Common use of Expanded Premises Clause in Contracts

Expanded Premises. Four (4) months of Operating Costs at the rate payable in months 85-89 of the Initial Term. (amount not yet known) For Example, if the Initial Premises contains 51,662 square feet of Rentable Area, and if the Expansion Premises contains 12,000 square feet of Rentable Area, and if the scheduled Operating Costs are $12.50 per square foot in Months 85-89, and if Expansion Space Commencement Date is the first day of Month 37 of the Initial Term, then the Termination Fee would be calculated as follows: Termination Fee Item Unamortized Cost of TI’s or Allowance @ 8.5% Unamortized Cost of Brokerage Commissions @ 8.5% Four (4) Months Base Rent Following Lease Termination Four (4) Months Operating Costs Following Lease Termination Initial Premises $ 1,521,820 $ 291,682 $ 772,991 $ 215,258 * Expansion Space $ 247,441 ** $ 46,566 *** $ 179,560 **** $ 50,000 Subtotals: $ 1,769,221 $ 338,248 $ 952,541 $ 265,258 Total Example Termination Fee: $ 3,325,308 * The product of 51,662 rentable square feet (Initial Premises) multiplied by annual Operating Costs of $12.50 per square foot of Rentable Area, divided by 3 (i.e. four months Operating Costs). ** The unamortized amount (as of the end of month 84) of $630,000 ($52.50 multiplied by ▇▇,▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇) *** The unamortized amount (as of the end of month 84) of $118,560 ($9.88 multiplied by ▇▇,▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇) **** The product of 12,000 square feet of Rentable Area multiplied by $44.89, divided by 3 (ie. four months of Expansion Space Rent). **** The product of 12,000 square feet of Rentable Area (Expansion Space) multiplied by annual Operating Costs of $12.50 rentable square foot, divided by 3 (i.e. four months Operating Costs).