Right to Expand. (a) Tenant shall have one (1) option to expand (the "Expansion Option") the Premises to include an approximately 50,400 square feet Building (the "Expansion Space") to be constructed in the Project in the area shown on the attached Exhibit G (the "Expansion Land"). The Expansion Option shall be effective only if Tenant is not in Default under this Lease, nor has any event occurred which with the giving of notice or the passage of time, or both, would constitute a default hereunder, either at the time of exercise of the Expansion Option or the time of delivery of the Expansion Space. The Expansion option shall be personal to Tenant and any transferee of a permitted transfer and shall not be assignable or otherwise transferable to any other permitted assignee, subtenant or other third parties. in order to exercise the expansion option, Tenant shall give written notice to Landlord (the "Expansion Notice") on or before the date (the "Final Expansion Notice Date") that is the last day of the first Lease Year. If the Expansion Notice is not so given, the Expansion Option shall, except as provided in (b) below, automatically lapse; Tenant hereby expressly acknowledges and agrees that time is of the essence for purposes of delivering the Expansion Notice and that Tenant's failure to do so by the Final Expansion Notice Date will relieve Landlord of any obligation under this Paragraph 52. (b) Notwithstanding the terms of Paragraph 52(a) above, Tenant shall have the right to extend the Final Expansion Notice Date to the last day of the second Lease Year, provided that, on or before the expiration of the first Lease Year Tenant delivers written notice of such election to Landlord (the "Extension Notice"). If the Extension Notice is not so given, the Expansion Option shall automatically lapse; Tenant hereby expressly acknowledges and agrees that time is of the essence for purposes of delivering the Extension Notice and that Tenant's failure to do so by said date will relieve Landlord of any obligation under this Paragraph 52. If Tenant delivers the Extension Notice in a timely manner as provided herein, Tenant shall have until the end of the second Lease Year, (the "extended Expansion Notice Date") to exercise the Expansion Option by delivering an Expansion Notice to Landlord. If Tenant provides an Extension Notice to Landlord and thereafter fails to exercise the Expansion Option in accordance with this Paragraph 52(b), the monthly Base Rent then payable under this Lease shall be increased by five cents ($0.05) per square foot and such increased Base Rent shall thereafter be increased by one hundred and four percent (104%) of the Monthly Base Rent for the preceding Lease Year. By way of example, the monthly Base Rent payable hereunder on a square footage basis during the third Lease Year shall be adjusted to equal $87,014.59 which amount equals (i) the monthly Base Rent for the Third Lease Year, plus (ii) five cents ($.05) per square foot and therefore, the monthly Base Rent for the fourth Lease Year shall be $90,495.17. (c) The Expansion Notice shall specify the date Tenant desires to occupy the Expansion Space (the "Requested Delivery Date"). The Requested Delivery Date shall be no earlier than ten (10) months and no later than thirty-six (36) months after the Commencement Date. Upon delivery of the expansion Notice and as a condition precedent to the effectiveness thereof, Tenant shall (i) increase the security Deposit under this Lease by Seventy-Five Thousand Dollars ($75,000) to a total of One Hundred Fifty Thousand Dollars ($156,000), and (ii) provide Landlord with detailed financial statements and other information reasonably acceptable to Landlord demonstrating that; as of the date of the Expansion Notice, Tenant has cash and cash equivalents, as defined in Paragraph 4 above, greater than Ten Million Dollars ($10,000,000) and a current ratio of 1.2 or greater. As used in this Paragraph, "current ratio" shall mean the number obtained by dividing Tenant's current assets by current liabilities, as such amounts are shown on Tenant's then most recent quarterly filing (Form 10-Q) with the Securities and Exchange Commission. Notwithstanding the condition in (ii) above, the Expansion Notice shall be effective if Tenant delivers to Landlord, as additional security for the full and faithful performance of Tenant's covenants and obligations under this Lease, a letter of credit, in the form and subject to the terms and conditions set forth in Paragraph 4 above, in the amount of Five Hundred Thousand Dollars ($500,000). Notwithstanding the terms of Paragraph 4, during the period from the Expansion Space Commencement Date through the sixth Lease Year, the amount of such letter of credit shall be reduced by Twenty Thousand Dollars ($20,000) on the last day of each such Lease Year. During the period from the seventh Lease Year through the Expiration Date, the amount of