Adjustments to Basic Rent Clause Samples
The "Adjustments to Basic Rent" clause defines how and when the base rent amount under a lease may be modified during the term of the agreement. Typically, this clause outlines specific events or conditions—such as changes in operating expenses, property taxes, or periodic rent escalations—that trigger an increase or decrease in the rent. For example, the rent might be adjusted annually based on a set percentage or an external index like the Consumer Price Index. The core function of this clause is to ensure that the rent remains fair and reflective of changing economic circumstances, thereby protecting both landlord and tenant from unforeseen financial shifts.
Adjustments to Basic Rent. (i) In the event of a refinancing as contemplated by Section 16 of the Participation Agreement, then the Basic Rent percentages set forth in Exhibit B-1, the Termination Value percentages set forth in Exhibit C and the EBO Amounts set forth on Exhibit D shall be recalculated (upwards or downwards) by the Owner Participant as contemplated by such Section 16 to (1) maintain the Owner Participant's Net Economic Return and (2) to the extent possible consistent with clause (1) hereof, to minimize the Net Present Value of Rents to Lessee;
(ii) In the event that Lessee pays an indemnity obligation under the Tax Indemnity Agreement, then the Termination Value percentages set forth in Exhibit C and the EBO Amounts set forth on Exhibit D shall be recalculated (upwards or downwards) by the Owner Participant, using the same methods and assumptions (except to the extent such assumptions shall be varied to take into account the Loss (as defined in the Tax Indemnity Agreement) that is the subject of such indemnification and any prior or contemporaneous Loss) used to calculate the Termination Value percentages and the EBO Amounts on the Delivery Date, in order to (1) maintain the Owner Participant's Net Economic Return and (2) to the extent possible consistent with clause (1) hereof, minimize the Net Present Value of Rents to Lessee.
(iii) Whenever Basic Rent is recalculated pursuant to this Section 3(c), the Owner Participant shall redetermine the Termination Value percentages set forth in Exhibit C and the EBO Amounts set forth in Exhibit D in a manner consistent with such recalculation.
(iv) Any recalculation of Basic Rent and Termination Value percentages pursuant to this Section 3(c) shall be determined by the Owner Participant and shall be subject to the verification procedures set forth in Section 3(g) hereto. Such recalculated Basic Rent and Termination Value percentages shall be set forth in a Lease Supplement or an amendment to this Lease.
(v) Anything contained in the Participation Agreement or this Lease to the contrary notwithstanding (I) each installment of Basic Rent payable hereunder, whether or not adjusted in accordance with this Section 3(c), shall be, under any circumstances and in any event, in an amount at least sufficient for Lessor to pay in full, on the date on which such installment of Basic Rent is due, any payments then scheduled to be made on account of the principal of and interest on the Equipment Notes and (II) the amount of Termination Val...
Adjustments to Basic Rent. The Basic Rent shall be adjusted upwards on each Basic Rent Payment Date by an amount, determined by Agent and notified to Lessor and Lessee prior to the Basic Rent Payment Date, which represents the amount of interest due and payable on the Loans relating to the Aircraft on such Basic Rent Payment Date and determined in accordance with the Credit Agreement.
Adjustments to Basic Rent. (i) In the event that Sublessee pays an indemnity obligation under the Sublease Tax Indemnity Agreement, then the Basic Rent, Termination Value amounts set forth in EXHIBIT C and the EBO Amount set forth on EXHIBIT D shall be recalculated upwards or downwards by the Sublessor using the same methods and Sublease Agreement (MSN 30808) assumptions (except to the extent such assumptions shall be varied to take into account the Loss (as defined in the Sublease Tax indemnity Agreement) that is the subject of such indemnification and any prior or contemporaneous Loss) used to calculate Basic Rent amounts, the Termination Value amounts and the EBO Amount on the Delivery Date in order to (1) maintain the Sublessor's Net Economic Return and (2) to the extent possible consistent with clause (1) hereof, minimize the Net Present Value of Rents to Sublessee.
(ii) Any recalculation of Basic Rent, Termination Value amounts and EBO Amounts pursuant to this SECTION 3(c) shall be determined by Sublessor and shall be subject to the verification procedure set forth in SECTION 3(g) hereto.
(iii) Any such adjusted Basic Rent, Termination Value amounts and EBO Amount shall be set forth in a Sublease Supplement or an amendment to the Sublease.
