Excess Operating Expenses Clause Samples

Excess Operating Expenses. 31 9.3 TENANT'S AUDIT RIGHTS.....................................32

Excess Operating Expenses. 10 3.6 Tenant's Prorata Share of Excess Operating Expenses...........10

Excess Operating Expenses. Further Issuance of Interests; Operating Expenses Reimbursement Obligation(s). 26 Section 6.4 Allocation of Expenses. 26 Section 6.5 Overhead of the Managing Member. 27

Excess Operating Expenses. (a) In the event that during a Trigger Period Borrower or Operating Lessee incurs any Operating Expenses in excess of Approved Operating Expenses (excluding any Restricted Payments and any Incentive Management Fees, and excluding amounts permitted to be remitted to Borrower from Cash Collateral Funds pursuant to Section 6.10(b)) (“Excess Operating Expenses”), then Borrower or Operating Lessee shall promptly deliver to Lender, for Lender’s information, upon Lender’s request, a reasonably detailed explanation of such Excess Operating Expenses. During the continuance of any Trigger Period, all Excess Operating Expenses must be approved by Lender in writing (such expenses, if approved, or deemed approved in accordance with Section 4.9.6(b) below, the “Approved Excess Operating Expenses”) prior to the disbursement of any funds therefor, such approval not to be unreasonably withheld, conditioned or delayed provided no Event of Default shall then exist. During the continuance of any Trigger Period, any funds distributed to Borrower for the payment of Approved Excess Operating Expenses pursuant to Section 6.11.1(a)(xi) shall be used by Borrower or Operating Lessee only to pay for such Approved Excess Operating Expenses or to reimburse Borrower or Operating Lessee for such Approved Excess Operating Expenses, as applicable.

Excess Operating Expenses. Tenant shall pay Tenant’s Pro Rata Share of the amount, if any, by which Operating Expenses (defined in Section 4.D) for each Lease Year (hereinafter defined) during the Term exceed Operating Expenses for the Base Year (the “Excess Operating Expenses”). Notwithstanding the foregoing, Tenant’s Pro Rata Share of Controllable Expenses (defined below) shall not increase by more than three percent (3%) over Tenant’s Pro Rata Share of Controllable Expenses in the immediately preceding Lease Year, including the Base Year, on a cumulative, compounded basis. However, any increases in Controllable Expenses not recovered by Landlord due to the foregoing limitation shall be carried forward into succeeding Lease Years during the Term (subject to the foregoing limitation) until fully recouped by Landlord. For example, if Controllable Expenses were $100.00 in the Base Year, then the total Controllable Expenses that could be included in Operating Expenses in the second Lease Year (Lease Months 13 through 24) would be $103.00, for the third Lease Year (Lease Months 25 through 36) the amount would be $106.09, for the fourth Lease Year (Lease Months 37 through 48) the amount would be $109.27, and so on. In the preceding example, if Controllable Expenses in the third and fourth Lease Years were $107.50, then Landlord could include only $106.09 in Operating Expenses in the third Lease Year, but $108.91 (the Controllable Expenses plus the carry-forward from the third Lease Year) in the fourth Lease Year. The term “Controllable Expenses” means all Operating Expenses excluding the cost of utilities (and related expenses which are reasonably intended to reduce such costs), insurance premiums, and other expenses not within Landlord’s control directly arising from increases to minimum wage laws or other similar governmental requirements applicable to or imposed against owners of Comparable Buildings. Landlord will use reasonable efforts to minimize the impact of increases resulting from such governmental requirements. If Operating Expenses in any Lease Year decrease below the amount of Operating Expenses for the Base Year, Tenant’s Pro Rata Share of Operating Expenses for that Lease Year shall be $0. In no event shall Base Rent be reduced if Operating Expenses for any Lease Year are less than Operating Expenses for the Base Year. Within ninety (90) days of the beginning of each Lease Year after the Base Year, Landlord shall provide Tenant with a good faith estimate (itemized by cate...

Excess Operating Expenses. Subtenant shall pay Subtenant’s Pro Rata Share of the amount, if any, by which Operating Expenses (defined in the Master Lease) payable (after giving effect to all caps and limitations set forth in the Master Lease) by Sublandlord under the terms of the Master Lease for each calendar year during the Term exceed Operating Expenses payable (after giving effect to all caps and limitations set forth in the Master Lease) by Sublandlord under the terms of the Master Lease for the Base Year of 2008 (“Excess Operating Expenses”), grossed up, in the case of to reflect a one hundred percent (100%) occupancy level and a full assessment of property taxes, as more particularly set forth in and subject to the terms of the Master Lease. The Master Lease provides for payment by Sublandlord of Operating Expenses on the basis of an estimate; therefore, as and when adjustments between estimated and actual Operating Expenses are made under the Master Lease, the obligations of Sublandlord and Subtenant will be adjusted in the same manner. If this adjustment occurs after the expiration or earlier termination of this Sublease, the obligations of Sublandlord and Subtenant under this subsection will survive such expiration or termination. Sublandlord shall, on reasonable request by Subtenant, furnish Subtenant with copies of all statements submitted by Master Landlord of the actual or estimated Operating Expenses during the Term of this Sublease. Sublandlord may also, in its sole judgment, after reasonable request of Subtenant, elect to audit Master Landlord’s Operating Expenses as set forth in the Master Lease.

Excess Operating Expenses. 8 3.3 Tenant's Prorata Share of Excess Operating Expenses.....................................................8 3.4 Controllable Expenses Cap...............................................................................9

Excess Operating Expenses. (a) Calculation, During the Term, Tenant shall pay Landlord Tenants proportionate share of the amount (prorated for any partial calendar year) by which Operating Expenses for each calendar year exceed Operating Expenses for the Base Year ("Excess Operating Expenses" or "EOE"). Tenant's proportionate share is equal to the RSF of the Premises divided by the RSF of the Building. Operating Expenses are computed o an accrual basis in accordance with sound accounting principles consistently applied. If the Building is less than fully occupied or Building Standard services are not provided to the entire Building during any calendar year (including the Base Year), all Operating Expenses which vary directly with occupancy shall be "grossed-up" by Landlord as if the Building had been fully occupied and Building Standard services had been provided to the entire Building during such calendar year.

Excess Operating Expenses. On or about January 1 of each calendar year, Landlord shall provide Tenant with a good faith estimate of the Excess Operating Expenses for the Building and the Project for the coming calendar year. If Landlord determines that its estimate of the Excess Operating Expenses for the Building and the Project was incorrect, Landlord may provide Tenant with a revised estimate. Thereafter, T▇▇▇▇▇’s monthly payments shall be based upon the revised estimate. If Landlord does not provide such estimate by January 1 of a calendar year, Tenant shall pay monthly installments based on the most recent estimate delivered until Landlord provides Tenant with the new estimate. Tenant’s Pro Rata Share of Operating Expenses for the Building and the Project for any calendar year shall never be less than $0.