Common use of Initial Rate Clause in Contracts

Initial Rate. In addition- to Tenant’s obligation to pay Basic Rent for the Original Premises, Tenant shall pay Basic Rent for the Expansion Space as follows: Lease Year 1 $ 18.00 $ 270,000.00 ** $ 22,500.00 Lease Year 2 $ 18.00 $ 306,000.00 *** $ 25,500.00 Lease Year 3-5 $ 19.00 $ 378,100.00 **** $ 31,508.33 Lease Year 6-8 $ 20.00 $ 398,000.00 **** $ 33,166.67 *For purposes hereof, an “Lease Year” shall mean a 12 month period beginning on the Expansion Effective Date, or any anniversary of the Expansion Effective Date, except that if the Expansion Effective Date does not fall on the first day of a calendar month, then the first Lease Year shall begin on the Expansion Effective Date, and end on the last day of the month containing the first anniversary of the Expansion Effective Date (and the Basic Rent for such first Lease Year shall be prorated to reflect the additional days included therein), and each succeeding Lease Year shall begin on the day following the last day of the prior Lease Year. **Based on 15,000 square feet ***Based on 17,000 square feet ****Based on 19,900 square feet All such Basic Rent and Additional Rent payable on account of Taxes, Operating Expenses, and utilities shall be payable by Tenant in accordance with the terms of the Lease. Tenant shall have no obligation to pay Basic Rent for the first (1st) full calendar month of Lease Year 1.