Operating Leases Clause Samples

Operating Leases. No Credit Party shall, nor shall it permit any of its Subsidiaries to, enter into any lease that constitutes an operating lease under GAAP if the obligations of a Credit Party or such Subsidiary as lessee under such lease would cause its lease payments (excluding payments for taxes, insurance, and other non-rental expenses to the extent not included within the stated amount of the rental payments under such lease) in respect of all such leases entered into by the Borrower and its Subsidiaries to exceed $500,000 during any fiscal year of the Borrower.

Operating Leases. Incur any obligation to pay rent under an operating lease in any Fiscal Year if to do so would result in the aggregate obligation of Borrower and its Subsidiaries to pay rent under all operating leases in that Fiscal Year to exceed $4,000,000.

Operating Leases. Not permit the aggregate amount of all rental payments under Operating Leases made (or scheduled to be made) by the Loan Parties (on a consolidated basis) to exceed $1,000,000 in any Fiscal Year.

Operating Leases. Not permit the aggregate amount of all rental payments under Operating Leases made (or scheduled to be made) by the Loan Parties and their Subsidiaries (on a consolidated basis) to exceed, during the entire term of all such Operating Leases, the aggregate amount of $1,000,000.

Operating Leases. No Loan Party nor any Subsidiary of a Loan Party shall create, assume or suffer to exist any operating lease except operating leases which: (A) (1) are entered into in the ordinary course of business, and (2) the aggregate indebtedness, liabilities and obligations of the Loan Parties under all such operating leases during any period of four (4) consecutive Fiscal Quarters shall at no time exceed $500,000; (B) are between a Borrower or Guarantor, as landlord and a Borrower or Guarantor as tenant; or (C) are set forth on Schedule 5.37. SECTION 5.38. [Intentionally omitted].

Operating Leases. Borrower will not, and will not permit any of its Subsidiaries to, make any expenditures in respect of operating leases, except for: (a) real estate operating leases; (b) operating leases between Borrower and any of its wholly-owned Subsidiaries or between any of Borrower’s wholly-owned Subsidiaries; and (c) operating leases that would not cause Borrower and its Subsidiaries, on a consolidated basis, to make payments exceeding $250,000 (or the Equivalent Amount in other currencies) in any fiscal year.

Operating Leases. Under this type of lease, the equipment remains the property of the lessor (the person who leases the equipment). The costs of operating leases can be claimed if it can be shown that the costs of the lease are competitive and are similar to the rates charged in the market place. However, if a leasing charge for equipment (in any one year) goes over, or closely matches, the full cost of buying the item it would be seen as an attempt to introduce capital expenditure as an eligible item under a different heading, and capital expenditure (over £1,000) is not eligible.

Operating Leases. During the Negotiation Period, Purchaser and Sellers shall, using good faith and diligent efforts, mutually agree upon all of the terms and conditions of the Lease Agreement, Sublease Agreement and Sub-Sublease Agreement, as applicable, for each Site which shall be entered into at Closing between Purchaser, as “Landlord”, and the Tenant, as “Tenant”, the form of which shall, prior to the expiration of the Negotiation Period, be attached hereto as Exhibit B-1, Exhibit B-2 and Exhibit B-3, respectively. Sellers and Purchaser hereby agree that each of the Operating Leases shall include those material terms as expressly set forth herein relating to Leases or Tenants’ rights and obligations under the Leases, and to the extent not conflicting with any of such express Lease provisions set forth herein, as set forth in Schedule 4.7 hereto (collectively the “Material Lease Terms”), which Material Lease Terms may be amended as reasonably necessary and as reasonably approved by Sellers to address any material defects or discrepancies shown by additional information discovered in the course of Purchaser’s Inspections hereunder, and which shall include, without limitation the following: (i) subject to Sellers’ obligations pursuant to Section 3.5 hereof, an initial term of twenty (20) years, with options to extend the term for four (4) additional periods of five (5) years each, subject to all of the then applicable terms and conditions of such Operating Lease; provided, however, the term of any Operating Lease shall not exceed the remaining term (including any renewal term(s)) of any underlying material lease or permit pertaining to the applicable Site; (ii) upon Landlord or Tenant obtaining, in the Parties’ mutual reasonable discretion, any extension of, or option to extend, the term (including the primary term as well as any renewal or extended term) of the underlying material lease or permit pertaining to the applicable Site, upon the election of Tenant, and provided Tenant shall not be in default under the applicable Operating Lease, the term (i.e. the primary term or any renewal thereof, as applicable) of the Operating Lease shall be extended to correspond with such extension or, as applicable, the Tenant shall be provided with a correlative option to extend the term (i.e. the primary term or any renewal thereof, as applicable) of such Operating Lease for the same period of time as the option relating to the material lease or permit; (iii) upon Tenant’s election to...

Operating Leases. Borrower will not, nor will Borrower permit any other Credit Party to, incur, become, or remain liable under any Operating Lease which would cause the aggregate amount of all Rentals payable by any Credit Party in any Fiscal Year to be greater than $20,000,000.