PRO-LANDLORD TENANT RENEWAL OPTION FOR MARKET RENT CONSIDERING TENANT'S CREDIT STRENGTH AND SIZE AND LOCATION OF PREMISES LEASE EXHIBIT
EXHIBIT [INSERT APPLICABLE LETTER]
PRO-LANDLORD TENANT RENEWAL OPTION FOR MARKET RENT CONSIDERING TENANT'S CREDIT STRENGTH AND SIZE AND LOCATION OF PREMISES
Provided no event of default by Tenant under this Lease then exists and Tenant is then (both as of the time of such election and on the commencement of the extended term described hereinbelow) leasing (and the Premises thus consists of) at least all of the original Premises (except as otherwise set forth in subpart 2 below), Tenant, but not any assignee or sublessee of Tenant, may renew the Term of this Lease for one (1) additional successive period of five (5) years, on the same terms and conditions provided in this Lease (except as set forth below), by delivering written notice of the exercise thereof to Landlord as provided hereinbelow. Landlord and Tenant shall, if Tenant so elects to extend the Term pursuant hereto, extend same on the same terms and conditions provided in this Lease, except as follows:
1. The Base Rental payable for each month during each such extended term shall be the amount equal to the then prevailing Renewal Rental Rate (as defined hereinbelow); and
2. Tenant shall have no further renewal options unless expressly granted by Landlord in writing.
For purposes hereof, the “Renewal Rental Rate” (herein so called) shall mean the amount equal to the then-prevailing market base rental rate then payable by tenants having a credit strength substantially similar to that of Tenant, for new leases of premises of equivalent quality, size, utility and location as the Premises, including any additions thereto, located within the immediate market area of the Premises and leased for an extended term approximately equal to the subject extended term, and taking into consideration Landlord’s costs for tenant improvements, commissions, architectural fees and other cash and non-cash tenant inducements which may or may not be granted in connection with any such extension and renewal of the Term of the Lease (it being hereby acknowledged and agreed that Landlord shall not be required in connection with any such renewal or extension to offer or grant any such concessions or inducements except to the extent that it is determined and/or mutually agreed upon by Landlord and Tenant, pursuant to the process set forth in this paragraph below, that such concessions or inducements are to be granted by Landlord to Tenant as a part of the determined Renewal Rental Rate). If Tenant desires to renew the Term of the Lease of the Premises pursuant to this Exhibit “__”, Tenant must notify Landlord in writing of Tenant’s intention to so renew on or before the date which is at least two hundred seventy (270) days, but no more than three hundred sixty-five (365) days, prior to the date of expiration of the initial Term of the Lease (unless Landlord and Tenant otherwise mutually agree in writing upon the terms of a renewal of the Term prior to such 365-day period). Landlord shall, within the next thirty (30) days immediately following Landlord’s receipt of Tenant’s said notification, notify Tenant in writing of Landlord’s determination of the Renewal Rental Rate for the extended term, and Tenant shall, within the next fifteen (15) days immediately following Tenant’s receipt of Landlord’s determination of such Renewal Rental Rate, notify Landlord in writing of Tenant’s acceptance or rejection of Landlord’s determination of such Renewal Rental Rate. If Tenant timely notifies Landlord of Tenant’s acceptance of Landlord’s determination of such Renewal Rental Rate, the Lease shall be extended as provided herein and Landlord and Tenant shall enter into an amendment to the Lease to reflect the extension of the Term of the Lease and change in Base Rental in accordance with this Exhibit ”__”. If (i) Tenant timely notifies Landlord in writing of Tenant’s rejection of Landlord’s determination of such Renewal Rental Rate, or (ii) Tenant does not notify Landlord in writing of Tenant’s acceptance or rejection of Landlord’s determination of such Renewal Rental Rate within the aforesaid fifteen (15) day period, then, in either such event, the parties will then attempt, within the next thirty (30) days following either (a) Landlord’s receipt of Tenant’s notice of rejection of Landlord’s determination or (b) expiration of the aforesaid thirty (30) day period without notification from Tenant of acceptance or rejection of Landlord’s determination, as the case may be, to agree upon the Renewal Rental Rate. If the Landlord and Tenant are able to agree upon the Renewal Rental Rate during such thirty (30) day period, then the Lease shall be extended as provided herein and Landlord and Tenant shall enter into an amendment to the Lease to reflect the extension of the Term of the Lease and change in Base Rental in accordance with this Exhibit “__”; but if the Landlord and Tenant are unable to so agree upon the Renewal Rental Rate within such fifteen (15) day period, then within fifteen (15) days following the expiration of the aforesaid 15-day period, Landlord and Tenant shall each appoint an independent real estate appraiser who has been a member of the Appraisal Institute of America (MAI) for at least five (5) years prior to such date and each of which has at least ten (10) years’ commercial real estate appraisal experience for office space in office buildings in the _______________ area of the state of _____________ (together with the third Appraiser described below, herein called the “Appraisers”), and such Appraisers shall then, within ten (10) days after their designation, select an independent third Appraiser with like qualifications; provided, that Landlord and Tenant shall then each provide all three such Appraisers with the Renewal Rental Rate determined and proposed by each such party, and the aforesaid three Appraisers shall then decide, within fifteen (15) business days after the selection of the third Appraiser, which Renewal Rental Rate proposed by Landlord or Tenant shall be the Renewal Rental Rate for the applicable extended term, and such determination shall be binding upon Landlord and Tenant and Landlord and Tenant shall then enter into an amendment to the Lease to reflect the extension of the Term of the Lease and the change in Base Rental in accordance with this Exhibit “__”.
Landlord shall lease the Premises to Tenant during the extended term in the condition of such Premises as existed on the date of expiration of the initial term of the Lease, and Landlord shall not (unless otherwise agreed upon in writing executed by Landlord at such time and/or except as is otherwise provided in Paragraph 2 of this Exhibit “__” above) be required to undertake any work or improvements or to provide to Tenant any allowances or other tenant concessions or inducements in connection with Tenant’s renewal and extension of the Lease Term with respect to the Premises pursuant hereto. Tenant’s rights under this Exhibit ”__” shall terminate if (i) this Lease or Tenant’s right to possession of the Premises is terminated, (ii) Tenant assigns any of its interest in this Lease (except for an assignment permitted in accordance with the terms and conditions of the Lease which results in the assignee thereof receiving assignment of all of Tenant’s interests in and under the Lease and in and to the Premises) or sublets any portion of the Premises, or (iii) Tenant fails to timely exercise its option under this Exhibit ”__”, time being of the essence with respect to Tenant’s exercise thereof. Notwithstanding anything to the contrary set forth in this Exhibit “__”, it is hereby agreed that no assignee (other than an assignee who has received assignment, in accordance with all terms and conditions of the Lease, of all of Tenant’s interests in and under the Lease and in and to the Premises) or other transferee of any of Tenant’s interests in the Lease nor sublessee or other transferee of any of the Premises may exercise any of Tenant’s options granted pursuant to this Exhibit “__”. |