the letter of credit shall be reduced by Sixty-Three Thousand Three Hundred Thirty-Five Dollars ($63,335) on the last day of each such Lease Year. (d) Upon the Expansion Space Commencement Date (as defined in Exhibit B hereto), the Lease shall be deemed amended such that the definition of Premises shall include the Expansion Space and the definition of Building shall include the newly constructed building in which the Expansion Space is located (the "Expansion Building"). Tenant's occupancy of the Expansion Space shall be subject to all of the terms and conditions of this Lease except as specifically provided in Paragraph 52(f) below. Without limiting the generality of the foregoing, Monthly Base Rent shall be due for the Expansion Space at the same rate per square foot as then being charged for the original Premises (such amount being determined by dividing the Monthly Base Rent by the original Premises square footage) and shall be subject to the same adjustments as set forth in the Lease, and Tenant's Proportionate Share(s) shall be adjusted to include the addition of the Expansion Space, provided that any monetary limitation on Expenses set forth in any provision of Paragraph 4 shall apply separately to each building constituting a part of the Premises hereunder, except that the $265,000 monetary limitation in Paragraph 4(b)(o) shall remain at $25,000. If, for any reason whatsoever, the Expansion Space Commencement Date does not occur on or before the Requested Delivery Date, the Expansion Option shall not be void or voidable, nor shall Landlord, or Landlord's Agents, be liable to Tenant for any loss or damage resulting therefrom. Tenant shall not be liable for Rent with respect to the Expansion Space until the Expansion Space Commencement Date. Upon request from Landlord, Tenant shall enter into a written amendment of the Lease prepared by Landlord and memorializing the expansion of the Premises to include the Expansion Space and the adjustment of the other economic terms of the Lease. (e) In consideration of Landlord's granting the Expansion Option and with the understanding that Landlord would not have otherwise agreed to the Expansion Option, Tenant shall pay to Landlord upon execution of this Lease and on the first day of each succeeding calendar month the sum of Sixteen Thousand Dollars ($16,000) (the "Carry Costs") until such time as (i) Tenant notifies Landlord that it has relinquished the Expansion Option, (ii) the Expansion Option expires in accordance with the terms of this Paragraph 52 or, (iii) if the Tenant delivers an Expansion Notice, until ten (10) months prior to the requested Delivery Date (said amounts to be prorated during any partial calendar months hereunder). Notwithstanding the foregoing, Tenant may elect, by delivering written notice of such election to Landlord upon execution of this Lease, to pay on the Commencement Date all carry Costs due for the period of time from the date of this Lease through the Commencement Date, together with interest thereon at the rate of twelve percent (12%) per annum. All Carry Costs due from and after the Commencement Date shall be paid to Landlord on a monthly basis as set forth above. Any delays in delivery of the Expansion Space beyond the Requested Delivery Date due to Tenant Delays or Force Majeure Events, as such terms are defined in Exhibit B hereto, shall result in Tenant's continued payment of Carry Costs for the time attributable to the such delay. (f) Promptly after the exercise of the Expansion Option by Tenant, Landlord and Tenant shall enter into a building construction agreement and a premises construction agreement (collectively, the "Expansion Construction Agreements') in form and content substantially similar to the Building Construction Agreement and Premises Construction Agreement attached hereto as Exhibit A and Exhibit B, respectively, which Expansion Construction Agreements shall set forth the rights and obligations of the parties with respect to the construction of the Expansion Building and the Premises. Without limiting the foregoing, the building construction agreement for the Expansion Space shall include Conditions substantially similar to those set forth on Exhibit H with respect to the Original Premises and performance periods for the satisfaction of such Conditions of equivalent duration to the performance periods specified on said Exhibit H (as measured by the time periods from the date of this Lease to the respective Initial Window Dates). Landlord shall provide Tenant with a Tenant's Allowance equal to the Expansion Space TI Dollars, as defined below, multiplied by the Expansion Space square footage, as finally determined. As used in this Paragraph, the "Expansion Space TI Dollars" shall mean an amount equal to Thirty Dollars ($30.00) increased at an annualized rate of four percent (4%) from the date of this Lease until the date the Expansion Notice is properly given.
