Common use of Right to Expand Clause in Contracts

Right to Expand. Provided that the Tenant is not then in default and has not been habitually in default throughout the Term, the Tenant shall have the right to expand into, and the Landlord shall have an obligation to build, the Expansion Premises shown on Schedule "A-1" containing a leaseable area of approximately 48,000 square feet. Alternatively, the Tenant shall have the right to exercise its expansion rights only in respect of the warehouse portion of the Expansion Premises comprising approximately 38,000 square feet. The annual rental rate for the Expansion Premises shall be determined by multiplying the cost of the Expansion Premises by eight (8%) percent. The costs of the Expansion Premises will be agreed to by both the Landlord and the Tenant, prior to the commencement of construction, both acting reasonably which costs shall, in any event, include all hard, soft and development fees of the Landlord. The right to expand can only be exercised during the first seven (7) years of the original term and then only if the Tenant concurrently exercises its right of extension for the original premises; provided however that if the right to expand is exercised following the expiry of the fifth year of the original term, the extension term shall be deemed to be increased by the number of days in the period between the first day of the sixth year of the original term and the date upon which the right to expand is exercised by the Tenant. Notwithstanding the foregoing, the Landlord's obligation to construct the expansion shall be conditional on: (i) the Tenant's financial covenant and standing being substantially as good as it was on the commencement date of the Amram's Lease; (ii) the Landlord being able to obtain a building permit and all development approvals; and (iii) the Landlord being able to obtain the consent of its lender, which consent the Landlord shall use reasonable commercial efforts to obtain.

Right to Expand. Provided that the Lease is in full force and effect, and further provided the Tenant is STRONG/MDI SCREEN SYSTEMS, INC. itself personally, has not assigned the Lease or the subleased the Premises, or a portion thereof, and is not then in default of executing its obligations under the Lease, and has not been habitually in default throughout the Termsubject to any governmental or municipal permits and authorizations, the Tenant shall have throughout the Term the ongoing right to expand intothe Premises (the “Right to Expand”), and at its cost, either by (i) the construction of an expansion to the Building, or (ii) constructing an additional building on the Land (the “Expansion Premises”). In order to validly exercise its Right to Expand, the Tenant shall provide to the Landlord a prior written notice of its exercise thereof. The terms and conditions of the Lease shall have an obligation apply mutatis mutandis to buildthe Expansion Premises, save and except as follows: a) the term of the lease for the Expansion Premises (the “Expansion Premises Term”) shall be the greater of (i) the remainder of the Term (including any Renewal Term if the Tenant, at the date of the expansion of the premises, validly exercised one or more Option(s) to Renew), or (i) ten (10) years; b) if, as a result of the application of the provisions of paragraph a) above, the Expansion Premises shown on Schedule "A-1" containing a leaseable area of approximately 48,000 square feet. AlternativelyTerm and the Term for the existing Premises are not coterminous, the Tenant Term for the existing Premises shall have the right be extended to exercise its expansion rights only in respect of the warehouse portion of be coterminous with the Expansion Premises comprising approximately 38,000 square feet. The annual rental rate for Term, and the Expansion Premises Base Rent applicable thereto shall be determined by multiplying the cost Fair Market Rent as per the provisions of the Expansion Premises by eight (8%) percent. The costs Section 2 of the Expansion Premises will be agreed to by both the Landlord and the Tenant, prior to the commencement of construction, both acting reasonably which costs shall, in any event, include all hard, soft and development fees of the Landlord. The right to expand can only be exercised during the first seven (7) years of the original term and then only if the Tenant concurrently exercises its right of extension for the original premises; provided however that if the right to expand is exercised following the expiry of the fifth year of the original term, the extension term shall be deemed to be increased by the number of days in the period between the first day of the sixth year of the original term and the date upon which the right to expand is exercised by the Tenant. Notwithstanding the foregoing, the Landlord's obligation to construct the expansion shall be conditional on: (i) the Tenant's financial covenant and standing being substantially as good as it was on the commencement date of the Amram's Lease; (ii) the Landlord being able to obtain a building permit and all development approvals; and (iii) the Landlord being able to obtain the consent of its lenderthis Schedule “A” related thereto, which consent the Landlord provisions shall use reasonable commercial efforts to obtainapply mutatis mutandis.

