Common use of Operating Fee Clause in Contracts

Operating Fee. (a) From the Effective Date until this Agreement is terminated, Operator shall receive a fee (the "Operating Fee") of $750,000 per annum, as adjusted in accordance with this Section 5.02. The Operating Fee shall be paid in monthly installments and shall be due on the first Business Day of each month for the preceding month. The Operating Fee for any partial month shall be pro rated to cover the actual portion of such month that this Agreement was in effect. (b) As of January 1 of each year, commencing January 1, 1999, the Operating Fee shall be adjusted upwards or downwards by multiplying the Operating Fee for the prior year by a fraction the numerator of which will be the Index for the immediately preceding December and the denominator of which will be the Index for the month of December one year earlier; provided, that in no event shall the Operating Fee be decreased below $750,000. This adjusted Operating Fee shall be the Operating Fee for the current Operating Year and the basis for calculation of the Operating Fee for the next Operating Year.