Operating Expense Clause Samples

Operating Expense. TENANT shall pay to LANDLORD as “

Operating Expense. Parent and its Subsidiaries shall not permit the Operating Expenses, calculated on a trailing four-quarter basis as of the last day of the most recent fiscal quarter of Parent for which financial statements were required to have been furnished to Lender pursuant to Section 7.02(b), to exceed the amounts set forth in the Closing Date Budget by more than [***] (the “Operating Expense Cap”); provided, that the Operating Expense Cap for any calculation period may be increased (without duplication of any increase to the NAC Cap pursuant to clause (b) above) by an amount (calculated on a percentage basis) equal to the percentage amount by which Gross Revenue exceeds the projected gross revenue of Parent and its Subsidiaries as set forth in the Closing Date Budget; provided, further, that Parent and its Subsidiaries shall not incur any Operating Expenses of the type which are not consistent with those specified in the consolidated statements of income of Parent and its Subsidiaries delivered to Lender prior to the Closing Date; and

Operating Expense. Pursuant to Article 5 of the Eighth Amendment to the Master Lease, Sublandlord is subject to a Base Year of 2002. Should Lessor exceed their Base Year amount and therefore charge a monthly operating expense, Subtenant shall pay to the Sublandlord during the term of the Sublease in addition to the monthly Base Rent, Subtenant’s share of operating expenses during the term of this Sublease. Subtenant’s prorata share of the Premises is determined to be 2.973%. “Operating Expenses” is defined, for purposes of this Sublease, to include all costs, if any incurred by Landlord in the exercise of the Landlord’s reasonable discretion, for the operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Premises.

Operating Expense. The LESSEE will pay for all water, gas, heat, light, power, telephone service, and other public utilities furnished to the Leased Space and used by the LESSEE throughout the Initial Term or Renewal Term hereof, and all other costs and expenses of every kind whatsoever in connection with the use, operation, and maintenance of the Leased Space and all activities conducted thereon.

Operating Expense. If Landlord's Operating Expense for any Operating Year shall be greater than the Operating Expense Allowance, Tenant shall pay to Landlord as Additional Rent an amount equal to Tenant's Proportionate Share (as defined below) of the difference (the amount of Tenant's Proportionate Share of such difference is hereinafter referred to as the "Operating Expense Adjustment"). If Tenant occupies the Leased Premises or portion thereof for less than full Operating Year, the Operating Expense Adjustment will be allocated proportionally to the amount of time in such Operating Year that Tenant so occupies such space. Such additional Rent shall be paid in the following manner: within one hundred twenty (120) days following the end of each Operating Year, Landlord shall furnish Tenant an Operating Expense Statement setting forth (i) the Operating Expense for the preceding Operating Year, (ii) the Operating Expense Allowance and (iii) the Tenant's Operating Expense Adjustment for such Operating Year. Within fifteen (15) days following the receipt of such Operating Expense Statement (the "Expense Adjustment Date") Tenant shall pay to Landlord as Additional Rent the Operating Expense Adjustment for such Operating Year. Commencing with the first month of the Lease Term, Tenant shall pay to Landlord, on account of the Operating Expense Adjustment for such Operating Year, monthly installments in advance equal to one-twelfth (1/12th) o the estimated Operating Expense Adjustment for such Operating Year. ON the next succeeding Expense Adjustment Date, Tenant shall pay to Landlord (or Landlord shall credit to Tenant) any deficiency (or excess) between the installments paid on account of the preceding year's Operating Expense Adjustment and the actual Operating Expense Adjustment for such Operating Year. As used in this Section 6 and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:

Operating Expense. All Taxes which are levied or assessed or which become a lien upon any portion of the Project or which become due or accrue during the Lease Term shall be an Operating Expense, and Tenant shall pay as Additional Rent each month during the Lease Term 1/12th of its annual share of such Taxes, based on Landlord’s estimate thereof, pursuant to Paragraph 12 below. Tenant’s share of Taxes during any partial tax fiscal year(s) within the Lease Term shall be prorated according to the ratio which the number of days during the Lease Term or of actual occupancy of the Premises by Tenant, whichever is greater, during such year bears to 365.

Operating Expense. (a) Tenant shall pay as Additional Rental its proportionate share of any increase in operating expenses for the Premises of which the Subleased Premises are a part which may be sustained by Sublessor during the term of this lease which exceed the sum of the operating expenses of the calendar year 1995 (base year). Sublessee's proportionate share of any increase shall be that percentage determined by dividing the rentable number of square feet hereby subleased by Sublessee (21,996 square feet) by the total number of rentable square feet in the Premises (151,800 square feet), which percentage is 14.49%. Notwithstanding the foregoing, for any period of this Sublease not constituting a full calendar year, Sublessee shall pay only a fractional part of its proportionate share of any applicable increase in the operating expenses based upon the number of days of its occupancy of the Sublease Premises for such year divided by 365. (b) The term "operating expenses" shall mean all expenses, costs and disbursements of every kind and nature (including but not limited to "Capital Costs" as hereinafter defined and to the extent stated herein and reasonable management fees, which fees shall be included in base year 1995), excluding however, taxes, expense of alternations of premises for the accommodation of a specific tenant, brokers fees, and expenditures made for capital investment or improvements, which the Sublessor shall pay or become obligated to pay in connection with the operation of the Common Areas (as hereinafter defined) and the Premises which, in accordance with generally accepted principles of sound accounting practice, apply to the operation and maintenance of comparable buildings.

Operating Expense. Except as otherwise specifically provided herein, Lessee shall bear at its own expense all costs of operating and maintaining the Rental Car Concession. Lessee shall promptly pay all expenses incurred in the operation of its Rental Car Concession.

Operating Expense. Tenant shall pay to Landlord, as additional rent, Tenant’s Proportionate Share of Operating Expense as defined below. The parties agree for the purpose of this Lease that Tenant’s Proportionate Share stated above has been calculated to represent the Premises’ pro rata share of Operating Expense for the Building and the Common Areas exclusively serving the Building. Operating Expense shall also include the Building’s pro rata share of any and all Operating Expense incurred with respect to (i) any Common Areas serving the Building and other buildings within the Project and (ii) the Chandler Airport Center Owners Association. The allocation of Operating Expense between the Building and any other buildings within the Project shall be determined by the Landlord, consistent with any recorded easements or other agreements governing such Operating Expense. The Tenant’s Proportionate Share stated above and any such allocation of Operating Expense between buildings within the Project shall be as reasonably determined by Landlord from time to time. Estimated amounts of such Operating Expense shall be paid in monthly installments in advance on or before the first day of each month during the Term. The initial estimated payment of Tenant’s Proportionate Share of Operating Expense is set forth in Section 1.9. From time to time during the Term, Landlord may notify Tenant in writing of any adjustment to the monthly installments to be paid by Tenant hereunder and, thereafter, Tenant shall make payments accordingly. Within ninety (90) days after the expiration of each calendar year or as soon thereafter as is reasonably practicable, Landlord shall notify Tenant of the actual Operating Expense for such calendar year and provide Tenant a statement thereof in reasonable detail. Within thirty (30) days after such notice, Tenant shall pay to Landlord or Landlord shall credit against the obligations of Tenant, as the case may be, the difference between the estimated payments made by Tenant during the prior calendar year and the actual amount of Tenant’s Proportionate Share of Operating Expense as shown on such statement. Tenant’s Proportionate Share of Operating Expense for the years in which the Term commences and ends shall be prorated based upon the number of days of the Term during such years. Tenant’s obligation to pay Tenant’s Proportionate Share of Operating Expense through the Termination Date shall survive termination.