following to commence immediately upon the expiration of the initial lease term provided Term and the first Renewal Term, as applicable, upon the same terms, covenants and conditions as contained in this Lease, except that this lease is in full force and effect, (i) the Tenant Annual Basic Rent during each Renewal Term shall be in possession at the “Prevailing Market Rate” and occupying (ii) following the Premisessecond Renewal Term there shall be no further option to renew except as specifically provided herein and (iii) there shall be no abatement of rent, and Tenant (iv) Landlord shall not be obligated to construct, pay for or grant an allowance with respect to tenant improvements unless otherwise specifically provided for in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the this Lease. All “Prevailing Market Rate” shall mean the current market rental rate at which Landlord would offer such rights space or space of approximately the same size and location to a renewal third party. In no event, however, shall the Annual Basic Rent during the Renewal Term be exercised by delivery less than the Annual Basic Rent reserved under this Lease for the Rental Year immediately preceding the Renewal Term for which the determination is being made. In order to Landlord of written notice of Tenant’s intention to renew exercise the term at least nine (9) months but not more option granted herein, Tenant shall notify Landlord, in writing, no earlier than twelve (12) months and no later than nine (9) months prior to the expiration of the then applicable term initial Term or the first Renewal Term, as applicable, that it is considering exercising its option to renew the Term. On receipt of such notice, Landlord will, in writing, not later than thirty (30) days after receipt of the lease. The Option Term shall notice from Tenant, quote Tenant what the new Annual Basic Rent will be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term applicable Renewal Term. Tenant shall be the then Prevailing Market Rent of comparable space within the Gaithersburgnotify Landlord, Maryland market area. (i) Within in writing, not later than fifteen (15) business days after receipt notice received of Tenant’s such Annual Basic Rent, as to whether or not it will exercise the option herein granted and if no such notice exercising its of exercise of the option is received, the option shall be deemed waived. In the event Tenant exercise the option, Landlord and Tenant shall execute a modification to extend this Lease acknowledging such renewal and setting forth the term new Annual Basic Rent. The options shall be void if, at the time of exercise of such options, Tenant is not in possession of the Premises or is in default under this Lease or if Tenant fails to deliver the requisite notice thereof within the time period specified above. The options granted herein shall not be severed from this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentseparately sold, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, assigned or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termtransferred. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Office Lease (Marpai, Inc.)

OPTION TO RENEW. 25.1. Provided the Tenant (a) is not then in default pursuant to the terms and conditions of this Lease, and (b) has not been in default (beyond applicable notice and grace periods if any) more than two (2) times during the initial Term or prior renewal term hereunder, the Tenant shall have is hereby given the option right and privilege to renew the term of this Lease for two (2) ten (10) year periods and one (1) additional period of five (5) years year period, to commence at the end of the initial Term, which renewals shall be upon the same terms and conditions as in this Lease contained, except that Tenant shall pay Base Rent during the option periods in the amounts set forth in Section 2.2 hereof. 25.2. Notwithstanding the above, the Base Rent payable during the first year of the second (2nd) ten (10) year renewal period shall be the greater of $1,404,239.51 per annum, or the fair market value of the Premises which shall be determined as follows: After Tenant has given written notice to the Landlord, as hereinafter provided, of its exercise of the second (2nd) ten (10) year option, the Landlord shall deliver to Tenant a written notice stating the Base Rent to be paid for the Premises during the first (1st) ten (10) year option period. In the event that the Tenant objects to the Base Rent quoted by Landlord, the issue of fair market value shall be open to negotiation between Landlord and Tenant. In the event the parties cannot agree within thirty (30) days after Landlord’s notice of the then fair market rental value, the parties shall agree on the appointment of a real estate appraiser (the “Option TermAppraiser”) following having the expiration M.A.I. designation, the cost of which shall be shared equally by Landlord and Tenant, which Appraiser shall be knowledgeable in the ▇▇▇▇▇▇ County, New Jersey market rental area, who shall make a fair market rental determination. The fair market rental determination will not take into account the improvements made by Tenant in the Premises and will take into account the extent to which the Base Rental is subject to an annual adjustment during the applicable Option Period. In the event that the parties cannot agree within thirty (30) days subsequent to the appointment of the initial lease term provided that this lease is in full force Appraiser, then the matter shall be submitted to binding arbitration pursuant to the rules for commercial arbitration of the American Arbitration Association, at the equal administrative cost of Landlord and effectTenant. If Tenant exercises its five (5) year Option to Renew, the Tenant fair market value which is applicable to the first (1st) year of said five (5) year renewal term shall be determined as set forth above. It is expressly understood and agreed that in possession and occupying any event (a) the Premises, and Tenant renewal Base Rent payable during the first (1st) year of the second (2nd) ten (10) year renewal term shall not be in default less than the annual Base Rent of ONE MILLION FOUR HUNDRED FOUR THOUSAND TWO HUNDRED THIRTY NINE AND 51/100 ($1,404,239.51) DOLLARS and (b) the Renewal Base Rent payable during the first (1st) year of the five (5) year renewal term shall not be less than the Annual Base Rent payable during the last year of the second (2nd) ten (10) year renewal term, in the performance or observance of any event fair market rent shall be determined to be less than said sum as such determination shall be made in the manner hereinabove provided. 25.3. The right, option and privilege of the termsTenant to renew this Lease as hereinabove set forth is expressly conditioned upon the tenant delivering to the Landlord in writing by certified mail, conditionsreturn receipt request, provisions and/or covenants twelve (12) months prior notice of the Lease. All such rights of a renewal its intention to renew, which notice shall be exercised given to the Landlord by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more Tenant no later than twelve (12) months prior to the expiration date fixed for the termination of the then applicable term of initial Lease Term or the leasefirst or second ten (10) year Option Period, as applicable. 25.4. The Option Term obligation to pay the Base Rent as hereinabove set forth shall be of in addition to the same terms, covenants obligation to pay all Additional Rent and other charges required by the terms and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Industrial Building Lease (Dendreon Corp)

OPTION TO RENEW. (a) Provided that Tenant is not in Default in the performance of the terms and conditions of the Lease, Tenant shall have the option right to renew the term of this the Lease for one (1) additional period term of five (5) years (the “Option Renewal Term”) on the following terms and conditions: A) To renew the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal , Tenant shall be exercised by delivery to give Landlord of written notice of Tenant’s intention to renew the term at least nine three hundred sixty-five (9365) months but not more than twelve (12) months days prior to the expiration of the then applicable Extension Term of Tenant’s intent to exercise its right to renew the term hereof. If ▇▇▇▇▇▇ fails to give Landlord the required notice to renew the term of the lease. The Option Term shall be of the same termsLease, covenants and conditions as the original lease except Base Rent for the Option Term shall be the set forth in this Section 6, then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant▇▇▇▇▇▇’s notice exercising its option right to extend the term of the Lease hereunder shall fully and forever terminate and be forfeit without any further notice to Tenant or without any further action by Landlord. Time is of the essence as to the notice deadlines and notice requirements contained in this LeaseSection 6. Any renewal of the Lease shall be upon the same terms and conditions as are set forth herein unless specifically provided otherwise herein. B) Base Rent for the Renewal Term shall be at the current fair market value rate for the Premises as determined pursuant to this Section 6. Within thirty (30) days after Tenant timely exercises its right to renew the term of this Lease for the Renewal Term (the “Negotiation Period”), Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or and Tenant shall notify Landlord negotiate in good faith to determine the fair market rental rate payable for the Renewal Term, which rate shall include rent, free rent, tenant improvement allowances, brokerage commissions, base years and other means for payment of operating expenses and taxes, construction time and all other lease concessions which non-renewing, non-equity tenants are then receiving in connection with the lease of comparable space in buildings that it has elected are comparable to submit the Building in terms of age, quality, size, location, services, amenities, quality of construction and appearance, and all other factors relevant to the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable fair market rental rate for the year of Renewal Term. C) In the then applicable Option Term; provided, however, that if event Landlord and Tenant does cannot elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be agree on the Base Rent payable by Tenant to Landlord during for the first year Renewal Term within the Negotiation Period, then within twenty (20) days after the end of the then applicable Option Term. (i) Definition: As used hereinNegotiation Period, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant shall each acting prudentlyselect an arbitrator (“Tenant’s Arbitrator” and “Landlord’s Arbitrator”, knowledgeablerespectively) who shall be licensed in the State of Wisconsin as an MAI appraiser with at least five (5) years of experience in appraising the type of matters for which they are called on to appraise hereunder in the Madison, Wisconsin metropolitan area. ▇▇▇▇▇▇▇▇’s Arbitrator and ▇▇▇▇▇▇’s Arbitrator shall name a neutral third arbitrator, similarly qualified, within twenty (20) days after the appointment of Landlord’s Arbitrator and ▇▇▇▇▇▇’s Arbitrator (“Neutral Arbitrator”). The Neutral Arbitrator must be someone with whom neither Landlord nor ▇▇▇▇▇▇ has had any material business dealings within the preceding ten (10) years. The Neutral Arbitrator shall, after consideration of the factors to be taken into account under the definition of fair market rent and hearing whatever evidence the Neutral Arbitrator deems appropriate from Landlord, Tenant and others, and assuming obtaining any other information the rent is not affected by undue stimulus. Implicit arbitrator deems necessary, in this definition is the consummation good faith, make its own determination of the lease fair market rental rate for the Premises as of such space beginning on the commencement date of the lease Renewal Term and for the duration of the Renewal Term (the “Final Determination”), such Final Determination to be made within forty-five (45) days after the appointment of the Neutral Arbitrator. In no event will the Final Determination set the Base Rent at a rate higher than the fair market value for the Premises under conditions whereby:proposed by Landlord’s Arbitrator or at a rate lower than the fair market value for the Premises proposed by ▇▇▇▇▇▇’s Arbitrator. The Neutral Arbitrator’s Final Determination and the market information upon which such determination is based shall be in writing and counterparts thereof shall be delivered to Landlord and Tenant within said forty-five (45) day period. The Neutral Arbitrator shall have no right or ability to determine the fair market rental rate in any other manner. The Final Determination shall be binding upon the parties hereto. The costs and fees of the Neutral Arbitrator shall be split equally by Landlord and ▇▇▇▇▇▇. If ▇▇▇▇▇▇’s Arbitrator and ▇▇▇▇▇▇▇▇’s Arbitrator fail to appoint the Neutral Arbitrator within the time and in the manner prescribed herein, then Landlord and Tenant shall jointly and promptly apply to the local office of the American Arbitration Association for the appointment of the third arbitrator.

Appears in 1 contract

Sources: Lease (Accuray Inc)

OPTION TO RENEW. (a) Provided that Tenant shall have furnish written notice to Landlord by certified or registered mail, postage prepaid, at least nine hundred twelve (912) days prior to the option to renew termination of the original term of this Lease and at least nine hundred twelve (912) days prior to the expiration of any Extended Term (as provided for one below), Tenant shall have two (12) consecutive options to renew this Lease (provided, however, that no default exists on the part of Tenant under the terms of this Lease, both as of the date of furnishing said notice of intention to renew and as of the first date of commencement of the applicable renewal period), and each such option shall be for an additional period term of five (5) years (Extended Term), commencing as of the “Option Term”) day immediately following the expiration termination of the initial lease term provided that of this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance Lease or observance of any of the terms, conditions, provisions and/or covenants of the LeaseExtended Term. All such rights of a renewal shall be exercised by delivery to Landlord of written notice Within thirty (30) days of Tenant’s intention 's notice to exercise its option to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option or to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate the new fixed minimum base rent, which shall be equal to 90% of Prevailing Market Rentthe then market rate for net leases for similar properties located in the Syracuse MSA. If In the event Tenant disagrees with Landlord’s estimate of Prevailing Market Rentfinds such new base rent acceptable, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected in writing of such acceptance within thirty (30) days of receipt of Landlord's notice setting forth the new base rent. In the event Tenant finds such new base rent unacceptable, Tenant shall notify Landlord in writing of such unacceptability within thirty (30) days of receipt of Landlord's notice setting forth the new base rent. Within ten (10) business days of receipt of Tenant's notice, Landlord and Tenant shall each nominate and appoint one (1) appraiser. Upon the appointment of the two (2) appraisers, the two (2) appraisers so appointed shall, within ten (10) business days of their appointment and before exchanging views as to the then market rate for net leases for similar properties located in the Syracuse MSA, appoint in writing a third appraiser and shall give written notice of such appointment to Landlord and Tenant. The appraisers selected pursuant hereto shall be sworn faithfully and fairly to determine the then market rate for net leases for similar properties located in the Syracuse MSA. The three (3) appraisers shall afford both Landlord and Tenant a hearing and the right to submit evidence with the determination privilege of Prevailing Market Rent to Arbitration, in which event cross-examination on the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: questions at issue. As used herein, the term “Prevailing Market Rent” means the most probable rent (soon as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, reasonably possible after the Landlord and Tenant have been heard, each acting prudently, knowledgeableof the appraisers shall prepare a written report, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation they shall then make their determination of the lease then market rate for net leases for similar properties located in the Syracuse MSA upon the basis of such space beginning on those written reports. In the commencement date event the three (3) appraisers are unable to agree upon a determination, the base rent shall be an amount equal to 90% of the lease average of the Premises under conditions whereby:two (2) closest rates contained in the reports submitted by the three (3)

Appears in 1 contract

Sources: Lease Agreement (Mony Group Inc)

OPTION TO RENEW. (a) Tenant shall have the option right to renew further extend the term Term of this Lease for one two (12) additional period periods of five (5) years each as hereinafter provided, each such five (the “Option 5) year renewal period being sometimes herein referred to as a "Renewal Term". The conditions to such renewals shall be as follows: (a) following the expiration of the initial lease term provided that this lease is The Lease shall be in full force and effect, the Tenant shall be in possession and occupying the Premises, effect and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants and conditions of the Lease. All such rights of a renewal shall be exercised by delivery , in respect to Landlord of written which notice of Tenant’s intention default has been given and has not been or is not being remedied in the time limits specified in the Lease; provided, however, that Landlord shall have the right, at its sole discretion, to renew waive the term at least nine non- default condition; (9b) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Such Renewal Term shall be of on the same terms, covenants and conditions as in this Lease; provided, however, the original lease except annual Base Rent for the Option such Renewal Term shall be the then Prevailing Market fair market Base Rental rate for such space on the date such Renewal Term shall commence in relation to comparable (in quality and location) space located in the relevant market area. The fair market Base Rent of comparable space within the Gaithersburg, Maryland market area. Leased Premises shall be determined as of the date three hundred sixty (i360) Within fifteen (15) business days after receipt prior to commencement of Tenant’s notice exercising its option the Renewal Term in question. If Tenant has properly elected to extend renew the term Term of this Lease, and Landlord and Tenant fail to agree at least three hundred thirty (330) days prior to commencement of the applicable Renewal Term upon the fair market Base Rent of the Leased Premises, the amount of the fair market Base Rent of the Leased Premises shall notify be determined by arbitration in accordance with the provisions of paragraph 7, below ("Arbitration"). The fair market Base Rent of the Leased Premises shall be based upon Tenant's presently contemplated use of the Leased Premises. In no event shall the Base Rent of the Leased Premises for the Renewal Term in question be less than the Base Rent payable by Tenant under the Term of Landlord’s estimate this Lease immediately prior to commencement of Prevailing the applicable Renewal Term (the "Minimum Renewal Rent"). If, however, the Fair Market Rent. If Tenant disagrees Base Rent determined in accordance with Landlord’s estimate the provisions of Prevailing Market paragraph 10, below, is less than the Minimum Renewal Rent, Tenant may rescind such renewal notice thereby terminating shall have the option to cancel its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected election to submit renew the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect Tenant's option to either rescind its renewal exercise of its option to renew must be exercised, if at all, not later than three (3) business days following Tenant's receipt of notice of the Fair Market Base Rent; (c) amount to each other (or to submit if one appraisal is less than one of the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day periodother appraisals and more than the other appraisal by the same amount, then the Landlord’s estimate of Prevailing Market Rent all three appraisals shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termaveraged). (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Office Lease Agreement (Carter Day Industries Inc)

OPTION TO RENEW. (a) Provided Tenant is not in default in the performance of any of the material terms, covenants and conditions of this Lease, Tenant shall have the option to renew the term of this Lease for two (2) successive five (5) year periods (collectively, the "Option Terms" and individually an "Option Term") commencing on the day following the end of the then applicable Term, upon all the applicable terms, covenants and conditions set forth herein, except that monthly Base Rent payable during each Option Term shall be ninety percent (90%) of the then fair market monthly rental value of the Premises as of the commencement of such Option Term, provided that in no event shall the Base Rent be adjusted as of the commencement of an Option Term to an amount less than the Base Rent in effect immediately prior to such Option Term. The fair market rental value of the Premises shall be determined by mutual consent of the Tenant and Landlord, provided, however, that if Tenant and Landlord fail to mutually agree upon the fair market rental value of the Premises, at or prior to nine months before the commencement of the Option Period, then Tenant and Landlord shall each select an M.A.I. Appraiser, and the two appraisers shall mutually select a third appraiser, each to make an independent determination of the fair market retail value of the Premises, utilizing the then current rental rates for similar properties within a five (5) mile radius of the subject property , and each to submit such determinations to Tenant and Landlord no later than six months prior to commencement of the Option Period. The fair market rental value shall be the average of the amounts submitted by each of the three (3) M.A.I. Appraisers, and such rate shall be the new base rental rate for the Option Period. Costs and expenses of the three appraisers shall be divided and paid equally as between Landlord and Tenant. Within ten (10) days after receipt of the fair market rental value, Tenant may elect to terminate its exercise of the option to extend by giving written notice to Landlord. The option to renew the Term pursuant hereto shall be conditioned upon Tenant's giving Landlord written notice of its election to renew not less than one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months year prior to the expiration of the then applicable term of Term. Should Tenant fail to exercise the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend renew the term Term hereof as hereinabove provided, Tenant shall have no right thereafter to renew the Term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by References in this lease, or Tenant shall notify Landlord that it has elected Lease to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent tile "Term " shall be deemed to be agreed to mean the initial Term of this Lease as extended by Tenantthe Option Terms, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termas applicable. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Assignment and Assumption of Lease (Aei Income & Growth Fund Xxi LTD Partnership)

OPTION TO RENEW. (a) Provided Tenant is not in default hereunder and has performed all of its covenants and obligations hereunder, Tenant shall have the option to renew extend the term of this Lease (hereinafter the "Option") for one (1) additional period of five (5) years ("Renewal Term") upon the “Option Term”) same terms and conditions, except for Base Rent, and upon the following the expiration of the initial lease term provided that this lease is in full force further terms and effect, the conditions: A. Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of give written notice of Tenant’s intention to renew the term at least nine Landlord, six (9) months but not more than twelve (126) months prior to the expiration of the then applicable term current lease term, of its request for the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except annual Base Rent for applicable to the Option Term shall be particular extension period then provided by the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. Option. Within thirty (i30) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease's Notice, Landlord shall notify advise Tenant in writing ("Landlord's Rent Determination Notice") of Landlord’s estimate 's determination of Prevailing Market Base Rent. If Landlord and Tenant agree on Market Base Rent, then they shall promptly execute an amendment to this Lease stating and incorporating such agreed-upon Market Base Rent as the Base Rent for the applicable space. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent's determination, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Landlord and Tenant shall notify Landlord that it has elected to submit have a period of thirty (30) days after Tenant's receipt of Landlord's Rent Determination Notice (the determination of Prevailing Market Rent to Arbitration, "Negotiation Period") in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators to further negotiate Market Base Rent. If Landlord and the establishment of the Prevailing Tenant are unable to agree upon Market Base Rent payable for the year of Premises within the then applicable Option Term; providedNegotiation Period, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Base Rent shall be deemed to be agreed to determined by Tenantthree (3) appraisers, each of whom must have experience in appraising rentals in large office buildings and shall be the Base Rent payable by Tenant to Landlord during the first year knowledge of the then applicable Option Term. (i) Definition: As used hereinrental real estate market in the south suburban Minneapolis-St. Paul ▇▇▇ropolitan market area and no direct or indirect financial or business interest in or in common with Landlord, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Tenant or any affiliate of either of them. Landlord and Tenant shall each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:designate one (1) independent

Appears in 1 contract

Sources: Lease Agreement (Interactive Group Inc)

OPTION TO RENEW. (a) 26.1 Tenant shall have the option right to renew extend the term of this Lease for one (1) additional period of five (5) years year lease term (the “Option Renewal Term”) ), upon the following conditions: a. Tenant has not been in default at any time during the expiration Lease Term; b. Tenant’s financial net worth is then equal to or greater than such worth as of the initial lease term provided that this lease is in full force and effectLease Commencement Date; c. Tenant has not previously assigned the entire Lease, the except to an Affiliate of Tenant; d. Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery has delivered to Landlord of written notice of Tenant’s its intention to renew the term at least nine (9) months but exercise this option, not more less than twelve (12) months prior to the expiration end of the then applicable term of Lease Term; and e. All lease terms for the lease. The Option Renewal Term shall be of the same termsas in the Lease, covenants and conditions as except that the original lease except annual Base Rent for the Option Term Renewal Terms shall be the then Prevailing Fair Market Rent as of the commencement of the applicable Renewal Term, as determined in Subsection f below, and there shall be no further option to renew the Lease Term after the second Renewal Term. “Fair Market Rent”, as used in this Lease, shall be equal to the amount that a willing, comparable space within tenant would pay and a willing, comparable landlord of a comparable office building in the GaithersburgBridgewater, Maryland New Jersey market area(hereinafter referred to as the “Market”) would accept, in an arms’ length transaction, giving appropriate consideration to new base year, tenant improvements, brokerage commission and any other relevant terms and conditions materially affecting the Fair Market Rate. f. The Fair Market Rate shall be determined as follows: (i) Within fifteen For a period of thirty (1530) business days after receipt of Tenant’s notice exercising its option to extend the term of this Leasenotice, Landlord and Tenant shall notify negotiate in good faith the Fair Market Rate; (ii) If the parties are unable to agree on the new Fair Market Rate, then Landlord and Tenant shall each select an appraiser in the person of an experienced real estate broker, each of whom must have at least ten (10) years commercial leasing experience in the New Jersey market (the “Market”), within forty (45) days after Landlord’s estimate receipt of Prevailing Tenant’s notice; (iii) The two appraisers shall confer to see if they can agree on the Fair Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Rate for space in the Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment as of the Prevailing Market Rent payable for time the year of Renewal Term is to begin; and, if they reach agreement, the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit rate upon which they agree shall become the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the new Base Rent payable by Tenant to Landlord during for the first year of the Renewal Term; (iv) If the two appraisers cannot reach agreement, then applicable Option Termeach shall designate the rate which he or she believes is the appropriate new Fair Market Rate. Unless either Landlord agrees to the rate specified by Tenant’s appraiser or vice versa, the two appraisers shall agree on a third appraiser, who shall have no less than the minimum experience required of the initial two appraisers, within fifteen (15) days after both appraisers have been designated; and Table of Contents (v) The third appraiser shall determine which of the two appraisals for the new Fair Market Rate more accurately represents the new Fair Market Rate which the third appraiser believes is the appropriate new Fair Market Rate. Upon such determination, the new Fair Market Rate selected by the third appraiser shall be used. (ivi) Definition: As used hereinIf Landlord or Tenant fails to comply with the time guidelines in this Section 26.1, then the Fair Market Rate submitted by the other shall automatically apply. (vii) Each party shall bear the expense of its own appraiser and shall divide equally the expense of the third appraiser. 26.2 After the Appraisers establish the Fair Market Rent, the term “Prevailing Market Rent” means parties shall immediately execute an amendment to this Lease stating the most probable rent (as determined pursuant new Base Rent for the Renewal Term. The renewal options are personal to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable Tenant and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:are non-transferable.

Appears in 1 contract

Sources: Office Lease Agreement (Dendreon Corp)

OPTION TO RENEW. (a) Tenant DCH Auriga shall have an option to renew the 2018 Wyler Centre Tenancy Agreement for a term of three years commencing from 1 January 2028 and expiring on 31 December 2030 at the then prevailing market rent (which shall not be higher than 125% of the then monthly rent paid or payable by DCH Auriga for the month immediately preceding the option start date). The exercise of the option to renew may constitute continuing connected transactions of the term Company under the Listing Rules which may be subject to, as the case may be, reporting, announcement, annual review, circular and independent shareholders’ approval requirements. The Company will comply in full with all applicable reporting, disclosure and, if applicable, Independent Shareholders’ approval requirements under Chapter 14A of this Lease for one the Listing Rules. Subject to prior written consent from Famous Land, DCH Auriga shall have an option to sub-let up to 50% of the Premises at the then open market rental and on substantially the same terms and conditions of the 2018 Wyler Centre Tenancy Agreement, provided that, among other things, (1) additional no sub-tenancy shall be granted for a period of five (5) exceeding three years (or otherwise for a period which would extend beyond the “Option Term”) following the expiration expiry date of the initial lease term provided that this lease is in full force 2018 Wyler Centre Tenancy Agreement; and effect, the Tenant (2) shall be in possession and occupying DCH Auriga derive a profit from any sub-letting of the Premises, such profit shall be shared with Famous Land in accordance with the 2018 Wyler Centre Tenancy Agreement. Beginning from 1 January 2025, DCH Auriga shall have the right to surrender the Premises by serving on Famous Land a not less than 9 months’ prior notice in writing and Tenant shall not confirming its intention to surrender the Premises at a date to be specified in default in the performance or observance of any such notice. Upon Famous Land's acceptance of the termssaid surrender notice, conditions, provisions and/or covenants the parties shall execute a surrender agreement and DCH ▇▇▇▇▇▇ shall pay to Famous Land upon signing of the Lease. All such rights of agreement a renewal shall be exercised by delivery non-refundable sum which is equivalent to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) 3 months but not more than twelve (12) months prior to the expiration of the then applicable term monthly rental of the leasePremises as liquidated damages payable to Famous Land due to such surrender. The Option Term shall be 2018 Wyler Centre Tenancy Agreement is subject to the approval by the Independent Shareholders at the General Meeting of an ordinary resolution by way of poll approving the same terms, covenants 2018 Wyler Centre Tenancy Agreement and conditions as the original lease except Base Rent for transactions contemplated thereunder and the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. Proposed Caps. References are made to (i) Within fifteen (15) business days after receipt the announcement of Tenant’s notice exercising its option to extend the term Company dated 31 May 2018 in respect of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators Renewal Tenancy Agreements and the establishment Wyler Centre Tenancy Agreement; and (ii) the announcement of the Prevailing Market Rent payable for the year Company dated 13 June 2018 in respect of the then applicable Option Term; provided, however, 2018 Tenancy Renewal Offer. Given that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used hereinthe Existing Tenancies and the 2018 Wyler Centre Tenancy Agreement were entered into by the Group within a 12-month period; and (ii) all the landlords under the Existing Tenancies and the 2018 Wyler Centre Tenancy Agreement are subsidiaries of CITIC Limited, the term “Prevailing Market Rent” means transactions contemplated under the most probable rent (as determined Existing Tenancies are required to be aggregated with the transactions contemplated under the 2018 Wyler Centre Tenancy Agreement pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation Rule 14A.81 of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Listing Rules.

Appears in 1 contract

Sources: Tenancy Agreement

OPTION TO RENEW. (a) Tenant shall have the option to renew the term of this the Lease for one two (12) additional period periods of five (5) years each (the “Option Term”) following the expiration of the initial lease term Lease term, provided that this lease Lease is in full force and effect, ’. the original Tenant named herein shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the this Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the leaseLease term. The Option Term Terms shall be of on the same terms, covenants and conditions as the original lease initial Lease term except Base Rent for the first Lease Year of each Option Term shall be the greater of (i) one hundred three percent (103%) of the previous year’s Base Rent including Additional Rent or (ii) one hundred percent (100%) of the then Prevailing Market Rent (as hereinafter defined) of comparable space within the Gaithersburg, Maryland Gaithersburg market area., including current operating costs and concessions, which Rent shall be established as follows: (ia) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of the Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of the Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Landlord’s estimate of the Prevailing Market Rent to Arbitrationarbitration, in which event the provisions of subparagraph (b)(ii)(ab) of this Article 57 49 shall govern for the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and, if the same is greater than 103% of the previous year’s Base Rent and Additional Rent, then Landlord’s estimate of the Prevailing Market Rent shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises (and any Additional Premises) would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space Lease beginning on the commencement date of the lease of the Premises Option Term under conditions whereby:

Appears in 1 contract

Sources: Lease (Seracare Life Sciences Inc)

OPTION TO RENEW. (a) Provided Tenant is not then in default under this Lease, to the extent of the portion of the Premises Tenant is actually occupying at the end of the applicable Term or Option Term, Tenant shall have the option to renew the term of this Lease for one up to two (12) additional period successive periods of five (5) years each (the “Option TermTerms(s)) following ). If Tenant exercises any option, all the expiration provisions of the initial lease term provided that this lease is Lease shall remain in full force and effecteffect and the parties’ rights, duties, and obligations shall remain the Tenant same except Sections 34, 35, and 36 hereof shall be deleted in possession their entirety and occupying the Premises, and rent set forth in Section 5 shall be adjusted as herein provided. Tenant shall may not be exercise this option for any five (5) year period if it is not then a Tenant under this Lease or if it is in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the under this Lease. All such rights In order to exercise any option, Tenant must give Lessor written notification of its election to do so, together with a renewal shall be exercised by delivery to Landlord of written notice then-current copy of Tenant’s intention to renew the term at least nine financial statements, no later than one (91) months but not more than twelve (12) months calendar year prior to the expiration of the then applicable term of under which it is currently operating (the leaseinitial term or any subsequently exercised Option Term, whichever is applicable). Base rent payable under any Option term shall be established for each Option Term prior to its commencement. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent base rent utilized for the any Option Term shall be the then prevailing rate (the “Prevailing Market Rent Rental Rate”) at the commencement of comparable such Option Term, for renewals of space within in the GaithersburgBuilding of equivalent quality, Maryland market area. (i) size, utility and location, with the length of the Option Term and the credit standing of Tenant taken into account. Within fifteen (15) business 30 days after receipt of Tenant’s notice exercising to renew, Lessor shall deliver to Tenant written notice of the Prevailing Rental Rate and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other terms and conditions offered including, whether any letter of credit would be required if Lessor determines, in its option to extend reasonable judgment, that Tenant’s financial condition or credit-worthiness has materially deteriorated since the term date of this Lease, Landlord shall together with documentation substantiating such determination. Tenant shall, within thirty (30) days after receipt of Lessor’s notice, notify Lessor in writing whether; (i) Tenant accepts or rejects Lessor’s determination of Landlordthe Prevailing Rental Rate; and (ii) whether Tenant disputes Lessor’s estimate determination that a letter of Prevailing Market Rentcredit will be required (if a letter of credit is required in Lessor’s offer). If Tenant disagrees with Landlordtimely notifies Lessor that Tenant accepts Lessor’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year Rental Rate (including any letter of the then applicable Option Term; providedcredit requirement), howeverthen, that if Tenant does not elect to either rescind its renewal notice on or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on before the commencement date of the Option Term, Lessor and Tenant shall execute an amendment to this Lease extending the Term on the same terms provided in this Lease, except as follows: (a) Basic Rent shall be adjusted to the Prevailing Rental Rate; and (b) Lessor shall lease to Tenant the Premises in their then-current condition, and Lessor shall not provide to Tenant any allowances (e.g. moving allowance, construction allowance, and the like) or other tenant inducements, unless mutually agreed to by Lessor and Tenant at that time. If Tenant accepts Lessor’s determination of the Prevailing Rental Rate, but rejects Lessor’s requirement for a Letter of Credit, then Lessor and Tenant agree that the Parties shall have an additional thirty (30) day period to allow the Parties additional time to further negotiate the Letter of Credit requirement, including Tenant’s right to provide documentation, evidence or other assurances to support or substantiate that Tenant’s financial condition should be reasonably acceptable to Lessor. If after the thirty (30) day additional period, the parties cannot agree whether a Letter of Credit should be required, then Tenant’s rights under this Section shall terminate and Tenant shall have no right to renew this Lease. If Tenant rejects Lessor’s determination of the Prevailing Rental Rate, or fails to timely notify Lessor in writing that Tenant accepts or rejects Lessor’s determination of the Prevailing Rental Rate, time being of the essence with respect thereto, Tenant’s rights under this Section shall terminate and Tenant shall have no right to renew this Lease. Tenant’s rights under this Section shall terminate if (1) this Lease or Tenant’s right to possession of the Premises is terminated, (2) Tenant assigns all of its interest in this Lease or sublets all of the Premises, (3) Tenant fails to timely exercise its option under conditions whereby:this Section, time being of the essence with respect to Tenant’s exercise thereof or (4) in connection with an offer, Lessor determines, it its sole but reasonable discretion, that Tenant’s financial condition or creditworthiness has materially deteriorated since the date of this Lease and Tenant fails to provide adequate Credit assurances to Lessor as previously outlined within in this Section.

Appears in 1 contract

Sources: Lease (Mesaba Holdings Inc)

OPTION TO RENEW. (a) Tenant shall will have the option a One-Time Option to renew the term of this Lease Renew current space for one (1) additional period of five (5) years at the current market rent at that time by giving the Landlord six (6) month written notice prior to lease expiration. The space will be renewed “as is” and Landlord will not be required to provide Tenant Improvement Allowance. Co-Broker Fees will not be paid by Landlord if Tenant chooses to exercise Option. If Landlord and Tenant cannot agree on the “Option Term”) following market rent rate within 30 days after T▇▇▇▇▇’s receipt of Landlord’s proposed market rent rate (it being agreed that both Landlord and Tenant will be reasonable in their attempt to determine the market rent rate), Tenant, by written notice to Landlord made within 5 business days after the expiration of such 30 day period, may cause said rate to be determined by arbitration in accordance with the initial lease term provided that this lease is in full following provisions, failing such timely notice Tenant’s One-Time Option to Renew shall be null and void and of no force and effect: The determination of the market rent rate will be determined by an arbitration board consisting of three reputable real estate professionals with experience with similar buildings within the southwest suburban Minneapolis area. Within 20 days after initiation of arbitration, each party shall appoint one arbitrator who shall have no material financial or business interest in common with the Tenant party making the selection and shall not have been employed by such party for a period of three years prior to the date of selection. If a party fails to give notice of appointment of its arbitrator within the 20 day period provided above, then upon 5 business days’ notice the other party may appoint the second arbitrator. The arbitrators selected by the parties shall attempt to agree upon a third arbitrator. If the first two arbitrators are unable to agree on a third arbitrator within 30 days after the appointment of the second arbitrator, then such third arbitrator shall be in possession appointed by the presiding judge of the Hennepin County District Court, or by any person to whom such presiding judge formally delegates the matter or, if such methods of appointment fail, by the American Arbitration Association. Within 30 days of the appointment of the third arbitrator, Landlord, Tenant and occupying the three arbitrators shall meet at the Premises, and in a proceeding held in accordance with the rules of the American Arbitration Association, Landlord and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior each submit to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent arbitrators their proposals for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, rent rate and shall be allowed to present such evidence and testimony in support thereof as is allowed under the Base Rent payable by Tenant to Landlord during the first year rules of the then applicable Option Term. (i) Definition: As used hereinAmerican Arbitration Association. The arbitrators shall be instructed that within 30 days after the date on which Landlord, Tenant and the arbitrators conclude such meeting, the term “Prevailing Market Rent” means arbitrators shall select one of the most probable two proposed market rent (rate figures, with no compromise or alternative market rent rate figures to be permitted. The market rent rate figure selected by a majority of the arbitrators shall be binding upon Landlord and Tenant. The decision of the arbitrators, determined as determined pursuant to the appraisal procedure hereinafter above set forth) at which , will be final and non-appealable. Except where specifically provided otherwise in the Premises would Lease, each party shall bear its own expenses in connection with the arbitration and the costs of its arbitrator, and the cost of the third arbitrator shall be leased in a comparable and open market, under all conditions requisite to a fair lease, the shared equally by Landlord and Tenant each acting prudentlyT▇▇▇▇▇. The costs of all counsel, knowledgeable, experts and assuming the rent is not affected other representatives that are retained by undue stimulus. Implicit in this definition is the consummation of the lease of a party will be paid by such space beginning on the commencement date of the lease of the Premises under conditions whereby:party.

Appears in 1 contract

Sources: Lease Agreement (PetVivo Holdings, Inc.)

