Common use of Annual Escalation of Minimum Rent Clause in Contracts

Annual Escalation of Minimum Rent. Commencing on the one-year anniversary of the Commencement Date (if the Commencement Date is the first (1st) day of a calendar month, or, if not, on the first (1st) day of the first (1st) full month following the Commencement Date), and continuing on each subsequent one-year anniversary thereof during the Term (including any Extended Term) (each, an "ADJUSTMENT DATE"), the Minimum Rent (irrespective of any prorations made pursuant to SECTION 3.1(a) above) shall increase to an amount equal to the Minimum Rent for the one-year period immediately preceding the Adjustment Date multiplied by a fraction, the numerator of which shall be the C.P.I. (defined below) for the month in which the Adjustment Date occurs, and the denominator of which shall be the C.P.I. for the month that was one year prior to the Adjustment Date; provided, however, that the product of said multiplication shall not result in an increase of the Minimum Rent by more than two percent (2%) per year on a cumulative basis ("ANNUAL MULTIPLIER"). If, however, the Annual Multiplier is less than two percent (2%) on any Adjustment Date (a "LESS THAN 2% ADJUSTMENT DATE"), then at such time as the Annual Multiplier is determined for subsequent Adjustment Dates, the Minimum Rent for each Less Than 2% Adjustment Date shall be retroactively recalculated such that subsequent Annual Multipliers (whether less than or greater than 2%) shall be first applied to increase the Annual Multiplier for each Less Than 2% Adjustment Date to an amount up to, but not greater than, 2%, with such recalculations to be made in chronological order beginning with the earliest Less Than 2% Adjustment Date and continuing, so long as there is Annual Multiplier remaining, until recalculations have been made with respect to all Less Than 2% Adjustment Dates. After each such recalculation has been made, the shortfall in the Minimum Rent for the newly recalculated Less Than 2% Adjustment Dates shall be billed to Lessee and Lessee shall pay such shortfall amount to Lessor together with the next payment of Minimum Rent otherwise coming due hereunder. Such recalculations and shortfall xxxxxxxx shall be made on each Adjustment Date where there remain prior Less Than 2% Adjustment Dates which have not yet been recalculated to 2%. For purposes of example only, if the Commencement Date is June 1, 2002 and the initial Minimum Rent equals $1,020,000, and if (a) the C.P.I. increased 1.5% as of June 1, 2003, the Minimum Rent as of June 1, 2003 would increase to $1,035,300; (b) the C.P.I. increased 1.5% as of June 1, 2004, the Minimum Rent as of June 1, 2004 would increase to $1,050,830; (c) the C.P.I. increased 6% as of June 1, 2005, the Minimum Rent as of June 1, 2005 would increase to $1,082,354, which is the Minimum Rent increased by 2% per year for three years (i.e. the average annual increases have been 3% (1.5% + 1.5% + 6% for the three years, respectively) subject to the 2% annual limitation), and the total shortfall amount to be billed to Lessee would be $5,100 for the 2003 Adjustment Date and $10,378 for the 2004 Adjustment Date. The "overage" in the C.P.I. increase (i.e., the remaining 3% increase that could not be applied towards the increase in Minimum Rent on June 1, 2005 by virtue of the 2% cap), would be "banked" and would be used to increase Minimum Rent in

Annual Escalation of Minimum Rent. Commencing on the one-year anniversary of the Commencement Date (if the Commencement Date is the first (1st) day of a calendar month, or, if not, on the first (1st) day of the first (1st) full month following the Commencement Date), and continuing on each subsequent one-year anniversary thereof during the Term (including any Extended Term) (each, an "ADJUSTMENT DATEAdjustment Date"), the Minimum Rent (irrespective of any prorations made pursuant to SECTION Section 3.1(a) above) shall increase to an amount equal to the Minimum Rent for the one-year period immediately preceding the Adjustment Date multiplied by a fraction, the numerator of which shall be the C.P.I. (defined below) for the month in which the Adjustment Date occurs, and the denominator of which shall