Overage Rent Sample Clauses
The Overage Rent clause defines the conditions under which a tenant must pay additional rent based on the performance of their business, typically when sales exceed a specified threshold. In practice, this clause is common in retail leases, where the tenant pays a base rent plus a percentage of gross sales above a certain amount. This arrangement allows landlords to share in the tenant's business success and ensures that rent payments more accurately reflect the tenant's ability to pay, aligning interests and potentially increasing revenue for the landlord.
Overage Rent. (a) With respect to any Lease that provides for (i) the payment of additional rent based upon a percentage of the tenant's business during a specified annual or other period (sometimes referred to as "percentage rent"), (ii) so-called common area maintenance or "cam" charges or (iii) so-called "escalation rent" or additional rent based upon, among other things, increases in real estate taxes or operating expenses or labor costs or cost of living or port▇▇'▇ ▇▇▇es or otherwise (such percentage rent, cam charges, escalation rent and additional rent being collectively called "OVERAGE RENT"), such Overage Rent shall be adjusted and prorated on an if, as and when collected basis.
(b) As to any Overage Rent in respect of an accounting period that shall have expired prior to the Closing but which shall be paid after the Closing, Purchaser agrees that it will pay the entire amount over to Seller upon receipt thereof, less any costs of collection (including reasonable counsel fees) reasonably allocable thereto. Purchaser agrees that it shall (i) promptly render bills for any Overage Rent in respect of an accounting period that shall have expired prior to the Closing but which shall be paid after the Closing, (ii) bill ▇▇▇ants such 14 Overage Rent attributable to an accounting period that shall have expired prior to the Closing on a monthly basis for a period of six (6) consecutive months thereafter and (iii) bill ▇▇▇ants to collect Overage Rent in the same manner that Purchaser bills tenants for Fixed Rent subsequent to the Closing; provided, however, that Purchaser shall have no obligation to commence any actions or proceedings to collect any such Overage Rent. Notwithstanding the foregoing, if Purchaser shall be unable to collect such Overage Rent, Seller shall have the right, upon prior written notice to Purchaser, to pursue tenants to collect such delinquencies (including, without limitation, the prosecution of one or more lawsuits), but Seller shall not be entitled to evict (by summary proceedings or otherwise) any such tenants. Seller shall furnish to Purchaser all information relating to the period prior to the Closing that is reasonably necessary for the billing of such Overage Rent, and Purchaser will deliver to Seller, concurrently with the delivery to tenants, copies of all statements relating to Overage Rent for a period prior to the Closing. Purchaser shall bill ▇▇▇ants for Overage Rent for accounting periods prior to the Closing in accordance with and...
Overage Rent. In addition to the Net Minimum Rental hereabove reserved, the Lessee covenants and agrees with the Lessor hat commencing on the first (1st) day of the month following the "Overage Date" (as hereinafter defined) and on the first day of each succeeding month during the balance of the first three (3) Lease Years of the Term, the Lessee will pay to the Lessor an additional rental (sometimes hereinafter called "Overage Rent') as hereinafter provided. On or before the fifteenth (15th) day after the close of each and every calendar quarter (such last day of the quarter shall herein be referred to as "Quarterly Reporting Date") during the term, the Lessee shall render a true and correct statement signed by the Chief Financial Officer of Lessee certifying the total level of "Deposits at the Premises". The last day of the first quarter in which the level of Deposits at the Premises shall equal or exceed $20 million shall be deemed to be the Overage Date. If the Overage Date is determined at a time after the first installments of Overage Rent is payable to Lessor, such installments shall be paid to Lessor with the installment of Overage Rent next due after the Overage Date is determined. Overage Rent shall thereafter be due for each month on. during the first three (3) Lease Years of the Original Term as follows:
(i) For each month during the calendar quarter immediately following the Overage Date, the Lessee will pay to the Lessor an additional rental of One Thousand Two Hundred Forty-Nine and 60/100 ($1,249.60) Dollars per month;
(ii) For each month during any calendar quarter following a quarter in which the level of Deposits at the Premises as of the Quarterly Reporting Date shall equal or exceed $20 million, the Lessee will pay to the Lessor an additional rental of One Thousand Two Hundred Forty-Nine and 60/100 ($1,249.60) Dollars per month;
(iii) For each month during any calendar quarter following a quarter in which the level of Deposits at the Premises as of the Quarterly Reporting Date shall equal or exceed $19 million but be less than $20 million, the Lessee will pay to the Lessor an additional rental of Eight Hundred Thirty-Three and 97/100 Dollars ($833.07) per month.
(iv) For each month during any calendar quarter following a quarter in which the level of Deposits at the Premises as of the Quarterly Reporting Date shall equal or exceed $18 miLlion but be less than $19 million, the Lessee will pay to the Lessor an additional rental of Four Hundred Sixteen...
Overage Rent. In addition to such Fixed Rent, Subtenant shall pay to Sublandlord, during the term hereof, overage rent in the monthly amount of Two Hundred Thirty-Three Dollars ($233.00) which amount shall be payable to Sublandlord, without notice, on the first day of each month during the term.
Overage Rent. 37 percentage rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Overage Rent. 15 percentage rent .......................................................... 15
Overage Rent. (16) To be deleted if pursuant to applicable option provision of Declaration, Unit is to be delivered vacant and free and clear of tenancies at Closing.
Overage Rent. The following proration principles shall apply to the proration of overage rents, whether finally determined before or after the expiration of the relevant fiscal years under the respective Leases. Overage rents shall be separately prorated under each Lease on the basis of the fiscal year set forth in such Lease for the payment of overage rents. All interim overage rent payments made before the Closing Date shall be retained by Seller until year-end adjustment and determination of Seller's allocable share thereof, except that interim payments received by either party for the month in which the Closing Date occurs shall be prorated between Seller and Purchaser based upon the number of days in that month occurring prior to the Closing Date, and the party receiving the interim payment shall remit to or credit, as the case may be, the other party its proportionate share for such month. At Closing Purchaser shall provide to Seller security in a form of a guaranty from the fee simple owner of each shopping center in a form reasonably acceptable to Seller ("Overage Rent Security") to ensure the payment to Seller of all overage rents to which Seller will be entitled upon final proration of overage rents ("Seller's Overage Rent"), as provided below. All amounts received by Purchaser on or after the Closing Date as interim payments of overage rents shall be retained by Purchaser until year-end adjustment and determination of Seller's allocable share thereof. Upon final determination of overage rents collected from a tenant for the fiscal year under its Lease in which the Closing Date occurs, Seller and Purchaser shall adjust between themselves amounts collected for such fiscal year on account of overage rents, and Seller's allocable share of such overage rents shall be equal to an amount determined by multiplying total overage rents collected for such fiscal year by a fraction whose numerator is the number of days in such fiscal year before the Closing Date, and whose denominator is the total number of days in such fiscal year. Purchaser shall furnish Seller with financial statements indicating the sales and percentage rent figures for each tenant for all relevant periods. Within fifteen (15) days after final determination of overage rents collected from any tenant for the fiscal year in which the Closing Date occurs, Purchaser shall remit to Seller its allocable share, less interim payments previously retained by Seller, if any. If Seller has retained amounts in ex...