Right to Expand. Provided (a) Expansion in the Building. Tenant shall, during the Base Term, have the one-time right, but not the obligation, to expand the Premises (the “Expansion Right”) to include the Expansion Space upon the terms and conditions set forth in this Section. For purposes of this Section 39(a), “Expansion Space” shall mean that certain space immediately adjacent to the Premises, consisting of approximately 3,168 rentable square feet, as shown on Exhibit G, which is not occupied by a tenant or which is occupied by a then-existing tenant whose lease is expiring within 9 months or less and such tenant does not wish to renew (whether or not such tenant has a right to renew) its occupancy of such space. If there is any Expansion Space in the Building, Landlord shall, within a reasonable period, deliver to Tenant written notice (the “Expansion Notice”) of such Expansion Space, together with the terms and conditions on which Landlord is prepared to lease Tenant the Expansion Space; provided that Base Rent for the Available Space shall be at the Market Rate (as defined in Section 40(a) below). Tenant shall be entitled to exercise its right under this Section 39(a) only with respect to the entire Expansion Space. Tenant shall have 10 days following delivery of the Expansion Notice to deliver to Landlord written notification of Tenant’s exercise of the Expansion Right (“Exercise Notice”). Tenant shall be entitled to lease the Expansion Space upon the terms and conditions set forth in the Expansion Notice. If Landlord and Tenant are unable to agree on the Market Rate for the Expansion Space after negotiating in good faith within 5 days after Tenant’s delivery of an Exercise Notice, the applicable Market Rate will be determined through arbitration in accordance with Section 40(b) below. Tenant acknowledges that the Term of the Lease with respect to the Expansion Space shall be co-terminous with the Term of the Lease with respect to the then-existing Premises. Notwithstanding anything to the contrary contained herein, Tenant shall have no right to exercise the Expansion Right and the provisions of this Section 39(a) shall no longer apply after the date that is not then in default and 10 months prior to the expiration of the Base Term if Tenant has not been habitually in default throughout exercised its Extension Right pursuant to Section 40. If Tenant fails to deliver an Exercise Notice to Landlord for the TermExpansion Space within the required 10 day period, Tenant shall be deemed to have waived its right under this Section 39(a) to lease the Tenant Expansion Space, and Landlord shall have the right to expand into, and the Landlord shall have an obligation to build, lease the Expansion Premises shown Space to any third party on Schedule "A-1" containing a leaseable area of approximately 48,000 square feet. Alternativelyany terms and conditions acceptable to Landlord; provided, the Tenant shall have the right to exercise its expansion rights only in respect of the warehouse portion of however, that if Landlord has not leased the Expansion Premises comprising approximately 38,000 square feet. The annual rental rate for the Expansion Premises shall be determined by multiplying the cost of the Expansion Premises by eight (8%) percent. The costs of the Expansion Premises will be agreed Space within 9 months after Tenant’s failure to by both the Landlord and the Tenantdeliver an Exercise Notice then, prior to leasing the commencement of constructionExpansion Space to a third party, both acting reasonably which costs shall, in any event, include all hard, soft and development fees of the Landlord. The right to expand can only be exercised during the first seven (7) years of the original term and then only if the Tenant concurrently exercises its right of extension for the original premises; provided however that if the right to expand is exercised following the expiry of the fifth year of the original term, the extension term shall be deemed to be increased by the number of days in the period between the first day of the sixth year of the original term and the date upon which the right to expand is exercised by the Tenant. Notwithstanding the foregoing, the Landlord's obligation to construct the expansion shall be conditional on: (i) the Tenant's financial covenant and standing being substantially as good as it was on the commencement date of the Amram's Lease; (ii) the Landlord being able to obtain a building permit and all development approvals; and (iii) the Landlord being able to obtain the consent of its lender, which consent the Landlord shall use reasonable commercial efforts again give Tenant an Exercise Notice and Tenant shall again have its Expansion Right subject to obtainthe terms and conditions of this Section 39.