Adjustments to Basic Rent. The monthly basic rent shall be increased annually by five percent (5%) and otherwise adjusted as follows January 1, 2001 through June 30, 2001 or sooner $63,035.50 per month July 1, 2001 or sooner through December 31, 2001 $47,575.00 per month January 1, 2002 through December 31, 2002 $49,953.75 per month January 1, 2003 through December 31, 2003 $52,451.44 per month
Adjustments to Basic Rent. With respect to any Renewal Term, Escalated Basic Rent shall not be adjusted until the April 1st first occurring after the first anniversary of the applicable Renewal Term. As of such April 1st date and thereafter on each succeeding April 1st during the applicable Renewal Term, Escalated Basic Rent shall be increased by 2.25% over the Basic Rent in effect for the most recent one (1) year period immediately preceding each of the foregoing dates (each such date being hereinafter referred to as the "Basic Rent Adjustment Date").
Adjustments to Basic Rent. On January 1, 1991, and on January 1 of each year thereafter during the Fixed Term ("Adjustment Dates") the Basic Rent shall be increased or decreased by a percentage equal to the percentage increase or decrease in the consumer price index as herein defined. For these purposes, the consumer price index is defined to be the "Consumer Price Index - All Urban Consumers - Northeast Region Population Size Class C (5,000 - 500,000), All Items (1982-1984 = 100)," published by the Bureau of Labor Statistics, United States Department of Labor. For purposes of making the initial basic rent adjustment, the index number indicated in the column for the northeast region entitled "All Items" for the bimonthly period ending June 30, 1989, shall be the "Base Index Number" and the corresponding index number for the bimonthly period ending June 30, 1990, shall be the "Current Index Number." For subsequent annual adjustments, the respect "Base Index Numbers" will be the corresponding index number for the bimonthly period ending June 30th of each preceding year, and the respective "Current Index Numbers" will be the corresponding index number for the bimonthly period ending June 30th of the current year. On each Adjustment Date, VT-ETV's Basic Rent shall be increased or decreased by the same percentage rate that the "Current Index Number" has increased or decreased from the "Base Index Number."
Adjustments to Basic Rent. The Basic Rent shall be subject to adjustment, in the manner hereinafter set forth, for increases in the index known as United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index, All Urban Consumers, United States City Average, All Items, (1982-84=100) (“CPI”) or the successor index that most closely approximates the CPI. If the CPI shall be discontinued with no successor or comparable successor index, Landlord and Tenant shall attempt to agree upon a substitute index or formula, but if they are unable to so agree, then the matter shall be determined by arbitration in accordance with the rules of the American Arbitration Association then prevailing in New York City. Any decision or award resulting from such arbitration shall be final and binding upon Landlord and Tenant and judgment thereon may be entered in any court of competent jurisdiction. In no event will the annual Basic Rent as adjusted by the CPI adjustment be less than the Basic Rent in effect for the one (1) year period immediately preceding such adjustment.
Adjustments to Basic Rent. The monthly basic rent shall be adjusted as follows: January 1, 2004 through the Expansion Space Commencement Date $13,135.50 per month The Expansion Space Commencement Date through December 31, 2004 $18,371.50 per month January 1, 2005 through December 31, 2005 $19,290.08 per month
Adjustments to Basic Rent. Basic Rent shall be adjusted (i) upwards on each Basic Rent Payment Date by an amount, determined by the Agent and notified to the Lessor and the Lessee prior to the Basic Rent Payment Date, that represents the amount of interest due and payable on the Loans relating to the Aircraft on such Basic Rent Payment Date and determined in accordance with the Credit Agreement, and (ii) downwards on each Basic Rent Payment Date by an amount equal to the amount of principal payments deferred pursuant to Section 2.4(A)(ii) of the Credit Agreement (such downward adjustment to be applied pro rata among the Leases).
Adjustments to Basic Rent. (i) If the Delivery Date does not occur on [____________________] or Transaction Expenses paid by Lessor pursuant to Article 12 of the Participation Agreement are other than [_____]% of Lessor's Cost, then in each case the Basic Rent percentages set forth in Exhibit B-1, the allocation of Basic Rent set forth in Exhibit B-2, the Stipulated Loss Value percentages set forth in Exhibit C, the Termination Value percentages set forth in Exhibit D[, the Initial Installments, the Remaining Installments] and the Special Purchase Price shall be recalculated by Owner Participant, on or prior to [__________________], using the same methods and assumptions used to calculate original Basic Rent percentages and allocations, Stipulated Loss Value and Termination Value percentages[, the Initial Installments, the Remaining Installments] and the Special Purchase Price in order to: (1) maintain Owner Participant's Net Economic Return and (2) to the extent possible consistent with clause (1) hereof, minimize the Net Present Value of Rents. In such recalculation there will be no change in the amortization of the Equipment Notes.