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.
Appears in 6 contracts
Samples: Lease Agreement (Firstamerica Automotive Inc /De/), Lease Agreement (Firstamerica Automotive Inc /De/), Lease Agreement (Firstamerica Automotive Inc /De/)
Adjustment to Base Rent. The Base Rent, commencing on the first day of the calendar month immediately following the calendar month Except as otherwise provided 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----------------------- section, the Base Rent shall be increased adjusted at the beginning of each option period to equal 95% of the product achieved "fair rental value" of the Premises as determined in the following manner:
(a) Within thirty (30) days from LESSEE's notice, LESSOR and LESSEE shall meet in an effort to negotiate, in good faith, the fair rental value of the Premises as of the beginning of the applicable option period. If LESSOR and LESSEE have not agreed upon the fair rental value of the Premises at least ninety (90) days prior to the beginning of the applicable option period, the fair rental value shall be determined by multiplying appraisal, by one or more appraisers ("Appraiser(s)"). The Appraisers shall have at least five (5) years experience in the initial Base Rent amount appraisal of commercial/industrial real property in the area in which the Premises is located and shall be members of professional organizations such as M.A.I. or equivalent.
(b) If LESSOR and LESSEE are not able to agree upon the fair rental value of the Premises within the prescribed time period, then LESSOR and LESSEE shall attempt to agree in good faith upon a single Appraiser not later than seventy-five (75) days prior to the beginning of the applicable option period. If LESSOR and LESSEE are unable to agree upon a single Appraiser within such time period, then LESSOR and LESSEE shall each appoint one Appraiser not later than sixty-five (65) days prior to the beginning of the applicable option period. Within ten (10) days thereafter, the two (2) appointed Appraisers shall appoint a third Appraiser. If either LESSOR or LESSEE fails to appoint its Appraiser within the prescribed time period, the single Appraiser appointed shall determined the fair rental value of the Premises. If both parties fail to appoint Appraisers within the prescribed time periods, then the first Appraiser thereafter selected by a fractionparty shall determine the fair rental value of the Premises. Each party shall bear the cost of its own Appraiser and the parties shall share equally the cost of the single or third Appraiser, if applicable.
(c) For the purposes of such appraisal, the numerator term "fair rental value" shall mean the price that a ready and willing tenant would pay, as of the beginning of the applicable option period, as monthly rent to a ready and willing landlord of property comparable to the Premises if such property were exposed for lease on the open market for a reasonable period of time and taking into account all of the purposes for which such property may be used. Fair rental value shall take into consideration all monetary concessions being granted in connection with such comparable property, including without limitation, rent abatement concessions and tenant improvements or allowances (after deduction for the refurbishment allowance afforded LESSEE under subsection 22.2 of this Addendum) provided therefor. If a single Appraiser is chosen, then such Appraiser shall determine the fair rental value of the Premises. Otherwise, the fair rental value of the Premises shall be an amount equal to the sum arithmetic average of the two (i) the Beginning Index plus (ii) two-thirds (2/32) of the three (3) appraisals which are closest in amount, if any, by which the Adjustment Index is greater than the Beginning Index, and the denominator of which will third appraisal shall be disregarded. LESSOR and LESSEE shall instruct the Beginning Index. Notwithstanding Appraiser(s) to complete the foregoing, the Base Rent shall not be increased by more than six percent (6%) nor less than four percent (4%) determination of the Base Rent for fair rental value not later than thirty (30) days prior to the immediately preceding year in any one year beginning of the applicable option period. If the Index fair rental value is changed so that not determined prior to the base year differs from that described abovebeginning of the applicable option period, the Index then LESSEE 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 continue to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. On adjustment of pay to LESSOR the Base Rent as provided in Section 3.3 aboveapplicable to the Premises immediately prior to such extension, until the fair rental value is determined. When the fair rental value of the Premises is determined, LESSOR shall deliver notice thereof to LESSEE, and if the fair rental value is higher, LESSEE shall pay to LESSOR, within ten (10) days after receipt of such notice, the parties shall immediately execute an amendment difference between the Base Rent actually paid by LESSEE to the Lease stating LESSOR and the new Base RentRent determined hereunder.
Appears in 1 contract
Adjustment to Base Rent. The Base Rent, commencing on Rent for the first day Lease Year 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 extension period shall be an amount equal to the sum "fair rental value" of the Premises as determined in the following manner:
(ia) Within thirty (30) days from LESSEE's Election Notice, LESSOR and LESSEE shall meet in an effort to negotiate, in good faith, the Beginning Index plus fair rental value of the Premises for the first year of the option period. If LESSOR and LESSEE have not agreed upon such fair rental value of the Premises at least ninety (ii90) twodays prior to the beginning of the applicable option period, the fair rental value shall be determined by appraisal, by one or more appraisers ("Appraiser(s)"). The Appraisers shall have at least five (5) years experience in the appraisal of commercial/industrial real property in the area in which the Premises is located and shall be members of professional organizations such as M.A.I. or equivalent.
