Annual Cafeteria Cost Cap definition
Annual Cafeteria Cost Cap means, as of the date hereof, an amount equal to Seventy-Five Thousand Dollars ($75,000), which amount shall be increased by two percent (2%) on each anniversary of the Fifth Amendment Effective Date. In addition, for purposes of this Section 11 only, a “year” shall be deemed to be each one-year period commencing on the Fifth Amendment Effective Date or on any anniversary thereof occurring during the Term. If the Term terminates or expires on any day other than the last day of any such year, then the obligations of Landlord and Tenant hereunder shall be appropriately prorated on a daily basis.
Examples of Annual Cafeteria Cost Cap in a sentence
Landlord and Tenant agree that amounts paid by Landlord to the cafeteria service provider in a given year (the “Cafeteria Costs”), up to the Annual Cafeteria Cost Cap (hereinafter defined), shall be borne by Landlord and shall not be included in Operating Expenses.
If the Cafeteria Costs for a given year exceed the Annual Cafeteria Cost Cap, then Tenant shall pay the amount of such excess, not to exceed an amount equal to Twenty Thousand Dollars ($20,000) for such year, upon demand as additional Rent, and Landlord shall bear (and shall not include in Operating Expenses) all Cafeteria Costs incurred in such year in excess of such $20,000 cap.