Common use of Minimum Rental Clause in Contracts

Minimum Rental. Lessee shall pay Minimum Rent for the Demised Premises according to the following schedule. The Minimum Rent described below shall be payable during the Term , in advance without demand and without deduction, set-off, or counter claim (extent to the extent, demand, or notice shall be expressly provided for herein). At least thirty (30) days prior to the due date of the first installment of Minimum Rent, Lessor shall provide to Lessee wire instructions for the rent payment so that Lessee may make payments of Minimum Rent by wire transfer. Lessor shall further advise Lessee no less than thirty (30) days prior to any change of such wiring instructions. a. During the first Lease Year, the annual rental of Eight Hundred Twenty Thousand Dollars ($820,000.00) shall be paid in monthly installments of Sixty Eight Thousand Three Hundred Thirty Three Dollars and thirty three cents ($68,333.33) in advance upon the first day of each calendar month. b. During the second Lease Year and each Lease Year thereafter during the term, the monthly rental shall be the product obtained by multiplying Sixty Eight Thousand Three Hundred Thirty Three Dollars and thirty three cents ($68,333.33) per month by a fraction the numerator of which the “Revised Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor for Philadelphia-Wilmington-Atlantic City, PA-DE-NJ-MD Area, All Items, (1982 / 1984 = 100)” (“CPI-U”) the average for that twelve (12) calendar month period ending four (4) months prior to the first calendar month of each such Lease Year and the denominator of which is the average CPI-U for that period which is twelve (12) calendar months ending four (4) months prior to the first full calendar month of the first Lease Year. c. Notwithstanding the provisions in Paragraph (B) above, in no event shall the Annual Minimum Rent Escalation be less than twenty-five cents ($0.25) per square foot per year and not more than five percent (5%) per year. d. In the event the CPI-U is discontinued, the “Revised Consumer Price Index for Urban Wage Earners and Clerical Workers published by the Bureau of Labor Statistics of the United States Department of Labor, for Philadelphia-Wilmington-Atlantic City, PA-DE-NJ-MD Area, All Items, (1982 / 1984 = 100)” (“CPI-W”) shall be used for making the computation in Paragraph (B) above. In the event the CPI-W is discontinued, comparable statistics on the purchasing power of the consumer dollar published by the Bureau of Labor Statistics of the United States Department of Labor shall be used for making the computation in Paragraph (B) above. In the event the Bureau of Labor Statistics shall no longer maintain statistics on the purchasing power of the consumer dollar, comparable statistics published by a responsible financial periodical of recognized authority selected by Lessor and reasonably acceptable to Lessee shall be used for making the computation in Paragraph (B) above (the “Revised CPI”). e. In the event the base year “(1982 / 1984 = 100)” or other base year in computing the CPI-U is changed, the figures used in making the adjustment in Paragraph (B) above shall accordingly be changed so that all increases in the CPI-U are taken into account notwithstanding any such change in the base year. f. In the event that the Consumer Price Index (“CPI”) ceases to use “(1982 / 1984 = 100)” as the basis of calculation, then the CPI shall be adjusted (the “Adjustment”) to the figure that would have been arrived at (or as close to such figure as shall be practical) had the manner of computing the CPI in effect at the date of the Lease not been altered. g. If, in Lessor’s sole judgment, such Adjustment is impossible or impractical, then the Revised CPI shall be deemed to replace the original CPI for purposes of this Paragraph. h. In the event that any cost of living adjustment is not available, then it is agreed that the monthly rent payments shall be made on the basis of the last monthly rental amount due until the cost of living adjustment is available, whereupon the future rental payment shall be computed on the basis of the then available cost of living adjustment and the retroactive rental due shall be payable within thirty (30) days of said billing. Any delay or failure of Lessor in computing or billing for up to one (1) year for the rental adjustment hereinabove provided, shall not constitute a waiver of or in any way impair the continuing obligation of Lessee to pay such rent adjustments hereunder unless more than one (1) year has passed in which case Lessee shall only be obligated for such adjustments for up to one (1) year.