Common use of Fixed Rate Conversion Clause in Contracts

Fixed Rate Conversion. During the Initial Term, provided that Tenant is not in default hereunder and at least five years remain during the Initial Term, Tenant shall have the right to a one-time conversion of the Capitalization Rate to a fixed rate to be used during the remainder of the Initial Term and during the Renewal Terms. The fixed Capitalization Rate will be equal to the greater of (i) Capital Automotive REIT's ("CARS") credit spread plus a 225 basis point operating spread plus the current coupon on the Ten (10) year US Treasury or (ii) 10.25