be the C.P.I. for the month that was one year prior to the Adjustment Date; provided, however, that the product of said multiplication shall not result in an increase of the Minimum Rent by more than two percent (2%) per year on a cumulative basis ("ANNUAL MULTIPLIERAnnual Multiplier"). If, however, the Annual Multiplier is less than two percent (2%) on any Adjustment Date (a "LESS THAN Less Than 2% ADJUSTMENT DATEAdjustment Date"), then at such time as the Annual Multiplier is determined for subsequent Adjustment Dates, the Minimum Rent for each Less Than 2% Adjustment Date shall be retroactively recalculated such that subsequent Annual Multipliers (whether less than or greater than 2%) shall be first applied to increase the Annual Multiplier for each Less Than 2% Adjustment Date to an amount up to, but not greater than, 2%, with such recalculations to be made in chronological order beginning with the earliest Less Than 2% Adjustment Date and continuing, so long as there is Annual Multiplier remaining, until recalculations have been made with respect to all Less Than 2% Adjustment Dates. After each such recalculation has been made, the shortfall in the Minimum Rent for the newly recalculated Less Than 2% Adjustment Dates shall be billed to Lessee and Lessee shall pay such shortfall amount to Lessor together with the next payment of Minimum Rent otherwise coming due hereunder. Such recalculations and shortfall xxxxxxxx shall be made on each Adjustment Date where there remain prior Less Than 2% Adjustment Dates which have not yet been recalculated to 2%. For purposes of example only, if the Commencement Date is June 1, 2002 and the initial Minimum Rent equals $1,020,000, and if (a) the C.P.I. increased 1.5% as of June 1, 2003, the Minimum Rent as of June 1, 2003 would increase to $1,035,300; (b) the C.P.I. increased 1.5% as of June 1, 2004, the Minimum Rent as of June 1, 2004 would increase to $1,050,830; (c) the C.P.I. increased 6% as of June 1, 2005, the Minimum Rent as of June 1, 2005 would increase to $1,082,354, which is the Minimum Rent increased by 2% per year for three years (i.e. the average annual increases have been 3% (1.5% + 1.5% + 6% for the three years, respectively) subject to the 2% annual limitation), and the total shortfall amount to be billed to Lessee would be $5,100 for the 2003 Adjustment Date and $10,378 for the 2004 Adjustment Date. The "overage" in the C.P.I. increase (i.e., the remaining 3% increase that could not be applied towards the increase in Minimum Rent on June 1, 2005 by virtue of the 2% cap), would be "banked" and would be used to increase Minimum Rent inin subsequent years if the C.P.I. increase in such years were less than 2%. By way of demonstration, if the C.P.I. as of June 1, 2006 and June 1, 2007 do not increase at all, then Minimum Rent would nonetheless increase by 2% on June 1, 2006, and 1% on June 1, 2007 (such increases having been "banked" from the remaining portion of the 6% C.P.I. increase on June 1, 2005). "C.P.I." shall mean and refer to the Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor, U.S. Cities Average, All Items (1982-84=100); provided that if compilation of the C.P.I. is discontinued or transferred to any other governmental department or bureau, then the index most nearly the same as the C.P.I. shall be used. If Lessor is unable to determine the C.P.I. by any Adjustment Date, Lessee shall continue to pay the Minimum Rent at the rate paid for the period immediately prior to that Adjustment Date, and once the C.P.I. for that Adjustment Date is published, the new Minimum Rent (as increased by the Annual Multiplier) shall be effective retroactively as of such Adjustment Date and the aggregate amount of any additional Minimum Rent shall be paid by Lessee promptly after written notice thereof from Lessor (but not later than the date of the next monthly installment of Minimum Rent, unless the next installment falls due within five (5) days after Lessor's notice, in which case not later than the date of the second next monthly installment of Minimum Rent). No delay by Lessor in providing notice of any such increase in Minimum Rent shall be deemed a waiver of Lessor's right to increase the Minimum Rent as provided hereunder. -7-

