D. Option to Renew. Tenant shall have one (1) right and option to extend the term of this Lease for a period of three (3) to five (5) years if Landlord receives written notice of exercise of such option (which notice must include the period (not less than three (3) years nor more than five (5) years) in which this Lease is being extended, the “Renewal Notice”) on or before December 15th, 2017. TIME IS OF THE ESSENCE. If Tenant timely delivers a Renewal Notice, all of the terms and conditions of the Lease shall apply to the extended lease, including the amount of minimum rent as set forth in Section 3.A.
Coordination of benefits revenue is derived from contracts with state governments and Medicaid managed care plans that typically span 3 to 5 years with the option to renew. Types of services within these contracts could include: (a) the identification of erroneously paid claims; (b) the delivery of verified commercial insurance coverage information; (c) the identification of paid claims where another third party is liable; and (d) the identification and enrollment of Medicaid members who have access to affordable employer insurance. Most of these types of service contracts contain multiple promises tasks/deliverables, all of which are not distinct separately identifiable as they are highly interrelated and indistinct within the context of the contract. Therefore, the promises represent each type of service represents a single, distinct performance obligation for the types of services we offer. Revenue derived from these performance obligations is largely based on variable consideration where, based on the number of claims or amount of findings the Company identified, a contingent or fixed transaction price/recovery percentage is allocated to each distinct performance obligation. The Company utilizes the expected value method to estimate the variable consideration related to the transaction price for its service contracts. Key inputs and assumptions in determining variable consideration includes identified pricing and expected recoveries and/or savings. The expected recoveries and/or savings are based on historical experience of information received from our customers. Revenue is recognized at a point in time when our customers realize economic benefits from our services when our services are completed. , or as, the performance obligation is satisfied. Due to the timing and volume of information provided from our customers, range of performance obligations and the differing consideration associated with each type of contract, revenue may be recognized in varying increments. Generally, coordination of benefit contract payment terms are not standardized within the respective contract; however, payment is typically due on demand and there is a clear and distinct history of customers making consistent payments.
OPTION TO RENEW. If Tenant is not then in default of the terms, covenants and conditions herein contained, Tenant shall have the option to renew this Lease for two (2)additional terms of three (3)years each. In the event Tenant desires to exercise said option, Tenant shall give written notice of such fact to Landlord not less than six (6)months prior to the expiration of the then 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 Landlords determination, Tenant must notify Landlord in writing on or before the date that is four (4)months prior to the commencement of the 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 the valuations determined by such appraisers are within ten percent (10%)of one another, the fair market rental value of the Premises shall be the average of their figures. If the valuations determined by such appraisers are outside ten percent (10%)of one another, the two previously chosen appraisers shall jointly appoint a third appraiser with similar qualifications who shall independently determine the fair market rental value of the Premises 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.
2.2. Option to Renew. Provided Tenant is not then in default of any of the terms and conditions of this Lease, the Tenant shall have one (1)option to extend the Term for an additional five (5)years for such Rent, as defined below, as the parties shall at that time negotiate. Tenant shall give Landlord at least 60 day written notice of its desire to exercise this option. The parties shall during the next succeeding 30 days negotiate the amount of the Rent to be paid for the extended Term. In the event the parties are unable to negotiate such Rent for the extended period, then the Term shall not be extended and the Lease shall terminate as herein otherwise provided.
10.Option to Renew. 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 Term as to part (at least 75% of the Premises) or all of the Premises and any expansion space added to the Premises for an additional five (5)years each. If less than all of the Premises are to be leased, then that portion of the Premises which is not being leased by Tenant must be in such configuration that it can reasonably be leased by the Landlord. The Base Rent for the 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.
10. Option to Renew. Provided Tenant is not then in default of any terms and conditions of the Lease, Tenant shall have two (2)options to extend the Term as to part (at least 75% of the Premises) or all of the Premises for an additional five (5)years each. The Base Rent for the 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 then Prevailing Market Rental Rate (PMRR). The Base Rent for each subsequent year of each renewal Term shall increase by three percent (3%) on December 1. If less than all of the Premises are to be leased, then that portion of the Premises which is not being leased by Tenant must be in such configuration that it can reasonably be leased by the Landlord. PMRR means the annual amount of rent that a tenant would pay and a willing landlord would accept in an arms length bona fide offer for a lease based upon other lease transactions made in the Building and other comparable office buildings in the Central East Quadrant area of Salt Lake City, Utah, within the previous six (6)months, taking into consideration all relevant terms and conditions of any comparable leasing transaction, including without limitation: (i)location, quality and age of the building; (ii)use and size of the space in question; (iii)location and or floor level in the building; (iv)that there will be no new leasehold improvement allowances provided; (v)there will be no abatement of rental or other charges; (vi)parking; (vii) lease takeovers/assumptions; (viii)relocation allowances; (ix)there will be no refurbishment and repainting allowances; (x)distinction between gross and net leases, (xi)extent of services provided or to be provided; (xii)base year or dollar amount for escalation purposes (both operating costs and ad valorem taxes); (xiii) credit standing and financial stature of the tenant; (xiv)length of term and (xv)Landlord will not be required to pay additional brokerage fees. Each option needs to be exercised by Tenant giving Landlord written notice of exercise at least six (6)month prior to the Termination Date.
3. Options: Tenant shall have two (2)five (5) year options to extend the term of the Lease. Tenant shall exercise its right to by written notice to Landlord delivered on or before 120 days prior to the expiration of the Term or First Option Term. In the event Landlord does not received Tenants notice as stated above, Tenant shall not lose its option to renew unless and until the Tenant has had at least ten (10)days after receipt of written notice from Landlord in which to exercise its option to renew. Options shall be personal to Tenant.