Excess Rent Payment Sample Clauses
The Excess Rent Payment clause defines the obligation to pay any rent amount that exceeds a specified threshold or base rent. In practice, this clause typically applies in sublease or assignment situations, where the subtenant or assignee pays more rent than the original tenant was required to pay under the primary lease, and the excess is remitted to the landlord or shared between parties. Its core function is to ensure that any financial benefit from higher rent payments is properly allocated, preventing unjust enrichment and maintaining fairness between the parties involved.
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Excess Rent Payment. If Tenant (as Tenant or debtor-in-possession) shall assign this Lease or sublet the Premises, or any part thereof, at a rental or for other consideration in excess of the Rent or pro rata portion thereof due and payable by Tenant under this Lease, then Tenant shall pay to Landlord as additional Rent one-half (½) of any such excess rent or other consideration immediately upon receipt under any such assignment or, in the case of a sublease, (i) on the later of the first day of each month during the term of any sublease, or the day of receipt from such subtenant, one-half (½) of the excess of all rent and other consideration paid by the subtenant for such month over the Rent then payable to Landlord pursuant to the provisions of this Lease for said month (or if only a portion of the Premises is being sublet, one-half (½) of the excess of all rent and other consideration due from the subtenant for such month over the portion of the Rent then payable to Landlord pursuant to the provisions of this Lease for said month which is allocable on a Rentable Area basis to the space sublet), and (ii) immediately upon the receipt thereof, one-half (½) of any other consideration realized by Tenant from such subletting. Landlord shall not be responsible for any deficiency if Tenant shall assign this Lease or sublet the Premises or any part thereof at a rental less than that provided for herein. Whenever reference is made to the “excess” of rent or other consideration, such excess shall be reduced by charging (i.e., on an amortized basis over the term of the sublease or assignment) against the rent or other consideration paid by such assignee or subtenant, reasonable brokerage commissions and actual costs of leasehold improvements and other leasing concessions which Tenant has paid in connection with assigning this Lease or subleasing the applicable portion of the Premises.