Maintenance Rent Clause Samples
The Maintenance Rent clause defines the lessee's obligation to pay a specified amount to cover the ongoing maintenance of leased equipment or property. Typically, this payment is separate from the base rent and is calculated either as a fixed fee or based on actual maintenance costs incurred during the lease term. By clearly outlining the lessee's responsibility for maintenance expenses, this clause ensures that the property remains in good condition and prevents disputes over who bears the cost of upkeep.
Maintenance Rent. Lessee shall pay Maintenance Rent to Lessor in respect of the Aircraft. Such Maintenance Rent shall be calculated and paid in accordance with Schedule 8 (Maintenance Rent). Lessee acknowledges and agrees that Maintenance Rent is additional rent for the leasing of the Aircraft and not cash collateral or other collateral security for Lessee’s maintenance obligations under this Agreement. Once paid, all Maintenance Rent is the property of Lessor, it is not refundable to Lessee under any circumstances whatsoever and Lessee has no interest therein whatsoever. In addition, Maintenance Rent shall otherwise be treated for all purposes of this Agreement as Rent, and Lessor shall have the same remedies in respect of Lessee’s failure to pay Maintenance Rent when due as Lessor has for Lessee’s failure to pay Rent when due.
Maintenance Rent. 5.5.1 In addition to Base Rent, and subject to escalation and adjustment as provided in this Article 5.5.1, LESSEE will pay to LESSOR the following categories of Maintenance Rent (each as defined on Schedule I) based on the utilization of the Aircraft during the applicable Maintenance Rent Period: Airframe 6Y Maintenance Rent, Airframe 12Y Maintenance Rent, Performance Restoration Maintenance Rent, Engine LLP Maintenance Rent, Landing Gear Maintenance Rent and APU Maintenance Rent, (collectively "Maintenance Rent" and each of the rates listed in Schedule I, a "Maintenance Rent Rate").
(a) Except for the Engine LLP Maintenance Rent Rate, all of the Maintenance Rent Rates listed in Schedule I are based on [REDACTED: Item 2] cost estimates and, without requirement for any notice, will escalate by the percentages specified in Schedule I on the [REDACTED: Item 2] of each Maintenance Rent Adjustment Period. For avoidance of doubt, such escalation calculation will be made on the [REDACTED: Item 2] of the Maintenance Rent Adjustment Period to the then- existing Maintenance Rent Rates and the resulting escalated Maintenance Rent Rates will be payable for all operation and lapse of calendar time in respect of the Aircraft in that same Maintenance Rent Adjustment Period. In addition to the foregoing, each Maintenance Rent Rate is subject to further increase based on (a) any material change in the maintenance recommendations (work content or interval) of Manufacturer or Engine Manufacturer, as applicable, and (b) the actual cost experience of Lessee in respect of the corresponding MRA (as evidenced by prior MRA Claims).
(b) The Engine LLP Maintenance Rent Rate will be adjusted as of the [REDACTED: Item 2] of each Maintenance Rent Adjustment Period to be equal to the then current Engine LLP Cost per Cycle. The "Engine LLP Cost per Cycle" for an Engine for any given calendar year will be calculated by [REDACTED: Item 2].
(c) In respect of Performance Restoration Maintenance Rent payable during the period from [REDACTED: Item 2] through [REDACTED: Item 2] of the calendar year in which Delivery occurs, LESSEE will pay LESSOR Performance Restoration Maintenance Rent in the amount set out in Schedule I, Section D.3 (as such rates are escalated as described in Article 5.5.1(a)) for each Engine (payable when the Engine is utilized on the Aircraft or another aircraft). On [REDACTED: Item 2] of the calendar year immediately following the year in which Delivery occurs and therea...
Maintenance Rent. See Section 5 below.
Maintenance Rent. For each calendar year of the Term that the "Operating Expenses" (as hereinafter defined) exceed the actual operating expenses for 1995, (if in 1995, less than Ninety-Five Percent (95%) of the Net Rentable Area of the building is fully occupied, all components of operating expenses (as hereinafter defined) shall be adjusted for such year to the amount which Lessor reasonable estimates would have been incurred had the building been fully occupied) per square foot of the Net Rentable Area of the Building, Lessee covenants and agrees to pay to Lessor, as maintenance rent ("Maintenance Rent"), a percentage of such excess Operating Expenses based on the ratio of the New Rentable Area of the Premises to the Net Rentable Area of the Building, which is and for all purposes shall be deemed to be Five Percent (5%) ("Lessee's Proportionate Share").
(a) For the purpose of calculating Maintenance Rent to be paid pursuant to the terms of this Section 4(a), Lessor shall make a good-faith estimate of the Operating Expenses (the "Projection of Operating Expenses") it expects to be incurred with respect to the Building for each calendar year after the calendar year during which this Lease is executed. The Projection of Operating Expenses shall be made by Lessor not less than thirty 57 (30) days prior to the commencement of such calendar year. Lessor shall deliver to Lessee a written statement setting forth the Projection of Operating Expenses for such following year and shall provide therewith a calculation of the increase in monthly installments of Rent, which shall thereafter include Base Rent and Maintenance Rent, as well as any Additional Rent (as hereinafter defined), payable hereunder, such increase to become effective January 1 of such following year; provided, however, that failure of Lessor to provide any such statement shall not relieve Lessee of its obligation to pay Base Rent and Maintenance Rent at the rate then in effect under this Lease, within thirty (30) days of the date Lessee receives such statement from Lessor, provided that such notice is given by March 31st of the following year. Lessee shall pay any increase in monthly Rent reflected thereby, effective retroactively to January 1 of such year. Lessor and Lessee acknowledge that Maintenance Rent is based on the Operating Expenses for a fully-occupied Building. Therefore, Lessor and Lessee agree that, at any time at which less than ninety-five percent (95%) of the Net Rentable Area of the Building is ful...