Term Sheet For Commercial Lease Page 3
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5Lease Year 6 through
4% of the Auction Land
Lease Year 10
Value
Lease Year 11 through
8% of the Auction Land
Lease Year 20
Value
Lease Year 21 through
10% of the Auction Land
Lease Year 99
Value
Extension Options:
Upon Notice to the SLD, Tenant will have the option to
extend the lease for two (2) 12 year increments and one
10 year increment for a maximum total term of 99 years.
Net Rent:
With respect to all Separate Leases arising pursuant to
partial assignments, the Base Rent shall be reallocated
between the Wash Acres (Necessary?) and remaining
Net Acres in the partial assignment as follows:
The Master Lease shall contain as an exhibit a Net Base
Rent Schedule which identifies the per acre Net Current
Appraised Land Value to be assigned to the Net Acres
of this Lease. “Net Acres” means the ___ acres of the
Original Premises net of the Wash Acres; “Wash Acres”
means the ___ acres of 404 Washes contained within the
Original Premises as of the auction date.
If any partial assignment abuts a Wash, that partial
assignment shall include the entire Wash. In the event
two partial assignments occur concurrently and each
partial assignment abuts a Wash, SLD shall have the
right to determine which partial assignment shall
include the Wash.
Separate Leases shall pay as Base Rent the product of
the Net Current Appraised Land Value per acre
multiplied by the Net Acres contained in the Separate
Lease, which product is then multiplied by the Rental
Rate applicable for each Lease Year. If any Separate
Lease contains Wash Acres (as partial assignment
parcels bordering a Wash shall include the full Wash),
the Wash acres shall be excluded for purposes of
calculating Base Rent.
If at any time a Separate Lease does not contain any
Wash Acres, the Net Base Rent Schedule shall apply to
all Net Acres in the Separate Lease. To the extent the
acreage of a Wash attached to a Separate Lease are
reduced, the acreage eliminated from the Wash shall be
treated as Net Acres subject to the Net Base Rent
Schedule.
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