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Lessor Lessee
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2. Lease of the Premises. Lessor hereby demises and leases unto Lessee, and Lessee hereby
takes and hires from Lessor, the Premises, for and in consideration of the rents, covenants and
agreements, and upon the terms and conditions set forth herein, subject to any and all encumbrances,
conditions, covenants, easements, restrictions, rights-of-way, and all other matters of any nature affecting
the Premises during the Term (in each case whether or not of record), such matters as may be disclosed
by an inspection or survey, and all zoning, land use, subdivision, and all other laws, rules, regulations and
judicial or administrative orders now or hereafter applicable to the Premises or any part thereof or any use
or occupancy thereof (herein collectively called "Restrictions").
3. Term. The term of this Lease ("Term") shall be __________ years, beginning __________ and
terminating at midnight, __________, subject to earlier termination as herein set forth.
4. Rent. As rental for the Premises, Lessee shall pay the sums hereinafter set forth.
A. Base Rent. Lessee shall pay to Lessor during the Term a minimum net annual rent ("Base
Rent") as follows:
B. Base Rent Adjustments
(1) Cost of Living Adjustments. Beginning __________ and on each and every
succeeding second anniversary date thereafter (each such second anniversary date being referred to
herein as an "Adjustment Date") the Base Rent under Paragraph 4.A above shall be increased to an
amount equal to the result obtained by multiplying __________ by a fraction, the denominator of which
(hereinafter called "Base Price Index") shall be the Index published for the month of __________ and the
numerator of which shall be the index published for the month of November immediately preceding such
Adjustment Date. Lessor shall give Lessee written notice indicating the amount of the adjusted Base
Rent and the method of computation.
(2) Land Value Adjustment. Lessor shall have the right from time to time, at its option, to
request appraisals of the leased Premises for the purpose of adjusting the Base Rent according to the
following provisions:
(a) Lessor shall notify Lessee in writing that it is requesting appraisal of the
leased Premises. No request for an appraisal shall be made by Lessor prior to ___________, and no
subsequent request may be made until the expiration of 10 years from the preceding request pursuant to
which an appraisal has been made.
(b) The Premises shall be appraised at its fair market value as if
unencumbered and unimproved and free of this Lease, and considered as land without the Improvements
contemplated at Exhibit C (attached hereto and made a part hereof) constructed, whose highest and best
use is the use to which the Improvements on the Premises are then devoted, regardless of the potential
highest and best use of the land.
(c) Commencing on the first day of the month of January immediately following
Lessor's notice to Lessee of its request for appraisal, the Base Rent shall be adjusted to an amount which
is TEN PERCENT (10%) of the appraised value of the land, as determined pursuant to (b) above. If the
appraisal is not concluded until after such date, Lessee shall pay such Base Rent as the appraisal
determines within thirty (30) days after the conclusion of such appraisal.
(d) Notwithstanding any increase in Base Rent by reason of appraisal
hereunder, the Base Rent shall continue to be subject to subsequent bi-annual Cost of Living
Adjustments according to changes in the Index in the same manner as provided in Paragraph 4.B(1)
except that the Base Price Index shall be the Index published for the month of November in the year in
source: stewart.com
