Common use of Expansion Space Basic Rent Clause in Contracts

Expansion Space Basic Rent. Commencing on the Expansion Space Commencement Date, Tenant shall pay Basic Rent for the Expansion Space in the amount provided in this Section 18.5 at which time Tenant shall no longer be required to pay the portion of the Basic Rent described as "Monthly Rent for Expansion Land" in Item 10 of the Basic Terms. The Basic Rent, paid monthly, for the Expansion Space shall be the product of ten and one half percent (102%), multiplied by the following costs ("Expansion Space Basic Rent"): (1) The Expansion Land valued at $525,000; (2) The cost of building the Expansion Space (inclusive of a tenant improvement allowance not to exceed Five Dollars ($5.00) per square foot) as determined by (a) the lowest competitive bid by general contractors acceptable to both parties or (b) Landlord's in-house general contractor at a fee of five percent (5%) of Hard Costs (defined below); (3) Commercially reasonable and standard Architectural and engineering fees, permit fees, governmental charges, soil testing costs and surveying costs incurred by Landlord in connection with the Expansion Space building; (4) A three percent (3%) development fee on all Hard Costs. As used herein, the term "Hard Costs" shall mean the actual costs paid by Landlord to construct the Improvements, including without limitation, all amounts paid to the contractors, suppliers, and all general contractors, all architectural, engineering and other design consultants and on-site overhead costs directly attributable to the Expansion Space, all standard fees paid to the governmental agencies for the construction of the Improvements, and other costs commonly included in what is customarily known as "Hard Costs";