Rent Commencement Date; Late Opening Charges; Prepayments Clause Samples

This clause defines when the tenant’s obligation to begin paying rent starts, outlines penalties if the tenant fails to open for business on time, and addresses any advance payments made before occupancy. Typically, the rent commencement date may differ from the lease start date, depending on when the premises are ready for use or when the tenant actually opens for business. If the tenant delays opening, the clause may impose daily charges or other penalties, and it clarifies how prepayments such as security deposits or prepaid rent are handled. The core function of this clause is to ensure both parties understand when financial obligations begin, discourage delays in opening, and provide clear terms for handling advance payments, thereby reducing disputes and aligning expectations.
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Rent Commencement Date; Late Opening Charges; Prepayments. (a) The Rent Commencement Date is the earlier of the date on which the Permittee’s Work in the Concession Unit, as described in Section 1(2) of Attachment “A” to this Permit, is substantially complete and Permittee opens for business therein, or the Latest Opening Date for the Concession Unit, as set forth on attached Exhibit “5” (the “Latest Opening Date”). After the Rent Commencement Date has occurred, Permittee shall, promptly after Port’s written request, execute and return to the Port a written acknowledgment of the Rent Commencement Date. (b) In the event Permittee fails to open the Concession Unit for business on or before the Rent Commencement Date, Port will incur substantial damages, the exact amount of which are extremely difficult to fix. Accordingly, for each day after the Rent Commencement Date until the day on which Permittee initially opens the Concession Unit for business, Permittee shall pay to Port Five Hundred Dollars ($500) (in addition to the Rent provided in Paragraph E above), as liquidated damages. The parties have agreed that this amount represents a reasonable approximation of the damages likely to be suffered by Port in the event Permittee shall fail to open the Concession Unit for business on or before the Rent Commencement Date. In the event the Concession Unit is not open for business on the date that is sixty (60) days after the Rent Commencement Date, Port shall have the option to terminate this Permit, exercisable by written notice to Permittee given before the Concession Unit is open for business. In that event, Permittee shall be liable for all damages associated with such termination or removal, including Port’s re-leasing costs, and for any Losses (as defined in Section 1(2)(d) of Attachment “A” to this Permit) arising under Section 1(2)(a) of Attachment “A” to this Permit. (c) Notwithstanding anything in this Permit to the contrary, in the event Permittee shall fail to pay any Rent when due hereunder, the Port shall have the right to require Permittee to pay estimated monthly Rent (including the monthly installment of the Minimum Annual Guaranty and one month’s Percentage Fees, and all other amounts payable by Permittee to Port in a calendar month under this Permit) one (1) month in advance of when such payment would otherwise be due. Such prepayment will be based on the highest monthly Rent previously due from Permittee under this Permit. Such right shall be exercised by a written notice from Port to Permittee, which...
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Rent Commencement Date; Late Opening Charges; Prepayments. 4 Paragraph E.4 Remitting Payments. 5 Paragraph H.1 Relocation, Expansion, Contraction. 7 Paragraph H.2 Future Terminal Buildings Additions. 9 Paragraph I.1 Management. 9 Paragraph I.2 Personnel. 9
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Rent Commencement Date; Late Opening Charges; Prepayments. 4 Paragraph E.4 Remitting Payments. 5 Paragraph H.1 Relocation, Expansion, Contraction. 7 Paragraph H.2 Future Terminal Buildings Additions. 9 Paragraph I.1 Management. 9 Paragraph I.2 Personnel. 9 Paragraph I.3 Quality of Products and Services. 10 Paragraph I.4 Advertising Contents. 11 ▇▇▇▇▇▇▇▇▇ I.7 [Intentionally Omitted.] 13 Paragraph I.8 [Intentionally Omitted.] 13 Paragraph I.9 Public Address System. 13 Paragraph I.10 [Intentionally Omitted.] 13
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Related to Rent Commencement Date; Late Opening Charges; Prepayments

  • Base Monthly Rent Commencing on the Commencement Date and continuing throughout the Lease Term, Tenant shall pay to Landlord the Base Monthly Rent set forth in Section K of the Summary.

