Base Operation Fee Sample Clauses

Base Operation Fee. During the Term, subject to abatement as expressly provided in this Agreement, Live Nation shall pay to City an annual base operation fee of Three Million Five Hundred Thousand Dollars ($3,500,000) per year, increasing annually by three percent (3%) (the “Base Operation Fee”). The first annual Base Operation Fee shall be due and payable on the Commencement Date, and shall be prorated if the Commencement Date is any date other than January 1. Each subsequent annual Base Operation Fee payment shall be due on January 1st. Live Nation shall receive a credit towards the first Base Operation Fee, in the amount of the Live Nation Design Costs, provided that such credit shall not exceed an aggregate of Two Million Dollars ($2,000,000); if the first Base Operation Fee for the first year is less than the lesser of the Live Nation Design Costs and $2,000,000 due to a partial year as provided above, the remainder of the Live Nation Design Costs shall be credited against the next Base Operation Fee due hereunder (but in no event shall aggregate of the credits in the two years exceed the lesser of the Live Nation Design Costs and $2,000,000).