Annual Escalation of Minimum Rent. Commencing on the one-year anniversary of the Commencement Date (if the Commencement Date is the first (1st) day of a calendar month, or, if not, on the first (1st) day of the first (1st) full month following the Commencement Date), and continuing on each subsequent one-year anniversary thereof during the Term (including any Extended Term) (each, an "ADJUSTMENT DATEAdjustment Date"), the Minimum Rent (irrespective of any prorations made pursuant to SECTION Paragraph 3.1(a) above) shall increase to an amount equal to the Minimum Rent for the one-year period immediately preceding the Adjustment Date multiplied by a fraction, the numerator of which shall be the C.P.I. (defined below) for the month in which the Adjustment Date occurs, and the denominator of which shall be the C.P.I. for the month that was one year prior to the Adjustment Date; provided, however, that the product of said multiplication shall not result in an increase of the Minimum Rent by more than two percent (2%) per year on a cumulative basis ("ANNUAL MULTIPLIERAnnual Multiplier"). If, however, the Annual Multiplier is less than two percent (2%) on any Adjustment Date (a "LESS THAN Less Than 2% ADJUSTMENT DATEAdjustment Date"), then at such time as the Annual Multiplier is determined for subsequent Adjustment Dates, the Minimum Rent for each Less Than 2% Adjustment Date shall be retroactively recalculated such that subsequent Annual Multipliers (whether less than or greater than 2%) shall be first applied to increase the Annual Multiplier for each Less Than 2% Adjustment Date to an amount up to, but not greater than, 2%, with such recalculations to be made in chronological order beginning with the earliest Less Than 2% Adjustment Date and continuing, so long as there is Annual Multiplier remaining, until recalculations have been made with respect to all Less Than 2% Adjustment Dates. After each such recalculation has been made, the shortfall in the Minimum Rent for the newly recalculated Less Than 2% Adjustment Dates shall be billed to Lessee and Lessee shall pay such shortfall amount to Lessor together with the next payment of Minimum Rent otherwise coming due hereunder. Such recalculations and shortfall xxxxxxxx shall be made on each Adjustment Date where there remain prior Less Than 2% Adjustment Dates which have not yet been recalculated to 2%. For purposes of example only, if the Commencement Date is June 1, 2002 and the initial Minimum Rent equals $1,020,000, and if (a) the C.P.I. increased 1.5% as of June 1, 2003, the Minimum Rent as of June 1, 2003 would increase to $1,035,300; (b) the C.P.I. increased 1.5% as of June 1, 2004, the Minimum Rent as of June 1, 2004 would increase to $1,050,830; (c) the C.P.I. increased 6% as of June 1, 2005, the Minimum Rent as of June 1, 2005 would increase to $1,082,354, which is the Minimum Rent increased by 2% per year for three years (i.e. the average annual increases have been 3% (1.5% + 1.5% + 6% for the three years, respectively) subject to the 2% annual limitation), and the total shortfall amount to be billed to Lessee would be $5,100 for the 2003 Adjustment Date and $10,378 for the 2004 Adjustment Date. The "overage" in the C.P.I. increase (i.e., the remaining 3% increase that could not be applied towards the increase in Minimum Rent on June 1, 2005 by virtue of the 2% cap), would be "banked" and would be used to increase Minimum Rent in

Annual Escalation of Minimum Rent. Commencing on the one-year anniversary of the Commencement Date (if the Commencement Date is the first (1st) day of a calendar month, or, if not, on the first (1st) day of the first (1st) full month following the Commencement Date), and continuing on each subsequent one-year anniversary thereof during the Term (including any Extended Term) (each, an "ADJUSTMENT DATEAdjustment Date"), the Minimum Rent (irrespective of any prorations made pursuant to SECTION Section 3.1(a) above) shall increase to an amount equal to the Minimum Rent for the one-year period immediately preceding the Adjustment Date multiplied by a fraction, the numerator of which shall be the C.P.I. (defined below) for the month in which the Adjustment Date occurs, and the denominator of which shall