  • Rent Commencement Date The "Rent Commencement Date" shall be the date that Tenant first uses the Premises or any portion thereof for any purpose permitted under this lease. In the event this lease pertains to a building or building interior finish to be constructed, the "Rent Commencement Date" shall be the date upon which the buildings and other improvements erected and to be erected upon the premises shall have been substantially completed in accordance with the plans and specifications described on Exhibit "C" attached hereto and incorporated herein by reference, provided however, that if Landlord shall be delayed in such substantial completion as a result of: (i) Tenant's failure to agree to plans, specifications, and cost estimates, within a reasonable period of time; (ii) Tenant's request for materials, finishes or installations other than Landlord's standard; (iii) Tenant's changes in plans; the commencement date and the payment of rent hereunder shall be accelerated by the number of days of such delay, and provided further that if Landlord cannot substantially complete the premises as a result of any events (i) through (iii) above, Landlord may as its election complete so much of Landlord's work as may be practical under the circumstances and, by written notice to Tenant, establish the commencement date as the date of such partial completion, subject to any applicable accelerations due to delays resulting from events (i) through (iii) above. Taking possession by Tenant shall be deemed conclusively to establish that said buildings and other improvements have been completed in accordance with the plans and specifications and that the premises are in good and satisfactory condition, as of when possession was so taken. Tenant acknowledges that no representations as to the repair of the premises have been made by Landlord, unless such are expressly set forth in the lease. After such "Rent Commencement Date" Tenant shall, upon demand, execute and deliver to Landlord a letter of acceptance of delivery of the premises. In the event of any dispute as to substantial completion of work performed, execute or required to be performed by Landlord, the certificate of Landlord's architect or general contractor shall be conclusive.

  • Lease Year Lease Year" means each consecutive twelve-month period beginning with the Commencement Date, except that if the Commencement Date is not the first day of a calendar month, then the first Lease Year shall be the period from the Commencement Date through the final day of the twelve months after the first day of the following month, and each subsequent Lease Year shall be the twelve months following the prior Lease Year.

  • Term Commencement Date For purposes of this Lease, the "Term Commencement Date" shall be defined as the earlier of (A) the first date on which Tenant occupies all or any part of the Premises for the conduct of business, or (B) fourteen (14) days after the date on which both of the following shall occur: (i) Landlord's Work shall be (or be deemed to be) substantially completed (notwithstanding the incompleteness of (x) so-called "punch list" items, (y) work to be undertaken by Landlord which does not materially impair Tenant's use of the Premises for the purposes allowed herein, and (z) finishes and exterior landscaping to the Property), and (ii) a certificate of occupancy has been (or is deemed to have been) issued with respect to the Premises (or the building inspector has (or is deemed to have) provided a verbal "sign off" on Landlord's Work and indicated that a certificate of occupancy will issue in due course). If Tenant (or any agent, employee or contractor of Tenant) causes any delay in the performance or substantial completion of Landlord's Work (including, without limitation, by failing to timely prepare the Construction Drawings), then Landlord's Work shall be deemed to have been substantially completed on the date that Landlord's Work would have been substantially completed but for such delay, and the certificate of occupancy for the Premises (or building inspector "sign off" as aforesaid) shall be deemed to have been issued (or provided) on the date it would have been issued (or provided) but for such delay. Landlord shall use reasonable efforts to substantially complete Landlord's Work by the date (as the same may be modified by Landlord at or prior to the time of its approval of the Construction Drawings as provided in the second paragraph of Section 10.22, the "Estimated Substantial Completion Date") which is ninety (90) days after Landlord's final approval of the Construction Drawings, but Tenant shall not have any claim against Landlord, and Landlord shall have no liability to Tenant, if Landlord's Work is not substantially completed by the Estimated Substantial Completion Date. Notwithstanding the foregoing, if Landlord fails to substantially complete Landlord's Work on or before the date which is sixty (60) days after the Estimated Substantial Completion Date due to Landlord's fault or neglect, then Tenant shall be entitled to a credit (offset) against Base Rent due and payable as of the Term Commencement Date in the amount of one (1) day of Base Rent for each day after the Estimated Substantial Completion Date that Landlord's Work shall not have been substantially completed.

  • Extension Term The Term of this Lease of all of the Premises may be extended for the Extension Term by unconditional written notice from Tenant to Landlord at least twelve (12) (but not more than fifteen (15)) months before the end of the Initial Term, time being of the essence. If Tenant does not timely exercise this option, or if on the date of such notice or at the beginning of the Extension Term (i) an Event of Default by Tenant exists, or (ii) Tenant is not leasing sixty percent (60%) or more of the Premises, or (iii) Tenant has made any Transfer under Article 13 (other than a Related Party Transfer), at Landlord’s option upon written notice to Tenant, Tenant’s right to extend the Term of this Lease shall irrevocably lapse and be void and of no further force and effect, Tenant shall have no further right to extend, and this Lease shall expire at the end of the Initial Term. If Tenant fails to timely exercise its rights hereunder, then within seven (7) days of Landlord’s request therefor, Tenant shall execute and deliver to Landlord a certification, in recordable form, confirming the Tenant’s failure to exercise (or waiver of) such right, and Tenant’s failure to so execute and deliver such certification shall (without limiting Landlord’s remedies on account thereof) entitle Landlord to execute and deliver to any third party, and record, an affidavit confirming the failure or waiver, which affidavit shall be binding on Tenant and may be conclusively relied on by third parties. All references to the Term shall mean the Initial Term as it may be extended by the Extension Term. The Extension Term shall be on all the same terms and conditions except that the Base Rent for the Extension Term shall be as set forth below.