Fixed Operating Expenses Clause Samples
The Fixed Operating Expenses clause establishes a predetermined, non-variable amount that a tenant or party is required to pay for operating costs, regardless of actual expenses incurred. Typically, this clause applies in commercial leases, where the landlord sets a fixed annual or monthly fee to cover items such as maintenance, utilities, insurance, and property management. By specifying a set amount, the clause provides predictability for budgeting and shields both parties from fluctuations in actual operating costs, thereby simplifying financial planning and reducing disputes over expense calculations.
Fixed Operating Expenses. In addition to the Base Rent, during each month of the Lease Term, on the same date that Base Rent is due, Tenant shall pay Landlord an amount equal to the Monthly Fixed Operating Expenses provided in Paragraph 1 of the Lease, which Landlord and Tenant agree shall be reimbursement for Landlord’s obligations with respect to the maintenance, repairs, and replacements as provided in Paragraph 11 of the Lease, as well as the insurance premiums incurred by Landlord as provided in Paragraph 10 of the Lease. Effective on each annual anniversary of the Commencement Date during the Lease Term (or, if the first annual anniversary occurs on a date other than the first day of a calendar month, then on the first day of the immediately subsequent calendar month and on each annual anniversary date thereafter), the Monthly Fixed Operating Expenses shall be automatically increased by an amount equal to the Annual Fixed Operating Expense Increase provided in Paragraph 1 over the Monthly Fixed Operating Expenses due and payable under this Lease immediately prior to such increase. Landlord and Tenant agree that except for the increases in the Monthly Fixed Operating Expenses as provided above, the Monthly Fixed Operating Expenses shall not be reconciled against the actual operating expenses incurred by Landlord at any time during the Lease Term. Notwithstanding the foregoing, in the event the Lease Term is extended in any manner, whether via an option to extend or otherwise, Landlord shall have the right to amend the Monthly Fixed Operating Expenses due and payable by Tenant during such extension of the Lease Term, as well as the Annual Fixed Operating Expense Increase, each as determined in Landlord’s reasonable determination based on the actual operating expenses applicable to the Project prior to such increase and Landlord’s projected annual increase of such operating expenses, upon delivery of written notice to Tenant of Landlord’s intent to amend such terms. For the purpose of Landlord’s determination of the Fixed Operating Expenses during any extension of the Lease Term as provided herein only, the actual operating expenses shall mean all costs and expenses incurred by Landlord with respect to the ownership, maintenance, and operation of the Project (excluding Taxes) including, but not limited to costs of: insurance; utilities; maintenance, repair and replacement of all portions of the Building, Premises, and Project, including without limitation, paving and parking are...
Fixed Operating Expenses the definition of Fixed Operating Expenses is deleted in its entirety and replaced with the following:
Fixed Operating Expenses. Managers shall expeditiously cause the completion of all improvements to be funded by the Holdback Accounts.
Fixed Operating Expenses. The Parties agree and recognize that Sublessee shall pay Fixed Operating Expenses (“FOE”) as set forth in the Master Lease: Monthly Operating Expenses: $2,853.131 Capital Repairs/Replacements: $499.24 Total FOE: $3,352.37 The Parties agree and affirm that the FOE shall automatically increase on the first day of each full calendar year anniversary of the Sublease Commencement Date at a rate of 4.30%, per the terms of the Master Lease.
Fixed Operating Expenses. Effective as of January 1, 2002, -------------------------- subsection (a) of the definition of Fixed Operating Expenses is hereby deleted in its entirety. Effective as of the date hereof, subsection (c) of the definition of Fixed Operating Expenses is amended to read in its entirety "the debt service on account of the Deemed Senior Loan". The parties hereby agree that the foregoing amendment is in part intended to and does modify the Guaranty such that as to "Operating Deficits" and the "Emeritus Deficit Contribution", Fixed Operating Expenses shall be calculated in accordance with the terms of the Management Agreement as amended by the First Amendment to Management Agreement in connection with the Senior Loan Restructure.