Payment of Escalations Clause Samples
The "Payment of Escalations" clause defines how adjustments to payment amounts are handled when certain costs increase over time. Typically, this clause applies to contracts where prices may rise due to factors like inflation, changes in material costs, or labor rate increases, and it outlines the process for calculating and approving these additional payments. Its core function is to ensure that parties have a clear mechanism for addressing and compensating for cost increases, thereby reducing disputes and maintaining fairness throughout the contract term.
Payment of Escalations. (i) At any time during or after any Comparison Year Landlord shall render to Tenant, either in accordance with the provisions of Article 27 hereof or by personal delivery at the Premises, a Landlord's Statement or Statements showing separately or together (a) a comparison of the Taxes payable for the Comparison Year with the Base Taxes, (b) a comparison of the Operating Expenses for the Comparison year with the Base Operating Expenses, and (c) the amount of the increase in the Rent resulting from each of such comparisons. Landlord's failure to render a Landlord's Statement during or with respect to any Comparison Year shall not prejudice Landlord's right to render a Landlord's Statement during or with respect to any subsequent Comparison Year, and shall not eliminate or reduce Tenant's obligation to pay increases in the Rent pursuant to this Article 28 for such Comparison Year.
(a) Tenant's obligations with respect to increases in Operating Expenses and Taxes, shall be payable by Tenant on the first day of the month following the furnishing to Tenant of a Landlord's Statement with respect to Operating Expenses and/or Taxes, as applicable, in an amount equal to one-twelfth (1/12th) of such increase in the Rent multiplied by the number of months (and any fraction thereof) of the Term then elapsed since the commencement of the Comparison Year for which the increase in Operating Expenses and/or Taxes, as the case may be, is applicable, together with a sum equal to one-twelfth (1/12th) of such increase with respect to the month, following the furnishing to Tenant of a Landlord's Statement; and thereafter, commencing with the next succeeding monthly installment of Rent and continuing monthly thereafter until rendition of the next succeeding Landlord's Statement, the monthly installments of Rent shall be increased by an amount equal to one-twelfth (1/12th) of such increase in Operating Expenses and/or Taxes, as the case may be. Any increase in the Rent shall be collectible by Landlord in the same manner as Rent.
(b) If during the Term of this Lease, Taxes are required to be paid (either to the appropriate taxing authorities or as to tax escrow payments to a mortgagee or ground lessor) in full or in monthly, quarterly, or other installments, on any other date or dates than as presently required, then, at Landlord's option, Tenant's Proportionate Share with respect to Taxes shall be correspondingly accelerated or revised so that Tenant's Proportionate Share is due ...
Payment of Escalations. 45 D. Adjustments ............................................. 47 E.
Payment of Escalations. It is agreed that during each calendar year of the Lease Term beginning on January 1 of the calendar year following the calendar year used to determine the Operating Expenses Base and Tax Base as set forth in Article 1 herein and each month thereafter during the original Lease Term, or any extension thereof, Tenant shall pay to Landlord as Additional Rent, at the same time as the Monthly Rent is paid, an amount equal to one-twelfth (1/12) of Landlord's estimate (as determined by Landlord in its reasonable discretion) of Tenant's Pro Rata Share of any projected increase in the Taxes or Operating Expenses for the particular calendar year of the Lease Term (the "Estimated Escalation Increase"). If during any calendar year the Estimated Escalation Increase is less than the Estimated Escalation Increase for the previous calendar year on which Tenant's share of Taxes and Operating Expenses were based for said year, such Additional Rent payments, attributable to Estimated Escalation Increase, to be paid by Tenant for the new Lease Year shall be decreased accordingly; provided, however, in no event will the Rent paid by Tenant hereunder ever be less than the Monthly Rent. A final adjustment (the "Escalation Reconciliation") shall be made between the parties as soon as practicable following the end of each calendar year, but in no event later than one hundred twenty (120) days after the end of each calendar year.
Payment of Escalations. Tenant is obligated to pay such estimated and actual cost increases referred to in Sections A and B above upon receipt of Landlord's billing or notice of same. Landlord shall furnish Tenant with a statement, which sets forth, in reasonable detail, the basis for such escalations.
Payment of Escalations. 26 D. ADJUSTMENTS.......................................27 E.
Payment of Escalations. 43 D. Adjustments....................................................45 CONFORMED COPY
Payment of Escalations. (1) At any time prior to, during or after any Comparison Year Landlord shall render to Tenant a Landlord's Statement or Statements showing separately or together (i) a comparison of the Taxes payable for the Comparison Year with the Base Tax Amount, (ii) the BID Charges, (iii) a comparison of the Insurance Expense payable for the Comparison Year with the Base Insurance Expense,