Operating Cost Reimbursement Clause Samples

The Operating Cost Reimbursement clause establishes the obligation for one party to repay another for expenses incurred in the operation or maintenance of a property, facility, or service. Typically, this clause outlines which specific costs are eligible for reimbursement, such as utilities, repairs, or administrative fees, and may set procedures for submitting and approving reimbursement claims. Its core practical function is to ensure that the party responsible for operating costs is fairly compensated, thereby allocating financial responsibility and preventing disputes over shared or incurred expenses.
Operating Cost Reimbursement. The annual base rent shall be adjusted from time to time in accordance with this section to reflect increases in the expense of operating the building ("Operating Costs"). The annual base rent, including the adjustments made pursuant to this section, is referred to in this lease as the "Rent". Landlord, during the last month of the building's fiscal year or as soon as thereafter as practical, shall given Tenant written notice of Landlord's estimate of increases in operating costs for the ensuing fiscal year as compared to the Expense Stop Amount. As used herein ("Tenant's Prorata Share") shall be the ratio of the premises to the total leasable are of the building. On or before the first day of each and every month during the ensuing fiscal year, tenant shall pay to Landlord 1/12th of Tenant's prorata share of each estimated amount. If at any time(s) it appears to Landlord that the actual costs for the current fiscal year will vary from Landlord's estimate by more than ten percent (10%), Landlord may, by written notice to ▇▇▇▇▇▇, revise ▇▇▇▇▇▇▇▇'s estimate for such year and revise the 1/12th billing accordingly. As soon as practical after the end of each fiscal year where estimated increases in operating costs are required by this lease to be paid, Landlord shall send to Tenant a statement of the actual amount of the preceding fiscal year's increase (if any) over the Expense Stop Amount. If the estimated amount exceeded the actual amount paid by Tenant, such excess amount shall be credited to Tenant within thirty (3) days from the date of the statement. If the estimated amount was less that the actual amount owed to Landlord, then Tenant shall pay to Landlord such difference within thirty (30) days from the date of the statement. If at the end of the building's fiscal year less than twelve (12) months remain on this lease, the final estimated increase being paid by Tenant in the final lease year shall prevail to the end of this lease. Operating costs shall include all costs of administration, operation, repairs, maintenance, utilities, insurance and taxes, but shall not include federal or state income taxes, tenant alterations, leasing commissions, interest expense, debt service, capital items, or depreciation. If the Building is not fully leased or if Landlord is not providing standard Building services to all tenants during any calendar year, actual Expenses shall be adjusted to reflect a fully serviced and leased Building for the purpose of making the ad...
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Operating Cost Reimbursement. (i) Freeport shall be entitled to reimbursement of its actual operating costs incurred in rendering services under this Agreement (except for the services described in Section 5.5 hereinabove for which Freeport shall be compensated by the Marketing Fee described in Section 6.4 below) without duplication of any item of cost incurred under this Agreement and any other agreement between Freeport and Felmont. Charges from Freeport's Related Parties which are included in Operating Cost Reimbursement shall be no less favorable to Felmont than would be the case if such services were purchased in an arm's-length transaction; provided however, such charges from Related Parties shall in any event fully reimburse Freeport, without any profit, for any and all direct and indirect costs incurred. Freeport shall keep accurate records of such actual operating cost (including costs from Freeport's Related Parties or other third parties, but excluding G & A [subject to the provisions of Section 6.5 hereof] and depreciation) incurred each month in rendering the services described in Articles V, VII, VIII and XVI in respect of Felmont Sulphur. In this regard Freeport shall cause cost records to be kept for each activity center (e.g. purification, vatting, etc.) so that an average cost incurred per ton of all sulphur moved through such activity center during a month may be determined and charged proportionally to each quantity of sulphur moved through the activity center during such month. Such actual operating cost shall include the full cost of services rendered by any Freeport Employee specifically for the performance of this Agreement, the charges for such services shall reflect not only an allocation of such Freeport Employee's wages (including bonuses), but also a fair and equitable allocation of that Freeport Employee's benefits and departmental overhead (as opposed to G & A). Operating Cost Reimbursement shall include, at Freeport's option, Felmont's estimated proportionate share of Closure Costs of any Facility or Facilities, the amount of such accrual to be determined on a net present value basis or other basis which reflects Felmont's pre-payment of such estimated proportionate share of Closure Costs. (ii) Freeport shall invoice Felmont for reimbursement of such actual cost, and for payment of the associated Management Fee described in Section 6.2 below, during the following month.
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Operating Cost Reimbursement. Tenant shall pay to Landlord, as additional rent for Landlord's Operating Costs, an additional payment on the first day of each month occurring during the Term hereof one-twelfth (1/12) of the amount of estimated annual Landlord's Operating Costs and estimated annual Real Estate Taxes.
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Operating Cost Reimbursement. Solely until SCE’s receipt of the Required Approval, Lessee shall reimburse SCE and its Affiliates and their respective successors and assigns (collectively, the “SCE Parties”) for the amount of any cost component of Additional Rent requested by SCE in the SCE Application that is disallowed by FERC in a final, unappealable decision for inclusion by SCE in its FERC rates (such decision, the “Disallowance Decision” and any such amount, the “Reimbursement Amount”). Following the date SCE receives the Disallowance Decision, SCE shall provide to Lessee a calculation of the Reimbursement Amount. Lessee shall pay to the applicable SCE Parties any Reimbursement Amount within 30 days after receipt of the applicable calculation by SCE.
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Operating Cost Reimbursement. From and after the commencement date of this lease, Tenant shall pay to Landlord within (30) thirty days after Landlord gives a statement to Tenant, an amount equal to Tenants proportionate share (3.5%) on any increase or escalation in excess of the operating expenses over and above the base year established in this lease. Attached hereto as exhibit D is the operating expense budget for the base year 2002.
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Operating Cost Reimbursement 
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Related to Operating Cost Reimbursement

