Common use of Adjustment to Base Rent Clause in Contracts

Adjustment to Base Rent. The Base Rent, commencing on the first day of the calendar month immediately following the calendar month in which the third anniversary of the Commencement Date occurs ("INITIAL ADJUSTMENT DATE") shall be adjusted in accordance with the provisions of this Section 3.3 and shall, thereafter, be adjusted annually on each anniversary of the Initial Adjustment Date (each date an "ADJUSTMENT DATE") during the balance of the Term (including the First Extended Term and the Second Extended Term, if applicable). Such adjustment to Base Rent shall reflect two-thirds (2/3) of any increase in the Consumer Price Index and shall be calculated as follows: The base for computing the adjustment is the Consumer Price Index (All Items) for Urban Consumers for the San Francisco-Oakland-San Xxxx Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics ("INDEX") which is in effect immediately prior to the second anniversary of the Commencement Date ("BEGINNING INDEX"). The Index published and in effect on the 30th day preceding the Initial Adjustment Date and on the 30th day preceding each Adjustment Date thereafter ("ADJUSTMENT INDEX") is to be used in determining the amount of the increase from one year to the next. Beginning as of the Initial Adjustment Date and continuing on each Adjustment Date thereafter, the Base Rent shall be increased to equal the product achieved by multiplying the initial Base Rent amount by a fraction, the numerator of which shall be an amount equal to the sum of (i) the Beginning Index plus (ii) two-thirds (2/3) of the amount, if any, by which the Adjustment Index is greater than the Beginning Index, and the denominator of which will be the Beginning Index. Notwithstanding the foregoing, the Base Rent shall not be increased by more than six percent (6%) nor less than four percent (4%) of the Base Rent for the immediately preceding year in any one year period. If the Index is changed so that the base year differs from that described above, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. On adjustment of the Base Rent as provided in Section 3.3 above, the parties shall immediately execute an amendment to the Lease stating the new Base Rent.