Appears in 1 contract
Sources: Lease Agreement (Corgentech Inc)
Right to Expand. (a) Tenant shall have one (1) option to expand (the "Expansion Option") the Premises to include an approximately 50,400 square feet Building (the "Expansion Space") to be constructed in the Project in the area shown on the attached Exhibit G (the "Expansion Land")Second Floor. The Expansion Option shall be effective only if Tenant is not in Default under this Lease, nor has any event occurred which with the giving of notice or the passage of time, or both, would constitute a default hereunder, either at the time of exercise of the Expansion Option or the time of delivery of the Expansion Space. The Expansion option shall be personal to Tenant and any transferee of a permitted transfer and shall not be assignable or otherwise transferable to any other permitted assignee, subtenant or other third parties. in order to exercise the expansion option, Tenant shall give written notice to Landlord (the "Expansion Notice") on or before the date (the "Final Expansion Notice Date") that is the last day of Following the first Lease Year. If time that Landlord leases the Second Floor Expansion Notice is not so given, the Expansion Option shall, except as provided in (b) below, automatically lapse; Tenant hereby expressly acknowledges and agrees that time is of the essence for purposes of delivering the Expansion Notice and that Tenant's failure Space to do so by the Final Expansion Notice Date will relieve Landlord of any obligation under this Paragraph 52.
(b) Notwithstanding the terms of Paragraph 52(a) abovea third party, Tenant shall have a on-going right during the Base Term, but not the obligation, subject to the terms of this Section 39(a), to expand the Premises (the “Expansion Right”) to include the Second Floor Expansion Space upon the terms and conditions in this Section 39(a). For purposes of this Section 39(a), “Second Floor Expansion Space” shall mean any space on the second floor of the Building, which is not occupied by a tenant, or which is occupied by a then-existing tenant whose lease is expiring within 6 months or less and such tenant does not wish to renew (whether or not such tenant has a right to extend renew) its occupancy of such space, or which is occupied by a then-existing tenant whose lease is terminating prior to its scheduled expiration date. If there is any Second Floor Expansion Space in the Final Building, Landlord shall, at such time as Landlord shall elect prior to marketing such Second Floor Expansion Notice Date Space for lease by third parties, deliver to the last day of the second Lease Year, provided that, on or before the expiration of the first Lease Year Tenant delivers written notice (the “Expansion Notice”) of such election Second Floor Expansion Space, together with the terms and conditions on which Landlord is prepared to Landlord (lease Tenant such Second Floor Expansion Space. For the "Extension Notice"). If the Extension Notice is not so given, the Expansion Option shall automatically lapse; Tenant hereby expressly acknowledges and agrees that time is avoidance of the essence for purposes of delivering the Extension Notice and that Tenant's failure to do so by said date will relieve Landlord of any obligation under this Paragraph 52. If Tenant delivers the Extension Notice in a timely manner as provided hereindoubt, Tenant shall have until the end be required to exercise its right under this Section 39(a) with respect to all of the second Lease Year, (the "extended Expansion Notice Date") to exercise the Expansion Option by delivering an Expansion Notice to Landlord. If Tenant provides an Extension Notice to Landlord and thereafter fails to exercise the Expansion Option space described in accordance with this Paragraph 52(b), the monthly Base Rent then payable under this Lease shall be increased by five cents ($0.05) per square foot and such increased Base Rent shall thereafter be increased by one hundred and four percent (104%) of the Monthly Base Rent for the preceding Lease Year. By way of example, the monthly Base Rent payable hereunder on a square footage basis during the third Lease Year shall be adjusted to equal $87,014.59 which amount equals (i) the monthly Base Rent for the Third Lease Year, plus (ii) five cents ($.05) per square foot and therefore, the monthly Base Rent for the fourth Lease Year shall be $90,495.17.
