World431_DM_02

MGR Real Estate Inc. ("MGR") and AI Automation Group, LLC ("AIAG") entered into the final lease agreement on December 12, 2025 for 2020 Main Street, Irvine, CA (the "Building"). A couple years later, AIAG began evaluating the possibility of moving its operations to Florida. On January 15, 2028, AIAG gave one hundred and twenty days’ written notice of its intent to sublease its interest to BIC Corp. (“BIC”) at a rate of $50.25 per square foot per year. MGR responded by exercising its right of ter...

Yes. AIAG may find the inability to realize increased rental value through an assignment of the Building outweighs the advantages of the relocation, since current market rates would have to be paid at the new location. Section 8B effects an unlawful restraint on alienation to the extent the advantages of the relocation do not exceed the increased cost of space at the new location.