OPTION TO RENEW. (aREFERENCE PARAGRAPH 1J & 3) Tenant shall have the option is hereby granted three additional five (5) year options to renew extend the term of this Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of giving written notice of Tenant’s intention the exercise of the option to renew the term Landlord at least nine (9) three months but and not more earlier than twelve (12) six months prior to the expiration of the then applicable then-current term of this lease or any extension term and, further provided, that Tenant is not in default under this lease on the date of giving the notice or on the date of commencement of the provisions of this lease shall remain in full force and effect for the extension term that at the time the option is exercised the Annual Basic Rent and any cost of living increases shall be at 95% of prevailing rates in similar buildings in the downtown Sacramento immediate area, ninety (90) days prior to the commencement of the option periods. The Annual Basic Rent at the commencement of the option period shall be at the prevailing rental rate of the Premises as agreed upon by the Landlord and Tenant. The determination for prevailing rental rate shall specifically exclude any consideration for: (a) Tenant’s occupancy of the Premises, (b) the value of any improvements to the Premises made and/or paid for by Tenant, or Central Bank or any related entity or (c) the value, if any of any option to extend this lease. The Option Term If the parties shall fail to agree on the rental rate for any extended term, within thirty (30) days of the date of the notice exercising a right of extension is sent to Landlord as hereinabove required, then the rental rate for the Premises shall be determined by competent and reputable real estate appraisers agreed upon by the parties. If an appraiser cannot be agreed upon within sixty (60) days from the date notice is sent, then rental rate shall be determined by a single arbitrator selected from a list of five (5) real estate appraisers to be supplied by the American Arbitration Association or its successor in interest thereto within (90) days from the date notice is sent, selection of the same termssingle arbitrator shall be made by each party or duly designated representative thereof, covenants and conditions striking a name of an arbitrator alternately from such list of five (5) arbitrators until one remains. The remaining arbitrator shall determine the rental value based upon guide lines set forth herein within 180 days of the date the notice was sent. The rental rate as the original lease except Base Rent for the Option Term so determined shall be the then Prevailing Market Rent of comparable space within rent hereunder for the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rentapplicable extended term. If Tenant disagrees with Landlordthe arbitrator’s estimate of Prevailing Market Rentdetermination indicates a rental rate more than the annual rent paid for the original term or any prior option period, Tenant may rescind such renewal notice thereby terminating its right cancel this Lease within thirty days from receipt of renewal provided the arbitrator’s decision by this leasegiving ▇▇▇▇▇▇▇▇ three (3) months prior written notice. All fees and expenses of appraiser or arbitrators shall be borne equally by the Tenant and Landlord. If for any reason beyond the reasonable control of Landlord and tenant the rental rate for the extended terms has not been established prior to commencement of the extended term, or Tenant shall notify Landlord that it continue paying rent during the extended term at the former rate until the adjusted rental value has elected to submit been established. As soon as the determination of Prevailing Market Rent to Arbitrationrental rate has been established, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable rent paid by Tenant for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent extended term shall be deemed adjusted retroactively to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:extended term. INITIAL HERE INITIAL HERE

Appears in 1 contract

Sources: Office Lease (Placer Sierra Bancshares)

OPTION TO RENEW. (a) Provided an Event of Default is not in existence as of the date of the Renewal Notice or on the commencement of the Renewal Period, Tenant shall have the option (the "Renewal Option") to renew the term Term of this Lease for one (1) additional period of five (5) years year period (the “Option Term”"Renewal Period"). If Tenant desires to exercise the Renewal Option, Tenant must deliver written notice (the "Renewal Notice") following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more less than twelve (12) months prior to the scheduled expiration of the then applicable term of Term; otherwise, the leaseRenewal Option will lapse and be deemed forever waived by Tenant. The Option Term shall be of the same terms, covenants terms and conditions as that are contained in this Lease will apply during the original lease Renewal Period, except that the Base Rent for the Option Term shall will be ninety-five percent (95%) the then Prevailing Market Rent Rental Rate (as defined on Exhibit J), Landlord will make its determination of comparable space the then Prevailing Market Rental Rate and send such determination to Tenant not less than ninety (90) days prior to the commencement of the Renewal Period. Any attempt by Tenant to exercise the Renewal Option by any method, at any time or under any circumstances other than as specifically set forth herein will be null and void and of no force or effect at the sole option and discretion of Landlord. In the event that Tenant does not agree with Landlord's determination of the then Prevailing Market Rental Rate, then Tenant must notify Landlord within the Gaithersburg, Maryland market area. ten (i) Within fifteen (1510) business days after receipt of Landlord's determination that (a) it rescinds it exercise of the Renewal Option (and the Renewal Option will be deemed waived by Tenant’s notice exercising ), or (b) that it disputes such determination. In the event Tenant does not notify Landlord of its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentdispute within such ten (10) business day period, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected will be deemed to submit the have accepted Landlord's determination of Prevailing Market Rent Rental Rate. If Tenant does notify Landlord of its dispute within such ten (10) business day period, and if the parties are unable to Arbitration, in which event the provisions of subparagraph resolve such matter within thirty (b)(ii)(a30) of this Article 57 shall govern the selection of arbitrators and the establishment days of the Prevailing Market Rent payable for the year expiration of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen ten (1510) business day period, then either party may request that the Landlord’s estimate matter be resolved by binding arbitration administered and conducted under the Commercial Arbitration Rules of Prevailing Market Rent the American Arbitration Association and pursuant to the provisions of the Illinois Uniform Arbitration Act. The parties agree that the arbitrator must be a real estate professional with at least ten (10) years leasing experience in the leasing of commercial office space in Chicago, Illinois. Not less than ten (10) days prior to the arbitration hearing, the parties shall be deemed to be agreed to by Tenantexchange with each other their last, and shall be the Base Rent payable by Tenant to Landlord during the first year best determinations of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means Rental Rate. The arbitrator shall be limited to awarding only one or the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation other of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:two amounts submitted.

Appears in 1 contract

Sources: Lease Agreement (Coolsavings Inc)

OPTION TO RENEW. Provided Lessee is not in default of any term or condition of the Lease on the date notice of exercise is given or on the commencement of the applicable option term (a) Tenant unless the default is cured within the applicable cure period), Lessee shall have two (2) Options to Extend the option to renew the lease term for two (2) periods of this Lease for one sixty (160) additional period of five months each (5) years (the “each, an "Option Term”) following "), upon the expiration of same terms and conditions as are set forth in the initial lease term provided that this lease is in full force and effectLease, except the Tenant Monthly Minimum Rent shall be in possession increased as set forth below and occupying except that the Premises, tenant improvement provisions and Tenant early cancellation provisions shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Leaseapply. All such rights of a renewal The options shall be exercised exercised, if at all, by delivery to Landlord of written notice of Tenant’s intention to renew the term Lessor at least nine ten (9) months but not more than twelve (1210) months prior to the expiration of the then applicable term of the leaseexisting Lease term. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term rent shall be the fair market rent as agreed by Lessee and Lessor. If the parties can't agree, then Prevailing Market on the commencement of each Option Term, the Monthly Minimum Rent shall be increased to the then current fair market rent (the "New Rent"). The New Rent shall be the average prevailing rental rate for comparable space. The parties agree that for purposes of comparable space determining the New Rent, they will look to the leases signed within the Gaithersburgprior six (6) months for space on the first floor of the following buildings: 1800 ▇▇▇ ▇▇▇▇▇▇, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend ▇▇▇▇▇ ▇▇▇e▇▇▇▇ ▇▇▇lding and the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market RentMetropolitan Park Buildings. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord there are no leases signed within that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable time period for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day periodfirst floor space in those buildings, then the Landlord’s estimate parties will use leases signed within the last six (6) months for space in the top 35% of Prevailing Market floor space in those buildings. The parities agree to select an independent appraiser who will contact the owners of those buildings, obtain the most recent lease rates for the applicable space, average the result (if there are more than one) and produce the figure which shall be considered the "New Rent". The party who is furthest from the appraiser's New Rent shall be deemed to be agreed to by Tenant, and shall be pay the Base Rent payable by Tenant to Landlord during the first year fee of the then applicable Option Term. appraiser, who's determination will be binding. Lessor shall prepare and Lessee shall execute a lease amendment for the extension within thirty (i30) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation days after determination of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:New Rent, who's determination will be binding.

Appears in 1 contract

Sources: Office Lease (Targeted Genetics Corp /Wa/)

OPTION TO RENEW. (a) Tenant shall have the option right to renew further extend the term Term of this Lease for one two (12) additional period periods of five (5) years each as hereinafter provided, each such five (the “Option 5) year renewal period being sometimes herein referred to as a "Renewal Term". The conditions to such renewals shall be as follows: (a) following the expiration of the initial lease term provided that this lease is The Lease shall be in full force and effect, the Tenant shall be in possession and occupying the Premises, effect and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants and conditions of the Lease. All such rights of a renewal shall be exercised by delivery , in respect to Landlord of written which notice of Tenant’s intention default has been given and has not been or is not being remedied in the time limits specified in the Lease; provided, however, that Landlord shall have the right, at its sole discretion, to renew waive the term at least nine non- default condition; (9b) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Such Renewal Term shall be of on the same terms, covenants and conditions as in this Lease; provided, however, the original lease except annual Base Rent for the Option such Renewal Term shall be the then Prevailing Market fair market Base Rental rate for such space on the date such Renewal Term shall commence in relation to comparable (in quality and location) space located in the relevant market area. The fair market Base Rent of comparable space within the Gaithersburg, Maryland market area. Leased Premises shall be determined as of the date three hundred sixty (i360) Within fifteen (15) business days after receipt prior to commencement of Tenant’s notice exercising its option the Renewal Term in question. If Tenant has properly elected to extend renew the term Term of this Lease, and Landlord and Tenant fail to agree at least three hundred thirty (330) days prior to commencement of the applicable Renewal Term upon the fair market Base Rent of the Leased Premises, the amount of the fair market Base Rent of the Leased Premises shall notify be determined by arbitration in accordance with the provisions of paragraph 10, below ("Arbitration"). The fair market Base Rent of the Leased Premises shall be based upon Tenant's presently contemplated use of the Leased Premises. In no event shall the Base Rent of the Leased Premises for the Renewal Term in question be less than the Base Rent payable by Tenant under the Term of Landlord’s estimate this Lease immediately prior to commencement of Prevailing the applicable Renewal Term (the "Minimum Renewal Rent"). If, however, the Fair Market Rent. If Tenant disagrees Base Rent determined in accordance with Landlord’s estimate the provisions of Prevailing Market paragraph 10, below, is less than the Minimum Renewal Rent, Tenant may rescind such renewal notice thereby terminating shall have the option to cancel its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected election to submit renew the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect Tenant's option to either rescind its renewal exercise of its option to renew must be -33- exercised, if at all, not later than thirty (30) days following Tenant's receipt of notice or of the Fair Market Base Rent; (c) Tenant shall exercise its right to submit a Renewal Term, if at all, by notifying Landlord in writing of its election to exercise the determination right to renew the Term of Prevailing Market this Lease no later than three hundred sixty (360) days prior to the date of commencement of the Renewal Term in question. For a period of thirty (30) days following the date of notice, the parties shall make a good faith effort to agree upon the fair market Base Rent of the Leased Premises for such Renewal Term. Any agreement reached by the parties with respect to Arbitration during such fifteen (15) day period, then fair market Base Rent of the Landlord’s estimate of Prevailing Market Rent Leased Premises for such Renewal Term shall be deemed to be agreed to by Tenant, expressed in writing and shall be executed by the Base Rent payable by Tenant parties, and a copy delivered to Landlord during the first year each of the then applicable Option Term. (i) Definition: As used herein, parties. In the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the event that Landlord and Tenant fail to agree within said thirty (30) day time period, the fair market Base Rent for the Leased Premises for such Renewal Term shall be determined by Arbitration. The arbitrators shall be directed to determine the fair market Base Rent for the Leased Premises as above provided and shall be instructed to make said appraisal independently, without consulting with each acting prudentlyother. Upon an established date at an established time, knowledgeableall three (3) arbitrators shall simultaneously submit their determinations as to fair market Base Rent, such determination to be submitted in sealed envelopes and assuming to be opened jointly by Landlord and Tenant. The fair market Base Rent for the rent Renewal Term shall be determined by averaging the two (2) arbitrators' fair market Base Rent determinations which are closest in amount to each other (or if one appraisal is not affected by undue stimulus. Implicit in this definition is the consummation less than one of the lease of such space beginning on other appraisals and more than the commencement date of other appraisal by the lease of the Premises under conditions whereby:same amount, all three appraisals shall be averaged).

Appears in 1 contract

Sources: Office Lease Agreement (Carter Day Industries Inc)

OPTION TO RENEW. (a) Tenant shall have the 46.1 The Lessee has an option to renew the term of this Lease for one (1) an additional period of five 24 (5twenty four) years (months at open market rentals. For the “Option Term”) following purposes of this clause the expiration open market rental is the base rental which a willing Lessee will pay and a willing Lessor will accept on the open market for a lease of the initial lease term provided that leased premises for the period and upon the terms set out in this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall agreement. 46.2 The option to renew must be exercised by delivery to Landlord of the Lessee by delivering a written notice to that effect to the Lessor at the Lessor's address by not later than one hundred and twenty days before the commencement of Tenant’s intention to renew the term renewal period, failing which the option shall lapse. 46.3 The Lessor shall inform the Lessee in writing, at least nine (9) months but not more than twelve (12) months prior to ninety days before the expiration commencement of the then applicable renewal period of the amount which he proposes the open market rental for each term of the leaserenewal period should be. The Option Term Unless the Lessee, by notice in writing to the Lessor, delivered not later than sixty days before the commencement of the renewal period, rejects the Lessor's proposal, the open market rental shall be as proposed by the Lessor. 46.4 In the event of the same termsLessee rejecting the Lessor's proposal, covenants the two parties shall use their best endeavours to reach agreement on the open market rental by not later than thirty days before the commencement of the renewal period. Should they not be able to agree, then the open market rental shall be determined by an expert as set out in 46.5, and conditions as such determination shall be final and binding on both parties. 46.5 The expert shall be nominated by the original lease except Base Rent President for the Option Term time being of the South African Property Owners' Association at the request of the Lessor; shall act as an expert, and not as an arbitrator; shall give both parties an opportunity to make submissions to him before making a determination; shall determine which party shall be the then Prevailing Market Rent of comparable space within the Gaithersburgresponsible for his fees and disbursements however if he makes no such determinations, Maryland market areahis fees and disbursements shall be paid by both parties in equal shares. 46.6 In the event of the parties not having reached agreement on the open market rental at the expiry of this lease and if the Lessee is still in occupation of the leased premises then the Lessee, pending resolution of such rental in terms of 46.5 hereof, hereby agrees to pay the rental and all other charges payable for the last month of the lease period escalated by the rates as set out in the schedule (iif no rate is contained in the schedule the rental and operating costs shall escalate by 8%) Within fifteen (15) business days after receipt pending finalisation of Tenant’s notice exercising its the open market rental. 46.7 The option to extend renew may not be exercised if the term lease has been cancelled or has terminated or while the Lessee is in breach of this Leaseany provision thereof. This option to renew shall be automatically cancelled in the event that the Lessee has twice during the lease period, Landlord shall notify Tenant failed to make payment of Landlord’s estimate the amounts owing in terms of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit within 7 days of due date. 46.8 If the determination of Prevailing Market Rent to Arbitrationlease is renewed the same terms and conditions will apply, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable save for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (rental as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:herein.

Appears in 1 contract

Sources: Lease Agreement

OPTION TO RENEW. (a) Landlord hereby grants Tenant shall have the option right to renew the term of this Lease for one (1) additional period of five (5) years (the “Option "Renewal Term") on the same terms and conditions contained in the Lease, except that (i) Basic Rent for the Renewal Term shall be as set forth hereinbelow, (ii) except as expressly provided in this Section 3.04, Tenant shall not be entitled to any concessions with respect to the Renewal Term including, without limitation, commissions or allowances, and (iii) no additional options to renew shall apply following the expiration of the initial lease term provided that Renewal Term. Written notice (the "Tenant's Election") of Tenant's exercise of its option to renew ("Option to Renew") the Term of this lease is in full force and effect, the Tenant shall Lease for a Renewal Term must be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery given to Landlord of written notice of Tenant’s intention to renew the term at least no less than nine (9) months but not no more than twelve (12) months prior to the expiration date the Term of the then applicable term Lease would otherwise expire. Tenant shall have no right to renew this Lease if Tenant is in default at the time of Tenant's Election or at any time thereafter before the commencement of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Renewal Term. (ib) Definition: As used hereinIn the event Tenant validly exercises its Option to Renew the Term of this Lease as herein provided, the term “Prevailing Market Rent” means the most probable rent (Basic Rent shall be adjusted as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease Renewal Term as follows: (1) Commencing within ten (10) days after Landlord's receipt of Tenant's Election, Landlord and Tenant shall attempt to agree upon Basic Rent for the Premises for the Renewal Term, such rent to equal the estimated fair market rental value of the Premises for the Renewal Term. If the parties are unable to agree upon the rent within thirty (30) days, then within thirty (30) days thereafter each party, at its own cost and by giving notice to the other party, shall appoint a real estate appraiser with at least five (5) years full- time commercial real estate appraisal experience in the area in which the Premises are located to appraise and set rent for the Renewal Term. If a party does not appoint an appraiser within ten (10) days after the other party has given notice of the name of its appraiser, the single appraiser appointed shall be the sole appraiser and shall set rent for the Renewal Term. If each party shall have so appointed an appraiser, the two appraisers shall meet promptly and attempt to set the rent for the Renewal Term. If the two appraisers are unable to agree within thirty (30) days after the second appraiser has been appointed, they shall attempt to select a third appraiser meeting the qualifications herein stated within ten (10) days after the last day the two appraisers are given to set rent. If the two appraisers are unable to agree on the third appraiser within such ten (10) day period, either of the parties to this Lease, by giving five (5) days notice to the other party, may apply to the then presiding judge of the Superior Court of King County for the selection of a third appraiser meeting the qualifications stated in this paragraph. Each of the parties shall bear one-half (1/2) of the cost of appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, however selected, shall be a person who has not previously acted in any capacity for either party (2) Within thirty (30) days after the selection of the third appraiser, a majority of the appraisers shall set rent for the Renewal Term. If a majority of the appraisers are unable to agree upon the rent within the stipulated period of time, the three appraisals shall be added together and their total divided by three (3). The resulting quotient shall be the rent for the Premises during the Renewal Term. If, however, the low appraisal and/or the high appraisal is/are more than five percent (5%) lower and/or higher than the middle appraisal, the low appraisal and/or the high appraisal shall be disregarded. If only one (1) appraisal is disregarded, the remaining two (2) appraisals shall be added together and their total divided by two (2), and the resulting quotient shall be rent for the Premises during the Renewal Term. (3) For purposes of determining the rent for the Renewal Term, including the determination of rent by the appraisers, the "fair market rental value" shall be based on the actual rental rates which ready and willing renewal tenants are paying or would pay, as of the Renewal Term commencement date, as annual rent for a primary renewal premises (as distinguished from the rent payable for a sublet premises or with respect to an assignment of an interest in an existing lease) to a ready and willing landlord of such primary renewal premises for space comparable to the Premises in a building comparable to the Building, taking into consideration any allowances, concessions or other special benefits being offered to such renewal tenants. Rental rates quoted or used under sublease agreements shall be considered rates of special circumstances and shall be excluded from the definition of "fair market rental value" under this Section 3.04. During the Renewal Term, the Base Year for Operating Expenses shall not change. (c) The Option to Renew may not be assigned or transferred by Tenant except in connection with an assignment of this Lease. (d) In the event Tenant timely and properly exercises the Option to Renew, Landlord and Tenant shall within fifteen (15) days after the determination of rent for the Renewal Term, execute an amendment to this Lease extending the Lease Term on the terms and conditions whereby:set forth in this Section 3.05, but this Lease will be extended in accordance with Tenant's exercise of the Option to Renew whether or not the amendment is signed.

Appears in 1 contract

Sources: Lease Agreement (Fine Com Corp)

OPTION TO RENEW. Subject to the terms and conditions hereinafter set forth, Landlord hereby grants Tenant one (a1) Tenant shall have the option to renew extend (“Option to Extend”) the term of this Lease for one (1) additional period of five (5) years (the “Option Term”) following year period, commencing immediately after the expiration of the initial lease term provided that this lease is in full force and effect, (the Tenant shall “Extension Term”). Tenant’s election to exercise the above Option to Extend must be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery given to Landlord of written notice of Tenant’s intention to renew the term at least nine in writing not less than one hundred eighty (9180) months but not days or more than twelve three hundred sixty five (12365) months days prior to the expiration of the then applicable term last lease year of the leaseoriginal Term. The Tenant’s Option Term to Extend the term shall be of upon the same terms, covenants terms and conditions contained herein except as the original lease set forth below and except Base Rent for the Option Term that there shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its no further option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rentbeyond the Extension Term. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentexercises the Option to Extend, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators Base Expenses Year and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Base Tax Year shall be deemed changed from the date on the Lease Summary to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable option period. This Option to Renew shall be deemed personal to Tenant and may not be exercised or assigned, voluntarily or involuntarily, by or to any person or entity other than Tenant, including any permitted assignee or subtenant. Tenant shall continue possession of the Premises in its as is condition and Landlord shall have no obligation to do any work or otherwise to prepare the Premises for the Renewal Term. . If Tenant exercises the Option to Extend, the Base Rent for the Premises during the Extension Term shall be ninety-five percent (i95%) Definition: of the fair market rent for the Premises determined in the manner set forth in Paragraph 2 below; however, in no event will the Base Rent be less than the Base Rent as of the last month of the original lease term. As used herein, Fair Market Rent for the term “Prevailing Market Rent” means Premises shall mean the most probable rent (as determined pursuant Basic Rental and all other monetary payments and escalations, that Landlord could obtain from a third party desiring to lease the Premises, taking into account the size, location and floor level of the Premises, the quality of construction of the Building, the services provided under the terms of this Lease, the rental then being obtained for leases of space comparable to the appraisal procedure hereinafter set forth) at which Premises in the Building, and within the downtown San Francisco Financial District and all other factors that would be relevant to a willing third party desiring to lease the Premises would be leased in and a comparable and open market, under all conditions requisite willing Landlord desiring to a fair lease, let the Landlord and Tenant each acting prudently, knowledgeable, and assuming Premises for the rent is not affected by undue stimulus. Implicit in this definition is the consummation subject period of the lease term in determining the rental such party would be willing to pay or receive therefore provided that no allowance for the construction of such space beginning on Tenant improvements shall be taken into account in determining Fair market Rent. Notwithstanding anything to the commencement date contrary contained herein, all option rights of Tenant pursuant to this Paragraph 2 shall automatically terminate without notice and be of no further force and effect whether or not Tenant has timely exercised the Option to Extend granted herein if an Event of Default exists at the time of exercise of the lease option or at the time of commencement of the Premises under conditions whereby:Extension Term.

Appears in 1 contract

Sources: Office Sublease Agreement (Jaguar Health, Inc.)

OPTION TO RENEW. (a) Provided Tenant is not in default under the Lease, Tenant shall have the right at, its option by notice to renew Landlord not earlier than January 1, 1985, nor later than April 30, 1985, to extend the term of this Lease for one (1) an additional period of five (5) years year period (the “hereinafter called "Option Term”Period") following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be under all of the same terms, covenants terms and conditions contained herein except that the-fixed rent as the original lease except Base Rent for the Option Term is set forth Preamble (7) shall be the then Prevailing Market Rent greater of comparable space within (i) Thirty-Four Thousand Six Hundred Forty Five and 00/100 (34,645.00) DOLLARS or (ii) a sum equal to Thirty-Four Thousand Six Hundred Forty-Five and 00/100 ($34,645.00) DOLLARS and one hundred (100%) percent of the Gaithersburg, Maryland increase from the date hereof until the commencement of the Option Period in the fair market arearental value of the demised premises. (ib) Within fifteen The fair market rental value of the demised premises shall be determined by a Qualified Appraiser or Appraisers (15as hereinafter de- fined) business estimated in terms of money, which the demised premises will bring on the date the Option Period commences if exposed for rental in the open market by a landlord, who is willing but not obliged to lease, allowing a reasonable time to find a tenant, who is willing but not obliged to lease. (c) Tenant shall furnish to Landlord on the date of its exercise of its option to renew, an appraisal by a member of the American Institute of Real Estate Appraisers, or its successor (any such member being herein- after referred to as a "Qualified Appraiser") of the fair market rental value of the demised premises. If Landlord shall disagree with the results of such appraisal, it shall cause an appraisal of the demised premises to be made by another Qualified Appraiser and shall furnish such appraisal to Tenant within twenty (20) days after receipt of Tenant’s notice exercising 's appraisal. If Landlord and Tenant's appraisals are within ten (10%) percent of each other, the fair market rental value shall be the average of the two appraisals. If not and if within ten (10) days after submission by Landlord to Tenant of Landlord's appraisal, Landlord and Tenant are unable to agree on the amount of the fair market rental value, the Qualified Appraisers of Land- lord and Tenant respectively, shall select a third Qualified Appraiser whose appraisal of the fair market rental value of the demised premises shall be conclusive for purposes of this Article. If Landlord and Tenant's Appraisers cannot select a third Qualified Appraiser, such Appraiser shall be selected in accordance with the provisions of Article 33. Landlord shall bear the entire cost of Landlord's Appraisal, and Tenant shall bear the entire cost of Tenant's Appraisal. Landlord and Tenant shall equally share the cost of the services rendered by the third Qualified Appraiser. In all events, the selection of the third Qualified Appraiser and its determination shall be made within thirty-five (35) days of the date upon which Landlord's appraisal is submitted. (d) If the third Qualified Appraiser's determination of the fair market rental value of the demised premises is in excess of 110% of the fair market rental value determined by Tenant's Qualified Appraiser, then in that event Tenant shall have a right within fifteen (15) days of its receipt of the third Qualified Appraiser's determination to terminate its option to renew by notice to Landlord, which notice and Tenant's right to terminate shall be strictly conditioned upon Landlord simultaneously receiving a similar termination notice from Fittin, and Tenant furnishing Landlord with its check made payable to Landlord in the amount of one-half the cost of the services rendered by the third Qualified Appraiser. (e) The option to renew as set forth above is expressly made subject to the following two conditions: (i) simultaneous with Tenant's exercise of this option, Landlord shall have received notice of an option to renew from Fittin, and (ii) any tenant of the building who occupies in excess of 5,882 rentable square feet has not as of June 1, 1985, entered into a lease covering the demised premises or the premises occupied by Fittin. (f) In the event either of the conditions set forth in the sub- division (e) has occurred, then in that event Tenant shall not have the right to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or the Lease and in lieu thereof Tenant shall notify have the right at its election by notice to Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration("New Lease Notice"), in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 notice shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such be given within fifteen (15) day perioddays of its receipt of Landlord's notice advising Tenant that the conditions set forth in sub- division (d) have not been met, to enter into a new lease with Landlord (hereinafter called the "New Lease") covering premises of approximately 2,306 rentable square feet presently occupied by Timeplex, Inc. (herein- after called the "New Premises"). In the event Tenant elects to enter into a New Lease, then the Landlord’s estimate term of Prevailing Market Rent this Lease shall be deemed to be agreed to by Tenantexpire on December 31, 1985, and the term of the New Lease covering the New Premises shall commence January 1, 1986, and expire December 31, 1990. All of the terms, conditions and covenants of the New Lease shall be the Base Rent payable by Tenant to Landlord during same as this Lease except for the first year of the then applicable Option Term. following: (i) Definition: As used herein, the term “Prevailing Market Rent” means demised premises shall be the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:New Premises;

Appears in 1 contract

Sources: Lease (Medicore Inc)

OPTION TO RENEW. (a) So long as Tenant has not assigned its interest under the Lease, even an assignment with Landlord’s consent, and Tenant is not in default at the time of exercise and no default arises between that time and the expiration of the existing Term of the Lease, Tenant, but not any assignee or successor of Tenant, shall have the a single option to renew extend the term duration of this Lease for one (1) additional a period of five (5) years (years. Tenant may elect to renew the “Option Term”) following the expiration Lease for all or a portion of the initial lease term provided Premises (but no partial floor). During the option Term, all of the other provisions of the Lease shall remain in effect except that this lease is the Base Rent during the first year of the Option Term shall be subject to adjustment to a fair market rent as shall be agreed upon between the parties, but in full force no event less than a blended rate of $28.19/SF, and effect, the annual increases thereafter. Tenant shall be in possession and occupying exercise the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised option by delivery to Landlord of giving written notice of Tenant’s intention same to renew the term Landlord at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term existing Term of the leaseLease, but no more than sixteen (16) months prior to the expiration of the existing Term of the Lease (the “Exercise Date”). The Base Rent applicable during the Option Term shall be established by mutual agreement of the parties within thirty (30) days of the Exercise Date or, if the parties cannot so agree, the Base Rent shall be determined as follows. Within ten (10) days after the thirty (30) day period or sooner if the parties mutually agree, Landlord and Tenant shall each appoint an expert who shall be an appraiser or licensed real estate professional with at least five (5) years of commercial real estate experience within the area where the Premises are located. Within forty-five (45) days of the appointment, each expert shall establish the Base Rent for the Premises taking into account the then condition of the Premises and local market conditions and practices applicable to leases which are comparable as to duration, size, location and use. If a party fails to appoint an expert, the determination of the Jive Software sole expert appointed shall apply. Except as set forth below, each party shall pay the fees and expenses of its own expert and shall share equally the fees and expenses of a referee, if one is required. If two experts are appointed, their determinations are reasonably comparable, and the higher determination is less than one hundred ten percent (110%) of the lower one, the Base Rent shall be the average of the determinations. If not reasonably comparable or if they differ by more than one hundred ten percent (110%), the experts shall, within five (5) days of the last expert’s determination, attempt to mutually select a third party as a referee. If they cannot agree on a referee, either party may ask the presiding judge of the trial court in the jurisdiction where the Premises are located to appoint a referee for them. The referee, selected by either means, must have the same terms, covenants and conditions type of qualifications as the original lease experts, except that the referee must not have been employed regularly or as a consultant, during the prior six (6) month period by either Landlord or Tenant. Within thirty (30) days of his or her appointment, the referee must select one of the two (2) experts’ determinations as being more correct and that determination shall establish the Base Rent for the Option Term shall be Term. If Tenant objects to the then Prevailing Market Rent foregoing determination of comparable space Base Rent, Tenant may, by written notice to Landlord within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenantthe referee’s notice exercising its option establishment of the Base Rent, elect to extend allow the term Lease to expire at the end of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rentthe Primary Term rather than be extended for the Option Term. If Tenant disagrees with makes this expiration election, Tenant must reimburse Landlord the full amount of the fees and expenses paid to Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators expert and the establishment Landlord’s share of the Prevailing Market Rent payable for the year of the then applicable Option Term; providedreferee’s fees and expenses, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termany. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Office Lease Agreement (Jive Software, Inc.)

OPTION TO RENEW. (a) Provided that Tenant is not then in default under this Lease after the lapse of any applicable cure periods, and provided further that Tenant is then in full occupancy of the Premises, Tenant shall have one (1) option (“Option”) to extend the option to renew the term Term of this Lease for one (1) the Premises for an additional period of five (5) years (the “Option Term”) following the expiration on all of the initial lease term same terms and conditions of this Lease, except as otherwise expressly provided that this lease is in full force and effect, below. Tenant may exercise the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised Option by delivery delivering written notice to Landlord of written notice of Tenant’s its intention to renew so extend the term at least nine (9) months but not more Tenn of this Lease no earlier than twelve (12) months prior to the expiration end of the then applicable term and no later than six (6) months prior to the end of the leaseapplicable term. Base Rent payable during the Option Tenn shall be equal to the then-prevailing market rate (“Market Rate”) for comparable space in San Diego County, taking into account the length of the term, tenant improvements, operating expense calculations, , and other concessions being granted to tenants in such market. Concurrently with Tenant’s notice of its exercise of an Option, Tenant shall provide Landlord with Tenant’s good faith calculation of the Market Rate, which shall be deemed Tenant’s offer of the Market Rate. On or prior to the date which is thirty (30) days after delivery of Tenant’s offer of the Market Rate, Landlord shall either (a) accept Tenant’s offer or (ii) reject Tenant’s offer and provide Tenant with Landlord’s own good faith calculation of the Market Rate. If Landlord and Tenant are unable to reach agreement within thirty (30) days following delivery of Landlord’s counter offer of the Market Rate to Tenant, Landlord and Tenant shall each select an independent arbitrator who shall by profession be a commercial real estate broker/agent who shall have been active over the past five (5) year period in the leasing of industrial properties in San Diego County. The Option Term two (2) brokers or agents shall select a third, similarly qualified broker or agent (“Arbitrator”) to determine the Market Rate pursuant to the definition provided above in this Paragraph 3. B. The determination by the Arbitrator shall be limited to the sole issue of whether Landlord’s or Tenant’s offered Market Rate for the Premises (as provided above) is closest to the actual Market Rate for the Premises as determined by the Arbitrator, taking into account the definition of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term Market Rate provided above. Such determination shall be made by the then Prevailing Market Rent of comparable space Arbitrator within the Gaithersburg, Maryland market area. five (i) Within fifteen (155) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Renthis or her appointment. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment The decision of the Prevailing Market Rent payable for the year Arbitrator shall be binding on Landlord and Tenant. The costs of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Arbitrator shall be deemed to be agreed to shared equally by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Tenant.

Appears in 1 contract

Sources: Industrial Lease (Guardion Health Sciences, Inc.)

OPTION TO RENEW. (a) In the event that Tenant is not in breach or default of any of the terms and conditions of this Lease, Tenant shall have the option option, for its sole and exclusive use, to renew extend the original term of this Lease tease for one two (12) additional period of five (5) years year period(s) (hereinafter "Extended Term") upon the “Option Term”) following same terms and conditions as herein contained, except that the expiration guaranteed minimum monthly rental payable under Paragraph IV during the first year of the initial lease term provided that this lease is in full force and effect, the Tenant Extended Term shall be in possession and occupying the Premises, and then prevailing "Fair Market" rent for similar premises determined as provided hereinbelow. Should Tenant elect to exercise said option it shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery give written notice thereof to Landlord of written notice of Tenant’s intention to renew the term at least nine not Less than six (9) months but not more than twelve (126) months prior to the expiration of the then applicable original term of or Extended Term hereof. Thereafter, the lease. The Option Term parties hereto shall be of negotiate in good faith to determine the same terms, covenants and conditions as the original lease except Base Rent guaranteed minimum monthly rental for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the Extended Term based upon said prevailing rentals, and when so fixed such rental shall be payable in advance on the first day of each and every calendar month of the Extended Term. Should the parties fail to agree upon the monthly rental for the first year of the Extended Term at Least four months prior to the commencement of the Extended Term, Tenant shall, at Least one hundred twenty (120) days prior to commencement of the Extended Term, appoint one arbitrator and notify Landlord in writing of said appointment and of the name and address of said arbitrator so appointed by it, and Landlord shall also within said time period appoint one arbitrator and notify Tenant in writing of said appointment and of the name and address of said arbitrator so appointed by Landlord. If the two (2) said arbitrators are unable to agree upon the guaranteed minimum monthly rental for the demised premises for the first year of the Extended Term within ten (10) days next following said last mentioned period, then applicable Option Term. they shall appoint a third arbitrator within ten (i10) Definition: As used hereindays and the decision of any two (2) of said three (3) arbitrators shall be final and binding upon the parties hereto. Should the Tenant fail to appoint its arbitrator or should the original two arbitrators be unable to agree upon such guaranteed minimum monthly rental and also fail to agree on the appointment of a third arbitrator within the time provided, or should they appoint such third arbitrator and any two of the said three arbitrators for any reason be unable, during the sixty (60) days next following the appointment of said third arbitrator, to fix such guaranteed minimum monthly rental, then and in any of said cases, the term “Prevailing Market Rent” means option to extend shall terminate. The parties shall each bear the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation cost of the lease of such space beginning on the commencement date arbitrators selected by them and one-half of the lease cost of the Premises third arbitrator. In no event shall the guaranteed minimum monthly rental for the first year of the Extended Term be Less than the monthly rental paid under conditions whereby:Paragraph 4A and 48 during the preceding Lease year. ADDENDUM TO LEASE

Appears in 1 contract

Sources: Standard Office Lease (Orange National Bancorp)

OPTION TO RENEW. (a) Tenant shall have the option to renew extend the term Term of this Lease for one until December 31, 2001 (1) additional period of five (5) years (the “"Option Term") following upon the expiration of the initial lease term provided that Term of this lease is in full force and effectLease, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance by giving notice of any exercise of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery option ("Option Notice") in writing to Landlord of written notice of Tenant’s intention to renew the term at least nine six (96) months but not more than twelve (12) months prior to before the expiration of the then applicable initial Lease Term. Notwithstanding the foregoing, if Tenant is in default under any term or provision of this Lease as of the lease. The date of the giving of the Option Notice, the Option Notice shall be null, void, and of no effect, or if Tenant is in default on the date the Option Term is to commence, the Option Term shall be not commence, and this Lease shall expire at the end of the same terms, covenants and conditions as the original lease except initial Lease Term. The monthly Base Rent for the Premises during the Option Term shall be set at the then Prevailing Market prevailing Monthly Base Rent of for comparable space within quality office buildings in the GaithersburgSanta ▇▇▇ area. Included in this calculation shall be Monthly Base Rent, Maryland any escalations thereto that are common in the market area. at the time and other terms and conditions then common in the market. The parties shall have thirty (i30) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option Landlord receives the Option Notice in which to extend agree on the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market RentMonthly Base Rent and other Terms and Conditions during the Option Term. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market parties agree on the Monthly Base Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable other terms and conditions for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during extended term within such fifteen thirty (1530) day period, they shall promptly execute an amendment to this Lease stating such terms and conditions. If the parties are not able to agree within such period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudentlyshall seek two (2) independent appraisers who shall determine these issues. In the event the two (2) appraisers cannot agree with one another, knowledgeablethen the two (2) appraisers are to select a third appraiser, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation average of the lease of such space beginning on three (3) appraisals will be used by the commencement date appraisers to determine the fair market value for comparable buildings in the Santa ▇▇▇ area. The three (3) appraisers will have sixty (60) days to finalize these issues. The cost of the lease of the Premises under conditions whereby:appraisers shall be split equally between Landlord and Tenant.

