Operating Costs Excess Sample Clauses
The Operating Costs Excess clause defines a threshold amount that must be exceeded before certain operating costs are recoverable or claimable under an agreement, such as a lease or service contract. In practice, this means that the party responsible for paying operating costs (often a tenant) will only be liable for costs that exceed the specified excess amount, with the initial portion of costs being absorbed by the other party (often the landlord). This clause serves to limit the financial exposure of the paying party to only unusually high or unexpected operating expenses, thereby allocating risk and providing predictability in budgeting for both parties.
Operating Costs Excess. If the Operating Costs in any Operating Year exceed the Operating Costs in the Base Year, Tenant shall pay to Landlord Tenant’s Proportionate Share of such excess, such amount being hereinafter referred to as “Operating Costs Excess.” Tenant shall pay the Operating Costs Excess as follows: commencing January 1, 2017, Tenant shall make monthly estimated payments on account of the projected Operating Costs Excess, as reasonably estimated by Landlord on the basis of the most recent Operating Costs data or budget available. Such monthly estimated payments shall be made commencing on the aforesaid date and otherwise at the same time and in the same manner as Tenant’s monthly payments of Yearly Rent. Landlord shall furnish to Tenant, within one hundred fifty (150) days after the end of each year, a statement setting forth in reasonable detail the basis for the computation of Operating Costs Excess for each year, and shall provide Tenant with reasonable supporting information upon written request therefor given sixty (60) days within two hundred seventy (270) days of Tenant’s receipt of such statement. If the total of T▇▇▇▇▇’s monthly estimated payments with respect to any Operating Year is greater than the actual Operating Costs Excess for such Operating Year, Tenant may credit the difference against the next installment of rental or other charges due to Landlord hereunder. If the total of such payments is less than the actual Operating Costs Excess for such Operating Year, Tenant shall pay the difference to Landlord when billed therefor.
Operating Costs Excess. (a) If the Operating Costs in any Operating Year exceed the Operating Costs in the Base Year, Tenant shall pay to Landlord Tenant’s Proportionate Share of such excess, such amount being hereinafter referred to as “Operating Costs Excess.” Operating Costs Excess shall be due within thirty (30) days after billed to Tenant by Landlord. In implementation and not in limitation of the foregoing, Tenant shall remit to Landlord pro rata monthly installments on account of projected Operating Costs Excess, calculated by Landlord on the basis of the most recent Operating Costs data or budget available. Landlord will furnish to Tenant, after the end of each year, a statement setting forth in reasonable detail the basis for the computation of Operating Costs Excess for each year. Upon request by Tenant, Landlord’s representatives will meet with Tenant’s representatives in good faith to provide further detail for the basis for the computation of Operating Costs Excess for each year. If the total of such monthly remittances on account of any Operating Year is greater than the actual Operating Costs Excess for such Operating Year, Tenant may credit the difference against the next installment of rent or other charges due to Landlord hereunder. If the total of such remittances is less than actual Operating Costs Excess for such Operating Year, Tenant shall pay the difference to Landlord when billed therefor. Notwithstanding anything to the contrary in this Lease contained, Landlord only has the right to charge Tenant for Operating Costs Excess for any given calendar year up to three (3) years after the expiration of such calendar year, and Tenant shall have no liability for Operating Costs not billed within such three (3) year period.
(b) Notwithstanding anything to the contrary herein contained, for purposes of computing Operating Costs, the amount of Controllable Operating Costs (hereinafter defined) included in Operating Costs for any Operating Year shall not exceed the Controllable Operating Costs Cap, as hereinafter defined, for such Operating Year.