  • Cost Reimbursement This payment method is based on an approved budget and submission of a request for reimbursement of expenses ▇▇▇▇▇▇▇ has incurred at the time of the request;

  • Operating Costs Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

  • Operating Expense Payments Landlord shall deliver to Tenant a written estimate of Operating Expenses for each calendar year during the Term (the “Annual Estimate”), which may be revised by Landlord from time to time during such calendar year. During each month of the Term, on the same date that Base Rent is due, Tenant shall pay Landlord an amount equal to 1/12th of Tenant’s Share of the Annual Estimate. Payments for any fractional calendar month shall be prorated.

  • Meal Reimbursement When an employee is specifically directed by the City to work two (2) hours or longer at the beginning or end of their normal work shift away from their place of residence of at least eight (8) hours or work two (2) hours or longer at the end of their work shift of at least eight (8) hours when the employee is called in to work on their regular day off, or otherwise works under circumstances for which meal reimbursement is authorized per Ordinance 111768 and the employee actually purchases a reasonably priced meal away from his place of residence as a result of such additional hours of work, the employee shall be reimbursed for the "reasonable cost" of such meal in accordance with Seattle Municipal Code (SMC) 4.20.

  • Operating Expenses During the term of this Lease Tenant shall pay to Landlord as additional rent all ad valorem taxes and operating expenses and other charges of every kind and nature (“Operating Expenses”) incurred or paid by Landlord in connection with the maintenance, repair, operation, management, or ownership of the Premises. If requested, Tenant agrees to pay Landlord on the first day of each calendar month, together with the payment of rent, such amount as Landlord estimates from time to time as necessary to pay such expenses. Landlord shall ▇▇▇▇ Tenant annually after the end of each year for such expenses. In the event the aggregate of Tenant’s installments during the year shall be less than the amount of Operating Expenses due from Tenant, such deficiency shall be paid to Landlord within ten (10) days after demand therefore. In the event the aggregate of Tenant’s installments during the year shall be more than the amount of Operating Expenses due from Tenant, such overpayment shall be applied to Tenant’s next monthly installment of Operating Expenses and Rent. As used herein, the term “Operating Expenses” shall include the cost of maintaining casualty and public liability insurance covering the Premises, real estate ad valorem taxes and all costs of managing, operating and maintaining the Premises, including but not limited to: costs of constructing, maintaining and repairing on site and off-site traffic controls; decorating, painting, lighting, sanitary control, and removal of trash, garbage and other refuse; maintenance, repair and replacement of utility systems serving any common areas, including water, sanitary sewer and storm water lines and other utility lines, pipes and conduits; costs of utilities, including water, sewer, electricity, and gas; janitorial, sweeping and cleaning services, trash bin rentals, trash pickup fees, licenses, permits and inspection fees; parking lot painting and restriping; planting, irrigating, gardening and landscaping; signs and markers; parking control and security guards and fire protection or detection service; all general maintenance and repair; other general operation and maintenance costs and expenses; all labor and supplies required by the foregoing; and administrative costs directly attributable thereto.