Appears in 1 contract

Sources: Office Building Lease (Scoop Inc/Ca)

OPTION TO RENEW. (a) Subject to the terms and conditions set forth below, Tenant shall have the option to renew extend the term Lease Term as to all, but not less than all, of this Lease the then-existing Premises, for one (1) additional extension period of five (5) years (years. In order to exercise the “Option Term”) following the expiration option to extend. Tenant must satisfy all of the initial lease term provided that this lease is in full force and effect, the following requirements: (i) Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to have provided Landlord of with written notice of Tenant’s intention to renew exercise the term at least nine (9) months but not more option to extend, which notice must be received by Landlord no earlier than twelve (12) months and not later than nine (9) months before the expiration of the initial Lease Term, (ii) as of the date that Tenant notifies Landlord of Tenant’s intention to exercise the option and as of the expiration of the initial Lease Term, there shall be no Event of Default by Tenant under this Lease; and (iii) at no time prior to the expiration of the then applicable term initial Lease Term, shall there have been any assignment or subletting of all or any portion of the leasePremises except for assignments or sublettings described in Section 4.18.7. (b) In the event the initial Lease Term is extended as provided in this paragraph, Tenant shall, upon request of Landlord, evidence any such extension through the execution of a lease amendment to be provided by Landlord. The Option Term extension shall be of on the same terms, covenants and conditions as set forth in this Lease; provided that, the original lease except monthly Base Rent during the extension period shall be the greater of (i) the fair market rental (the “Fair Market Rental Rate”) then in effect for similar class A office properties, of equivalent size, at the commencement of the extension period, as mutually determined by Landlord and Tenant, or (ii) the Base Rent for the Option Term shall be last year of the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areapreceding term. (ic) Within If the parties cannot agree on the Fair Market Rental Rate within fifteen (15) business calendar days after of receipt by Landlord of the notice of intent to exercise the option to extend, Landlord shall, no more than fifteen (15) calendar days thereafter, select an independent M.A.I. real estate appraiser (certified in the State of Colorado) with at least ten (1 0) years experience in the Denver, Colorado commercial real estate market, who shall prepare a written appraisal of the Fair Market Rental Rate using the assumptions described in this paragraph. The appraisal report shall be completed and delivered to Tenant and Landlord within fifteen (151 calendar days from the date Landlord ;elects the appraiser. Such appraiser’s determination of Fair Market Rental Rate shall be determinative unless Tenant disputes it as provided in the next sentence. If Tenant disputes such appraisal, Tenant shall within ten (10) calendar days following delivery of the appraisal report, deliver to Landlord written notice (a) that Tenant disputes such appraisal report, and (b) of the identity of the appraiser selected by Tenant meeting the qualifications set forth in this paragraph. The appraiser selected by Tenant shall submit his appraisal report of the Fair Market Rental Rate using the assumptions described in this paragraph within fifteen (15) calendar days following the delivery of Tenant’s notice exercising its option to extend Landlord disputing the term initial appraisal. If the two appraisals are within five percent (5%) of this Leaseeach other (based on the higher number), Landlord the Fair Market Rental Rate shall notify Tenant be that set forth in the appraisal report of Landlord’s estimate of Prevailing Market Rentappraiser. If Tenant disagrees with Landlord’s estimate not, then within ten (101 calendar days after the delivery of Prevailing Market Rentthe second appraisal, Tenant may rescind such renewal notice thereby terminating its right the two appraisers shall appoint a third appraiser meeting the qualifications set forth in this paragraph, and the third appraiser shall deliver his decision within ten (10) calendar days following his selection and acceptance of renewal provided by this lease, or Tenant the appraisal assignment. The third appraiser shall notify Landlord that it has elected be limited in authority to submit the determination of Prevailing Market Rent to Arbitrationselecting, in this opinion, which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing two earlier appraisal determinations best reflects the Fair Market Rent payable for Rental Rate under the year assumptions set forth in this paragraph. The third appraiser must choose one of the then applicable Option Term; providedtwo earlier appraisals, howeverand, that if Tenant does not elect to either rescind its renewal notice or to submit upon doing so, the third appraiser’s determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year controlling determination of the then applicable Option Term. (i) Definition: As used hereinFair Market Rental Rate. Each party shall pay the costs and fees of the appraiser it selected; if a third appraiser is selected, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the party whose appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected selected to be the Fair Market Rental Rate by undue stimulus. Implicit in this definition is the consummation said third appraiser shall pay all of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:said appraiser’s costs and fees.

Appears in 1 contract

Sources: Consent to Sublease (Integrated Financial Systems Inc)

OPTION TO RENEW. Tenant has two (a2) Tenant shall have the option options to renew the term of this Lease lease for one (1) additional a period of five (5) years (the “Option Term”) following the expiration of the initial lease term each provided that this lease in exercising each Tenant (i) is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of hereunder beyond any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to applicable cure period and (ii) gives Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but via registered mail return receipt requested and received by Landlord not more later than twelve (12) months prior to initial lease expiration or first extended option period as applicable. All terms and conditions as contained in the Lease shall remain the same except that the renewal rate shall be the "prevailing market rate" for similar space in comparable buildings for similar inducements, and lease term in downtown Boca Raton area. If Tenant should fail to exercise the first option to renew within the time period aforementioned upon the terms and conditions herein stated, both the first and second option to renew shall automatically lapse and expire and Tenant shall have no further right, title or interest in and to the Premises upon expiration of the then applicable term initial Lease term. The tern "prevailing market rate" per rentable square foot shall mean the annual rate of rent determined by Landlord and accepted by Tenant, as the prevailing market base rental rate in the downtown area of Boca Raton, Florida for comparable office space which has been built out for occupancy (taking into consideration the duration of the lease. The Option Term shall be terms for which such space is being leased, location and/or floor level within the applicable building, when the applicable rate first becomes effective, quality and location of the applicable building, rental concessions, build-out allowances and other relevant factors) for a lease term commencing on the Option Period commencement date. Executed leases and bona fide written offers to lease comparable space in the Building received by Landlord from third parties (at arm's length) may be used by Landlord as an indication of the prevailing market rate. In the event of Tenant's rejection of Landlord's quoted prevailing market rate with ten (10) days of receipt of same termsfrom Landlord, covenants Landlord and conditions as Tenant shall thereafter each select a broker with substantial experience in the original lease except Base Rent downtown area of Boca Raton, Florida, office market for the Option Term shall be purpose of making a determination of the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland prevailing market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its rate for each option to extend the term of this Lease, period commencement date; provided that if either Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall fail to notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment other of the Prevailing Market Rent payable for the year identity of its selected broker as aforesaid within twenty (20) days of the then applicable Option Term; providedothers' written demand therefore (which demand shall identify the notifying party's broker and make specific reference to the consequences imposed by this provision for non-selection), however, that if Tenant does not elect the party who shall have failed to either rescind identify its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent broker shall be deemed to be agreed have irrevocably consented to the prevailing market rate determined in good faith by Tenantthe broker selected by the other party. Assuming that both brokers are timely selected, however, the two selected brokers shall then each independently make a determination of prevailing market rate for each subsequent option period commence date and shall be the Base Rent payable by Tenant to Landlord during the first year together select a third broker, experienced as aforesaid. The jointly selected broker shall then select one of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (two determinations as determined pursuant aforesaid for each remaining option period commencement date which is closest to the appraisal procedure hereinafter set forth) at which prevailing market rate for purposes of this provision. This determination, so long as it is made in good faith, shall be final and not subject to appeal. Each party to the Premises would be leased in a comparable Lease shall pay the fees and open market, under all conditions requisite to a fair lease, the Landlord cost of its own broker and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation one-half of the lease of such space beginning on fees and costs payable to the commencement date of jointly-selected broker determined as aforesaid (the lease of foregoing collectively referred to as the Premises under conditions whereby:"Three-Broker Method").

Appears in 1 contract

Sources: Office Lease (Mackenzie Investment Management Inc)

OPTION TO RENEW. (a) Tenant shall have the option to renew the term of Provided this Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effecteffect and provided further that Lessee is not then in default under this Lease, the Tenant shall be in possession and occupying Lessor hereby grants to Lessee the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this LeaseLease for an additional three (3)-year period (the "Option Period") commencing on the day following the end of the initial Lease term on the same terms and conditions set forth in this Lease except as set forth in the following sentence. Subject to adjustment as provided in Section 3.2 below. Subject to adjustment as provided in Section 3.2 below, Landlord the Basic Rent during the extension period shall notify Tenant equal the lesser of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, the prevailing market rate on the day after the date the initial Lease term ends or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Basic Rent to Arbitration, in which event at the provisions of subparagraph (b)(ii)(a) commencement of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; providedLease increased by five (5) percent per annum. In no event, however, that if Tenant does shall the rent during the Option Period be less than the existing rental rate immediately prior to the commencement of such Option Period. Lessee shall give Lessor not elect less than nine (9) months prior written notice of the exercise of the foregoing option, time being of the essence. If not so exercised, Lessee's option under this paragraph shall be null and void. For a period of fifteen (15) days after Lessee gives notice of its election to either rescind exercise its renewal notice or option, Lessee and Lessor shall attempt to submit agree on the determination of Prevailing Market Rent prevailing market rate. If the parties are unable to Arbitration during agree on such rate within such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Lessor and Lessee shall within fifteen (15) days thereafter agree on an independent appraiser, who shall be deemed a member of a nationally recognized appraisal firm, to be agreed determine the prevailing market rate. On the date the appraiser is appointed, each party shall simultaneously submit to by Tenantthe appraiser its proposed prevailing market rate, and the appraiser shall within thirty (30) days of his appointment determine whether Lessor's or Lessee's proposed rate is closer to the actual prevailing market rate. The proposed rate which the appraiser determines is closer to the prevailing market rate shall then be the rental rate during the Option Period. In no event shall the appraiser have the right to compromise between the proposed rates or choose some other rate. The appraiser may examine the Premises and any other information which the appraiser deems applicable to the determination of the prevailing market rate, and the parties may submit any additional information which is applicable to the determination. If the parties hereto cannot agree on the appraiser within fifteen (15) days, either party may thereafter apply to the American Arbitration Association for the appointment of the appraiser. The decision of the appraiser shall be final and binding upon the Base Rent payable parties hereto, except that Lessee may revoke its election to exercise its option by Tenant notice to Landlord during the first year Lessor within thirty (30) days of the then applicable Option Term. (i) Definition: As used herein, decision by the term “Prevailing Market Rent” means appraiser if Lessee disagrees with the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation decision of the lease of such space beginning on the commencement date appraiser, in which case Lessee's option shall be null and void. All costs and expenses of the lease of appraiser shall be paid by the Premises under conditions whereby:losing party in the appraisal.

Appears in 1 contract

Sources: Lease Agreement (Icon Health & Fitness Inc)

OPTION TO RENEW. (a) Tenant shall have is hereby given the option to renew the term of this Lease for two (2) periods of three (3) years, or one (1) additional period of either; three (3) years, five (5) years years, or seven (the “Option Term”7) following the expiration of the initial lease term years, provided that this lease is in full force and effect, the Tenant there shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance no Event of Default under any of the terms, conditions, provisions and/or covenants terms of this Lease either at the time of the Leasegiving of any such notice or at the time of commencement of any renewal. All such rights of a renewal Tenant shall be exercised by delivery give notice in writing to the Landlord of written notice its exercise of Tenant’s intention to renew the term such option at least nine six (9) months but not more than twelve (126) months prior to the expiration termination of the then applicable term of the leaseInitial Term. The Option Term Such renewal shall be of based on the same terms, covenants and conditions as are contained in this Lease except that the original lease except Base Basic Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the renewal period shall be at the then applicable Option Term. current market rate (i) Definition: As used hereinfor comparable buildings in the general vicinity of the Building), as agreed to by the term “Prevailing Market Rent” means parties hereto. In the most probable rent (as determined pursuant event the parties can not agree to the appraisal procedure hereinafter current market rate as set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, forth above then the Landlord and Tenant shall each acting prudentlyselect a licensed commercial real estate broker doing business in Northern Virginia (the "Selected Brokers"), knowledgeablewhereupon the Selected Brokers shall select a third similarly qualified broker, who shall each then provide to the parties their expert opinion as to the then current market rate and the average of the three opinions shall be the current market rate for the purposes of this paragraph. In establishing the Basic Rent for the renewal term, the parties or the brokers who determine the Basic Rent shall consider and take into account Tenant's continuing obligation to pay Additional Charges for Operating Expense Increases over the Operating Expense Base, unless the parties have agreed in writing that Tenant's obligation to pay Additional Charges for Operating Expense Increases over the Operating Expense Base shall be terminated and the Operating Expense Base shall be re-set to be the sum of the actual Operating Expenses during the year in which such renewal term commences. Notwithstanding the foregoing, in no event shall the Basic Rent for the first year of the renewal period be less then the current rate at the end of the Initial Term. In the event the Tenant elects to renew, the Landlord shall provide a one time allowance for the re-painting and re-carpeting of the space with specifications matching the original installations which can be utilized at any one renewal term commencement. Person: A natural person, a partnership, a limited liability company, a corporation, and assuming the rent is not affected by undue stimulusany other form of business or legal association or entity. Implicit in this definition is the consummation Project General Contractor: Signet Construction Company, Inc. of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Fairfax, Virginia.

Appears in 1 contract

Sources: Lease Agreement (Comstock Homebuilding Companies, Inc.)

OPTION TO RENEW. (a) Provided Tenant is not then in default, Tenant shall have the one five (5) year option to renew the Lease at the then prevailing "fair market" rent to be mutually agreed upon between Landlord and Tenant, provided Tenant must give Landlord written notice on or before January 1, 2006. In the event that full agreement is not reached on such values by February 1, 2006, Landlord and Tenant shall each designate an MAI real estate appraise to appraise the property and determine the then current market rental rate. In the event one party does not appoint an appraiser within such period, the appraisal of the then current market rental rate of the appraiser chosen by the other party shall be controlling. In the event both parties timely appoint an appraiser, those two appraisers, together with a third appraiser appointed by the previously appointed appraiser, shall value the then current market rental rate for the Leased Premises. All appraisals shall be completed within 30 days. In the event the appraisers designated under this procedure are unable to agree upon a third appraiser within 30 days of their appointment, the chief judge of the Fourth Judicial District of the State of Minnesota shall appoint such third appraiser and the agreement of any two of such appraisers shall determine the then current fair market rental rate of the Leased Premises for the purpose of the renewal term contained herein and if no two such appraises can so agree, then the average of this Lease the two closest appraiser's determinations of fair market rental rate shall be controlling. The then current market rental rate shall be for one (1) additional period of five (5) years (comparable square footage in comparable rental markets for similar uses in similar communities with similar amenities, for tenants renewing leases and shall not include any allowances for tenant improvements. Notwithstanding anything contained herein to the “Option Term”) following contrary, the expiration then current market rental rate, as determined by t he appraisers, shall not be less that the amount paid in the last year of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights Time is of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention the essence. This option to renew the term at least nine (9) months but not more than twelve (12) months prior is personal to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms2nd Swing, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, Inc. and shall not be the Base Rent payable by Tenant available to Landlord during the first year any of the then applicable Option Termtheir successors or assigns. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (2nd Swing Inc)

OPTION TO RENEW. (a) A. Tenant shall have the option right, at its election made in its sole discretion, to renew extend the term of this Lease for one (1) additional period of five (5) years Term (the “Option Renewal Option”) for the additional periods set forth in Section 1.E (each, a “Renewal Term”) following the expiration ), provided that each of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Leasefollowing occurs: 1. All such rights of a renewal shall be exercised by delivery to Landlord of receives written notice of Tenant’s intention to renew exercise of the term at least nine Renewal Option (9) months but the “Renewal Notice”), not more less than twelve (12) full months prior to the expiration of the then applicable term existing Term; and 2. There is no Event of Default at the lease. time that Tenant delivers the Renewal Notice or at the time Tenant delivers its Binding Notice. B. The Option Renewal Term shall be of upon the same terms, covenants terms and conditions as the original lease in this Lease except Base Rent for the Option first year of each Renewal Term shall be equal to the then Prevailing Market Rent greater of comparable space within the Gaithersburg, Maryland market area. (ix) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year 95% of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit Market Rate for the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by TenantPremises, and shall be (y) the Base Rent payable by Tenant to Landlord during in effect at the first year expiration of the then applicable Option existing Term. . The Base Rent shall increase by two percent (i2%) Definition: As used herein, annually during each Renewal Term. “Market Rate” for the term “Prevailing Market Rent” means Premises shall mean the most probable base rent rate (as determined pursuant to the appraisal procedure hereinafter set forthincluding escalations) at which that the Premises would be expected to be leased in for, for a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning term commencing on the applicable commencement date of and ending on the lease applicable expiration date, in its then-existing condition, in an arms-length transaction between a willing landlord and tenant in the commercial space market existing in the vicinity of the Premises under conditions whereby:at the time such rate is established. Such determination shall include consideration of (i) the size and location of the Premises, and the quality of, condition of, and the nature of the improvements in, the Building, including without limitation, the necessity to remove such improvements, but shall exclude the value of improvements installed by Tenant in such Renewal Premises that are to be removed by Tenant at the expiration of the Term; (ii) other Comparable Buildings to the Building; (iii) other comparable leasing transactions in comparable locations in the vicinity of the Premises for new leases (with appropriate adjustments for different size premises and different length terms), and the rents and concessions, allowances and commissions granted along with the other terms of such transactions; and (iv) the financial condition of Tenant.

Appears in 1 contract

Sources: Lease Agreement (Valley National Bancorp)

OPTION TO RENEW. (a) Tenant Lessee shall have the option to renew extend the term of this Lease for one two (12) additional period periods of five (5) years each. Lessee may exercise its right to extend for the first option term by notifying Lessor of its election to so extend no later than sixty (60) days prior to the “Option Term”) following the expiration termination of the initial lease Lease term provided that period and no earlier than six (6) months prior to said termination and for the second option term by giving notice not later than sixty (60) days prior to the termination of the term under the first option and no earlier than six (6) months prior to said termination. Provided, however, Lessee shall have no extension right if at the time for giving such notice or at the commencement of such extension there exists any uncured default hereunder by Lessee for which Lessee has received ten (10) days prior written notice from Landlord. All terms and conditions of this lease is Lease shall remain in full force and effect, effect during the Tenant option term except that the rent payable hereunder by Lessee to Lessor for the first year of each option term shall be in possession and occupying adjusted to the Premises, and Tenant shall not be in default in the performance or observance of any fair market rental of the terms, conditions, provisions and/or covenants land and building (but excluding all Lessee's Improvements) as of the Leasecommencement of each option term. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term For purposes of this Lease, Landlord unfair market rental shall be determined by agreement between the parties within ten (10) days after Lessee notifies Lessor of its intention to exercise the Option hereunder. If within said ten (10) days the parties are unable to agree upon a "fair market rental," then each shall select an appraiser within five (5) days thereafter with a designation of "M.A.I." or in the event M.A.I., appraisers are no longer available, a comparable designation and within five (5) days after such appointment, the two appraisers shall agree upon a third appraiser. Within thirty (30) days thereafter, the appraisers shall notify Tenant the parties in writing their appraisal of Landlord’s estimate the fair market rental and the average of Prevailing Market Rentthe two appraisals, which are closest in amount shall be deemed the fair market rental. If Tenant disagrees with Landlord’s estimate Each party shall pay the cost of Prevailing Market Rentits own appraiser and the parties shall share the cost of the third appraiser. In the event the appraisals are not returned to the parties prior to the commencement of the option term, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant Lessee shall notify Landlord that it has elected continue to submit pay rent at the then current rate until the determination of Prevailing Market Rent the fair rental value whereupon the rent shall be adjusted retroactively to Arbitration, in which event the provisions fair market rental and any additional amounts shall be paid to the Lessor by Lessee with the next regular monthly payment following such determination. For a period of subparagraph one hundred twenty (b)(ii)(a120) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit days after the determination of Prevailing Market Rent the fair market rental by the parties, as set forth above Lessee shall have the right to Arbitration during terminate the Lease by delivering written notice to Lessor of its election to so terminate. In the event, such fifteen notice is delivered to Lessor within said one-hundred twenty (15120) day period, then ; the Landlord’s estimate of Prevailing Market Rent Lease shall terminate sixty (60) days thereafter. Lessee shall be deemed responsible for the payment of rent to Lessor in the amount determined to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during fair market rental until the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease date of such space beginning on the commencement date of the lease of the Premises under conditions whereby:termination.

Appears in 1 contract

Sources: Lease Agreement (Power Ten)

OPTION TO RENEW. (a) If Tenant is not then in default of the terms, covenants and conditions herein contained, Tenant shall have the option to renew the term of this Lease for one two (12) additional period terms of five three (53) years (each. In the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effectevent Tenant desires to exercise said option, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of give written notice of Tenant’s intention such fact to renew the term at least nine Landlord not less than six (9) months but not more than twelve (126) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the current term of this Lease. In the event of such exercise, this Lease shall be deemed to be extended for the additional period on the same terms and conditions; provided however, Landlord shall have the option of increasing basic monthly rental to the then existing market rate for similar space in the Boulder vicinity. Basic monthly rental shall increase three and a half percent (3.5%) each year commencing the second year of the additional term. Landlord shall notify Tenant of its determination of market rent no less than five (5) months prior to commencement of the option term. In the event Tenant objects to Landlord’s estimate determination, Tenant must notify Landlord in writing on or before the date that is four (4) months prior to the commencement of Prevailing Market Rentthe option term. Within the next thirty (30) days Landlord and Tenant shall each select a Colorado qualified real estate appraiser with no fewer than five (5) years’ of experience appraising property similar to the Premises in Boulder County, Colorado, to determine the fair market rental value of the Premises. In order to be included in this value determination process, such appraisers’ determinations must be delivered in writing to both Landlord and Tenant within thirty (30) days after their appointment. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind the valuations determined by such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph appraisers are within ten percent (b)(ii)(a10%) of this Article 57 shall govern one another, the selection of arbitrators and the establishment fair market rental value of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and Premises shall be the Base Rent payable average of their figures. If the valuations determined by Tenant to Landlord during the first year such appraisers are outside ten percent (10%) of the then applicable Option Term. (i) Definition: As used hereinone another, the term “Prevailing Market Rent” means two previously chosen appraisers shall jointly appoint a third appraiser with similar qualifications who shall independently determine the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease market rental value of the Premises under conditions whereby:within thirty (30) days after the appointment. The three fair market rental values shall be averaged and the resulting amount shall be the amount for that option term. The cost of all appraisals shall be paid equally by Landlord and Tenant.

Appears in 1 contract

Sources: Lease (Signal Genetics, Inc.)

OPTION TO RENEW. (a) Landlord hereby grants to Tenant shall have the option to renew the term of this Lease for one two (12) additional period terms of five (5) years (each, upon the “Option Term”) following the expiration of the initial lease term same terms and conditions as herein contained, except as modified by this section provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in under this Lease at the performance time the option is exercised or observance of any upon commencement of the terms, conditions, provisions and/or covenants of extended term. The new base year is reset to the Leasefirst option year. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention The option to renew shall not include broker’s commission for the term option period, free rent/pre-occupancy, additional option period, and/or new tenant improvements. In the event Tenant desires to exercise its option to extend, Tenant shall so notify Landlord in writing at least nine six (9) months but not more than twelve (126) months prior to the expiration of the then applicable term term. Landlord shall then, within fifteen (15) days after the receipt of said notice, notify Tenant in writing of the leasenew base monthly rent to apply during the extension period. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Landlord’s notice, Tenant shall give written notice to the Landlord either excepting the proposed new base monthly rent or stating its exception to such proposal and appointing a real estate broker who is experienced in leasing similar type business properties. Within ten (10) days after receipt of such notice, Landlord shall designate a similarly qualified real estate broker and give written notice thereof to Tenant’s . The two brokers so appointed shall select and appoint in writing a third party similarly qualified real estate broker and then give written notice exercising its thereof to Landlord and Tenant. The broker so appointed shall promptly fix a time for the completion of the appraisal, which shall be no later than thirty (30) days from the date of appointment of the last broker. Broker shall notify Landlord and Tenant as to the date fixed for the completion of that appraisal. On that date, the brokers and Landlord and tenant shall meet and brokers shall each submit their appraisal of fair rental value of the Premises for use then being made of the Premises in writing in the usual form to Landlord and Tenant, and the fair rental value shall be determined by taking the numerical average (mean) of the two (2) appraisal figures which are the closest together, provided however, that such appraisals shall reasonably reflect the fair rental value of the Premises. Each of the parties hereto shall pay for the services of his appointee broker and one-half (1/2) of the cost of the services of the third broker. Fair market rental value for the purpose of this Lease shall mean the then prevailing rent for premises comparable in size to the premises located in buildings comparable in size, age, quality to, in the general vicinity of the Building and leased on terms comparable to the terms contained in this lease. In no event shall the Base Monthly Rent for the option to extend period be less that the Base Monthly Rent for the previous term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Emulex Corp /De/)

OPTION TO RENEW. (a) Landlord hereby grants to Tenant shall have the an option to renew --------------- the term of this Lease for one (1) an additional period of five (5) years (the “Option Term”) following to run consecutively from the expiration of the initial lease term provided that then Term of this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall Such option to be exercised, must be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more later than twelve (12) months 270 days prior to the expiration of the then applicable term Term, by notice to Landlord. During the thirty (30) day period following Tenant's exercise of the leaseoption to review, Landlord and Tenant shall use good faith efforts to determine the market rent for the Premises for the five (5) years following the end of the then current Term. If the parties have not entered into a written agreement on or before the expiration of such thirty (30) day period setting forth the market rent as aforesaid described, then on or prior to 210 days before expiration of the then applicable Term, each of Landlord and Tenant shall, at their respective cost and expense, select an M.A.I. appraiser, and, the two (2) appraisers so selected shall jointly choose a third M.A.I. appraiser, within ten (10) days of the selection of the last of the 2 appraisers selected by Landlord and Tenant. The Option Term cost of the third M.A.I. appraisal shall be borne equally by Landlord and Tenant. All M.A.I. appraisers must have ten (10) years experience in appraising office buildings of typical quality in the greater Chicago Metropolitan area. Each of the same terms3 appraisers shall determine their estimate as to what the market rent would be for the Premises for the five (5) years following the end of the then current Term, covenants not later than 150 days before expiration of the then applicable Term, and conditions deliver a written determination to each of Landlord and Tenant within such time period. Either the determination of the market rent mutually agreed to by Landlord and Tenant or the average of the three (3) determinations shall be the "Fair Market Rent," as the original lease except applicable. The Annual Base Rent for the Option Term first Lease Year of the renewal term shall be the then Prevailing Market Rent greater of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen the Fair Market Rent and (15ii) business days after receipt the Annual Base Rent in effect during the tenth Lease Year plus two percent (2%) of Tenant’s notice exercising its option the Annual Base Rent during the tenth Lease Year. Annual Base Rent shall increase on the first (1/st/) day of each subsequent Lease Year of the renewal term by an amount equal to extend two percent (2%) of the term Annual Base Rent in effect during the immediately preceding Lease Year. The Monthly Base Rent Amount shall be equal to one-twelfth of such Annual Base Rent. Except for such change in the Annual Base Rent, Monthly Base Rent Amount, and the extended Term, the terms and provisions of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Lease shall be deemed to be agreed to by Tenant, unmodified and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased continue in a comparable full force and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimuluseffect. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:No

Appears in 1 contract

Sources: Lease (Divine Interventures Inc)

OPTION TO RENEW. (a) If Tenant is not then in default of the terms, covenants and conditions herein contained, Tenant shall have the option to renew the term of this Lease for one two (12) additional period terms of five three (53) years (each. In the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effectevent Tenant desires to exercise said option, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of give written notice of Tenant’s intention such fact to renew the term at least nine Landlord not less than six (9) months but not more than twelve (126) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the current term of this Lease. In the event of such exercise, this Lease shall be deemed to be extended for the additional period on the same terms and conditions; provided however, Landlord shall adjust basic monthly rental to the then existing market rate for similar space in the Boulder vicinity. Basic monthly rental shall increase by the market rate increases commencing the second year of the additional term. Landlord shall notify Tenant of its determination of market rent no less than five (5) months prior to commencement of the option term. In the event Tenant objects to Landlord’s estimate determination, Tenant must notify Landlord in writing on or before the date that is four (4) months prior to the commencement of Prevailing Market Rentthe option term. Within the next thirty (30) days Landlord and Tenant shall each select a Colorado qualified real estate appraiser with no fewer than five (5) years’ of experience appraising property similar to the Premises in Boulder County, Colorado, to determine the fair market rental value of the Premises. In order to be included in this value determination process, such appraisers’ determinations must be delivered in writing to both Landlord and Tenant within thirty (30) days after their appointment. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind the valuations determined by such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph appraisers are within ten percent (b)(ii)(a10%) of this Article 57 shall govern one another, the selection of arbitrators and the establishment fair market rental value of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and Premises shall be the Base Rent payable average of their figures. If the valuations determined by Tenant to Landlord during the first year such appraisers are outside ten percent (10%) of the then applicable Option Term. (i) Definition: As used hereinone another, the term “Prevailing Market Rent” means two previously chosen appraisers shall jointly appoint a third appraiser with similar qualifications who shall independently determine the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease market rental value of the Premises under conditions whereby:within thirty (30) days after the appointment. The three fair market rental values shall be averaged and the resulting amount shall he the amount for that option term. The cost of all appraisals shall be paid equally by Landlord and Tenant.

Appears in 1 contract

Sources: Lease Addendum (Signal Genetics, Inc.)

OPTION TO RENEW. (a) Provided Tenant is not then in default beyond all notice and cure period hereunder, Tenant shall have the option to renew the term of this Lease for one (1) option to renew this Lease for an additional period of five (5) years (the “Option Renewal Term”). Base rental for such additional period shall be at 95% of the fair market value rental at the time of the renewal. Tenant’s option shall expire if Tenant fails to notify Landlord of its decision to renew no later than nine (9) following months in advance of the expiration of the initial lease term provided that Term of this lease is in full force and effect, the Tenant Lease. Such extension shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of on the same terms, covenants and conditions as provided for in the original lease Term except Base Rent for this section, and except that the base rental and escalations during any option term shall be determined as follows: If Tenant exercises the option to review, Landlord and Tenant shall have a one (1) month period during which to negotiate the new base rental and escalations. If both parties cannot agree on a new base rental and escalations then the new base rent and escalations shall be at 95% of the fair market rental then in effect on substantially equivalent properties, of substantially equivalent size, in equivalent areas (but not less than the rental rate specified in this Lease). In the event that Landlord and Tenant cannot agree on a new fair market base rental and escalations for the Option Renewal Term within eight (8) months prior to the first day of the Renewal Term then the same shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, determined as follows. Landlord shall notify Tenant of Landlord’s estimate determination of Prevailing Market Rent. If Tenant disagrees with the fair market base rental, which shall constitute the maximum that Landlord can claim is the fair market base rental of the Premises for the Renewal Term in any arbitration thereof (“Landlord’s estimate of Prevailing Market RentMaximum Determination”). Within 30 days after Landlord shall have given Tenant Landlord’s Maximum Determination, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the whether Tenant disputes Landlord’s Maximum Determination and, if Tenant disputes Landlord’s Maximum Determination, Tenant shall set forth in such notice Tenant’s good faith determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease market base rental of the Premises under conditions whereby:for the Renewal Term, which shall constitute the minimum that Tenant can claim is the fair market base rental for the Premises for the Renewal Term in any arbitration thereof (“Tenant’s Minimum Determination”).