(c) The Expansion Notice shall specify the date Tenant desires to occupy the Expansion Space (the "Requested Delivery Date"). The Requested Delivery Date shall be no earlier than ten (10) months and no later than thirty-six (36) months after the Commencement Date. Upon delivery of the expansion Notice and as a condition precedent to the effectiveness thereof, Tenant shall (i) increase the security Deposit under this Lease by Seventy-Five Thousand Dollars ($75,000) to a total of One Hundred Fifty Thousand Dollars ($156,000), and (ii) provide Landlord with detailed financial statements and other information reasonably acceptable to Landlord demonstrating that; as of the date of the Expansion Notice, Tenant has cash including any space in addition to the Second Floor Expansion Space that is described in the Expansion Notice, which additional space shall be deemed to ***Confidential Treatment Requested*** ***Text Omitted and cash equivalents, as defined in Paragraph 4 above, greater than Ten Million Dollars ($10,000,000) and a current ratio of 1.2 or greater. As used in this Paragraph, "current ratio" shall mean the number obtained by dividing Tenant's current assets by current liabilities, as such amounts are shown on Tenant's then most recent quarterly filing (Form 10-Q) Filed Separately with the Securities and Exchange Commission. Notwithstanding the condition in (ii) above, the Expansion Notice shall be effective if Tenant delivers to Landlord, as additional security for the full and faithful performance of Tenant's covenants and obligations under this Lease, a letter of credit, in the form and subject to the terms and conditions set forth in Paragraph 4 above, in the amount of Five Hundred Thousand Dollars ($500,000). Notwithstanding the terms of Paragraph 4, during the period from the Expansion Space Commencement Date through the sixth Lease Year, the amount of such letter of credit shall be reduced by Twenty Thousand Dollars ($20,000) on the last day of each such Lease Year. During the period from the seventh Lease Year through the Expiration Date, the amount of the letter of credit shall be reduced by Sixty-Three Thousand Three Hundred Thirty-Five Dollars ($63,335) on the last day of each such Lease Year.
(d) Upon the Expansion Space Commencement Date (as defined in Exhibit B hereto), the Lease shall be deemed amended such that the definition of Premises shall include the Expansion Space and the definition of Building shall include the newly constructed building in which the Expansion Space is located (the "Expansion Building"). Tenant's occupancy of the Expansion Space shall be subject to all of the terms and conditions of this Lease except as specifically provided in Paragraph 52(f) below. Without limiting the generality of the foregoing, Monthly Base Rent shall be due for the Expansion Space at the same rate per square foot as then being charged for the original Premises (such amount being determined by dividing the Monthly Base Rent by the original Premises square footage) and shall be subject to the same adjustments as set forth in the Lease, and Tenant's Proportionate Share(s) shall be adjusted to include the addition of the Expansion Space, provided that any monetary limitation on Expenses set forth in any provision of Paragraph 4 shall apply separately to each building constituting a part of the Premises hereunder, except that the $265,000 monetary limitation in Paragraph 4(b)(o) shall remain at $25,000. If, for any reason whatsoever, the Expansion Space Commencement Date does not occur on or before the Commission Confidential Treatment Requested Delivery Date, the Expansion Option shall not be void or voidable, nor shall Landlord, or Landlord's Agents, be liable to Tenant for any loss or damage resulting therefrom. Tenant shall not be liable for Rent with respect to the Expansion Space until the Expansion Space Commencement Date. Upon request from Landlord, Tenant shall enter into a written amendment of the Lease prepared by Landlord and memorializing the expansion of the Premises to include the Expansion Space and the adjustment of the other economic terms of the Lease.
