Initial Estimates Clause Samples

Initial Estimates. Before the Commencement Date (in the case of the first Adjustment Year), and as soon after the commencement of each Adjustment Year thereafter as Landlord is able to do so, Landlord shall notify Tenant of the expected Operatring Expenses for that Adjustment Year, together with Landlord’s estimate of the Tax Adjustment Amount for such Adjustment Year. Tenant thereafter shall pay as Additional Rent the estimated amounts of Operating Expenses and Tax Adjustment Amount for such year, in installments calculated and payable in the following manner. Every month, at the same time and place that installments of Base Rent are to be paid, Tenant shall pay an amount equal to one-twelfth (1/12th) of Tenant’s Proportionate Share of the estimated Taxes for such Adjustment Year; except that for the first and last Adjustment Years, the denominator of such monthly fraction shall be equal to the number of months in such Adjustment Year beginning with the Commencement Date or ending with the Termination Date, as the case may be. Lease Agreement