Appears in 1 contract

Sources: Lease Agreement (Butler International Inc /Md/)

OPTION TO RENEW. (a) Tenant The Lessee shall have the option to renew the term of this Lease for a further one (1) additional period term of five (5) years (at the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised then prevailing market rate by delivery to Landlord of providing written notice of Tenant’s its intention to renew to the term at least nine Lessor no later than six (9) months but not more than twelve (126) months prior to the expiration of the Initial Term. In the event that the Lessor and the Lessee do not agree on the then applicable term prevailing market rate, such rate may be determined by a single arbitrator appointed by the agreement between the Lessor and the lessee or pursuant to the Arbitration Act. PROVIDED THAT if there is any Lessor’s Work or Lessee’s Work to be performed prior to the Lessee opening for business in the Leased Premises or the Leased Premises are occupied by a third party as of the lease. The Option Term shall be date of this Lease, the same terms, covenants and conditions as the original lease except Base Rent for the Option Term Commencement Date shall be the then Prevailing Market Rent earlier of: a) sixty (60) days after the Lessor has delivered vacant possession of comparable space within the GaithersburgLeased Premises to the Lessee notwithstanding that the Lessor may still, Maryland market area.during such sixty (60) day period, be completing its work; or b) the opening by the Lessee to the public of its business in the Leased Premises. Notwithstanding any change in the Commencement Date calculated in accordance with the preceding provisions hereof, the Terms shall expire on the date set for such expiry in the first paragraph of this Section 2.03, subject always to earlier termination as provided for in this Lease. PROVIDED THAT upon the Lessor or its Architect giving notice to the Lessee that the Leased Premises are available for the commencement of the Lessee’s Work, the Lessee shall immediately take possession of the Leased Premises and shall occupy same for the purpose of fixturing and installing its inventory, at its own risk, for a period of zero (i0) Within fifteen (15) business days after receipt of Tenantsuch notice or until the Lessee opens for business to the public in the Leased Premises, free of the payment of Gross Rent, and Additional Rent save for the obligation of the Lessee to pay for all utility charges used by the Lessee or consumed in the Leased Premises during the period of such fixturing, and shall during the period from the giving of such notice until the Commencement Date be a tenant in the Leased Premises subject to the same covenants and agreements as are contained in this Lease, mutatis mutandis. FURTHER PROVIDED THAT NOTWITHSTANDING ANYTHING TO THE CONTRARY, if the Lessor is unable to deliver vacant possession of the Leased Premises to the Lessee for any reason, including but not limited to the holding over or retention of possession of any other lessee or occupant, or the lack of completion of any repairs, improvements or alterations required to be completed before the Lessee’s notice exercising its option occupancy of the Leased Premises, then the time for commencement of the Term shall be extended to extend correspond with the term period of delay and the Lessee shall not be entitled to any abatement or diminution of Rent (except that Rent shall not commence to be payable until possession of the Leased Premises is given by the Lessor to the Lessee) nor shall the validity of this Lease or the parties’ respective obligations hereunder be affected. However, if the Lessor does not give vacant possession of the Leased Premises to the Lessee within six (6) months of the date of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the LandlordLessor may, at is option, terminate this Lease by written notice to the Lessee and in such event this Lease shall be null and void and of no effect whatsoever. Any deposit paid by the Lessee to the Lessor shall be returned without interest or deduction, and neither party shall have any further liability to the other. Forthwith, upon the Commencement Date being determined in accordance with the foregoing, the Lessee shall execute an acknowledgement of same on Lessor’s estimate usual form. The Lessee shall pay all Gross Rent and Additional Rent calculated on a per diem basis, from when the Commencement Date occurs and thereafter all payments of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during made on the first year day of each month throughout the then applicable Option TermTerm unless otherwise specified herein. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement

OPTION TO RENEW. (a) Provided that no ongoing Event of Default exists at the time that Tenant exercises the Extension Option (as hereinafter defined), Tenant shall have the right and option (the “Extension Option”) to renew extend the term Term of this Lease for up to one (1) additional period of five 60 months (5“Extension Period”), exercisable by giving Landlord prior written notice, (i) years no earlier than 15 months and (the “Option Term”ii) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more no later than twelve (12) 9 months prior to the expiration Lease Expiration Date, of ▇▇▇▇▇▇’s election to extend the Term; it being agreed that time is of the then applicable term essence and that this option is personal to Tenant and is non-transferable to any assignee or sublessee (regardless of the lease. The Option Term whether any such assignment or sublease was made with or without Landlord’s consent) or other party. (b) Such Extension Period shall be of under the same terms, covenants terms and conditions as provided in the original lease Lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area.as follows: (i) Within fifteen (15) business days the Extension Period shall begin on the day after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit initial Lease Expiration Date and thereafter the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Lease Expiration Date shall be deemed to be agreed to by Tenant, and the last day of the Extension Period; (ii) there shall be no further options to extend other than as set forth in paragraph (a) above; and (iii) the Base Rent payable by Tenant to Landlord during for the first year of the then applicable Extension Period shall be equal to the fair market rental value of the Premises (collectively, the “FMR”) as of the date on which the Extension Option Termshall commence. (iiv) Definition: As used hereinthe Base Rent for each year after the first year of the Extension Period shall be equal to the Base Rent payable during the preceding year, increased by the term “Prevailing Market Rent” means the most probable rent fair market value annual escalations of Base Rent (as determined pursuant by Landlord). (v) For avoidance of doubt, Landlord may update and charge Estimated Expenses as provided for in the Lease. (c) In determining the FMR, Landlord shall take into account and make appropriate adjustments to reflect current market terms, conditions and concessions for similar renewal transactions in similar industrial buildings that are then generally available in the market where the Premises are located, including any other renewal transactions (and taking into account whether such terms, conditions and concessions are being made available by Landlord) as of the date Tenant exercises its Extension Option. Within 15 days after ▇▇▇▇▇▇▇▇ receives notice of ▇▇▇▇▇▇’s exercise of the Extension Option, Landlord will give notice to Tenant (the “FMR Notice”) of Landlord’s opinion of the FMR and comparing the FMR to the appraisal procedure hereinafter set forth) at Base Rent payable in the immediately preceding Lease Year. If Tenant does not respond to the FMR Notice within 15 days after delivery, ▇▇▇▇▇▇▇▇’s opinion of the FMR shall be deemed accepted as the Base Rent due for the first year of the Extension Period. If, during such 15-day period, Tenant gives Landlord notice that Tenant contests Landlord’s determination of the FMR (an “Objection Notice”), which notice must contain therein Tenant’s opinion of the Premises would be leased in a comparable and open market, under all conditions requisite to a fair leaseFMR, the Landlord and Tenant each acting prudentlyparties will attempt to arrive at a mutually agreeable FMR. If, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation within 15 days after ▇▇▇▇▇▇▇▇’s receipt of the lease of such space beginning Objection Notice the parties have not agreed on the commencement date FMR, then Tenant’s option to extend the Term of the lease Lease shall be deemed not to have been exercised, and, thereafter, shall be void. (d) If Tenant is entitled to and validly exercises the Extension Option, Landlord shall prepare an amendment (the “Extension Amendment”) to reflect changes in the Base Rent, Term, Lease Expiration Date and other appropriate terms. The Extension Amendment shall be executed by ▇▇▇▇▇▇ and returned to Landlord within 30 days after the Extension Amendment is delivered to Tenant by Landlord. Notwithstanding the foregoing, an otherwise valid exercise of the Premises under conditions whereby:Extension Option shall be fully effective whether or not the Extension Amendment is executed.

Appears in 1 contract

Sources: Lease (Unusual Machines, Inc.)

OPTION TO RENEW. (a) Tenant 5.1 Lessee, faithfully performing its obligations and undertakings hereunder and not being in default, shall have the option to renew the term of this Lease for one (1) additional period of three (3) years commencing at the expiration of the Term, on the same terms and conditions as those provided in this Lease, except rental which shall be the then fair market rental rate for similar buildings in the area. 5.2 In order to exercise the said option to renew, the Lessee shall give written notice to the Lessor at least six (6) months prior to the expiry of the Term, of its intention to renew this Lease for a further period of three (3) years. The date of the giving of such notice shall be hereinafter referred to as the "EXERCISE DATE". 5.3 Following the Exercise Date, Lessor and Lessee shall in good faith attempt to agree on the fair market rental. If Lessee and Lessor are unable to agree upon such fair market rental, then within fifteen (15) days of the Exercise Date, Lessee and Lessor shall jointly appoint a real estate appraisal firm based in Montreal with at lease five (5) years experience in appraising commercial real estate (the “Option Term”"APPRAISER") following to determine such fair market rental. Lessee and Lessor agree that the expiration Appraiser in making its appraisal of the initial lease term provided that this lease is in full force and effectfair market rental shall take into account the terms of the Lease, including the triple net nature thereof, the Tenant shall be in possession and occupying condition of the Premises, the rent payable for premises similar to the Premises having regard to the nature, location and Tenant shall not be in default in the performance or observance of any usage of the termsPremises and all other appropriate factors such as tenant improvements, conditions, provisions and/or covenants brokerage fees and other inducements offered for comparable buildings. The fair market rental shall be determined by such Appraiser within ninety (90) days of the LeaseExercise Date. 5.4 If Lessor and Lessee cannot jointly agree on an Appraiser, then within twenty (20) days of the Exercise Date, each shall appoint an Appraiser. All such rights of a renewal Both appraisals shall be exercised by delivery completed and delivered simultaneously to Landlord of written notice of Tenant’s intention to renew Lessor and Lessee on the term at least nine fiftieth (950th) months but not more day following the Exercise Date. If the higher appraisal is less than twelve (12) months prior to 5% greater than the expiration of lower appraisal, then the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term fair market rental shall be the average of both appraisals. If the higher appraisal is more than 5% greater than the lower appraisal, then Prevailing Market Rent within sixty-five (65) days following the Exercise Date, the Appraisers shall jointly select another Appraiser to make an additional appraisal of comparable space the fair market rental, which shall be completed and delivered to Lessor and Lessee within ninety (90) days following the GaithersburgExercise Date. In this last case, Maryland fair market arearental shall be the average of the two closest appraisals. 5.5 Each party shall bear the cost of the Appraiser selected solely by such party. All costs of any Appraisers jointly selected by Lessor and Lessee shall be borne equally by Lessor and Lessee. The fair market rental determined by (i) Within fifteen the sole jointly elected Appraiser in accordance with Section 5.3 or (15ii) business days after receipt of Tenant’s notice exercising its option by averaging certain appraisals pursuant to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Section 5.4 shall be deemed to be agreed to by Tenant, final and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant binding on Lessor and Lessee with respect to the appraisal procedure hereinafter set forth) at which the Premises would be leased three year renewal term in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:question.

Appears in 1 contract

Sources: Lease Agreement (Hasbro Inc)

OPTION TO RENEW. a. Provided that Tenant is not in default beyond any applicable cure period at the time of Tenant’s exercise of the Option (aas defined hereinafter) or at the commencement of the extended term, Tenant shall have the option to renew the term of this Lease for one (1) five (5) year Option to renew this Lease (the “Option”). Tenant shall provide to Landlord on a date which is prior to the date that the Option period would commence (if exercised) by at least two hundred seventy (270) days and not more than three hundred sixty-five (365) days, a written notice of the exercise of the Option to extend the Lease for the additional period Option term, time being of the essence. Such notice shall be given in accordance with Section 40 of the Lease, as modified by Section 26. If notification of the exercise of this Option is not so given and received, all Options granted hereunder shall automatically expire. Base Rental applicable to the Premises for the Option term shall be equal to the “Fair Market Rental” as hereinafter defined. All other terms and conditions of the Lease shall remain the same, except that upon exercise of the Option, Tenant shall have no further options to renew this Lease.. b. If the Tenant exercises the Option, the Landlord shall determine the Fair Market Rental by using its good faith judgment. Landlord shall provide Tenant with written notice of such amount within fifteen (15) days after Tenant exercises its Option. Tenant shall have fifteen (15) days (“Tenant’s Review Period”) after receipt of Landlord’s notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rental, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following Tenant’s Review Period (“Outside Agreement Date”) then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of Maryland and who specializes in the field of commercial office space leasing in the Rockville, Maryland market, has at least five (5) years of experience and is recognized within the field as being reputable and ethical. If one party does not timely appoint a broker, then the broker appointed by the other party shall promptly appoint a broker for such party. Such two individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the “Option Term”two individuals shall, within five (5) following days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the expiration qualifications described above. If the two brokers are unable to agree upon a third broker, the third broker shall be appointed by the President of the initial lease term provided that this lease ▇▇▇▇▇▇▇▇▇▇ County Board of Realtors. In the event the ▇▇▇▇▇▇▇▇▇▇ County Board of Realtors is no longer in existence, the third broker shall be appointed by the President of its successor organization. If no successor organization is in full force and effectexistence, the Tenant third broker shall be appointed by the Chief Judge of the Circuit Court of ▇▇▇▇▇▇▇▇▇▇ County, Maryland. The third individual shall within ten (10) days after his or her appointment make a determination of such Fair Market Rental. The third individual shall determine which of the determinations of the first two individuals is closest to his own and the determination that is closest shall be final and binding upon the parties, and such determination may be enforced in possession and occupying the Premises, any court of competent jurisdiction. Landlord and Tenant shall not be in default in each bear the performance or observance cost of any its broker and shall share equally the cost of the terms, conditions, provisions and/or covenants third broker. Upon determination of the Lease. All such rights of a renewal shall be exercised by delivery base rent payable pursuant to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used hereinSection, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant parties shall promptly execute an amendment to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming this Lease stating the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:so determined.

Appears in 1 contract

Sources: Leasing Agreement (Learning Tree International Inc)

OPTION TO RENEW. (a) Tenant shall have the option to renew the term of this the Lease for one two (12) additional period periods of five (5) years each (the "Option Term") following the expiration of the initial lease term Lease term, provided that this lease Lease is in full force and effect, the original Tenant named herein shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the this Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s 's intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the leaseLease term. The Option Term Terms shall be of on the same terms, covenants and conditions as the original lease initial Lease term except Base Rent for the first Lease Year of each Option Term shall be the greater of (i) one hundred three percent (103%) of the previous year's Base Rent including Additional Rent or (ii) one hundred AV-BTRL6.LSE MVD-5/6/97 percent (100%) of the then Prevailing Market Rent (as hereinafter defined) of comparable space within the Gaithersburg, Maryland Gaithersburg market area., including current operating costs and concessions, which Rent shall be established as follows: (ia) Within fifteen (15) business days after receipt of Tenant’s 's notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s 's estimate of the Prevailing Market Rent. If Tenant disagrees with Landlord’s 's estimate of the Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Landlord's estimate of the Prevailing Market Rent to Arbitrationarbitration, in which event the provisions of subparagraph (b)(ii)(ab) of this Article 57 49 shall govern for the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration arbitration during such fifteen (15) day period, then the Landlord’s 's estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and, if the same is greater than 103% of the previous year's Base Rent and Additional Rent, then Landlord's estimate of the Prevailing Market Rent shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term "Prevailing Market Rent" means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises (and any Additional Premises) would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space Lease beginning on the commencement date of the lease of the Premises Option Term under conditions whereby:

Appears in 1 contract

Sources: Office Lease (Boston Biomedica Inc)

OPTION TO RENEW. (a) If Tenant shall comply with each of the terms, provisions and conditions of the Lease, then Tenant shall have the an option to renew the term of extend this Lease for one two (12) additional period consecutive terms of five (5) years (the “Option Term”) following each commencing at the expiration of the initial lease term provided that this lease is in full force and effectLeased Term or any extended term, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior subject to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of contained in this Lease, Landlord shall notify Tenant all of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed applicable to be agreed such extension. Notice of intention to by Tenant, and exercise any extension above described shall be the Base Rent payable given by Tenant to Landlord during in writing at least sixty (60) days before expiration of the Leased Term or any extended term, and in default thereof, all subsequent options to extend shall expire and shall be of no effect. The rent in the first year of the then applicable Option Term. first year term shall be Forty-Seven Thousand Five Hundred Dollars (i$47,500) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased payable monthly in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation advance of the lease 1st of such space beginning each month at the rate of $3958.33 per month. (Cost of Living Escalator) Beginning on the 2nd anniversary date of the commencement date of this Lease, and on each anniversary date thereafter during the lease renewal of the Premises under conditions whereby:term hereof, the rental reserved in this Lease shall be increased by an amount which reflects any increase in the "Consumer's Price Index, United A/States Average - All Items and Food", published by the U.S. Department of Labor, Bureau of Statistics. The amount of the increased rental for such year shall be arrived at by multiplying the rental set forth in introduction of this Lease by a fraction, the numerator of which shall be the Index number for the month which precedes the applicable anniversary date, and the denominator of which shall be the Index number for the month preceding the Commencement Date. The increased monthly rental shall be paid in advance, in equal monthly installments on the first day of each calendar month during the applicable year. Notwithstanding anything herein contained which may be construed to the contrary, at no time shall the minimum rental be less than the minimum rent set forth in the introduction of this Lease.

Appears in 1 contract

Sources: Lease (First Shares Bancorp Inc)

OPTION TO RENEW. (a) Provided that Tenant is not in material default hereunder and that the Tenant named herein (and not a sublessee or assignee, except a Permitted Transferee as defined herein) is then occupying at least one-third of the entire Premises demised hereunder, Tenant shall have the option to renew the term of this Lease for one additional term of, at Tenant's option, six (16) additional months minimum to twenty four (24) months maximum commencing upon expiration of the initial term of the Lease. (b) If Tenant wishes to exercise said option, Tenant must do so by written notice given to Landlord not less than six (6) months prior to expiration of the initial term. (c) If the Tenant exercises said option, the renewal lease shall be on all the same terms and conditions as set forth herein as applicable to the initial term (as the initial term is defined in paragraph 3.1 hereof), excepting as follows: (i) the option so exercised shall not itself be renewed; (ii) the Landlord shall have no obligation to pay for any alterations or improvements to the Premises (as the Premises may then be constituted); (iii) the Base Year shall be the calendar year in which such renewal term commences; and (iv) the Minimum Rent payable by Tenant for and during the applicable renewal period shall be an amount which is equal to 100% of the prevailing fair market rent for the Premises for the option period as of the date of commencement of the applicable extended term, as shall be mutually agreed upon in writing by Landlord and Tenant within thirty (30) days after exercise of option; the prevailing fair market value shall be net of leasing commissions and Tenant shall be solely responsible for leasing commissions should he retain the services of an agent. In no event shall the Minimum Rent for any extended term be less than the Minimum Rent in effect during the last year of the preceding term. Landlord represents that Landlord is not obligated to pay to ▇▇▇▇▇▇/Collenette any commissions on account of the option to renew. If the parties are unable to agree on the Minimum Rent for the extended term within such thirty (30) day period, then within ten (10) days after the expiration of such thirty (30) day period, each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least five (5) years (full time commercial appraisal experience in the “Option Term”) following area in which the expiration of Premises are located to appraise and set the initial lease term provided that this lease is in full force and effectMinimum Rent. If a party does not appoint an appraiser, the Tenant single appraiser appointed shall be in possession the sole appraiser and occupying shall set the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Minimum Rent for the Option Term extended term. If the two appraisers are appointed by the parties as stated in this paragraph, they shall meet within thirty (30) days after the last appraiser isappointed and if, within ten (10) business day. after such first meeting, the two appraisers are unable to agree promptly upon the amount of the Minimum Rent for the extended term, they, themselves, shall within ten (10) business days thereafter appoint a third appraiser meeting the qualifications stated in this paragraph; in the event that the two appraisers are unable to agree upon the appointment of a third appraiser within such ten (10) business days, either of the parties to this Lease, by given ten (10) days notice to the other party, can apply to the then president of the county real estate board of the county in which the Premises are located, or to the presiding judge of the Superior Court of that county, for the selection of a third appraiser who meets the qualifications stated in this paragraph. Each of the parties shall bear one-half of the cost of appointing the third appraiser and paying the third appraiser's fee. The third appraiser, however selected, shall be a person who has not previously acted in any capacity for either party. In the event of the failure, refusal or inability of any appraiser to act, his successor shall be appointed by him within a period of ten (10) days but, in the case of the third appraiser, his successor shall be appointed as hereinabove provided. Within thirty (30) days after the selection of the third appraiser, a majority of the appraisers shall set the Minimum Rent for the extended term. If a majority. of the appraisers are unable to set the Minimum Rent within the stipulated period of time, the three appraisals shall be added together and their total divided by three; the resulting quotient shall be the then Prevailing Market Minimum Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of Premises during the then applicable Option Term; providedextended term. If, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day periodlow appraisal and/or the high appraisal are/is more than 10% lower and/or higher than the middle appraisal, then the Landlord’s estimate of Prevailing Market Rent low appraisal and/or the high appraisal shall be deemed to disregarded. If only one appraisal is disregarded, the remaining two appraisals shall be agreed to added together and their total divided by Tenant, and two; the resulting quotient shall be the Base Minimum Rent payable by Tenant to Landlord for the Premises during the first year of extended term. If both the then applicable Option Term. (i) Definition: As used hereinlow appraisal and the high appraisal are disregarded as stated in this paragraph, the term “Prevailing Market Rent” means middle appraisal shall be the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which Minimum Rent for the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, during the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:extended term.

Appears in 1 contract

Sources: Lease (Genesys Telecommunications Laboratories Inc)

OPTION TO RENEW. (a) a. Subject to the provisions of Section 53, and provided that Tenant is not in Default at the time of Tenant's exercise of the Option or at the commencement of the applicable Option Term, as hereinafter defined, Tenant shall have the option to renew the term of this Lease for one three (13) additional period of five (5) years year options to renew this Lease (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effectindividually, the "Renewal Option"). Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery provide to Landlord of written notice of Tenant’s intention on a date which is prior to renew the term at least nine date that each Renewal Option period would commence (9if the Renewal Option is exercised) by not more than fifteen (15) months but not more nor less than twelve (12) months prior a written notice of the exercise of the Renewal Option, time being of the essence. Such notice shall be given in accordance with Section 39 of this Lease. If notification of the exercise of any of the Renewal Options is not so given and received, the Renewal Options granted hereunder shall automatically expire. Base Rent applicable to the expiration of the then applicable Premises for each Renewal Option term of the lease. The Option Term shall be equal to the greater of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within the "Fair Market Rental" as hereinafter defined, and (ii) the then current escalated Base Rent. All other terms and conditions of this Lease shall remain the same, except that that with respect to Tenant's exercise of the first Renewal Option, there shall be only two (2) remaining Renewal Options, with respect to the exercise of the second Renewal Option, there shall be only one (1) remaining Renewal Option and with respect to the exercise of the third Renewal Option there shall be no further Renewal Option. b. If the Tenant exercises the Option, the Landlord shall determine Fair Market Rental by using its good faith judgment. Landlord shall provide Tenant with written notice of such amount within fifteen (15) business days after receipt of Tenant’s notice exercising Tenant exercises its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market RentOption. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such have fifteen (15) day perioddays ("Tenant's Review Period") after receipt of Landlord's notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rental, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following Tenant's Review Period ("Outside Agreement Date") then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of New Jersey and who specializes in the field of commercial office space leasing in the Secaucus, New Jersey market, has at least five (5) years of experience and is recognized within the field as being reputable and ethical. If one (1) party does not timely appoint a broker, then the Landlord’s estimate broker appointed by the other party shall promptly appoint a broker for such party. Such two (2) individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the two (2) individuals shall, within five (5) days, render separate written reports of Prevailing Market Rent their determinations and together appoint a third similarly qualified individual having the qualifications described above. If the two (2) brokers are unable to agree upon a third (3rd) broker, the third (3rd) broker shall be deemed appointed by the President of the New Jersey Board of Realtors. In the event the New Jersey Board of Realtors is no longer in existence, the third (3rd) broker shall be appointed by the President of its successor organization. If no successor organization is in existence, the third (3rd) broker shall be appointed by the Chief Judge of the Circuit Court of ▇▇▇▇▇▇ County, New Jersey. The third (3rd) individual shall within ten (10) days after his or her appointment make a determination of such Fair Market Rental. The third (3rd) individual shall determine which of the determinations of the first two (2) individuals is closest to his own and the determination that is closest shall be agreed to by Tenantfinal and binding upon the parties, and shall such determination may be the Base Rent payable by Tenant to Landlord during the first year enforced in any court of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the competent jurisdiction. Landlord and Tenant shall each acting prudentlybear the cost of its broker and shall share equally the cost of the third (3rd) broker. Upon determination of the base rent payable pursuant to this Section, knowledgeable, and assuming the parties shall promptly execute an amendment to this Lease stating the rent is not affected by undue stimulus. Implicit in this definition is so determined. c. The term "Fair Market Rental" shall mean the consummation of the lease of such space beginning on the commencement date of the lease of annual amount per rentable square foot that a willing, comparable renewal tenant using the Premises for a use permitted under conditions wherebythis Lease would pay and a willing, comparable landlord of a similar building would accept at arm's length for similar space, giving appropriate consideration to the following matters:

Appears in 1 contract

Sources: Lease Agreement (Equinix Inc)

OPTION TO RENEW. (a) Provided Tenant is not then in default of any terms and conditions of the Lease, Tenant shall have two (2) consecutive renewal options to extend the option Term as to renew part (at least 75% of the term Premises) or all of this Lease the Premises and any expansion space added to the Premises for one (1) an additional period of five (5) years (the “Option Term”) following the expiration each. If less than all of the initial lease term provided Premises are to be leased, then that this lease portion of the Premises which is in full force and effect, the not being leased by Tenant shall must be in possession and occupying such configuration that it can reasonably be leased by the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the leaseLandlord. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term first year of each of the extended Terms shall be the lesser of: (1) the Base Rent as of the last day preceding the renewal Term or (2) ninety percent (90%) of the Fair Market Rate (“Market Rate”). The Base Rent for each subsequent year of each renewal Term shall increase by three percent (3%) on each December 1. Fair Market Rate (“Market Rate”) shall be defined as the then Prevailing fair market full service gross rental value of the Premises as of the date of commencement of the renewal term, determined in accordance with the provisions set forth below. The Market Rent Rate of the Premises shall mean the full service gross rental that would be agreed to by a landlord and a new tenant, each of whom is willing, but neither of whom is compelled, to enter into the lease transaction. The Market Rate shall be determined on the basis of the assumption that the operating expense base year shall be updated to the first full calendar year under the renewal. The Market Rate shall not take into account any existing tenant improvements or any special uses or rights afforded to the Tenant under the Lease in connection with the Premises, but shall take into account the following factors: i. Rental for comparable space premises in comparable existing buildings (taking into consideration, but not limited to, use, location and/or floor level within the GaithersburgBuilding and other comparable buildings located within a one and one half (1.5) mile radius of the Building, Maryland market definition of net rentable area., quality, age and location of the applicable buildings); ii. The rentable area of the Premises being leased; iii. The length of the pertinent renewal term; iv. The extent to which the tenant improvement allowance, rent credit, moving allowance, space planning allowance, or similar inducements given to Tenant are less than that which would have been given to a comparable new tenant in a comparable building; v. The quality of credit worthiness of Tenant; and vi. The extent to which commissions are due or payable by Landlord as a result of Tenant’s exercising its option to renew this Lease. If Landlord and Tenant are unable to agree upon the Market Rate within thirty (i30) Within fifteen days after the date of Tenant’s notice of intent to renew, either party may elect, by written notice delivered to the other party, to determine the Market Rate by appraisal as follows. The determination of Market Rate shall be determined by three appraisers selected according to the provisions of the American Arbitration Association, each of whom shall be independent and shall not be or have been employed or engaged in any manner (15employee, consultant or otherwise) business by Landlord or Tenant (or their respective affiliates) at any time during the arbitration or during the immediately prior three (3) year period. The appraisers shall have the MAI designation and a minimum of ten (10) years’ experience in the Salt Lake City office market. Tenant’s renewal rate shall be determined by the appraisers no later than thirty (30) days after the date of initiation of the arbitration proceeding. Tenant shall have the right and option, within thirty (30) days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the written determination of Prevailing Market Rent Rate by the appraisal panel, to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its exercise of its renewal option by providing written notice or to submit the determination Landlord. The cost of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent arbitration shall be deemed to be agreed to shared equally by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Tenant.

Appears in 1 contract

Sources: Lease Agreement (Medallion Financial Corp)

OPTION TO RENEW. Provided and upon the conditions that, (a) at the time Tenant shall have the exercises its right and option (described below) to renew extend the term of this the Lease for one (1) additional period of five (5) years (and immediately prior to the “Option Term”) following the expiration commencement date of the initial lease term provided that this lease is applicable extension term, the Lease shall be in full force and effect, the Tenant shall be in possession and occupying the Premises, effect and Tenant shall not be in default in the performance or observance breach of any of the terms, conditions, provisions and/or covenants of the Lease (whether or not the same constitutes an "Event of Default" as defined in Article 15 of the Lease. All ), and (b) during the twelve (12) months prior to such rights commencement date no such Event of a renewal Default shall be exercised have occurred, Tenant shall have the right and option, exercisable by delivery to giving Landlord of prior written notice of Tenant’s intention to renew the term thereof at least nine (9) months but not more than twelve (12) months prior to before the expiration commencement date of the then applicable term of the lease. The Option Term shall be of the same termsextension term, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Leasethe Lease for one term of three (3) years, commencing on September 1, 2026 and expiring on August 31, 2029, at a monthly Fixed Rent (expressed as an annual amount per square foot of the total rentable square feet of the Premises) equal to the greater of (1) the monthly Fixed Rent payable by Tenant for the month immediately preceding the commencement date of the extension term, and (2) the Fair Market Rent (defined below) as of the commencement date of the extension term, but otherwise upon the same terms, conditions and provisions contained in the Lease including, without limitation, the obligation of Tenant to pay Additional Rent under Section 2.3 of the Lease (except that (A) Landlord shall notify Tenant have no obligation to perform any improvements to the Premises or provide any contribution therefor, (B) there shall be no waiver or abatement of Landlord’s estimate of Prevailing Rent, and (C) there shall be no further right and option to extend). As used herein, "Fair Market Rent" means the monthly base rent, per square foot (with a tenant to pay Additional Rent of the same types described in the Lease), for a lease term equivalent to the extension term, at which Landlord is renewing leases for comparable improved office space in the complex of which the Building is a part and landlords are leasing comparable improved office space in buildings that are comparable to the Building and located in the Bala Cynwyd and Conshohocken, Pennsylvania markets (with appropriate adjustments to take account of variations in location, size and tenant fit-up costs undertaken by Landlord and such landlords) as provided to Tenant by Landlord's written notice within thirty (30) days of receipt of Tenant's notice of exercise. Within ten (10) days after T▇▇▇▇▇'s receipt of such notice from Landlord to Tenant, Tenant shall give notice to Landlord either accepting or rejecting the Fair Market Rent (if greater than the monthly Fixed Rent payable by Tenant for the month immediately preceding the commencement date of the extension term). If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, rejects such terms or if Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall fails to notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph within such ten (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (1510) day period, then the Landlord’s estimate Lease shall terminate absolutely, without the necessity of Prevailing Market Rent shall be deemed to be agreed to by Tenantany further notice from either party, and shall be at the Base Rent payable by Tenant to Landlord during the first year end of the then applicable Option Term. (i) Definition: As used hereinexisting Term of the Lease. If Tenant accepts such terms, then Landlord shall prepare, and the term “Prevailing Market Rent” means the most probable rent (as determined pursuant parties shall execute, an appropriate amendment to the appraisal procedure hereinafter set forth) at which Lease reflecting the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:amendment.

Appears in 1 contract

Sources: Lease (Larimar Therapeutics, Inc.)

OPTION TO RENEW. (a) Section 26 of the Original Lease and Section 9 of the First Amendment to Lease are deleted in their entirety and replaced with the following: "Provided that no default by Tenant shall have exists hereunder either as of the option date Tenant notifies Landlord of its election to renew extend the term Term or at any time prior thereto, Tenant may extend the Term of this Lease for one (1) additional period of five (5) years (hereinafter referred to as the “Option `Renewal Term'), subject to the following terms and conditions: (i) following the expiration Tenant must be in occupancy of the initial lease term provided that this lease entire Demised Premises at the time of Tenant's notice to exercise the renewal option. If Tenant is not in full force occupancy of the entire Demised Premises at any time between the date of Tenant's notice to exercise the renewal option and effectthe date of the beginning of the Renewal Term, Landlord may, at its option, nullify Tenant's exercise of the renewal option. (ii) Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to notify Landlord of written notice of Tenant’s intention its election to renew the term at least nine (9) months but Term by giving Landlord notice thereof not more than fifteen (15) months, nor less than twelve (12) months months, prior to the expiration of the then applicable term Term, time being of the leaseessence. The Option Term shall be All of the same terms, covenants and conditions as provisions of this Lease (other than the original lease except Base Rent for amount of Fixed Rental payable hereunder) shall apply during the Option Renewal Term. (iii) The annual Fixed Rental during the Renewal Term shall be the then Prevailing Market Rent greater of comparable (a) the annual Fixed Rental in effect during the twelve (12) month period preceding the commencement of the Renewal Term arid (b) the "fair market rent" for the Demised Premises at the time of the commencement of the Renewal Term. The term "fair market rent" shall be the rent generally payable in Mercer County, New Jersey fo▇ equivalent space within in an office building of approximately the Gaithersburgsame age, Maryland market area. location, quality, size and condition as the Building. __ giving due consideration to the location of the Demised Premises in the Building, the length of the Term of the Lease, and all other factors that would reasonably be relevant to a third-party tenant desiring to lease the Demised Premises for the Renewal Term. Within thirty (i30) Within fifteen (15) business days after receipt the exercise by Tenant of Tenant’s notice exercising its option to extend the term of this Leaserenew, Landlord shall notify Tenant of Landlord’s estimate 's determination of Prevailing Market Rentthe annual Fixed Rental during the Renewal Term. If Tenant desires to dispute Landlord's determination then Tenant shall, within thirty (30) days after receipt thereof, submit to Landlord a written appraisal of the fair market rent for the Demised Premises by an appraiser who is a member of the American Institute of Real Estate Appraisers, having at least seven (7) years' experience in appraising commercial real estate in Mercer County, New Jersey (a "Qualified Appraiser"). If Landlord disagrees with the fair market rent determined by Tenant's Qualified Appraiser, then within forty-five (45) days of its receipt of such appraisal, Landlord shall submit to Tenant a written appraisal of the fair market rent for the Demised Premises by a Qualified Appraiser selected by Landlord’s estimate of Prevailing Market Rent. If Landlord's and Tenant's Qualified Appraisers do not agree upon the fair market rent but are apart by less than three (3%) percent, Tenant then the fair market rents determined by both shall be averaged; otherwise, Landlord and Tenant's Qualified Appraiser shall mutually agree upon an independent Qualified Appraiser to determine such fair market rent. If the parties are unable to agree upon such independent appraiser, either party may rescind request the American Arbitration Association in Mercer County, New Jersey, t▇ ▇▇▇▇int such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant independent appraiser. The independent appraiser shall notify Landlord that it has elected to submit select either the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice fair market rent by Landlord's Qualified Appraiser or to submit the determination of Prevailing Market Rent fair market rent by Tenant's Qualified Appraiser, which determination shall be binding upon both Landlord and Tenant. The parties shall be responsible for the cost of their own Qualified Appraiser and shall share equally in the cost of any independent third Qualified Appraiser. Pending resolution of the issue of fair market rent, Tenant shall pay to Arbitration during such fifteen (15) day periodLandlord as of the commencement of the Renewal Term, the Fixed Rental as determined by Landlord. In the event that it is established that the Fixed Rental is less than the Fixed Rental paid by Tenant prior to a final determination under the preceding sentence, then provided Tenant is not then in default hereunder, Landlord shall reimburse Tenant any such overpayment of Fixed Rental within thirty (30) days of such final determination. In the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be event that it is established that the Base Rent payable Fixed Rental is greater than the Fixed Rental paid by Tenant prior to Landlord during a final determination as set forth herein, Tenant shall pay to Landlord, within 30 days of such final determination, the first year difference between the Fixed Rental as set forth in Landlord's initial determination and the Fixed Rental as finally determined, with respect to all months of the then applicable Option TermRenewal Term which elapsed prior to such final determination. (iiv) Definition: As used hereinUpon final determination of Fixed Rental to be paid during the Renewal Term as hereinabove provided, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudentlyshall enter into a lease amendment to reflect same; however, knowledgeable, and assuming neither Landlord's failure to request such an amendment nor Tenant's failure to execute such an amendment shall effect the rent is not affected by undue stimulus. Implicit in this definition is the consummation validity of the lease determination of such space beginning on Fixed Rental as set forth herein. (v) The option to renew granted to Tenant is personal to the commencement date of the lease of the Premises under conditions whereby:initial named Tenant and may not be exercised by or assigned to, whether voluntarily or involuntarily, other person or entity.

Appears in 1 contract

Sources: Lease (Performance Health Technologies Inc)

OPTION TO RENEW. (a) Tenant shall have the option to renew the term of this Lease for one (1) additional a period of five seven (57) years (on the “Option Term”) following same terms and conditions, except rent. The renewal period shall commence at the expiration of the initial lease term provided that this lease is in full force and effect, the term. Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery must give written notice to Landlord of written notice of Tenant’s intention its intent to renew the term at least nine exercise this option not less than six (9) months but not more than twelve (126) months prior to the expiration of the then applicable term of the leaseinitial term. The Option Term written notice shall be in the form of the same termscertified or registered mail, covenants and conditions as the original lease except return receipt requested. The Base Rent for the Option Term renewal term shall be 100% of the then Prevailing Market Rent of comparable prevailing market rate ("market rent") for similar type space in office buildings within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable Oak Brook area for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termrenewal term to be increased in each successive year by three (3%) percent of the prior year's total rent or the increase in the Consumer Price Index for the prior calendar year times the prior year's total rent, whichever is greater. Landlord shall deliver to Tenant a notice which shall specify the initial annual Base Rent and monthly installments thereof within seven (7) days after Tenant's notice of election to exercise its option to renew. Tenant shall have seven (7) days to rescind the exercise of its option to renew by sending written notice thereof to Landlord within said 7-day period after the receipt of Landlord 's notice to Tenant specifying the Base Rent for the initial year of the renewal term. Should Tenant not rescind the election of its option to renew and should Tenant disagree with the market rent so determined by Landlord, Tenant may demand, at any time within fifteen (15) days of Tenant's receipt of Landlord's notice aforesaid. (i) Definition, that the determination of market rent shall be submitted to arbitration. Such arbitration shall be conducted in DuPage County, Illinois in accordance with the following: As used hereineach party shall designate in writing, within 15 days after any such notice, the term “Prevailing Market Rent” means name of an arbitrator who holds an M.A.I.( Master Appraiser Institute) designation or its equivalent and who is familiar with Oak Brook market rentals. Within 45 days after the most probable rent (designations, as determined pursuant aforesaid, the two arbitrators chosen shall each make his decision as to the appraisal procedure hereinafter set forth) at which market rent. Should such arbitrators disagree as to the Premises would market rent, but should the highest determination of market rent be leased in a comparable and open market, under all conditions requisite to a fair leasewithin 10% of the lowest determination, the average of the amounts determined by the two arbitrators shall be deemed the market rent. In the event that the two arbitrators are in excess of 10% apart, and, in the further event landlord and Tenant cannot mutually agree as to the market rent, within 10 days after the receipt of the determination by such two arbitrators, the two arbitrators shall appoint a third arbitrator of equal qualification who shall determine market rent within 45 days of appointment. Whereupon the average of the amounts determined by the three arbitrators shall be deemed market rent. Any determination shall be binding upon Tenant and Landlord and shall be enforceable by any court exercising jurisdiction over the parties. The cost of the arbitrators, excluding fees of counsel for Tenant each acting prudentlyand Landlord, knowledgeableshall be divided equally between the parties. In the event the arbitration is not resolved at the end of the term, and assuming Tenant shall pay as rent during the renewal term 110 % of the total rent then being paid by Tenant hereunder. Upon determination of the market rent, the rent is not affected by undue stimulus. Implicit in this definition is paid during the consummation period of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:dispute will be retroactively adjusted and appropriate payment made.

