Common use of After One Year Period Clause in Contracts

After One Year Period. If the First Refusal Commencement Date is anticipated by Landlord to occur on or after the expiration of the One Year Period, the rent payable by Tenant for the First Refusal Space (which shall also be referred to herein as the “First Refusal Rent”) shall be the rent (including additional rent and considering any “base year” or “expense stop” applicable thereto), including all escalations, at which tenants, as of the commencement of the term of Tenant’s lease of the subject First Refusal Space, are leasing non-sublease, non-encumbered, non-equity space comparable in size, location and quality to the First Refusal Space for a comparable term, which comparable space is located in the Building and in “Comparable Buildings,” as that term is defined in Section 2.2 of this Lease (“Comparable First Refusal Transactions”), in either event taking into consideration only the following concessions: (a) rental abatement concessions, if any, being granted such tenants in connection with such comparable space, (b) tenant improvements or allowances provided or to be provided for such comparable space, taking into account, and deducting the value of, the existing improvements in the First Refusal Space, such value to be based upon the age, quality and layout of the improvements and the extent to which the same could be utilized by a typical general office user, (c) any period of rental abatement, if any, granted to tenants in comparable transactions in connection with the design, permitting and construction of tenant improvements in such comparable spaces, and (d) other reasonable economic concessions being granted such tenants in connection with such comparable space; provided, however, that in calculating the First Refusal Rent, no consideration shall be given to the fact that Landlord is or is not required to pay a real estate brokerage commission in connection with Tenant’s exercise of its right to lease the First Refusal Space or the fact that landlords are or are not paying real estate brokerage commissions in connection with such comparable space. The terms of Section 3.2 of this Lease shall be inapplicable to First Refusal Rent calculated pursuant to the terms of this paragraph. The First Refusal Rent under this paragraph shall additionally include a determination as to whether, and if so to what extent, Tenant must provide Landlord with financial security, such as a letter of credit or guaranty, for Tenant’s rent obligations with respect to the First Refusal Space. Such determination shall be made by reviewing the extent of financial security then generally being imposed in Comparable First Refusal Transactions from tenants of comparable financial condition and credit history to the then existing financial condition and credit history of Tenant (with appropriate adjustments to account for differences in the then-existing financial condition of Tenant and such other tenants).

After One Year Period. If the First Refusal Offer Commencement Date is anticipated by Landlord to occur on or after the expiration of the One Year Period, the rent payable by Tenant for the First Refusal Offer Space (which shall also be referred to herein as the “First Refusal Offer Rent”) shall be the rent (including additional rent and considering any “base year” or “expense stop” applicable thereto), including all escalations, at which tenants, as of the commencement of the term of Tenant’s lease of the subject First Refusal Offer Space, are leasing non-sublease, non-encumbered, non-equity space comparable in size, location and quality to the First Refusal Offer Space for a comparable term, which comparable space is located in the Building and in “Comparable Buildings,” as that term is defined in Section 2.2 of this Lease (“Comparable First Refusal Offer Transactions”), in either event taking into consideration only the following concessions: (a) rental abatement concessions, if any, being granted such tenants in connection with such comparable space, (b) tenant improvements or allowances provided or to be provided for such comparable space, taking into account, and deducting the value of, the existing improvements in the First Refusal Offer Space, such value to be based upon the age, quality and layout of the improvements and the extent to which the same could be utilized by a typical general office user, (c) any period of rental abatement, if any, granted to tenants in comparable transactions in connection with the design, permitting and construction of tenant improvements in such comparable spaces, and (d) other reasonable economic concessions being granted such tenants in connection with such comparable space; provided, however, that in calculating the First Refusal Offer Rent, no consideration shall be given to the fact that Landlord is or is not required to pay a real estate brokerage commission in connection with Tenant’s exercise of its right to lease the First Refusal Offer Space or the fact that landlords are or are not paying real estate brokerage commissions in connection with such comparable space. The terms of Section 3.2 of this Lease shall be inapplicable to First Refusal Offer Rent calculated pursuant to the terms of this paragraph. The First Refusal Offer Rent under this paragraph shall additionally include a determination as to whether, and if so to what extent, Tenant must provide Landlord with financial security, such as a letter of credit or guaranty, for Tenant’s rent obligations with respect to the First Refusal Offer Space. Such determination shall be made by reviewing the extent of financial security then generally being imposed in Comparable First Refusal Offer Transactions from tenants of comparable financial condition and credit history to the then existing financial condition and credit history of Tenant (with appropriate adjustments to account for differences in the then-existing financial condition of Tenant and such other tenants).