be the C.P.I. for the month that was one year prior to the Adjustment Date; provided, however, that the product of said multiplication shall not result in an increase of the Minimum Rent by more than two percent (2%) per year on a cumulative basis ("ANNUAL MULTIPLIERAnnual Multiplier"). If, however, the Annual Multiplier is less than two percent (2%) on any Adjustment Date (a "LESS THAN Less Than 2% ADJUSTMENT DATEAdjustment Date"), then at such time as the Annual Multiplier is determined for subsequent Adjustment Dates, the Minimum Rent for each Less Than 2% Adjustment Date shall be retroactively recalculated such that subsequent Annual Multipliers (whether less than or greater than 2%) shall be first applied to increase the Annual Multiplier for each Less Than 2% Adjustment Date to an amount up to, but not greater than, 2%, with such recalculations to be made in chronological order beginning with the earliest Less Than 2% Adjustment Date and continuing, so long as there is Annual Multiplier remaining, until recalculations have been made with respect to all Less Than 2% Adjustment Dates. After each such recalculation has been made, the shortfall in the Minimum Rent for the newly recalculated Less Than 2% Adjustment Dates shall be billed to Lessee and Lessee shall pay such shortfall amount to Lessor together with the next payment of Minimum Rent otherwise coming due hereunder. Such recalculations and shortfall xxxxxxxx shall be made on each Adjustment Date where there remain prior Less Than 2% Adjustment Dates which have not yet been recalculated to 2%. For purposes of example only, if the Commencement Date is June 1, 2002 and the initial Minimum Rent equals $1,020,000, and if (a) the C.P.I. increased 1.5% as of June 1, 2003, the Minimum Rent as of June 1, 2003 would increase to $1,035,300; (b) the C.P.I. increased 1.5% as of June 1, 2004, the Minimum Rent as of June 1, 2004 would increase to $1,050,830; (c) the C.P.I. increased 6% as of June 1, 2005, the Minimum Rent as of June 1, 2005 would increase to $1,082,354, which is the Minimum Rent increased by 2% per year for three years (i.e. the average annual increases have been 3% (1.5% + 1.5% + 6% for the three years, respectively) subject to the 2% annual limitation), and the total shortfall amount to be billed to Lessee would be $5,100 for the 2003 Adjustment Date and $10,378 for the 2004 Adjustment Date. The "overage" in the C.P.I. increase (i.e., the remaining 3% increase that could not be applied towards the increase in Minimum Rent on June 1, 2005 by virtue of the 2% cap), would be "banked" and would be used to increase Minimum Rent inin subsequent years if the C.P.I. increase in such years were less than 2%. By way of demonstration, if the C.P.I. as of June 1, 2006 and June 1, 2007 do not increase at all, then Minimum Rent would nonetheless increase by 2% on June 1, 2006, and 1% on June 1, 2007 (such increases having been "banked" from the remaining portion of the 6% C.P.I. increase on June 1, 2005). "C.P.I." shall mean and refer to the Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor, U.S. Cities Average, All Items (1982-84=100); provided that if compilation of the C.P.I. is discontinued or transferred to any other governmental department or bureau, then the index most nearly the same as the C.P.I. shall be used. If Lessor is unable to determine the C.P.I. by any Adjustment Date, Lessee shall continue to pay the Minimum Rent at the rate paid for the period immediately prior to that Adjustment Date, and once the C.P.I. for that Adjustment Date is published, the new Minimum Rent (as increased by the Annual Multiplier) shall be effective retroactively as of such Adjustment Date and the aggregate amount of any additional Minimum Rent shall be paid by Lessee promptly after written notice thereof from Lessor (but not later than the date of the next monthly installment of Minimum Rent, unless the next installment falls due within five (5) days after Lessor's notice, in which case not later than the date of the second next monthly installment of Minimum Rent). No delay by Lessor in providing notice of any such increase in Minimum Rent shall be deemed a waiver of Lessor's right to increase the Minimum Rent as provided hereunder.