Appears in 1 contract

Sources: Lease Agreement (United Financial Mortgage Corp)

OPTION TO RENEW. (a) a. Provided that Tenant is not then in Default under this Lease, and provided further that this Lease shall not have theretofore been assigned, nor all or any portion of the Premises sublet, Tenant shall have the one (1) option to renew the term of this Lease (the "Option to Renew") for one (1) additional period term of five (5) years (the "Option Term”) following "). Tenant must exercise the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery Option to Landlord of written notice of Tenant’s intention to renew the term at least Renew no less than nine (9) months but not more months, nor earlier than twelve (12) months months, prior to the expiration end of the then applicable term existing Term, by giving written notice to Landlord. Within thirty (30) days after Tenant's exercise of the lease. The Option Term to Renew as provided herein, Landlord shall be provide Tenant with its determination of the same terms, covenants and conditions as the original lease except Base Rent Fair Market Rental Rate for the Premises, in writing, which shall apply during the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areaTerm. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term b. For purposes of this Lease, the term “Fair Market Rental Rate” shall mean a rate comprised of (a) the prevailing base rental rate per square foot of rentable area available in the Pertinent Market (as hereinafter defined), as determined by Landlord shall notify in good faith at the time Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentexercises its Option to Renew, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph and (b)(ii)(ab) one hundred percent (100%) of this Article 57 shall govern any escalation of any such base rental rate prevailing in the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; providedPertinent Market, howeveras determined by Landlord in good faith, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. taking into account (i) Definition: As used hereincomparable leases (on the basis of factors such as, but not limited to, size and location of space, commencement date and term of lease) at the time Tenant exercises its Option to Renew, if any, recently executed for improved space in the Building, or (ii) if no such leases for comparable space have been executed in the Building, then leases for comparable (on the basis of factors such as, but not limited to, size and location of space, commencement date and term “Prevailing Market Rent” means of lease) improved space in Class A office buildings in the most probable rent (as determined pursuant geographical area in which the Building is located which are comparable to the appraisal procedure hereinafter set forthBuilding in reputation, quality, age, size, location, and level and quality of services provided (the foregoing factors not being exclusive in identifying comparable buildings) at which (the Premises would be leased Building, together with other such comparable buildings in a comparable and open the Orange County Airport area market, under all conditions requisite if applicable, being herein referred to a fair lease, as the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:“Pertinent Market”).

Appears in 1 contract

Sources: Office Lease (AtheroNova Inc.)

OPTION TO RENEW. (a) Tenant shall have may extend the option to renew Term of the term of this Lease for one One (1) additional period of five Two (52) years (the “Option TermPeriod”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention its election to renew the term at least nine do so given to Landlord one hundred and eighty (9180) months but not more than twelve (12) months days prior to the expiration date or the expiration date of the then applicable term of the leasefirst Option Period, as applicable. The Option Term Period will be on all of the terms and conditions of the Lease applicable at the expiration date, except for the payment of Base Rent, which shall be an amount equal to Fair Market Rental Rate (as hereinafter defined) of the same termsPremises in relation to market conditions at the time of the extension. The Fair Market Rental Rate of the Premises shall be determined based upon the annual amount per rentable square foot that a willing, covenants comparable, non-equity, non-renewal, non-expansion new tenant would pay and a willing, comparable landlord of a first-class office building in a similar area would accept at arm’s length, giving appropriate consideration to annual rental rates per rentable square foot, the type of escalation clauses (including, but not limited to, operating expense, real estate taxes, CPI), size and location of premises being leased and other generally applicable terms and conditions of tenancy for the space in question (the “Fair Market Rental Rate”). Landlord and Tenant agree to immediately execute an amendment to this Lease stating and incorporating the Fair Market Rental Rate as the original lease except Base Rent for the Option Term shall be Period. However, upon expiration of the then Prevailing Market Rent of comparable space within the GaithersburgOption Period, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option Tenant will have no further right to extend the term term. Tenant will not have any rights under this paragraph if: (a) An event of this Leasedefault exists on the expiration date or on the date on which Tenant gives its written notice, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its requesting the right of renewal to exercise the herein provided by this leaseoption, or (b) Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment occupies less than substantially all of the Prevailing Market Rent payable for the year rentable square feet (but not less than 90% of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15Premises) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:on the expiration date, or (c) Tenant exercises its rights less one hundred eighty (180) days before the expiration date.

Appears in 1 contract

Sources: Standard Office Building Lease (Rewards Network Inc)

OPTION TO RENEW. (a) Tenant shall have the right and option to renew extend the term of this Lease for one (1) additional period of five (5) years (the “Option "Extended Term"). The Extended Term shall commence (if at all) following immediately upon the expiration of the initial lease term provided that this lease is in full force and effect, the Expiration Date. Tenant shall be in possession exercise its right and occupying option to extend the Premises, and Tenant shall not be in default in term of this Lease for the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised Extended Term (if at all) by delivery to giving Landlord of written notice of Tenant’s intention to renew same on or before the term at least nine two hundred seventieth (9270th) months but not more than twelve (12) months day prior to the expiration date that would be the first day of the then applicable term Extended Term (but in no event shall Tenant be entitled to deliver such notice before the three hundred and sixty fifth (365lh) day prior to the date that would be the first day of the leaseExtended Term). Anything herein to the contrary notwithstanding, Tenant may not exercise any right and option provided for in this Paragraph 6 at any time (a) as of which an Event of Default pursuant to Article 10 of this Lease shall exist, (b) after Landlord shall have terminated Tenant's right to possession of the Premises pursuant to Section 10.▇ ▇▇ this Lease, or (c) after this Lease shall have otherwise been terminated. The Option Extended Term shall be of upon the same terms, covenants terms and conditions as the original lease initial term, except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area.as follows: (ia) Within fifteen (15) business days after receipt of Tenant’s notice exercising its Tenant shall have no additional right or option to extend the term of this Lease, Landlord (b) no additional Landlord's Work shall notify Tenant be performed, and (c) the monthly Base Rent for the Extended Term shall be the fair market rental of Landlord’s estimate the Premises, as the Premises exists at the time of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right or, if then damaged or destroyed, as the same would exist after repair or restoration of renewal provided by this leasesuch damage or destruction, or Tenant shall notify Landlord that it has elected to submit but in no event less than the determination of Prevailing Market monthly Base Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of month immediately preceding the then applicable Option Extended Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit . The fair market rental for the determination of Prevailing Market Rent to Arbitration during such Extended Term shall be determined by Landlord. Within fifteen (15) day periodbusiness days after Landlord receives Tenant's notice exercising the right to extend the term of the Leas▇, then ▇▇▇dlord shall give Tenant a notice stating Landlord's determination of the monthly Base Rent for the Extended Term. Within fifteen (15) business days after receiving Landlord’s estimate 's notice. Tenant shall give a written notice to Landlord in which Tenant either accepts Landlord's determination of Prevailing Market the monthly Base ▇▇▇▇ ▇or the Extended ▇▇▇▇ ▇▇ rejects such determination. If Tenant accepts Landlord's determination of the monthly Base Rent for the Extended ▇▇▇▇, ▇▇e term of this Lease shall be extended for the Extended Term, subject to the agreements, covenants and conditions of this Lease and the monthly Base Rent shall be deemed the amount so determined by Landlord. If Tenant does not accept such determination (either by rejecting such ▇▇▇▇▇mination or failing to be agreed accept Landlord's determination), Tenant's right to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, extend the term “Prevailing Market Rent” means of this Lease for the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Extended Te▇▇ ▇▇▇ll terminate.

Appears in 1 contract

Sources: Deed of Industrial Lease (Gigabeam Corp)

OPTION TO RENEW. (a) Tenant shall have Sublandlord hereby grants to the option Subtenant the right to renew the term Term of this Lease Sublease for one (1) an additional period of forty-five (545) years months (the “Option "Renewal Term"), subject to the following terms and conditions: (i) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written Subtenant must give Sublandlord notice of Tenant’s Subtenant's intention to renew the term at least nine (9"Intention to Renew Notice") no earlier than eight (8) months but not more and no later than twelve six (126) months prior to the expiration of the then applicable term Term. If Subtenant fails to give any notice within the time period set forth above, then, this Sublease Agreement shall expire at the end of the leaseinitial Term. The Option Term shall be Time is of the same terms, covenants and conditions as essence with respect to the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent giving of comparable space within the Gaithersburg, Maryland market areasuch intention to Renew Notice. (iii) Within fifteen thirty (1530) business days after receipt of Tenant’s notice exercising Sublandlord's receiving Subtenant's Intention to Renew Notice, Sublandlord shall notify Subtenant of the market minimum rental rate to be applicable during the Renewal Term. If Subtenant disagrees with Sublandlord's determination of the market rental rate to be applicable during the Renewal Term, it shall so Notify Sublandlord and the parties agree to negotiate in good faith to arrive upon the market rental rate to be applicable during the Renewal Term. If the parties cannot agree within thirty (30) days of the Sublandlord's initial notification of its option determination of the market rental rate, than Subtenant's right to renew shall lapse and this entire Article shall become null, void and of no further force and effect. (iii) If Subtenant accepts Sublandlord's determination of the market rental rate, or the parties agree upon a market rental rate during the period set forth in the foregoing Paragraph (2), and if Subtenant is not in default under any of the terms or provision of this Sublease Agreement, then the parties shall memorialize the exercise of the Renewal by executing an amendment to the Sublease Agreement to extend the term Term of this LeaseSublease Agreement for the Renewal Term, Landlord upon the same terms and conditions herein contained; provided however, the monthly base rent payable by Subtenant to Sublandlord for the Renewal Terms shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its be at the market rate as determined by Paragraph (2) above and there shall be no further right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit renew the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) Term of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option TermSublease Agreement. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Sublease Agreement (Concur Technologies Inc)

OPTION TO RENEW. (a) Tenant shall have the option two five-year options to renew the term of this its Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration all or part of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least Premises upon nine (9) months prior written notice and provided that Tenant is not in default beyond any applicable notice and cure periods when such notice is given. The rental rate for each renewal term shall be at the then current fair market rate in the Miami Airport/West Dade office market for the Premises ("Fair Market Rent"). In determining Fair Market Rent, Landlord shall consider all then applicable elements affecting the lease transaction, including, but not more than twelve limited to, the fact that Tenant may not require an improvement allowance or rental abatement typical of a new tenant, that Landlord shall not lose rent because of any marketing or construction time and that the Fair Market Rent is being projected one year in advance. The recovering of the floors and recovering or repainting of the walls used in the initial tenant finishes shall also be considered in determining Fair Market Rent. Landlord and Tenant shall negotiate the rental rate one (121) months year prior to the expiration of the then applicable term of current term. If Landlord and Tenant cannot agree upon the leaserate within thirty (30) days, then either party may refer the matter for resolution to the American Arbitration Association, with each party equally sharing the costs thereof. The Option Term American Arbitration Association shall be of required to render its opinion with regard to the same terms, covenants and conditions as the original lease except Base then current Fair Market Rent for the Option Term Premises, taking into consideration the factors set forth in this paragraph, within thirty (30) days of said assignment. Tenant shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within have at least fifteen (15) business days in which to exercise said option(s) after receipt of Tenant’s notice exercising the Fair Market Rent has been agreed upon or otherwise determined. If Tenant does not exercise its option to extend renew this Lease as provided in this Paragraph 38, and the rental rate during the extension term has been determined in accordance with the arbitration procedure set forth above, Tenant shall be responsible for payment of the entire cost of the arbitration proceedings. For each option term, the Operating Expense Base Year and Tax Base Year will be adjusted to reflect the then current base years that are being offered to prospective tenants of the Building in the eleventh and sixteenth years, respectively, of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Hamilton Bancorp Inc)

OPTION TO RENEW. A. Provided no Event of Default exists and Tenant, an Affiliate or a Permitted Transferee is occupying seventy-five percent (a75%) of the rentable square footage of the Premises at the time of such election, Tenant shall have the option to may renew the term of this Lease for one two (12) additional period periods of five (5) years (each an “Extension Term”), by delivering written notice of the exercise thereof (the “Option TermExtension Notice”) following to Landlord at least sixteen (16) months before the expiration of the initial lease term provided then-current Term. All of the terms and conditions of this Lease shall remain in effect during each extension term, except that this lease is in full force and effect, (i) the Tenant Base Year shall be the calendar year in possession and occupying which the PremisesExtension Term commences, and Tenant shall not be in default in (ii) the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent payable for the Option each month during such Extension Term shall be the then prevailing rental rate (the “Prevailing Market Rent Rental Rate”), at the commencement of comparable such Extension Term, for new leases of space in Comparable Buildings, with the length of the Extension Term and the credit standing of Tenant and annual escalations, concessions and improvement allowances, and all other relevant factors to be taken into account. Within 30 days after receipt of Tenant’s Extension Notice, Landlord shall deliver to Tenant written notice of Landlord’s reasonable determination of the Prevailing Rental Rate and shall advise Tenant of the required adjustment to Base Rent, if any, and the other terms and conditions offered. Tenant shall, within the Gaithersburg, Maryland market area. ten (i) Within fifteen (1510) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate notice, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Market RentRental Rate. If Tenant disagrees with timely notifies Landlord that Tenant accepts Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; providedRental Rate, howeverthen, that if Tenant does not elect to either rescind its renewal notice on or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on before the commencement date of the lease Extension Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms provided in this Lease, except as follows: (a) Base Rent shall be adjusted to the Prevailing Rental Rate; (b) Upon execution of the second renewal option, Tenant shall have no further renewal option unless expressly granted by Landlord in writing; and (c) Landlord shall lease to Tenant the Premises in their then-current condition, and Landlord shall not be obligated to provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other tenant inducements, unless agreed as commensurate with the Prevailing Rental Rate as finally determined; and B. If Tenant fails to timely notify Landlord in writing that Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate, time being of the essence with respect thereto, then Tenant shall be deemed to have rejected Landlord’s determination of the Prevailing Rental Rate. If Tenant fails to exercise the first renewal option, Tenant’s rights under this Article shall terminate and Tenant shall have no right to renew this Lease. In the event that Tenant rejects Landlord’s determination of Prevailing Rental Rate, Tenant shall provide written notice to Landlord of each objection, within ten (10) business days of Landlord’s notice to Tenant, including Tenant’s statement of what it believes the Prevailing Rental Rate should be for the Extension Term being exercised. C. If Tenant delivers a timely rejection notice or is deemed to have rejected Landlord’s determination of Prevailing Rental Rate, then Landlord and Tenant shall, for a period of 30 days, negotiate in good faith to agree on the Prevailing Rental Rate. Upon agreement, Landlord and Tenant shall enter into an amendment to the Lease extending the Lease Term on the terms and conditions whereby:of this Article. If the parties cannot agree on the Prevailing Rental Rate within such 30 day period, then Landlord and Tenant shall meet with each other within 35 days after Landlord’s receipt of Tenant’s objection notice (or deemed rejection) and shall exchange in sealed envelopes their final proposal as to the Prevailing Rental Rate (collectively, the “Estimates”) and open such envelopes in each other’s presence. If Landlord and Tenant do not mutually agree upon the Prevailing Rental Rate within five business days of the exchange and opening of the envelopes, then the Prevailing Rental Rate shall be determined by arbitration in accordance with the expedited procedures of the Commercial Arbitration Rules of the American Arbitration Association then in force, with the following exceptions: There shall be a single arbitrator selected by the American Arbitration Association. The arbitrator shall be a commercial real estate broker having at least 10 years’ experience in the office market area in which the Building is located and shall not previously have represented either party or any Affiliate thereof. The scope of the arbitrator’s inquiry and determination shall be limited to whether the Landlord’s Estimate or the Tenant’s Estimate most closely reflects the Prevailing Rental Rate and the arbitrator may not select any Prevailing Rental Rate other than the Landlord's Estimate or the Tenant's Estimate. The determination by the arbitrator shall be rendered in writing to both Landlord and Tenant and shall be final and binding on them. The parties shall share equally in the cost of the arbitrator. Any fees of any counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining the counsel or expert.

Appears in 1 contract

Sources: Office Lease Agreement (Twinlab Consolidated Holdings, Inc.)

OPTION TO RENEW. (a) Tenant shall have the option right, to renew be exercised as hereinafter provided, to extend the term of this Lease for one two (12) additional period extension periods of five (5) years each, each such period sometimes hereinafter referred to as a “Renewal Term” and such periods sometimes hereinafter referred to collectively as the “Renewal Terms,” upon the following terms and conditions and subject to the limitations hereinafter set forth. (a) At the time hereinafter set forth for the exercise of each Renewal Term and as of the commencement of such Renewal Term, this Lease shall be in full force and effect and no Event of Default by Tenant shall exist under any of the terms, covenants and conditions herein contained which has not been remedied within the applicable cure period provided for under this Lease. (b) Except as otherwise specifically provided in this Lease, each Renewal Term shall be upon the same terms, covenants and conditions contained in this Lease, including, but not limited to, Tenant’s obligation to pay Additional Rent, and any other cost or charge which may be due and payable by Tenant under the Lease shall continue to be applicable to such Extension Term, except that the annual Basic Rent for the first Lease Year of each Renewal Term shall be equal to ninety-five percent (95%) of the then Fair Market Basic Rent (as hereinafter defined) for the Premises (the “Option Renewal Basic Rent”). At the commencement of the second Lease Year and each subsequent Lease Year of each five (5) year Renewal Term, the Basic Rent shall be increased to an amount equal to 102% of the Basic Rent for the immediately preceding Lease Year. All other payments on the part of Tenant to be made as provided in this Lease shall continue to be made during each of the Renewal Terms including, without limiting the generality of the foregoing, impositions, insurance premiums and other expenses and charges to the extent payable by Tenant hereunder. Landlord and Tenant shall endeavor to agree upon the Fair Market Basic Rent of the Premises prior to commencement of a given Renewal Term. Landlord shall communicate its determination of the Fair Market Basic Rent made in Landlord’s reasonable determination, pursuant to the criteria set forth in Section 1.2.6(c), below, to Tenant not later than fifteen (15) following months prior to the expiration of the initial lease term provided that this lease is in full force and effectLease Term or the first Renewal Term, as the Tenant case may be. Any agreement reached by the parties hereto with respect to such Fair Market Basic Rent for a given Renewal Term shall be expressed in possession writing and occupying shall be executed by the parties hereto, and a copy thereof delivered to each of the parties. Should Landlord and Tenant fail to agree at least fourteen (14) months prior to the commencement of a given Renewal Term upon the Fair Market Basic Rent of the Premises, then such Renewal Basic Rent shall be Fair Market Basic Rent determined by arbitration in accordance with the provisions of Section` hereof. “Fair Market Basic Rent “ shall mean the Basic Rent, as determined by Landlord and Tenant shall not be in default in on the performance or observance of any basis of the terms, conditions, provisions and/or covenants then prevailing market rental rates and economic terms for office space in Comparable Buildings for tenants seeking to lease approximately the same amount of rentable area as that of the Premises then leased by Tenant pursuant to this Lease. All such rights of a renewal In determining the Fair Market Basic Rent for the Premises, Landlord shall consider all elements affecting the proposed lease transaction including, but not limited to, those factors set forth in Section 1.2.6 (c). (c) The Renewal Basic Rent during each Renewal Term shall be exercised payable in equal monthly installments, equal to 1/12 of the annual Renewal Basic Rent, in advance on the first day of each calendar month during a Renewal Term. (d) Tenant shall exercise its right to extend the term of this Lease for the aforesaid Renewal Terms by delivery notifying Landlord, in writing, of its election to Landlord of written notice of Tenant’s intention exercise the right to renew and extend the term of this Lease on or before the date which is at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the initial term of this Lease, Landlord in the case of the first Renewal Term, or a date which is at least twelve (12) months prior to the expiration of the first Renewal Term, in the case of the second Renewal Term. Time shall notify Tenant be of Landlord’s estimate the essence with respect to such notices. (e) There shall be no further or additional right to renew this Lease other than as is herein set forth. Any termination of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its this Lease shall terminate any later right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termhereunder. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Office Lease Agreement (Royal Caribbean Cruises LTD)

OPTION TO RENEW. (a) Tenant shall have the right and option to renew the term of this Lease for one an additional term of sixty (160) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised months by delivery delivering written notice thereof to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term primary term, provided that at the time of such notice, and at the end of the leaseLease Term, Tenant is not in default of any of the terms, covenants or conditions of this Lease. The Option Term Upon the delivery of said notice and subject to any conditions set forth in the preceding sentence, and upon the execution by Landlord and Tenant of an extension agreement containing such terms and provisions which are consistent with the provisions of this Paragraph, this Lease shall be of extended upon the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of provided in this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord except that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(amonthly rental payable under Paragraph 2(a) of this Article 57 the Lease during the initial year of said renewal term shall govern be at the selection of arbitrators and the establishment of the Prevailing Market Rent payable prevailing market rate for the year Premises at the commencement of the then applicable Option Termsuch extended term; provided, however, that if Tenant does not elect in no event shall the monthly rental calculated by this Paragraph be less than the monthly rental payable closest to either rescind its and prior to the commencement of the renewal notice or to submit the determination term. The rental payable for each subsequent year of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent said renewal term shall be deemed to calculated by multiplying the rental payable for the immediately prior year by one hundred three percent (103%), and the product so achieved shall be the rental for such subsequent year. The "prevailing market rate" shall be defined as the then fair market net rental value of the Premises as of the date of commencement of the applicable renewal term, as reasonably determined by Landlord. The fair market net rental value of the Premises shall mean the net rental that would be agreed to by Tenanta landlord and a tenant, each of whom is willing, but neither of whom is compelled, to enter into the lease transaction. The fair market net rental value shall take into account the following factors: rental for comparable premises in comparable existing buildings (taking into consideration, but not limited to, use, location and/or floor level within the applicable building, definition of net rentable area, age and shall be the Base Rent payable by Tenant to Landlord during the first year location of the then applicable Option Term. (i) Definition: As used herein, buildings); the term “Prevailing Market Rent” means rentable area of the most probable rent (as determined pursuant Premises being leased; the length of the pertinent rental term; the extent to the appraisal procedure hereinafter set forth) at which the Premises tenant improvement allowance, rent credit, moving allowance, space planning allowance, or similar inducements given to Tenant are more or less that that which would be leased have been given to a comparable tenant in a comparable and open marketbuilding. Notwithstanding the foregoing, under all conditions requisite to a fair leaseany termination of this Lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in or any assignment of this definition is the consummation Lease or subletting of the lease of such space beginning on the commencement date of the lease more than fifteen percent (15%) of the Premises under conditions whereby:in effect at the time of notice to Landlord of the exercise of such renewal option, shall terminate the option of Tenant contained in this Paragraph.

Appears in 1 contract

Sources: Lease (Optium Corp)

OPTION TO RENEW. (a) Provided that Tenant shall have the option to renew the term of this Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be then in default in the performance or observance of under any of the covenants, terms, conditions, and provisions and/or covenants of the this Lease. All such rights of a renewal , then Tenant shall be exercised by delivery have Two (2) options to renew this Lease (each an “Option”) for consecutive Ten (10) year option periods, provided that, in order to exercise this Option, Tenant is required to give to Landlord of written notice of Tenant’s intention to renew the term at least nine thereof not less than Six (6) months before nor more than Nine (9) months but not more than twelve (12) months prior to the date of expiration of the Term of this Lease or the then applicable term of expiring option period. Other than Base Rent due under the lease. The Option Term Term(s), any renewal pursuant to this Option shall be of on the same terms, covenants terms and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areacontained in this Lease. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising 4.1.1 In the event that Tenant exercises its option to extend the term of this Leaselease, the Landlord shall notify provide written notice to Tenant of the amount which, in Landlord’s estimate reasonable opinion, represents the Fair Market Rent for the upcoming Option Term. Tenant shall have twenty (20) days from receipt of Prevailing said written notice to respond to Landlord in writing as to whether or not Tenant agrees with Landlord’s determination of the Fair Market Rent. If Tenant disagrees with LandlordTenant’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected failure to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph respond within said twenty (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (1520) day period, then the Landlord’s estimate of Prevailing Market Rent period shall be deemed to be agreed to by Tenant’s agreement with the Landlord’s determination of Base Rent. In the event Tenant disagrees with the Landlord’s determination, the following procedure shall be used in determining Fair Market Rent for the Option Term: The parties shall jointly choose an impartial real estate appraiser who shall review the market compatibles and provide a written assessment of the Fair Market Rent for the Premises. This written assessment shall determine the Base Rent for the Option Term and shall be final and binding; however, under no circumstance will the Base Rent payable by Tenant to Landlord during for the first year of Option Term be less than the Base Rent for then applicable Option Termcurrent Lease year. (i) Definition: As used herein, 4.1.2 In the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the event that Landlord and Tenant each acting prudentlycannot agree on an impartial real estate appraiser within Sixty (60) days of Tenant’s notice of dissent, knowledgeableor if the mutually selected real estate appraiser cannot provide a written assessment within Forty-Five (45) days of Landlord and Tenant’s joint request, and assuming either the rent is not affected Tenant or Landlord may terminate the Lease by undue stimulus. Implicit in providing written notice to the other, failing which, this definition is Lease shall become a month-to-month lease upon the consummation expiration of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:current Lease term.

Appears in 1 contract

Sources: Lease (Radiation Therapy Services Holdings, Inc.)

OPTION TO RENEW. (a) 2.5.1. Tenant shall have the option ("RENEWAL OPTION") to renew the term of this Lease for one four (14) additional period consecutive terms of five (5) years each (each, a "RENEWAL TERM"), on all the “Option Term”) following same terms and conditions set forth in this Lease, except that Base Rent during the expiration of the initial lease term provided that this lease is Renewal Term shall be equal to Fair Market Rent (as defined in full force and effect, the SECTION 2.5.2 below). Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery deliver written notice to Landlord of written notice of Tenant’s intention 's election to renew exercise the term at least nine Renewal Option (9"RENEWAL NOTICE") months but not less than eighteen (18) months, nor more than twelve twenty-four (1224) months months, prior to the expiration date of the original Term or the first, second or third Renewal Term, as applicable; and if Tenant fails to timely deliver the Renewal Notice to Landlord, then applicable term of Tenant shall automatically be deemed to have irrevocably waived and relinquished the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areaRenewal Option. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend 2.5.2. For the term purposes of this Lease, "FAIR MARKET RENT" shall be determined by Landlord, in its sole, but good faith, discretion based upon the annual base rental rates then being charged in the industrial market sector of the geographic area where the Building is situated for comparable space and for a lease term commencing on or about the commencement date of the Renewal Term and equal in duration to the Renewal Term, taking into consideration: the geographic location, quality and age of the Building; the location and configuration of the relevant space within the applicable Buildings; the extent of service to be provided to the proposed tenant thereunder; applicable distinctions between "gross" lease and "net" leases; the creditworthiness and quality of Tenant; leasing commissions; and any other relevant term or condition in making such evaluation, all as reasonably determined by Landlord. In no event, however (and notwithstanding any provision to the contrary in SECTION 2.5.3 below), shall the Fair Market Rent be less than an amount equal to the average rate of Base Rent in effect during the five (5) year period immediately preceding the expiration date of the then-applicable term (the "RENEWAL RENT FLOOR"). Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the 's determination of Prevailing Fair Market Rent to Arbitrationfor the Renewal Term, in which event writing (the provisions of subparagraph "BASE RENT NOTICE") within sixty (b)(ii)(a60) of this Article 57 shall govern days after receiving the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option TermRenewal Notice. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Industrial Building Lease (Advanced Lighting Technologies Inc)

OPTION TO RENEW. (a) Subject to any existing rights, Tenant shall have the option to renew the term of this Lease for one (1) additional period of ------------------------------ option to renew ("Option to Renew") this Lease for five (5) years (the "Renewal Period"). If Tenant desires to exercise its Option Term”to Renew, Tenant shall give Landlord written notice ("Renewal Notice") thereof on or before January 20, 2000. During the thirty-(30) day period following the expiration Landlord's receipt of the initial lease term provided that this lease is in full force and effectRenewal Notice, the Tenant shall be in possession and occupying the Premises, Landlord and Tenant shall not be in default in use reasonable efforts to negotiate a mutually agreeable base rent ("Market Base Rent") for the performance or observance of any of the terms, conditions, provisions and/or covenants of the LeaseRenewal Period. All such rights of a renewal The Market Base Rent shall be exercised by delivery to Landlord negotiated in light of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable current terms for reviewing tenants for comparable space, including market rents, term of renewal and operating expense pass throughs and the leasetenant improvement allowance of $5.00 per rentable square foot which Landlord will provide Tenant as part of its renewal. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after of agreement by the parties on the Market Base Rent and other terms of the renewal, Landlord shall deliver to Tenant an amendment to this Lease extending this Lease on such terms. Such amendment shall not contain any further option to renew. Tenant shall execute and deliver the amendment to Landlord within ten (10) business days following receipt of Tenant’s notice exercising its such amendment. The foregoing option and rights are subject to extend the term there having been no Event of Default which has not been cured under this Lease, Landlord shall notify are personal to the original Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentexecuting the Lease, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenantassigned, and shall be available to and exercisable by the Tenant only when the original Tenant is in actual possession and physical occupancy of the entire Leased Premises. Time is of the essence in the exercise of Tenant's Option to Renew. Should Tenant fail to exercise such option, execute and deliver any required documents, or perform any of its required obligations under this section, or should the parties be unable to agree on Market Base Rent payable by for the Renewal Period, within the time periods set forth above, then this Option to Renew and any other rights of Tenant to Landlord during under the first year Lease in the nature of options, shall be null and void, and the Lease shall terminate at the end of the then applicable Option Lease Term. The option to renew shall include annual rent increases based upon the CPI, not to exceed 3% per annum compounded. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Keith Companies Inc)

OPTION TO RENEW. (a) Tenant shall have the option to renew the term of this Lease upon the same terms and conditions set forth in this Lease (other than the monthly base rent) for one an additional thirty-six (36) month period beginning January 1) additional period , 2005 by notifying Landlord of five (5) years (the “Option Term”) following the expiration of the initial lease term its intention to renew between September 30, 2003 and December 31, 2003, provided that this lease Tenant is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance beyond any applicable periods of notice and cure of any of the terms, conditions, provisions and/or covenants and conditions of the LeaseLease at the time Tenant gives the required notice or anytime thereafter up to, and including, the commencement date of the renewal term. All such rights of a The rental rate for the renewal period shall be exercised by delivery to Landlord 95% of written notice of Tenant’s intention to renew the term at least nine (9) months Market Rate, but not more in no event less than twelve (12) months the rental rate in effect immediately prior to the expiration commencement date of the renewal term. Market Rate shall be defined as rental rates for suburban Atlanta Class A, high-rise office buildings of similar type and quality to the Galleria prevalent at December 31, 2003. If Landlord and Tenant are unable to agree on the Market Rate on or before March 31, 2004, then applicable term the determination of the leaseMarket Rate shall be submitted to arbitration in accordance with the Real Estate Valuation Arbitration Rules of the American Arbitration Association, as amended and in effect on such date (hereinafter called the “Rules”), and the determination of the “Tribunal” (as hereinafter defined in the paragraph) shall be final and binding on Landlord and Tenant. The Option Term parties hereby agree that the Real Estate Valuation Arbitration Tribunal (hereinafter called the “Tribunal”) to be appointed pursuant to the Rules shall consist of three “qualified arbitrators”, a qualified arbitrator being defined as an arbitrator certified by the American Arbitration Association with at least ten (10) years of experience in commercial real estate valuation issues with respect to Class “A” office buildings, to be appointed in the following manner: (A) each of the same terms, covenants and conditions as parties hereto shall have the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space right to appoint one arbitrator within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for notice given of intent to arbitrate (the year of “Demand”, as defined in the then applicable Option Term; providedRules), however, that provided if Tenant does not elect either party fails to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during appoint an arbitrator within such fifteen (15) day period, then the Landlord’s estimate American Arbitration Association shall appoint a neutral arbitrator for such party in accordance with the Rules; (B) the two arbitrators so chosen by the respective parties shall then select the third arbitrator within fifteen (15) days of Prevailing the appointment of the last party-appointed arbitrator; and (C) if the two party-appointed arbitrators are unable to agree on the appointment of the third arbitrator or fail to make said appointment within such fifteen (15) day period, then the American Arbitration Association shall appoint a neutral arbitrator in accordance with the Rules. The determination of the Market Rent Rate by the Tribunal pursuant to the Rules shall be deemed to be agreed to by Tenant, the Market Rate for purposes of this Lease and shall be the Base Rent payable by Tenant to binding on Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Tenant. Landlord and Tenant each acting prudently, knowledgeable, shall share equally any costs and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of expenses relating to such space beginning on the commencement date of the lease of the Premises under conditions whereby:arbitration.

Appears in 1 contract

Sources: Office Lease Agreement (Ws Financing Corp)

OPTION TO RENEW. (a) Provided that Tenant is not then in default under this Lease beyond the applicable period for notice and cure, Tenant shall have the option right to renew extend the term of this Lease Term for one two (12) additional period periods of five (5) years each (the each a Option Renewal Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery upon giving written notice to Landlord of written notice its exercise of Tenant’s intention to renew the term at least nine (9) months but such extension not more less than twelve (12) months prior to the expiration of the then applicable term of the leasecurrent Term. The Option Term shall be of the same terms, covenants and conditions as the original lease except Monthly Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year Lease Year of the first Renewal Term shall be equal to the then applicable Option Term. (i) Definition: As used hereincurrent “Fair Market Rental”, as hereinafter determined, for premises comparable to the Premises. Notwithstanding the foregoing, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation Monthly Base Rent for such first Lease Year of the lease first Renewal Term shall not exceed One Hundred and Five Percent (105%) of such space beginning the Monthly Base Rent for the current Lease Year. Each subsequent Lease Year during the respective Renewal Term shall also be increased by an escalation on each anniversary of the commencement date of the lease Renewal Term based on the Fair Market Rental escalation as determined herein; notwithstanding the foregoing, such escalation shall not exceed three percent (3%) annually. Subject to the above, within thirty (30) days after Tenant’s delivery of written notice exercising such extension, Landlord shall provide Tenant with Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term based on Landlord’s reasonable determination of the Fair Market Rental for the Premises under conditions whereby:based on the then existing market rental rates for other buildings which are substantially similar to the Building in geographic location, use, size, type, age, and amenities and services provided together with the applicable annual escalation. Tenant shall then have fifteen (15) days to provide Landlord written notice that it either (i) accepts Landlord’s determination of the Monthly Base Rent for first Lease Year of the respective Renewal Term, or (ii) rejects Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term and desires determination of Fair Market Rental based on the following appraisal procedure. If Tenant does not provide a written acceptance or rejection within such fifteen (15) days period, then Tenant shall be deemed to have rejected Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term and to desire determination of the Fair Market Rental based on the following appraisal procedure. If ▇▇▇▇▇▇ rejects or is deemed to have rejected Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term, then Landlord and Tenant agree that Fair Market Rental, for purposes of calculating the Monthly Base Rent of the Fair Market Rental, for the first Lease Year of the respective Renewal Term shall be determined as follows: Landlord and Tenant shall each appoint an appraiser within twenty (20) days following Tenant’s written notice rejecting, or deemed rejection of, ▇▇▇▇▇▇▇▇’s determination of Monthly Base Rent and the two (2) appraisers so appointed shall attempt to agree upon the Fair Market Rental for the Premises. If within thirty (30) days after the date of appointment of the last appraiser appointed hereunder the two (2) appraisers cannot agree upon the Fair Market Rental, then within thirty (30) days after the expiration of such 30 day period both appraisers shall submit their written opinion of such Fair Market Rental to Landlord and Tenant, and the two (2) appraisers shall then select a third appraiser. The third (3rd) appraiser shall submit his or her opinion as to Fair Market Rental for the Premises to both Landlord and Tenant within thirty (30) days following his or her appointment. If the rental as set by the third (3rd) appraiser is an amount between the rental as set by the two other appraisers, then the 3rd appraisers opinion shall be final and binding on the parties. If the rental as set by the 3rd appraiser is lower than the lower rental as set by the other two (2) appraisers or higher the higher rental as set by the other two (2) appraisers, then the rental as set by the third (3rd) appraiser shall be disregarded totally, and the applicable rental shall be the amount computed by averaging the rental as set by the first two (2) appraisers. If the two (2) appraisers fail to agree upon the third (3rd) appraiser within five (5) days after the expiration of the 30 day period they have to agree upon the rental, then the third (3rd) appraiser shall be selected by the highest ranking officer of the American Arbitration Association’s office in Norfolk, Virginia. All appraisals shall be expressed as rentable per square foot. Each appraiser shall have an M.A.I. and/or S.R.P.A. designation, be licensed in the Commonwealth of Virginia (if Virginia licenses appraisers), be disinterested and experienced with the appraisal of commercial rental property in the Downtown Norfolk, Virginia area. Each party shall bear the fees and expenses of the appraiser appointed by it, and the parties shall equally share the fees and expenses of the third (3rd) appraiser. Upon determination of the Fair Market Rental using the above appraisal procedure, and consistent with the provisions of this paragraph, the Monthly Base Rent for the first Lease Year of the respective Renewal Term shall be such Fair Market Rental, with Monthly Base Rent for each subsequent Lease Year during each Renewal Term to be increased on each anniversary of the commencement date of the Renewal Term by the escalation determined as part of the Fair Market Rental determination and subject to the limitations herein.