(e) In consideration of Landlord's granting the Expansion Option and with the understanding that Landlord would not have otherwise agreed to the Expansion Option, Tenant shall pay to Landlord upon execution of this Lease and on the first day of each succeeding calendar month the sum of Sixteen Thousand Dollars ($16,000) (the "Carry Costs") until such time as (i) Tenant notifies Landlord that it has relinquished the Expansion Option, (ii) the Expansion Option expires in accordance with the terms of this Paragraph 52 or, (iii) if the Tenant delivers an Expansion Notice, until ten (10) months prior to the requested Delivery Date (said amounts to be prorated during any partial calendar months hereunder). Notwithstanding the foregoing, Tenant may elect, by delivering written notice of such election to Landlord upon execution of this Lease, to pay on the Commencement Date all carry Costs due for the period of time from the date of this Lease through the Commencement Date, together with interest thereon at the rate of twelve percent (12%) per annum. All Carry Costs due from and after the Commencement Date shall be paid to Landlord on a monthly basis as set forth above. Any delays in delivery of the Expansion Space beyond the Requested Delivery Date due to Tenant Delays or Force Majeure Events, as such terms are defined in Exhibit B hereto, shall result in Tenant's continued payment of Carry Costs for the time attributable to the such delay.
(f) Promptly after the exercise of the Expansion Option by Tenant, Landlord and Tenant shall enter into a building construction agreement and a premises construction agreement (collectively, the "Expansion Construction Agreements') in form and content substantially similar to the Building Construction Agreement and Premises Construction Agreement attached hereto as Exhibit A and Exhibit B, respectively, which Expansion Construction Agreements shall set forth the rights and obligations of the parties with respect to the construction of the Expansion Building and the Premises. Without limiting the foregoing, the building construction agreement for the Expansion Space shall include Conditions substantially similar to those set forth on Exhibit H with respect to the Original Premises and performance periods for the satisfaction of such Conditions of equivalent duration to the performance periods specified on said Exhibit H (as measured by the time periods from the date of this Lease to the respective Initial Window Dates). Landlord shall provide Tenant with a Tenant's Allowance equal to the Expansion Space TI Dollars, as defined below, multiplied by the Expansion Space square footage, as finally determined. As used in this Paragraph, the "Expansion Space TI Dollars" shall mean an amount equal to Thirty Dollars ($30.00) increased at an annualized rate of four percent (4%) from the date of this Lease until the date the Expansion Notice is properly given.Under
Appears in 1 contract
Sources: Lease Agreement
Right to Expand. (a) Tenant shall have one (1) option the right, but not the obligation, to expand the Premises (the "Expansion OptionEXPANSION RIGHT") the Premises to include an approximately 50,400 square feet Building any space available in the building located at 9373 Towne Centre Drive (the "EXPANSION SPACE") upon the terms and c▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇ ▇▇▇▇▇on. If Vical Inc., does not exercise any of its extension rights with respect to the Expansion Space") , Landlord shall deliver to be constructed in the Project in the area shown on the attached Exhibit G Tenant written notice (the "Expansion LandEXPANSION NOTICE"). The Expansion Option shall be effective only if Tenant is not in Default under this Lease, nor has any event occurred which with ) of the giving of notice or the passage of time, or both, would constitute a default hereunder, either at the time of exercise availability of the Expansion Option or Space, together with the time of delivery terms and conditions on which Landlord is prepared to lease to Tenant such portion of the Expansion Space. The Expansion option shall be personal to Tenant and any transferee of a permitted transfer and shall not be assignable or otherwise transferable to any other permitted assignee, subtenant or other third parties. in order to exercise the expansion option, Tenant shall give written notice to Landlord (the "Expansion Notice") on or before the date (the "Final Expansion Notice Date") that is the last day have 10 business days following delivery of the first Lease Year. If the Expansion Notice is not so given, the Expansion Option shall, except as provided in (b) below, automatically lapse; Tenant hereby expressly acknowledges and agrees that time is to deliver to Landlord written notification of the essence for purposes of delivering the Expansion Notice and that Tenant's failure to do so by the Final Expansion Notice Date will relieve Landlord of any obligation under this Paragraph 52.
