Fill and Sign the 1 Ground Lease Template for Real Property Form

1.05[1] Example 3: Allocation of Certain Time Periods for Construction Between the Landlord and Tenant Drafted Using the Pyramiding Technique The following drafting example subdivides and unbundles definitions to illustrate how this drafting technique can be utilized to set out the allocation of certain time periods for construction between the landlord and the tenant. Note the different time lines for different components of rent, additional rents and other charges, thus creating independent commencement and running dates for measurement, and payment. The example also deals with resulting delays in the performance of either party and the impact on all of the defined measurement periods of any delays. Without reference to other facts and documents, the reader will see the benefit of precise complex definitions and also the danger that can result from the casual review of a document that employs the pyramiding of one definition upon another. Section 1.0 Definitions. "Commencement Date" shall mean the later of (a) April 1, 1996 and (b) one hundred twenty (120) days after the Plan Date. After the Commencement Date, Landlord and Tenant shall enter into a letter agreement confirming the Commencement Date, provided, however, that any failure by Tenant to execute such letter agreement shall not affect the occurrence of the Commencement Date. "Plan Date" shall mean the later of (a) December 1, 1995 and (b) the date Tenant delivers to Landlord the items required to be delivered to Landlord as set forth on Exhibit "C" attached hereto and made a part hereof with respect to Tenant's Initial Alterations, which items are subsequently approved by Landlord in accordance with Article 3 hereof. "Rent Commencement Date" shall mean, subject to the provisions of Section 31.3 hereof, the date which is the later of (a) sixteen (16) months after the Term Commencement Date and (b) January 1, 1998. "Term" shall mean a term which shall commence on the Commencement Date and shall expire on the Expiration Date. "Term Commencement Date" shall mean, subject to the provisions of Section 31.3 hereof, the later of (a) September 1, 1996 and (b) five months after the Commencement Date. Section 1.1. Landlord hereby leases to Tenant and Tenant hereby hires from Landlord the Premises for the Term to commence on the Commencement Date and to end on the Fixed Expiration Date at the annual rental rate of One Million Dollars ($1,000,000). Section 1.2. Commencing on the Term Commencement Date and ending on the Expiration Date, Tenant shall pay to Landlord an amount equal to the Site-Wide Common Area Expenses. Section 1.3. If the Rent Commencement Date shall occur on a date other than the first (1st) day of any calendar month, then on the Rent Commencement Date Tenant shall pay to Landlord an amount equal to the product of (a) the Fixed Rent then payable, divided by Three Hundred Sixty-Five (365) and (b) the number of calendar days in the period from the Rent Commencement Date to the last day of the month in which the Rent Commencement Date shall occur, both dates inclusive. ... Section 2.1. (a) Landlord, at its expense, shall cause the work listed in Exhibit "D" attached hereto and made a part hereof ("Landlord's Work") to be substantially completed in a good and worker like manner by the dates shown in Exhibit "D" attached hereto and made a part hereof. Landlord shall deliver possession of the Premises to Tenant on the Commencement Date, with that portion of Landlord's Work indicated an Exhibit "D" which is required to have been completed by April 1, 1996, having been substantially completed and the Premises shall be capable of receiving and otherwise ready for Tenant to commence the Initial Alterations, free of any noncompliance with any Requirements or any violations thereof or other conditions with respect thereto which would prevent or delay the filing of plans and specifications or the filing for and obtaining permits (building and otherwise), certificates or other filings with or from any Government Authority by Tenant in connection with the Initial Alterations. Notwithstanding the foregoing, Landlord shall grant Tenant access to the premises as of the Access Date upon all of the terms and conditions of this Lease, other than the payment of any item of Rental, to permit the commencement of the Initial Alterations, provided that from the Access Date until the Commencement Date such access shall be granted at Landlord's sole discretion, to the extent that such access will not interfere with or delay the performance of the portion of Landlord's Work remaining to be performed. Within five (5) days after Substantial Completion of Landlord's Work, Tenant shall inspect such Work and shall deliver to Landlord a notice (the "Punchlist Notice") setting forth the Punchlist Items which are not completed. Subject to the provisions of subparagraph (b) of this Section 2.1, Landlord shall promptly commence and diligently prosecute to completion the performance of the Punchlist Items.