Appears in 1 contract

Sources: Office Building Lease

OPTION TO RENEW. (a) Tenant Section 31.1 Provided that TENANT is not in default under the terms of this lease, TENANT shall have the option to renew this lease for two five year periods. The first option terms shall be for the period of the 1st day of March 2004 through the 28th day of February 2009. The second option term shall be for the period of the 1st day of March 2009 through the 28th day of February 2014. The Annual Basic Rent for the option period(s) shall be 90% of fair market value (as detailed below). During the first option period, the monthly rent shall not be less nor more than 10% more than the rent paid in the last month of the initial term. During the second option period, the monthly rent shall not be less than nor more than 10% more than the last month's rent of the first option term. Tenant shall notify the Landlord of its intention to exercise its option(s) 12 months prior to the end of the term of this Lease lease. To determine fair market value for one (1the option period(s), LANDLORD and TENANT shall immediately meet to determine the then current market value rent for the Demised Premises for the option period(s). In the event that LANDLORD and TENANT are unable to agree on the market value rent for the option period(s) additional period within ninety days of five (5) years (the “Option Term”) following date hereinabove set forth then within ten days of the expiration of the initial lease term provided that this lease is in full force said ninety day period, LANDLORD and effect, the Tenant TENANT shall be in possession and occupying the Premises, and Tenant shall not be in default each select an M.A.I. real estate appraiser familiar with commercial leasing in the performance or observance area and notify the other of any of their selection and the terms, conditions, provisions and/or covenants of said two appraisers shall meet within ten days after their selection to determine the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Market Value Rent for the Option Term ensuing five year term. In the event that the two appraisers are unable to agree on the Market Value Rent, they shall pick a third appraiser whose determination of the Market Value Rent shall be conclusive upon the parties. In the event that the two appraisers are unable to select a third appraiser, the question of determining Market Value Rent shall be submitted to the AMERICAN ARBITRATION ASSOCIATION in Nassau County for decision under their rules then Prevailing Market Rent of comparable space within obtaining. The term "market value rent" for the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term purposes of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent section shall be deemed to be agreed mean the fair market rental rate for like space similarly situated in first class office buildings reasonably proximate to the Building in the same geographical area as of the commencement of the five year period for which the Basic Annual Rent is being determined, taking into consideration the escalations and the base periods thereof as provided for in this lease. Notwithstanding the above, TENANT shall have the right to recant its notice to the LANDLORD to exercise the option within said ninety day period. Any monies expended by Tenantthe LANDLORD, and with prior written approval of the TENANT, during such ninety day period shall be the Base Rent payable reimbursed by Tenant to Landlord during the first year of the then applicable Option TermTENANT. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Delta Financial Corp)

OPTION TO RENEW. (a) During the Extended Term (excluding any holdover period), so long as, both as of the exercise date and as of the first day of the Renewal Term (as hereinafter defined) the Lease, as amended, is in full force and effect and no default has occurred and continued beyond the expiration of any applicable notice and cure period and no facts or circumstances then exist which, with the giving of notice or the passage of time, or both, would constitute a default, Landlord hereby grants to Tenant shall have the option to renew the term of this Lease for one (1) additional option to further extend the Extended Term with respect to all but not any lesser portion of the Premises for a period of five (5) years (the “Option Term”) following beginning immediately upon the expiration of the initial lease term provided that this lease is in full force and effectExtended Term ("Renewal Term"), the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall option to be exercised by delivery to Landlord of Tenant giving written notice of Tenant’s intention its exercise to renew Landlord in the term manner provided in the Lease at least nine two hundred seventy (9270) months days prior, but not more than twelve three hundred sixty (12360) months prior days prior, to the expiration of the then applicable term Extended Term. Time is of the lease. The Option Term shall be of essence with respect to the same terms, covenants and conditions as the original lease except foregoing. (b) Base Rent for the Option Renewal Term shall be the then prevailing market rate (the "Prevailing Market Rent Rate") calculated on a per square foot basis for comparable renewal leases during the Renewal Term covering the Building and buildings comparable to the Building (as adjusted for any variances between such buildings and the Building and as adjusted for other relevant factors, including, but not limited to, size of comparable space, location of space within the Gaithersburgbuilding, Maryland signage rights, age, location and quality of building, length of term, credit standing of tenant, tenant improvement contributions, leasing commissions and rent concessions) located in the same market area. area as the Building (ihereinafter referred to as the "Market Area") Within fifteen to which the Base Year Amount shall be added. Landlord shall, within twenty (1520) business days after the receipt of Tenant’s 's notice exercising of exercise, notify Tenant in writing of Landlord's reasonable determination of the Prevailing Market Rate for the Premises for the Renewal Term. Thereafter, Tenant shall have ten (10) days from its option receipt of Landlord's notice to extend notify Landlord in writing that Tenant does not agree with Landlord's determination of the term Prevailing Market Rate. If Tenant fails to object as aforesaid, Landlord's determination shall be deemed to be the Prevailing Market Rate for the Renewal Term. Upon receipt of this LeaseTenant's objection, Landlord and Tenant shall meet for a period of ten (10) additional days (the "Negotiation Period") to negotiate the Prevailing Market Rate, with each acting in good faith. If such negotiations are successful, the rate so negotiated by the parties will be deemed to be the Prevailing Market Rate for the Renewal Term. If such negotiations are not successful, the Prevailing Market Rate will be determined in accordance with the following arbitration procedure: Within five (5) days after the expiration of the Negotiation Period, Tenant shall notify Landlord of Tenant's selection of a real estate broker who shall act on Tenant's behalf in determining the Prevailing Market Rate. After Tenant delivers its notice to Landlord as set forth above, Landlord shall notify Tenant of Landlord’s estimate 's selection of a real estate broker who shall act on Landlord behalf in determining the Prevailing Market RentRate. Within twenty (20) days after the selection of Tenant's and Landlord's broker, the two (2) brokers shall render a joint written determination of the Prevailing Market Rate, which joint determination shall be final, conclusive and binding for the Renewal Term. If Tenant disagrees with Landlord’s estimate the two (2) brokers are unable to agree upon a joint written determination within said twenty (20) day period, the two brokers shall select a third broker within such twenty (20) day period and shall each submit a determination of the Prevailing Market RentRate to such third broker. In the event the two brokers cannot agree on a third, Landlord or Tenant may rescind such renewal notice thereby terminating its right request that the local chapter of renewal provided by the Board of Realtors appoint a party to act as the third broker. Within ten (10) days after the appointment of the third broker, the third broker shall render a written determination of the Prevailing Market Rate, which must be either the Landlord's broker's determination as submitted or the Tenant's broker's determination as submitted, but no other amount and no compromise between the two, with the third broker's determination being final, conclusive and binding on both parties. All brokers selected or appointed in accordance with this lease, subparagraph shall have at least ten (10) years prior experience in the commercial office leasing market of the Market Area. If either Landlord or Tenant fails or refuses to select a broker, the other broker shall notify alone determine the Prevailing Market Rate. Landlord and Tenant agree that it has elected to submit they shall be bound by the determination of Prevailing Market Rent Rate pursuant to Arbitration, in which event this paragraph. Landlord shall bear the provisions fee and expenses of subparagraph (b)(ii)(a) its broker; Tenant shall bear the fee and expenses of this Article 57 its broker; and Landlord and Tenant shall govern share equally the selection of arbitrators fee and the establishment expenses of the Prevailing Market Rent payable third broker, if any. (c) Except for the year Base Rent, which shall be determined as set forth in subparagraph B above, leasing of the then applicable Option TermPremises by Tenant for the Renewal Term shall be subject to all of the same terms and conditions set forth in the Lease, as amended; provided, however, that if Tenant does not elect any construction provisions, improvement allowances, rent abatements or other concessions applicable to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord Premises during the first year of Extended Term shall not be applicable during the then applicable Option Term. Renewal Term (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant unless otherwise mutually acceptable to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the both Landlord and Tenant in the sole discretion of each acting prudentlyat the time Tenant exercises its option to extend). Landlord and Tenant shall enter into an amendment to the Lease to evidence Tenant's exercise of this extension option. If the Lease is guaranteed now or at any time in the future, knowledgeableTenant simultaneously shall deliver to Landlord an original, signed reaffirmation of each guarantor's guaranty, in form and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:substance acceptable to Landlord.

Appears in 1 contract

Sources: Lease Agreement (Emageon Inc)

OPTION TO RENEW. (a) 41.1 Tenant shall have the option right to renew its lease for the term of this Lease Demised Premises for one (1) additional ten (10) year period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to providing Landlord of with written notice of Tenant’s intention to renew the term at least nine (9) months but not more less than twelve (12) calendar months prior to the expiration Termination Date, provided and on the condition that the Tenant delivers the written consent of the then applicable Guarantor to the extension of the Term of the Lease with the notice of Tenant’s exercise of the Option to Renew. TIME FOR NOTICE OF EXERCISE OF TENANT’S OPTION IS HEREBY DECLARED TO BE OF THE ESSENCE, and a failure to provide timely notice shall operate as an irrevocable waiver of all rights under this Section 41.1. 41.2 The initial base rent for the first year of renewal option period shall be the greater of: (i) the Fixed Rent set forth on Schedule B-1 annexed hereto or made a part hereof; or (ii) ninety-five percent (95%) of the then-prevailing Fair Market Rental Rate (“FMRR”), and such amount shall increase by 3% each year. The FMRR shall take into account all relevant factors, including without limitation, the financial strength of the Tenant, and comparable leases (on the basis of factors such as, but not limited to, size and location of space and the term of the lease), if any, recently executed for space in other buildings in the Pertinent Market which are comparable to the Demised Premises in reputation, quality, age, size, location and quality of services provided, and the fact that landlord will not be required to provide any allowances or free rent or to pay a brokerage commission. The Option Term For the purposed hereof, “Pertinent Market” shall mean within ten (10) miles of the location of the Demised Premises. If Landlord and Tenant do not agree on the FMRR within thirty (30) days of Tenant’s notice that it has exercised its option, the FMRR shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term determined by arbitration before a single arbitrator who shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within a real estate broker who is a licensed appraiser in New Jersey with at least fifteen (15) business years of relevant prior experience and who is actively involved in commercial real estate transactions within the Pertinent Market. The arbitrator shall be selected by mutual agreement of the parties within twenty (20) days after receipt the expiration of Tenant’s notice exercising its option to extend such 30-day negotiation period, or, if the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern parties cannot agree on the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day periodan arbitrator, then the Landlord’s estimate of Prevailing Market Rent arbitrator shall be deemed to be agreed to assigned by Tenant, and the Assignment Judge of the Superior Court of New Jersey in Bergen County. The arbitration shall be conducted in accordance with the Base Rent payable by Tenant to Landlord during Commercial Arbitration, expedited procedures then utilized and in effect with the first year of American Arbitration Association (AAA), although it shall not be conducted before the then applicable Option TermAAA. The Arbitrator shall render a written decision within not more than forty-five (45) days after submission. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (G Iii Apparel Group LTD /De/)

OPTION TO RENEW. (aa. Subject to the provisions of Section 26 of the Lease, and provided that Tenant is not in default beyond any applicable cure period at the time of Tenant's exercise of the Option or, provided Tenant is not in default under Section 13.1(a) of the Lease beyond any applicable cure period at the commencement of the Option term, Tenant shall have the option to renew the term of this Lease for one two (12) additional period of five (5) years year options to renew this Lease. Tenant shall provide to Landlord on a date which is prior to the date that each Option period would commence (the “Option Term”if exercised) following the expiration by at least two hundred seventy (270) days and not more than three hundred sixty (360) days, a written notice of the initial lease term provided that this lease is in full force and effectexercise of the Option to extend the Lease for the additional option term, time being of the Tenant essence. Such notice shall be given in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants accordance with Section 40 of the Lease. All such rights If notification of a renewal the exercise of either Option is not so given and received, all options granted hereunder shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior automatically expire. Base Rent applicable to the expiration of the then applicable term of the lease. The Premises for each Option Term shall be equal to the Fair Market Rental, as determined in accordance with subparagraph (c) below. All other terms and conditions of the same terms, covenants and conditions as Lease shall remain the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areasame. (i) Within b. If the Tenant exercises the Option, the Landlord shall determine the Fair Market Rental by using its good faith judgment. Landlord shall provide Tenant with written notice of such amount within fifteen (15) business days after receipt of Tenant’s notice exercising Tenant exercises its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market RentOption. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such have fifteen (15) day perioddays ("Tenant's Review Period") after receipt of Landlord's notice of the new base rent within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall attempt to agree upon such Fair Market Rental, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following Tenant's Review Period ("Outside Agreement Date") then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the State of New Jersey and who specializes in the field of commercial office space leasing in the Saddle River, New Jersey market, has at least ten (10) years of experience and is recognized within the field as being reputable and ethical. If one party does not timely appoint a broker, then the Landlord’s estimate broker appointed by the other party shall promptly appoint a broker for such party. Such two individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on Fair Market Rental, then the two individuals shall, within five (5) days, render separate written reports of Prevailing Market Rent their determinations and together appoint a third similarly qualified individual having the qualifications described above. If the two brokers are unable to agree upon a third broker, the third broker shall be deemed appointed by the President of the Bergen County Board of Realtors. In the event the Add-4 Bergen County Board of Realtors is no longer in existence, the third broker shall be appointed by the President of its successor organization. If no successor organization is in existence, the third broker shall be appointed by the Chief Judge of the Circuit Court of Bergen County, New Jersey. The third individual shall within ten (10) days after his or her appointment make a determination of such Fair Market Rental. The third individual shall determine which of the determinations of the first two individuals is closest to his own and the determination that is closest shall be agreed to by Tenantfinal and binding upon the parties, and shall such determination may be the Base Rent payable by Tenant to Landlord during the first year enforced in any court of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the competent jurisdiction. Landlord and Tenant shall each acting prudentlybear the cost of its broker and shall share equally the cost of the third broker. Upon determination of the base rent payable pursuant to this Section, knowledgeable, and assuming the parties shall promptly execute an amendment to this Lease stating the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:so determined.

Appears in 1 contract

Sources: Standard Office Lease (Pdi Inc)

OPTION TO RENEW. (a) Provided that the Tenant shall have the option to renew the term of this Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration is then in possession of the initial lease term provided that this lease is in full force premises and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of under any of the termsterms of its Lease, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery Landlord grants to Landlord of written notice of Tenant’s intention the Tenant two (2) five year options to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be this Lease, upon all of the same terms, covenants terms and conditions except as to base rental, the original lease except Base Rent for first option commencing on the Option Term shall be first day of May 2010 and terminating on the then Prevailing Market Rent 30th day of comparable space within the GaithersburgApril, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators 2015 and the establishment second option commencing on the first day of May 2015 and terminating on the Prevailing Market Rent payable 30th day of April 2020. The base rental for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. First Renewal Term shall be the greater of: (ia) Definition: As used herein95% of the fair market rental value of the Premises as of May 1, 2009 for comparable buildings in the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at area in which the Premises would Building is located, leased on terms comparable to this lease as of May 1, 2009 or (b) the base rental in effect on the last month of the original Lease Term. Such fair market rental value shall be leased in a comparable determined by written agreement between Landlord and open market, under all conditions requisite to a fair lease, the Tenant. If Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation are unable to agree within 30 days after Tenant's exercise of the lease option, Landlord and Tenant shall each appoint a certified commercial real estate appraiser with a minimum of such space beginning ten (10) years experience. The two appraisers shall jointly agree on the commencement date fair market rental value for the Premises within 30 days. If they are unable to agree, they shall jointly select a third appraiser who meets the qualifications described above. A decision of a majority of the lease appraisers shall be binding on the parties. Each party shall bear the cost of its own appraiser and they shall share the cost of the third appraiser, if necessary. The base rental for the first year of the second option term shall be 100% of the fair market rental value of the Premises under conditions whereby:as of May 1, 2014 but in no event less than the base rental paid for the last year of the first option term and shall be determined in the same manner as set forth herein above. The base rental for the 12th through 15th years and 17th through 20th years shall be determined by cost of living increases as set forth in paragraph 46, Rental Schedule Renewal Term. Said right shall be exercised if at all by the Tenant delivering to the Landlord in writing its exercise of said right on or before May 1, 2009 and May 1, 2014, for the first and second renewal terms, respectively. Failure to exercise the right in writing in the above manner prior to May 1, 2009, and May 1, 2014 shall cause the right to terminate without further act by either party. The parties covenant and agree that time shall be of the essence in the exercise of this right.

Appears in 1 contract

Sources: Lease Agreement (Priceline Com Inc)

OPTION TO RENEW. (a) Provided Tenant is not in default of the Lease from the time of exercising the right contained herein to the commencement of any renewal thereof, Tenant shall have the option to renew the term of this Lease (“Renewal Option”) for one (1) additional period of five sixty (560) years month term (the Option TermRenewal Term II”) following commencing upon the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant then current Renewal Term. The Base Rent rate for Renewal Term II shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any 95% of the terms, conditions, provisions and/or covenants of then Fair Market Terms (as hereinafter defined) at the Leasetime the Renewal Option is exercised. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention election to renew the term at least Lease shall be made in writing to Landlord not more than nine (9) months but not more or less than twelve six (126) months prior to the expiration of the then applicable term of the leasecurrent Renewal Term. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt Tenant’s written notice of its intent to exercise its Renewal Option, Landlord shall provide Tenant with its good faith determination of the then Fair Market Terms. Within fifteen (15) days after receipt of TenantLandlord’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentsuch determination, Tenant may rescind such renewal shall provide Landlord with written notice thereby terminating of its right acceptance or rejection of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Fair Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Terms. If Landlord and Tenant are unable to agree on the Fair Market Terms within thirty (30) days after negotiations commence, then each acting prudentlyparty shall appoint a licensed Texas real estate broker to determine the Fair Market Terms. If such two (2) brokers are unable to agree on the Fair Market Terms (if their stated values are within five percent (5%) of each other, knowledgeablethe values will be average and such average will be the Fair Market Terms), and assuming if the rent is not affected by undue stimulus. Implicit in this definition is the consummation difference of the lease of such space beginning two stated rates is greater than 5%, then they will jointly appoint a third (3rd) broker. The value determined by the third (3rd) broker will be binding on each party, unless it is higher than the commencement date higher of the lease first two (2) brokers or lower than the lower of the Premises under conditions whereby:first two (2) brokers, in either case the average of the opinions of the two (2) brokers rates which differ by the least amount will prevail. Tenant and Landlord shall pay their respective brokers and Tenant and Landlord will share the third broker’s cost.

Appears in 1 contract

Sources: Lease Agreement (Georesources Inc)

OPTION TO RENEW. (a) Tenant shall have is hereby given the option to renew the term of this Lease for two (2) periods of three (3) years, or one (1) additional period of either; three (3) years, five (5) years years, or seven (the “Option Term”7) following the expiration of the initial lease term years, provided that this lease is in full force and effect, the Tenant there shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance no Event of Default under any of the terms, conditions, provisions and/or covenants terms of this Lease either at the time of the Leasegiving of any such notice or at the time of commencement of any renewal. All such rights of a renewal Tenant shall be exercised by delivery give notice in writing to the Landlord of written notice its exercise of Tenant’s intention to renew the term such option at least nine six (9) months but not more than twelve (126) months prior to the expiration termination of the then applicable term of the leaseInitial Term. The Option Term Such renewal shall be of based on the same terms, covenants and conditions as are contained in this Lease except that the original lease except Base Basic Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the renewal period shall be at the then applicable Option Term. current market rate (i) Definition: As used hereinfor comparable buildings in the general vicinity of the Building), as agreed to by the term “Prevailing Market Rent” means parties hereto, but in no event less then the most probable rent (as determined pursuant previous year's rate multiplied by 104%. In the event the parties can not agree to the appraisal procedure hereinafter current market rate as set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, forth above then the Landlord and Tenant shall each acting prudentlyselect a licensed commercial real estate broker doing business in Northern Virginia (the "Selected Brokers"), knowledgeablewhereupon the Selected Brokers shall select a third similarly qualified broker, who shall each then provide to the parties their expert opinion as to the then current market rate and the average of the three opinions shall be the current market rate for the purposes of this paragraph. In establishing the Basic Rent for the renewal term, the parties or the brokers who determine the Basic Rent shall consider and take into account Tenant's continuing obligation to pay Additional Charges for Operating Expense Increases over the Operating Expense Base, unless the parties have agreed in writing that Tenant's obligation to pay Additional Charges for Operating Expense Increases over the Operating Expense Base shall be terminated and the Operating Expense Base shall be re-set to be the sum of the actual Operating Expenses during the year in which such renewal term commences. Notwithstanding the foregoing, in no event shall the Basic Rent for the first year of the renewal period be less then the current rate at the end of the Initial Term multiplied by 104%. In the event the Tenant elects to renew, the Landlord shall provide a one time allowance for the re-painting and re-carpeting of the space with specifications matching the original installations which can be utilized at any one renewal term of at least five (%) years commencement. Person: A natural person, a partnership, a limited liability company, a corporation, and assuming the rent is not affected by undue stimulusany other form of business or legal association or entity. Implicit in this definition is the consummation Project General Contractor: Signet Construction Company, Inc. of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Fairfax, Virginia.

Appears in 1 contract

Sources: Lease Agreement (Comstock Homebuilding Companies, Inc.)

OPTION TO RENEW. (a) Provided that Tenant is not then in default under this Lease beyond the applicable period for notice and cure, Tenant shall have the option right to renew extend the term of this Lease Term for one two (12) additional period periods of five (5) years each (the each a Option Renewal Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery upon giving written notice to Landlord of written notice its exercise of Tenant’s intention to renew the term at least nine (9) months but such extension not more less than twelve (12) months prior to the expiration of the then applicable term of the leasecurrent Term. The Option Term shall be of the same terms, covenants and conditions as the original lease except Monthly Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year Lease Year of the first Renewal Term shall be equal to the then applicable Option Term. (i) Definition: As used hereincurrent “Fair Market Rental”, as hereinafter determined, for premises comparable to the Premises. Notwithstanding the foregoing, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation Monthly Base Rent for such first Lease Year of the lease first Renewal Term shall not exceed One Hundred and Five Percent (105%) of such space beginning the Monthly Base Rent for the current Lease Year. Each subsequent Lease Year during the respective Renewal Term shall also be increased by an escalation on each anniversary of the commencement date of the lease Renewal Term based on the Fair Market Rental escalation as determined herein; notwithstanding the foregoing, such escalation shall not exceed three percent (3%) annually. Subject to the above, within thirty (30) days after Tenant’s delivery of written notice exercising such extension, Landlord shall provide Tenant with Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term based on Landlord’s reasonable determination of the Fair Market Rental for the Premises under conditions whereby:based on the then existing market rental rates for other buildings which are substantially similar to the Building in geographic location, use, size, type, age, and amenities and services provided together with the applicable annual escalation. Tenant shall then have fifteen (15) days to provide Landlord written notice that it either (i) accepts Landlord’s determination of the Monthly Base Rent for first Lease Year of the respective Renewal Term, or (ii) rejects Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term and desires determination of Fair Market Rental based on the following appraisal procedure. If Tenant does not provide a written acceptance or rejection within such fifteen (15) days period, then Tenant shall be deemed to have rejected Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term and to desire determination of the Fair Market Rental based on the following appraisal procedure. If Tenant rejects or is deemed to have rejected Landlord’s determination of the Monthly Base Rent for the first Lease Year of the respective Renewal Term, then Landlord and Tenant agree that Fair Market Rental, for purposes of calculating the Monthly Base Rent of the Fair Market Rental, for the first Lease Year of the respective Renewal Term shall be determined as follows: Landlord and Tenant shall each appoint an appraiser within twenty (20) days following Tenant’s written notice rejecting, or deemed rejection of, Landlord’s determination of Monthly Base Rent and the two (2) appraisers so appointed shall attempt to agree upon the Fair Market Rental for the Premises. If within thirty (30) days after the date of appointment of the last appraiser appointed hereunder the two (2) appraisers cannot agree upon the Fair Market Rental, then within thirty (30) days after the expiration of such 30 day period both appraisers shall submit their written opinion of such Fair Market Rental to Landlord and Tenant, and the two (2) appraisers shall then select a third appraiser. The third (3rd) appraiser shall submit his or her opinion as to Fair Market Rental for the Premises to both Landlord and Tenant within thirty (30) days following his or her appointment. If the rental as set by the third (3rd) appraiser is an amount between the rental as set by the two other appraisers, then the 3rd appraisers opinion shall be final and binding on the parties. If the rental as set by the 3rd appraiser is lower than the lower rental as set by the other two (2) appraisers or higher the higher rental as set by the other two (2) appraisers, then the rental as set by the third (3rd) appraiser shall be disregarded totally, and the applicable rental shall be the amount computed by averaging the rental as set by the first two (2) appraisers. If the two (2) appraisers fail to agree upon the third (3rd) appraiser within five (5) days after the expiration of the 30 day period they have to agree upon the rental, then the third (3rd) appraiser shall be selected by the highest ranking officer of the American Arbitration Association’s office in Norfolk, Virginia. All appraisals shall be expressed as rentable per square foot. Each appraiser shall have an M.A.I. and/or S.R.P.A. designation, be licensed in the Commonwealth of Virginia (if Virginia licenses appraisers), be disinterested and experienced with the appraisal of commercial rental property in the Downtown Norfolk, Virginia area. Each party shall bear the fees and expenses of the appraiser appointed by it, and the parties shall equally share the fees and expenses of the third (3rd) appraiser. Upon determination of the Fair Market Rental using the above appraisal procedure, and consistent with the provisions of this paragraph, the Monthly Base Rent for the first Lease Year of the respective Renewal Term shall be such Fair Market Rental, with Monthly Base Rent for each subsequent Lease Year during each Renewal Term to be increased on each anniversary of the commencement date of the Renewal Term by the escalation determined as part of the Fair Market Rental determination and subject to the limitations herein.

Appears in 1 contract

Sources: Office Building Lease

OPTION TO RENEW. (a) Tenant shall have two (2) consecutive options to extend the option to renew the term of this Lease Term for one (1) an additional period of five (5) years each. Tenant must give Notice of its intent to exercise an option to Landlord not less than nine (the “Option Term”9) following the months, nor more than one (1) year, prior to expiration of the initial lease term provided that this lease is then existing Term. The Lease shall continue in full force and effecteffect during the Term (as so extended), except the Tenant shall Base Rent will be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any adjusted for each five year extension of the terms, conditions, provisions and/or covenants Term and Landlord may increase the amount of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew Security Deposit as provided in paragraph 31 so that the term at least nine (9) months but not more than twelve (12) months prior to Security Deposit always equals the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except last month's Base Rent for the Option Term. Commencing no later than twenty (20) days after Tena▇▇'▇ ▇otice of intent to exercise an option to extend, the parties shall attempt to agree upon the amount of the Base Rent for the Premises for the applicable extension of the Term. The Base Rent for the extension of the Term shall be equal to ninety-five percent (95%) of the then Prevailing Market Rent of current market rental rates for comparable space in comparable Class A buildings in comparable locations in Bellevue, Redmond, Kirkland and Merc▇▇ ▇▇▇and. If the parties cannot agree on the Base Rent for the extension of the Term within sixty (60) days of the Gaithersburgdate Landlord receives Tenant's Notice of intent to exercise the option to extend, Maryland market area. then, at the election of either party, the Base Rent for the extension of the Term shall be established by an MAI appraiser jointly selected by the parties. The party who wishes to have the Base Rent determined for the extended term must so notify the other in writing and designate an MAI appraiser. Said designation must be received by the other party within thirty (i30) Within fifteen days of Tenant's notice of exercise of its option to extend, or Tenant's option will automatically terminate. If the parties are unable to agree upon the selection of such an appraiser, then they shall each select an MAI appraiser and the two so designated shall select a third. The Base Rent for the extension of the Term determined by the selected MAI appraiser or any two of the three MAI appraisers so chosen shall be binding on the parties and may not be appealed. If either party fails to notify the other of its appraiser within thirty (1530) business days after receipt written request to do so, the MAI appraiser selected by the other party shall make the determination of the Base Rent. Tenant’s notice exercising its 's right to exercise each option to extend the term Term is contingent upon Tenant's then being current in its payment of Rent and all other amounts due under this Lease, and otherwise being in compliance with all terms of the Lease (subject to any permitted cure periods), at the time Tenant gives its Notice of intent to exercise an option and on the first date of the newly extended Term. At the time that Landlord notifies Tenant of the proposed Base Rent for each extension of the Term, Landlord shall also notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment cost of the Prevailing Market covered parking stalls during the extension of the Term, and any dispute regarding the proposed parking fees shall be resolved in the same manner used to resolve a dispute over Base Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:extension

Appears in 1 contract

Sources: Office Lease (Interlinq Software Corp)

OPTION TO RENEW. (a) Provided that Tenant shall not be in default of any terms, provisions, conditions or covenants herein at the time of the exercise of the option set forth in this Article XXIV, and at the time said option shall take effect, and provided further that Tenant is substantially physically occupying the Leased Premises as so to enable Tenant to carry out its business at the time of the exercise of the option set forth in this Article XXIV, and at the time said option takes effect, Tenant shall have the option right to renew extend the term of this Lease for one (1) an additional period of five (5) years (commencing on the “Option Term”) date following the expiration termination of the initial lease term provided that this lease is in full force and effect, Term. Said option to extend the Tenant Term shall be in possession and occupying on the Premises, and Tenant shall not be in default in the performance or observance of any of the same terms, conditions, provisions and/or and covenants of as are set forth herein, with the Lease. All such rights of a renewal following exceptions: (a) The Minimum Annual Rent during the option period shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Fair Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing The term "Fair Market Rent" shall mean the Minimum Annual Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market (real estate taxes and operating expenses and other charges known as Additional Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(aare excluded) of this Article 57 shall govern the selection of arbitrators and the establishment per square foot of the Prevailing Market Rent payable for the year Premises as of the then applicable Option Term; provideddate the option period commences (Adjusted Minimum Annual Rent), however, that if Tenant does not elect to either rescind its renewal notice or to submit but in no event less than the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Minimum Annual Rent payable by Tenant immediately prior to the "Adjusted Minimum Annual Rent." More specifically, it is defined as the Minimum Annual Rent then being charged to tenants under any new leases being made in the building or in comparable office buildings located in the Goshen and Orange County office market, "the Area." In addition, in determining the Fair Market Rent, no consideration shall be given to the following facts: (1) that no vacancy or reletting expenses will be incurred by Landlord (including without limitation, advertising or promotional expenses; (2) that Landlord shall not perform work at its expense for the Tenant or pay Tenant any special work allowance; (3) that Landlord shall not grant any rent concession to Tenant; and (4) that Tenant will not incur the cost and expense of (a) having to locate other premises in which to move, (b) designing and constructing improvements to same, (c) relocating to said new premises, and (d) having its operations disrupted during the first year of the then applicable Option Termrelocation. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Arm Financial Group Inc)

OPTION TO RENEW. (a) Provided Tenant has not committed an uncured Event of Default, Tenant shall have the option to renew the term of this Lease and lease the Leased Premises for one two (12) additional period of five (5) years year Extended Terms (each of the Extended Terms are referred to as Option Extended Term”) upon the same terms and conditions set forth herein with the following exceptions: a. The Premises Rent to be paid by Tenant during the expiration Base Year of each Extended Term shall be Ninety Percent (90%) of the initial lease term provided that then prevailing market rent (“MARKET RENT”) for comparably improved office, industrial, manufacturing, warehouse space in the northwest C▇▇▇ County, Illinois market area. b. If Landlord and Tenant cannot agree on the Market Rent, either Landlord or Tenant can, by notice to the other, elect to use an appraisal procedure to determine the Market Rent. The party requesting the appraisal process shall set forth in their notice the name of an independent appraiser. The other party shall select the name of their independent appraiser within fifteen (15) days thereafter. The two independent appraisers shall then independently select a third independent appraiser. An independent appraiser is defined as any real estate firm or individual engaged in the business of leasing office space in the northwest C▇▇▇ County area or an M.A.I. real estate appraiser doing business in the northern Illinois area, which firm or person has not, within six (6) months previous thereto, had any business dealings with the Landlord nor with the Tenant or its employees. The two appraisers selected by Landlord and Tenant shall each be instructed to determine the then current Market Rent for comparable office space in the northwest C▇▇▇ County market area taking into consideration the then existing improvements, age of the building and equipment and the amenities of Williamsburg Village and immediately surrounding areas. The appraiser selected by the appraisers of Landlord and Tenant shall then designate which of the two appraisals is the most accurate reflection of Market Rent and Landlord and Tenant shall be bound to accept said determination. The cost of all the three appraisers shall be divided equally between Landlord and Tenant. c. To exercise this lease is renewal option, Tenant must give Landlord written notice at least two hundred and ten (210) days prior to the end of the Term, or the Extended Term, as the case may be. d. Upon the exercise of this renewal option, the word Term as defined in this Lease shall also apply to an Extended Term. e. All other terms and conditions of this Lease shall be in full force and effecteffect during the Extended Terms, including the Tenant shall be obligation to pay Rent Adjustments as described in possession and occupying the PremisesSection 4, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a Paragraphs (a) through (f). f. This renewal option shall be exercised only as to all the Leased Premises leased by delivery to Landlord of written notice of Tenant’s intention to renew Tenant at the term at least nine (9) months but not more than twelve (12) months prior to the expiration time of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areanotice. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease (Midwest Banc Holdings Inc)

OPTION TO RENEW. (a) If Tenant is not then in default of the terms, covenants and conditions herein contained, Tenant shall have the option to renew the term of this Lease for one (1) additional period term of five (5) years (years. In the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effectevent Tenant desires to exercise said option, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of give written notice of Tenant’s intention such fact to renew the term at least nine Landlord not less than one hundred eighty (9180) months but not more than twelve (12) months days prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the current term of this Lease. In the event of such exercise, this Lease shall be deemed to be extended for the additional period on the same terms and conditions; provided however, Landlord shall have the option of increasing basic monthly rental to the then existing market rate for similar space in the Boulder vicinity. Basic monthly rental shall increase three and a half percent (3.5%) each year commencing the second year of the additional term. Landlord shall notify Tenant of its determination of market rent no less than one hundred twenty (180) days prior to commencement of the option term. In the event Tenant objects to Landlord’s estimate determination, Tenant must notify Landlord in writing on or before the date that is sixty (150) days prior to the commencement of Prevailing Market Rentthe option term. Within the next thirty (30) days Landlord and Tenant shall each select a Colorado qualified real estate appraiser with not fewer than five (5) years’ of experience appraising property similar to the Premises in Boulder County, Colorado, to determine the fair market rental value of the Premises. In order to be included in this value determination process, such appraisers’ determinations must be delivered in writing to both Landlord and Tenant within thirty (30) days after their appointment. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind the valuations determined by such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph appraisers are within ten percent (b)(ii)(a10%) of this Article 57 shall govern one another, the selection of arbitrators and the establishment fair market rental value of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and Premises shall be the Base Rent payable average of their figures. If the valuations determined by Tenant to Landlord during the first year such appraisers are outside ten percent (10%) of the then applicable Option Term. (i) Definition: As used hereinone another, the term “Prevailing Market Rent” means two previously chosen appraisers shall jointly appoint a third appraiser with similar qualifications who shall independently determine the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease market rental value of the Premises under conditions whereby:within thirty (30) days after the appointment. The three fair market rental values shall be averaged and the resulting amount shall be the amount for that option term. The cost of all appraisals shall be paid equally by Landlord and Tenant.