(b) Notwithstanding the terms of Paragraph 52(a) above, Tenant shall have the right to extend the Final Expansion Notice Date to the last day of the second Lease Year, provided that, on or before the expiration of the first Lease Year Tenant delivers written notice of such election to Landlord (the "Extension Notice"). If the Extension Notice is not so given, the Expansion Option shall automatically lapse; Tenant hereby expressly acknowledges and agrees that time is of the essence for purposes of delivering the Extension Notice and that Tenant's failure to do so by said date will relieve Landlord of any obligation under this Paragraph 52. If Tenant delivers the Extension Notice in a timely manner as provided herein, Tenant shall have until the end of the second Lease Year, (the "extended Expansion Notice Date") to exercise the Expansion Option by delivering an Expansion Notice to Landlord. If Tenant provides an Extension Notice to Landlord and thereafter fails to exercise the Expansion Option in accordance with this Paragraph 52(b), the monthly Base Rent then payable under this Lease shall be increased by five cents ($0.05) per square foot and such increased Base Rent shall thereafter be increased by one hundred and four percent (104%) of the Monthly Base Rent for the preceding Lease Year. By way of example, the monthly Base Rent payable hereunder on a square footage basis during the third Lease Year shall be adjusted to equal $87,014.59 which amount equals (i) the monthly Base Rent for the Third Lease Year, plus (ii) five cents ($.05) per square foot and therefore, the monthly Base Rent for the fourth Lease Year shall be $90,495.17.
(c) The Expansion Notice shall specify the date Tenant desires to occupy the Expansion Space (the "Requested Delivery Date"). The Requested Delivery Date shall be no earlier than ten (10) months and no later than thirty-six (36) months after the Commencement Date. Upon delivery of the expansion Notice and as a condition precedent to the effectiveness thereof, Tenant shall (i) increase the security Deposit under this Lease by Seventy-Five Thousand Dollars ($75,000) to a total of One Hundred Fifty Thousand Dollars ($156,000), and (ii) provide Landlord with detailed financial statements and other information reasonably acceptable to Landlord demonstrating that; as of the date of the Expansion Notice, Tenant has cash Right and cash equivalents, as defined in Paragraph 4 above, greater than Ten Million Dollars ($10,000,000) and a current ratio of 1.2 or greater. As used in this Paragraph, "current ratio" shall mean the number obtained by dividing Tenant's current assets by current liabilities, as such amounts are shown on Tenant's then most recent quarterly filing (Form 10-Q) with the Securities and Exchange Commission. Notwithstanding the condition in (ii) above, the Expansion Notice shall be effective if Tenant delivers to Landlord, as additional security for the full and faithful performance acceptance of Tenant's covenants and obligations under this Lease, a letter of credit, in the form and subject to the terms and conditions set forth in Paragraph 4 above, in the amount of Five Hundred Thousand Dollars Expansion Notice.
($500,000). Notwithstanding b) If: (i) Tenant fails to timely deliver notice accepting the terms of Paragraph 4an Expansion Notice, during or (ii) after the expiration of a period of 10 days from the date Tenant gives notice accepting Landlord's offer to lease such Expansion Space, no lease amendment or lease agreement for the Expansion Space Commencement Date through has been executed, and Landlord tenders to Tenant an amendment to this Lease setting forth the sixth Lease Year, terms for the amount of such letter of credit shall be reduced by Twenty Thousand Dollars ($20,000) on the last day of each such Lease Year. During the period from the seventh Lease Year through the Expiration Date, the amount of the letter of credit shall be reduced by Sixty-Three Thousand Three Hundred Thirty-Five Dollars ($63,335) on the last day of each such Lease Year.
