Common use of SECTION Basic Rent Clause in Contracts

SECTION Basic Rent. With respect to each Item of Equipment, the Lessee shall pay to the Lessor Basic Rent commencing on the first Rent Payment Date specified in the Lease Supplement and related Schedule of Equipment and continuing on each Rent Payment Date thereafter for the duration of the Base Term for such Schedule of Equipment in an amount equal to the product of (a) the applicable percentage specified for such Rent Payment Date in the Lease Supplement and (b) the Lessor's Cost for such Item. The Lease Supplement shall indicate whether an installment of Basic Rent is payable in advance or in arrears. The Lessor and the Lessee agree that for tax purposes each installment of Basic Rent that is indicated as payable in advance will be allocated for tax purposes over the six-month period beginning on the Rent Payment Date on which such advance payment is scheduled to be made, and each installment of Basic Rent that is indicated as payable in arrears will be accrued over the six- month period ending on the Rent Payment Date on which such arrears payment is scheduled to be made.