(b) If LESSOR and LESSEE are not able to agree upon the fair rental value of the Premises within the prescribed time period, then LESSOR and LESSEE shall attempt to agree in good faith upon a single Appraiser not later than seventy-thirds five (2/375) days prior to the beginning of the applicable option period. If LESSOR and LESSEE are unable to agree upon a single Appraiser within such time period, then LESSOR and LESSEE shall each appoint one Appraiser not later than sixty-five (65) days prior to the beginning of the applicable option period. Within ten (10) days thereafter, the two (2) appointed Appraisers shall appoint a third Appraiser. If either LESSOR or LESSEE fails to appoint its Appraiser within the prescribed time period, the single Appraiser appointed shall determined the fair rental value of the Premises. If both parties fail to appoint Appraisers within the prescribed time periods, then the first Appraiser thereafter selected by a party shall determine the fair rental value of the Premises. Each party shall bear the cost of its own Appraiser and the parties shall share equally the cost of the single or third Appraiser, if applicable.
(c) For the purposes of such appraisal, the term "fair rental value" shall mean the price that a ready and willing tenant would pay, as of the beginning of the applicable option period, as monthly Base Rent to a ready and willing landlord of property comparable to the Premises if such property were exposed for lease on the open market for a reasonable period of time and taking into account all of the purposes for which such property may be used. If a single Appraiser is chosen, then such Appraiser shall determine the fair rental value of the Premises. Otherwise, the fair rental value of the Premises shall be the arithmetic average of the two (2) of the three (3) appraisals which are closest in amount, if any, by which the Adjustment Index is greater than the Beginning Index, and the denominator of which will third appraisal shall be disregarded. LESSOR and LESSEE shall instruct the Beginning Index. Notwithstanding Appraiser(s) to complete the foregoing, the Base Rent shall not be increased by more than six percent (6%) nor less than four percent (4%) determination of the Base Rent for fair rental value not later than thirty (30) days prior to the immediately preceding year in any one year beginning of the applicable option period. If the Index fair rental value is changed so that not determined prior to the base year differs from that described abovebeginning of the option period, the Index then LESSEE 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 continue to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. On adjustment of pay to LESSOR the Base Rent as provided in Section 3.3 aboveapplicable to the Premises immediately prior to such extension, until the fair rental value is determined. When the fair rental value of the Premises is determined, LESSOR shall deliver notice thereof to LESSEE, and if the fair rental value is higher, LESSEE shall pay to LESSOR, within ten (10) days after receipt of such notice, the parties shall immediately execute an amendment difference between the Base Rent actually paid by LESSEE to the Lease stating LESSOR and the new Base RentRent determined hereunder.
Appears in 1 contract
Samples: Standard Industrial/Commercial Single Tenant Lease (Aetrium Inc)
Adjustment to Base Rent. The Beginning on the First anniversary of Commencement Date and annually thereafter for the duration of the Lease Term, the Base Rent payable by Tenant under Article 3 hereof shall be increased to an amount determined by multiplying the Base Rent, commencing on as adjusted from time to time, by a fraction, the first day denominator of the calendar month immediately following the calendar month in which the third anniversary of the Commencement Date occurs ("INITIAL ADJUSTMENT DATE") said fraction shall be adjusted in accordance with the provisions “Base CPI” [the twelve (12) month average 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 Urban Consumers (All Items) for Urban Consumers for Items and Commodity Groups-Chicago Area Only), or such other successor or substitute area index as may be applicable to the San Francisco-Oakland-San Xxxx Chicago 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 at Commencement Date of the Commencement Date ("BEGINNING INDEX"). The Index published Lease Term; 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 greater of the following: (ia) the Beginning Index plus (ii) two-thirds (2/3) amount of the amount, if any, by aforesaid denominator; or (b) the then most recent Consumer Price Index (12) month average as defined above and as is available at the time Base Rent is to be adjusted. If the manner in which the Adjustment Consumer Price Index is greater than determined by the Beginning IndexDepartment of Labor shall be substantially revised, and the denominator effect of which will that revision can be the Beginning Index. Notwithstanding the foregoingreasonably determined or approximated, 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 an adjustment shall be converted made in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or such revised during the Term, such other government index or computation with which it is replaced shall be used in the underlying Base Year index in order to obtain substantially the same result produce results equivalent, as nearly as possible, to those which would be have been obtained if the Consumer Price Index had not been discontinued or so revised. On adjustment If the 1967 average shall no longer be used as an index of 100,0 if any component of the Base Rent as provided Consumer Price Index is changed in Section 3.3 abovea material degree, such change shall constitute a substantial revision. If the parties Consumer Price Index shall immediately execute an amendment become unavailable to the Lease stating public because publication is discontinued, or otherwise, Landlord will substitute therefor a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall then be available, a comparable index published by a major bank or other financial institution or by a university or a recognized financial publication.
