Expense Escalation Clause Samples
The Expense Escalation clause defines how and when certain costs or expenses under an agreement may increase over time. Typically, this clause outlines the specific expenses subject to escalation, the method for calculating increases—such as linking them to inflation indices or fixed percentage increments—and the frequency of adjustments, such as annually. Its core practical function is to ensure that the party responsible for payment is aware of and agrees to potential future increases in costs, thereby protecting the service provider or seller from rising expenses and maintaining the economic balance of the contract.
Expense Escalation. 4.1 Tenant shall pay to Landlord, as additional rent, expense escalation in accordance with this Article.
Expense Escalation. For purposes of this Article:
Expense Escalation. For purposes of Sections 5.07 - 5.12
Expense Escalation. (a) Tenant shall pay to Landlord as additional rent under this Lease at the times hereinafter set forth Tenant's Share as specified in Paragraph 2 of any increase in the operating Expenses incurred by Landlord in each calendar year subsequent to the Base Year specified in Paragraph 2 over the Operating Expenses incurred by Landlord during such Base Year. The term "Operating Expenses" shall mean the total costs and expenses incurred by Landlord in connection with the management, operation, maintenance, repair and ownership of the Real Property, as determined in accordance with generally accepted accounting principles, consistently applied excluding "Tax Expenses" as defined below, and including, without limitation, the following costs (i) the reasonable allocation of salaries, wages, bonuses and other compensation relating to employees of Landlord or its agents engaged in the operation, repair, or maintenance of the Real Property; (ii) premiums and other charges incurred by Landlord with respect to fire and other casualty, rent and liability insurance, any other insurance as is deemed necessary or advisable in the reasonable judgment of Landlord, or any insurance required by the holder of any Superior Interest, and, after the Base Year, costs of repairing an insured casualty the extent of the deductible amount under the applicable insurance policy, but excluding financing charges (other than charges paid to the insurer) with respect to amounts borrowed by Landlord to pay such premiums or other charges; (iii) license, permit and inspection fees; (iv) sales, use and excise taxes on goods and services purchased by Landlord in connection with the operation, maintenance or repair of the Real Property; (v) supplies, tools, materials and equipment used in connection with the operation, maintenance and repair of the Real Property; (vi) the reasonable allocation of accounting, legal, and other professional fees and expenses; (vii) The cost of maintaining the sidewalks (amortized over a three (3) year period, at ten percent (10%) interest) and landscaping; (viii) the cost of any capital improvement made by Landlord to the Real Property or capital assets acquired by Landlord after the Base Year required under any governmental law, regulation or insurance requirement with which the Real Property was not required to comply during the Base Year, such cost or allocable portion to be amortized over the useful life thereof, together with interest on the unamortized balance ...
Expense Escalation. In order to adjust during the term of this Lease for increases in the expenses of the Landlord with respect to the Basement Premises, the Tenant shall pay to the Landlord, as additional rent, commencing on the first anniversary of the D-1 Commencement Date and on the anniversary of that date in each succeeding year thereafter, the amount indicated in Exhibit E as the Expense Payment, such amount to be paid (in addition to the fixed rent) in twelve equal monthly installments. Additional rent shall be payable with respect to the Premises in accordance with the provisions of Article THIRTY of the Lease.
Expense Escalation. In order to adjust during the term of this lease for increases in the expenses of the Landlord in operating the building, the Tenant shall pay to the Landlord, as additional rent, commencing on May 1, 2001 and on each May 1st thereafter, the amount indicated in Exhibit B as the Expense Payment, such amount to be paid (in addition to the fixed rent) in twelve equal monthly installments.
Expense Escalation. (A) As used in this Lease:
Expense Escalation. A. EXPANSION SPACE FROM EXPANSION EFFECTIVE DATE THROUGH TERMINATION DATE. For the period commencing with the Expansion Effective Date and ending on the Termination Date, the Expansion Space Base Year herein defined for the computation of Tenant's Pro Rata Share of Operating Expenses applicable to the Expansion Space is 1994 (the "Expansion Space Base Year"). For the purposes of calculating the Expansion Space Base Year and Tenant's Pro Rata Share of Operating Expenses during the period commencing on the Expansion Effective Date and ending on the Termination Date, the Operating Expenses shall be calculated in accordance with Article 4 of the Lease.
Expense Escalation. (A) For all purposes of this lease "Operating Expenses" shall mean all expenses incurred by Landlord, on an accrual basis, for the operation, cleaning and maintenance of the Building and its plazas, sidewalks and curbs (collectively, "Landlord's Property"), including all expenses incurred as a result of Landlord's compliance with any of its obligations hereunder, and shall include the following items (without limitation and without duplication):