Common use of Rent Calculation Clause in Contracts

Rent Calculation. The Parties hereby agree that the Base Rent payable pursuant to Section 4.1.1 during the Initial Term commencing upon the Open Date of this Lease, shall be calculated (“Base Rent Calculation”) using a standard financial amortization schedule. The amortization schedule shall calculate the principal and interest of the actual Construction Cost of Hotel, over a ten (10) year period using the following annual interest rates: Year One (1) and Year Two (2): two and one half percent (2.5%); Year Three (3) and Year Four (4): three and one half percent (3.5%); Year five (5) through Year Ten (10): four and one half percent (4.5%). For purposes of the Base Rent Calculation, Construction Costs and Soft Costs shall not exceed Landlord’s Project GMP of eight million two hundred eighteen thousand nine hundred forty-eight dollars and forty-six cents ($8,218,948.