(a) In order to provide for current payments on account of increases in the Consumer Price Index over the Base CPI, Tenant agrees to pay on account to Landlord commencing on the First anniversary immediately following the commencement date of the term hereof, Tenant’s new Base Rentbase rent for the ensuing lease year, in equal monthly installments, commencing on the first (1st) day of the month following the month in which Landlord notifies Tenant. All rent adjustments payable hereunder shall be made without any deductions or set-offs whatsoever.
(b) tenant shall also pay Landlord additional rent for each lease year for which the additional rent is payable for ownership taxes and operating expenses, at Landlord’s option, in a lump sum or in equal monthly installments over the balance of the next lease year, commencing on the first (1st) day of the month next succeeding the month after which Landlord renders a statement to tenant therefor. The additional rent payable for the last lease year or last fractional calendar year of the term shall be computed on the basis of the operating expenses paid or incurred for the preceding year and Ownership Taxes based on 110% of the taxes paid by Landlord for the preceding calendar year, and both shall be payable on the termination of the tenancy as a condition precedent to the return to Tenant of Tenant’s security deposit.
Appears in 1 contract
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") Rent shall be adjusted in accordance with the provisions upward on each Anniversary Date of this Section 3.3 and shallLease (each such date being an "Adjustment Date") for the purpose of reflecting the increase, thereafterif any, be adjusted annually on each anniversary of the Initial Adjustment Date (each date an "ADJUSTMENT DATE") during the balance cost of the Term (including the First Extended Term and the Second Extended Termliving, 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: following manner:
5.2.1 The base for computing the adjustment increase in monthly rent shall be the "Index" which is the Consumer Price Index (All Items) for Urban Consumers published and in effect for the San Francisco-Oakland-San Xxxx Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics ninetieth ("INDEX"90) which is in effect immediately prior to the second anniversary of day preceding the Commencement Date ("BEGINNING INDEXBeginning Index"). The Index published and in effect on for the 30th ninetieth (90) day preceding the Initial Adjustment Date and on the 30th day preceding each Adjustment Date thereafter ("ADJUSTMENT INDEXComparison Index") is to shall be used in determining computing the amount of the increase from one year to the nextincrease. Beginning as of the Initial Adjustment Date and continuing on On each Adjustment Date thereafterDate, the Base Rent then in effect shall be increased to equal the product achieved by multiplying the initial Base Rent amount specified in Article 2A by a fraction, the numerator of which shall be an amount equal to is the sum of (i) the Beginning Comparison 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 is the Beginning Index. Notwithstanding If the foregoingComparison Index declines, the monthly rent due during the twelve (12) month period following the Adjustment Date in question shall be the same amount as the Monthly rent due immediately before the Adjustment Date in question. No adjustment of Base Rent shall not be increased by less than three percent (3%) and no more than six seven percent (6%) nor less than four percent (47%) of the Base Rent payable on the Adjustment Date.
5.2.2 As soon as the Base Rent for the next succeeding twelve (12) months is set, Landlord shall give Tenant notice of the amount of Base Rent for that succeeding twelve (12) months indicating how the new Base Rent was computed. Upon the adjustment of the Base Rent, Tenant shall, upon the request of the Landlord, promptly execute an amendment to this Lease setting forth the adjusted Base Rent. In no event shall Base Rent be reduced below the Base Rent in effect immediately preceding year in any one year period. If such Adjustment Date.
5.2.3 The delay or failure of Landlord to demand any adjustment to Base Rent shall not constitute a waiver of Landlord's right to adjust and collect the Index is changed so that the base year differs from that described above, the Index shall be converted Base Rent in accordance with the conversion factor published by the United States Department provisions 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 this Article 5.2 as to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. On adjustment of the future adjustments to Base Rent as provided in Section 3.3 above, the parties shall immediately execute an amendment or for prior periods for which Landlord is entitled to the Lease stating the new increase Base RentRent under this Article 5.
