Costs; Minimum Rent Increase Clause Samples

Costs; Minimum Rent Increase. The Minimum Annual Rent on a triple net basis and excluding any cost for base year Operating Expenses hereunder will be increased in order to include the New Building or the expansion of the existing Building. The amount of such increase in the Minimum Annual Rent will be equal to the product of (i) the Total Expansion Project Cost multiplied by (ii) a factor equal to the sum of (x) the yield on the ten (10) year United States treasury bond at the date of Substantial Completion plus (v) 7.5%. The “Total Expansion Project Cost” is equal to the sum of (i) all so-called “hard” and “soft” costs (which “soft” costs shall be inclusive of brokerage commissions payable to both Landlord’s and Tenant’s brokers on account of Tenant’s exercise of its expansion option hereunder) required in order to (A) construct the New Building or the expansion of the existing Building and the “shell” of the New Building or the expansion of the existing Building, and (B) construct all improvements within or relating to the New Building or the expansion of the existing Building to be constructed by Landlord, plus (ii) a combined development and construction fee equal to 4.0% of all of the aforesaid “hard” and “soft” costs. The aforesaid increase in the Minimum Annual Rent resulting from the addition of the New Building or the expansion of the existing Building (the “Expanded Premises”) will commence upon the date of the Substantial Completion of the Expanded Premises (the “Expanded Premises Commencement Date”) and on each anniversary of the Expanded Premises Commencement Date, the Annual Base Rent applicable to the Expanded Premises shall increase by 2.5%, on a cumulative compounded basis, and the Expanded Premises will be incorporated into and become a part of the Premises hereunder on the Expanded Premises Commencement Date. Anything in this Section 33 or elsewhere in the Lease to the contrary notwithstanding, Tenant will be solely responsible for (1) the design and installation of and all costs and expenses related to, all furniture, fixtures, equipment (including, without limitation any racking that Tenant desires to install in the Expanded Premises), (2) any tenant improvements to the Expanded Premises above Building standard “shell”, (3) all telephone, computer, data and other wiring and cabling, to be located in the Expanded Premises, (4) all costs and expenses related to any Tenant Delay (as such term would be applied to the Expanded Premises); and (5) all Operating Expenses r...