New Search
3. Rent. <br />3.1 Initial Rent. The Sublessee must pay monthly rent of $720 for its use of the <br />Premises. The rent will be payable annually in advance for each 12-month period during the term <br />of this lease beginning on November 1 and ending on October 31 of the following year. If the term <br />of lease commences on a date other than November 1, the rent for the first partial 12-month period <br />of this lease will be payable prior to the commencement date of the lease. The rent for the first and <br />last partial calendar months of this sublease, if any, will be prorated. All rents must be paid to the <br />Sublessors at 2295 Coburg Road, Eugene, Oregon 97401, or at such other place or to such other <br />person as the Sublessors may designate in writing. <br />3.2 Escalation in Rent. The monthly rent payable by the Sublessee under Section 3.1 <br />of this sublease will be adjusted on November 1, 2003, November 1, 2008, and November 1, 2013 <br />by a percentage equal to the percentage change in the Consumer Price Index published by the United <br />States Bureau of Labor Statistics of the United States Department of Labor. Comparisons will be <br />made using the Index entitled "U.S. City Average - All Items and Major Group Figures for All <br />Urban Consumers (1982-84 =100)," or the nearest comparable data on changes in the cost of living <br />if such index is no longer published. The adjustment in the rent will be determined by comparison <br />of the figure for the beginning of the immediately preceding five-year period with that at the end of <br />such five-year period. Such percentage increases will not exceed 15%. The rent payable following <br />an adjustment may not be less than the rent payable preceding the adjustment. <br />4. Construction of Tower and Building. <br />4.1 Sublessee's Construction Funding. Promptly following the full execution of this <br />sublease, the Sublessee will pay the amount of $100,000 to the Sublessors. This payment is to be <br />used by the Sublessors for costs and expenses of the construction of the New Tower and New <br />Equipment Building. But the Sublessors will not be required to account to the Sublessee for the use <br />of the payment. The Sublessors will be entitled to retain any part of the payment that exceeds the <br />cost of constructing the New Tower and New Equipment Building, and the Sublessors will be <br />responsible for the additional cost if the cost of constructing the New Tower and New Equipment <br />Building exceeds the amount of the payment. <br />Payments made pursuant to this paragraph 4.1 shall not be considered rent, but are payments <br />for tenant improvements. <br />4.2 Construction. The Sublessors will commence construction of the New Tower and <br />New Equipment Building upon: (1) full execution of this sublease, (2) the receipt of the payment <br />to be provided by the Sublessee under Section 4.1 above, and (3) the issuance of necessary building <br />permits by Lane County, and will diligently prosecute such construction to completion. The <br />construction will be completed in a good and workmanlike manner, in compliance with applicable <br />law, and in substantial compliance with the specifications set forth in Exhibit 4.2. <br />3 - Tower Sublease <br />NAK - OWED, Inc. 09075\Tower Lease 9075-13\Documents\wicks.towersublease.100699 <br />