Appears in 1 contract
Samples: Office R&d Lease (Protein Polymer Technologies Inc)
Adjustment to Base Rent. The Except as otherwise provided in this section, the Base Rent, commencing on Rent for the first day Lease Year of the calendar month immediately following the calendar month in which the third anniversary of the Commencement Date occurs ("INITIAL ADJUSTMENT DATE") Extension Term shall be adjusted in accordance with at the provisions of this Section 3.3 and shall, thereafter, be adjusted annually on each anniversary beginning of the Initial Adjustment Date (each date an Extension Term to the "ADJUSTMENT DATE") during the balance fair rental value " 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 Premises as determined in the Consumer Price Index following manner:
(a) Within thirty (30) days from LESSEE's notice, LESSOR and LESSEE shall be calculated meet in an effort to negotiate, in good faith, the fair rental value of the Premises as follows: The base for computing of the adjustment is beginning of the Consumer Price Index Extension Term. If LESSOR and LESSEE have not agreed upon the fair rental value of the Premises at least one hundred twenty (All Items120) 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 days prior to the second anniversary beginning of the Commencement Date (Extension Term , the fair rental value shall be determined by appraisal, by one or more appraisers ( "BEGINNING INDEXAppraiser(s) "). The Index published Appraisers shall have at least five (5) years experience in the appraisal of commercial/industrial real property in the area in which the Premises are located and in effect on shall be members of professional organizations such as M.A.I. or equivalent.
(b) If LESSOR and LESSEE are not able to agree upon 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 fair rental value of the increase from Premises within the prescribed time period, then LESSOR and LESSEE shall attempt to agree in good faith upon a single Appraiser not later than one year hundred (100) days prior to the nextbeginning of the applicable Extension Term. Beginning If LESSOR and LESSEE are unable to agree upon a single Appraiser within such time period, then LESSOR and LESSEE shall each appoint one Appraiser not later than ninety (90) days prior to the beginning of the applicable Extension Term. Within ten (10) days thereafter, the two (2) appointed Appraisers shall appoint a third Appraiser. If either LESSOR or LESSEE fails to appoint its Appraiser within the prescribed time period, the single Appraiser appointed shall determine the fair rental value of the Premises. If both parties fail to appoint Appraisers within the prescribed time periods, then the first Appraiser thereafter selected by a party shall determine the fair rental value of the Premises. Each party shall bear the cost of its own Appraiser and the parties shall share equally the cost of the single or third Appraiser, if applicable.
(c) For the purposes of such appraisal, the term "fair rental value " shall mean the price that a ready and willing tenant would pay, as of the Initial Adjustment Date beginning of the Extension Term, as monthly rent to a ready and continuing willing landlord of property comparable to the Premises if such property were exposed for lease on each Adjustment Date thereafterthe open market for a reasonable period of time and taking into account all of the purposes for which such property may be used and taking into account all material attributes and benefits of the Premises. Fair rental value shall take into consideration all monetary concessions being granted in connection with such comparable property, including without limitation, rent abatement concessions and tenant improvements or allowance provided therefore. If a single Appraiser is chosen, then such Appraiser shall determine the fair rental value of the Premises. Otherwise, the fair rental value of the Premises shall be the average of the two (2) of the three (3) appraisals which are closest in amount, and the third appraisal shall be disregarded. LESSOR and LESSEE shall instruct the Appraiser(s) to complete the determination of the fair rental value not later than forty-five (45) days prior to the beginning of the applicable option period. If the fair rental value is not determined prior to the beginning of the Extension Term, then LESSEE shall continue to pay to LESSOR the Base Rent applicable to the Premises immediately prior to such extension, until the fair rental value is determined. When the fair rental value of the Premises is determined, LESSOR shall deliver notice thereof to LESSEE, and if the fair rental value is higher, LESSEE shall pay to LESSOR, within ten (10) days after receipt of such notice, the difference between the Base Rent actually paid by LESSEE to LESSOR and the new Base Rent determined under this section.
(d) Notwithstanding any other provision of this Lease, in no event shall the Base Rent for the first Lease Year of the Extension Term be less than an amount equal to 103% of the Base Rent in effect for the Lease Year immediately preceding the beginning of the Extension Term ( "Prior Base Rent "). If the fair rental value of the Premises determined under this section is less than the Prior Base Rent, then the Base Rent for the first Lease Year of an Extension Term shall equal the Prior Base Rent.
(e) The Base Rent shall be increased to equal at the product achieved by multiplying beginning of the initial Base Rent amount by a fraction, second Lease Year of the numerator Extension Term and at the beginning of which shall be each Lease Year thereafter in 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 three percent (6%) nor less than four percent (43%) of the Base Rent in effect 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 RentYear.
Appears in 1 contract
Samples: Standard Industrial/Commercial Single Tenant Lease (Smtek International Inc)