Appears in 1 contract

Sources: Lease Agreement (AeroGrow International, Inc.)

OPTION TO RENEW. (a) Provided that no Event of Default exists at the time of exercise, Tenant shall have the option right to renew extend the term of this Lease Term for one (1) additional a single period of five (5) years (the “Option Term”) following years, beginning upon the expiration of the initial lease term provided that this lease is in full force and effectLease Term. If Tenant desires so to extend the Lease Term, the Tenant shall be give written notice of its intention at least two hundred seventy (270) calendar days in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any advance of the termsTermination Date to Landlord. The foregoing right shall exist so long as (i) no Event of Default exists at the time of exercise, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery (ii) Tenant timely and properly gives notice to Landlord of written notice of Tenant’s intention its Intention to renew extend the term at least nine Lease Term, and (9iii) months but not more than twelve (12) months prior to Tenant will use the expiration Premises for the uses specified in Article 8 hereof. Such extension of the then applicable term of the lease. The Option Lease Term shall will be of on the same terms, covenants and conditions as in this Lease, other than rent. Rent will be the original lease except Base Rent fair market fixed rent rate of the Premises, as reasonably determined by Landlord in relation to comparable (in quality, location and size) space located in the proximity of Camelback Road between 32nd and 40th Streets, taking into account length of the term, tenant improvement allowances, commissions to be paid, operating expense stops, etc. Landlord’s determination of such fair market monthly fixed rent rate will be delivered to Tenant not later than thirty (30) days after Landlord receives Tenant’s exercise notice. If Tenant disputes Landlord’s determination of the fair market fixed rent rate of the Premises for the Option Term shall be extension of the Lease Term, Tenant will deliver notice of such dispute. The parties will then Prevailing Market Rent of comparable space attempt in good faith to agree upon such fair market fixed rent rate. If Landlord and Tenant fail to agree within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt thereafter, they will within seven (7) days thereafter mutually appoint an appraiser to determine the fair market fixed rent rate. The appraiser must have at least five (5) years of Tenant’s notice exercising its option to extend full-time commercial appraisal experience, be a member of the term American Institute of this Lease, Real Estate Appraisers and not have worked for either Landlord shall notify or Tenant of Landlord’s estimate of Prevailing Market Rentin the past five (5) years. If Landlord and Tenant disagrees with Landlord’s estimate are unable to agree upon an appraiser within such seven (7) day period, the parties will within five (5) days thereafter apply to the president of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right the local Board of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern Realtors for the selection of arbitrators and an appraiser, who has not acted in any capacity of either party within the establishment prior two (2) years. Within seven (7) days of the Prevailing Market Rent payable appointment (either by agreement or neutral selection) of the appraiser, Landlord and Tenant will submit to the appraiser their respective determinations of the fair market fixed rent rate and any related information. Within twenty (20) days thereafter, the appraiser will review each party’s submittal (and such other information as the appraiser deems necessary) and will determine the fair market fixed rent rate to be used for the year extension of the then applicable Option Term; Lease term as the rent rate, provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit in no event shall the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then annual fixed rent be less than the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be fixed rent for the Base Rent payable by Tenant to Landlord during the first last year of the then applicable Option Term. Initial term hereof. Tenant will pay upon demand to Landlord one-half (i1/2) Definition: As used herein, of the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to cost of the appraisal procedure hereinafter set forth) at which and Landlord will then pay the Premises would be leased appraiser in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:full.

Appears in 1 contract

Sources: Assignment and Assumption of Lease (Poore Brothers Inc)

OPTION TO RENEW. (a) A. If Tenant shall have is not in default under this Lease at the time of the exercise of this option or at the commencement of the applicable Lease Term extension, Tenant is granted the option (the OPTION) to renew extend the term of this Lease Term for one (1) additional period extension term of five (5) years (commencing on the “Option Term”) following next day after the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised Lease Term by delivery to giving Landlord of written all extension notice of Tenant’s intention to renew the term at least nine (9) months months, but not more than twelve (12) months months, prior to the expiration of the then applicable term initial Lease Term. Tenant's lease of the lease. The Option Premises during the extended Lease Term shall will be of upon the same terms, covenants and conditions terms as in the original lease except Base Rent Lease for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburginitial Lease Term, Maryland market area. except that (i) Base Monthly Rent will adjust on the first day of the extended Lease Term to the Market Rate (defined below), and (ii) during the extended Lease Term Tenant will have no further options or rights to extend the Lease Term. B. Within thirty (30) days after Landlord receives Tenant's written notice of its exercise of the Option, Landlord shall deliver a notice to Tenant (the MARKET RATE NOTICE) specifying the Market Rate for the extended Lease Term, such to be based upon Landlord's reasonable and good-faith determination of rents being charged for comparable space in similar properties in the Freeport ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇, for terms commensurate with the extended Lease Term and for tenants similarly situated. Tenant shall have fifteen (15) business days (the EXAMINATION PERIOD) from its receipt of the Market Rate Notice to accept or reject Landlord's designation of the Market Rate. If Tenant accepts Landlord's designation of the Market Rate, the MARKET RATE will be as set forth in the Market Rate Notice, and Tenant's election to exercise the Option shall be irrevocable. If Tenant fails to accept in writing Landlord's designation of the Market Rate set forth in the Market Rate Notice during the Examination Period, Tenant shall be deemed to have rejected Landlord's designation of the Market Rate. If Tenant rejects or is deemed to have rejected Landlord's designation of the Market Rate and Landlord and Tenant cannot agree in writing on the Market Rate within the earlier to occur of (i) fifteen (15) days after receipt the date Landlord receives Tenant's written rejection of Tenant’s notice exercising Landlord's designation of the Market Rate set forth in the Market Rate Notice, or (ii) fifteen (15) days after the expiration of the Tenant is deemed to have rejected Landlord's designation of the Market Rate as set forth in the Market Rate Notice (in either of such instances, the NEGOTIATION PERIOD), then Tenant will be deemed to have elected to revoke its option exercise of the Option, and this Lease will expire in accordance with Paragraph 1 above. C. Tenant may not assign the Option to extend the term any assignee (except an Affiliate) or sublessee of this Lease. No sublessee and no assignee (except an Affiliate) may exercise the Option. D. If the Lease Term is extended under this ▇▇▇▇▇▇▇▇▇ ▇▇, ▇▇▇▇▇▇▇▇ shall prepare, and Landlord shall notify and Tenant of Landlord’s estimate of Prevailing will execute and deliver an amendment to the Lease extending the Lease Term within fifteen (15) days after the Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord Rate is determined but in no event later than the date that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Termextension term commences; provided, however, that if Tenant does the failure of the parties to enter into such an amendment will not elect to either rescind its renewal notice affect the validity of Tenant's exercise of the Option or to submit the determination obligations of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord parties during the first year of the then applicable Option extended Lease Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Commercial Lease Agreement (Mannatech Inc)

OPTION TO RENEW. (a) Tenant shall have the option right to renew extend the term of this Lease for all of the Premises for one (1) additional period of five (5) years year lease term (the “Option "Renewal Term”) "), upon the following conditions: a. Tenant is not in default beyond applicable notice and cure period either at the expiration time Tenant exercises such renewal option or at the commencement of the initial lease term provided that this lease is in full force and effectRenewal Term, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be nor has it been in default in beyond applicable notice and cure periods more than two (2) times within the performance immediately preceding two (2) year period; b. Tenant has not previously assigned the Lease or observance of any sublet more than 25% of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery Premises other than pursuant to an assignment or sublease not requiring Landlord’s consent; c. Tenant has delivered to Landlord of written notice of Tenant’s its intention to renew the term at least exercise this option not less than nine (9) months but not (nor more than twelve (12365 days) months prior to the expiration end of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original Lease Term; d. All lease except Base Rent terms for the Option Renewal Term shall be the same as in the Lease, except that the Annual Fixed Rent and Landlord concessions, if any, for the Renewal Term shall be at the then Prevailing Market Rent of current “fair market rental rate” for renewal transactions for similar space in comparable space within office buildings in the GaithersburgNorth Rockville, Maryland submarket (the “Market”), taking into consideration all then market area.concessions (including, without limitation, tenant allowances and free rent), as negotiated in good faith between willing landlords and tenants under no compulsion. The fair market rental rate shall be determined as follows: (i1) Within fifteen For a period of thirty (1530) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease's notice, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or and Tenant shall notify negotiate in good faith the fair market rental rate; (2) If the parties are unable to agree on the new fair market rental rate, then Landlord that it has elected and Tenant shall each select an appraiser in the person of an experienced real estate broker, each of whom must have at least ten (10) years commercial leasing experience in the Market, within forty-five (45) days after Landlord's receipt of Tenant's notice; (3) The two appraisers shall confer to submit see if they can agree on the determination of Prevailing fair market rental rate for space in the Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment as of the Prevailing Market time the applicable Renewal Term is to begin; and, if they reach agreement, the rate upon which they agree shall become the new Fixed Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Renewal Term.; (i4) Definition: As used hereinIf the two appraisers cannot reach agreement, then each shall designate the rate which he or she believes is the appropriate new fair market rental rate. Unless either Landlord agrees to the rate specified by Tenant's appraiser or vice versa, the term “Prevailing Market Rent” means two appraisers shall agree on a third appraiser, who shall have no less than the most probable rent minimum experience required of the initial two appraisers, within fifteen (as determined pursuant to 15) days after both appraisers have been designated; (5) The third appraiser shall determine which of the appraisal procedure hereinafter set forth) at two appraisals for the new fair market rental rate more accurately represents the new fair market rental rate which the Premises would be leased in a comparable and open market, under all conditions requisite to a third appraiser believes is the appropriate new fair leasemarket rental rate. Upon such determination, the new fair market rental rate selected by the third appraiser shall be used and be binding on Landlord and Tenant; (6) If Landlord or Tenant each acting prudently, knowledgeable, and assuming fails to comply with the rent is not affected by undue stimulus. Implicit time guidelines in this definition is section, then the consummation fair market rental rate submitted by the other shall automatically apply and be binding on Landlord and Tenant; and (7) Each party shall bear the expense of its own appraiser and shall divide equally the expense of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:third appraiser.

Appears in 1 contract

Sources: Lease Agreement (REGENXBIO Inc.)

OPTION TO RENEW. (a) 2.1 If the Tenant shall have be desirous of renewing this Lease for a renewed term of three 3 years ["the option Renewed Term") from the date of expiration of the original Term created by this Lease ("the Expiry Date") and shall not later than 6 months before the Expiry Date give to renew the term Landlord notice in writing of its desire and provided that there shall at that time and at the time of the Expiry Date be no outstanding or existing breach or non-observance or non-performance of any of the agreements, stipulations, terms or conditions herein contained and on the part of the Tenant to be observed and performed, the Landlord shall at the expense of the Tenant grant to the Tenant a renewal of this Lease for the Renewed Term from the Expiry Date at the current market rental for the Premises as at the Expiry Date to be determined in accordance with the provisions of Clause 2.2 of this Fourth Schedule, but otherwise subject to the same terms, covenants, conditions and provisions as are herein contained with the exception of the amount of the Air-conditioning Charges and Management Charges payable, the amount of the [Deposit/Cash Deposit and Bank Guarantee/Bank Guarantee], the rent free period and this Fourth Schedule, but incorporating in place of this Fourth Schedule a new Fourth Schedule containing an option for renewal for one further term of three (1) additional period of five (53) years (in the “Option Term”) terms same as the provisions of Clause 2.2 of this Fourth Schedule. 2.2 The following provisions shall apply in relation to the expiration determination of the initial lease term provided current market rental for the Premises at the Expiry Date:- (a) Current market rental shall subject to the provisions of sub-clause (d) of this Clause 2.2 mean the current market rental for the Premises without making any allowance to reflect or compensate the Tenant for the absence of any rent free period or contribution to fitting out works or other allowance which might then be the practice in open market lettings for a Landlord to make. Such a current market rental shall be that which would be payable after the expiry of any such rent free or concessionary rent period and after receipt of any such contribution or other allowances all of which shall be entirely disregarded in any calculation of current market rental. (b) If agreement is reached between the Landlord and the Tenant as to the rent to be payable throughout the Renewed Term ("the New Rent") such agreement shall be in writing signed by both parties and in such case the rent payable during the Renewed Term shall be the New Rent as so agreed. (c) If such an agreement has not been made two ( 2 ) months before the commencement of the Renewed Term either the Landlord or the Tenant may serve a notice upon the other calling for an independent surveyor and valuer ("▇▇▇ ▇▇▇▇▇▇▇▇") to be appointed to determine the New Rent. The Surveyor may be appointed by agreement between the Landlord and the Tenant or In default of such agreement within one month before the commencement of the Renewed Term the Surveyor may be appointed at the request of either of the parties by the President for the time being of the Hong Kong Institute of Surveyors. The Surveyor so appointed shall give a written decision with reasons and such decision as to what shall be the New Rent shall (subject to sub-clause (a) of this lease is Clause 2.2) be conclusive and binding on the parties hereto. (d) In determining the New Rent the Surveyor shall act as an expert and not as an arbitrator and shall take into account the open market rent for other whole floor office accommodation elsewhere in full force the Development and/or in similar office buildings in Hong Kong having attributes comparable to those of the Building obtainable at the time of commencement of the Renewed Term on the following assumptions that at that date :- (i) the Premises are fitted out and effectequipped and fit for immediate occupation and use complete with floor and wall coverings, false ceilings, raised floors, air-conditioning throughout and electrical reticulation and other landlord's finishes fixtures and equipment all of a standard commensurate with a high class modern office building in Hong Kong and that no work which has been carried out thereon by the Tenant or its predecessors in title has diminished the rental value of the Premises and that in case the Premises have been destroyed or damaged, they have been fully reinstated and restored; (ii) the Premises are available for letting by a willing landlord to a willing tenant without a premium but with vacant possession; (iii) that the covenants herein contained on the part of the Tenant have been fully performed and observed; but disregarding :- (iv) any effect on rent of the fact that the Tenant has been in occupation of the Premises; (v) any goodwill attached to the Premises by reason of the carrying on thereat of the business of the Tenant; (vi) any effect on rental value of the Premises attributable to any special improvement to the Premises or any part thereof carried out by the Tenant with the Landlord's consent where required (otherwise than in pursuance of an obligation of the Tenant) including any special improvements made by the Landlord at the expense of the Tenant prior to the commencement or during the continuance of the Term; (vii) any suspension of rent under Clause 7.01 of this Lease; (e) The Surveyor shall afford to each of the parties an opportunity to make representations to him. (f) If the Surveyor shall die delay or become unwilling or incapable of acting the President for the time being of the Hong Kong Institute of Surveyors or the person acting on his behalf may by writing discharge the Surveyor and appoint another in his place. (g) If the New Rent shall not have been determined before the commencement of the Renewed Term, then pending determination of the New Rent that shall be payable in respect of the Renewed Term, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any continue to pay on account of the terms, conditions, provisions and/or covenants New Rent the rent was payable immediately before the beginning of the Lease. All such rights Renewed Term and within fourteen (14) days of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent the New Rent, the Tenant shall pay to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern Landlord the selection of arbitrators difference between the rent actually paid by the Tenant during the period pending determination as aforesaid and the establishment of the Prevailing Market New Rent payable for the year period pending determination plus interest on the difference between the old rent and the New Rent at the prime lending rate from time to time of the then applicable Option Term; provided, however, that if Hongkong and Shanghai Banking Corporation Limited from the commencement of the Renewed Term until the date of payment and in the event of the New Rent being less than the rent actually paid the Landlord shall refund to Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market difference between the New Rent to Arbitration during such fifteen (15) day period, then and the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to rental actually paid by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termperiod pending determination plus an interest as aforesaid. (ih) Definition: As used herein, The costs and expenses of the term “Prevailing Market Rent” means Surveyor including the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would cost of his appointment shall be leased in a comparable and open market, under all conditions requisite to a fair lease, borne by the Landlord and the Tenant each acting prudently, knowledgeable, in equal shares. All other costs and assuming expenses incurred by the Landlord or the Tenant in respect of or in connection with any rent is not affected review shall be borne by undue stimulus. Implicit themselves separately. 2.3 The Air-conditioning Charges and Management Charges payable by the Tenant in this definition is the consummation respect of the lease Renewed Term shall initially be those payable under this Lease immediately at the Expiry Date, but shall be subject to the same provisions for revisions as contained in Clause 2.1 of such space beginning on the commencement date this Lease. 2.4 The amount of the lease deposit to be maintained during the Renewed Term, pursuant to Clause 9.01 of this Lease shall be a sum equal to (i) one month's revised rent payable in respect of the Premises under conditions whereby:during the Renewed Term; (ii) one month's Air-conditioning Charges at the rate from time to time payable by the Tenant during the Renewed Term and

Appears in 1 contract

Sources: Purchase Agreement (PCCW LTD)

OPTION TO RENEW. (a) Provided that Tenant is not then in default hereunder, Tenant shall have the right and option to renew extend the term of this Lease lease under the same terms and conditions (except for one minimum annual rent and these options to renew) as herein set forth for two (12) additional period periods of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effecteach, the Tenant shall be in possession and occupying additional term to begin on January 1, 2014 for the Premisesfirst five (5) year renewal option, and Tenant shall not be in default in January 1, 2019 for the performance or observance of any of second five (5) year renewal option. The option for the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall additional terms must be exercised by delivery to Tenant by giving Landlord of prior written notice of Tenant’s intention to renew the term at least thereof nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areaexpiration. (ib) Within fifteen The minimum annual rent for the first year of each additional term shall be equal to ninety-five percent (1595%) business of the fair market rental value of the Premises, determined pursuant to subsection 32(c) hereof, with three percent (3%) annual escalations. There shall be no tenant improvement allowance on the renewal options. The minimum annual rent for each subsequent year of the additional term shall be equal to the fair market increases in rental value of the Premises, determined pursuant to subsection 32(c) hereof. (c) For purposes of this Section 32, if Landlord and Tenant cannot agree as to the fair market rental value of the Premises and the fair market increases in rental value of the Premises within thirty (30) days after receipt of Tenant’s notice exercising its option to extend Landlord under subsection 32(a), the term fair market rental value of this Leasethe Premises and the fair market increases in rental value of the Premises shall be determined by appraisal. Within ten (10) days after the expiration of such thirty (30) day period, Landlord and Tenant shall give written notice to the other setting forth the name and address of an appraiser designated by the party giving notice. All appraisers selected shall be members of the American Institute of Real Estate Appraisers and shall have had at least ten (10) years continuous experience in the business of appraising industrial buildings in the greater Philadelphia, Pennsylvania area. If either party shall fail to give notice of such designation within the time period provided, then the party who has designated its appraiser (the “Designating Party”) shall notify Tenant the other party (the “Non-Designating Party”) in writing that the Non-Designating Party has an additional ten (10) days to give notice of Landlord’s estimate its designation, otherwise the appraiser, if any, designated by the Designating Party shall conclusively determine the fair market rental value of Prevailing Market Rentthe Premises and the fair market increases in rental value of the Premises. If Tenant disagrees with Landlord’s estimate two appraisers have been designated, such appraisers shall attempt to agree upon the fair market rental value of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators Premises and the establishment fair market increases in rental value of the Prevailing Market Rent payable for Premises. If the year two appraisers do not agree on the fair market rental value of the then applicable Option Term; providedPremises and the fair market increases in rental value of the Premises within twenty (20) days of their designation, however, that if Tenant does not elect the two appraisers shall designate a third appraiser. If the two appraisers shall fail to either rescind its renewal notice or to submit agree upon the determination identity of Prevailing Market Rent to Arbitration during a third appraiser within five (5) business days following the end of such fifteen twenty (1520) day period, then either Landlord or Tenant may apply to the Landlord’s estimate American Arbitration Association, or any successor thereto having jurisdiction, for the settlement of Prevailing Market Rent the dispute as to the designation of the third appraiser and the American Arbitration Association shall be deemed to be agreed to by Tenantdesignate a third appraiser in accordance with the Real Estate Valuation Arbitration Rules of the American Arbitration Association. The three appraisers shall conduct such hearings as they may deem appropriate, shall make their determination of the fair market rental value of the Premises and the fair market increases in rental value of the Premises in writing and shall be the Base Rent payable by Tenant give notice to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming of such determination within twenty (20) days after the rent is not affected by undue stimulus. Implicit in this definition is the consummation appointment of the lease of such space beginning on third appraiser. If the commencement date of three appraisers cannot agree upon the lease fair market rental value of the Premises and the fair market increases in rental value of the Premises, each appraiser shall submit in writing to Landlord and Tenant the fair market rental value of the Premises and the fair market increases in rental value of the Premises as determined by such appraiser. The fair market rental value of the Premises and the fair market increases in rental value of the Premises for the purposes of this paragraph shall be equal to the arithmetic average of the two closest fair market rental values of the Premises and the fair market increases in rental value of the Premises submitted by the appraisers. Each party shall pay its own fees and expenses in connection with any appraiser selected by such party under conditions whereby:this paragraph, and the parties shall share equally all other expenses and fees of the arbitration, including the fees and expenses charged by the third

Appears in 1 contract

Sources: Lease Agreement (Leslies Poolmart Inc)

OPTION TO RENEW. (a) Tenant shall have Lessee is given the option to renew extend the term of this Lease for one (1) additional three (3) year period of five (5) years (the “Option Term”) following the expiration of the initial lease term term, provided that this lease is Lessee has not been late in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default payment of monthly rent (resulting in the performance service of a three-day notice) more than five (5) times during the initial term or observance the first extended term of any this Lease. The option to renew is conditioned by giving notice of exercise of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery option ("Option Notice") to Landlord of written notice of Tenant’s intention to renew the term Lessor at least nine (96) six months but not more than twelve (12) months prior to before the expiration of the then applicable initial term or any extended term, provided that, if Lessee is in default on the date of giving the Option Notice, the Option Notice shall be ineffective, or if Lessee is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the leaseinitial term or first extended term. If notification of Lessee's intention to exercise said option is not so given and received, this option shall automatically expire. The Option Term monthly rent for the extended term shall be payable as follows: 39.1 Within thirty (30) days after Lessee exercises the option to renew this lease, and prior to the commencement of the same termsextended term, covenants the parties shall meet and conditions as determine whether or not they can agree upon the original lease except Base Rent new monthly rent based on the fair market rental value for the Option Term premises at the time extended term is to commence. In the event the parties cannot agree on the new monthly rent, the monthly rent for the extended period shall be the then Prevailing Market Rent of comparable space within prevailing fair market rental value for the GaithersburgSan Anselmo Avenue area, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rentas determined by appraisal described as follows. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to ArbitrationHowever, in which no event shall the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable monthly rent for the extended term be less than the monthly rent paid during the last year of the initial term. 39.2 Within ten (10) days after the determination by the parties that they cannot agree upon a mutual agreeable fair market rental value, each party shall select a licensed real estate broker familiar with the San Anselmo Avenue area and commercial rents in said area. The two (2) brokers shall then applicable Option Term; providedmeet within twenty (20) days thereafter in order to determine the prevailing fair market rental for the San Anselmo Avenue area. In the event the two (2) selected real estate brokers cannot mutually agree upon the prevailing fair market rental value for the San Anselmo Avenue area, they shall then select a third broker, and the majority of appraisals of value and the average of the three appraisals of value by the three brokers shall then establish and constitute the prevailing fair market rental. Provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit should the determination appraisal of Prevailing Market Rent to Arbitration during any one of the brokers selected by the parties differ by more than ten percent (10%) from the appraisal of the third (3rd) broker, such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent appraisal shall be deemed excluded from consideration and the average of the two remaining appraisals shall constitute the prevailing fair market rental. "Appraisal" or "Opinion" are used in this subparagraph shall be calculated on the basis of price per square foot, modified gross. Each party should bear the cost of the broker which he/she retains pursuant to be agreed to this paragraph and one-half(1/2) of the cost of the third broker. The fair market rental value, as determined by Tenantsaid brokers, and shall be the Base Rent monthly rental payable by Tenant to Landlord during commencing the first year of the then applicable Option Termextended term. Notwithstanding the foregoing, the monthly rent as determined by said brokers shall not be less than the monthly rent paid during the last year of the initial term. 39.3 The monthly rental payable during the ensuing years of the extended term, i.e., years two (i2) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent through five (as determined 5) shall be adjusted pursuant to the appraisal procedure hereinafter change and the consumer price index as set forth) at which the Premises would be leased forth in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:paragraph 5.2.

Appears in 1 contract

Sources: Lease (Touchpoint Metrics, Inc.)

OPTION TO RENEW. (a) 10.1. Tenant shall have the option right, at its option, to renew extend the term of this Lease Term for one (1) additional period of a single five (5) years year period (the “Option Extension Term”) following ), provided and upon the expiration condition that at the time of the initial lease term provided that this lease is in full force exercise of the option and effectupon the commencement of the Extension Term no monetary or material, non-monetary Event of Default shall exist, the Tenant Lease shall be in possession not have been assigned (other than to a Related Entity) and occupying Mindspeed Technologies, Inc. (the Premises, and Tenant “Named Tenant”) or a Related Entity shall not be in default in the performance or observance of any subleasing more than fifty percent (50%) of the termsPremises. The Extension Term shall commence on January 1, conditions2020 and shall expire on December 31, provisions and/or covenants of the Lease2024. All such rights of a renewal Tenant shall be exercised by delivery to give Landlord of written notice of Tenant’s intention to renew the term at least nine exercise such option not earlier fifteen (915) months but prior to the New Expiration Date, and not more later than twelve (12) months prior to the expiration New Expiration Date, time being of the then applicable term essence. All of the lease. The Option Term shall be of the same terms, covenants and conditions of the Lease shall continue in full force and effect during the Extension Term, except that the Rent shall be the greater of (i) the Rent due hereunder immediately prior to the commencement of the Extension Term, or (ii) ninety-five percent (95%) of the Fair Market Rent as determined in accordance with Section 10.2, and Tenant shall have no further right to extend the original Term pursuant to this Section 10. 10.2. Within sixty (60) days following Landlord’s receipt of Tenant’s written request therefor, Landlord shall give Tenant notice of its determination of the fair market rent which will be appropriate for the Extension Term (the “Fair Market Rent”), it being agreed that Landlord shall base its determination, as Landlord deems appropriate, upon the then current and projected rents for non-sublease, non-encumbered space in the Building, and in comparable buildings in the ▇▇▇▇ ▇▇▇▇▇ – Orange County Airport market area of comparable age, size, quality and improvements to the Premises, which are then for rent (or, if none, those rented on an arms-length basis to tenants of similar financial standing during the prior twelve (12) months) or projected to be for rent during the Extension Term, adjusted for any special conditions applicable to such spaces and leases and for location, length of term, amount of space and other factors relevant in computing rent for spaces in the Building, including adjustments for anticipated inflation, fluctuations in market rents and price conditions and adjustments for then-prevailing market concessions for similarly situated tenants entering into similar lease except Base renewals for a similar term, including, if applicable, tenant improvement allowance, leasing commissions, free rent, any “base year” or “expense stop” applicable thereto and other concessions. 10.3. Tenant shall accept or reject Landlord’s determination of the Fair Market Rent for the Option Extension Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant receipt of Landlord’s estimate of Prevailing Market Rentnotice setting forth the same. If In the event Tenant disagrees with fails to accept or reject in writing Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing the Fair Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such Extension Term within said fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent Tenant shall be deemed to have rejected Landlord’s determination of such Fair Market Rent. 10.4. Otherwise, if Tenant rejects (or is deemed to have rejected) Landlord’s determination of the Fair Market Rent, Landlord and Tenant shall use their good faith efforts to agree upon the Fair Market Rent of the Premises during the Extension Term. In the event Landlord and Tenant cannot reach agreement within thirty (30) days after the date of Tenant’s notice rejecting Landlord’s determination of the Fair Market Rent, Landlord and Tenant shall each select a reputable qualified, licensed real estate broker who has at least ten (10) years experience in Orange County and who is familiar with the rentals then being charged in the Building and in comparable buildings (respectively, “Landlord’s Broker” and “Tenant’s Broker”) who shall confer promptly after their selection by Landlord and Tenant and shall use their best efforts to agree upon the Fair Market Rent of the Premises during the Extension Term. If Landlord’s Broker and Tenant’s Broker cannot reach agreement within fifteen (15) days after the date such brokers have been selected, then, within ten (10) days thereafter, they shall designate a third reputable, licensed real estate broker, who has at least ten (10) years experience in Orange County and who is familiar with the rentals then being charged in the Building and in comparable buildings (the “Independent Broker”). Upon the failure of Landlord’s Broker and Tenant’s Broker to agree upon the designation of the Independent Broker, then the Independent Broker shall be agreed appointed by a Justice (or the regional equivalent) of the Superior Court (or the regional equivalent) of the State of California upon ten (10) business days notice, or by any other court in Orange County having jurisdiction and exercising functions similar to those exercised by the Superior Court of the State of California. Concurrently with such appointment, Landlord’s Broker and Tenant’s Broker shall each submit a letter to the Independent Broker, with a copy to Landlord and Tenant, setting forth such broker’s estimate of the Fair Market Rent of the Premises during the Extension Term (respectively, “Landlord’s Broker’s Letter” and “Tenant’s Broker’s Letter”). The Independent Broker shall conduct such investigations and hearings as he/she may deem appropriate and shall, within fifteen (15) days after the date of his/her designation, choose either the rental set forth in Landlord’s Broker’s Letter or Tenant’s Broker’s Letter to be the Fair Market Rent for the Premises during the Extension Term, and such choice shall be binding upon Landlord and Tenant. Landlord and Tenant shall each pay the fees and expenses of its respective broker. The fees and expenses of the Independent Broker shall be shared equally by Landlord and Tenant. 10.5. In the event the Extension Term shall commence prior to a determination for the Fair Market Rent during the Extension Term having been made in accordance with Section 10.4 above, then the rent to be paid by Tenant to Landlord until such determination has been made shall be the Base annual rent for the twelve (12) month period immediately preceding the commencement of the Extension Term, including all escalations or additional rent payable under the Lease. After such determination has been made for the Fair Market Rent during the Extension Term, any excess rental for the Extension Term theretofore paid by Tenant to Landlord shall be credited by Landlord against the next ensuing monthly rent payable by Tenant to Landlord and any deficiency in rent due from Tenant to Landlord during the first year Extension Term shall be paid within thirty (30) days following such determination. 10.6. The parties hereto agree to enter into an amendment of the then applicable Option Lease confirming the exercise of Tenant’s option to extend the Term of the Lease and the amount of the Rent payable during the Extension Term. (i) Definition: As used herein, 10.7. The right to extend the term “Prevailing Market Rent” means Term for the most probable rent (as determined pursuant Extension Term shall be a right personal only to the appraisal procedure hereinafter set forth) at which Named Tenant and any Related Entity and not to any other assignee, subtenant or other transferee of or successor to any portion of Tenant’s interest under the Premises would be leased in a comparable and open market, under all conditions requisite Lease or to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Premises.

Appears in 1 contract

Sources: Lease (Mindspeed Technologies, Inc)

OPTION TO RENEW. (a) Provided the Tenant shall have is not in default pursuant to the option terms and conditions of this lease, the Tenant is hereby given the right and privilege to renew the term of this Lease within lease for one (1) additional period of five (5) years (year renewal period, to commence at the “Option Term”) following the expiration end of the initial lease term provided that of this lease, which renewal shall be upon the same terms and conditions as in this lease is in full force and effectcontained, except as follows: (1) The Tenant shall pay during the five (5) year renewal term annual Base Rent based upon the fair market value per square foot applicable to the Leased Premises. The fair market value shall be determined as follows: After the Tenant has given written notice to the Landlord, as hereinafter provided, of its exercise of the within option, the Landlord shall deliver to the Tenant a written notice stating the Base Rent to be paid for the Leased Premises during the five (5)year renewal term. In the event that the Tenant objects to the Base Rent quoted by the Landlord, the issue of fair market value shall be open to negotiation between Landlord and the Tenant. In the event the parties cannot agree within thirty (30) days after the Landlord's notice of the then fair market rental value, the parties shall agree on the appointment of a real estate appraiser (the "Appraiser") having the M.A.I. designation, the cost of which shall be shared equally by the Landlord and the Tenant, which the Appraiser shall be knowledgeable in possession the ▇▇▇▇▇▇ County, New Jersey market rental area, who shall make a fair market rental determination. If the parties cannot agree within thirty (30) days subsequent to the appointment of the Appraiser, then the matter shall be submitted to binding arbitration pursuant to the rules for commercial arbitration of the American Arbitration Association, at the equal administrative cost of the Landlord and occupying the Premises, Tenant. It is expressly understood and Tenant agreed that in any event the renewal Base Rent for the five (5) year renewal term shall not be in default less than the annual Base Rent of ONE MILLION AND 00/100 ($1,000,000.00) DOLLARS, in the performance or observance of any event fair market rent shall be determined to be less than said sum as such determination shall be made in the manner hereinabove provided. (2) The right, option, and privilege of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention Tenant to renew this lease as hereinabove set forth is expressly conditioned upon the term at least Tenant delivering to the Landlord, in writing, by certified mail, return receipt requested, nine (9) months but not more prior notice of its intention to renew, which notice shall be given to the Landlord by the Tenant no later than twelve nine (129) months prior to the expiration date fixed for termination of the then applicable original term of the this lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i3) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option The obligation to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be pay the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant hereinabove set forth shall be in addition to the appraisal procedure hereinafter set forth) at which obligation to pay all Additional Rent and other charges required by the Premises would be leased in a comparable terms and open market, under all conditions requisite to a fair of this lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:.

Appears in 1 contract

Sources: Lease Agreement (Adams Respiratory Therapeutics, Inc.)

OPTION TO RENEW. (a) Tenant If it becomes necessary to determine the Market ---------------- Rate by appraisal, real estate appraiser(s), all of whom shall be Members of the Appraisal Institute and who have the option to renew the term of this Lease for one (1) additional period of at least five (5) years (experience appraising similar space located in the “Option Term”) following the expiration vicinity of the initial lease term provided that this lease is in full force and effect, the Tenant Premises shall be appointed and shall act in possession and occupying accordance with the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area.following procedures: (i) If the parties are unable to agree on the Market Rate within the allowed time, either party may demand an appraisal by giving written notice to the other party, which demand to be effective must state the name, address and qualifications of an appraiser selected by the party demanding an appraisal (the "Notifying Party"). Within ten (10) days following the Notifying Party's appraisal demand, the other party (the "Non-Notifying Party") shall either approve the appraiser selected by the Notifying Party or select a second properly qualified appraiser by giving written notice of the name, address and qualification of such appraiser to the Notifying Party. If the Non-Notifying Party fails to select an appraiser within the ten (10) day period, the appraiser selected by the Notifying Party shall be deemed selected by both parties and no other appraiser shall be selected. If two appraisers are selected, they shall select a third appropriately qualified appraiser. If the two appraisers fail to select a third qualified appraiser, the third appraiser shall be appointed by the then presiding judge of the county where the Premises are located upon application by either party. (ii) If only one appraiser is selected, that appraiser shall notify the parties in simple letter form of its determination of the Market Rate within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend following his selection, which appraisal shall be conclusively determinative and binding on the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing parties as the appraised Market RentRate. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentmultiple appraisers are selected, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant the appraisers shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph meet not later than ten (b)(ii)(a10) of this Article 57 shall govern days following the selection of arbitrators and the establishment last appraiser. At such meeting the appraisers shall attempt to determine the Market Rate as of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease extended term by the agreement of at least two (2) of the Premises under conditions whereby:appraisers. If two (2) or more of the appraisers agree on the Market Rate at the initial meeting, such agreement shall be determinative and binding upon the parties hereto and the agreeing appraisers shall, in simple letter form executed by the agreeing appraisers, forthwith notify both Landlord and Tenant of the amount set by such agreement. If multiple appraisers are selected and two (2) appraisers are unable to agree on the Market Rate, all appraisers shall submit to Landlord and Tenant an independent appraisal of the Market Rate in simple letter form within twenty (20) days following appointment of the final appraiser. The parties shall then determine the Market Rate by averaging the appraisals; provided that any high or low appraisal, differing from the middle appraisal by more than ten percent (10%) of the middle appraisal, shall be disregarded in calculating the average. (iii) If only one appraiser is selected, then each party shall pay one-half of the fees and expenses of that appraiser. If three appraisers are selected, each party shall bear the fees and expenses of the appraiser it selects and one-half of the fees and expenses of the third appraiser.