Annual Escalation of Minimum Rent. Commencing on the one-year anniversary of the Commencement Date (if the Commencement Date is the first (1st) day of a calendar month, or, if not, on the first (1st) day of the first (1st) full month following the Commencement Date), and continuing on each subsequent one-year anniversary thereof during the Term (including any Extended Term) (each, an "ADJUSTMENT DATEAdjustment Date"), the Minimum Rent (irrespective of any prorations made pursuant to SECTION Section 3.1(a) above) shall increase to an amount equal to the Minimum Rent for the one-year period immediately preceding the Adjustment Date multiplied by a fraction, the numerator of which shall be the C.P.I. (defined below) for the month in which the Adjustment Date occurs, and the denominator of which shall be the C.P.I. for the month that was one year prior to the Adjustment Date; provided, however, that the product of said multiplication shall not result in an increase of the Minimum Rent by more than two percent (2%) per year on a cumulative basis ("ANNUAL MULTIPLIERAnnual Multiplier"). If, however, the Annual Multiplier is less than two percent (2%) on any Adjustment Date (a "LESS THAN Less Than 2% ADJUSTMENT DATEAdjustment Date"), then at such time as the Annual Multiplier is determined for subsequent Adjustment Dates, the Minimum Rent for each Less Than 2% Adjustment Date shall be retroactively recalculated such that subsequent Annual Multipliers (whether less than or greater than 2%) shall be first applied to increase the Annual Multiplier for each Less Than 2% Adjustment Date to an amount up to, but not greater than, 2%, with such recalculations to be made in chronological order beginning with the earliest Less Than 2% Adjustment Date and continuing, so long as there is Annual Multiplier remaining, until recalculations have been made with respect to all Less Than 2% Adjustment Dates. After each such recalculation has been made, the shortfall in the Minimum Rent for the newly recalculated Less Than 2% Adjustment Dates shall be billed to Lessee and Lessee shall pay such shortfall amount to Lessor together with the next payment of Minimum Rent otherwise coming due hereunder. Such recalculations and shortfall xxxxxxxx shall be made on each Adjustment Date where there remain prior Less Than 2% Adjustment Dates which have not yet been recalculated to 2%. For purposes of example only, if the Commencement Date is June 1, 2002 and the initial Minimum Rent equals $1,020,000, and if (a) the C.P.I. increased 1.5% as of June 1, 2003, the Minimum Rent as of June 1, 2003 would increase to $1,035,300; (b) the C.P.I. increased 1.5% as of June 1, 2004, the Minimum Rent as of June 1, 2004 would increase to $1,050,830; (c) the C.P.I. increased 6% as of June 1, 2005, the Minimum Rent as of June 1, 2005 would increase to $1,082,354, which is the Minimum Rent increased by 2% per year for three years (i.e. the average annual increases have been 3% (1.5% + 1.5% + 6% for the three years, respectively) subject to the 2% annual limitation), and the total shortfall amount to be billed to Lessee would be $5,100 for the 2003 Adjustment Date and $10,378 for the 2004 Adjustment Date. The "overage" in the C.P.I. increase (i.e., the remaining 3% increase that could not be applied towards the increase in Minimum Rent on June 1, 2005 by virtue of the 2% cap), would be "banked" and would be used to increase Minimum Rent inin subsequent years if the C.P.I. increase in such years were less than 2%. By way of demonstration, if the C.P.I. as of June 1, 2006 and June 1, 2007 do not increase at all, then Minimum Rent would nonetheless increase by 2% on June 1, 2006, and 1% on June 1, 2007 (such increases having been "banked" from the remaining portion of the 6% C.P.I. increase on June 1, 2005). "C.P.I." shall mean and refer to the Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor, U.S. Cities Average, All Items (1982-84=100); provided that if compilation of the C.P.I. is discontinued or transferred to any other governmental department or bureau, then the index most nearly the same as the C.P.I. shall be used. If Lessor is unable to determine the C.P.I. by any Adjustment Date, Lessee shall continue