P-273_Sims Metal Management Lease

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shipping various scrap material commodities and incidental equipment maintenance facilities. The term of the Lease Agreement is Fifteen (15) years commencing on May 1, 2018 and endinq on April 30. 2033 (the "Initial Term"), with an option to extend the term of the Lease Agreement for an additional Five (5) years (the "Extended Term"). The rent for the Initial Term is $52,000 per month with a yearly increase on each anniversary date based upon the Consumer Price Index (but in no event greater than 3% per annum). The rent during the Extended Term shall be based upon the fair market rental value of the Premises on the day of the commencement of the Extended Term, as agreed by Landlord and Tenant or as determined by an appraiser. Tenant shall also pay Wharfage and Facilities Charges as Additional Rent at the starting rate of $1.50 per Metric Ton ("MT") for the first five years with a yearly increase based upon the Producer Price Index ("PPI"), with an additional increase to $1.65 per MT (plus yearly PPI increase) for the next five years, and $1.82 per MT (plus yearly PPI increase) for the next five years. Wharfage and Facilities Charges for the Extended Period will be determined by Landlord and Tenant or by Arbitration. The Lease Agreement also provides for an Annual Minimum Tonnage Guarantee of 150,000 MT of exported shredded scrap metal. Section 2. The President and Secretary of the Board of Port Commissioners of the City of Redwood City are hereby authorized and directed Port 2 Sims ORD. P-273 05/22/18