Appears in 1 contract

Sources: Standard Industrial/Commercial Net Lease (Spectrian Corp /Ca/)

OPTION TO RENEW. 25.1. Provided the Tenant (a) is not then in default pursuant to the terms and conditions of this Lease, and (b) has not been in default (beyond applicable notice and grace periods if any) more than two (2) times during the initial Term or prior renewal term hereunder, the Tenant shall have is hereby given the option right and privilege to renew the term of this Lease for two (2) ten (10) year periods and one (1) additional period of five (5) years year period, to commence at the end of the initial Term, which renewals shall be upon the same terms and conditions as in this Lease contained, except that Tenant shall pay Base Rent during the option periods in the amounts set forth in Section 2.2 hereof. A-58 25.2. Notwithstanding the above, the Base Rent payable during the first year of the second (2nd) ten (10) year renewal period shall be the greater of $1,404,239.51 per annum, or the fair market value of the Premises which shall be determined as follows: After Tenant has given written notice to the Landlord, as hereinafter provided, of its exercise of the second (2nd) ten (10) year option, the Landlord shall deliver to Tenant a written notice stating the Base Rent to be paid for the Premises during the first (1st) ten (10) year option period. In the event that the Tenant objects to the Base Rent quoted by Landlord, the issue of fair market value shall be open to negotiation between Landlord and Tenant. In the event the parties cannot agree within thirty (30) days after Landlord’s notice of the then fair market rental value, the parties shall agree on the appointment of a real estate appraiser (the “Option TermAppraiser”) following having the expiration M.A.I. designation, the cost of which shall be shared equally by Landlord and Tenant, which Appraiser shall be knowledgeable in the ▇▇▇▇▇▇ County, New Jersey market rental area, who shall make a fair market rental determination. The fair market rental determination will not take into account the improvements made by Tenant in the Premises and will take into account the extent to which the Base Rental is subject to an annual adjustment during the applicable Option Period. In the event that the parties cannot agree within thirty (30) days subsequent to the appointment of the initial lease term provided that this lease is in full force Appraiser, then the matter shall be submitted to binding arbitration pursuant to the rules for commercial arbitration of the American Arbitration Association, at the equal administrative cost of Landlord and effectTenant. If Tenant exercises its five (5) year Option to Renew, the Tenant fair market value which is applicable to the first (1st) year of said five (5) year renewal term shall be determined as set forth above. It is expressly understood and agreed that in possession and occupying any event (a) the Premises, and Tenant renewal Base Rent payable during the first (1st) year of the second (2nd) ten (10) year renewal term shall not be in default less than the annual Base Rent of ONE MILLION FOUR HUNDRED FOUR THOUSAND TWO HUNDRED THIRTY NINE AND 51/100 ($1,404,239.51) DOLLARS and (b) the Renewal Base Rent payable during the first (1st) year of the five (5) year renewal term shall not be less than the Annual Base Rent payable during the last year of the second (2nd) ten (10) year renewal term, in the performance or observance of any event fair market rent shall be determined to be less than said sum as such determination shall be made in the manner hereinabove provided. 25.3. The right, option and privilege of the termsTenant to renew this Lease as hereinabove set forth is expressly conditioned upon the tenant delivering to the Landlord in writing by certified mail, conditionsreturn receipt request, provisions and/or covenants twelve (12) months prior notice of the Lease. All such rights of a renewal its intention to renew, which notice shall be exercised given to the Landlord by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more Tenant no later than twelve (12) months prior to the expiration date fixed for the termination of the then applicable term of initial Lease Term or the leasefirst or second ten (10) year Option Period, as applicable. 25.4. The Option Term obligation to pay the Base Rent as hereinabove set forth shall be of in addition to the same terms, covenants obligation to pay all Additional Rent and other charges required by the terms and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement

OPTION TO RENEW. (a) Provided Tenant shall have is not in default of any provisions --------------- of this Lease either at the option to renew time it provides notice of renewal or at the expiration of the initial term of this Lease, the term of this Lease may be extended twice at the option of the Tenant for consecutive five (5) year periods. Such options shall be exercised by written notice to Landlord given at least one hundred eighty (180) days but no more than one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months year prior to the expiration of the then applicable initial term or first extended term, as the case may be, of this Lease. Any extension of the lease. The Option Term of this Lease shall be of upon the same terms, covenants and conditions as of this Lease except that the original lease except Base Minimum Annual Rent for the Option Term shall be equal to the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area. lesser of: (i) Within fifteen one hundred five percent (15105%) business days after receipt of Tenant’s notice exercising its option the Minimum Annual Rent paid during the immediately preceding year; or (ii) fair market value. Payment of all additional rent and other charges to extend be made by Tenant for the initial term of this Lease shall continue during any extension period. Any termination of this Lease shall automatically terminate all unexercised rights of further extensions. If Landlord and Tenant cannot agree upon the fair market value of Minimum Annual Rent to be paid during a renewal of this Lease, Landlord and Tenant shall notify Tenant each appoint an appraiser and such appraisers shall, within thirty (30) days of Landlord’s estimate their appointment, together determine the fair market value of Prevailing Market Minimum Annual Rent. If Tenant disagrees with Landlord’s estimate such two appraisers cannot agree upon the fair market value of Prevailing Market Minimum Annual Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided they shall submit separate appraisals to a third appraiser appointed by this lease, or Tenant them who shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable an appraisal for the year fair market value of Minimum Annual Rent. In such event, the then applicable Option Term; provided, however, Minimum Annual Rent that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and binding upon the parties hereto shall be the Base Rent payable by Tenant to Landlord during the first year average of the then applicable Option Termthree appraisals. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (McNaughton Apparel Group Inc)

OPTION TO RENEW. (a) If all terms and conditions of this lease have been met and Tenant has not previously been in default of any provision of the Lease, or failed to perform any provision of the lease whether a default has actually been imposed by Landlord, Tenant shall have the option to renew the term of this Lease for one (1) two additional period of five (5) years (year periods, once at the “Option Term”) following the expiration conclusion of the initial lease term, and once at the conclusion of the initial option term provided that this lease at the fair market rental value as determined by and MAI appraiser, selected by Landlord, and to be agreed upon by both parties. Should the tenant not agree with the fair market rental rate as established by the MAI appraiser, and as presented by Landlord, Tenant at Tenant’s expense may order a second appraisal. If the second appraisal is in full force and effectwithin 10% of the first appraisal, or higher, the Tenant higher of the two fair market rental rates established by the two appraisals will be used. If the appraisals are more than 10% apart on the fair market rental rate, a third appraisal shall be in possession and occupying the Premises, ordered. Landlord and Tenant shall split the costs equally for obtaining third appraisal. Upon receipt of the third appraisal the fair market rental rate will be established by averaging the two highest fair market rental values stated in two of the three appraisals. The fair market rental rate valuation shall not include a premium or excessive rental rate for any specialized improvements made by the tenant, but shall include a fair market rental rate based upon improvements, made either by a Landlord or Tenant, in general warehouse/office distribution facilities. For clarification purposes the current rental rate was established based upon space comparably found in office/warehouse distribution facilities at the time of lease commencement. It would be in default the intent of the parties to establish the fair market value at, either option period, under similar conditions as the initial rental period, utilizing rental rates based upon typical office/warehouse space found in the performance market at the time of renewal, and not to charge a premium or observance of any of excess on the termsfair market rental rate should Shared Communications bring the office space to a Class A or similar standard. Any option period hereby agreed upon or granted shall contain a rental escalation commencing with the fourth year, conditions, provisions and/or covenants of the Leasebased upon a CPI escalation as stated above. All such rights of a renewal Said option to extend shall be exercised by delivery delivered to Landlord of written notice of Tenant’s intention to renew the term at least nine (9) months in writing but not more no later than twelve (12) months 180 days prior to the expiration of the then applicable original term. If this lease is renewed, all terms of this Lease shall remain in full force and effect except for the revised base rental rate, and term, of this Lease. In any event the base rental rate during said option period shall not be less than the amount equal to the last month’s rent due under the initial term of the lease. The Option Term shall be If Landlord and Tenant cannot agree upon the fair market rental rate prior to the commencement of the same termsoption term, covenants and conditions as Tenant still occupies the premises, the base rental rate at the commencement of the option term shall not be less than the last monthly stated rent in the original lease except Base Rent for term, or option term, thereof whichever is greater. If the Option Term shall parties cannot agree on the base rent to be paid during the then Prevailing Market Rent option period within six months form the expiration date of comparable space within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the initial term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant said lease shall notify Landlord that it has elected to submit thereby terminate and tenant shall vacate the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Termpremises. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:

Appears in 1 contract

Sources: Lease Agreement (Eschelon Telecom Inc)

OPTION TO RENEW. (a) a. Provided that Tenant is not in default beyond any applicable cure period at the time of Tenant’s exercise of the Option or at the commencement of the applicable Option term, Tenant shall have the option two (2) Options to renew the term of this Lease (each an “Option Period”) as follows: the “First Option Period” and the “Second Option Period” shall each be for one (1) additional a period of five (5) years years. Tenant shall provide to Landlord on a date which is prior to the date that the applicable Option Period would commence (the “Option Term”if exercised) following the expiration by at least one hundred eighty (180) days and not more than two hundred seventy (270) days a written notice of the initial lease term provided that this lease is in full force and effectexercise of the Option to extend the Lease for the additional Option Period, time being of the Tenant essence. Such notice shall be given in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants accordance with Section 8.04 of the Lease. All such rights If notification of a renewal the exercise of the Renewal Option is not so given and received, the Renewal Options granted herein shall automatically expire. Base Rent applicable to the Premises for each Option Period shall be exercised equal to ninety-five percent (95%) of the Fair Market Rental, as defined hereinafter. All other terms and conditions of the Lease shall remain the same, except that upon the exercise of the first Renewal Option, Tenant shall have only one (1) remaining Renewal Option, and upon the exercise of the second Renewal Option, Tenant shall have no further Renewal Options. b. If the Tenant exercises a Renewal Option, the Landlord shall determine the Fair Market Rental for such Option Period by delivery to using its good faith judgment. Landlord of shall provide Tenant with written notice of Tenant’s intention to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable term of the lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space such amount within the Gaithersburg, Maryland market area. (i) Within fifteen (15) business days after Tenant exercises its Renewal Option. Tenant shall have thirty (30) days ("Tenant's Review Period") after receipt of Tenant’s Landlord's notice exercising its option of the new base rent within which to extend accept such rental. In the term of this Leaseevent Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected and Landlord and Tenant shall notify Tenant of Landlord’s estimate of Prevailing attempt to agree upon such Fair Market RentRental, using their best good faith efforts. If Landlord and Tenant disagrees with Landlord’s estimate fail to reach agreement within fifteen (15) days following Tenant's Review Period ("Outside Agreement Date") then the parties shall each within ten (10) days following the Outside Agreement Date appoint a real estate broker who shall be licensed in the state of Prevailing Market RentMaryland and who specializes in the field of commercial office space leasing in the Rockville, Tenant Maryland market, has at least ten (10) years of experience and is recognized within the field as being reputable and ethical. If one party does not timely appoint a broker, then the broker appointed by the other party shall promptly appoint a broker for such party. Such two individuals shall each determine within ten (10) days after their appointment such base rent. If such individuals do not agree on base rent, then the two individuals shall, within five (5) days, render separate written reports of their determinations and together appoint a third similarly qualified individual having the qualifications described above. If the two brokers are unable to agree upon a third broker, the third broker shall be appointed by the President of the Maryland Board of Realtors. In the event the Maryland Board of Realtors is no longer in existence, the third broker shall be appointed by the President of its successor organization. If no successor organization is in existence, the third broker shall be appointed by the Chief Judge of the Circuit Court of ▇▇▇▇▇▇▇▇▇▇ County, Maryland. The third individual shall within ten (10) days after his or her appointment make a determination of such base rent. The third individual shall determine which of the determinations of the first two individuals is closest to his own and the determination that is closest shall be final and binding upon the parties, and such determination may rescind such renewal notice thereby terminating its right be enforced in any court of renewal provided by this lease, or competent jurisdiction. Landlord and Tenant shall notify Landlord that it has elected to submit each bear the cost of its broker and shall share equally the cost of the third broker. Upon determination of Prevailing the base rent payable pursuant to this Section, the parties shall promptly execute an amendment to this Lease stating the rent so determined. c. The term "Fair Market Rent Rental" shall mean the annual amount per rentable square foot that a willing, comparable renewal tenant would pay and a willing, comparable landlord of a similar office building would accept at arm's length for similar space, giving appropriate consideration to Arbitrationthe following matters: (i) annual rental rates per rentable square foot; (ii) the type of escalation clauses (including, in which event the provisions of subparagraph (b)(ii)(awithout limitation, operating expenses, real estate taxes, and CPI) of this Article 57 shall govern the selection of arbitrators and the establishment extent of liability under the Prevailing Market Rent payable escalation clauses (i.e., whether determined on a "net lease" basis or by increases over a particular base year or base dollar amount); (iii) rent abatement provisions reflecting free rent and/or no rent during the lease term; (iv) length of lease term; (v) size and location of premises being leased; and (vi) other generally applicable terms and conditions of tenancy for the year of the then applicable Option Termsimilar space; provided, however, that if Tenant does shall not elect be entitled to either rescind its renewal notice any tenant improvement or refurbishment allowance (but any broker retained by Tenant or Landlord pursuant to submit the subparagraph (b) above shall be entitled to consider typical tenant improvement allowances or refurbishment allowances paid for similar space in connection with lease renewals in making his determination of Prevailing the Fair Market Rent to Arbitration during such fifteen (15) day periodRental). The Fair Market Rental may also designate periodic rental increases, then the Landlord’s estimate of Prevailing a new Base Year and similar economic adjustments. The Fair Market Rent shall be deemed to be agreed to by Tenant, and Rental shall be the Base Rent payable by Tenant to Landlord during the first year Fair Market Rental in effect as of the then applicable beginning of the Option Term. (i) Definition: As used hereinperiod, even though the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would determination may be leased made in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeableadvance of that date, and assuming the rent is not affected by undue stimulus. Implicit parties may use recent trends in this definition is rental rates in determining the consummation proper Fair Market Rental as of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:Option period.

Appears in 1 contract

Sources: Office Building Lease (Edgar Online Inc)

OPTION TO RENEW. (a) Provided the Tenant shall have is not in default beyond any applicable cure period pursuant to the option terms and conditions of this lease, the Tenant is hereby given the right and privilege to renew the term of this Lease within lease, for one two (12) additional period of five (5) years (year periods, to commence at the “Option Term”) following the expiration end of the initial lease term provided that of this lease, which renewals shall be upon the same terms and conditions as in this lease is in full force and effectcontained, except as follows: (1) Tenant shall pay during the each five (5) year renewal term annual Base Rent based upon the fair market value per square foot applicable to the Leased Premises. The fair market value shall be determined as follows: After Tenant has given written notice to the Landlord, as hereinafter provided, of its exercise or the within option, the Landlord shall deliver to Tenant a written notice stating the fair market value to be paid for the Leased Premises during the applicable five (5) year renewal term. In the event that the Tenant objects to the fair market value quoted by Landlord, the issue of fair market value shall be open to negotiation between Landlord and Tenant. In the event the parties cannot agree within thirty (30) days after Landlord's notice of the then fair market rental value, the parties shall agree on the appointment of a real estate appraiser (the "Appraiser") having the M.A.I. designation, the cost of which shall be shared equally by Landlord and Tenant, which Appraiser shall be knowledgeable in possession the Somerset County, New Jersey market rental area, who shall make a fair market rental determination. If the parties cannot agree within thirty (30) days subsequent to the appointment of the Appraiser, then the matter shall be submitted to binding arbitration pursuant to the rules for commercial arbitration of the American Arbitration Association, at the equal administration cost of Landlord and occupying Tenant. It is expressly understood and agreed that in any event the Premises, and Tenant renewal Base Rent for the first five (5) year 38 42 renewal term shall not be in default less than the annual Base Rent of THREE HUNDRED TWENTY THOUSAND SIX HUNDRED SEVENTY THREE AND 65/100 ($320,673.65) DOLLARS, and that the renewal Base Rent for the second five (5) year renewal term shall not be less than the annual Base Rent payable by the Tenant during the first five (5) year renewal term, in the performance or observance of any event fair market rent shall be determined to be less than said sum as such determination shall be made in the manner hereinabove provided. (2) The right, option, and privilege of the termsTenant to renew this lease as hereinabove set forth is expressly conditioned upon the Tenant delivering to the Landlord, conditionsin writing, provisions and/or covenants by certified mail, return receipt requested, nine (9) months' prior notice of the Lease. All such rights of a renewal its intention to renew, which notice shall be exercised given to the Landlord by delivery to Landlord of written notice of Tenant’s intention to renew the term at least Tenant no later than nine (9) months but not more than twelve (12) months prior to the expiration date fixed for termination of the then applicable term original term, or first renewal term, of the this lease. The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market areaapplicable. (i3) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option The obligation to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be pay the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant hereinabove provided shall be in addition to the appraisal procedure hereinafter set forth) at which obligation to pay all additional rent and other charges required by the Premises would be leased in a comparable terms and open market, under all conditions requisite to a fair of this lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:.

Appears in 1 contract

Sources: Lease Agreement (Sterigenics International Inc)

OPTION TO RENEW. (a) Tenant shall have Lessee is given the option to renew extend the term of this Lease for one (1) additional three (3) year period of five (5) years (the “Option Term”) following the expiration of the initial lease term term, provided that this lease is ▇▇▇▇▇▇ has not been late in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default payment of monthly rent (resulting in the performance service of a three-day notice) more than five (5) times during the initial term or observance the first extended term of any this Lease. The option to renew is conditioned by giving notice of exercise of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery option ("Option Notice") to Landlord of written notice of Tenant’s intention to renew the term Lessor at least nine (9) nine months but not more than twelve (12) months prior to before the expiration of the then applicable initial term or any extended term, provided that, if Lessee is in default on the date of giving the Option Notice, the Option Notice shall be ineffective, or if Lessee is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the leaseinitial term or first extended term. If notification of ▇▇▇▇▇▇'s intention to exercise said option is not so given and received, this option shall automatically expire. The Option Term monthly rent for the extended term shall be payable as follows: 39.1 Within thirty (30) days after Lessee exercises the option to renew this lease, and prior to the commencement of the same termsextended term, covenants the parties shall meet and conditions as determine whether or not they can agree upon the original lease except Base Rent new monthly rent based on the fair market rental value for the Option Term premises at the time extended term is to commence. In the event the parties cannot agree on the new monthly rent, the monthly rent for the extended period shall be the then Prevailing Market Rent of comparable space within prevailing fair market rental value for the GaithersburgSan Anselmo Avenue area, Maryland market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rentas determined by appraisal described as follows. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to ArbitrationHowever, in which no event shall the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable monthly rent for the extended term be less than the monthly rent paid during the last year of the initial term. 39.2 Within ten (10) days after the determination by the parties that they cannot agree upon a mutual agreeable fair market rental value, each party shall select a licensed real estate broker familiar with the San Anselmo Avenue area and commercial rents in said area. The two (2) brokers shall then applicable Option Term; providedmeet within twenty (20) days thereafter in order to determine the prevailing fair market rental for the San Anselmo Avenue area. In the event the two (2) selected real estate brokers cannot mutually agree upon the prevailing fair market rental value for the San Anselmo Avenue area, they shall then select a third broker, and the majority of appraisals of value and the average of the three appraisals of value by the three brokers shall then establish and constitute the prevailing fair market rental. Provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit should the determination appraisal of Prevailing Market Rent to Arbitration during any one of the brokers selected by the parties differ by more than ten percent (10%) from the appraisal of the third (3rd) broker, such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent appraisal shall be deemed excluded from consideration and the average of the two remaining appraisals shall constitute the prevailing fair market rental. "Appraisal" or "Opinion" are used in this subparagraph shall be calculated on the basis of price per square foot, modified gross. Each party should bear the cost of the broker which he/she retains pursuant to be agreed to this paragraph and one-half (1/2) of the cost of the third broker. The fair market rental value, as determined by Tenantsaid brokers, and shall be the Base Rent monthly rental payable by Tenant to Landlord during commencing the first year of the then applicable Option Termextended term. Notwithstanding the foregoing, the monthly rent as determined by said brokers shall not be less than the monthly rent paid during the last year of the initial term. 39.3 The monthly rental payable during the ensuing years of the extended term, i.e., years two (i2) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent through five (as determined 5) shall be adjusted pursuant to the appraisal procedure hereinafter change and the consumer price index as set forth) at which the Premises would be leased forth in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:paragraph 5.2.

Appears in 1 contract

Sources: Lease Agreement (Touchpoint Metrics, Inc.)

OPTION TO RENEW. (a) Tenant Lessee, provided it is not in default hereunder at the time of exercise or at the expiration of the Lease Term or, if applicable, the first extension of the Lease Term and provided that the franchise or license agreement with Franchisor is extended for a period of not less than the applicable renewal period, shall have the option to renew the term of continue this Lease in effect for one four (14) additional period periods of five (5) years (each in accordance with its original terms and provisions except for the “Option Term”following: i) following in the expiration event the annual fair market rental value of the initial lease term provided that this lease Premises to be determined as set forth below is in full force and effect, greater than the Tenant Base Annual Rental then the annual fair market value of the Premises shall be in possession substituted for the Base Annual Rental and occupying all other provisions shall remain the Premises, and Tenant shall not be in default same; and ii) in the performance or observance of any event the annual fair market rental value of the terms, conditions, Premises is less than the Base Annual Rental the provisions and/or covenants of this Lease shall remain the Leasesame. All Lessee shall exercise such rights of a renewal shall be exercised option by delivery to Landlord of giving written notice to Lessor of Tenant’s its intention to renew the term at least nine (9) months but do so not more than twelve (12) months 270 days nor less than 210 days prior to the expiration of the then applicable term Lease Term or the first, second, or third extension of the lease. The Option Lease Term and upon receipt of such notice Lessor shall be within 90 days, at Lessee's expense, cause an appraisal of the same terms, covenants and conditions as the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland fair market area. (i) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen (15) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease rental value of the Premises under conditions whereby:to be made by an independent appraiser. If within 20 days after being notified of the result of such appraisal Lessee elects to reject that appraisal then Lessor shall nominate to Lessee a list of not less than three (3) independent appraisers who are experienced with appraising property similar to the Premises and are familiar with the geographical region where the Premises are located, and Lessee shall select one such appraiser. Within 60 days an appraisal shall then be made of the Premises by that appraiser and within 20 days after the results of that appraisal shall have been delivered to Lessee, Lessee shall notify Lessor in writing of its election to exercise this option to renew this Lease and shall pay the rental so established above which shall be absolutely net to Lessor as provided in Section 6 hereof. If such notice of exercise is not received by Lessor within the 20 day period then this Lease shall terminate on the last day of the Lease Term or, if applicable, the last day of the first renewal term.

Appears in 1 contract

Sources: Termination and Modification Agreement (Quality Dining Inc)

OPTION TO RENEW. (a) Tenant shall have the option to renew the term Term of this Lease for one (1) additional period of five (5) years (the “Option Term”) following the expiration of the initial lease term Lease Term provided that this lease Lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the LeaseLease (beyond any applicable grace period granted in the Lease for curing same). All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention to renew the term Term at least nine six (96) months but not more than twelve (12) months prior to the expiration of the then applicable term Term of the leasethis Lease. The Option Term shall be of on the same terms, covenants and conditions as the original lease Lease except (i) as to the number of Option Terms (if any) remaining and (ii) that Base Rent for the Option Term shall be payable during the Option Term at the then Prevailing Market Rent (as defined below) of comparable space within the Gaithersburg, Maryland market area.area of the Building and parking fees for the Option Term shall also be payable at the prevailing market rate. The prevailing market rent shall be established as follows: (ia) Within fifteen (15) business days after receipt of Tenant’s notice exercising its option to extend the term Term of this Lease, Lease Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right shall, within ten (10) business days after receipt of renewal provided by this leaseLandlord’s estimate of Prevailing Market Rent, or Tenant shall notify Landlord that it withdraws the decision of exercising the option, or has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(ab) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the first year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such fifteen ten (1510) business day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (ib) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeableknowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the a lease of such space beginning on the commencement date of the lease of the Premises Option Term under conditions whereby:

Appears in 1 contract

Sources: Office Lease (Teletronics International, Inc.)

OPTION TO RENEW. (aA) So long as Tenant shall is not in default under this Lease, either at the time of exercise or at the time the extended term commences, Tenant will have the option to renew extend the initial seven (7) year term of this Lease for one (1) an additional period of five (5) years (the "Option Term”Period") following on the expiration of the initial lease term provided that this lease is in full force and effectsame terms, the Tenant shall be in possession and occupying the Premisescovenants, and conditions of this Lease, except that the monthly rent during the option period will be determined pursuant to paragraph (B). Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised will exercise its option by delivery to giving Landlord of written notice of Tenant’s intention to renew the term ("Option Notice") at least nine (9) months but not more than twelve (12) months prior to the expiration of the then applicable initial term of the lease. this Lease. B) The Option Term shall be of the same terms, covenants and conditions as the original lease except Base Current Rent for the Option Term shall Period will be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area.determined as follows: (i) Within Landlord and Tenant will have fifteen (15) business days after receipt Landlord receives the Option Notice within which to agree on the then-fair market rental value of Tenant’s notice exercising its option the premises, as defined in paragraph (B)(iii), and rental increases to extend the term monthly rent for the Option Period. If Landlord and Tenant agree on the Current Rent for the Option Period within fifteen (15) days, they will amend this Lease by stating the initial monthly rent and rental increases for the Option Period. (ii) If Landlord and Tenant are unable to agree on the Current Rent for the Option Period within fifteen (15) days, then, the Current Rent for the Option Period will be the then-fair market rental value of the premises as determined in accordance with paragraph(B)(iv) and the periodic rental increases will be consistent with the current market standards for rent increases at that time, in amounts and at frequencies determined by the appraisers pursuant to paragraph (B)(iv). (iii) The "then-fair market rental value of the premises" means what a landlord under no compulsion to lease the premises and a tenant under no compulsion to lease the premises would determine as rents (including monthly rental and rental increases) for the Option Period as of the commencement of the Option Period, taking into consideration the uses permitted under this Lease, Landlord shall notify Tenant the quality, size, design and location of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentthe premises, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment rent for comparable buildings located in the vicinity of Reston, Virginia. In addition, prevailing market concessions then being offered in Reston for comparable buildings shall also be taken into account. The then-fair market rental value of the Prevailing Market Rent payable premises and the rental increases in the monthly rent for the year Option Period will not be less than 105% of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit previous lease year's Base Rental. (iv) Within seven (7) days after the determination expiration of Prevailing Market Rent to Arbitration during such the fifteen (15) day periodperiod set forth in paragraph (B)(ii), then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant will each acting prudentlyappoint a real estate appraiser with at lease five (5) years' full-time commercial appraisal experience in the area in which the premises are located to appraise the then-fair market rental value of the premises. If either Landlord or Tenant does not appoint an appraiser within ten (10) days after the other has given notice of the name of its appraiser, knowledgeablethe single appraiser appointed will be the sole appraiser and will set the then-fair market rental value of the premises. If two (2) appraisers are appointed pursuant to this paragraph, they will meet promptly and assuming attempt to set the rent is not affected by undue stimulusthen-fair market rental value of the premises. Implicit If they are unable to agree within thirty (30) days after the second appraiser has been appointed, they will attempt to elect a third appraiser meeting the qualifications stated in this definition is paragraph within ten (10) days after the consummation last day the two (2) appraisers are given to set the then-fair market rental value of the lease of such space beginning premises. If they are unable to agree on the commencement date third appraiser, either Landlord or Tenant, by giving ten (10) days' prior notice to the other, can apply to the then-presiding judge of the lease Fairfax County Court for the selection of a third appraiser who meets the qualifications stated in this paragraph. Landlord and Tenant will bear one-half (1/2) of the Premises under conditions whereby:cost of appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, however selected, must be a person who has not previously acted in any capacity for either Landlord or Tenant. Within thirty (30) days after the selection of the third appraiser, a majority of the appraisers will set the then-fair market rental value of the premises. If a majority of the appraisers are unable to set the then-fair market rental value of the premises within thirty (30) days after the selection of the third appraiser, the three (3) appraisals will be averaged and the average will be the then-fair market rental value of the premises.

Appears in 1 contract

Sources: Office/Warehouse/Showroom Lease (Musicmaker Com Inc)

OPTION TO RENEW. (a) Tenant shall have the right and option to renew the term of this Lease for one (1) additional period term of five sixty (560) years (the “Option Term”) following the expiration of the initial lease term provided that this lease is in full force and effectmonths by delivering, the Tenant shall be in possession and occupying the Premisesfor such renewal term, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery written notice thereof to Landlord of written notice of Tenant’s intention to renew the term at least nine six (9) months but not more than twelve (126) months prior to the expiration of the then applicable term primary Term, provided that, at the time of such notice and at the end of the leaseprimary Term, Tenant is not in default of any of the terms, covenants or conditions of this Lease after the expiration of all applicable grace periods. The Option Term Upon the delivery of said notice and subject to any conditions set forth in the preceding sentence, and upon the execution by Landlord and Tenant of an extension agreement containing such terms and provisions which are consistent with the provisions of this Paragraph, this Lease shall be of extended upon the same terms, covenants and conditions as provided in this Lease, except that the original lease except Base Rent rent payable under this Lease during said renewal term shall be at ninety-five percent (95%) of the prevailing market rate (including escalations) for the Option Term shall be Premises, based upon the prevailing market rate for renewing tenants leasing space in comparable office buildings located in Western Henrico County, Virginia (considering the then Prevailing Market Rent physical condition and age of comparable space within the GaithersburgBuilding and Property and taking into account the absence of any free rent period, Maryland market area. (i) tenant build out allowances and other concessions otherwise offered with respect to such other buildings), at the commencement of such renewal as reasonably determined by Landlord. Within fifteen (15) business days after receipt of Tenant’s notice exercising its request given not earlier than nine (9) months prior to the expiration of the primary Term, Landlord shall advise Tenant as to the prevailing market rate (including escalations) for the Premises for the renewal term provided for herein, thereby permitting Tenant the opportunity to evaluate such prevailing market rate prior to the date Tenant is required to exercise Tenant’s renewal option to extend provided for herein. Notwithstanding the term foregoing, any termination of this Lease, Landlord shall notify Tenant of Landlord’s estimate of Prevailing Market Rent. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rent, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) any assignment of this Article 57 shall govern the selection Lease or subletting of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such more than fifteen percent (15%) day period, then the Landlord’s estimate of Prevailing Market Rent shall be deemed to be agreed to by Tenant, and shall be the Base Rent payable by Tenant to Landlord during the first year of the then applicable Option Term. (i) Definition: As used herein, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:in effect at the time of notice to Landlord of the exercise of such renewal option, shall terminate the option of Tenant contained in this Paragraph.

Appears in 1 contract

Sources: Lease Agreement (Wells Real Estate Fund Iii L P)

OPTION TO RENEW. (a) Tenant shall have the option right to renew the term of this Lease for one (1) additional period term of five (5) years (the Option Renewal Term”) following the expiration ). ▇▇▇▇▇▇ agrees to notify Landlord in writing of the initial lease term provided that this lease is in full force and effect, the Tenant shall be in possession and occupying the Premises, and Tenant shall not be in default in the performance or observance of any of the terms, conditions, provisions and/or covenants of the Lease. All such rights of a renewal shall be exercised by delivery to Landlord of written notice of Tenant’s intention its intent to renew the term at least nine (9) months but not more than twelve (12) months prior to the expiration termination of the then applicable term of the leasepreceding term. The Option Renewal Term shall be of under the same terms, covenants terms and conditions as subject to the original lease except Base Rent for the Option Term shall be the then Prevailing Market Rent of comparable space within the Gaithersburg, Maryland market area.following conditions: (i) There shall not be a default under any of the terms or provisions of this Lease beyond any applicable notice and cure period at the commencement of the Renewal Term. (ii) The Renewal Term shall be under the same terms and conditions as specified in the Lease, except Tenant shall lease the Premises in its then "as-is" condition, and the Rent for the Renewal Term shall be at 95% of the then Market Rate, but not less than the Rent for the Premises in effect immediately prior to the commencement of such Renewal Term. (iii) As used herein, the term "Market Rate" shall be determined by the amount of base annual rent per square foot then prevailing market rate being charged in comparable buildings located in the metropolitan area of Portland, Oregon (the "Comparable Office Buildings") for space comparable to the Premises calculated on a per square foot basis for leases covering Comparable Office Buildings (taking into account all relevant factors, including but not limited to the size of space, setting, type, age, quality of the Building, method of paying taxes, utilities, and operating expenses, length of term, free rent or other concessions, brokerage commissions and improvement obligations or allowance, but as adjusted for any variances between such buildings and the Building, the creditworthiness of the tenants, and omitting from same value attributable to improvements made by or at the cost of Tenant. ▇▇▇▇▇▇▇▇▇▇ Park - Zones Inc. Please Initial Page 15 December 2005 _________ _______ (iv) Within fifteen thirty (1530) business days after receipt Landlord receives the notice of Tenant’s notice exercising its option to extend ▇▇▇▇▇▇'s exercise of the term of this Leaserenewal option, Landlord shall notify Tenant of Landlord’s estimate the proposed Market Rate. In the event that Landlord and Tenant are not able to agree as to the Market Rate and the applicable escalation rate within sixty (60) days of Prevailing good faith negotiation, then the Rent for the Renewal Term shall be determined in accordance with the arbitration provision set forth below: (A) If Landlord and Tenant cannot agree upon the Market RentRate as provided above, then each party shall, within five (5) days following expiration of the sixty (60) day period set forth above, select an arbitrator to determine the Market Rate. If Tenant disagrees with Landlord’s estimate of Prevailing Market Rentthe two arbitrators cannot agree, Tenant may rescind such renewal notice thereby terminating its right of renewal provided by this lease, or Tenant shall notify Landlord that it has elected to submit the determination of Prevailing Market Rent to Arbitration, in which event the provisions of subparagraph (b)(ii)(a) of this Article 57 shall govern the selection of arbitrators and the establishment of the Prevailing Market Rent payable for the year of the then applicable Option Term; provided, however, that if Tenant does not elect to either rescind its renewal notice or to submit the determination of Prevailing Market Rent to Arbitration during such within fifteen (15) day perioddays following their appointment, on the Market Rate, then they shall, within five (5) days thereafter, select a third arbitrator who will consider the proposal of each party's arbitrator, and shall, within five (5) days from the third arbitrator's appointment, adopt the finding of either the Landlord's or the Tenant's arbitrator with respect to Market Rate, which finding shall be final and binding upon the parties. If the first two arbitrators are unable to agree upon the third arbitrator, then the Landlord’s estimate of Prevailing Market Rent third arbitrator shall be deemed to be agreed to appointed by Tenantthe presiding judge of the Circuit Court of the State of Oregon for the County of Multnomah. If one of the parties appoints an arbitrator, and the other does not do so within the period provided herein, the decision of the single arbitrator appointed by the one party shall be binding upon the Base Rent payable parties. All arbitrators selected pursuant to this Section shall be independent commercial real estate appraisers or real estate brokers licensed in the State of Oregon with at least ten (10) years' experience, immediately prior to the date in question, evaluating rental rates for similar properties in the Portland, Oregon, market and who have not previously been employed by either Landlord or Tenant within the last 12 months. The appraisers shall have no right to Landlord during modify the first year terms of the then applicable Option Termthis Lease in their findings. (iB) Definition: As In the event Tenant fails to timely notify Landlord in the manner herein specified, Tenant shall be conclusively deemed to have waived its right to enter into the Renewal Term. Should Tenant exercise the Renewal Term, Landlord shall provide Tenant a $5.00 per rentable square foot refurbishment package to be used hereinat Tenant’s discretion with ▇▇▇▇▇▇▇▇’s approval, the term “Prevailing Market Rent” means the most probable rent (as determined pursuant to the appraisal procedure hereinafter set forth) at which the Premises would shall not be leased in a comparable and open market, under all conditions requisite to a fair lease, the Landlord and Tenant each acting prudently, knowledgeable, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the consummation of the lease of such space beginning on the commencement date of the lease of the Premises under conditions whereby:unreasonably withheld.

Appears in 1 contract

Sources: Lease Agreement (Zones Inc)