to pay the Minimum Rent at the rate paid for the period immediately prior to that Adjustment Date, and once the C.P.I. for that Adjustment Date is published, the new Minimum Rent (as increased by the Annual Multiplier) shall be effective retroactively as of such Adjustment Date and the aggregate amount of any additional Minimum Rent shall be paid by Lessee promptly after written notice thereof from Lessor (but not later than the date of the next monthly installment of Minimum Rent, unless the next installment falls due within five (5) days after Lessor's notice, in which case not later than the date of the second next monthly installment of Minimum Rent). No delay by Lessor in providing notice of any such increase in Minimum Rent shall be deemed a waiver of Lessor's right to increase the Minimum Rent as provided hereunder. -10-

Annual Escalation of Minimum Rent. Commencing on the one-year anniversary of the Commencement Date (if the Commencement Date is the first (1st) day of a calendar month, or, if not, on the first (1st) day of the first (1st) full month following the Commencement Date), and continuing on each subsequent one-year anniversary thereof during the Term (including any Extended Term) (each, an "ADJUSTMENT DATE"), the Minimum Rent (irrespective of any prorations made pursuant to SECTION 3.1(a) above) shall increase to an amount equal to the Minimum Rent for the one-year period immediately preceding the Adjustment Date multiplied by a fraction, the numerator of which shall be the C.P.I. (defined below) for the month in which the Adjustment Date occurs, and the denominator of which shall be the C.P.I. for the month that was one year prior to the Adjustment Date; provided, however, that the product of said multiplication shall not result in an increase of the Minimum Rent by more than two percent (2%) per year on a cumulative basis ("ANNUAL MULTIPLIER"). If, however, the Annual Multiplier is less than two percent (2%) on any Adjustment Date (a "LESS THAN 2% ADJUSTMENT DATE"), then at such time as the Annual Multiplier is determined for subsequent Adjustment Dates, the Minimum Rent for each Less Than 2% Adjustment Date shall be retroactively recalculated such that subsequent Annual Multipliers (whether less than or greater than 2%) shall be first applied to increase the Annual Multiplier for each Less Than 2% Adjustment Date to an amount up to, but not greater than, 2%, with such recalculations to be made in chronological order beginning with the earliest Less Than 2% Adjustment Date and continuing, so long as there is Annual Multiplier remaining, until recalculations have been made with respect to all Less Than 2% Adjustment Dates. After each such recalculation has been made, the shortfall in the Minimum Rent for the newly recalculated Less Than 2% Adjustment Dates shall be billed to Lessee and Lessee shall pay such shortfall amount to Lessor together with the next payment of Minimum Rent otherwise coming due hereunder. Such recalculations and shortfall xxxxxxxx shall be made on each Adjustment Date where there remain prior Less Than 2% Adjustment Dates which have not yet been recalculated to 2%. For purposes of example only, if the Commencement Date is June 1, 2002 and the initial Minimum Rent equals $1,020,000, and if (a) the C.P.I. increased 1.5% as of June 1, 2003, the Minimum Rent as of June 1, 2003 would increase to $1,035,300; (b) the C.P.I. increased 1.5% as of June 1, 2004, the Minimum Rent as of June 1, 2004 would increase to $1,050,830; (c) the C.P.I. increased 6% as of June 1, 2005, the Minimum Rent as of June 1, 2005 would increase to $1,082,354, which is the Minimum Rent increased by 2% per year for three years (i.e. the average annual increases have been 3% (1.5% + 1.5% + 6% for the three years, respectively) subject to the 2% annual limitation), and the total shortfall amount to be billed to Lessee would be $5,100 for the 2003 Adjustment Date and $10,378 for the 2004 Adjustment Date. The "overage" in the C.P.I. increase (i.e., the remaining 3% increase that could not be applied towards the increase in Minimum Rent on June 1, 2005 by virtue of the 2% cap), would be "banked" and would be used to increase Minimum Rent ingreater