(d) Upon the Expansion Space Commencement Date (as defined in Exhibit B hereto), the Lease shall be deemed amended such that the definition of Premises shall include the Expansion Space and the definition of Building shall include the newly constructed building in which the Expansion Space is located (the "Expansion Building"). Tenant's occupancy rental of the Expansion Space shall be subject to all of the terms and conditions of this Lease except as specifically provided in Paragraph 52(f) below. Without limiting the generality of the foregoing, Monthly Base Rent shall be due for the Expansion Space at the same rate per square foot as then being charged for the original Premises (such amount being determined by dividing the Monthly Base Rent by the original Premises square footage) and shall be subject to the same adjustments as consistent with those set forth in the Lease, Expansion Notice and Tenant's Proportionate Share(s) shall be adjusted to include the addition of the Expansion Space, provided that any monetary limitation on Expenses set forth in any provision of Paragraph 4 shall apply separately to each building constituting a part of the Premises hereunder, except that the $265,000 monetary limitation in Paragraph 4(b)(o) shall remain at $25,000. If, for any reason whatsoever, the Expansion Space Commencement Date does not occur on or before the Requested Delivery Date, the Expansion Option shall not be void or voidable, nor shall Landlord, or Landlord's Agents, be liable to Tenant for any loss or damage resulting therefrom. Tenant shall not be liable for Rent with respect to the Expansion Space until the Expansion Space Commencement Date. Upon request from Landlord, Tenant shall enter into a written amendment of the Lease prepared by Landlord and memorializing the expansion of the Premises to include the Expansion Space and the adjustment of the other economic terms of the Lease.
(e) In consideration of Landlord's granting the Expansion Option and with the understanding that Landlord would not have otherwise agreed to the Expansion Option, Tenant shall pay to Landlord upon execution of this Lease and on the first day of each succeeding calendar month the sum of Sixteen Thousand Dollars ($16,000) (the "Carry Costs") until such time as (i) Tenant notifies Landlord that it has relinquished the Expansion Option, (ii) the Expansion Option expires in accordance consistent with the terms of this Paragraph 52 or, (iii) if the Lease and Tenant delivers an Expansion Notice, until ten (10) months prior fails to the requested Delivery Date (said amounts to be prorated during any partial calendar months hereunder). Notwithstanding the foregoingexecute such Lease amendment within 10 business days following such tender, Tenant may elect, by delivering written notice of such election to Landlord upon execution of this Lease, to pay on the Commencement Date all carry Costs due for the period of time from the date of this Lease through the Commencement Date, together with interest thereon at the rate of twelve percent (12%) per annum. All Carry Costs due from and after the Commencement Date shall be paid deemed to Landlord on a monthly basis as set forth above. Any delays in delivery of the have waived its right to lease such Expansion Space beyond the Requested Delivery Date due to Tenant Delays or Force Majeure Events, as such terms are defined in Exhibit B hereto, shall result in Tenant's continued payment of Carry Costs for the time attributable to the such delaySpace.
(f) Promptly after the exercise of the Expansion Option by Tenant, Landlord and Tenant shall enter into a building construction agreement and a premises construction agreement (collectively, the "Expansion Construction Agreements') in form and content substantially similar to the Building Construction Agreement and Premises Construction Agreement attached hereto as Exhibit A and Exhibit B, respectively, which Expansion Construction Agreements shall set forth the rights and obligations of the parties with respect to the construction of the Expansion Building and the Premises. Without limiting the foregoing, the building construction agreement for the Expansion Space shall include Conditions substantially similar to those set forth on Exhibit H with respect to the Original Premises and performance periods for the satisfaction of such Conditions of equivalent duration to the performance periods specified on said Exhibit H (as measured by the time periods from the date of this Lease to the respective Initial Window Dates). Landlord shall provide Tenant with a Tenant's Allowance equal to the Expansion Space TI Dollars, as defined below, multiplied by the Expansion Space square footage, as finally determined. As used in this Paragraph, the "Expansion Space TI Dollars" shall mean an amount equal to Thirty Dollars ($30.00) increased at an annualized rate of four percent (4%) from the date of this Lease until the date the Expansion Notice is properly given.
Appears in 1 contract